Lillebaelt Academy of Professional Higher Education MM 226 Organisation Communication Semester I‚ October 2012 SEMESTER PROJECT – H&M Stoian Ioan Stefan Soc. Reg. Nr. 300693-3397 Keystrokes: 21.663 Teachers: Casper Christensen Mary.M.I Sønderlund 1 Table of Contents Executive summary ........................................................................................ 3 1.0 Introduction .....................................................................................
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H&M is currently structured as a matrix organisation this is due to their widespread departments all over the world. A matrix organisation is horizontally laid out and product-based. The standard way of managing a matrix-organised company is to have their employees report to more than one manager at a time. It is common to different managers to come together in order to accomplish a common goal and avoid duplications of for example products‚ marketing and human recourse etc. Thanks to this the
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Case Memo: Zara Fast Fashion 1. With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results? Why? What do comparisons indicate about Inditex’s relative operating economics? Indeed comparing the financial performance of Inditex with the key competitors‚ Inditex was the most profitable company in terms of ROIC. In terms of revenues‚ income and size‚ H&M shows that it is the most interesting to compare. Inditex has a store number
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Problem 4: H&M and Burberry’s non-current assets Question 1 (a) Ratio of land‚ buildings and equipment to sales H&M: (420+222+7134) / 78346 = 9.9% Burberry: (58.2+99.2) / 995.4 = 15.8% (b) Ratio of depreciation to sales H&M: (14+1750) / 78346 = 2.25% Burberry: (1.9+27)/ 995.4 = 2.9% The above ratios can be used to measure the efficiency of a firm’s investment policy. Burberry has a higher land‚ buildings and equipment to sales ratio as well as a higher depreciation to sales ratio.
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Three main strategic goals for H&M for the next five years would be linked with profitability‚ competition and technological leadership. H&M has reported a rise in sales and profits and sales for the three months to 31st of August. Net profit for the third quarter of 2009 rose 4.1% to 3.46bn Swedish crowns from 3.33bn crowns last year. Sales‚ excluding sales tax‚ increased by 13% to 23.6bn crowns. So first LTO is to maintain financial stability H&M has achieved. H&M plans to increase sales revenues
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Tangibles (Physical appearance) At the first glance‚ H&M has a simple and clear design. (Appendix A) In the shop‚ different products are classified into different categories and there are clear directional signs which are easy for customers to find out what they need. (Appendix B) Also‚ the price tags are explicit and detailed for customers to understand. (Appendix C) Besides‚ the fitting rooms are located next to the cashiers which bring convenience to customers allowing them to pay right away
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effective production of the service(Stokes&Lomax‚ 2008). The process in H&M is from trend predetermination to selling in stores. In brief‚ designers carry out their work based on the forecasted data. Secondary‚ suppliers manufacture the clothes. Finally‚ the clothes could be sent to stores all around the world and customers buy the products. This process could be compleated within 20 days at the soonest. But the leadtime of H&M is usually 21 days. The information of selling of all stores will be gathered
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Zara’s Fast Fashion ANP LIM College – MBA Program Absrtact This paper was written for the purpose of researching and illustrating fast fashion strategies which include strategic integrated supply chain‚ manufacturing and sourcing methods. Fast fashion is explained as a system that involves more control over operations and customer “strategic behavior” by using the combined benefits of both the “quick response production capabilities” or “short production and distribution lead times”‚
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market. Along with the globalization and technology development‚ consumers are easier to access to fashion. As a result‚ the customers are changing and the companies are evolving to deliver customers satisfaction. Zara‚ the most profitable brand of Spain clothing retail group Inditex‚ has leveraged its unique strategy to achieve success and will be expected to maintain a sustainable growth in the fashion industry. Zara’s core competencies can be divided into four areas: process development‚ distribution
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ZARA: Fast Fashion The Spanish retail chain Zara has unique supply chain management practices that enable it to gain a competitive advantage over other fashion retailers in the industry. Zara’s rapid response time enables the firm to quickly respond to changing fashions while deliberately under producing products. This strategy‚ which is supported by competencies in logistic management‚ design and information systems‚ allows the company to maintain less inventory and higher profit margins and is
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