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Corporate Strategy and Governance - H&M

University: Bucks New University

  • Unit No: 5
  • Level: High school
  • Pages: 5 / Words 1275
  • Paper Type: Assignment
  • Course Code: BM628
  • Downloads: 357
Question :

This assessment will cover the following questions:

  1. H&M is a clothing brand of the United Kingdom. Identify the industry life cycle used to strategies the goal of the H&M organisation.
  2. How corporate governance failure affects the future occurrence of the H&M.
  3. Analyse the challenges and issues faced by the organisation in dealing with the corporate governance and strategy.
Answer :
Organization Selected : H&M


In business management, concept of corporate governance is considered as a process to develop strategic plan for conducting operations. It includes systems and procedures which are designed to structure the organisational authority and responsibilities (Du,and et. al., 2013). It also provides accountability to employees, customers and all stakeholders at entire levels. H&M is a second largest company of UK in retail sector. This company operates its business in more than 62 countries. Currently, near about 148,000 employees are working in this organisation. It offers a wide range of trendy clothes and accessories on competitive rates. For this firm, corporate governance and strategy is about balancing performance of business with sustainability. 


Corporate Strategy and governance refers as the hierarchical strategical plan of a business. It provides information about corporate goals and objectives with various ways to accomplish them. But it creates various difficulties in achievement of the same due to rigorous code of corporate governance, which a company have to implement at domestic and international level. This would necessary for developing draft as per guidelines. In context with H&M, currently it wants to expand its business in other countries (Benn, Edwards and Williams, 2014). The Board of Directors of this company manages all affairs and issues on the behalf of its shareholders. They set a certain Code of Ethics which includes continuous improvement, common sense, cost consciousness and more (Chang, 2016). It provides a certain guidelines to managers and provides which also gives a basis for ethical and strong values of H&M. In this regard, some major issues and problems related to corporate strategy is explained as below:

Putting pressure on employees:  In order to achieve set targets and goals, company sometimes put pressure on employees and managers. Therefore, it creates issues and barriers in implementation of corporate strategy and governance. For example: Modifications in organisational system and existing technologies, create difficulties for employees in giving their best performance for achievement of objectives. In context with H&M, any change create problems like employee resistivity because workers will refuse to work on new technologies. But pressurise them to adopt changes and work according, leads to decrease their morale and level of performance as well.

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Governance Standards: H&M has given authority to its Board of Directors to set specific rule and policies as per business objectives. These corporate strategies are amendable for employees to be followed while working within its organisation. But if they do not propagate with such standards than it creates various problems like legal penalties for this company. Therefore, it creates barriers in front of this company for further expansion of business.


Research Design: It includes a combination of various methods by which researchers can gather relevant data for a specific project (Barnett and Salomon, 2012). Using such methods, they can identify solutions of research questions that describe in their project in proper manner.

Data collection: It refers to a process of gathering a specific data about a particular topic for proper investigation. Under this procedure, project makers can use two kinds of source of data collection viz. primary and secondary source. Process of these methods are described as beneath:

  • Primary method: Under this data, researchers are required to collect data directly by itself through conducting an appropriate survey. Under this procedure, they can use various techniques like questionnaire, observations, online/offline interviews and so on. Through these techniques, they can get original and reliable data which further helps in finding out solutions of research problems as per desired manner.
  • Secondary method: In this kind of data collection, relevant information related to a specific topic is gathered by reading reviews and opinion of some professionals or writers. Therefore, it provides information as per prospectus of other investigators who have published their data on various sources (De Grosbois, 2012). It includes journals, books, articles, newspapers and more. Therefore, if talking about relevancy, as compared to primary one, secondary method proves inefficient.

Time Scale:

Time Scale

Time Scale HM

Research Objectives

  • To identify the effectiveness of Corporate strategy and Governance for H&M in business expansion.
  • To evaluate the concept of crisis action plan for natural disasters.
  • To ascertain industry life cycle of H&M on corporate strategy.
  • To determine the issues related to failure of corporate governance, with suggestion to resolve such problems.

Research Question

  • How to identify the effectiveness of Corporate strategy and Governance for H&M in business expansion?
  • What are ways to evaluate concept of crisis action plan for natural disasters?
  • How to ascertain industry life cycle of H&M on corporate strategy?
  • How to determine the issues related to failure of corporate governance, with suggestion to resolve such problems ?


Data access and equipment: In the present research, investigation is done to resolve to identify best solutions of problems that are related to implementation of corporate strategy and governance (Aebi, Sabato and Schmid, 2012). For this process, main focus is given on conducting literature review where opinion of different professionals have evaluated.

You Can Also Check : Corporate Governance and Strategy in Tesco

Time: For conducting the entire research as per desired manner, near about 4 to 5 months have been taken by research team of Amazon. In this process, they have used proper techniques to complete each activity in predetermined period so that optimum utilisation of time and resource can be obtained.


It has been summarised from this mentioned research that corporate strategy governance plays an important role in running business successfully. In order to make corporate governance structure, a company must focus on benefits of internal (employees, Board of Directors, etc.) and external stakeholders (suppliers, customers, vendors and more). As stakeholders place a high value on abilities of business to offer good quality of products at marketplace.

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Aebi, V., Sabato, G. and Schmid, M., 2012. Risk management, corporate governance, and bank performance in the financial crisis. Journal of Banking & Finance. 36(12). pp.3213-3226.

Barnett, M. L. and Salomon, R. M., 2012. Does it pay to be really good? Addressing the shape of the relationship between social and financial performance. Strategic Management Journal. 33(11). pp.1304-1320.

Benn, S., Edwards, M. and Williams, T., 2014. Organizational change for corporate sustainability. Routledge.

Chang, J. F., 2016. Business process management systems: strategy and implementation. Auerbach Publications.

De Grosbois, D., 2012. Corporate social responsibility reporting by the global hotel industry: Commitment, initiatives and performance. International Journal of Hospitality Management. 31(3). pp.896-905.

Du, S. and et. al., 2013. The roles of leadership styles in corporate social responsibility. Journal of business ethics. 114(1). pp.155-169.

Also look out:- Corporate Governance and Strategy in Tesco
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