Global Business Environmental H&M
As a result of globalization, the lives of people have been intertwined with people all over the world through the clothes we put on, the foods we eat and the music we listen to. Ideally, globalization has resulted to the ease in rich of information from an individual to individual, state to state, and corporation to corporation among others. McKinsey 7s model H & M has recorded an exemplary performance in the fashion industry in the bid to extensively penetrate the global market. According to Hanafizadeh & Ravasan, (2011), H & M first recorded a success when it first situated its store with a well-laid strategy together with the corporate culture. H & M has however expanded its business concerning the globalization. Moreover, the strategy management team must be mindful of the effect of globalization in coming up with the strategy.
For instance, for a business to penetrate a new territory, it is ideal the company sets a new organizational structure that is conversant with the culture and the market of the given region that the business seeks to acquire. This may mean that the organization must embark on the training of the staffs to make them aware of the parent goal of the organization. Structure; structure refers to the manner in which business divisions and units are grouped and incorporates the information of delegation of duties within the organization. Globalization has an immense effect in the structure of the business; globalization comes with a wave of new technologies and different sets of cultures within any place of work. Style; various businesses have different methods of management.
Globalization has effects on the styles of management of both small and large businesses. Globalization means that the business is expanded to trade in a different level and to penetrate different markets as well. Therefore, such business must learn various management styles depending on the regions the businesses are situated. Hofstede’s Culture and influence on H&M Hofstede’s theory of cultural dimension incorporates the framework that integrates the cross-cultural communication as devised by Geert Hofstede. It is concerned with the fact that followers of the same manner endorse the difference of the society as leaders. Individualism; this refers to the level of independent the society holds among the members. It ascertains if people's self-image is defined as "I" or "we.
" In this regards, individuals have the responsibility of taking care of themselves and their families alone. In the opposite, collectivism refers to the extent where the society is referred to as a group and capable of taking care of themselves. Uncertainty avoidance This refers to the level at which members of society are able to cope with the future without any threat or stress. When the level of uncertainty avoidance is weak, features such as tolerance towards different opinion and behavior, undertaking risk and flexibility are common while strong uncertainty avoidance is evidence when there is risk avoidance tendency, a stronger urge for consensus as well as the respect for the authority. Hofstede highlights that through this theory, the high scoring nations such as France stands chances of engaging in more risky behavior in a precious way so that they can avoid failure in the future.
The concept is important in expanding a business because it helps to know the kind of risk that an area is likely to take. Pragmatic and Normative This dimension refers to as the long-term orientation. The top management and the colleagues of H&M conduct training that is in-depth on issues relating to human rights, and the responsibilities of every individual in the organization. The members of the organization are made to understand different frameworks of ethical decision making. For instance, the utilitarianism approach; the utilitarianism approach says that the most ethical action in any situation is the one that is supposed to provide the greatest amount of good for the largest number of individuals. If the circumstances may seem to be so dire, the approach stipulates that the most ethical action in such a situation is an action that provides the least amount of harm.
In the case of H&M, it is expected that for the company to be making ethical decisions, they are supposed to look at the greatest amount of good to the largest number of people of least amount of harm depending on the different actions that they may take in the conduct of business. Conclusion In conclusion, globalization has been seen to influence H&M significantly in a great way. This is because it has influenced the company from the structure, culture, and the strategies of conduct of business. This is evident from the reputation that the company has from the different consumers and workers of the company. The company has also been seen to have high profits that have resulted from the decision making strategies of the company.
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