H&M’s value chain:
The value chain, made by Michael Porter, is really important to see how a company structure is created. The value chain is constituted by two parts: support activities (firm infrastructure, human resource management, technology development, procurement) and primary activities (inbound logistic, operations, outbound logistic, marketing and sales, service). (Johnson et al. 2011, p.97-99) Support activities:
* Firm infrastructure: H&M is present in 44 markets in the world, holds more than 2,500 stores and employs over 94,000 people. Its head office is located in Stockholm, Sweden where there also are the main departments for finance, buying and design, advertising, accounts, communications, logistics, security, IR, HR, expansion, interior design and display, IT and CSR, expansion and environment. Furthermore, H&M has multiplied its offices in 25 countries which are each responsible for a various departments in every country. H&M works with approximately 700 independent suppliers and all the contracts are managed by 16 productions offices.(H&M, 2012) * Human resource management: HRM are really important for a company because of the fact that its results are directly impacted by the satisfaction of the employees. In order to satisfy its employees, H&M has adopted many rules (H&M,2012): * H&M’s code of conduct: All the suppliers had to sign a contract which guarantees well-working condition and a right salary to their employees and protects children from illegal working * Win-win model: Whenever H&M enters in a new market, it employs local workers. However, H&M offers to its employees opportunities to change working place (cities or countries) but still stay in the company. Thus, employees could have the opportunities to improve their qualifications staying in the same company, and, at the same time, H&M can keep experienced and trustful workers. Thanks to that, H&M is named as...
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