H&M - created from Mind Map

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Unit 4: Entrepreneurship and Business Ethics

Unit 1: Business Fundamentals

Unit 3: Finance

Unit 2: Functions of Business

International Business Structures

Supply

Needs

Types of Businesses

Types of Resources

Wants

Demand

International Business

Joint Ventures

Strategic Alliances

International Franchises

H&M is also using joint venture as the entry mode of strategy in their future expansion.

H&M has formed a strategic alliance with Solidaridad, an international organization dedicated to creating responsible agricultural supply chains, to achieve more sustainable textile production.

H&M and its associated companies operate in 62 countries with over 4,500 stores.

In spring 2017 H&M online stores were opened in further six new markets: Turkey, Taiwan, Hong Kong, Macau, Singapore, and Malaysia, all of which have had a good start.

H&M supplies items in rooms, clothes, accessories in all genders, and fashion magazines.

People need physiological needs such as clothes and shoes. Those are basic warmth needs of human.

Corporations

H&M is a public corporation raises money by making shares available to thousands of people through selling shares on the stock exchange.

Capital Resources

Hunan Resources

Natural Resources

Interdependence

Capital resources are the man-made tools, machines, or locations used in the manufacturing of goods. Capital resources help improve productivity.

Human Resources who work to create the goods and services builds the success of H&M by developing and encouraging employees to reach their full potential.

Within the fashion industry, there is a heavy dependence on natural resources.

H&M buys goods and services of many other businesses to produce a final good to demonstrate their interdependence.

People pursue fashion, so they want hats, sunglasses, bracelets, or necklaces...

Customers demand fashion and quality clothing at the best price.

Pros

Cons

Earning valuable foreign currency

Division of labor

A country is able to earn valuable foreign currency by exporting its goods to other countries.

International business leads to specialization in the production of goods.

Cultural risk

Different cultures might lead to damaging and costly mistakes.

Factors of Production

Productivity

Capital

Labour

Land

All man-made objects and skills needed to produce clothing.

Paper, pencils, computers, etc. used to aid in design.

Sewing machines used to create garments.

Knowledge of how to use sewing equipment and education needed for designers.

All paid labor involved in the production of clothing.

Designers whose ideas inspire the styles that are seen

Seamstresses to sew and tailor clothing according to designs

Laborers to convert raw materials into fabric

All natural resources needed to produce the clothing.

Cotton

Silk

Linen

Training

Capital Investment

H&M provides inspiring and valuable internal training for every position.

A new computer, a new machine, a new office building