Business Policy and Strategy

Mangalus, Heidee M.
IA 304

Significance of Strategies in the Implementation of Company Policies

A Policy is a predetermined course of action, which is established to provide a guide

toward accepted business strategies and objectives. In other words, it is a direct link between an
organizations Vision and their day-to-day operations. Policies identify the key activities and
provide a general strategy to decision-makers on how to handle issues as they arise. This is
accomplished by providing the reader with limits and a choice of alternatives that can be used to
guide their decision making process as they attempt to overcome problems. I like to think of
policies as a globe where national boundaries, oceans, mountain ranges and other major
features are easily identified. With that concept in mind lets take about procedures.

The ultimate goal of every Procedure is to provide the reader with a clear and easily
understood plan of action required to carry out or implement a policy. A well-written procedure
will also help eliminate common misunderstandings by identifying job responsibilities and
establishing boundaries for the jobholders. Good procedures actually allow managers to control
events in advance and prevent the organization (and employees) from making costly mistakes.
You can think of a procedure as a road map where the trip details are highlighted in order to
prevent a person from getting lost or wandering off an acceptable path identified by the
companys management team.

Business Policy and Strategy

Strategic management is vitally important even on the small scale within a business.
However, strategic management is difficult to accomplish without a clearly defined set of goals
for the business' operation. Knowing what your core competencies are is good from the
standpoint of understanding your strengths in the marketplace, but this also helps you to identify
areas for improvement and set goals and objectives based on those weaknesses. If you know, for
instance, that your business is lagging behind in utilizing the power of the Internet to sell its
products, one of your goals can be to introduce an online trading platform within the next six
months. Importantly, the goals your business sets should be measurable, specific and have a time
frame attached to them. Setting goals in this way helps you to strategically position your business
for future success.
A well-formulated strategy can bring various benefits to the organization in present as
well as in future. Strategic management takes into account the future and anticipates for it. A
strategy is made on rational and logical manner, thus its efficiency and its success are ensured.
Strategic management reduces frustration because it has been planned in such a way that it
follows a procedure. It brings growth in the organization because it seeks opportunities. Strategic
management also adds to the reputation of the organization because of consistency that results
from organizations success. Often companies draw to a close because of lack of proper strategy
to run it. With strategic management companies can foresee the events in future and thats why
they can remain stable in the market. Strategic management looks at the threats present in the
external environment and thus companies can either work to get rid of them or else neutralizes
the threats in such a way that they become an opportunity for their success. Strategic
management focuses on proactive approach which enables organization to grasp every
opportunity that is available in the market.

Business Policy and Strategy

H&M POLICIES

These broad set of various policies in place to guide the company in their
sustainability work. These group-wide policies complement their strong corporate
values, which state that they want to act sustainably in everything they do.
Animal Welfare Policy
Our Animal Welfare Policy outlines our responsibility to secure our supply of raw materials from
an animal welfare perspective through tough requirements and full traceability.
Chemical Restrictions
Our Chemicals Restrictions are as a minimum always based on the highest legal standard in any
of our sales countries as well as on information from authorities, NGOs and scientific reports.
Our restriction list is one of the most stringent in the apparel industry.
Sustainability Commitment
Based on our Code of Conduct that was implemented 1997, our Sustainability Commitment
defines our efforts to make our supply chain more sustainable.
Code of Ethics
At H&M, we make it a rule to act with integrity at all times. Our Code of Ethics outlines our
requirements towards employees and suppliers.
Discrimination and Equality Policy
At H&M all employees are of equal value, and this is clearly stated in this policy.
Diversity Policy
All employees at H&M contribute to the companys success. This is outlined in our group wide
Diversity Policy.

Framework agreement with Union Network International

This agreement states the joint responsibility of H&M and Union Network International (UNI)
for compliance with relevant ILO conventions.

Business Policy and Strategy

Harassment
Policy
All of H&Ms employees are entitled to respectful treatment in the workplace. A respectful
workplace is about more than compliance with the law.
Home Working
In some countries our suppliers are permitted to use home work for specific parts of the
production process guided by a clear policy.
Human Rights Policy
H&Ms approach to human rights is based on the UN Guiding Principles on Business and
Human Rights and the recognition that while states have a duty to protect human rights,
companies have a responsibility to respect the same.
Material Ethics Policy
Our Material Ethics Policy outlines our responsibility to ensure that the natural raw materials we
use in our products are made in a way that preserve natural resources, help maintain biodiversity,
contribute to sustainable development and respect human rights.
Position statement on the Human Right to Water and Sanitation
Access to clean water and sanitation are basic human rights, yet millions of people on our planet
lack this access. We have published a position statement on the human right to water and
sanitation to make it clear where we stand today and how we want to develop our work in the
future.
Sustainability Policy
This policy outlines our approach towards sustainability.

Tax policy in brief

H&M always aims to be tax compliant and our tax policy reflects and supports our business. All
taxes and charges are paid according to local laws and regulations in the countries where H&M
operates.