Business case analysis

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Table of Contents
Introduction......................................................................................................................................3

How are the business and governance structures of your chosen companies different/similar, and
why might this be the case?.............................................................................................................4

What are the environmental factors that influence your chosen companies’ performance and/or
decision-making?.............................................................................................................................5

What are the top three risks your chosen companies face and how might this influence their
decision making?.............................................................................................................................6

Make 3 suggestions regarding how the companies might improve their business practices...........8

Conclusion.......................................................................................................................................9

References......................................................................................................................................10

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Introduction
This report is consisting of two different business case that how their business policies are
gradually participating in the practices of decision-making and gradually upbringing the
performance. It has been explained that how they are evaluating their business performance
according to the business plan and analysis of internal and external business evaluation. There
are various factors on the basis of which the discussion has been made such as the governance
structure of both the organizations and how they are dissimilar. Another concentration is deriving
the factors such as what are the environmental factors influencing business performance and
decision-making. Analysis of three risks that may influence its decision-making and what are the
recommendations they can drive for the betterment and improvisation of business practices. The
selected organizations are Kellogg and H&M from the given site. Both the organization are
product-oriented and international gradually increasing their business performance with effective
decision-making.

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How are the business and governance structures of your chosen companies
different/similar, and why might this be the case?
The businesses of both the organization are dissimilar because one organization is related to the
business of food & health and another organization is related to clothing & fashion. Both the
organizations are performing out of the box in their functional area. The main objectives of both
organizations are satisfying their customers by delivering the best services and unique products.
H&M has targeted the market of fashion since 1947 and currently, they are working in more than
60 countries. They are basically dealing in more than 10,000 product & accessories with 128,000
employees’ workforce. On the other side, the Kellogg is also performing in more than 180
countries with the workforce of 400,000 employees and they are satisfying their customers’
needs by providing them 5,000 to 10,000 products (Chen, et. al., 2018).

The governance structure of Kellogg is including most effective directors and board members
which possess their commitments and compliances creating the value of the business. Kellogg
governance structure programs delivery of high-quality products and specialized in their leaders
of directorship. Whereas the corporate governance of H&M ensures the organization manage its
sustainability of the organization and also shows their interest in shareholders. The most
effective consideration is complying its important tools in approaches they adopt. They are
deriving their code of ethics effectively and gradually presenting their 70 retail markets and 20
production houses in different countries. They maintain good working relationships and
purchasing routines with the customer to meet their requirements and consideration for the
people related to the business. Their risks and management control helps in managing internal
control by making the board of directors. The responsibility of managing corporate governance is
managed by its CEO with its board members to administrate its ongoing management of the
business with regular feedbacks.

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What are the environmental factors that influence your chosen companies’ performance
and/or decision-making?
The environmental factors of Kellogg have significantly changed the performance or decision-
making of this organization (Nyamah, et. al., 2017). Some of the factors related to its political
environment such as the risk of military invasion, political stability and necessity of packed
goods to in the country, legal frameworks property protection, etc. Economic factors that related
to some rates like inflation, saving, interest, foreign exchange, etc. these are factors affects its
government interventions, efficiency of financial market, skill level of workforce, etc. social
factors are such as demographics & skill level of the generation, education level, attitude &
lifestyle of people, power structure of the society, etc. Technical factors are recent technologies
by its competitors, technology diffusions, the impact of cost structure, product offering, etc.

Environmental factor of H&M is also affecting the decision-making and business environment in
several terms such as political factors can be considered the extent of government impacts and
restriction on importing & exporting, relocation of product facilities reduces profit margins &
excess cost, etc. Economical factors of the H&M business include Brexit brought for currencies,
low per cent of currency comparison and negative effects of foreign exchange rates, etc. social
factors involved CSR reports, transparency levels of business, current trends, latest designer
creations, lifestyle & attitude of people, etc. Technological environment of business H&M is
basically increasing using of mobile applications, H&M club fashions, collected rewards by
public, third-party logistics involvement, online purchase, etc (Kouamé, et. al., 2015). These are
the basically factors that are affecting the business performing the functions of business and
gradually changing the process of decision-making and business performance of both the
organizations.

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What are the top three risks your chosen companies face and how might this influence
their decision making?
The decision-making and business performance is a factor but most of it the main objective of
getting into practice is how they can sort these factors minimum possible time (Wang, et. al.,
2014). The decision-making is not an easy function to perform because while discussing all the
necessary criteria of decision-making, various risks occur and affect decision-making in negative
terms. The top three risks are facing by H&M are mentioned as underneath:

 Avoidance through customers: The main risk identified by the management of H&M is
consumer avoidance because this is the most critical factors that are affecting the
business. Customers are more likely to purchase any product through their local market
rather than waiting from product delivery or going to the malls.
 Drastic progression of closest competitors: The performance of its closest competitor is
drastically improving and they are consistently introducing new products with very
digestible prices. H&M’s current closest competitor is Zara.
 Fear of substitution: The fear of substitution of their products is also a very major
problem because every time they launch any new product, after some time the new
replication or substitute comes in the market in half of the original product’s price.

Similarly the management of Kellogg has also found some critical risks that affect the
performance and especially it’s decision-making. The identified risks are mentioned as
underneath:

 Adaption of web based business in business: The food and eatable businesses like
Kellogg are marginally slower to get the arrangement of internet advertising. Slow
handling is the main detriment of presenting internet business in the nourishment
business.
 Anti-sugar development: Kellogg includes sugar and different sugars in their item
producing so as to give a superior nature of taste. It established wrong practices and
absolutely undesirable for diet and wellness. Therefore, it has been proving a risk for
makers.

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 Sluggish item advancements: The creation cycle is moderate and lethargic in
assembling the new item. The item advancement as far as presenting new assortments is
somewhat extreme. Recognizable proof of customers conduct is much progressively
essential to discover whether the new item could remain in the market or not (Kumar, et.
al., 2014).

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Make 3 suggestions regarding how the companies might improve their business practices.
Every business organization has critical viewpoints therefore they need to derive different
business functions and recommendations. The adequate recommendation has also been discussed
for both the organization in order to improvise their business performance and drastically
mitigate their risk factors in minimum possible time. The suggestions for H&M are mentioned
underneath:

 Being a fashion oriented organization it is the responsibility of this organization is to

gradually increase their business performance by smartly use its climatic changes because
many individuals use power and resources to make the changes significant.
 It is very important for implicating ethical considerations and moral values in the
business. It doesn’t only include employee engagement but also removes cultural and
behavioural barriers.
 H&M should include the strategies of reduce, reuse and recycle so the product utilization
and lean management can be used very effectively. It will help them include less cost and
prevailing business paradigms such as developing products and then disposing.

Similarly the suggestion has also been derived by the management of Kellogg are mentioned as
underneath:

 Kellogg is required to produce the products with zero sugar or they can also target a
specific segment of the customers for which they can produce sugar free products. Going
beyond from the expectations of the customers leads to the failure of product
development.
 Focusing on farmers and bringing suppliers working together in the business helps to
reach out various solutions at once. It helps to fill the gaps and bridges come in the
innovations and or any technological change.
 Seeking of balance in is very important for the business to implicate because most of the
business functions are necessary to control a break and duration in manufacturing
products in order to prevent them to become dead stock (Arda, et. al., 2019).

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Conclusion
On the basis of this overall report, it has been concluding that most of the business functions and
strategies are identified in the business to implicate necessary changes. The main objective of
deriving this report is to analyse that how both the business can conquer the challenges and
issues come in decision-making. The most effective and critical challenges comes in the business
may include different risk factors that affects the business performance. Risk control and
mitigation strategy are the part of decision-making because identification of risks at the
workplace are very common. Managers and leaders are responsible that how they can effectively
use their basic leadership and practical approaches to mitigate these risks. The integration or
interconnectedness between the functions of the business is a good factor of reducing the risk
factors and upbringing the performance of the organization. Hence, the applied strategies
included in the business impact the decision-making and performance of H&M and Kellogg
healthier.

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References
Arda, O., Bayraktar, E., & Tatoglu, E. (2019). How do integrated quality and environmental
management practices affect firm performance? Mediating roles of quality performance and
environmental proactivity. Business Strategy and The Environment, 28(1), 64-78.
DOI: 10.1002/bse.2190

Chen, F., Ngniatedema, T., & Li, S. (2018). A cross-country comparison of green initiatives,
green performance and financial performance. Management Decision, 56(5), 1008-1032.
DOI: 10.1108/MD-08-2017-0761

Kouamé, S., Oliver, D., & Poisson-de-Haro, S. (2015). Can emotional differences be a strength?
Affective diversity and managerial decision performance. Management Decision, 53(8), 1662-
1676. DOI: 10.1108/MD-08-2014-0540

Kumar, S., C. Clemens, A., & W. Keller, E. (2014). Supplier management in a manufacturing
environment. International Journal of Productivity and Performance Management, 63(1), 127-
138. DOI: 10.1108/IJPPM-12-2012-0137

Nyamah, E., Jiang, Y., Feng, Y., & Enchill, E. (2017). Agri-food supply chain performance: An
empirical impact of risk. Management Decision, 55(5), 872-891. DOI: 10.1108/MD-01-2016-
0049

Wang, L., Li, S., & Gao, S. (2014). Do Greenhouse Gas Emissions Affect Financial
Performance? – an Empirical Examination of Australian Public Firms. Business Strategy and the
Environment, 23(8), 505-519. DOI: 10.1002/bse.1790

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