H&M is a global Swedish fashion and design apparel retailer founded in 1947. It’s one of the world’s leading fashion companies reaching customers across the globe with over 4’800 stores worldwide and a strong online presence. It features nine clearly defined brands which ensure that H&M satisfies various customer needs and segments around the world. H&M’s overall strategy for growth is to expend their network of physical stores – especially in emerging markets – as well as web shops in order to enhance their customer’s seamless shopping experience through modern technology, digital innovation and social media platforms.
Table of Contents
- H&M Scandal: “Coolest Monkey in the Jungle” advertisement (Bad Strategy)
- Reasons for the worldwide outrage
- Consequences of the scandal for H&M
- Strategic move - Why was the ad a bad strategy?
- Inside H&M – guidelines, policies, values
- Intended vs. Emerged strategy
- Boston Consulting Group's 5 types of strategy
- Four characteristics of a bad strategy
- H&M's reaction to the crisis - What did they do?
Objectives and Key Themes
This text analyzes the H&M “Coolest Monkey in the Jungle” advertising scandal as a case study of bad strategic decision-making. It examines the reasons behind the public outrage, the consequences for H&M, and the company's response to the crisis. The analysis utilizes strategic management frameworks to evaluate H&M's actions and their alignment (or lack thereof) with its stated corporate social responsibility (CSR) goals.
- The impact of social media on brand reputation
- The importance of cultural sensitivity in global marketing
- The role of corporate social responsibility (CSR) in strategic decision-making
- Analysis of strategic frameworks in evaluating business decisions
- Crisis management and its effectiveness in mitigating reputational damage
Chapter Summaries
H&M Scandal: “Coolest Monkey in the Jungle” advertisement (Bad Strategy): This introductory section sets the stage by introducing H&M, its global presence, and its stated commitment to sustainability and social responsibility. It then details the controversial advertisement featuring a black child model wearing a hoodie with the slogan "Coolest Monkey in the Jungle," highlighting the immediate and widespread backlash on social media.
Reasons for the worldwide outrage: This section delves into the reasons behind the intense negative reaction to the advertisement. It explains the historical context of using monkeys as a derogatory term for Black people, highlighting the racist undertones and the offense caused by the ad's imagery and messaging. The discussion explores the perceived negligence and lack of cultural awareness within H&M, sparking outrage among consumers, celebrities, and social justice advocates.
Consequences of the scandal for H&M: This section outlines the various consequences H&M faced due to the scandal. It covers the widespread boycotts, the termination of celebrity partnerships (such as with The Weeknd), and the vandalism of H&M stores in South Africa. The negative impact on H&M's stock market performance and the overall damage to its brand reputation are also discussed.
Strategic move - Why was the ad a bad strategy?: This section employs the Strategy Wheel framework to analyze H&M's overall strategy and its failure in this specific instance. It analyzes the company's business model, resources, and market positioning, demonstrating how the controversial ad contradicted H&M's stated values and objectives.
Inside H&M – guidelines, policies, values: This section examines H&M's self-proclaimed commitment to corporate social responsibility (CSR), including its emphasis on diversity, equality, and ethical behavior. It highlights the stark contrast between H&M's stated values and the actions that led to the scandal, questioning the effectiveness of the company's internal policies and guidelines.
Intended vs. Emerged strategy: This section contrasts H&M's intended marketing strategy with the emerged negative consequences of the ad. It discusses the apparent disconnect between the company's overall strategic direction and the individual decision-making that resulted in the controversial advertisement. The analysis points to a failure in strategic planning and control.
Boston Consulting Group's 5 types of strategy: This section applies the Boston Consulting Group's framework to analyze H&M's strategic approach, characterizing it as an adaptive strategy. It argues that while adaptability is crucial in the fashion industry, H&M's failure to anticipate and mitigate the negative cultural impact of the advertisement showcases a significant shortcoming in its strategic foresight.
Four characteristics of a bad strategy: This section analyzes the H&M scandal through the lens of Richard Rumelt's four characteristics of bad strategy. It demonstrates how the advertisement exemplifies each of these characteristics: failure to face the challenge, mistaking goals for strategy, bad strategic goals, and superficial empty slogans.
H&M's reaction to the crisis - What did they do?: This section details H&M's crisis management response, including its swift apology, removal of the advertisement and product, and the appointment of a Global Leader for Diversity. It also examines the effectiveness of these actions in repairing the damaged brand reputation, considering diverse viewpoints on the company's response.
Keywords
H&M, bad strategy, corporate social responsibility (CSR), cultural sensitivity, global marketing, social media crisis, brand reputation, diversity, inclusivity, racism, crisis management, strategic planning, advertising scandal.
H&M Scandal: A Case Study in Bad Strategic Decision-Making - FAQ
What is the main topic of this text?
This text analyzes the H&M “Coolest Monkey in the Jungle” advertising scandal as a case study of poor strategic decision-making. It examines the reasons behind the public outrage, the consequences for H&M, and the company's response to the crisis, using strategic management frameworks to evaluate H&M's actions.
What caused the worldwide outrage over the H&M advertisement?
The advertisement featured a Black child wearing a hoodie with the slogan "Coolest Monkey in the Jungle." The use of "monkey" as a derogatory term for Black people, combined with the imagery, caused widespread offense due to its racist undertones and perceived lack of cultural awareness from H&M.
What were the consequences of the H&M scandal?
The scandal resulted in widespread boycotts, the termination of celebrity partnerships (e.g., The Weeknd), vandalism of H&M stores, negative impacts on H&M's stock market performance, and significant damage to its brand reputation.
Why was the H&M advertisement considered a bad strategy?
The advertisement directly contradicted H&M's stated values and objectives regarding diversity and social responsibility. Analysis using frameworks like the Strategy Wheel and Richard Rumelt's characteristics of bad strategy highlighted failures in planning, goal setting, and addressing the challenge of cultural sensitivity in global marketing. The company's adaptive strategy lacked foresight in anticipating and mitigating potential negative consequences.
What were H&M's stated values and policies regarding corporate social responsibility (CSR)?
H&M publicly emphasized commitments to diversity, equality, and ethical behavior as part of its CSR initiatives. The scandal exposed a significant disconnect between these stated values and the actions that led to the controversial advertisement, questioning the effectiveness of its internal policies and guidelines.
How does the text analyze H&M's intended versus emerged strategy?
The text contrasts H&M's intended marketing strategy with the negative consequences that emerged from the ad. It reveals a significant disconnect between the company's overall strategic direction and the individual decision-making that resulted in the problematic advertisement, pointing to failures in strategic planning and control.
What strategic frameworks are used to analyze the H&M case?
The text utilizes several frameworks, including the Strategy Wheel, the Boston Consulting Group's 5 types of strategy (characterizing H&M's approach as adaptive), and Richard Rumelt's four characteristics of bad strategy. These frameworks help to evaluate H&M's strategic approach and its shortcomings in this specific instance.
What was H&M's reaction to the crisis?
H&M issued a swift apology, removed the advertisement and product, and appointed a Global Leader for Diversity. The text examines the effectiveness of these actions in repairing the damaged brand reputation, considering diverse perspectives on the company's response.
What are the key themes explored in this text?
Key themes include the impact of social media on brand reputation, the importance of cultural sensitivity in global marketing, the role of CSR in strategic decision-making, analysis of strategic frameworks in evaluating business decisions, and the effectiveness of crisis management in mitigating reputational damage.
What are the keywords associated with this case study?
Keywords include H&M, bad strategy, corporate social responsibility (CSR), cultural sensitivity, global marketing, social media crisis, brand reputation, diversity, inclusivity, racism, crisis management, strategic planning, and advertising scandal.
- Quote paper
- Carole G. (Author), 2018, H&M Scandal. "Coolest Monkey in the Jungle" advertisement (Bad Strategy), Munich, GRIN Verlag, https://www.hausarbeiten.de/document/453229
