5769 BE & mp

BUSINESS ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................1
TASK 1......................................................................................................................................1
1.1 Purposes of different types of organisations and appropriateness of Zara’s purpose......1
1.2 Extent to which Zara meets the objectives of its diverse stakeholder groups..................2
1.3 The responsibilities of Zara and the strategies employed to meet the expectations of
different stakeholder groups...................................................................................................3
TASK 2......................................................................................................................................3
2.1 Economic systems and their influence on Organizations................................................3
2.2 Impact of Fiscal and Monetary Policy on shaping the macro environment.....................4
2.3 Impact of Competition Policy..........................................................................................5
TASK 3......................................................................................................................................5
3.3 Business and cultural environments shape the behaviour of the Zara.............................5
3.2 Market structures determine the pricing and output decisions of the business................5
3.2 Impact of Market Forces..................................................................................................6
TASK 4......................................................................................................................................6
4.1 Significance of international trade to UK business organisations...................................6
4.2 Impact of global factors on Organizations.......................................................................7
4.3 Impact of Policies of the European Union.......................................................................7
CONCLUSION..........................................................................................................................7
REFERENCES...........................................................................................................................8
REFERENCES.........................................................................................................................10

INTRODUCTION
In today’s highly competitive environment there are various factors which affect the
business in a positive as well as negative way. In these factors, internal as well as external
factors affect the functioning of company as well as its employee’s performance (Shaikh,
2010). In this regard, the present report is developed on the case study of Zara which is
world’s fastest growing manufacturers of affordable fashion clothing. The company is highly
committed to satisfying their consumer’s needs by continuously incorporating the innovative
business practices. Zara maintains a strong relationship with their contractors and suppliers—
viewing them as part of the company. Further, this study gives brief description about the
environmental analysis and the fundamental concepts and principles of the marketing process
applicable to the Zara. It also helps in analysing the cultural, economic and regulatory
environment within which a Zara operates.
TASK 1
1.1 Purposes of different types of organisations and appropriateness of Zara’s purpose
There are different types of organizations which are operating different business
functions for different purpose such as:
Public sector organization: These are the firms which are owned by different
individuals. It is a sort of private business started with diverse people for gaining positive
amount of profits for their personal growth. In this, profit which has been gained is equally
distributed among all the partners of business.
Private sector organization: These are the organizations which basically includes
national as well as local governments and agencies (Nandi, 2010). For the whole community
these organizations are founded to be very beneficial as they serve for public concern
provides them number of benefits as well.
Non-profit organization: One of the best example of non-profit organizations are
NJO’s which serves for maintaining sustainability within the country. It can also be define as
a group which is highly concentrated towards the fulfilling the demands of targeted audience.
Various development programs are raised by such companies for the profit of poor people as
well.
From the above description it can be stated that Zara is Spanish clothing and retail
firm which serves as a public limited company (Dwivedi, 2009). Here, Zara has found
differences that matter to customers and differentiated itself from its competitors by
performing key activities.
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Mission of Zara: The main mission of company is to give their customers and
exclusive choice of fashion as per their needs. They want to provide quicker turnover of new
stock than new retailers.
Vision statement: Company wants to become a first choice of their customers in a
family retail shopper by enhancing their level of customer satisfaction (Chris, 2000).
Company is serving their business operations as public limited company and by
setting their vision they are able to achieve their objectives. In this regard, the objective of
Zara stated that they want to go through the business expansion in other countries by
producing high quality product.
1.2 Extent to which Zara meets the objectives of its diverse stakeholder groups
A stakeholder plays a most important role in managing all the business operations
more effectively. There are diverse ranges of stakeholders in Zara such as customers,
suppliers, employees, government agencies etc. In this regard, it is quite essential to fulfil the
needs and demands of all their stakeholders. Zara have adopted various strategies which helps
them in meeting such needs (Atkinson, 2012). There are basically three parts in which they
have divided their stakeholder’s i.e.
Internal stakeholders: In this, all the managerial level people are involved and they
are one who takes all the decisions regarding the future growth of company. In comparison
with other clothing retailers, Zara tries to maintain comfortable working environment.
Company is also helping their workers by providing them appropriate training about to make
quality products (Stredwick, 2005). Creative teams have been developed by them which is
basically consists of designers, sourcing specialists and product development personnel. In
addition to this, management team of Zara has taken a decision to hire young professionals.
Company hire them and train them to make quick decisions. With the help of this, company
is able to, speeding up the development process and minimizing the number of samples made.
Connected Stakeholders: These people works with company for their own interest
such as suppliers, clothing retailer etc. Zara is meeting the objectives of these stakeholders by
maintains a strong relationship with their contractors and suppliers (Bello, 2005). Company
develop better relations with them and view them as a part of their company. In addition to
this, some of the major connected stakeholders of Zara are designers, pattern makers and
merchandisers and all of them are involved in the product development.
External Stakeholders: These are the stakeholder for whom company works and
develop various. These includes customers, government etc. and company is able to identify
all their consumers need effectively. Zara is successfully reacting to their customers’
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