Applied Corporate Strategy: Strategic Analysis Report

Applied Corporate Strategy
Assessment: Strategic Analysis
Report

Table of Contents
INTRODUCTION...........................................................................................................................1
Carry out external analysis (business environment and industry) to identify a set of
Opportunities and Threats and assess industry attractiveness.....................................................1
Analyse the resources and key competences of the organisation and identify core competences
......................................................................................................................................................4
Choose one strategy that the company implemented recently and evaluate it using SAFe
criteria..........................................................................................................................................7
CONCLSUION................................................................................................................................8
REFERENCE ................................................................................................................................10

INTRODUCTION
Corporate strategy is defined as important approach which uses by organization in order
to develop the business performance and productivity. Corporate strategy is like a plan and ideas
which are developed by management by analysing the situation of business and formulating the
planning which can help to develop the future activities (Mukhezakule and Tefera, 2019). This is
important for all industry to know about current trend and culture then brings the new changes
that can help to develop the organizational performance. The report is based on case study of
Zara that is Spanish apparel retailer, providing variety of designing clothes that influences the
number of customers and develop the organizational performance. The management of such
organization conduct the market research and formulates effective strategies which can help to
develop the productivity and brand image. This report covers external analysis by identifying
opportunities and threats, resources and key competence of the organization and selection of one
strategy that the company implemented.
Carry out external analysis (business environment and industry) to identify a set of Opportunities
and Threats and assess industry attractiveness.
The business is composed of all outside factors that are important to consider while
running a business (Schiozer and et.al., 2019). This is needed for company to know which
factors can impacts on the operation and how they influences the environment. In other words,
combination of all factors and aspects in relation to business can affect the performance in
changing environment. In relation to Zara, different model is uses to analysis external
environment such as:
PESTLE Analysis – This can be explained as model which uses by organization to
analysis the environment to know which factor has impact on organization and how to manage
the organizational activities. The analysis is explained as below:
Political factor: This factor is considering tax rates, changing in government, stability,
and fiscal policy that are related to business and needs to follow environment. This is important
for organization to follow all regulations which are related to business and government
activities. Zara is multinational brand that is running their business by following all tax rates and
fiscal policy which has impacts positively. On the other side, increases in tax rate while
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expansion in other country can be challenging situation for Zara to operate their business and
activities continuously (Goodman, 2019).
Economical factor: This factor is related to inflation, interest rate, GDP rates and others
which are important to focus for the purpose of running business. The inflation rate of different
country are stable where Zara is operating and running their business by selling the different
design of clothings to customers which can help to develop the organizational performance. On
the other side, due to occurrence of Covid -19, rate of employment has been decreased which has
reduced the sales of clothing that has impacted on performance negatively (Kitsios and
Kamariotou, 2019).
Social factor: This can be explained as career attitudes, health conscious, population
growth rate, and health consciousness that has affected the organizational performance. In
changing environment needs and wants of customers are changing day by day where Zara is
taking the competitive advantages by offering kind of products and clothes in changing
environment. On the other side, due to cultural barriers sales activities of Zara could be decrease
as it affected the customers choice and wants negatively.
Technological factor: For all organization it is important to bring new technology and
innovation in their business that has impacted the performance in changing environment. In
relation to Zara, using the new technology and innovation for the purpose of enhancing quality of
customers service RFID (Radio Frequency Identification Technology) uses that can help to
influence the number of customers (Coulson-Thomas, 2020). Moreover, cutting edge system is
uses to track the location of garments instantly that makes the demand rapidly available to
customers. On the other side, To adopt the new technology, high cost and time of organization
can be consume which can be challenging for selected company (New technology and innovation
uses by Zara. 2020).
Legal factor: This factor is related to laws and regulation that are related to a business
which are important to follow. Zara is operating their business by following the employment
laws and trade regulations which are important for organization as it support to operate the all
functions. Zara is large size retailer, that is following all employment and trade regulations which
has impacted positively on organization effectively.
Environmental factor: This is another factor that states how organization is maintaining
all activity that are related to business environment. As showing in case study, Zara is taking the
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