Applied Corporate Strategy

Applied corporate
strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
External and Industrial analysis to identify Opportunities and Threats......................................1
Analysis of Resources and key competences..............................................................................6
SAFe criteria applied to a strategy implemented by organisation ...........................................13
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Corporate strategy is a highest strategic plan for an organisation that duly defines
organisation overall directions as well goals along with the way in which they can be achieved.
Goals and objectives of company are unique that are mainly formulated as per according to the
current market situations (Davies, 2016). Present report has been conducted on, Zara. Company
conduct their functioning as a leading fashion entity while operating their services in retailing
organisation. In this report formative discussions has been made on Five Force analysis as well
as PESTLE in order to evaluate external environment. While for internal analysis VRIO is being
covered in this report. Lastly, in this report SAFE criteria is being applied which is being applied
as one of the future strategies of entity.
External and Industrial analysis to identify Opportunities and Threats
Zara perform their operations as main brands of Inditex. Company marked themselves as
a leading entity within fashion retailing segment. Company offer offer latest and fast fashion
apparel to customers with of high quality. Zara parent company is a leading and one of the
biggest global brand operating in fashion retailing industry.
Figure 1: Global Fashion Retail Industry Statistics
(Source: Global Fashion Retail Industry Statistics, 2019)
It is important for each and every organisational unit despite of their size and scope to effectively
determine business environment as to decide strategic course of action for company growth and
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welfare. In order to evaluate external environment, Zara manager undertake of Industry and
PESTLE analysis:
PESTLE Analysis
PESTLE analysis, a strategic tool that that aid an organisation to identify its strength,
weaknesses, threats and opportunities in order to gain competitive advancements. Companies
within retailing sector by undertaking advantage of PESTLE analysis with an aim to increase
their consumer base via applied corporate as well as newly designed strategies.
Political: It involves factors like entry mode policies, political stability, taxation regulations and
more. In this it is essential for organisations those perform their functions in retailing segment to
effectively evaluate factors within this factor as to perform operations in a well defined manner.
Elements that are prevailing in political factor impact of functioning of entity in number of ways.
This factor duly involve threat as well as opportunities that are being defined below:
Opportunity: United Kingdom political condition is strong that provide boost to
companies within retailing sector those who come up with speedy innovations.
Threat: Factors like political instability, trade wars, adverse political situations, terrorist
attacks pose threat to organisation on their sustainability. This will lead towards fluctuations in
demand,supply and price of raw material. This significantly affect functioning of organisation.
Economic: Foreign exchange rates, economic growth, interest rates, inflations are involved in
this factor. Thus, it is essential for entities those who conduct their services in fashion retailing
segment to have proper understanding of all these factors and formulate strategies to overcome
negative impact while undertaking advantage of positive one. This will benefit to ensure their
significant growth in respective sector.
Opportunity: United Kingdom is having stable economic growth rate that duly provide
significant opportunities for relating organisation to expand their operations and market share
holding.
Threat: BREXIT impact of performance of organisations within UK in a vulnerable
manner. In order to overcome this, entities within retailing segment are required to undertake use
of pricing strategies which is affordable to every economic section within society.
Social:Constant fluctuations and changes within taste, preferences and trends within customers
lifestyles are covered in this factor. In order to serve society at its best, companies within
retailing segment must ensure that they have effectively evaluated preferences and perceptions of
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individuals within society in best effective manner. With the help of this, they can effectively
able to ensure competitive positioning is respective organisational sector.
Opportunity: As to determine dynamic trends and changes within customer lifestyle,
entities involved in retailing segment are required to conduct effective market research and fulfil
demand of customers as per according to their preferences.
Threat: Retailing segment involves highest threat, as in this it takes a minute for
customers to give a tag of “outdated” to organisational offerings. This lead organisations
involved within this segment towards a pressure in which they are required to constantly involve
in the process of offerings new and unique to their customers.
Technological:It involves rapid change in software and technical tools and techniques. With the
rapid change in technological segment there is constant change in tools and well as technologies
that are required to be duly determined by entities within fashion retailing sector. This will
effectively allow them to save themselves from being get outdated among customers mindset and
marketplace.
Opportunity: UK is technological advanced nation that give boost to entities to make
significant increase in their sales and performance. By taking advantage of upcoming
innovations and technologies retailing organisation can significant able to gain more competitive
advancements. In addition to this, it is essential for entities to implement newly advanced
software within their departments as to serve customer within marketplace in best effective
manner. It further allow them to gain more effective manner.
Threat: Technology is very dynamic that makes entity to conduct constant research as to
determined new trends within technology that provide formative assistance to organisation to
safe themselves from being get obsolete. Major threat that revolves around this factor is that, as
to implement new technologies on regular basis firm required large amount of funds.
Legal: Laws related to employment safety & health, patent violation, import & export regulation
etc. are covered in this factor. By abiding all legal rules and well as regulations entities
performing their operations in retailing organisational segment can operate their functioning
without facing any legal hindrances from government institutions and authorities.
Opportunity: By abiding all legal obligations and laws organisations within retailing
segment can provide healthy workplace environment to their workers and can further build
positive image among public that maximise their global market share. In addition to this, it has
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