Business Environment Assignment - Zara

Business and Business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between various organisational functions and it is related with organisational
objectives and structure..........................................................................................................1
TASK 3............................................................................................................................................3
P4 Positive and negative impact of macro environmental factors.........................................3
P5 Internal and external analysis of ZARA............................................................................6
TASK 4............................................................................................................................................7
P6 How strength and weaknesses are interrelated with external macro factors ....................7
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Environment of a business means internal and external forces which influence business
decisions, these elements are out of control of a business organisation. Business environment is
totally uncertain cause it is quite difficult to predict future happenings, especially when
environment changes occur too frequently due to information technology. An enterprise should
constantly monitor environment and acquire appropriate practices which will improve current
performance and ensure market success for long run. Due to globalisation, business environment
of UK has totally changed in respect of creation of networks and activities that could transcend
economic, social and geographical boundaries of the nation (Hilton and Platt, 2013). ZARA is
the chosen organisation in this present assignment, its a Spanish clothing and accessories
retailing firm that was implemented in 1975. Basically, Zara is a flagship company of Inditex
group which own brands are – Pull and Bear, Massimo Dutti etc. Due to its global market
presence, the brand has a wide network of supply chain. Apart from this, the present report is
going to be described various types of business organisations, such as – public, private and
voluntary. There will be a discussion on interrelationship between all organisational functions in
accomplish goals and objectives. Furthermore, internal and external analysis will be conducted
so as to take imperative business decisions.
TASK 1
Covered in PPT
TASK 2
P3 Relationship between various organisational functions and it is related with organisational
objectives and structure
In this competitive era, large business organisations are tend towards applying
cooperation between all departments of the firm thus to grab better future opportunities. It also
helps the firm to attain and its mission and vision statement at marketplace. Following is defined
various department of Zara, such as -
 Finance department – The most common role of finance department is to make
documentation and put a control over incoming and outgoing cash within an organisation.
Finance manager of Zara determines cash flows and keep them up to date, assess
performance of the organisation as well as evaluate straight away (Cai and Yang, 2014).
Another important role of finance department is preparing budgets, financial statements
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(trading accounts, income statements and balance sheets). Due to introduction of
computerised system, all this can be done far quicker and required less labour incentives.
 Human resource department – This department of the company is liable for managing
entire workforce in a systematic manner so as to reduce labour turnover. Human resource
department of the company is liable for recruitment and selection and for this certain
strategies are put into action. In this tone of competitive vying, firms are trying to retain
best talent and for this HR managers organise several training and development
programmes thus to improve skills and knowledge level of the firm.
 Operational and production department – In manufacturing companies, operational
department is liable for making products which are offered to customers. This division
create outlines for products as well as making plans for productions; it involves quantity
of raw materials, volume of goods etc. Along with this, production department also
ensure about the availability of raw materials and determine whether goods and services
are being delivered to customers on time (Chavis, Klapper and Love, 2011). It also test a
product's quality as it will be satisfy customers' needs or not. Research and development department – This department of the company is responsible
for conducting market research thus to recognise needs and wants of target audiences. It
also collects knowledge current and future market trends as well as who are or will be the
competitors of the company. By gathering adequate marketing information, managers can
easily improve their strategies and policies which supports to attain goals and objectives
of the company.
Organisational structure of Zara -
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