Internal and External Factors

INTERNAL AND EXTERNAL FACTORS
External factors
Political Factors- Import and export taxed imposed
by local and international governments.
Economic Factors- Economic recession and
inflation rate
Social Factors- Changing customer demands and
society trends.
Technological Factors- Internet, website and social
media.
Environmental Factors- Environmental laws,
competitor’s and CSR.
Legal Factors- Workers safety and labour rights
Approaches of Zara to minimize the
impact of external environment
Political Factors- By effective management of
operations and by following all rules and guidelines.
Economic Factors- By changing pricing strategy of
the company.
Social Factors- Rational decision making.
Technological Factors- By using advanced
technologies.
Environmental Factors- Non harmful production
processes and raw material.
Legal Factors- Operate as per local legal
framework.
Impact of external and internal
environment on Zara
Internal factors
Tangible resources- Strong financial position in
international market, trademark on red soles.
Intangible resources- More than 200 designers,
highly proficient ITC systems, suppliers and in-store
inventory model.
Capabilities- Time-compressed manufacturing
process, vertical integration model.
Dmitrijeva, J and et.al., 2020. Context matters: how
internal and external factors impact servitization.
Production Planning & Control. 31(13). pp.1077-1097.
Fernández-Olmos, M. and Ramírez-Alesón, M., 2017.
How internal and external factors influence the
dynamics of SME technology collaboration networks
over time. Technovation. 64. pp.16-27.
CONCLUSION
REFERENCES
From the above stated information, it can be concluded
that business environment can be affected due to any
change in the internal and external business
environment. B using various tools and techniques, it
helps organisation in identifying such factors by which
they can minimizes the negative impact and gain more
opportunities for the business.
A business environment consists of various internal
and external environment which can influence the
business positively as well as negatively. Zara is a
Spanish apparel retail company which offers wide
variety of products such as clothing, accessories,
shoes, beauty products, swimwear and perfumes.
INTRODUCTION