Strategic Management for Organizational Excellence

This assignment requires students to analyze and demonstrate their understanding of strategic management principles. They must examine various theoretical frameworks, including those related to dynamic capabilities and performance measurement systems. The analysis should draw upon academic sources listed in the provided bibliography.

Strategic
Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Body ......................................................................................................................................1
Business environment of Zara PLC .......................................................................................1
Pest analysis of Zara :.............................................................................................................2
Porters analysis of Zara : .......................................................................................................3
Strategic position and Value proposition:..............................................................................4
Product development : new product on new market.............................................................7
CONCLUSION......................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
This kind of management in strategic serves in all ways for the enterprise and includes -
organizations objectives,develops terms and conditions in policies and plans which are designed
to reach aims and after that assign that resources for include the plans. This report shows swot
analysis, pestle analysis and porters analysis for the Zara and strategies position.
Main Body
Zara PLC is very popular Spanish clothing and selles accessories in Galicia,Arteriole.
This firm was established by Rosalia Mera and Amancio Ortega in 1975 (Hill, et.al, 2014). It is
also recognised as the world's largest clothing retailer. The Zara has many competitors such as
Derann, Dunelm mill etc.
Business environment of Zara PLC SWOT analysis of Zara :
SWOT Analysis
Strengths  Zara has many stores and front in
uniting and acquisitions of companies.
 Powerful multi brand retail stores with
superior consumer services.
 High brand callback among consumers
and high brand assets in fashion world
(Edenand Ackermann, 2013).
Weaknesses  This Brand has not meet all types of
consumer sections and has limited
global geographic existence.
 Many retail stores for presence creates
the market share getting slow(Slack,
2015).
Opportunities  Using franchise structure would help
company expand to create worldwide
presence.
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 High opportunities to expand in
European area(Freeman and McVea,
2015).
 Franchise structure could help the
clients to expand worldwide.
Threats  Competition is high from national
competitors in this kind of fashion
industry.
 Top level brand knowingness and
options of some specific goods that
may be lead to switching in different
brands(Barney and Hesterly, 2015).
 Growing prices of raw materials would
increase input value.
Pest analysis of Zara :
There are many outer factors affects on business environment. The Businesses world is
dynamic and quickly updating. Organizations can aspect issues and problems from outer factors
which can affect products, policies, peoples and profits (Barney and Hesterly, 2015).
Organization tackles a pest analysis like : 1) In Political ,2) In Economic, 3)In Social, 4) In
Technology
 In Political, some factors affects businesses consists new legislation like the
wages with minimum and tax rates at national like some taxes VAT or at
corporation. Some changes on political like an update at government or an update
on its policy. Programs by the governments to increase on regular taxes
implements on like some new day. Change prices in all the stores on at that tome
takes so many man and hours of time(Simons, 2013). By Government, Zara is
pleased judgement on some scheme like LEP make employ and create
opportunity for new jobs around 2010 or 2011 or may be obtain government
employees that requires training.
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 Economic updates- Economic factors affects companies are rising prices and
unemployment, interest rates and exchange rates. It is related to update in the
national revenues like increase in the standard lifestyles or simple level of
demand,increase and decrease in in the interest rates.Credit crunch has affected
the UK market .The recession is expected to rise out of financial condition in the
next year(Renz, 2016). Because the Uk recession , New jobs in the UK economy
is developed by the worlds highest development of exports to the country and as
an effect more consumer will purchase the Zara brand. The is like to bMore
tourists from the EU and on the far side peoples will purchase Zara products at a
competitive value as the. Most of the world retrieved from the current economic
situation. Zara is just like to expand their expansion into the international market,
introducing new consumers to new brands in an exciting retail environment.
 Social factor- Zara added client judgements and feedback of the centralized shop
to raise its shopping experience of the customers experience and thrust sales.
Clients can be capable to hear the fellow shoppers thinking by avoiding blind
belief on brands professional opinion (David and David, 2015). The Zara team
improving its website and adding features like social networking capability, video
and outfit projection, an online outlet which causes current reviews and surveys.
 Technological factor-Invention of development of the internet and websites as
business tools and application of new thoughts(Bettis, et.al 2015) is the main
point of Technological factor. New internet and television technology which use
special effects in advertising will create Zara products are gaining their name and
fame as people are now using the internet.
Porters analysis of Zara :
Porters five forces analysis as a model to study the level of competition within an
organizations and business development. The five forces are used to measurement the
profitability of an enterprise (Bettis, et.al 2014). These forces are a micro environment of an
enterprise of a company in an industry, which impact its quality to provides services to clients
and make a profit. The porters five forces analysis analyse the industry of business activity and
helps the organization fine new sources of competitive benefit, The analysis summary an
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enterprise through five major things: 1) Perils of established rivals, 2) Peril of substitute, 3) Peril
of new participants 4)Transaction power of customers and 5) Transaction power of sellers
The treat new entrances is high when profitable markets production high returns. Wiki
lists some factors that could have an impact on the quantity of how to treat new users may
affectedness, the already given of hurdles to enter, economies of scale, difference in quality of
products, product equality, moving to reimbursement, Permission of distribution, client
faithfulness to established brands and befitting organisation(Steinbach, et.al., 2017).
The unlikeness quality of Zara allows to benefit from the customers to achieve the gain in
market share without wasting time on advertisement
Competitors waiting for the project which is incoming trend is episodes by fashion
industry. Due to constant innovative and creative designs of most up to date fashion.,Zara is still
distinct from others
The bargaining power of buyers is described as the level of bargaining power the buyers
have to set an enterprise under force and power competition (Bryce, 2017).
The buyer power is high when buyers have various options but it is low if a buyer acts
alone.
Strategic position and Value proposition:
Strategic Position : An enterprise comparative position within its industry matters for
performance. This indicate options an enterprise creates about a type utility that can make and
different worth can be generated against competitor (Bhasin H, Marketing Strategy of Zara –
Zara Marketing Strategy,2016). Strategic positioning must interpret in another thing either at
moderate price or at lowest cost of the company. It is feasibility for the organization to vie at
low cost and make changes same time but organizations make efforts in order to be every stuff
for every client stop in the middle because of problem,that arise due to wrong planing. Strategic
numbering can be considered as the numbering any enterprise in up coming days while taking
into account the changing environment with the systematize recognition the numbering. That
contains the desirable up coming numbering of organization on behalf of their existing and
predictable evolutions in order to realize the ranking.
Value proposition : Value proposition can be considered as an company marketing
argument that an enterprises uses to analyse the reason for that customer should buy or use our
product. The given argument converts a possible customer that a single product can offer more
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and better solution of the dilemma than any other such service (Hubbard and Galvin, 2014).
Organization point such kind of issues to indicate consumers who may earn maximum profit by
using the organization's items in order to balance the egomaniac trench. A successful amount
recommendation has a bold headline that communities the delivered profit to client. Title should
remain in individual remarkable statement, expression or any point. Value proposition can follow
various formats as long as they are different to the company and to the customers it is servicing.
On the swot analysis, pest analysis and porters analysis I recommend for the strategic
position. For developing strategy, the organization's mission, visions and their principles are
used as an adhesive that bound the enterprise stable (Fynn, et.al 2016). It is required part to
making their strategize foundation and developing a strategies. Their components are protected
but their strategies and aims modify and flexable with the market. They might change their
aim,view or principles with time but intent may not change and they would be having fully
clarified while creating important organizational decisions which may cause impact in the up
coming days.
Department store Zara has issued a profit warning for its first half following a ten per
cent fall in like for like sales during the two snow affected weeks in January. Promotional
activity undertaken in February to capitalise on valentine's day and hold term in a command to
recover lost sales proved damaging to gross margin, which is set to be flat rather than see a ten
basis point rise as previously guided (Vogeland Güttel, 2013). Department store series
Debenhmas discovered falling sales as is said demand for clothes had been weak amid unsure
trading conditions.
Organizations aim, view and principles can stable ideal, enteric and honourable flossy a
huge group of person specially individuals that are working hard in order to go high in the real
proposal. Such person do not rethink the incident and bother to peoples wishes and dreams. Do
not suppose life pragmatical during this process necessary steps for good initiation of drawbacks
of their company (Chen, et.al 2015). If peoples re not taking time in thinking their aim, view and
objective about output as they create plans, they will pay for it later when writing aims and
objectives without a clear strategic direction. Zara declares a promotional strategy considering
25% of profit. A huge decline is recorded on discount during the complete Christmas season
after adding into weak multichannel.
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With Zara's planning group accepted and their schedule set, they are ready to move into
establishing or reappraisal organizations scope,quality and aim (Nahavandi, 2016). For
expeditiously move via this phrase, do not get confusion with scope and quality . Scope is an
objective for organization core concepts that organization is great in the current tense.
Organizations believable state that organization reache their level and best for the future. In an
organization strengths qualities and values put to end on its scope and aim. The Zara have to
handle some aspects are like collection of information, analysis, options for strategy , aim for
future and changes .
Aim for future – The future is depends on the past and present work of an organization .
Organization is not depends on the series of ducks or may be some coffee grounds that not taken
on the basis of the gossips. Researches like trends is supported on some small works that declare
developments for future (Zhao, et.al 2017). If Zara can keep trends for today's then they will run
their business in future using generalize that content. This have to be notice that all to trace the
developments which are non volatile and applicable for own enterprises. Using generalize
contents for the today's trends and after that apply them in industries.
Collection of information- This consists research in two things first is internal and second
is external. In internal contains the current level of an organization ,all negative as well as
positive things like success,status, failure etc. This recommended to create a list for an
organization like its criteria, which contains branches of peolpes that working in the firm (Teece
and Shuen 2016). Using this the weakest link can be found of the firm. From outer research can
be get importance in believe for the firms objective. For the analysis the studies data internal as
well as external are both connected with each other. Options for strategy, the deep analysis by
the all researches can help to get threats, make opportunities and current status of the company.
This really good to create a positioning option for the firm. In updates and changes, dividing
some things from the aspected future choices, so data is transferred into done in series to
understand the status of firm. i.e., components for the business plan instantly focus on at :
 Growth : strengths of firms current postilion for the current market,
 New Market: give intro of firms products on at different areas or markets,
 Activity developments: give intro of firms new product in the current market, and
 Product growth : new product on different market.
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CONCLUSION
Using SWOT analysis, PEST analysis and Porters analysis this report has emphasised on
the norms that Zara is one of the most retailers. This company is now expanding internationally
and holds a very good reputation across the worldwide. They were same vessel as well as all
other retailers during the economic downturn with the disbursement force minimizing and sales
shooting down. This report shows the strategic position of the company. It faced some problems
and handle them very easily.
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REFERENCES
Journals and Books
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and cases. Pearson.
Bergh, D.D., Aguinis, H., Heavey, C., Ketchen, D.J., Boyd, B.K., Su, P., Lau, C.L. and Joo, H.,
2016. Using meta‐analytic structural equation modeling to advance strategic management
research: Guidelines and an empirical illustration via the strategic leadership‐
performance relationship.Strategic Management Journal. 37(3). pp.477-497.
Bettis and et.al., 2014. Quantitative empirical analysis in strategic management.Strategic
Management Journal. 35(7), pp.949-953.
Bettis, R.A., Gambardella, A., Helfat, C. and Mitchell, W., 2015. Qualitative empirical research
in strategic management.Strategic Management Journal. 36(5). pp.637-639.
Bryce, H.J., 2017.Financial and strategic management for nonprofit organizations. Walter de
Gruyter GmbH & Co KG.
Chen, C.M., Delmas, M.A. and Lieberman, M.B., 2015. Production frontier methodologies and
efficiency as a performance measure in strategic management research.Strategic
Management Journal. 36(1). pp.19-36.
David, F.R. and David, F.R., 2015. Strategic Management: A Competitive Advantage Approach,
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Eden, C. and Ackermann, F., 2013.Making strategy: The journey of strategic management. Sage.
Freeman, R.E. and McVea, J.A., 2015. A Stakeholder Approach to Strategic Management (No.
01-02).
Frynas, J.G. and Mellahi, K., 2015.Global strategic management. Oxford University Press, USA.
Fynn, R.W., Augustine, D.J., Peel, M.J. and Garine‐Wichatitsky, M., 2016. REVIEW: Strategic
management of livestock to improve biodiversity conservation in African savannahs: a
conceptual basis for wildlife–livestock coexistence.Journal of applied ecology. 53(2).
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Goetsch, D.L. and Davis, S.B., 2014.Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014.Strategic management: theory: an integrated
approach. Cengage Learning.
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Hubbard, G., Rice, J. and Galvin, P., 2014.Strategic management. Pearson Australia.
Morden, T., 2016.Principles of strategic management. Routledge.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015.Strategic international management.
Springer.
Nahavandi, A., 2016.The Art and Science of Leadership -Global Edition. Pearson.
Renz, D.O., 2016.The Jossey-Bass handbook of nonprofit leadership and management. John
Wiley & Sons.
Rothaermel, F.T., 2015.Strategic management. New York, NY: McGraw-Hill.
Simons, R., 2013.Performance Measurement and Control Systems for Implementing Strategy
Text and Cases: Pearson New International Edition. Pearson Higher Ed.
Slack, N., 2015.Operations strategy. John Wiley & Sons, Ltd.
Stead, J.G. and Stead, W.E., 2013.Sustainable strategic management. ME Sharpe.
Steinbach, et.al,2017. Top management team incentive heterogeneity, strategic investment
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Zhao, E.Y., Fisher, G., Lounsbury, M. and Miller, D., 2017. Optimal distinctiveness: Broadening
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Online
Bhasin H.,Marketing Strategy of Zara – Zara Marketing Strategy,2016 [Online].Available
Through<http://www.marketing91.com/marketing-strategy-zara/>[Accessed on 16 May
2017].
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