Cultural Environment of Zara

Running head: CULTURAL ENVIROMENT OF ZARA
CULTURAL ENVIROMENT OF ZARA
Name of the Student
Name of the University
Author Note

1CULTURAL ENVIROMENT OF ZARA
Table of Contents
1. A brief background to the organization and its environment.....................................2
2. An Introduction to the focus of the report..................................................................2
3. A brief argument which explains why you have chosen this framework instead of
others..........................................................................................................................................3
4. An explanation of the theoretical framework you will use to analyse the
organization, including its main concepts..................................................................................5
5. An analysis of practice, issue, event or sub-unit which uses to chosen theoretical
framework and concepts............................................................................................................7
5.0 Power distance.....................................................................................................7
Individualism..............................................................................................................8
Masculinity.................................................................................................................8
Uncertainty avoidance................................................................................................9
Long term orientation.................................................................................................9
Indulgence..................................................................................................................9
Conclusions..................................................................................................................10
Recommendations........................................................................................................11
References....................................................................................................................11

2CULTURAL ENVIROMENT OF ZARA
1. A brief background to the organization and its environment
Zara SA is a Spanish organization that operates in the fast fashion based retail
industry. The organization has its origins in Arteixo in Galicia. Zara was established in the
year 1975 by Rosalia Mera and Armancio Ortega. Zara has been able to become a major
brand that belongs to the Inditex Group which is the biggest apparel based retailer in the
world. The major brands that are owned by the Inditex Group mainly include, Pull & Bear,
Massimo Dutti, Uterque, Oysho, Bershka and Zara Home (Zarahome.com., 2019). Zara has
been managing around 20 clothing based collections in the year 2017. Zara has been able to
expand its international operations by opening its first international store in Portugal in the
1988. The organization has been able to enter the United States in the 1989, following it has
expanded its operations in many different international locations within 2010
(Zarahome.com., 2019).
Fast fashion is a term which is mainly used by the fashion based retailers for the
purpose of expressing designs which are able to move quickly from the catwalk for capturing
the current trends in fashion. Fast fashion can also be associated in an effective manner with
the concept that is related to disposable fashion. The fast fashion based industry has been able
to affect the retail industry in a huge manner (Adekola & Sergi, 2016). The retailers in the
industry thereby aim at keeping up with the fast paced shopping based journey of the
consumers. Zara operates in the fast fashion based industry and is able to deliver the products
based on changing needs and demands of the consumers who are a part of the market (Bakir
et al., 2015).
2. An Introduction to the focus of the report
The major cultural challenge that has been faced by Zara in China is based on the lack
of proper development of physical store based culture. The organization has failed to develop

3CULTURAL ENVIROMENT OF ZARA
the physical stores in the country. Major attention was provided to the online stores and sales
that are made with the help of these stores. The lack of proper store related culture of the
organization has been able to affect the relationship that has been developed with the
customers as well. Zara was not able to connect with the customers in an effective manner,
which led to the lack of profitability of the organization (Bambauer-Sachse & Rabeson,
2015).
The main issue was based on the lack of proper interaction of store employees with
the customers who visit the stores. The organization has not been successful in developing
high levels of popularity among the customers in China. This is also related to the
communication process that has been developed by the organization in the industry. The lack
of proper communication in the organization has been able to affect the long term operations
of Zara in China (Beugelsdijk, Kostova & Roth, 2017). The culture and tradition that is
followed by Zara in other parts of the world have not been followed in China. This has led to
the closure of the flagship store of the organization in the year 2017. Zara has not been
successful in maintaining the operations in the country successfully due to the major
challenge related development of proper organizational culture that has been followed by the
organization (Bambauer-Sachse & Rabeson, 2015).
3. A brief argument which explains why you have chosen this framework instead of
others
The national cultures of different countries are based on various cultural value based
systems. The generation of value systems is based in a conception and the beliefs based on
different necessities and resources. The two major models that are used for the analysis of
differences that exist between the national cultures are Hofstede’s cultural dimensions and
Fons Trompenaars cultural factors. The comparison of the two models are based on the ways