Zara's Business Environment: A Detailed PESTLE Analysis in the UK

This essay provides a PESTLE analysis of Zara's business environment, focusing on political, economic, social, technological, legal, and environmental factors in the United Kingdom. It highlights the impact of government policies, GDP growth, inflation rates, employment levels, technological advancements, legal regulations, and environmental considerations on Zara's business operations. The analysis concludes that understanding these factors is crucial for effective policy monitoring and economic development, enabling Zara to navigate the complexities of the UK market and foster sustainable business practices. The study references various academic sources to support its findings, offering a comprehensive overview of the external forces shaping Zara's strategic decisions.

UNDERSTANDING THE BUSINESS
ENVIRONMENT

INTRODUCTION
• The study will be highlighting in the development of better innovations that will
automatically improve PESTLE analysis that will be mainly looking for the
development of the study
• The study is important in the sense that through the development of PESTLE
analysis will be highlighting the influence of factors like political factor,
economical factor, social factor, technological factor, legal factors and
environmental factors

POLITICAL FACTOR
• The political will be looking for the development of the business in the
united kingdom. Through the development of better GDP is having a value
of 0.2% and this is the monthly trend that the country is facing
• On the other hand, the development of annual growth of the country is
going to 1.3%. This is important in the sense that through the
development of government policy the UK economy is basically growing
(abdelkafi and täuscher, 2016)
• This factor is important in the sense that through the involvement of better policy the
economy will be developing investments
• Economic factors will help ZARA in increasing their investment. Through the incorporation
of the inflation rate it will be important for them to identify the development of resources that
will help in the innovation of business technologies that will not only allow the development
of the business in the domestic and international market (zara.Com, 2019).

ECONOMIC FACTORS
• Inflation rate is prevailing in the economy at a rate of
1.9% in the united kingdom. This is important in the
sense that through the development of better monitoring
of the government regarding the inflation
• The improvement in the financial issues is one of the crucial criteria in the
sense that it will minimise the economic performances. On the other hand, the
interest rate is not increasing that is making an impact on the savings of the
consumers (antikainen and valkokari, 2016).

SOCIAL FACTORS
• Social factors is important in the sense that government is focussing on the
development of the employment in the economy. On the other hand, the
employment level is about 76.1%. This is important in the sense that since 1971,
this is one of the best employment status that is going to highlight the development
of the investment in the economy (brenner, 2018).
• Through the innovation of the technology, the UK government is
making sure that the employment is remaining constant and it
continuously increase the development of business in UK that will
increase the employment.

TECHNOLOGICAL FACTORS
• Technological factors is going to highlight the development of
better investment that will bring better rate of employment. In
order to highlight the development of better innovation this will
be looking into the development of the information and will allow
the development of employment (evans et al. 2017)
• Through the innovation of the technological factors the united
kingdom will be looking for the development of better business

LEGAL FACTORS
• The legal factors will be willing with the development of business and will be
looking for the development of laws and regulations and will be highlighting the
importance of better development of economic performances (gretzel et al.
2015)
• Through the implementation of better rules and regulations will be looking for the
development of better economic performances that is present within the united kingdom.
Consumer spending rise is about 0.4% that is reflecting the development of rules and
regulations (kolk, 2016).

ENVIRONMENTAL
FACTORS
• The environmental factors will be looking to innovate the
minimisation of the environmental degradation that will boost of
the economic development (suneja, 2017)
• Through the innovation of better policies and pollution control standards will
be to utilise the development of better accessibility to the production by
maintain the pollution

CONCLUSION
• The study has shown the fact that how the various factors have opined and
contributed to the development of better economic activities that will easily
bring the development of better aspects to the monitoring of the policies.

REFERENCE LIST
• ABDELKAFI, N. AND TÄUSCHER, K., 2016. BUSINESS MODELS FOR SUSTAINABILITY FROM A SYSTEM DYNAMICS
PERSPECTIVE. ORGANIZATION & ENVIRONMENT, 29(1), PP.74-96.
• ANTIKAINEN, M. AND VALKOKARI, K., 2016. A FRAMEWORK FOR SUSTAINABLE CIRCULAR BUSINESS MODEL
INNOVATION. TECHNOLOGY INNOVATION MANAGEMENT REVIEW, 6(7).
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—A GLOBAL BUSINESS ECONOMICS PERSPECTIVE. SUSTAINABILITY, 10(12), P.4428.
• EVANS, S., VLADIMIROVA, D., HOLGADO, M., VAN FOSSEN, K., YANG, M., SILVA, E.A. AND BARLOW, C.Y., 2017.
BUSINESS MODEL INNOVATION FOR SUSTAINABILITY: TOWARDS A UNIFIED PERSPECTIVE FOR CREATION OF
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SMART TOURISM ECOSYSTEMS. COMPUTERS IN HUMAN BEHAVIOR, 50, PP.558-563.
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TO CSR AND SUSTAINABLE DEVELOPMENT. JOURNAL OF WORLD BUSINESS, 51(1), PP.23-34.
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