Contemporary Business Environment: Analysis of ZARA

This report analyses ZARA's legal structure, purpose of business, company vision, mission, key stakeholders, and post-COVID challenges. It also discusses the impact of the internet of things on organizational structure, decision making, and operations. Additionally, it explains macroeconomic influences and challenges posed to leadership by contemporary global business models.

Contemporary
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Introduce selected company by analysing the legal structure, purpose of business, company
vision,mission and key environmental pressure and post covid challenges, key stakeholders
and illustrate how will apply the stakeholder mapping in company liability. .......................1
Global impact of internet things on organisational structure, decision making, operations and
manner of working in company. Discuss role and effect of the digitalisation on company
structure, practices and activity. ............................................................................................3
Analyse the internal and competitive environments and aslo Explain macroeconomics
influences currently affecting chosen organisation, including the supply and demand,
‘economic problem’, market structures, measures of macroeconomic activity, circular flow of
income, fiscal and monetary policies. ...................................................................................4
Challenges posed to leadership by the contemporary global business models and assessing
importance of control in an effective organisational performance. Explain importance of
strategic management Justify the answer and provide recommendations for improvement.5
How organisations, management and the business environment interrelate..........................6
CONCLUSION................................................................................................................................7
References:.......................................................................................................................................7

INTRODUCTION
Business environment Is the most important factor of any business. The forces which
constitute in business environment are its providers, competitors, media, governing bodies,
buyers and economic conditions, capitalist and aggregate other institute working
externally(Bitkowska, 2019) . Business environment has a huge competitive market which keeps
modifying quickly and director of such businesses should be able or suitable to determine the
development and needs that is required to be done in a business to catch all the quick response
of their enterprises. Company considered in this project report is ZARA, it is a Spanish retailer
based in Spain. It was founded in 1975 by Amancio Ortega and Rosalia Mera. The company
deals in clothing, accessories, shoes, swimwear and many other. This company offer goods in
global country. This report will cover the determination of legal structure, purpose of business,
objectives of company. Further it will cover the global impact of organisational structure and
decision making. After it will explain challenges posed to leadership by the contemporary
business models.
MAIN BODY
Introduce selected company by analysing the legal structure, purpose of business, company
vision,mission and key environmental pressure and post covid challenges, key
stakeholders and illustrate how will apply the stakeholder mapping in company liability.
Zara is a retail industry which deals in clothing, wearable, and fashion accessories. The
brand is treated as a luxury product in global market. It is fashion statement. They have men and
women as well as kids wear. All the clothing were processed in Spain through supply centre.
New goods are inspected, sorted, tagged and loaded into transport. In many conditions. The
clothing is provided within 48 hours. Company produces over 450 million goods per year.
 Legal structure of company - It is an international fashion company. It manufacture
high class ladies fashion. Company has its own labels for its product. It is an international
company operating globally. The company works as sole trade in international market.
 Purpose of company - The main aim of the company is to provide quality goods to the
customer and provide services in international market. They want to work as a premium
brand and desire to treated as a luxury brand in worldwide.
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 Mission of company - The Zara, mission statement is to provide customer what they
want, and get it to them quick then others. This provides a great brand image to the
trade in an international market.
 vision of company – The zara, vision statement is to support to the sustainable
development of society and that of the surroundings with which they communicate. This
reflects for long terms statement as well as what position they want in up coming years.
 Objectives -
Zara is committed to satisfying the demand of the buyers. As an outcome, they commits to
regular creative their business to develop customer experience. They promise to give new
design from quality material that are reasonable(Spinello,2019).
Key environmental pressure -
With the tag line “working towards sustainability” Zara spotlights in big letters some of
its most important operations just as, politically furnish events collected social and
environmental sustainability along with that health and security of its goods. Clothes labelled
with John life are generated apply process and raw material that assisted reducing surrounding
effect. The company is now aims that half of their goods will reach the John life benchmark by
2022. Its bags, boxes and alarms are reused and recycled at the end of their valuable life. Bags
that is provided to customers are totally produced by recycled paper.
Post covid challenges -
Key stakeholders of Zara -
The company have different kinds of stakeholders that impacts Zara, are the owners,
employees, customers, providers, governing bodies and the investors. All these bodies play a
vital role in business. In order to fulfil the needs and wants of these bodies company invest huge
amount every week. To offer them with an excellent quality goods so that they can be a loyal for
brand and be with the company for long term. Quality goods and designer clothes, company
operates with a huge amount of designers and providers.
Stakeholder mapping in company -
 classification – In this, industry discuss with group regarding how much attract and
involvement a particular has for company goods and tasks. Moreover, Zara required to
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utilise target queries for advising and assisting in determining participation and attract
stakeholders in company assignments.
 Brainstorm – In this, Zara required to analyse their all stakeholder and their units can
think of on a sticky note. They must ask with themselves queries link to company in
order to help industry in discussion on the sortable stakeholder.
 Populate - in this stage, company outlines a sticky notes on accurate quadrant on their
stakeholders map.
 Cross check - Here, Zara communicate with members and consider if any stocy
requirements to reach to other place rather discuss and look out if they are missing any
stakeholder.
Global impact of internet things on organisational structure, decision making, operations and
manner of working in company. Discuss role and effect of the digitalisation on company
structure, practices and activity.
Internet of things has cause a modification in trade world, it effects everything in
business form logistics to the bandwidth and data storage to the fecundity efficiencies. Internet of
sources effect the business structure, activity and policies in different ways.
 This technology has huge capability to progress to a point where the clothing can change
any factor of the wearable they are buying. Outlets will be able to custom made for the
consumer. Stores will be able to to install smart mirrors which gives the consumer virtual
try on services and also creates change in design, colour, size, pattern and length earlier
they finalised product. The technology also assist the buyers in designing and improving
designer pieces that are one of a type and which stand out in gang.
 This assist in making things easier for company like Zara to create their activity and
operations cost effective as now they can reduce their production and operations cost by
utilising various tools of the advance technology.
 Execute internet things as a base practices helps the business straight resources towards
the security upgrades and training as well as the disaster planning or betterment. This
permits the company to evolve the company security policy for employees and whole
business.
Role of the smart technology on business -
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 Advance technology assists the company to be more aware to the alteration in business
values, customize goods and feedbacks with the client on personal level. It also
streamline and process all the goods so that workers can concentrate on those sources
which matter in company. It has raised existence of all business just as Zara, in
community and also it spreads awareness and raises goodwill in surroundings, hence, it
becomes backbone of any industry.
 It gather details at clouds storage to business friendly readable digital structure. This
considers integration of new technology and previous skills. There are different
advantages overhead value deduction by clearing around 85 % as well as develops the
feedbacks turnaround times(Oltarzhevskyi, 2019).
 This aids the company in developing efficiency and also create the technology capability.
It has declined the operational value and human mistakes because of decreasing
requirements of human resources.
Effect of digitalisation on business activity,structure and strategy -
 It leads in quick shift away from the order to manage and a matrix system towards
network business. Company that recognise informational networking which
moves them are a great position. This network cam use to implement and develop
rapidly.
 It effects the company as digitalization to create its easy for a company to share
their data or details and recognise the pattern in a huge amount of the details. It
might effect base process and system of a company from logistics and
distribution network process to user to buyers view and capital.
 This assists the company to plan a long term policy with a quick digital
transformation taking place in their relevant company and marketplace, all the
concern requires to have cleat policy in place of how they will adopt to a quick
digitalizing place.
Analyse the internal and competitive environments and aslo Explain macroeconomics influences
currently affecting chosen organisation, including the supply and demand, ‘economic
problem’, market structures, measures of macroeconomic activity, circular flow of
income, fiscal and monetary policies.
Swot analysis
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Strength
1. Zara serves services in global world , they
have a strong presence in world.
2. Strong presence on online websites and e
commerce sites makes a popular brand name in
marketplace.
3. Company provides quality and well
designed clothes to their customers.
Weakness
1. Company promotes limited marketing and
advertising in comparison of other brand.
2. Zara is perceived as an expensive brand in
comparison of other brands.
3. Huge rivalry for zara means limited market
share and high brand switching.
Opportunity
1. The company can enter into the new market
segment where they are not serving services.
2. Promoting goods through online sources and
through internet can raise brand value.
3. Constant upgradation of design's and
patterns can increase the business in
marketplace.
Threat
1. The high end fashion selling can be a major
threat for them.
2. Changing governing policies can be a big
threat for company.
3. Changing trends and consumer preference
can be a big threat for company.
Impact of some microeconomics theories on company.
 Supply and demand - It is highly influence revenue system of an organization that have
assets when demand for a particular products of Zara raises then their no change in its
supply , it will tend towards an raised cost and quantity.
 Economic issues - It is major issues of company which effects demand and value as well
as profits . most influence factor of the economy is unemployment, that reduces
impressive demand for different goods and its adversely effect the wants needed in
business.
 Measures of macroeconomics activity - It includes some steps of the macroeconomics
performance considering inflation, GDP growth, underemployed, BOP and some other.
This modifies in all these operations. Every business like zara can impact in some
performance and by the economic policy or rules structured by the administrative
bodies.
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 Fiscal and monetary policies - Zara is affected by the deficit capitalist as it signifies a
low tax charges that states particular have less amount to pay and have higher disposal
income. It may tend to users purchasing more when they buy from the Zara and it effects
consider company via raised income and sales.
 Market structure- It analysis that in market a business can acquire at a less value and
which users are involved in company's goods. In relation to Zara, its major advantages is
that business can secure their funds by analyzing selling place system and concentrate on
a simple availability in market.
 Circular flow of income- It presents transaction of the capital from an economic activity
among household and company. Household retains a money from their given services
and utilize this funds to buy sources of the industry.
Challenges posed to leadership by the contemporary global business models and assessing
importance of control in an effective organizational performance. Explain importance of
strategic management Justify the answer and provide recommendations for improvement.
Challenges in leadership -
 Guiding changes- issues of diversification , analysis , controlling and leading the
modification states that being an impressive mentors, it is not so simple. It needs a
cognition regarding how to integrate the situations , success over instance to the alteration
and how to communicate with the group persons actions to the alteration at organization.
 Managing stakeholder- any other issues in leading is to control administration,
connection and pictures within operations surroundings. It considers adding of the
management contribute , influencing some others , managing any others units, sections
and particulars.
 Leading a team- This obstacles is linked to the units improvement , team construction
and units management. Individuals leadership problems connected to it consider how to
give a contribution, as well as teach about how to teach and lead a team in manage a
business in an effective manners.
Significance of management in effective organizational performance -
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 Control assist in justifying the company objectives so that employees and sources are
concentrate on structure impressively . In context of to Zara, manage security against any
kind of sources misapplication and serve a appropriate steps.
 Organization like Zara requires are lawsuits wants to have an effective management in
regards to secure their investors and impressive management aids consider company in
growing capital through inventory or liability issuance .
 Management have different benefits , considering developed communication, raised
operations, financial stability and efficiency, assist the company Zara to reach their yearly
aims, developed values , quality management and mistakes or fraud securing.
Importance of strategic management -
 It include planning and execution of policies in regards to assure a long term creative
achievements and increment a company by saving risk from the another rivalry.
 Strategic management also ensures that employees operates in a similarity for assorting
an achievement of the industry aims and determines possibility for company , for
enchaining via learning or development(Papadakis and et., al., 2020).
Recommendation -
There are some recommendations for Zara to cope up from leadership challenges ad
develop strategic management -
 It is suggested that to cope up from issues of leading, a leaders must planning
intelligently to go a long way. They must not believe on an individual plan, for them it is
good to have plan B than to crib again.
 It is advice that to win over leadership issues company must motivate an open
communication among all the team members.
 It is suggested to business that in regards to develop strategic management they must
structured their progress and define the decision making situation impressively. They
must concentrate on the raising growth possibility along with addressing the plan issue
and then implement their plan impressively(Jelonek and et., al., 2019).
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How organisations, management and the business environment interrelate
Environment of business has the greater level of impact on the organisational
management and functioning as well. It basically offers different kinds of opportunities, threats
along with pressure or limitation which influences the structure and functioning of a business.
The relationship management of business basically promotes the positive and productive
relationship between the partners and company of a business(Shariff, 2018). It seeks to establish
the boundaries and also build the trust as well. In context to Zara company, there are certain
factors which are interrelated with each other which includes management, environment and
business. It basically defined into the following manner:
 Under head of business accountability it is considered as the assurance that an
organisation evaluate on their performance and behaviour which is related to something
for which they are liable. The accountability factor lead towards the successful
management as the higher level of accountability build trust within the organisation.
When there is confidence level that a leader takes all the responsibilities for their
decision-making then their confidence level automatically get enhanced within the team.
 The basic function of Zara organisation is that there is internal and external conversion
which has been carried out through the active interaction with the environment. It
basically receives inputs from the environment and further it converted into output by the
support of productive facilities which has been received from the environment and send
back to the environment as well.
 Within the globalised economy it has been observed that the organisation has to
specialise and to enhance the level of research and development and focuses on the
output and innovation factor into positive terms. It basically made easy for the business to
initiate with the old incumbents for the new business. It is into this context of globalised
economy, organisation and environment are interrelated with each other.
 Within the business environment it is important to have the ethical decision making
where it is important to maintain the ethical practice where it is the organisation
responsibility to undertake such decision making in its management which can enhance
the brand value of the organisation(Exchange, 2019).
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 Management and environment are related with each other as their main objective is to
improve the human life quality. This include mobilisation of the resources and utilisation
of the government for administering utilisation of both the economic and natural goods
and services this is based on ecology's principles .
So in the overall manner, it has been observed that there is a proper inter relationship
among management, organisation and business environment. Without having interrelationship it
becomes very difficult to maintain a coordination level from the organisation point of view.
That's why the every factor which is related to this parameter has their own significance which
makes a great impact on the performance level of the organisation. That's why its very important
to understand this inter relationship so that accordingly decision can be taken for it.
CONCLUSION
It is concluded from the above report that business are facing different challenges after
pandemic and practising to cope up from these issues, as well as industry have to satisfy its
stakeholder requirements. In business world, internet and smart technology has hugely effected
the organisational structure, operation and policy as it has totally modified the manner of
performing a business. Different macroeconomics components reflect the business positively
and negatively in relation of demands and supply, inflation rate and various others. It is
discussed in above report that business is required to adapt a new technology and other details
that is being impact the business and industry positively.
References:
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