Internal and External Factors Affecting Business of Zara

This report analyzes the internal and external factors affecting the business of Zara. It discusses the impact of employees, culture, and processes on the organization. It also evaluates the impact of the economy, government policies, customers, and competitors on Zara. The report further explores the different ways in which Zara impacts the external environment.

Business in Practice

INTRODUCTION
Business is defined as how the company or the organization which
is engaged in some professional activity on large scale in a significant
manner (Andreini and et.al., 2017).
The report will analyze the internal and external factors that will
affect the business of Zara on large scale. Further, different ways will be
analyzed through which Zara impacts the external environment. And in this
the main aspects will be analyzed which will include the government
policies, economy and the customers and competitors as they are the major
source of how the organization will be impacted and vice versa.

Internal and external factors affects the organization
The internal and external factors affecting Zara is evaluated on the aspects that how the
organization works on large scale. There are both internal and external factors in this
aspect. The internal factors are described as –
Employees – Employees are major factor which affects organization which is Zara.
When employees in organization perform better and deliver significant results then
company is also able to contribute along with other processes (Ibrahim and et.al.,
2017).
Culture – The culture creates environment within organization which affects working
patterns and cultures where employees are. Culture of Zara impacts whole organization
as well as employees as this initiates whole process and working environment.
Process – Process of Zara is affects organization as there are various changes taking
place on within organization (Al Mamun and et.al., 2017). The productivity through
which business is being observed helps company in knowing how Zara is being
affected.

The external factors are described as –
 Economy – Economy affects organization in many ways which includes –
demand and supply, inflation and recession etc. These are major facts which
fluctuates growth and development of Zara (Sharma and et.al., 2021). The
business which Zara is developing along years has been impacted by economy
at very large scale.
 Government Policy – There are various government policies which are being
set by government and this is impacting Zara and it process of working and
growing in business environment. Along with this, due to changes in
government policies, company also has to follow policies.
 Competitors and Customers – Competitors and the customers have impacted
Zara on large scale through which it is analyzed that there are various
perspectives of customers in market and competitors also give tough
competition to Zara (KHOSHBIN, 2021). This makes whole of competition
and customer scale analyze and evaluate.

Different ways in which organization can impact on external environment
There are various ways through which Zara can impact the
external environment and this constitutes – economy, government policy
and competitors and customers which are there in the external business
environment. How Zara impacts the external environment is described
below –
 Economy – Zara impacts the economic scale as how the organization
works also inculcates that what is the actual position of the organization in
market and through this the main thing is how the company is impacts with
its processes and policies with economy on large scale (Kopnina, 2019).
This includes recession, inflation and demand and supply factors. These
three are main factors through which Zara impacts external environment.
This creates ways through which all the things are taken into consideration.

 Government Policy – Due to the changes which Zara takes into
consideration, the external environment is being impacted due to the
changes which are being observed on large scale. Government policies play
major role in the business environment and through this the main aim of the
company is taken into account which initiates the impact of how Zara’s
process impacts the external environment and specially the government
policy on large scale. Thus, Zara affects the government policies in external
environment (Keshavarzpour and et.al., 2019).
 Competitors and Customers – Zara impacts the these two important
external environment factors which are the competitors and the customers
in which the customers and the competitors are denoting their important
part in which they play the major role of how the company is taking into
account the competition and perspectives and choices of customers towards
the products and services which Zara is availing them on large scale and
also by competing with various other competitors in the market structure.

CONCLUSION
Thus, it is concluded from the above report that internal and
external factors affect the business of Zara on large scale. Further, different
ways were analyzed through which Zara impacts the external environment.
And in this the main aspects which were analyzed included the government
policies, economy and the customers and competitors which were the major
source of how the organization is being impacted and vice versa.

REFERENCES
Books and journals
Andreini, D. and et.al., 2017. Business model definition and boundaries. In Business
Model Innovation (pp. 25-53). Springer, Cham.
Ibrahim, R. and et.al., 2017. Organizational culture and development: Testing the
structural path of factors affecting employees’ work performance in an
organization. Asia Pacific Management Review.22(2).pp.104-111.
Al Mamun, C.A. and et.al., 2017. Factors affecting employee turnover and sound
retention strategies in business organization: A conceptual view. Problems and
Perspectives in Management, (15, Iss. 1).pp.63-71.
Sharma, G. and et.al., 2021. An Analysis of Causal Relationships Among the Factors
Affecting the Performance of a Service Organization. SAGE
Open.11(1).p.2158244021999394.

 KHOSHBIN, S.R., 2021. Investigating the Effect of the Relationship
between Brand Visual Identities, Focus on Employees and Customers and
Brand Personality on Organizational Commitment. Journal of
Contemporary Issues in Business and Government.27(3).pp.1964-1974.
 Kopnina, H., 2019. Green-washing or best case practices? Using circular
economy and Cradle to Cradle case studies in business education. Journal
of Cleaner Production.219.pp.613-621.
 Keshavarzpour, M. and et.al., 2019. The Role of Psychological Needs and
Types of Branding Behaviors on Brand Identification by the Customer
(Case study: Zara brand customers).