Internal and External Factors Affecting Zara's Business
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Added on 2023/06/18
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This report analyzes the impact of internal and external factors on Zara's business, including the economy, government policies, employees, culture, competitors, and customers. It also explores the different ways in which Zara can impact the external environment.
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z 1 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 andcompetitorsastheyarethemajorsourceofhowthe 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 environmentwithin 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).Theproductivity 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 majorfactswhichfluctuatesgrowthanddevelopmentofZara (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 variousperspectives 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. REFERENCES Andreini, D. and et.al., 2017. Business model definition and boundaries. InBusiness 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. Factorsaffecting 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 ofCausal Relationships Among the Factors Affecting the Performance of a Service Organization.SAGE Open.11(1).p.2158244021999394. KHOSHBIN, S.R., 2021. Investigating theEffect of the Relationship between Brand Visual Identities,Focus on Employees and Customers and Brand Personality on Organizational Commitment.Journal ofContemporary Issues in Business andGovernment.27(3).pp.1964- 1974. Kopnina, H., 2019. Green-washing or best casepractices? Using circulareconomy and Cradleto Cradle casestudies inbusiness education.Journal ofCleaner Production.219.pp.613-621. CONCLUSION Thus, it is concluded from the above report that internal and external factors affect the business of Zara on large scale. Further, differentways 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 themajor source of how the organization isbeing impacted and vice versa. Differentwaysinwhichorganizationcanimpactonexternal environment There are various ways through which Zara can impact the external environment.HowZaraimpactstheexternalenvironmentis described below – Economy–Zaraimpactstheeconomicscaleashowthe organization works also inculcates that what is the actual position of the organization in market and through this themain thing is how thecompanyisimpactswithitsprocessesandpolicieswith economy on large scale (Kopnina, 2019).This includesrecession, inflation and demand and supply factors. These three are main factors through which Zara impacts external environment. This createswaysthroughwhichallthethingsaretakeninto 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 (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 andchoices of customers towards the products and services which Zara is availing them on large scale and also by competingwith various other competitors in the market structure.