PESTEL Analysis, Leadership Style, and CSR of ZARA in the Fashion Industry

Context of business

Contents
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Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Analyses by PESTEL factors.......................................................................................................1
Appropriate Leadership Style......................................................................................................2
Evaluation of Corporate Social Responsibility............................................................................4
Impact of Brexit and Covid over business...................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business of fashion industry is keen to be influenced from what goes around it. Business
strategies should reflect its determination for sustaining in market and achieving goals set by it
(Lin, 2021). Present report will be dealing with one such company of fashion industry named
ZARA. It is Spanish origin brand with successful business retailing and having overreaching
impact across globe. It manages about 20 collections of clothing in a year with varied products
having shoes, beauty, swimwear, accessories, close, etc.
The report highlights use of PESTLE analysis to analyse impacts of external environment on
company, leadership style used in the establishment and corporate social responsibilities. It also
includes effects of Brexit and Covid-19 on the company.
MAIN BODY
Analyses by PESTEL factors
External environment refer to outer events and conditions which have impact over
operations of business. Goals of business when changes are reflection of how external
environment of business changes. To analyse external environment, business managers uses
PESTLE analysis which is a framework that guides in scanning changes pertaining in external
business environment of company. Within ZARA, use of PESTLE analysis helps managers in
gaining information about directions of company, growth targets and many more. Factors of
PESTLE Analysis in relevance to ZARA are as follows:
Factors Political in nature: Political condition of UK has profound impact over business
of ZARA. It was formed within European Union and now operates all over globe successfully.
political framework of country is such that policies of importing raw materials and exporting
finished goods is implemented properly (Crowr and Seifi, 2018). There are any political
disruptions in country, business of ZARA is also influenced being part of economic system. It
includes changes in financial structures too. Political framework of the country is highly
influential factor for business operations and enterprise has to look into them with utmost care to
make and carry forward the policies.
Factors Environmental in nature: Customers these days are more oriented for purchase
of eco-friendly goods. In UK, environment concerns are rising and transforming market
approaches into sustainable ones. They bring big brands under scrutiny and only buy ones which
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