Leadership and Business Environment - Case Study on Zara

Leadership and Business
Environment

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Internal and external factors affecting Zara...........................................................................3
Analysis of internal and external factors affecting Zara........................................................6
Corporate social responsibility of Zara ................................................................................8
Reflection ...........................................................................................10
Conclusion.....................................................................................................................................10
References .....................................................................................................................................11

Introduction
An effective leadership is all about generating organisational environment in which it
engage with the workforce with strategy and vision to enhance the efficiency and growth for the
organisation. A leader plays a vital role in company operations. It succours into achieving the
organisational goals through its abilities and strategies. Moreover they empower the management
as well as accountable that gives outstanding results. By such above effective mentioned skills
gives an competitive advantage to an organisation through their strategic and productive
approaches. In this given report task operational working of Zara is being taken into
consideration (Allam, Scagnelli and Corazza, 2020).
Zara is the most influenced brand in apparel industry. It was founded by Amancio Ortega
in 1975. the mentioned company known for its fast adaption of new fashion trends that shows
their strategic efficiency. In this given report internal and external strategic analysis of mentioned
firm will be performed. Further, evaluation of factors that can influence the company operations
will highlighted. In addition to this a suitable leadership style that can succours the given
company operation along with their CSR process will be evaluated in this given report (Kim and
et. al., 2021).
Main Body
Internal and external factors affecting Zara
The above mentioned tool perform by the mangers of firm to analysis the internal and
external factors that can influence the operational working. Through such analysis company
enhance or modified their strategy to get the competitive advantages as well as efficient working
environment for its operations. The managers of Zara influence their operations through such
conductive tool (Fung and et. al., 2021).
Swot analysis
Strength
 Design Team- Zara mainly know for its
fast and fashionable products. The
given company has large number of
renowned designers that transforms
products according to customer desire.
Weakness
 Fast fashion- The fast adoption of
products that gives Zara an competitive
advantage were also arise the problem
of sustainable approach in its
operations. Zara major weakness is to

Company launches numbers of new
designed products every year that
reflects their core strength of customer
acquisitions through their designing
products.
 Physical evidence- The service of Zara
stores has a strong physical evidence
over their customers. Their systematic
product allocation as well as store
space provides the ease to customers to
walk freely into the store while
selecting the design (Collinson and et.
al., 2020).
balancing the sustainability with its fast
fashion approach that arises threat for
its operation.
 Reliance on stores- The mentioned
company sales mainly opted through
physical stores. Due to pandemic they
limit their number of stores that leads to
climb out the massive drop in sales.
Moreover even with their online sales
were not able to matched their targeted
goal (Lee and et. al., 2018).
Opportunity
 Market expansion- According to their
previous operations it is clearly stated
that Zara business got the potential
increment in its profits whenever they
emerge to new location. In instance the
mentioned company have the
opportunity to expand its appearance to
emerging locations where people can
spend over mid range price product.
 Rapid delivery cycle- Customers of
Zara mainly visit to its stores on an
average of 17 times in a year. It is
because of mentioned company fast
respond to the fashion trends. They
deliver the trend in 2 to 3 weeks in its
stores. However in future company
have the opportunity to reduce such
Threat
 Competition- Zara has the number of
competitors in the market like H&M,
mango and many more that offers
quality design products to its customer.
These competitors uses several strategy
such as pricing strategy to break and
hold the customers. So it can lead to be
a threat for Zara
 Reach- Zara operates its function
through its stores and website only. The
lack of shop in shop stores shows
company limited reach whereas other
competitors are getting the advantage
of such resources in their sales volume.