Strategic Planning for Zara: Vision, Mission, Stakeholder Analysis, and External Factors

STRATEGIC
PLANNING

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
Organizational Vision, Mission, Strategy and their relationship......................................................3
External factors and their impact on organization and how changes can affect organizational
strategy.............................................................................................................................................4
Analysis of how stakeholder expectation can influence organization..............................................5
TASK 2.................................................................................................................................................6
Mission and vision statement of organization..................................................................................6
Impact of vision and mission on its strategy....................................................................................6
How external factors influence organizational strategy...................................................................7
TASK 3.................................................................................................................................................7
Covered in PPT................................................................................................................................7
TASK 4.................................................................................................................................................7
Strategy options for chosen business, using modelling tools...........................................................7
Reviewing potential strategy options...............................................................................................8
Evaluation of options for delivering strategic direction of organization..........................................8
TASK 5.................................................................................................................................................8
Structure of plan...............................................................................................................................8
Stakeholder involvement..................................................................................................................9
Dissemination process......................................................................................................................9
Monitoring systems to ensure successful implementation of strategic plan..................................10
Strategic plan..................................................................................................................................10
CONCLUSION..................................................................................................................................10
REFERENCES...................................................................................................................................12

INTRODUCTION
Strategic planning is the process which helps an organisation in determining their vision for
the future growth of can organisation through which they can meet organizational objectives. The
process of strategic planning is based on developing vision and objectives which can be helpful in
reaching to the vision of an organization. Strategic planning is the process of documenting and
creating a direction for business through which an organisation can meet their objectives (Strategic
planning, 2021). The process of strategic planning outlines decisions and approaches which will be
followed by an organization in order to meet organizational objective. Zara is a multinational retail
brand which was started by Amancio Ortega and Rosalia Mera in 1975. This international clothing
brand is offering fast fashion products which includes- clothing, accessories, shoes, beauty,
swimwear an perfumes range of products. The company is operating with more than 2270 stores all
around the globe. The parent company of Zara is Inditex under which he brand operates. This report
will discuss the concepts of strategic planning in relation to the selected organization and will
outline information classified under various sections. The first section will outline the vision,
mission and objectives and how these factors relate to each other. This section will also discuss
about the factors which can influence business strategy. The next section will discuss options related
to mission and vision statement of the company and will also outline how such factors create an
impact on the organizational strategy.
TASK 1
Organizational Vision, Mission, Strategy and their relationship
Organizational Vision- The vision statement of an organization defines what organisation
needs to achieve in the future. In other words, organizational vision is the goal of a business in
achieving the milestone an organisation wants to accomplish. A vision statement of an organisation
can involve long term objective and outline the standards and objectives which needs to be achieved
in near future. Therefore, a vision statement of an organisation reflects what needs to be achieved in
near future.
Mission- The mission of an organisation defines what needs to be done in order to achieve
the vision of an organization. The purpose is the mission of an organization and this reflects the
values and goals of an organization (What is an organizational mission, 2021). Therefore, a mission
statement is helpful in directing actions of an organization which will be helpful in meeting the
planned vision of business.
Strategy- Organizational strategy is the sum of actions which needs to be taken in order to
accomplish long term objectives of an organization. The elements of organizational strategy,

involves- people, resources, facilities and equipment’s (Organization strategy 2019). The actions
which will be helpful in achieving the organizational objectives are the parts of strategic plans. The
strategy of an organization is based on the mission of the company which needs to be accomplished.
The purpose of strategic planning is to align the mission and vision of company. Mission is
the initial stage whereas vision is the last destination which needs to be accomplished. The vision,
mission and strategy are lined as by defining the vision of an organization. A business. can form
their mission statements which will be reflecting the objectives of business. Therefore, strategy is
based on outlining the mission and vision statement through which whole organization can
collectively work for the accomplishment of organizational objectives.
External factors and their impact on organization and how changes can affect organizational
strategy
The external business environment comprises of various factors, such as- political, social,
economic, technological, environmental and legal factors which creates an impact on the operations
and strategy of an organization. In order to evaluate the change due to external business
environment, PESETEL analysis is used. The external factors and change can create an impact on
business and its strategy, a detailed study of external forces of Zara which can influence is further
discussed below with PESTEL analysis:
Political factors- These external forces involve- policies, leadership, tax policies and
regulations create an impact on the business operations and strategy. In context of Zara, the political
factors, such as- trade agreements are responsible for importing raw material and exporting finished
goods through and any change in such factors can create a direct impact on the import and export
strategy of business (Zara PESTEL analysis, 2019). The most common political factors which
creates an impact on the business are financial regulations of the company which affects the strategy
of business.
Economic factors- These factors involve economic growth, inflation rate, interest rate,
unemployment rate, disposable income is some of the external factors which can bring change in
the organization. In context of Zara, the economic factors, such as- low cost of labour can be an
advantage which can be gained by the company which is an outcome of unemployment. This factor
can lead to decline in purchasing power of customers. Whereas, the incline in economic activity can
support Zara in their business growth and expansion successfully. The economic factor, such as-
incline in labour and overall production cost can make business face huge stress. The change in
external forces, such as- disposable income is responsible to bringing change in the organization
through which the company needs to reconstruct their strategy and operations of business.
Social factors- The social factors involve demographic trends, consumer attitudes,
consumer buying patterns, cultural factors, labour cost are some of the social factors which can