SWOT and PESTEL Analysis of Zara: Leadership Style and CSR Process

Context of business

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
SWOT AND PESTEL................................................................................................................3
Change in PESTEL factor that influenced the opportunities and threats....................................5
Recommendation of Leadership style in organization................................................................5
Corporate Social Responsibilities process in Zara......................................................................6
Reflection....................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business which is defined as an organization or enterprising the entity engaged in
industrial, commercial, or some professional activities. Business that can be having non-profit
and profits entities organization. While this report explain about the SWOT and PESTEL
analysis for the selected business along with this evaluate about how the changes in PESTEL
factor must be influenced with opportunities and threats business. As well as how the business is
being addressing their strengths to negate the threats and weakness which are affecting their
opportunities. Moreover, recommendation of suitable leadership style which help the
organization for achieving the business objective. Also, evaluate the corporate social
responsibilities of the selected organization. At last, discuss the project reflection, that help for
gaining knowledge.
MAIN BODY
SWOT AND PESTEL
SWOT a analytical tool which is used to examine the internal environment of the
business, it generally gives the identification about the company's framework, so that they will
be able to make the improvement for better result.
STRENGTH: It shows in what areas organization excels that makes them different from their
competition. For the Zara organization they are the leading fashion industry, their commitment is
to revamp their fashion collection for every two weeks, which makes them unique. Company has
the strong management strategies to run their effectual supply chain. They have the trained
designer staff who are capable of fulfilling the desire of the customer by transforming their needs
in a specific fashion design.
WEAKNESS: Weakness are those which stops the organization to achieve their goals. For Zara
there weakness is for the fast fashion they have pressure to meet the sustainability through the
fast fashion which is very challenging (Vlados and Chatzinikolaou, 2019). Also, pandemic
covid-19 limits their range of the physical stores.
OPPORTUNITY: These are the supportive external factors which gives the advantage to
businesses to rise their revenues. For Zara they are good in fast delivery cycle, they adapt the
latest things fast which give their customer varieties of option, along with the use of AI

technology which allows the company to easily analyse the data or to give real time problem
solution to the customer.
THREAT: It can majorly seen by the competitive environment of the organisation . As for the
Zara other fashion company like Shein is the biggest threat, for that company also required to
focus on their services along with products.
PESTEL
It is used to analyse the macro environment of the business.
Political: External factors are political policies, foreign trade aspects and the internal element
can be tax policies. For the Zara they are the European company so there is no border restriction
for them, EU's policies are extremely beneficial for them. Therefore there is no political threat
for company.
Economical: It involves the interest, inflation rate or other factors as unemployment,
globalisation aspect. For the Zara they have the cheap labour cost is available in their own
country, therefore they do not outsources their production so no major impact of changing in
interest or inflation rate.
Social: Societal norms, age, gender, cultural aspects are listed in this factor. As cultural reason
always impacts the industry, for Zara they always proceed to launch their product which are
designed according to the local and cultural trend. Social factor impact majorly on company's
business.
Technological: Technologies like Big data, IOT, AI are the trending technology which is
anticipating the whole market (Fosher, 2018). Zara has both money and other resources so that
they can proceed to use new technological trend for good revenues.
Environmental: Sutainablity, Eco-friendly, Carbon footprints, pollutants etc. for Zara It is
challenging for them to meet the sustainability through their products, therefore for that Zara
company is public ally committed to provide their product which meets the environmental
factors.
Legal: It involves the health and safety aspects, promotional standards, consumer rights. As for
the Zara they have laid down various legal policies for the staff and labour earnings, but for the
implementation, critics identifies various contradictions in their commitments. They also had a