Examining SWOT and PESTLE analysis, evaluating leadership style and CSR of Zara

Context of Business

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Examining SWOT and PESTLE analysis...................................................................................3
Evaluating the impact of changes in SWOT and PESTLE on Zara............................................5
Presenting the best leadership style to achieve business objectives...........................................6
Critically analysing the corporate social responsibility of the firm............................................8
Writing a reflection report on the bases of experience...............................................................9
REFERENCES..............................................................................................................................12

INTRODUCTION.
Business environment is very essential to understand all the factors that are directly or
indirectly affecting the business during any specific period. The present report is based on Zara
that is global leader in fashion and sells variety of goods that ranges from clothes, shoes, beauty,
perfumes etc. Further, the report will analysis the micro and macro factors of the business that
impact the business in conducting various activities across various regions. Moreover, the study
will analyse how changes in these factors have influences the opportunities and threats of the
quoted firm while developing various business policies and organization structure. Furthermore,
the best suitable leadership style using the Daniel Golemans model of leadership will also be
discussed so that the Zara could meet the target objectives in the most effective manner. Also,
importance of corporate social responsibilities in making any future decisions and the current
practices for the same will also be analysed in detail. Lastly, the report will discuss personal
reflection on the overall knowledge gained during the research.
MAIN BODY.
Examining SWOT and PESTLE analysis.
Zara is Spanish retailer based company that is most popular among the large number of
social groups in the world. The brand is also known for selling all the premium products that are
different from the competitors. The following is the SWOT for the company:
Strength
 It is specialized in selling variety of
trendy and unique designs clothes that
are available for large number of
people (Belas and et.al., 2019)
 It has the strong brand value all over
the world in terms of business and
innovative design.
 Company enjoys low costs and higher
profits because of its trendy image that
it rarely advertise most of the products
Weakness
 It has the generalized collection that
does not focus on one category of
products unlike other competitors that
is specialized in one category.
 There is inadequate advertising due to
which it is not able to benefits from
earning double profits from more
customers (Barr and et.al., 2018)
 Firm also does have low safety stock
margin due to which it is not able to

that saves the overall advertising costs. cater the needs of the customers when
demand is very high.
Opportunities
 It can benefit from expanding the
online presence that would hike the
sales of the firm.
 It needs to keep a close eye on the
emerging markets that would make the
firm more profitable in the future.
 To increase loyalty the firm need to
focus on developing more of
environmental friendly products so that
growing need would be met easily.
Threats
 High level of competition in the market
might lead to decreased in overall sales.
 Currency fluctuations in any country
might also affect prices of the brand.
 New product and substitute in the
market at the low cost might also affect
the operations of the company(World
Bank, 2017).
PESTLE Analysis:
Political factors:
Various factors that includes tariff rates, tax rate, political instability affect the sales of
the business. This might in turn negative for the company operations as in any country if political
environment is unstabler than it would be difficult for the Zara to conveniently run the overall
business (Miftari, 2018). Moreover, costs and profits would be highly impacted as tax rates
would also be increased to higher level. Thus, the firm need to closely look into these factors so
that products could be sold into effective manner.
Economic factors:
Factors such as unemployment rate, new reforms, import export restrictions etc. need to
be addressed in proper manner. Also, new Brexit reforms in the country has also impacted
largely on the fashion. Further, this has led to drop in sales of most of the business as it does not
allow free trade between countries. Moreover, rising costs in various raw materials has also
impacted the quoted firm that has lead to decrease in the revenue of the firm.
Social factors :
With the changing trends and fashion in clothing industry people are more concern in
purchasing products that ensures sustainability. Hence, this might be negative for quoted firm as