Strategic change and global environment

Strategic change and global environment

Strategic environment
Table of Contents
Introduction.................................................................................................................................................1
MICRO environmental framework..............................................................................................................1
SWOT ANALYSIS OF ZARA...............................................................................................................1
STRENGTHS......................................................................................................................................1
Weakness.............................................................................................................................................3
Opportunities.......................................................................................................................................3
Threats.................................................................................................................................................4
Macro environment.....................................................................................................................................5
PESTLE ANALYSIS..............................................................................................................................5
Political factor.....................................................................................................................................5
Economic factor...................................................................................................................................5
Social factor.........................................................................................................................................6
Technological factor............................................................................................................................6
Environmental factor...........................................................................................................................7
PORTER FIVE FORCE MODEL...........................................................................................................7
Drift and Modification in the overall operations..........................................................................................8
Improvement in the operations..................................................................................................................10
How Zara was back to track......................................................................................................................10
Change model ( Lewin Model ).................................................................................................................10
Recommendations.....................................................................................................................................11
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12
Appendices................................................................................................................................................15
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Strategic environment
Introduction
Zara is one of the biggest Spanish fast fashion retailer based company in Galicia. The
company was established in 1975 by Amancio Ortega and Rosalia Mera. The company is the
main brand in relation to the inditex group. It is one of the largest apparel retailer companies on
the global platform. So, in this paper the discussion will be made on the overall internal and
external factors which can help to evaluate the overall environment. In the next phase of the
report the discussion will be made on the strategic change by considering the change
management model related to Lewin model. It helps to evaluate the role of the organizational
culture in the overall process. So, the tools which will be used for the report are Pestle analysis,
SWOT Analysis and Porter 5 force model. The main emphasis will be on the improvement and
modification which is considered by the company so that the activities can be on the right track.
MICRO environmental framework
SWOT ANALYSIS OF ZARA
STRENGTHS
a.) Strong control overall the entire supply chain
It is analyzed that company has a strong control overall the supply chain as the stores
of the company are in 88 countries. Like in United States, Europe, Asia and Middle East
(Presley & Meade, 2018). The company emphasizes on in house production in the
factories near headquarter. The company emphasizes on managing the overall supply
chain by considering the factors related to raw material selection, production and
distribution. The picture describes the entire process of the supply chain process of the
company (Caro & Martínez-de-Albéniz, 2015).
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Strategic environment
(Source: randall, Crandall & Chen, 2014).
The supply chain of the company help to attain the competitive advantage as it handles
the overall rivals in the competitive market.
b.) The next strength of the company is related with Adroit design strategy in which
the main focus of the company is to use the media so that it can be easy to promote the
season trend in the market. The company focuses on maintaining the supply chain which
manages the overall fast changing taste of the customers (Hill, Jones & Schilling, 2014).
It introduces the new clothing models within the few weeks. The recent designs are
considered by the company so that demand can be boosted. The company focuses on
delivering the new products twice each week in the store and there are more than 10,000
new designs introduced by the company every year (Christiansen, 2014). Zara offers
latest designs and trends in the market and the maximum time limit is of 2 weeks. So,
after 2 weeks, the products are on the decline stage. After that the company introduces
new designs and styles in the market which are on the introduction stage. Like new
handbag with unique design introduced in the market which will be on the introduction
stage.
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