Global Business Environment: Zara's Benefits and Drawbacks Analysis

This report provides a comprehensive analysis of Zara's global business environment. It begins with an introduction outlining the concept of globalization and Zara's background as a leading fast-fashion retailer. The report explores the rationale and significance of studying Zara's international expansion, setting aims, objectives, and research questions. A Gantt chart is included to illustrate project scheduling. The literature review examines the concept of globalization, its benefits (resource utilization, profit, government incentives), and drawbacks (customer needs, competition, unfair trade). The research methodology section details the research philosophy (positivism and interpretivism), approach (deductive), and type of investigation (qualitative). Data collection methods are also discussed. The report aims to evaluate advantages and disadvantages of global business environment for improving business growth of large scale company, providing valuable insights into Zara's strategies and challenges in the global market.

Research Project

Table of Contents
Title: The benefits and drawbacks of a global business environment ............................................2
INTRODUCTION...........................................................................................................................2
LITERATURE REVIEW................................................................................................................5
RESEARCH METHODOLOGY....................................................................................................6
DATA ANALYSIS .....................................................................................................................9
CONCLUSION AND RECOMMENDATION............................................................................18
REFERENCES..............................................................................................................................20
APENDIX......................................................................................................................................21

Title: The benefits and drawbacks of a global business environment
INTRODUCTION
Overview and Background of study - Globalisation is the process of integration of
individual, companies, government, peoples interact with each other at global scale. This is the
concept for organisation of expanding the business at international level for gaining more profits
and to enhance the productivity. Globalisation has raised many opportunities for the
organisations to increase their profitability by approaching maximum number of customers
(Baars and et. al., 2016) . Along with the lots of benefits of global business environment, they
also have the drawbacks from which the organisations get affected. The present research is based
on the company ZARA, which is a Spanish fast fashion retailer company in Arteixo, Galicia. The
company was incorporated on 24 May, 1974 by the founder Amancio Ortega and Rosalia Mera.
The purpose of this research is to examine the benefits and drawbacks of global business
environment along with expanding the business at global scale. This research will emphasizes on
the aims and objectives, along with the literature review in which the opinions of different
authors regarding the title is included.
Background of company - Zara is the main brand of their parent organisation Inditex
group, which is the world's largest apparel retailer company. The company offers the latest
fashion brands of high quality with affordable prices. The company has over 2200 stores in 93
countries. Zara started their business from a very small store, and in the present time it is reached
as the world's largest retailer company. The success of ZARA has increased the goodwill of their
founder Amancio Ortega, as the 4th richest man in the world (Benería, Berik and Floro, 2015) .
The present case study is about examine benefits and drawbacks of global business environment
which influence the functions and operations of business. By the concept of globalisation, Zara
can expand their business in international market and gain the maximum profits.
Rationale of Study - The main purpose of conducting this research is that why the global
business environment is so important for an organisation. Zara has to promote their business at
global scale by using different sources such as social media, advertisement, etc. They can expand
their business by using the concept of globalisation and by knowing the benefits and drawbacks
of global business environment.

Significance of research - To gain more profits and to attract large number of customers,
ZARA want to expand their business at global scale, On the other hand the research is important
because from this the researcher get the knowledge and where they are getting issue in
completing this project (Briscoe, Tarique and Schuler, 2012) . So, it is crucial for the company to
follow the concept of globalisation to achieve higher profits.
Aim : “To evaluate advantages and disadvantages of global business environment for improving
business growth of large scale company” A case study on Zara.
Research Objectives :
 To understand concept of globalisation.
 To identify advantages and disadvantages of global business environment which
contributes in growth of Zara.
 To analyse the role of globalisation in business growth of Zara.
Research Questions :
 What do you mean by globalisation?
 What are the major advantages and disadvantages of global business environment which
contributes in growth of Zara?
 What is the role of globalisation in business growth of Zara?
Gantt Chart - This is a type of chart which represents the schedule of the entire project.
This chart can be used for any type of project. The project manager track the progress of the
whole project. This chart is the graphical representation which clearly shows the relationship
between the present status and action (Cavusgil and Knight, 2015) .

LITERATURE REVIEW
The Literature review of a research can be defined as the published information or data of
an specific topic. This part combine the section of both brief and summary and use the particular
organisational structure. In this part of the research different authors have hared their different
views in respect of the title mentioned above. This is the secondary method which does not
record original and new research work.
Concept of globalisation
According to Crane (2013), Globalisation refers with the process for describing
economic, social and political communication and interrelation in all over the world. The
concept of globalisation will help the company to sell their products and services and satisfy the
needs and preferences of their customers. In today's time, the increasing population has impacted
the economy in both positive and negative way. Government has removed the barriers of trade in

order to encourage and motivate various companies in expanding their business at global scale.
By the help of globalisation the company can gain the profitability and productivity of their
business (Crane and et. al., 2014) .
Drawbacks and benefits of global business environment which contributes in growth of Zara.
According to Dr. Cairo, Globalisation is a complex web where the peoples are
interconnect with each other to expand the business at global scale, because there are many
various peoples with different culture. This will make easier of Zara to expand their business at
global scale. There are some drawbacks and benefits, which are as follows -
Benefits of Globalisation
1. Better utilization of resources : By expanding the business company can gain maximum
profit and can buy the best resources and utilize it in an effective manner. Therefore, the
organisation gets benefits of large scale production, improvement in efficiency of
workers and reduction in cost.
2. Achievement of objective of profit – If a company expand their business in international
market then they can gain more and more profit objectives. The global scale market
provides the higher profits (Laszlo and Cescau, 2017) .
3. Incentives from the government – Expansion of business in international market by Zara
can enhance the employment opportunity, thus government wants that more job for the
peoples so they provide incentives to those companies who expand their business at
global scale. The incentives provided to Zara in a way of reduction in taxes, pre and post
shipment finance, concession in custom duties, duties, duty withdrawal, etc.
Drawbacks of globalisation
1. Customer Needs – Zara have to analyse the needs and requirements of customers of
different culture from various countries while expanding their business at global scale, so
this analysation creates difficulty in developing the products and services (Li and Zhou,
2017) .
2. Competition – The major drawback of globalisation in the growth of Zara is that there are
many competitors who competes with Zara in the international market, so this
competition and these rivals can create many issues or problems for the organisation to
expand their business at global scale.

3. Unfair Trade – To exploiting the workers in underdeveloped countries can leads top
unfair trade in their working condition. When the cost of products get reduces then
company is providing the unhealthy working environment to the employees, which can
be dangerous towards the health of the staff members (Madhok and Keyhani, 2012) .
Role of globalisation in business growth of Zara.
The role of global business environment is to increase the growth of the business by
increasing their market share, Zara can enhance their business growth by producing the good in
cheap rate and selling their products at low cost. As customers have lots of substitute so they can
go to another option if the prices are high of the products of Zara, and this will impact the
behaviours of the company as all customers want to buy goods which can be acquire quickly and
in more efficient way (Rossati, 2017) . The Role of Globalization in Economic Development is
the increased interconnectedness among countries. As it is known that the international group
action of national economies has such a profound effect, globalization plays a important role in
determining the future of the world and success for the large companies by expanding their
business in international market.
RESEARCH METHODOLOGY
Research Methodology is the method that can be used for identifying, selecting and
examining the entire data related to the topic. In this part, the readers are permitted to examine
the validity and reliability of the research. This part is one of the most important section of this
research which studies of methods and techniques by exploiting the effective skill and
knowledge in an effective manner (Schnall, Dobson and Landsbergis, 2016) . With this section
many problems related to research are sorted out in the better manner. This section of the
research contain many parts such as approaches and philosophy of the research, data collection
and type of investigation. This part of the researcher helps the investigator to set the guidelines
which help in managing the business functions and operations effectively.
Research Philosophy - This is the belief which is used in collecting and gathering the
relevant information and data for completing the project. There are two philosophy of research
named as interpretivism and positivism (Shahbaz and et. al., 2016) . In which positivism is
defined as the reality which is stable and determine from the objective point of view without any
interference, this has the objectivity meaning and quantitative data. Apart from this,
interpretivism is opposite of positivism, in which reality is constructed with the meanings created

by the individuals and their actions are the result of their own meaning and the interference is
that which can be understandable (Shenkar, Luo and Chi, 2014). There are some advantages of
positivism research philosophy such as it cover wide range of situations as well as can be fast
and economical. Along with this, disadvantages of same is that respective method tends to be
flexible and artificial. It is not much assistive in generating theories. On the other hand,
interpretivism also have several advantages such as numerous areas like cross-cultural, issues of
ethics and so on can be studied in depth. Along with this, major disadvantages of interpretivism
is related to its subjective nature.
Research Approach - Research approach is the process which include the steps along
with broad reasoning to talk about the methods of data collection, interpretation and analysis of
the research. This includes two approaches which are named as inductive and deductive.
Inductive approach is based on various types of theories which are applied and based on various
assumptions and models according to outcomes, in an inductive inference which is known as
premises are used to produce untested conclusions. On the other hand, in deductive approach
when the premises are true then the conclusion should also be true, this approach includes
numerical facts which are evaluated on the basis of observation (Sheth, 2017) .
In the following research, deductive approach is used as this is executed for gathering and
collecting relevant information and data. Along with this, it will help in explaining casual
relationship within concept and variables. Deductive approach also help in generating research
findings to a certain extent.
Type of investigation - The type of investigation part required the relevant information
and data for specific research so that the investigator can easily implement the methods from
which they can gain the advantages related to the process of research. The two types of research
methods are as follows which named as qualitative and quantitative. In qualitative research,
researcher gives preferences to human perception, their thoughts at the time of evaluating
entire research. This methods includes interviews, focus groups and observation in order to
reach result (Stahl and et. al., 2012) . On the other hand, In Qualitative research, the
information is examine on the basis of mathematical algorithm, numerical formulas, and
computational techniques. This method gather the information by conducting open
communication with the targeted audiences. In this present research report, qualitative research

method will be utilise by researcher for collecting as well as gathering accurate data ( Suchday,
2015) .
Data collection - This section of the research is also important for the investigator as this
is used to collect and gather data from different sources on a specific topic so that the researcher
can get the relevant and actual data to complete the research project. In this, following are the
methods used by the researcher in this project which are described as under:
1. Primary data collection – In this method, the data is collected by the researcher for the
first time, as in this the data and information which is collected is totally fresh and new.
To collect the original data, the investigator can use the following ways such as surveys,
interview, questionnaire, etc. These all the sources will help the investigator to gather the
authentic information in order to complete the following research project ( Suci, Asmara
and Mulatsih, 2016) .
2. Secondary data collection – This method of data collection saves a lot of time and money
of the researcher as in this the information on the specific topic is already collect by
someone else or by the third party. The investigator can collect data from the second
party or third party by the sources like online sites, articles, newspaper, blogs. There are
many people who collect the data on a specific topic and then post that data on internet,
so that the other people can access it ( Vadlamannati, 2015) .
In the present research, investigator use both primary and secondary method of data
collection in order to accomplish the desired aims and objectives.
Sampling method - Sampling methods refers with the process of selecting the group of
individuals from the huge population, for targeting them to do sampling. The specific group is
selected on which the sampling is drawn and then they also become the part of this research. This
refers to the stage on which they apply the findings of the research for target population. The
present research project have the total samples of respondents 30 who represent their point of
views and give specific opinions on the related topic of the research ( Wilkins, Khanna and
Trubek, 2017) . The sample responders who taken as the part of this particular study of research
are the teenagers and adults, etc.
Ethics consideration - Ethical consideration has common undertaking association for
exploring whole areas. In addition to this, it can examined that real rules and regulations are
identified in term of right or wrong. It is essential part which can be useful for securing various

criteria on experts that can be gathered and collected effectively. They have develop accurate
decisions for selecting right or wrong and also show individual response towards specific topic.
There are various types of moral qualities that are required for researcher is to sort particular
investigating work.
DATA ANALYSIS
This is also considered as the most crucial part of the process of research project in which
investigation is needed for analysing the requirement in order to examine data in the respect of
evaluating the aims and objectives of the project. Data and information is related to ascertain the
essential details which are interpreted by the various types of graphs and charts. An investigator
can analyse data and information by conducting random sampling method as described above
and for this the responders are 30. It will help in identifying applicable facts and figures that can
be used for completing specific report. The responders are those who give their viewpoint or
opinions in respect of the product and services of the company Zara. This can be executed by
both qualitative and quantitative study.
Theme 1 : Concept of globalisation
Q1. Are you aware about the concept of globalisation ? Frequency
Agree 25
Disagree 5

Interpretation : From the above graph, it has been interpreted that globalisation is the
procedure which help company in expanding business operations and functions. There are
around 30 respondents, from which 25 are agree with the statement that athey are aware about
the concept of globalisation, on the other hand, 5 are not satisfied with the statement and they
disagreed this theme.
Theme 2 : Benefits for globalising business at global scale
Q2. What are the benefits for globalising business at global scale for
Zara company?
Frequency
Employment opportunities 20
Better utilization of the resources 5
Incentives from the government 5
Agree Disagree
0
5
10
15
20
25
25
5
Column B

Interpretation : From the above stated graph, it has been analysed that expanding the
business at global scale can be very beneficial for the companies as they can gain many
advantages from this. From the 30 respondents, 20 companies are getting the benefit of
employment opportunities, and 5 are getting the benefit of better utilisation of resources, along
with this the rest are taking the advantage of Incentives from the government.
Theme 3 : Major challenges faced by Zara while expanding their business operations.
Q3. What are the major challenges which ZARA will face while
expanding their business operations and functions ?
Frequency
Budget management 15
Change in technology 10
Huge Competition 5
Employment opportunities
Better utilization of the resources
Incentives from the government
0
2
4
6
8
10
12
14
16
18
20
20
5 5
Column B