Business in Practice: Zara's Internal & External Factors - Semester 1

This report provides an analysis of the internal and external factors affecting Zara's business operations. Internal factors such as employees, culture, and processes are examined, alongside external factors including the economy, government policies, competitors, and customers. The report discusses how these factors influence Zara's growth and development, as well as how Zara's operations impact the external environment through economic influence, adherence to government policies, and competition within the market. The analysis concludes that both internal and external elements significantly shape Zara's business, with key considerations for government policies, economic conditions, and customer-competitor dynamics. This resource is available on Desklib, where students can find similar solved assignments and study tools.

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BUSINESS IN PRACTICE
INTRODUCTION
Business is defined as how the company or the organization
which is engaged in some professional activity on large scale in a
significant manner (Andreini and et.al., 2017).
The report will analyze the internal and external factors that
will affect the business of Zara on large scale. Further, different
ways will be analyzed through which Zara impacts the external
environment. And in this the main aspects will be analyzed which
will include the government policies, economy and the customers
and competitors as they are the major source of how the
organization will be impacted and vice versa.
Internal and external factors affects the organization
The internal and external factors affecting Zara is evaluated
on the aspects that how the organization works on large scale. There
are both internal and external factors in this aspect. The internal
factors are described as –
Employees – Employees are major factor which affects organization
which is Zara. When employees in organization perform better and
deliver significant results then company is also able to contribute
along with other processes (Ibrahim and et.al., 2017).
Culture – The culture creates environment within organization
which affects working patterns and cultures where employees are.
Culture of Zara impacts whole organization as well as employees as
this initiates whole process and working environment.
Process – Process of Zara is affects organization as there are various
changes taking place on within organization (Al Mamun and et.al.,
2017). The productivity through which business is being observed
helps company in knowing how Zara is being affected.
The external factors are described as –
Economy – Economy affects organization in many ways which
includes – demand and supply, inflation and recession etc. These are
major facts which fluctuates growth and development of Zara
(Sharma and et.al., 2021). The business which Zara is developing
along years has been impacted by economy at very large scale.
Government Policy – There are various government policies which
are being set by government and this is impacting Zara and it process
of working and growing in business environment. Along with this,
due to changes in government policies, company also has to follow
policies.
Competitors and Customers – Competitors and the customers have
impacted Zara on large scale through which it is analyzed that there
are various perspectives of customers in market and competitors also
give tough competition to Zara (KHOSHBIN, 2021).This makes
whole of competition and customer scale analyze and evaluate.
REFERENCES
Andreini, D. and et.al., 2017. Business model definition and boundaries. In Business Model Innovation (pp. 25-53). Springer, Cham.
Ibrahim, R. and et.al., 2017. Organizational culture and development: Testing the structural path of factors affecting employees’ work performance in an
organization. Asia Pacific Management Review.22(2).pp.104-111.
Al Mamun, C.A. and et.al., 2017. Factors affecting employee turnover and sound retention strategies in business organization: A conceptual
view. Problems and Perspectives in Management, (15, Iss. 1).pp.63-71.
Sharma, G. and et.al., 2021. An Analysis of Causal Relationships Among the Factors Affecting the Performance of a Service Organization. SAGE
Open.11(1).p.2158244021999394.
KHOSHBIN, S.R., 2021. Investigating the Effect of the Relationship between Brand Visual Identities, Focus on Employees and Customers and Brand
Personality on Organizational Commitment. Journal of Contemporary Issues in Business and Government.27(3).pp.1964-
1974.
Kopnina, H., 2019. Green-washing or best case practices? Using circular economy and Cradle to Cradle case studies in business education. Journal
of Cleaner Production.219.pp.613-621.
CONCLUSION
Thus, it is concluded from the above report that internal and external
factors affect the business of Zara on large scale. Further, different ways were
analyzed through which Zara impacts the external environment. And in this the
main aspects which were analyzed included the government policies, economy
and the customers and competitors which were the major source of how the
organization is being impacted and vice versa.
Different ways in which organization can impact on external
environment
There are various ways through which Zara can impact the external
environment. How Zara impacts the external environment is
described below –
Economy – Zara impacts the economic scale as how the
organization works also inculcates that what is the actual position of
the organization in market and through this the main thing is how
the company is impacts with its processes and policies with
economy on large scale (Kopnina, 2019).This includes recession,
inflation and demand and supply factors. These three are main
factors through which Zara impacts external environment. This
creates ways through which all the things are taken into
consideration.
Government Policy – Due to the changes which Zara takes into consideration,
the external environment is being impacted due to the changes which are being
observed on large scale. Government policies play major role in the business
environment and through this the main aim of the company is taken into
account which initiates the impact of how Zara’s process impacts the external
environment and specially the government policy on large scale (Keshavarzpour
and et.al., 2019).
Competitors and Customers – Zara impacts the these two important external
environment factors which are the competitors and the customers in which the
customers and the competitors are denoting their important part in which they
play the major role of how the company is taking into account the competition
and perspectives and choices of customers towards the products and services
which Zara is availing them on large scale and also by competing with various
other competitors in the market structure.