Zara: A Comprehensive Analysis of Business Strategies and Practices

This report provides a comprehensive analysis of the Zara firm, a leading Spanish retail company. It begins with an overview of Zara's history, highlighting its evolution and expansion. The main body of the report delves into Zara's vision, leadership styles (including autocratic, democratic, and transformational), and management practices, emphasizing their impact on the company's success. It explores various management strategies such as growth management, change management, and employee management. The report then examines the implementation of these strategies, leadership styles and management practices within Zara. Finally, the report offers recommendations for future improvements, focusing on situational leadership, employee training and awareness of employee needs, and wants within the company. The report concludes by emphasizing Zara's strong market position and the importance of effective leadership and management practices in maintaining this success.

Zara firm (Individual essay &
individual report)

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
1. History and summary of Zara.................................................................................................1
2. Vision, leadership style, management practices and various strategies for Zara....................2
3. Achieve and implementation in the Zara................................................................................5
4. Recommendation for future improvement..............................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business is defined as an organisation or economic system where goods and services are
exchanged for earning money and profits from the business. It is the occupation of sales and
purchase of product and services for make the profits (Arnold and et.al., 2015). The present
essay is based on the “Zara” which is Spanish based retailer company. It is world's largest
apparel retailer company. Essay lays emphasis on the history and summary of the business and
its vision, leadership style, management practices and various strategies make by using various
theories. It will show the achieved and implemented of company and recommendation for their
further improvements.
MAIN BODY
1. History and summary of Zara.
Zara is the world's largest Spanish retail sector company and fashion group. It is
established by the Ortega established a dress making factory, inditex, in the 1963. It is slowly
expanded its empire from the town in Spain to the rest of the country. In the 1990 the company
had expended their business into the united states, France and Europe as well. At the present they
has closed the 6500 stores across 88 countries around the world.
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Illustration 1: Zara
(source: Zara, 2018)

It is best and well known and most successful brand in the world. It is produces around
450 million items a year. Zara is overarching strategy for achieving growth and success by
diversification with the vertical integrations. Its stores have men's, women's and children’s
clothing as well as. Its products supplied based on the customer trends and their needs or
demands. Management of Zara is need to add or develop new product and services for extra
growth and success. It is best and effective brand company (Zara, 2018).
Its quality of goods, products and services are best. That have polices of zero advertising
because of that its advertisement is not advert at TV and any other sides. Company is preferred to
invest for opening new stores and also develop new product and services. The company sets their
objectives such as to save energy and to be an Eco friendly stores and reduce waste and recycle.
Management is also has some other objectives are to show commitment towards the staff and to
increase the awarenesses among the team members and also use ecological fabric and organic
cotton. That objectives are helps to them for build trust of customers.
The aim of Zara is to contribute to the sustainable development of society and that of the
environment with which interact. The Zara has the remained faithful to its core values, expressed
simply in the same by in keywords are beauty, clarity, functionality and sustainability. They are
sets the strong relations with customers. Strong and effective relations of customers are help to
make the effective and best brand image at marketplace. Further, enhancing the quality of
customers services, Zara stores also include radio frequency identification technology and
making those most in demand rapidly available to customers. Zara join life collection and the
Eco - stores are two underline the brand's unwavering focus on the sustainability and improved
customers experience (Campbell and Reyes-Picknell, 2015).
2. Vision, leadership style, management practices and various strategies for Zara.
According to the research the vision of Zara is “to contribute the sustainable development
of society and that of the environment with which we interact”. There are various leadership
style and management practices are help to maintain discipline at organisation and between us
employees. Management strategies are help to achieve goals and objectives of firm and also help
to improve profit and productivity of firm. That are as follows:
Leadership styles
Leadership style is provided the proper direction, implementing, plans and motivating
peoples. There are various leadership are as follows:
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Autocratic leadership style
It is the one strong dimensional leadership styles that gives full power or authority to the
leaders. In this leadership style leaders make their own decision for any work without any
consultation with their subordinates or team members and then decisions convey their messages
to others (Chang, 2016).
Democratic leadership style
This leadership style is more participative in nature there leader involve their teams
members while they are taking any decisions for the growth of team work. It is well and best for
the Zara's leaders. By these leaders of Zara gets the various ideas and information for the work
and also get the innovative ideas. It is most preferred over other leadership styles.
Transformational leadership style
In this leadership style, leaders are focus on the setting high goals with strict deadlines
and working in unison to accomplish them on time. For that leaders of Zara can sets the
challenging expectations for the team to achieve exceptional result of work.
Those are leadership styles are helps to leaders for their better result of work and also
improve their team performance (Inkinen, 2016).
Management practices
Management means that getting things done effective through peoples. It is important to
sets the leadership and management practices at the organisation. That are help to motivate the
peoples and employees in high manners. There are various management practices are as follows:
Engage workers
Engage with their employees and workers are help to build trust of worker. In that
manager of Zara needs to find out the effective and best way to employees for caring their vision
and mission of company. This helps to less passive, taking responsibility for their performance
and attracting fresh talent to the company.
Rewards efforts
Rewards is best and valuable management practice to motivate the peoples and their team
members in positive way. There are two types of rewards system such as financial and non-
financial rewards. Most of non-financial rewards system is effective and best because in these
employees and team members are highly motivated. Manager can give and provide rewards to
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their employees. By this they are highly motivated and give their hard contribution to achieve
gaols and objectives of Zara (Kerzner, 2018).
Seek clarity
At the time of work, lots of mistakes are creates when the clarity of work is missed. For
that manager of Zara can share all the informations which are related to work and give clear
instructions of work. By these employees are gets proper information and idea of work and done
it effective and best manners.
Creates friendly culture
The culture and environment is also effect to employees for work and its result. It is very
good and valuable management practice to make new hires based on alignment with the
company. For that manager make the friendly environment of workplace. By these employees
are feel free and discuss their all the problems with the manager and it is the best ways to reduce
mistakes and conflicts between employees.
Those are management practices are help to succeed in their competitive field like
business management. The best management practices selected by the company is help to
improve performance of work with the best result of work (Nawaz and Khan, 2016).
Management strategies
Management strategies are tools and techniques are used to direct and help to
organisation to achieve a set of goals. These involves setting objectives, analysing the
competitive environment, analysing the internal organisation, evaluating strategies and ensuring
that management strategies across the organisation. There are various management strategies are
as follows:
Growth management
Growth management strategies are help to Zara to achieve long term goals, assisting
manager in determining the growth of Zara in the right manner or not. This strategy is help to
Zara to evaluate the current business model and identify where they are need to make changes
according to requirements. Manager of Zara then undertaken the planning phases, determines the
roles at various divisions in the company. Plan and strategies are help to allocate the resources to
achieve growth at the level to company and also help in their competitive edge.
Changes management
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Change management strategies are needed to implement significant changes at some
points and level in their development. This strategy is help to manager of Zara for taking
decisions for making changes in the company. Changes management of Zara is also helped to
leaders for monitor compliance to changes and measure effectiveness to entire organisation
(Rawat and et.al., 2019).
Employees management
Employee and human resource management is also important strategy for the company
because they are done their work according to the management. This management is help to gain
better result of work with motivate to employees. This take account in the employees
background and values for work. It is best and effective part of management strategies.
Those are the management strategies are helps to gain the best result of work with the
help of management strategies. By this manager and leaders are have the all the information and
knowledge of work. By that manager and leaders of Zara are able to make effective and valuable
challenges for the company.
3. Achieve and implementation in the Zara.
The leadership style, management practices and approaches are developed and
implemented effectively in the company. That affect the whole organisation and the peoples
within the organisation. For effectively and best achieve the vision with the help of the theories
and styles, various strategies were implemented by the company. For that company have make
changes that are do not affect employees and system in negative way. Leaders are implements
the transformational, democratic and autocratic leadership style in the company (Wiengarten and
et.al., 2016).
That are helps to leaders and manager to understand the humans as the part of Zara not
just as resources. The current leadership style made effective and valuable changes in the
performance of employee and company. By these employees are developed in positive ways. For
implementation of the practices effectively help the company to reach the goal with the team
work as per the leaders vision. For implementing the management practices, company changes
the structure of the organisation from flat to hierarchical.
For improve work performance of employees there is required to give the attractive
rewards to their employees by that employees are highly motivated for work and task. The roles
of leaders is to lead, motivate, encourage and set the vision. The visions are sets by leaders that is
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achieved by the effective leadership style and accordingly the management practice is dependent
on the style and vision developed and implemented by the leaders. For implement democratic
leadership style is very important and effective as Zara implements this style in its company
according to situations. Team engagement is help to increase the productivity of employees work
and also profit of firm (Wirtz and et.al., 2016).
4. Recommendation for future improvement.
Zara has the top position in the marketplace because of an effective leaders and
management practices are in the company. There are having some recommendation that are help
to the leaders and manager to perform their roles. That are as follows:
 It is recommendation to the industry that they should implement situational leadership
style to effectively handle any conflicts and as the company any problems at their current
stage. This theory is helps to leaders and manager to understand situation and give best
solution for that.
 There are other recommendation for the Zara manager to give appropriate training to
their employees and also organized training and development program. For that manager
can use the business games, coaching, job instruction methods. That all the best ways of
give training to their employees. By the training employees are able to understand the
work task easily and done with best result (Yahaya and Ebrahim, 2016).
 Zara is the largest retail sector company in UK, it is important for workforce of the
industry. For that recommended to leaders and manager to aware with the needs and
wants of employees and give rewards to employees. By this employees are highly
motivated and able to give their hard contribution to achieve goals and objectives of Zara.
CONCLUSION
From the present study it had been summarised that the leaders and manager play an
important role in the success of organisation. They utilised or implemented various style in the
organisation to manage and lead the employees towards the vision and the objectives. Leadership
and management of the industry has the change in their approaches. Report has been also
covered by the relation oriented leadership style that help to company for develop loyal
employees in the company by building good and healthy relations with them.
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REFERENCES
Books and journals
Arnold and et.al., 2015. Leadership styles, emotion regulation, and burnout. Journal of
Occupational Health Psychology. 20(4). p.481.
Campbell, J. D. and Reyes-Picknell, J. V., 2015. Uptime: Strategies for excellence in
maintenance management. Productivity Press.
Chang, J. F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
Inkinen, H., 2016. Review of empirical research on knowledge management practices and firm
performance. Journal of knowledge management. 20(2). pp.230-257.
Kerzner, H., 2018. Project management best practices: Achieving global excellence. John Wiley
& Sons.
Nawaz, Z.A.K.D.A. and Khan_ PhD, I., 2016. Leadership theories and styles: A literature
review. Leadership. 16. pp.1-7.
Rawat and et.al., 2019. Women Organization Commitment: Role of the Second Career & Their
Leadership Styles. Indian Journal of Industrial Relations. 54(3).
Wiengarten and et.al., 2016. Risk, risk management practices, and the success of supply chain
integration. International Journal of Production Economics. 171. pp.361-370.
Wirtz and et.al., 2016. Business models: Origin, development and future research perspectives.
Long range planning. 49(1). pp.36-54.
Yahaya, R. and Ebrahim, F., 2016. Leadership styles and organizational commitment: literature
review. Journal of Management Development. 35(2). pp.190-216.
ONLINE
Zara. 2018. [Online]. Avaliable thorugh: <https://successstory.com/companies/zara>
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