Global Business Environment: Zara's Environmental Performance Report

This report provides an in-depth analysis of Zara's environmental strategies within the global business environment. It begins with an introduction that highlights the increasing concerns of environmental pollution and the fashion industry's contribution to it. The report then evaluates the changes Zara has adopted, including carbon footprint reduction, the use of paper bags, implementation of sensors, use of organic products, waste recycling, supply chain optimization, and cloud computing. It identifies the stakeholders involved, such as customers, suppliers, and investors, and discusses their concerns. The report assesses the effectiveness of these changes in achieving competitive advantage, focusing on profitability, stakeholder relationships, social and legal responsibility, and cost-effectiveness. It also covers the use of technological advancements. Finally, the report offers recommendations for further improvements, including a focus on completely environmentally friendly products, green production and manufacturing, the use of green technologies, waste paper recycling, and water treatment. The report emphasizes the importance of these strategies in enhancing Zara's market offerings and contributing to environmental sustainability.

GLOBAL BUSINESS
ENVIRONMENT
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Table of Contents
INTRODUCTION...........................................................................................................................3
Evaluate changes that ZARA has adopted and concerns raised by the stakeholders .................3
Determine the effectiveness of the changes that are implemented by Zara, how these helps to
attain competitive advantage and relevant recommendations ....................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
With the increase in the environmental pollution which has lead to severe problem in the
global economy. Environmental pollution leads to hazards in the environment which causes
threat to the human and creatures. Government takes different measures in order to prevent these
environmental issues. Environmental issues are the results of the waste which is been excreted
out from the industries. These pollutes the land, waster and air which causes global warming and
other severe challenges. It is said that fashion industry are the huge contributors of
environmental pollutions. Zara is an organisational which deals in apparels,accessories perfumes
and other consumer durable products. Zara is an multinational organisational which render
highly quality product and services to its customers. This report covers changes that companies
takes and concerns raised that different stakeholders and the strategies that the company has
implemented to maintain the competitive advantage and recommendation (Amankwah-Amoah,
2016).
Evaluate changes that ZARA has adopted and concerns raised by the stakeholders
Due to changes in environmental issues, there are certain changes which is adopted by
Zara in order to implement to changes of the global environment. Zara takes different measures
in order to control the pollution level of the business. With the increased concerns of the
environment safety is becomes important to take different measures which reduces the negative
impact of different business activities. Due the increased environmental pollutions, Zara
implements different measures to control and monitor the level of pollutions. The stakeholders of
Zara includes customers, suppliers, investors, financial institutions, lenders, pressure groups,
creditors, employees, public, and other individual who are interested in the business activities of
Zara. Developing the relationship wit the stakeholder helps to render profitability for the
company by delivering the value to the stakeholders to attain stakeholder satisfaction (Fabuš,
2017). The changes implemented by Zara in the business practices are as follows:
Carbon footprints
Carbon footprints are defined by the technique of measuring the carbon emitted from the
industries. It is an important measure as carbon dioxide is an hazardous green house gas which
is an major contributors for the global warming. When business does fulfils the measures to
check the carbon footprints it breaches there image in the market, whereas the business which
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takes measures to check the carbon footprints are considered to be reliable and builds the
reputation and goodwill of the company in the market. Zara takes different measures to check the
carbon footprints from the industries which contributes to the air pollution in the environment. It
uses the electric capital incentives machines rather than fuel machines to produce apparels which
helps to reduce emission of gas. It also acknowledges an takes different measures to educate its
employees for avoid using all the electronic equipments when they are not at use (Gooris and
Peeters, 2016).
Paper bags
Earlier Zara use to give the products in the polythene bags but to save the social cost and
develop the goodwill in the market. Zara ahas started offerings its products in paper bags which
helps to reduce the use of polythene. As polythene is the major contributors of environmental
pollutions. By this measure used by Zara it helps to take services of the company in order to
develops the corporate image in the market. Its helps to satisfy the stakeholders of Zara like
customers, where customer feel that the companion is more social responsible taking different
measures to prevents the environmental issues.
Sensors
Electric sensors helps monitors the level of pollution caused out of the industries. In the
clothings industries of Zara electric sensors are embedded to evaluate the level of pollution
caused out of different production activities. These sensors sends signal to the engineers to the
company in case of excess of pollution caused of the production activities, these sensors helps to
determines the level of pollutions. When business adopts different changes to control the
pollution level in the company (Groşanu and et.al, 2015). These sensors gives information to the
manager about the pressure, the gases emitted and other pollutants from industries.
Organic products
With the increased demand of the organic products in the market, Zara produces products
which are organic in nature, producing organic cotton products in the clothes helps to develop
the corporate image in the market. As the business takes the social responsibility in order to
render quality products to its customers. Using the organic products in the helps to reduce non
biodegradable waste in the environment. With high increased demand of customers, it helps it
achieve customer satisfaction and profitability of the company. As customers prefer products
which are organic in nature and contributes to environment safety.
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Recycling the waste
Zara takes different measures to control the pollution level from the company. It adopt
different policies and strategies in order to utilises the waste from the industries. It recycles the
waste from different business activities and ensures that it reduces the waste emission to the land
and waster to zero (Halbert and Ingulli, 2020).
Supply chain
Using the effective supply chain includes selecting the best supplier, cost incurred while
production and transportation channels used to deliver the value to the end customers. Zara
adopts effective supply chain in order to reduce the cost and pollutions of the transportations.
Cloud computing
Cloud computing is an important technological tool which helps to reduce the use of
physical units and maintenance of the large central units which causes emission of gases. Cloud
computing is such a software which helps to store the data of the company in the software. Zara
adopts to implementation of the cloud computing software which reduces the risk of maintaining
the physical units to store data. Through cloud copating zara can access to all the information of
the company, it also rendes information about the refular profuita dn sales target op the
companies. Moreover it helps to improve services of the company to render better customer
experiences (Hamilton and Webster, 2018).
Determine the effectiveness of the changes that are implemented by Zara, how these helps to
attain competitive advantage and relevant recommendations
In order to achieve the competitive advantage, Zara implements different strategies and
policies to achieve business success. To evaluate the effectivenesses of the policies implemented
by Zara, these outcomes are been discussed below:
Profitability
Profitability is the major objective for the business for which the business tries to render
effective market offerings in the market. Where Zara implements different policies which helps
to render quality products to the customers, which helps to attain customer satisfactions and
develop the brand image in the market..
Stakeholder relationship
Maintaining stakeholder relationship is an important aspects for the company to become
the global leaders. Zara maintain the good relationship with its stakeholder including the
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customer experiences which helps to achieve competitive advantage of the company. Where
customers and different stakeholder believes that they are been valued, it helps tostay loyal for
long period of time of the company (Hampden-Turner and Trompenaars, 2020).
Social responsibility
Zara adopts different changes in order to prevents environmental pollutions. Where Zara takes
these measures it helps to build the social responsibility of Zara in the marketplace. When
companies are socially responsible and takes different measures to protect the environmental
concerns, it helps to develop the goodwill of the company in the minds to the customers where
customers feel reliable and more loyal to the brand.
Legal responsibility
Zara adopts to the measures that are been implemented by the government of UK, the
government of UK takes different measures to control and monitor the environmental pollutions
by different companies. The government intervenes when company does not complies with the
environmental protection laws and measures and petitions for non compliance. Zara compiles
with the measures and laws framed by the UK government and other government of different
countries which helps to develop the reputation of the company in the international market and
helps to attain competitive advantage (Kasemsap, 2016).
Competitive advantage
Zara adopts to different measures in order to attain competitive advantage by rendering quality
products and services to is customers and adopting to all measures that supports to environmental
welfare. Moreover it awares its customers about the market offerings and develops effective
market campaigns to promote the goods and services the end customers.
Cost effective
As Zara uses the cloud computing and other technological software which reduces the cost
incurred to maintains physical units. Cost efficiency is the most important tool which contributes
to the profitability of the company. Implementing modern technologies improves business
performances and helps to reduce the cost of production and manufacturing.
Technological advancement
This is the effective change that was introduced by an organisation at workplace. This not only
help to complete the work in speedy manner but also providing an opportunity to secure the
information for larger period of time. This factor has huge contribution towards the direction of
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attaining competitive advantage in market. This help them to compare the large past data and
analyse the trends so they can build the competitive and new strategies. This also providing an
opportunity to become more competent towards new working tactics and possibilities by
focusing over training and development needs. The benefit of training and development practice
is also ascertained by an organisation at various points like high level of employee engagement
and development of good teams at workplace. This will help the management to get rid of the
issues like high employee turnover and conflict among the parties (Kasemsap, 2018). Ultimately,
this help in development and strengthen of internal competencies from where easy to complete
all the desired targets and goals. In overall manner, the competitive advantage ascertained in dual
manner where they will easily able to compete in market on both external and internal basis.
Recommendation in order to improve the market offerings of the company are as:
Zara should focus of delivering products which are completely environmental friendly.
These involves changing delivery process of the company and production process and implement
the changes in the product development. These involves
Green production and manufacturing
Green production is defined by using the environmental friendly process of the
production. It involves reducing the negative impacts of the environment. It is important
algorithm in the increasing environmental pollutions. It involves using all the resources which
helps to reduce the emission of pollution from the industries. Zara should use this technique of
production in which involves reusing all the waste products, less use of natural resources,
monitoring the emission of gases from the production process (Khajeheian, Friedrichsen and
Mödinger, 2018).
Green technologies
Zara should use green technologies are defined by using technologies which supports the
use of renewable resources like wind, hydropower and solar energy. It helps to support the most
efficient use of production, which helps to reduce the pollution in the environmental it reduces
the emission of harmful green house gases in the environment. Moreover it reduces the use of
natural resources which helps to promote natural resource conservation.
Waste paper recycling
Zara should use all waste paper recycling in order to conserve the use of paper in the
production activities. Through waste papers it should produce packaging of the products. It helps
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to reduce the cost incurred for packaging. Through waste papers, the manager should render
innovative packaging ideas and which attracts the customers to purchase the products. Moreover
these waste papers in producing paper bags for the customer. These measures helps to reduce the
use of paper in the production activities and save the social cost incurred (Lee, ed., 2017).
Water treatment
The production department should careful monitor the usage of waters in different
production activities. It also involves developing scrutinising the wast waster treatment. It should
look after these waste water treatment in order to prevent environmental protection and welfare.
The usage of water should also be minimised. By using these Zara will not only contribute to
environmental protection and safety but also helps to develop the reputation of the brand in the
global market (Peng, 2016).
CONCLUSION
Environmental protection is an important measure which every business have to look
after as when business does not adopts to these environmental safety measures it results to threat
to the environment. Increasing environmental issues leads to hazard in the environment which
disrupts the lives human and creatures. Thus taking different environmental protection measures
are important conserve the envorpnma6tal and save the social cost. When business adopts the
environmental concern it develop the goodwill and reputation of the company in the marketplace
which helps to achieve business success and competitive advantage in the global market.
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REFERENCES
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Amankwah-Amoah, J., 2016. Global business and emerging economies: Towards a new
perspective on the effects of e-waste. Technological Forecasting and Social
Change. 105. pp.20-26.
Fabuš, M., 2017. Current development of business environment in Slovakia and Czech
Republic. Entrepreneurship and Sustainability Issues. 5(1). pp.127-137.
Gooris, J. and Peeters, C., 2016. Fragmenting global business processes: A protection for
proprietary information. Journal of International Business Studies. 47(5). pp.535-562.
Groşanu, A. and et.al, 2015. The influence of country-level governance on business environment
and entrepreneurship: A global perspective. Amfiteatru Economic Journal. 17(38).
pp.60-75.
Halbert, T. and Ingulli, E., 2020. Law and ethics in the business environment. Cengage Learning.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hampden-Turner, C. and Trompenaars, F., 2020. Riding the waves of culture: Understanding
diversity in global business. Hachette UK.
Kasemsap, K., 2016. The role of cloud computing adoption in global business. In Web-Based
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Lee, I. ed., 2017. The Internet of Things in the Modern Business Environment. IGI Global.
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Saleem, S., 2015. BUSINESS ENVIRONMENT, 3/e. Pearson Education India.
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Learning (pp. 343-348). Springer, Cham.
Tallman, S., Luo, Y. and Buckley, P. J., 2018. Business models in global competition. Global
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Wei, L. H., Thurasamy, R. and Popa, S., 2018. Managing virtual teams for open innovation in
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