Strategic Leadership Strategies: Zara's Hong Kong Market Expansion

This report provides an in-depth analysis of Zara's strategic leadership approach, specifically focusing on its operations in Hong Kong. It explores the core principles of strategic leadership, emphasizing its importance in setting organizational goals and objectives. The report delves into various leadership strategies and theories, including trait theory, behavioral theory (autocratic, democratic, and laissez-faire), and contingency theory, illustrating how Zara applies these concepts to motivate employees and achieve its business objectives. Furthermore, it examines the application of the STEEP model (Social, Technological, Economic, Environmental, and Political) to assess external factors influencing Zara's business decisions. The report also highlights the significance of stakeholders, both internal (employees, shareholders) and external (creditors, suppliers, investors), and their impact on Zara's business processes and success in the Hong Kong market. The analysis showcases how Zara adapts its strategies to capture market share, manage its business culture, and achieve long-term goals through effective leadership and stakeholder engagement.

Strategic Leadership

INTRODUCTION
Leadership is the best way to lead people. An individual who leads group of people is
called as leader. They are the most important part of an organization to set the goals and
objectives in a team and lead them effectively. They follow and set rules and regulations which
have to be followed by people in order to perform the task effectively. Strategic leadership is the
most important and systematic process which is implemented by leaders to lead the team and
individuals in order to achieve positive results within organization. Best leadership requires the
effective strategies which assist in developing the overall performance of workers to achieve
predetermined goals in an appropriate time period. Basically strategies are related to the long
term plan of action which is made by company to achieve competitive advantage over
competitors. Culture of the organization defines an effective process which is followed by
company in an appropriate manner.
Zara is the biggest Spanish clothing retain company which operate their business from
last 30 years. They deal their business in various environment and culture. Present study is based
on the operations of Zara in Hong Kong where they just want to capture a large market share.
Main aim of this project is to define various strategies defined in leadership in order to achieve
long term goals and objectives. This company want to define their business in Hong Kong to
expand business to evaluate their various culture. Since last 10 years, company manages their
business in market. they do many changes in their operation process which is evaluate the
effective process and they attain higher positive results in appropriate time period. Zara makes
different strategies affect the whole process of business (Stakeholder). They set their business in
and less funds so that thy deal with direct consumers but now days they start online marketing
which is very effective for the customers. This strategies helps to the company to achieve higher
returns and increase number of customers to buy its products. Changes affect to the business
culture and environment also. It may evaluate the whole process of business operation which
affect the customers mind set and their culture also.
Leadership is a direct cause of organizational success it effect on the business
relationship in order to achieve appropriate goals and objectives. In organization leasers
influence the all-over performance of the people they manage the whole organization process
which is beneficial to the business. In every business organization, leadership is essential to
achieve success. They are responsible for all the activities being performed in the firm. These
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activeness are define and performed by the employees and workers to achieve goals and
objectives (Yarger, 2012). If leadership are effective than they easily balance between demands
and stakeholders in Zara. It put a direct impact on the overall performance of business as it
establishes vision which maximizes the ability of business in order to increase productivity in an
effective manner. Mainly, it lead with the culture of business. Culture is everything to whole
world. But in company it play major role in order to attain higher success at marketplace. This
will helps in motivate the employees to increase their performance and get positive results. A
few years back Zara does not promote their products in public they just sale their products in
market but now day's they use more promotional activities in their business to increase their sales
of the products and profitability also. They use many site where they sale their goods and
products and attract large number of customers. They also maintain their culture according to the
customers and provide them accordingly.
Organization follows all the leadership styles which affect the performance and
productivity of employees so that they will be able to perform their task with efficiency. Zara is
the largest retail company which brings a large number of collection in each season which affect
the standard of the people. They update their operation strategies and create innovative things to
invite more customers who would buy the products. With the help of this, they capture a large
market share from competitors. Along with this, they use many strategies and policies used in
internal business operations and the leader also use various policies which can motivate the
workers to do their best and achieve predetermined targets in an appropriate time period.
Leadership is practical area and research area which is define the ability of an individuals and
organization. An individuals and person lead the team who set some rules and regulation which
is define by the leader to motivate in inspire peoples in order to attain higher success (Von
Krogh, Nonaka and Rechsteiner, 2012). In this, they support to other which can be motivation
and inspire to done their work effective manner. There are various leadership strategies which
are followed by the leader in order to encourage workers:
Trait theory: It is an effective theory which define the quality of individuals who lead people. It
define number of similarity characteristics its called as traits. It can be specific and similar to
others . This theory is essential to the leadership which defines the type of people who can be
good leaders in an organization.
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Behavioural theory: It focuses on the behaviour of leader. It define new perspective which
assists in learning power of people and it is based on the behaviour of person in organization. It
is also a learning theory that only focuses on the observable behaviour. There are three type of
leaders which is related to the behaviour theory such as Autocratic leaders which is take and
make decision without consulting others. Second one is Democratic leaders who provide input
factors before making any decision. It is very difficult because there are lots of perspective ideas
which is different from each member. Last one is Laissez faire leaders who are able to allow
people in the team to make decision-making this will be possible when every team member are
highly motivated that does not need and supervision.
Contingency theory: This theory is based on the situation. It also define that how situation are
affect the factors of the leaders. This factors are important to the effective leadership in order to
lead the appropriately. In this there are numerous factors like nature of the task which is
performed by the leaders in appropriate manner.
Power and influence theory: This is based on different ways where leaders use power and
influence in order to done things (Von Krogh, Nonaka and Rechsteiner, 2012). It is related to the
rewards stricture in order to build relationship and evaluate and develop the highly motivated
environment.
In this leadership process STEEP model applied which helps in evaluating the overall
performance in order to achieve organizational goals and objectives in appropriate manner. It is
very important tools which is use in the marketing tom evaluate the external factors which
impact on the business organization. It is a systematic structure of information regarding the
external factors. This external factors are uncontrollable b y the business organization so that it is
very useful tool to measure it effectively. S stand for Social, T is Technological, E define
Economic, E is Environmental and last P stand for Political. This analysis is effective logical
way to begin which is used in the marketing process to define best results within organization. It
also affect in the decision making process.
Social: This trends related to the social forces. It may define the assessment of the people in
organization. This helps in evaluating the social needs and wants. In social trends, it involved
demographics, marriage rated, morbidity and mortality, housing choices and religious
affiliations. In this act they evolute the consumer behaviour and their lifestyle (Renz, 2016). Zara
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define the social activities and than they provide them accordingly. They also focus on customers
satisfaction by providing quality of products.
Technological: This factor is related to the technical process where the organization use
technological advancement (Phipps, 2012). It also focus on innovation, communication, transport
and life cycle of products to attain higher profitability. Zara use new and advance technology to
produce best quality of products to its customers and satisfy their needs in appropriate manner.
These factors are used by the company to measure the performance at marketplace.
Economic: This factors are relate to the buying position of the consumers. In this trends the
interest rates, international trade, inflation and opportunities of the job to the local people.
Organization influence by the economic factors. They produce and make their products
according to the economic rate which assist in developing the economy of the country.
Environmental: This trades are uncontrollable y the organization process. In this environmental
factors are include like water, food, pollution and environmental regulation which affect the
overall business process.
Political: It can be developed and influence by the individuals. It is more important factors which
are affect the environmental factors also. This factors are helps to the organization to
understanding the political and legal environment of a particular nation. If organization can note
able to understand these factors effectively than they face many barriers which is impact on
financial of the company.
These all affect the operational function Zara, it make the best decision making process which is
evaluate by the management of the organization. This tools are essential to measure the external
factors which are uncontrollable by the company (Phipps and Burbach, 2010). So that it is more
important to the organization. These models are applied in the Zara operation to measure the
external conflicts which are arise in the business process and define lots of financial wastage and
many losses. This will reduce the goodwill of the company nut in other hand it impact on
organization process positively that can be define positive affect which can be increase the
productivity of the employees and attain higher revenues by the customers.
Stakeholder are the essential part of the business which helps in making funds and
revenues in appropriate manner. Stakeholder are any person, social groups and society that are
part of the business which can be internal and external. They all are having different interest and
priorities. It is very important part of every organization which affect the all activities in
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business. In these process they are dived in two factors such as internal and external. Internal
stakeholder are those peoples who invest in a business organization with the hep of relationship
and investment. On other hand external stakeholders are those who do not directly work with the
company but they are affect to the business in some way. In this it include creditors, suppliers,
investor and public groups which are the part of the external stakeholders. It may be business
partners and helps in taking decision in organization (Morrill, 2010). They play important role in
business process with it any firm can not able to attain success at marketplace. They affect the
operation of the business who take a part in organizational activities to perform well in order to
attain higher success at marketplace. There are some elements which is include in stakeholders
such as:
Employee's:It is a important part of the stakeholder who perform their work in an organization in
order to achieve positive results in appropriate manner. These are hire by the company to do
specific job in an organization. Zara involve skilled and experience employees in their process to
attain best outcomes by them.
Shareholders:It is also a essential part of the organization which define the ownership of share of
the company. They are owner of the organization in legal manner. They are get a part of the
company profits and also share loss of the business (McWilliams and Siegel, 2011). In every
company shareholder are important element which assist in getting higher success at the
marketplace. Stakeholders are invest their money in the company in return for share which legal
process is done by the individual.
Creditors: It is very important part of the stakeholder who play major role in business
organization. They can be bank who give money for a specific time period. They deliver a
product, service and bank loan to one or more debtors are called as creditors. They having legal
rights to take particular property in a effective manner. They play most important role in business
organization who provide funds to the business process in order to achieve effective results.
Investors: They are important part of the stakeholder who invest lots of money in the business
organization. An investors are those people and organization who put their money in financial
schemes which expect the return of profits. They use their financial term in order to grow their
money which can be annuity. They invest their money into something in order to achieve profits
in particular time period. They take high risk in order to attain high returns.
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Suppliers: It is also an essential part of the stakeholder which play major role in an organization.
They are party who supply goods and service to the customers (Dalakoura, 2010). They can be a
contractors and vendors. They provide goods and product to another company, it is also a part of
supply chain of a particular business organization.
Customers: They are very important part of an organization. Without these any firm can not be
able to achieve profits in marketplace (Carter and Greer, 2013). Customers are a party or an
individual who buy the goods and products from the company and organization. They have
ability to select the best products and service in order to satisfy their wants in appropriate
manner. Basically they are crate demand and wants. In order to attract more and more customers
is the primary goal of the business process to attain higher returns by them.
Government: It is a group of people with legal authority who are control the nation. They having
right to set the rules and regulation in the country and every one and organization have to
followed these regulation in their process.
All these are the part of the stakeholders which are important to the Zara to implement their
process in market in order to attain success in appropriate manner. On other hand organizational
culture is a systematic process which define the values, beliefs. Every organization having their
unique culture which is more important to attain specific goals and objective in effective manner.
It also define that how a person behave in an organization (Carmeli,Tishler and Edmondson,
2012). Zara is a largest clothing company. It having highly decentralized and flexible culture. In
this organization every employees work together to complete the task effectively. Zara include
those employee who are capable to accept the feedback, and share credit with the team. These
standard is very important for organization which assist in growing the company and maintain
the strong culture of the organization. Every groups member define their new and fresh ideas to
implement in their business process to attain higher success at marketplace. Zara deal with lean
structure of the business process. It will assist in reducing the managerial hierarchy level.
Customers satisfaction is more important to the Zara so that they can produce its products
accordingly and they use information technology to evolute the production process effectively.
So that organizational culture is more important to get best success. The SWOT analysis in also
more important to understand the organization strength, weakness, opportunities and threats.
SWOT analysis of Zara:
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Strength: Zara is a biggest clothing company it having more than approx 2000 stores in the
whole world. It in one of the best Spanish retailer. It also establish their brand name in the
worldwide. They have strong online presence which define online websites who perform their
brand image (Bryson, 2011). Zara produce and offer trendy and well design of products to its
customers.
Weakness: The major weakness of Zara is limited marketing and advertising as compare to other
brands. They having high competitive market share.
Opportunities: Zara wants to explore their business in global markets. They also expand their
business in those areas whew they have not their stores. They attain important of online
marketing in their
Threats: Major threats of Zara is high end merchandisers. Economic downturn and changing
needs of consumers also serve as a threat for the firm (Ang and Van Dyne, 2015). Unnecessary
advertisement of various features of Zara also decline the sale of form's product.
On other hand porter is also an important factor of the business organization which is implement
in the Zara operation process in order to achieve high profitability in the market. This model
implement in the business organization to influence the feasibility of the competition. These
porters models are as follows:
Buyer power: In this there are some peoples and individuals who have loyalty of the Zara. They
purchase their products in order to satisfy their demand in this field.
Supplier power: Zara having low supplier power because of the main aim of this organization is
attract more customers which buy its products toward their merchandises.
New entrants: Profitability is effective part of organization which attract the individuals with lots
of inveiglement in the market (Anderson and Anderson, 2010). It is very difficult to gather all the
employees and workers in a less time period.
Substitutes: In this factors, fashion industry define more and more projects which are define
innovative and creative products at less prise so that large number of customers are attract their
products and service and but its products.
Rivalry: In the world there are not many fast fashion stores like Zara. This assist to the Zara to
attain large number of profits with investing more money in the market.
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These all are the effective models which is used in the organization to define effective process
which assist in attain the large number of profitability and also capture the larger market share
from competitors.
CONCLUSION
In above mentioned essay can be concluded that leadership is more important to the every
organization to lead the team in effective manner so that they can attain goals and objectives in
effective manner. Strategic leadership is a systematic process which decide the effective rules
and regulation which is follows by the leader to lead the people in an organisation. Leaders are
essential to the organization who manage the group of people in appropriate manner and also
resolve the conflict which is arise in the team.
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