Zara: Leadership, Operational Management and Business Environment

This report provides an in-depth analysis of Zara's leadership and operational management. It begins by explaining the roles of leaders and managers in different business situations, such as internal conflicts and resistance to change, with specific examples. The report then explores various leadership styles and theories, including situational, system, and contingency leadership, along with the traits of effective leaders, within the context of Zara. Furthermore, it defines key methods of operation management, such as Total Quality Management (TQM) and Lean Manufacturing, highlighting their importance and the roles of leaders and managers in implementing them. The report also discusses the strengths and weaknesses of different approaches and evaluates factors affecting operational management and decision-making, as well as the impact of environmental factors on the business. The analysis emphasizes the importance of effective leadership and operational strategies in achieving business objectives and adapting to changing market conditions.

Management &
operation
Contents
INTRODUCTION...........................................................................................................................2
TASK2.............................................................................................................................................2

P2: Explain the role or function of leader and manager in different business situations with
examples.................................................................................................................................2
P3: Explain leadership styles and theories in Zara’s context.................................................4
M2: Define strength and weaknesses of different approaches towards situation in context of
Zara.........................................................................................................................................5
D1: Discuss critical analysis of leadership theories with respect to given organisation........5
TASK3.............................................................................................................................................6
P4: Define key methods to operation management & role of leaders or managers...............6
P5: Identify importance of operation management of Zara....................................................7
M3: Explain how leaders and managers can improve operational efficiency in order to meet
business objectives.................................................................................................................8
D2: Evaluate critically operational management and factors that impacts business
environment............................................................................................................................8
TASK4.............................................................................................................................................8
P6: Evaluate factors that affect operational management as well as decision making of top
management............................................................................................................................8
M4: Identify how environmental factors affect business.......................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

1

INTRODUCTION
Management is considered as strategic function of management that indulge in variety of
activities such as- planning, organising, staffing, directing and controlling of equipments,
resources including work and human and making plans & procedures for effective functioning ad
operation of business that leads to achievement of business objectives in effective manner (Reid
and Sanders, 2019).
Operation is related to administrative department of business entities that is responsible
for directing or managing of research and producing & manufacturing of goods and services as
per the demand of market trends and customers.
Zara is a Spanish clothing retailer company that deals in variety of products such as- shoes,
accessories, clothing, beauty and perfume products and swimwear. It was formulated at
Municipality of Arteixo, Spain in 1947. It is known as world’s largest apparel retailer company.
This report is based on operation management of Zara. Different roles and functions of
leaders and managers are explained within the report with considering of styles of leadership.
Moreover, importance of operation management and role or functions of leader & manager are
discussed with defining factors that impact business environment and performance.
TASK2
P2: Explain the role or function of leader and manager in different business situations with
examples.
Situation1
Internal conflicts: It refers as the situation where there is conflict between employees and staffs
that creates barriers for effective operation and management of business. This brings
ineffectiveness and continuity in business operations and affects performance and productivity of
employees as well as organisation (Ivanov, Tsipoulanidis and Schönberger, 2017). Thus in case
of conflict the roles of leader and function of manager of Zara are explained below:
Role of Leader: In conflict arise situation of Zara leader of firm should encourage employees to
engage in conflict resolution conversation and mutually agrees upon a solution that is beneficial
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for both employees and organisation. In terms of resolving conflict leader of respective firm can
use different motivational tools such as offering employees suitable time and authority to decide
to resolve conflicts by their own and this will bring effective skills and proficiency between
people of organisation towards taking professionalism over personal grudges and disagreements.
Function of Manager: As per above situation of Zara manager should identify and analyse the
seriousness of problem and then finding out effective solutions for resolution of conflicts that
affected organisational performance and operational activities. In terms of resolving conflicts
manager of respective business should organise decision making process or program for
resolving conflicts through fronting both parties and obtain mutual solution. This leads to
effective resolution of employee’s problems that contributes to successful management of
organisation.
Situation2
Resistance to change: This situation occurs when respective business thinking to obtain a
change within organisation in order to deal with different circumstances such as- development of
new products and modification of existing in order to raise market shares and brand image of
business. Employees usually resist changes when they are not involved in decision-making and
sudden announced by top management (Fettermann and et. al., 2018). In this particular situation
role and function of leader or manager of respective business are considered as under:
Role of Leader: From above situation of Zara it is responsibility of leaders to motivate and
influence employees and staffs towards acceptance of required change by communicating
employees that change is beneficial for them as it develop their personal and professional skills
and also raise their income and incentives. So, that they can work hard and reach full potential
that ahs prominent impact on position of firm and leads to effective implementation of needed
change for growth of business.
Function of Manager: In terms of Zara manager plays prominent function while introducing
change within organisational culture. Manger should involve employees or staffs in decision-
making process of implementing change and communicating vision and mission so that
employees can well aware about requirement of change and accept it & word hard for
achievement of desired targets. Through effective communication between management and
subordinates builds trust among each other and results in effective management of business
operations that leads to higher the productivity and performance of organisation.
3

P3: Explain leadership styles and theories in Zara’s context.
There are different theories and models of leadership that helps & guide leaders to
encourage and motivate employees towards achievement of business objectives and goals. in
context of Zara these are explained below:
Situational Leadership: It is an adaptive leadership style that encourages leaders to take stock
for their team members, think about variables at work place and choose effective leadership style
based on situation (Situational Leadership. 2020). As per this style leadership in divided into
four categories explained as follows: Telling Leaders: In terms of Zara can use this style in disaster management situation.
Telling leaders are those who make decisions and then communicate them with their
subordinates. Selling Leaders: This is effective leadership style for respective organisation based on
maintaining cooperation between teams or groups. Selling leaders are those who sell their
knowledge and idea to subordinates. Participative Leaders: In context of Zara this leadership style helps in resolving
conflicts. Participative leaders are those who invite and engaged their employees in
decision making process and bring two way communications. Delegating leaders: This is beneficial for respective organisation in terms of making
employees independent and gives them full freedom to perform task & duties. These are
considered as leaders who provide limited guidance to subordinates.
System Leadership: This is another important style of leadership that is based in the specific
skills and knowledge gained from past experiences which brings inspiring image of leaders and
influence other to become successful leader. In context of leaders of Zara can build a situation
within organisation where everyone can work hard for attainment of required business
objectives.
Contingency Leadership: It is effective leadership not based on unique skills and expertise.
This style or method of leadership makes leaders enable to choose different solutions for several
business problems for effective implementation of solutions. It is based on the statement that
effectiveness of leaders is contingent in whether their leadership style suites a particular situation
or not. In terms of respective company can use this style with full freedom and flexibility
(Barnes, 2018).
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Traits of Leadership: These are the specific skills and characteristics on people make them
capable of proving guidance & leading behaviours or performances of others. In context of Zara
these are considered as follows:
Effective communication skills: In terms of respective firm’s leaders have effective
communications skills that bring impression on others in order to become effective leaders.
Creativity and innovation skills: Another important characteristic that should be posses by
leaders of Zara in terms of becoming successful leaders are innovation and creation capabilities
to bring change within organisational culture.
Motivating & encouraging skills: Leaders of Zara should have motivating and influencing skills
in order to become effectual leaders and gain impressive performance from subordinates Chary,
2017).
Responsibility & accountability: For getting effective management of operational activities
leaders of respective company should take responsibility or accountability towards their works
and promises done with subordinates.
Honesty and Empathy: Leaders of Zara should have honesty and empathy towards their
employees and staffs for getting trust from subordinates.
M2: Define strength and weaknesses of different approaches towards situation in context of Zara.
In terms of Zara leadership teams of business is major strength of business that leads to
obtaining desired results. As per above situations leadership team has capability to motivate and
encourage human resources for resolve internal conflicts and works hard for accomplishment of
changing results and objective of organisation. Zara has well trained and skilled staff that has
prominent role in highest position of business and leads to effectiveness in business results.
Respective business has some limitation also based on low safety of stocks that leads to increase
breakage cost of its products and goods contributes to rising business expenses.
D1: Discuss critical analysis of leadership theories with respect to given organisation.
As per above discussion of leadership styles and theories it is observed that situational
style of leadership is suitable for Zara due to its prominent benefits over organisation. Benefits of
it include- it is very easy approach to use, simple method that enable leaders to evaluate situation
and implement correct style of leadership. As per this style leaders are allow to change
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management styles in order to fit with situations. On the other side it has some drawbacks that
affects respective firm is it can divert attention from politics and strategies made for long term.
TASK3
P4: Define key methods to operation management & role of leaders or managers.
There are various tools and techniques that have prominent impact on performance and
productivity of respective organisation which contributes to accomplishment of business
objectives and goals (Hitt and et. al., 2016).
. Following are the operation management approach with respect to Zara:
Total Quality Management: This is classical approach of operation management that helps
organisations to reduce waste & unnecessary cost indulges in production and manufacturing of
goods and products. It works on the basis of statement that prevention of loss is better as
compared to compromising on quality of goods and services. Total quality management based on
four methods considered as follows:
Prevention cost: In this method of quality management efforts are taken to eliminate
poor quality of products. In terms of respective organisation it can be achieved through
development of item in a way that ensures durability, longevity. It is necessary for providing
effective training to staffs in order to prevent quality and material that leads to satisfy customer’s
needs & wants.
Appraisal cost: Another important technique used by business organisation in terms of
managing total quality of production based on checking and inspections material used for
finished products which is root of every good (Bromiley and Rau, 2016). In terms of respective
organisation can use this approach to manage quality of raw materials that leads to ensure
effective quality of products.
Internal failure cost: It is the cost associated with breaking or founding defect in any
product or good that consumes time and efforts of business in reproducing of product and loos
customer’s interests. Thus it is very expensive and time consuming method of total quality
management that consume time and efforts of business.
External failure cost: It is the cost associate with quality of products reaches out after
delivery of products towards customers and affects brand reputation of business associated with
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its product and service quality. For instance cost associated with warranty claims, purchase
return etc.
Lean Manufacturing: This is another important method of managing production and
operational costs and wastage of business organisations. It refers as set of techniques that helps
in analysing & eliminating of waste that is bring by overload or unevenness of activities related
to process of manufacturing (Karlsson, 2016). According to this approach waste is divided into
Mura: It refers as unevenness or goods & products arise due to flexible demands and
requirement of target market. Muri: Another type of waste as per lean manufacturing method
occurs through too much work at a time which results in overburden. Muda: It is considered as
the waste arises in process of non-value added work. Lean is the approach that helps in rising
product value and reduces unnecessary waste of production.
P5: Identify importance of operation management of Zara.
Operation management is related with planning, staffing, managing and controlling of
production and manufacturing activities and processes of a business entity. It has prominent
impact on business in order to gain objectives in successful and effective manner (Mišić and
Perakis, 2020). In terms of Zara following are the importance of operational management
towards accomplishment of business goals:
Increment in profit: Operational management in effective ways helps to maximise the profits
and revenues of firm through offering effective quality and material of goods and products that
leads to enlarge business area and enhance profit opportunities.
Raise market share: Although reducing wastage in production and manufacturing process leads
to increase market shares of business and build effective brand reputation and image that helps in
higher customers awareness and investors attraction towards rise investment on business.
Enhance customer base: Effective operation of product quality and eliminating waste in process
leads to raise demand of its goods and services that leads to raise customer base of firm in terms
of retaining older customers as well as gain new or competitor’s customers and satisfying them
with required items.
Reduces waste: Operation management plays significant role in eliminating waste by identifying
it from very basic level to final projection that helps in making products and services effective
and durable for customers.
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Satisfying customers: Through eliminating wastage and ineffectiveness in manufacturing &
operation process helps in creating better quality of goods and products that leads to satisfying
needs and expectation of customers and help them in fulfilment of their requirements (Roth and
Rosenzweig, 2020).
Eliminating operational costs: Operational management helps in controlling business resources
ineffective and efficient manner that leads to reduce operational cost of business and create
higher profits for organisation.
M3: Explain how leaders and managers can improve operational efficiency in order to meet
business objectives.
Although above techniques managers and leaders of respective firm should use total quality
management method to reduce waste of firm that negative impacts on business reputation as well
as functioning and effective operation of firm. Leaders & manages can use total quality
management in order to achieve effectiveness and efficiency of production and manufacturing
process of business that leads to raise productivity and profit of respective business.
D2: Evaluate critically operational management and factors that impacts business environment.
As per above discussion on operational management approaches and importance of it in
accomplishment of business objectives it is observed that it has some benefits in context of
respective organisation including- maximise profits and sales revenues of business. Effective
implementation of operational methods leads to reduce the wastage and cost associated within
process. It has some negative impacts also it is not only aspect for achievement of business
objectives in effective manner other factors like employees, culture may affect business
performance.
TASK4
P6: Evaluate factors that affect operational management as well as decision making of top
management.
PESTLE Analysis
Political: United Kingdom have political stability and reducing taxations based on
political factor of country that exercise positive impacts over Zara due to its immense
contribution in donations and effective relationships with political parties.
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Economical: It is another important factor that has significant impact on respective
organisation due to huge support in boosting national economy of UK and generating
employment opportunities of general public. Thus in terms of Zara economic factor creates huge
expansion opportunities (Ivanov and et. al., 2020).
Social: Higher living standards of UK public and buying habits of them towards effective
goods and services leads positive impact over Zara due to its effective quality at affordable
prices and offering of latest trends and fashionable products that has prominent impact on
boosting profit and bringing huge growth opportunities.
Technological: UK is more concerned in terms of technology that has positive impact on
respective company based on use of technological advanced equipments in its production and
manufacturing process and activities that creates greater opportunities in terms of business
expansion (Albergaria and Jabbour, 2020).
Legal: United Kingdom is not much liberal in terms of legislation towards safety and
protection of labour and general public who buy products and services from business
organisations. Thus in order to sustain business it is essential for Zara to concentrate of follow up
of governmental legislations in effective manner.
Environmental: Last but not lest element of pestle analysis reflects governmental
strictness of UK for saving country from harms. Thus in terms of future growth it is advisable for
Zara to consider environmental policies effectively so as to future growth of business.
M4: Identify how environmental factors affect business.
Although above discussion it is observed that there are various factors of external
environment that affects position and future growth of respective organisation. Zara uses
effective quality and invests needed money on research and development that has significant
impact in order to deal with socials and economical factor of macro environment. In terms of
dealing with environment, political and legal factors of UK Zara focus on use of renewable
resources for production, generating employment opportunities and taking care of employee and
labour interests.
CONCLUSION
From above report it is summarised that there are variety of responsibilities and functions
of leaders, managers varies according to different situations. Further, several leadership styles
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and traits helps leaders to exercise control over others and guide them for effective
performances. Moreover, approaches of leaders and managers and how they are important for
achievement of business targets are explained in above report. At last environmental factors that
have prominent influence over management of operational activities as well as decision-making
process of top level management of respective firm are considered as above report.
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REFERENCES
Books and Journals
Barnes, D., 2018. Operations Management. Macmillan International Higher Education.
Chary, S.N., 2017. Production and operations management. McGraw Hill Education.
Choi, T.M., Wallace, S.W. and Wang, Y., 2018. Big data analytics in operations
management. Production and Operations Management. 27(10). pp.1868-1883.
Fettermann, D.C., and et. al., 2018. How does Industry 4.0 contribute to operations
management?. Journal of Industrial and Production Engineering. 35(4). pp.255-268.
Ivanov, D., Tsipoulanidis, A. and Schönberger, J., 2017. Global supply chain and operations
management. A decision-oriented introduction to the creation of value, 2.
Reid, R.D. and Sanders, N.R., 2019. Operations management: an integrated approach. John
Wiley & Sons.
Hitt, M.A. and et. al., 2016. Resource based theory in operations management research. Journal
of Operations Management. 41. pp.77-94.
Bromiley, P. and Rau, D., 2016. Operations management and the resource based view: Another
view. Journal of Operations Management. 41. pp.95-106.
Karlsson, C. ed., 2016. Research methods for operations management. Routledge.
Mišić, V.V. and Perakis, G., 2020. Data analytics in operations management: A
review. Manufacturing & Service Operations Management. 22(1). pp.158-169.
Roth, A. and Rosenzweig, E., 2020. Advancing Empirical Science in Operations Management
Research: A Clarion Call to Action. Manufacturing & Service Operations Management.
22(1). pp.179-190.
Ivanov, D. and et. al., 2020. Researchers' perspectives on Industry 4.0: multi-disciplinary
analysis and opportunities for operations management. International Journal of
Production Research, pp.1-24.
Albergaria, M. and Jabbour, C.J.C., 2020. The role of big data analytics capabilities (BDAC) in
understanding the challenges of service information and operations management in the
sharing economy: Evidence of peer effects in libraries. International Journal of
Information Management. 51. p.102023.
Online
Situational Leadership. 2020. [Online] Available through < https://situational.com/situational-
leadership/>./
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