Zara's Organizational Culture: Schein's Framework Analysis Report

This report provides a comprehensive analysis of Zara's organizational culture, focusing on the application of Schein's framework. The report begins with an overview of Zara's organizational background, highlighting its core values of beauty, clarity, functionality, and sustainability, and its strategies for customer service and responding to market trends. The introduction establishes the importance of organizational culture and its impact on performance. The report justifies the use of Schein's model, explaining its focus on fundamental assumptions, values, and behaviors. It then delves into the specifics of Schein's framework, including artifacts, values, and basic assumptions, and analyzes how these elements manifest within Zara's culture. The analysis examines Zara's artifacts, such as store design, language, and technology, and their alignment with social and psychological trends. The report concludes by synthesizing the findings and offering recommendations based on the analysis of Zara's organizational culture using Schein's framework.

Running head: CULTURE AND ORGANIZATION
Culture and Organization
Name of the Student
Name of the University
Author Note

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Table of Content
Organizational Background.......................................................................................................2
Introduction................................................................................................................................3
Explaining /justifying chosen Schein’s organizational culture..................................................4
An explanation of Schein’s organizational culture....................................................................5
Analysis of Schein’s organizational culture with Zara’ organisational culture framework.......7
Conclusion and Recommendation............................................................................................11
References................................................................................................................................12

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Organizational Background
This research report provides a detailed analysis of organisational culture of Zara.
Zara is known to be world’s largest international fashion brand. Zara is known to be bringing
most attractive and responsible fashion as well as enhancing quality of customer service. It
has been identified that Zara’s story starts with opening of its first outlet in Spanish Coastal
city in 1975. It is learnt that Zara’s success lies in its core values that are expressed and
defined as beauty, clarity, functionality and sustainability. As put forward by Lopez and
Fan (2009), developing a highly intimate relationship with consumers, the organization seeks
to respond instinctively to the dynamic needs by actually reacting recent trends as well as
feedback collection through all its collection of products. In addition to this, it is noted that
Zara’s external business strategy is significantly associated with its customer service and
store establishment. For example, in order to enhance the customer service, Zara store applied
Radio Frequency Identification Technology which would help to use cutting-edge system to
detect the locations of garments instantly and demands are put into place and meet the
customers’ demands.
It can be mentioned that secret of Secret of Zara’s success lies in its ability of keeping with
the changing or dynamic fashion trends, which the showcase with no failure. It has also been
identified that strategic ability of Zara enabled the business to launch new collection on the
basis of market-based trends in a rapid manner which further helped the company to beat the
rivals. In this context, Mazaira, Gonzalez and Avendaño, (2003) mentioned that shorter lead
times is another strategy is another trends that allow the organisation to ensure that its stock
clothes that customers exactly want at a time. Likewise, lower quantities are another principle
which is associated with its Zara’s work culture. It is noted that Zara significantly develops

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its artificial scarcity by minimising its exposure to single product item and also by reducing
the quantity of manufactured item of a given category or style.
Introduction
This is research report provides an insightful analysis of organisational culture, its importance
and its impact on organizational performance As put forward Mo (2015), culture of the
organisation is universally defined as underlying beliefs, a set of values and significant ways
of communicating and thereby, it contributes to social and psychological environment of the
organisation. To learn more about how organisational culture shapes social and psychological
environment, it is necessary to learn the impact of organisational culture on organisational
performance. Therefore, the analysis presented in the report significantly focus on that
impact of organisational culture on organisation’s overall business presentation. In order
to gain realistic outcome from the analysis, real-world organisational scenario has been
considered in the report. According to Burt, Dawson and Larke, (2006) organisational culture
is more of a system of shared assumption, values and beliefs, which govern or control how
people behave in organisations.
This means that these shared values hold a strong effect on people and this could
include organisation’s vision, norms, system, symbols, assumptions, languages and other
values. To analyse organisational culture of Zara, stated elements have been considered. It
can be mentioned that when it comes to organisational culture, it is worth stating that
business leaders remain vital to establishment and communication of workplace culture.
According to Cheng, Hines and Grime (2008), organizational culture can affect the way
people and other groups can significantly communicate with each other including clients and
stakeholders. It can also be mentioned that organisational culture trends are also changing
today due to the changing trends of the market. Thereby, the scholars today often emphasise

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that business strategy of the organisation should be aligned with the above stated core
elements of organisational culture.
Explaining /justifying chosen Schein’s organizational culture
It has been identified that when it comes to organisational culture, leadership and cultural
elements respectively goes make their places in the critical discussion. However, Cheng,
Hines and Grime (2008) if a business has to consider the potential impact of organisational
culture, leadership style may not be that core practice that would generate desired outcome
out of the practise. This is because a leader’s approach does not always guarantee or bring
positive changes to all organisational levels but a cultural framework would shape the whole
working environment where each level of management can positively be influenced by the
said cultural elements. On the contrary, frequent selection of Schein model of organisational
culture framework in the context of organizational culture lies in the fact that Schein
framework of organisation is crucially about the fundamental assumptions formulate the
values and then those values further shape the practices and behaviour. Thereby, it can
mentioned that organisational values are the backbone of the business and it is the most
visible part of the business (Tokatli, 2014)
It can be mentioned that Schein model of organisational culture wins over leadership
in the context of organisational culture because under such framework, the organisation do
not just adopt a culture in a single day and rather it is influenced by the past experience and
thereby, it is implemented. In addition to above two core arguments, Ahlert et al., (2009)
mentioned that leadership style fundamentally influences few particular areas of
organisational functions; for example, an effective leadership style may boost the production
of Zara but external business elements like customer service may not be addressed by same
leadership approach. On the contrary, Schein model of organisational culture covers all

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essential elements of the organisation or business. In fact, an appropriate leadership style for
the business can also be a significant element of organizational culture. On the basis of
organisational culture, a business can select appropriate leadership style but vice versa may
not always be possible because leadership approach are influenced by organizational goals,
but organisational culture govern goals development.
An explanation of Schein’s organizational culture
As put forward by Hogan and Coote (2014) Schein developed a framework of
organisational culture where the core assumptions often help to develop values and then
values further help to shape practices and behaviour which is most the significant element of
organisational culture. This means that organisations do not incorporate a culture overnight;
rather it is formed on the basis of past experience and eventually it is implemented. There are
certain levels in Schein’s ranges in organisational culture such as artifacts, values and basic
assumptions. It has been identified that artificats remain the surface of culture in every
organisation. According to Schein et al., (2000), the most fundamental part of the culture is
often noticed by outsider in some particular forms or elements.
 To start with artifacts in Schein’s organizational culture framework, physical
artifacts are often found through the design of architecture as well as interior design,
physical space and its allocation and other office design, decoration, manner of
dressing and even many other moments’ associated with organisational events.
 According to Duden (2011), language often gives away culture through different
modes of speaking, levels and other categories of sound, slogans and some special
expression
 Technology is certainly another great of culture because it significantly reflects and
shapes the values and assumptions and knowledge.

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 It can be mentioned that visible tradition exhibited at the ceremonies, leadership
practise and work culture should guide the way of doing things
Considering the above presented points, Darling (2017) in their organisation’s study
mentioned that artifacts are visible but this does not indicate the fact that artifacts elements
can be understood easily. Thus, it can be further mentioned that artifacts in the organisational
culture may sometimes appear confusing for organisational leader or other audiences groups.
Values:
As put forward by Schneider, Ehrhart and Macey (2013), when the values are
compared to basic assumptions, are always at the higher level of consciousness and it is
certain that values tend to reflect organisational people sharing opinions on ‘ how things
should actually be’. However, it has also been noted that values rarely lead to basic
assumptions even though the values are articulated, arranged and listed on the basis of the
priority. It might happen that organisational leaders find that the values are not able to form a
suitable pattern.
Basic Assumptions
As put forward by Ramdhani, Ramdhani and Ainissyifa (2017), Assumption is also a large
set of beliefs often taken for granted and it remain unchallenged. Members of social groups
can end up developing a specific pattern of fundamental assumption. Such pattern enables the
groups to further develop the fundamental culture. It has been further identified that when the
basic or core policies are known and understood, isolated as well as confusing artifacts
become coherent. However, there can be several paradigm basic assumptions.
 It is noted that assumptions often help to determine what truth is particularly in
physical and social matter or how reality or truth can be determined or discovered.

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 Significant assumption in the group on time; indicating that how time needs to be
measured
 Core assumptions about the intrinsic or any sort of ultimate elements of human
nature; this means this is about whether the human nature is fundamentally good or
bad or whether it can be enhanced.
Analysis of Schein’s organizational culture with Zara’ organisational
culture framework
Organisational culture of Zara indicates the fact that the Zara has a set of artifacts that
are often visible or observed in its organizational culture. When it comes to norms, it is
worth mentioning that the organisation Zara always promotes the fact that beauty and fashion
and thereby, core values of the organizations are also associated with this fact.
Artifacts and Creation
It has been identified that Zara’s business strategies carry broad external marketing
message, especially its stores have unique design supported with enhanced technologies. For
example, its store is decorated with sound-proof glasses, drawers, LED screens and Dolby
sound system. Thereby, Zara stores give the message that ‘living a fashionable life is an art’
(Lopez & Fan, 2009).

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Figure 1: An interior design of Zara fashion store
(Source: Lopez & Fan, 2009)
Nonetheless, Mo (2015) argued that when it comes to artifacts in Zara’s organizational
culture, it can be mentioned that even though Zara’s organizational culture is developed with
external social and demographic trends but as clothing sector has long been facing an intense
competition due to technology penetration in the sector, brand’ strategies are falling short of
innovative ideas. This is because existing ideas may soon be generic due to constant
innovation threats.
Nonetheless, it has also been identified that Schein Organisational Cultural
Framework talks about language which carries the undertone or the modes of speaking,
slogan and all sort of special expression and this is one of the most significant sub-element of
the Artifacts in the culture framework being investigated. Thus, when the same is explored in
Zara’s organisational culture, it has been identified that Zara’s language and special

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expression are significantly associate with social and psychological trends. For example, one
of the product item of Zara carries the message that ‘Freedom is the mood’ and this is a
psychological beliefs that which insists on the social freedom of individuals in the society.
This means that millennial today are much concerned about social freedom and this
psychological and social beliefs has been adapted in Zara’s products (Burt. Dawson & Larke,
2006).
In addition to this, it has also been identified that technology is another sub-element
under the Artifacts in Zara’s organisational culture framework. It is worth mentioning that
technology has now been a significant part of the culture because it is greatly reflecting and
shaping the values and assumptions. According to Cheng, Hines and Grime (2008),
technology is often reflected in ever individual’s life today and particularly the internet and
android’s revolution have made it more quick and easy for all individuals to incorporate
technology in their lives. In order to incorporate this trends in business Zara keeps a track of
all its customers’ digital activities. For example, whenever people search clothing items
online, Zara through its AI incorporation receives the information about the taste and
preferences of consumers –such as the kind of style, colour, brands the customers are looking
for. In addition to this, Zara also users the customers data such as mobile number and email
id to send notification for the new arrivals, offers and discounts. Thus, it can be mentioned
that technology artefact plays a great role in Zara’s organisational culture.
Nonetheless, it can be mentioned that as most of the clothing brands are focusing on
the premium section of the market to differentiate themselves from the competitive crowd
and in this context, investing on the premium section and technology may not be financially
feasible for Zara as there have been several other competitive brands like H&M, GUCCI,
UNIGLO, etc. Interestingly, all of these brands find their own their segments of targeting the

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customer groups. Therefore, Hogan and Coote (2014) mentioned that financial investment for
cultural trends in business can take its toll on Zara’s business.
Values
Marketers today often insist on the fact that values always carry a greater level of
consciousness and they often reflect individuals’ shared opinions in relation to how things
should be dealt on. As put forward by Burt, Dawson and Larke (2006), customers’ insight
remain the holy grail of modern business and likewise more businesses tend to know about
the consumers, more effective they can innovate and compete. Nonetheless, Tokatli (2014)
argued that it can be challenging to generate or have more insight at the right time as well as
have access over them. It is observed that Zara’s success is associated with its values in
which the brand effectively empower its store employees and managers to be sensitive in
particular to customers’ needs and wants. This means the organisation empower its store stuff
and all sales associates to be at the forefront of customers’ queries. In the context values it
can be mentioned that Zara values all its people associated with its business including the
external and internal stakeholders. When it comes to values in the external market
environment, it is often seen that competitive customer research abilities enabled ZARA to
make the product offerings available across all its stores and these are done in relation to
customer needs and wants and cultural difference. For example, the organisation is known for
providing smaller sizes in Japan, special women’s clothes in Arabian nations and the clothes
of various seasonality in South America.
It can be added that such differences in product offering across the nations are widely
facilitated by the frequent interactions between Zara’s regional store managers and other
creative sales associates. Hogan and Coote (2014) stated the fact that every business needs to
value its regional trends and cultures of the places where it is running the business.

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Highlighting the regional trends and rituals are equal to valuing individual’s belief system of
that particular regions. So, to put this in practice, design team of Zara frequently visit
Universities, night clubs, shopping malls to point out what young fashions leaders are
wearing and communicating with them helped the brand to learn about their personal values
and ethics.
Basic Assumptions
As discussed above basic assumption is another core element of Schein’s cultural
framework, in which it is learnt that that which unleashes a pattern of basic assumption
developing among the members of a particular social group and which contributes to the
formation of the core element of organisation’s culture. Such assumption helped the brand
Zara to come up with the concept of customer insight collection in which trend information
flown daily into a particular category of database that are further sent to the designer to create
the services. Lopez and Fan (2009) argued that such trends are often dynamic in nature,
thereby the brands needs to be more proactive in relation to the use of trends implementation.
Conclusion and Recommendation
The above presented analysis clearly states the fact that Zara’s organisational culture is
significantly centred on the mass-marketing approach in which the brand des not respectively
focus on a particular social or cultural trends and thereby its organisational culture is a broad
theme. However, it can be mentioned that such cultural practices often fall generic due to the
increasing level of competition in the market. Thus, to culturally lead ahead in the clothing
sector, Zara needs to:
 Segment its focus: Apart from the mass-marketing practices engrossed in
organisational culture, the brand needs to adopt the cultural trends of a special groups
of customer and this has to be a high-end sector of the market. High-end sector the

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market certainly holds a different cultural and social belief and incorporation of such
cultural trends in business would help the brand to beat the competition. Targeting the
high-end also enhances and boosts the brand image of Zara.
References
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Retailer premium own‐brands: creating customer loyalty through own‐brand products
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Burt, S., Dawson, J., & Larke, R. (2006). Inditex-Zara: re-writing the rules in apparel
retailing. In Strategic issues in international retailing (pp. 83-102). Routledge.
Cheng, R., Hines, T., & Grime, I. (2008). Desired and perceived identities of fashion
retailers. European Journal of Marketing, 42(5/6), 682.
Darling, J. (2017). A conversation with Edgar Schein: Aligning strategy, culture, and
leadership. People & Strategy, 40(2), 64-68.
Duden, A. (2011). Trust and leadership learning culture in organizations. International
Journal of Management Cases, 13(4), 218-223.
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test of Schein's model. Journal of Business Research, 67(8), 1609-1621.
Lopez, C., & Fan, Y. (2009). Internationalisation of the Spanish fashion brand Zara. Journal
of Fashion Marketing and Management: An International Journal.
Mazaira, A., Gonzalez, E., & Avendaño, R. (2003). The role of market orientation on
company performance through the development of sustainable competitive advantage:
the Inditex‐Zara case. Marketing Intelligence & Planning.

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Ramdhani, A., Ramdhani, M. A., & Ainissyifa, H. (2017). Conceptual framework of
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