Zara Strategic Plan: Implementation, Monitoring, and External Analysis

This report provides a comprehensive analysis of strategic planning concepts in the context of Zara, a multinational retail brand. It begins by outlining the relationship between organizational vision, mission, and strategy, emphasizing how these elements align to achieve business objectives. The report examines the impact of external factors, such as political, economic, social, technological, environmental, and legal (PESTEL) influences, on Zara's strategy. It also analyzes how stakeholder expectations can shape organizational decisions. Furthermore, the report discusses Zara's mission and vision statements, their impact on strategy, and explores various strategy options using modeling tools. Finally, it covers the structure of a strategic plan, stakeholder involvement, dissemination processes, and monitoring systems to ensure successful implementation. This report will be published on Desklib, a platform providing AI-based study tools and solved assignments for students.

STRATEGIC
PLANNING

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
Organizational Vision, Mission, Strategy and their relationship......................................................3
External factors and their impact on organization and how changes can affect organizational
strategy.............................................................................................................................................4
Analysis of how stakeholder expectation can influence organization..............................................5
TASK 2.................................................................................................................................................6
Mission and vision statement of organization..................................................................................6
Impact of vision and mission on its strategy....................................................................................6
How external factors influence organizational strategy...................................................................7
TASK 3.................................................................................................................................................7
Covered in PPT................................................................................................................................7
TASK 4.................................................................................................................................................7
Strategy options for chosen business, using modelling tools...........................................................7
Reviewing potential strategy options...............................................................................................8
Evaluation of options for delivering strategic direction of organization..........................................8
TASK 5.................................................................................................................................................8
Structure of plan...............................................................................................................................8
Stakeholder involvement..................................................................................................................9
Dissemination process......................................................................................................................9
Monitoring systems to ensure successful implementation of strategic plan..................................10
Strategic plan..................................................................................................................................10
CONCLUSION..................................................................................................................................10
REFERENCES...................................................................................................................................12

INTRODUCTION
Strategic planning is the process which helps an organisation in determining their vision for
the future growth of can organisation through which they can meet organizational objectives. The
process of strategic planning is based on developing vision and objectives which can be helpful in
reaching to the vision of an organization. Strategic planning is the process of documenting and
creating a direction for business through which an organisation can meet their objectives (Strategic
planning, 2021). The process of strategic planning outlines decisions and approaches which will be
followed by an organization in order to meet organizational objective. Zara is a multinational retail
brand which was started by Amancio Ortega and Rosalia Mera in 1975. This international clothing
brand is offering fast fashion products which includes- clothing, accessories, shoes, beauty,
swimwear an perfumes range of products. The company is operating with more than 2270 stores all
around the globe. The parent company of Zara is Inditex under which he brand operates. This report
will discuss the concepts of strategic planning in relation to the selected organization and will
outline information classified under various sections. The first section will outline the vision,
mission and objectives and how these factors relate to each other. This section will also discuss
about the factors which can influence business strategy. The next section will discuss options related
to mission and vision statement of the company and will also outline how such factors create an
impact on the organizational strategy.
TASK 1
Organizational Vision, Mission, Strategy and their relationship
Organizational Vision- The vision statement of an organization defines what organisation
needs to achieve in the future. In other words, organizational vision is the goal of a business in
achieving the milestone an organisation wants to accomplish. A vision statement of an organisation
can involve long term objective and outline the standards and objectives which needs to be achieved
in near future. Therefore, a vision statement of an organisation reflects what needs to be achieved in
near future.
Mission- The mission of an organisation defines what needs to be done in order to achieve
the vision of an organization. The purpose is the mission of an organization and this reflects the
values and goals of an organization (What is an organizational mission, 2021). Therefore, a mission
statement is helpful in directing actions of an organization which will be helpful in meeting the
planned vision of business.
Strategy- Organizational strategy is the sum of actions which needs to be taken in order to
accomplish long term objectives of an organization. The elements of organizational strategy,

involves- people, resources, facilities and equipment’s (Organization strategy 2019). The actions
which will be helpful in achieving the organizational objectives are the parts of strategic plans. The
strategy of an organization is based on the mission of the company which needs to be accomplished.
The purpose of strategic planning is to align the mission and vision of company. Mission is
the initial stage whereas vision is the last destination which needs to be accomplished. The vision,
mission and strategy are lined as by defining the vision of an organization. A business. can form
their mission statements which will be reflecting the objectives of business. Therefore, strategy is
based on outlining the mission and vision statement through which whole organization can
collectively work for the accomplishment of organizational objectives.
External factors and their impact on organization and how changes can affect organizational
strategy
The external business environment comprises of various factors, such as- political, social,
economic, technological, environmental and legal factors which creates an impact on the operations
and strategy of an organization. In order to evaluate the change due to external business
environment, PESETEL analysis is used. The external factors and change can create an impact on
business and its strategy, a detailed study of external forces of Zara which can influence is further
discussed below with PESTEL analysis:
Political factors- These external forces involve- policies, leadership, tax policies and
regulations create an impact on the business operations and strategy. In context of Zara, the political
factors, such as- trade agreements are responsible for importing raw material and exporting finished
goods through and any change in such factors can create a direct impact on the import and export
strategy of business (Zara PESTEL analysis, 2019). The most common political factors which
creates an impact on the business are financial regulations of the company which affects the strategy
of business.
Economic factors- These factors involve economic growth, inflation rate, interest rate,
unemployment rate, disposable income is some of the external factors which can bring change in
the organization. In context of Zara, the economic factors, such as- low cost of labour can be an
advantage which can be gained by the company which is an outcome of unemployment. This factor
can lead to decline in purchasing power of customers. Whereas, the incline in economic activity can
support Zara in their business growth and expansion successfully. The economic factor, such as-
incline in labour and overall production cost can make business face huge stress. The change in
external forces, such as- disposable income is responsible to bringing change in the organization
through which the company needs to reconstruct their strategy and operations of business.
Social factors- The social factors involve demographic trends, consumer attitudes,
consumer buying patterns, cultural factors, labour cost are some of the social factors which can

create an impact on the living standards of people, change business strategy and affect
organisational objective. In context of Zara, the company have huge market where they offer variety
of products and services through which they can meet consumer demands. The change in consumer
preferences and opinions can create an impact on the revenues of organization and this can be
responsible for bringing change in the operation such as design and manufacturing of business
(Zara PESTEL analysis, 2018). The social factors such as culture and consumer awareness towards
sustainability is responsible to influence the operations of an organization.
Technological factors- The technological factors such as advancement in technology,
communication approaches for targeting consumers, the approach of manufacturing goods are the
factors which can bring change to the organizational strategy through which this can affect business
operations. In context of Zara, the technological factors, such as- technological innovation has
helped organization in performing their manufacturing an operational activity effectively through
which they can meet consumer demands in timely manner. Such advancements as supported the
brand to focus on enhancing their responsiveness to customers. Due to technological advancements,
Zara implemented RFID technology through which they can manage and track their inventories and
such change has been driven due to advancement in technology.
Environmental factors- The environmental factors such as- incline in consumers awareness
for the environment friendly practices, ethical and sustainable practices are focused by consumers
more nowadays which creates an impact on the business approaches of thus, it can create pressure
for bringing change to the organisation and its strategy. The environment factors such as,
environment conscious customers, due to such factors, Zara has adopted change through which they
can make their brand more sustainable and contribute in making their brand eco-efficient. Such
changes are driven due to environmental factors which will be helpful in creating a strong brand
image with the industry. The other environmental factors, such as- climate change. Biodiversity,
sustainable material, animal welfare has been responsible for bringing change to the organization.
Legal factors- The legal factors, such as- rules and legislations, policies and plans create a
guideline for the company which can affect business strategy and pressurize organisation in
bringing change for operating within the industry (Antipov, V. Y and et.al., 2019). The legal factors,
such as- latest trends, copyrights and other factors are responsible to bring change in the
organisation through Zara can bring change in their laws and successfully enforce copyright.
Analysis of how stakeholder expectation can influence organization
Stakeholders are the entities of business which can be influenced by the operations and
activities which are performed by an organisation. Stakeholders are the people who are connected
with an organization and can be owners, investors, personnel’s, customers, suppliers, creditors,

government and communities. Stakeholder’s analysis is the approach which is used to understand
the needs and expectation of stakeholders and it also supports in evaluating the roles an type of
stakeholders who are involved in the business (Stakeholders influence in plan, 2021). Stakeholders
play a crucial role in an organisation and a plan created by an organisation is based on meeting their
needs and demands. The authority and interest of stakeholders can be analysed through stakeholder
analysis through which a business can meet their objectives and ensure organizational success.
In context of Zara, the company must ensure expectations of their stakeholders through
which they can ensure smooth functioning and process of business. As an organization focuses on
meeting the concerns of their stakeholders, this will be helpful in ensuring continuous functioning
of an organization, as this will also support in meeting the organisational objective in timely manner
and ensuring business success.
TASK 2
Mission and vision statement of organization
Vision of Zara- The vision statement of Zara is to become known international design
centre where all talented personnel’s can be a part of brand and collectively work towards brand
success and enhance sustainability of an organization (Bryson, J. M., Edwards, L. H. and Van Slyke,
D. M., 2018). As Zara focus on sustainable development of the society, it is the vision of company
to develop society and improve the environment. The vision of the brand is to create a benchmark
with the help of their creativity and innovation they can secure their position as leading fashion
company in retail industry.
Mission of Zara- The mission statement of Zara is to be the best at everything the brand do.
As the mission statement of the company focuses on becoming the best global brand, Zara aims to
bring unique value through their brand through which they can differentiate their brand from other
competitors. The mission of the company is to offer sustainable fashion at affordable prices through
which consumer demands and base can be maintained.
Impact of vision and mission on its strategy
As mission and vision statement is the foundation for developing a business strategy, this
can be helpful in forming business strategies which can supports an organization in meeting their
objectives. In case of Zara, the vision and mission statement of the company focuses on being
different by focusing on bringing change to the environment where they can take ownership
towards the betterment of the overall community (Ehrlich, H., McKenney, M. and Elkbuli, A.,
2020). Therefore, the mission and vision can create an impact on the strategy of an organization as
any change in mission and vision of business needs change in the strategy which will be helpful in

meeting the planned objectives.
How external factors influence organizational strategy
From the analysis of external factors with the help of PESTEL analysis, this can be stated
that there are various external forces which are responsible to create an impact on the organisational
strategy of business. In case of Zara, the PESTEL analysis of company focuses on defines that
political, economic, social, technological, environmental and legal factor are responsible to bring
change in the organization (Esfahani, P., Mosadeghrad, A. M. and Akbarisari, A., 2018). Some of
the external forces, such as- unemployment has offered opportunity to the brand to employ low
wages workers. The other external factors, such as- political instability, economic recession,
technological advancements, cultural awareness, change in consumer preferences are some of the
factors which were responsible for creating an impact on the strategy of an organization.
TASK 3
Covered in PPT
TASK 4
Strategy options for chosen business, using modelling tools
Ansoff matrix
Market penetration- Zara's market penetration is indicated by the fact that the company
recognises the value of capturing a market for a commodity like fashion. The firm has been able to
become a worldwide leader while remaining competitive as a result of this market penetration;
otherwise, the company would have had a negative influence and would have diminished.
Product development- Product development is one of the company's most crucial growth
areas. Zara fashion believes in constant and regular growth in a number of methods. The
corporation has made strides in both creating new product lines and enhancing or developing
current ones. Zara's reputation and success as a worldwide fashion brand is primarily due to this
growth-oriented product development technique.
Market development- Zara realised that in order to continue global expansion, she needed
to expand into heavily populated Asian countries like India (George, B., Walker, R. M. and Monster,
J., 2019). This constant market expansion provided a solid basis for the company, allowing it to
establish itself as a successful international brand. The success of the corporation in Asian markets
is partly attributable to its reputation as a strong European brand.
Diversification- In order to move the firm ahead in terms of market and product

development, Zara engaged on an entirely related diversification strategy. The purpose of expanding
into home décor is to broaden the range of services while keeping the original company's
personality intact. This permits the company to stay afloat during difficult times, and the diversified
business helps to keep the original business afloat in the event of a temporary setback. This variety
has not contributed to the company's success, but it has provided solid support for the company's
purpose of confidently expanding and making wise decisions.
Reviewing potential strategy options
In context of Zara, the company follows diversification strategy through which they can bring
innovation to their product range which will be helpful for the grand in meeting consumer demands
(Hanlon, A., 2022). Therefore, Zara incorporates diversification strategy through which they can
meet consumer demands which can be done through understanding consumer preferences with
extensive research, such practice is helpful for making unique product development which is used
for strengthening the competitive position of the company within the industry.
Evaluation of options for delivering strategic direction of organization
In case of Zara, as the company will be following diversification strategy which will support
the brand in bringing innovation to their product range through which they can sustain their
competitive position within the industry. Such strategies will support in development of business
and will also foster organizational growth. With the help of innovation and diversification in
product range, this will support the fashion brand in developing a strong consumer base in the
industry through which they can generate higher revenues and maximize business profitability.
TASK 5
Structure of plan
In order to form a plan, an organisation use SOSTAC model through which they can carry
out all actions effectively which will be helpful in meeting organizational objectives. The structure
of plan which will be followed in order to achieve the objective of business plan is:
Executive summary- This represents the strategies and objectives which needs to be met. In case of
Zara, the company will be launching new sustainable material clothing range at their Singapore
outlet.
Situation analysis- This analysis gives representation of the current position and competitiveness of
the organization. In order to understand the current situation of company, SWOT analysis have been
stated above. The strengths of the company is their unique design, whereas lack of advertisement is
the weakness of company (Mallon, W. T., 2019). In case of opportunities, the company can make
use of e-commerce platforms whereas, high competition is a challenging factor the organization.

Objectives- Zara will focus on introducing the sustainable clothing range in Singapore and will
increase the profit margin by 15%.
Strategy- In this stage, STP will be done to meet the organizational objectives.
Tactics-in this phase, Zara will plan a marketing mix where the company will evaluate price, place,
product and promotion.
Action- In this phase, Zara will implement the planned strategies and tactics through which they can
make progress towards achieving organizational objectives.
Control- This is the last stage, where the overall plan will be monitored and evaluated. The plan will
also be analysed with the help of KPI through which they can make future changes can be made.
Stakeholder involvement
Stakeholders are the people who have interest in the organization and some stakeholder have
authority which can give the power to influence the operations of business. The role of stakeholders
differs from organization to organization and on the type of project or situations. Stakeholders play
a crucial role in developing a business plan where they can share ideas which will be helpful in
providing ideas and supports in developing potential solutions. They also support in resolving
conflicts and problems which has been faced by them (Role of stakeholders in process, 2019). With
the help of stakeholder, an organization can prevent unforeseen problem throughout the business
plan. In context of Zara, the stakeholders of Zara are their owners, employees, customers, suppliers.
Investors and government. These stakeholders of the company play a crucial role in business plan
and employees can support the organization in attracting customers and making progresses in the
business plan.
Dissemination process
The term dissemination refers to the process of sharing research finding with stakeholders
through which to ensure stakeholders are informed and committed to the plan. In context of Zara,
the dissemination process is the approach followed by the company to broadcast and share
information to larger or greater number of audience or public (Ropianto, M and et.al., 2017). In
order to ensure that all information is shared to shareholders, Zara will follow various dissemination
process, these processes are listed below:
 Zara will publish program or policy brief.
 The company will publish project findings in national journals and publications.
 Zara will communicate with their stakeholders through national conference bad meetings.
These meeting or conferences will be organized for professional organizations.
 The company will present the program outcomes to local community groups and other
stakeholders.

 The data will be summarized by Zara in progress report of business in order to share
information with finders and stakeholders.
Monitoring systems to ensure successful implementation of strategic plan
In order to ensure successful implementation of strategic plan, an organization will set a clear
foal and define them to their team members. The Zara will further discuss the roles, responsibilities
and delegate the work accordingly and set a performance standard. Therefore, by making use of
performance analysis and benchmarking, the fashion company will ensure successful
implementation of strategic plan.
Strategic plan
A strategic plan for Zara is defined below:
Executive summary- This plan will focus on bringing change to the clothing range and innovate
sustainable material for the range in Singapore outlet through which Zara can attract customers and
generate higher revenues.
Situation analysis- the SWOT analysis of Zara defines their unique design and global presence has
been a strength for the organization. Whereas high competition, lack of advertisement and global
pandemic has bene weakness and threat for the fashion retail company.
Objectives- Zara will be introducing sustainable clothing range in Singapore store through which
they can sored their initiative of sustainability development and maximize business profitability and
success globally.
Strategy- the business strategy followed by the organization will be STP, which will help Zara to
segment their market on the basis of their demographic and geographic segments. In order to target
and position the products and services, Zara will focus on planning innovative strategies which will
be helpful in meeting such changes.
Tactics- in this phase, Zara will plan pricing strategies through which they can attract customer
attention and promote their products through traditional and modern marketing strategies. the
company will also make use of social media platforms through which they can attract customers
and generate higher revenues.
Action- In case of Zara, the company will execute the planned strategy through which they can
meet organizational objective and maximize business profitability.
Control- in this stage, the company will make use of benchmarking and performance evaluation
through which they can evaluate and monitor the progress and make further modifications.
CONCLUSION
From the above report, it can be concluded that strategic planning is the approach which

helps in formulating strategies, organizing activities and carrying out all actions which can be
helpful in meeting organizational objectives. It can be understood that mission and vision statement
of an organization supports them in forming strategies through which they can generate higher
revenues and maximize business profitability through which they can gain competitive advantage of
from their business strategies. Business environment comprises of various factors and in order to
evaluate such internal and external factors, different models are used through which opportunities
and risk can be evaluated. It can be understood that there are various stakeholders which are
involved in business which can have power and interest in the operations of an organization and
such authority can affect the functions of business.

REFERENCES
Books and journals
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Bryson, J. M., Edwards, L. H. and Van Slyke, D. M., 2018. Getting strategic about strategic
planning research. Public management review, 20(3), pp.317-339.
Ehrlich, H., McKenney, M. and Elkbuli, A., 2020. Strategic planning and recommendations for
healthcare workers during the COVID-19 pandemic. The American journal of emergency
medicine, 38(7), pp.1446-1447.
Esfahani, P., Mosadeghrad, A. M. and Akbarisari, A., 2018. The success of strategic planning in
health care organizations of Iran. International journal of health care quality assurance.
George, B., Walker, R. M. and Monster, J., 2019. Does strategic planning improve organizational
performance? A meta‐analysis. Public Administration Review, 79(6), pp.810-819.
Hanlon, A., 2022. Digital marketing: strategic planning & integration. Sage.
Mallon, W. T., 2019. Does strategic planning matter?. Academic Medicine, 94(10), pp.1408-1411.
Ropianto, M and et.al., 2017. Optimization of Strategic Planning Organization in the Framework of
Achievement Objectives of Education. Advances in Social Science, Education and
Humanities Research (ASSEHR), 149(2), pp.149-151.
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