Zara Company Analysis Essay Example | Topics and Well Written Essays - 4250 words

Zara Company Analysis - Essay Example This marketing report presents a set for recommendations for the fashion retailer, Zara. These recommendations are based on the analysis of external and internal environment. The analysis of the external environment relies on theories such as the PESTLE Analysis and Porter’s Value Chain Analysis. The analysis of the internal environment relies on the analysis of the company using Resource/ Capabilities Analysis and Value Chain Analysis. Zara is a fashion retailer owned and operated by the Spanish company, Indetix Group. This fashion retailer has introduced a different strategy within the fashion market that goes against the existing strategies of the fashion industry (Anon, nd.). Despite this, or rather on account of this, the company has managed to record profitable growth since its inception. However, in order to pursue further growth, it is necessary to analyze the current strategy. ANALYSIS OF EXTERNAL ENVIRONMENT PESTEL Analysis PESTLE Analysis is a widely used analysis to understand the external environment of the company. It is an acronym for Political, Economic, Social, Technological, Environmental and Legal factors that have an impact on the overall operations of the organization (Henry, 2008). Political Factors Since companies operate within a certain geographic boundary or boundaries, the government has an impact on the company. It impacts through the laws and restrictions placed on the companies. Since Zara operates mainly in Spain and the UK, which falls within the EU countries therefore the political landscape of this area should be understood. The EU is beneficial for the company as it has made the entire region work as a local market. This allows the company to get fair advantage in the entire EU market. Zara is also operating outside Spain and EU markets and in markets such as USA, Dubai and Singapore. In this regard, the company needs to ensure that such countries have friendly relations with the national base of the company which is Spain. Also such countries should have a politically stable government so that the company continues to enjoy friendly terms. Economic Factors In terms of the economic factors, companies all around the world have been seriously hit with the financial c risis that struck the entire world in 2009. This has hampered the buying power on the consumers and most

Management and Organizational Behavior Case Study

Management and Organizational Behavior - Case Study Example r higher positions before sourcing from outside the company as evidenced by the promotion of Aaron Nelson and Kyle Christiansen from state billing office manager to the VP of Technology and director of the new unit of Medical Billing respectively (Case Study: Growth Pains at Mountain States Healthcare 1). Mountain States Healthcare was facing issues of high turnover in the recently consolidated medical billing directorate and was anticipating failing cash flow. These issues were drawing largely from the inflexibility of the leadership of Kyle Christiansen. Christiansen was instigating changes that were causing undesirable results especially on the employees working in his unit. Christiansen made promises to his employees when he rose to power but after two months, he was not delivering on these promises, and this made his juniors doubt his ability. The employees were aggravated over the cut-down of their work roles and flextime. Those in the offices that were being closed down were living for jobs in other companies. The software in the directorate was failing due to overloading. The postponement of issues addressed to Christiansen, his oversimplification of some, and excessive exertion of his authority demonstrated the ineffectiveness of his leadership (Case Study: Growth Pains at M ountain States Healthcare 3). The decision by the Board of Directors of Mountain States Healthcare to expand operations to states beyond Utah was a desirable aspect of the company’s management process. This is because the growth in profits would have led to the company outgrowing the potential of its initial market share. Additionally, the fact that this expansion would increase the profitability of the company’s shareholders showed that the board emphasized social responsibility. The decision to outsource consultancy services on the concern of how to cut on unnecessary administrative costs showed that the board’s management process aspired for objectivity (Case Study: Growth