Strategic planning of the business organization of Zara - Essay Example

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The paper evaluates the case of Zara, the leading fashion brand from Spain and evaluates the various strategies which the brand undertook which lead to its success in the international market of fashion. Zara fashion was established in the year 1975 under the Chain of Inditex groups. …
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Strategic planning of the business organization of Zara
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Download file to see previous pages This study looks into the Luxury brand Zara that aims at delivering the latest fashion to the consumers in an affordable cheap price. Other than the business goals, the organization aims at contributing towards the development of the overall society. The organization has a strong vision of maintaining corporate social responsibility for the uplift of the society. The commitment towards the environment has a strong impact both on the customer satisfaction. The organization dedicates to conserve energy by the maintenance of eco friendly shops and producing fewer wastes in the process of production. As the organization has to deal with products from the animal origin, the organization takes in to consideration that the raw materials does not come from the sacrifice of the animals and they only originate from animals which are raised in the food farms. In matters of corporate objective, Zara fashion aims at being the global leader in the fashion industry, among the stiff rising competition. Zara fashion tripled its size between the period of 1996 and 2000 and the overall profitability of the organization increased at a mammoth rate in between 2001 and 2007. The production process of the organization takes place at a fast pace and the organization launches almost 11,000 items each year. In the year 2010, the organization had accounted sales figure of 8,088 million dollars which speaks volume about the success. At present the organization has its presence in almost 77countries of the world and is efficiently catering to the needs of the fashion conscious people round the world. The company adheres to organizational policies and various strategies which have contributed to the overall success of Zara (Gallaugher, 2008). 3.1 Environmental Analysis In order to study the success factor and the strategies of Zara fashion, the study of the environmental analysis is undertaken to critically highlight the environmental conditions under which the organization operates and to identify the favorable factors and the obstacles which the organizations encounters in carrying out the day to day operations (Lynch, 2009). As the organization is based in Spain and operates largely in the European Union, so the PESTLE analysis is carried out with respect to Spain with a focus on the European Union. Political factors in Spain: The Spanish government maintains the flexible policies for the overall operation of the fashion industry. As the most of the fashion houses thrives on the export of their product, the government maintains policies so that the export of the fashion goods can take place without posing much hindrance to the fashion makers. Because of the leniency of the trade policies maintained by the Spanish government , the fashion makers Zara did not faced any difficult or restriction form the government in carrying out their day to day operations. The political stability within the country also has an influential role in the success of the organization dealing with the fashion products. The market of Zara was further influenced by the liberalization of the world ...Download file to see next pagesRead More
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