Zara - strategic review report for the CEO Essay

Zara - strategic review report for the CEO - Essay Example Zara, a brand of Inditex, has achieved to establish its position as a leading firm in the global fashion industry.The strategies of Zara are reviewed in this paper in order to identify the key reasons of the brand’s success. These strategies are evaluated by referring to the organizational internal and external environment as involved in the brand’s operations and performance. Appropriate literature has been used in order to understand the brand’s current strategies and its prospects for future growth. The paper has been divided into four parts. In the first part emphasis is given on the analysis of Zara’s macro and micro environment. In this way, the effectiveness of the brand’s strategies, as aligned with the conditions in the brand’s environment can be evaluated. The second and the third parts of the paper focuses on the challenges that Zara has to face in regard to its internal strategic audit and the management of its stakeholders. In th e fourth part, certain strategic options are presented, as available to Zara under current market conditions. The review of the organization’s environment has proved that the growth of Zara can be related to the interaction of a series of factors, referring both to the internal and the external environment of the brand; the brand’s success cannot be considered as resulted by chance. Introduction This paper focuses on the review and the evaluation of Zara’s strategies taking into consideration the conditions in the brand’s environment. Particular reference is made to the UK market, as the basis for analyzing the performance of Zara, both currently and in the near future. The strategic decisions of Zara are reviewed and evaluated in order to check the brand’s future prospects. In addition, this analysis helps to identify the strategic options appropriate for securing the brand’s further growth. Question 1 [1059 words] In-depth analysis of the competitive forces and strategic issues shaping Zara’s industry from 2012 onwards 1.1 Macro-environment: PESTEL Analysis PESTEL analysis, as a strategic tool, is based on the idea that the performance of an organization can be affected by six factors related to its external environment (Henry 2008). The PESTEL analysis of the UK fashion industry would refer to six elements of this industry (Bowhill 2008): a) Political; Political environment in UK is quite stable; government supports organizational growth in regard to all industries. Recently, on the 13th of March, the British government has asked for an inquiry in regard to the status of the country’s retail sector (Holland 2013), probably under the fear that governmental decisions do not effectively support the