The Global Presence Of Zara Commerce Essay

The Global Presence Of Zara Commerce Essay PESTLE Analysis is a type of situation analysis where we need before starting market decisions or business plans. It is extremely important to identify the external environment. The only way to accomplish our goal is through a PESTLE analysis which contains six factors that influence on a business: Political, Economic, Social, Technological, Environmental and Legal. Besides it is also very important for a company to be fully awake of the actions their competitors take. These kinds of factors change constantly. It is no surprise why every time we talk about fashion the same name always comes up: Zara. The largest and the most famous Spanish clothing company in the world. There stores covers almost every continent in the world. The Zara Company was established in 1975 by Amancio Orgega, Zara is the flagship of Inditex (Industria del Diseà ±o Textil, S.A.), the company is located in Galicia, the north-west part of Spain. In a relatively short time frame Inditex has become one of the biggest clothing retailer in the world with 2,692 stores spread across 62 countries worldwide by the end of January 2006. In addition to Zara which accounted for 66 percent of the groups turnover in 2005, Inditex owns seven smaller store brands: Bershka (avantgarde clothing), Pull and Bear (youth casual clothes), Massimo Dutti (quality and conventional fashion), Oysho (undergarment chain), Stradivarius (trendy garments for young women), Kiddys Class (childrens fashion), and Zara Home (household textiles). Political Factors The government and political parties are accountable for evolving the political environment in a country. The chief silent factor in a business is government; they can help an industry by using the form of policies. Zara has been present in Spain, and merely one more main distribution centre for Europe. In addition, the political help that is provided for expansion of the business in other countries must be assessed critically. Because European countries have predictable and safe economic environments, Zara has choices to expand its business around Europe. And these are some of the most important pull factors that give a clear definition of the internationalisation of Zara include: The 1986 admission of Spain in the EU; The globalisation of the economy potential economies of scale; The homogenisation of consumption patterns across nations Zaras believes that national frontiers are no impediment to sharing a single fashion culture The eradication of export obstructions and the growth of Information Technology. (Lopez Fan, 2009). As we know already Zara is a Spanish company so establishing a new branch in another country and all the terms which are related to taxation are political factors for Zara group. The political emphasize on the role of goverment and its effects on our company, and also extent of participation in a political situation. For example Indian government is willing to provide foreign investment in their nation; The Company Zara was provided an open market by India. However the government of India has its own policy which is to be followed by companies as Zara which formed a joint venture with TATA (Shah, 2011) Economic factors Production not transferred to low cost locations: Zara resisted the famous in industry trend to produce fashion cheaply in countries like China. Zara states that this offers more control as it controls most of its steps on the Supply Chain, the design, manufacture and the distribution of products (CNN, 2001). In the UK, half of what products Zara sells are made in Spain, a quarter in the rest of Europe and another quarter in countries in Africa and Asia. For example, longer shelf life clothing such as t-shirts is outsourced to cheap suppliers mostly in Asia and Turkey (Business Week, 2006). Zero Advertising Policy: The rarest company policy is the policy not to advertise. While Zaras competitors mostly rely on expensive advertising campaigns, Zara prefers to invest into opening new stores instead (CNN, 2001). Producer of nearly 11,000 items annually: There is a large product range in the Zara Company. While the competitors of Zara produce about 2000-4000 items annually, Zara produces a whole 11 000 items. In addition brand loyalty is built and an increased number of customer visits as a result of Zara changing its designs every two weeks. A customer visit in Spain on a high street in Zara is 17 times a year compared to 3 times in the average street stores. (The Guardian, 2002). Shortening Product Life Cycle: While the designing of a new product and getting it to the stores by industry takes 6 months, Zara needs just 2 weeks to do the same (Business Week, 2006). To recap, Zara breaks all the guidelines, but it seems that using this strategy proves to be very successful, because Zara is considered to be one of the largest stores in industry. Social Factors Growing of income: People began to look for a high quality and comfortable life when their disposable personal income rose. A wide market share is provided to Zara from this kind of trend. Personalized consumption turns into the mainstream of society. A major guarantor of Zaras success is a small amount, variety, cheap. Fast Fashion: When talking about the strategy of design, an article in Business world Magazine defines it as follows: Zara was a fashion imitator. It focused its attention on understanding the fashion items that its customers wanted and then delivering them, rather than on promoting predicted seasons trends via fashion shows and similar channels of influence, which the fashion industry traditionally used. There will be a depreciation of 0.7% of fashion goods every single day. A new product, from its designing to manufacture, logistics operation and the final sale, needs only about 2 or 3 weeks in Zara. Affordable Fashion: Fashion has received attention by a growing number of people. However, only a small amount of people can afford it because fashion is a masterwork of top designers. By tracking these fashion elements, the designers of Zara design their own product in order to make it affordable to most consumers (Badu, 2010). Technological Factors RD and Production 1. Fast production: Zaras deliveries take up to 6 weeks instead of 6 months which is usual for their competitors.(Ghemawat Nueno, 2006). 2. It is easy for Zara to control their suppliers since they amount to 20. These 20 suppliers account for 70% of Zaras production. Other companies for example have 200 suppliers or even more. Logistic 1. Zara have their own distribution centre with an order to delivery time of 24 hours for Europe and 48 hours for USA and Asia (Tokatli, 2007). 2. The shops receive two deliveries from Zaras distribution centre. Which gives the shops the opportunity to have low inventory and a high turnaround within the shop (Lopez Fan, 2009) (Ghemawat Nueno, 2006). Flexible Supply Chain 1.Zara is vertically integrated and controls its entire production chain. An effect of great importance of the control is the re-reducing the bullwhip effect. (Ghemawat Nueno, 2006) 2. Zara has very short lead times. The Agility of their supply chain allows Zara to deliver from product design to the final customer within 2 weeks for repeat models or 5 weeks for new products (Mazaira, Gonzà ¡lez, Avendano, 2003). Environmental Factors Zara tries to help the sustainable growth of the society and the environments which it interplays with. This dedication to the environment is a fragment of the Inditex group corporate social responsibility policy. Objectives and Actions: At the sores: Zara puts a lot of effort on eco efficiency at their shops. Energy saving is one of the key approaches to ecological preservation the company embraces. Another approach is the development of efficient management models for their stores that proposes some restrictions or changes to be carried into effect for all of the companys processes, from the design of the store itself, the lighting and heating or cooling system equipment, to the possible recycling of furniture and decoration. Zara stores offer only paper or biodegradable plastic bags. About 90% of the bags Zara gives out to customers are papermade. 1. Waste reduction and urge to recycling Every year Zara processes millions of hangers and security tags. In addition both the cardboard and plastics used are recycled. 2. Increasing awareness among the team members Zara heightens all their employees awareness of the need for sustainable practices such as trimming energy consumption, using sustainable transport or modifying habits. With the product 1. The company uses mostly ecological fabrics, like organic cotton. Zara Supports ecological agriculture and uses organic cotton in the manufacturing of selected clothing items(100% cotton, completely free of pesticides, chemicals and bleaches). Due to their distinctive label such products can be recognized very easily at the stores. 2. Producing PVC -free footwear Zara does not use any petroleum derivatives or non-biodegradable fabrics for the production of their footwear. In the transportation Zaras fleet of Lorries ship over 200 million pieces of clothing per year and use 5% biodiesel fuel, which results in lowering the emission of CO2 into the atmosphere by over 500 tones Animal welfare policy All of the animal products, including fur and leather sold at Zara stores is supplied only from animals grown in livestock form and never from animas killed by poachers for skin sale. (Zara, 2010) Legal Factors Plagiarism Plagiarism has become a hug problem in the fashion industry. Trends are very often imitated and cheaply as well as illegally sold in the street. Global expansion Since the European has a smoothly operating trade and legal system which facilitates business operations in member countries, other countries around the world do not provide the same reliabilities . In communistic countries loss of a private run business to the local government is highly probable. Conclusion: Zara has had a very successful history from the moment they opened their small Spanish dress shop, and as we can see now the little-known brand has grown into a leader of the apparel market in less than 30 years. Now the footprints of Zara is nearly everywhere. The big design group, unique strategy, environmental management idea and other operational strategies make Zara success. This PESTLE analysis seeks to improve our understanding of the firm. The research has examined the internationalisation process of the firm with a special focus on motives, entry options and international marketing strategies. The main drawback that arises in a single case study is that of limited validity and representativeness which constrains the potential for making generalisations (Creswell, 1998). Another limitation is that the study was based solely on secondary data. However, this case is deemed adequate to provide good insight, and establish the avenue for future studies.

Parenting Styles Essay -- Raising Children Parents Essays Papers

Parenting Styles Parenting styles are as diverse as parents themselves. Parenting is one of the most challenging and difficult responsibilities a person can face. The way a family is structured is called the parenting style. Parenting styles are collections of parental attitudes, practices, and non-verbal expressions that characterize the nature of parent-child relationships. Because individuals learn how to parent from many different examples including their own parents, role models, society and life experiences. Parenting techniques can vary greatly from household to household, however, experts believe that parenting styles can be broken down into four main categories which include permissive,authoritarian,authoritative,and neglectful. The style of parenting with which children are raised can profoundly affect their social development, as well as their abilities to deal with life situations as adults. Parents who follow the permissive style of parenting have very few rules, no consistent limits, and more often than not give in to their children.. In a permissive family, the children are in charge. Authoritarian-parents who are punitive and focus on gaining a child's obedience to parental demands rather than responding to the demands of the child.Authoritarian parenting styles give little to no options to a child. What the parent says goes. It is a rigid approach to raising children that may have been most effective in times of great famine or toil. It was used most commonly in large, traditional families in which the father was the patriarch, and everyone else was called to follow his command. Times have changed greatly since. Doctors see a problem with this approach in modern times,it creates a distance between parent and child in which the child doubts the parent's love for him. It is based on punishment, which can easily create anger. Authoritative-parenting who are flexible and responsive to the child's needs but still enforce reasonable standards of conduct.the authoritative approach involves effective parental communication with their offspring. Developing empathy and understanding creates a positive atmosphere in which the children can thrive. With a heavy leaning on pyschology, this approach replaces spanking with talking. The weakness to this method, doctors point out, lies in the lack of authority that the child receives. They see ... ...arents tend to produce softly-addicted kids. It?s very difficult for parents to tell kids to stop watching so much television when they?re guilty of the same type of mindless behaviors. Parents will find, however, that if they learn to spend their time more meaningfully, not only will their lives be more satisfying but they?ll help create more satisfying lives for their children.There are many ways to raising a happy, health child. Parenting is a special gift to most men and women. The best thing you can give to parenting is to be consistent with whatever you tell your child to do and their punishment. Parenting, which is somewhat akin to teaching, should be regarded as one of the three cooperative arts. Thus conceived, it calls upon parents to assist their offspring in the process of growing up, doing so by observing carefully the steps the children themselves take in the process and doing what is necessary to facilitate their progress. Parenting departs from being a cooperative art, as teaching does also, when it tries to be the active and dominant factor in the process -- when parents or teachers think that what they do should be like the molding of passive, plastic matter.

A Jack of All Trades

They say that Asian countries, especially those belonging to the third world, have low education standards and don’t speak English at all.   I’d like to take this opportunity to disprove that myth.I’m a full-blood middle class Indian, born in New Delhi, India, to an army officer and a nurse.   I’d say that I’m very fortunate because my parents were able to put me in a good school and was able to study until the 8th grade.   It is true that India belongs to the third world country due to poverty; so a lot of families can’t afford to put their children into nice schools.   There are a number of good schools in India and I was fortunate enough to have studied in one.   The intensive curriculum in my school developed my IQ especially in the field of science and mathematics.When my family and I moved to Boston, Massachusetts in 2004, my schoolmates found it truly astounding that Indians could speak and write well in English too.   This is for the fact that English is India’s second language.   There are a lot of dialects in India alone, but that doesn’t mean English is not a language spoken there.They found how studious and passionate I am with my studies and how I passed with flying colors too.   On top of that, they were pretty amazed that a poindexter like me is actually a sports fanatic too.   I was able to combine studies and sports, doing well in both at the same time.   In fact, I joined the soccer and tennis teams and was able to significantly contribute to the success of both teams. I even lost 30 lbs. out of it.  I remember how I used to doubt I’d be qualified to join the teams, but I got in after the tryouts.   It is, indeed, very hard for students to combine school and sports at the same time.   I’d say I was very proud to show my schoolmates that an Indian like me can excel in a lot of fields, thus showing that the education standard in India shouldn’t be underestimated.   The more I join teams and mingle with schoolmates, the more I learn about American culture.Eventually, my dad found a new job in Austin, Texas, so my family and I had to relocate.   I went to Westwood high school, which is one of the best schools in the US, and I found out that the curriculum there challenged me intellectually and physically.I decided to quit sports when I went to junior high because I took up 5 AP classes.   I took up AP Chemistry, AP English, AP Physics, AP Statistics and AP Computer Science classes.   The standard of the school is very high, so is the level of difficulty.   At first, I found the curriculum too challenging, but I came to realize the advantages of finishing at Westwood high school.I realized that the intensive curriculum could work to my advantage in the future, so I pursued studying well.   I even compared Westwood high school to my previous school in Massachusetts.   Thus, I am very proud to have finished with flying colors in Westwood high school.All the experiences I’ve gone through had made me a jack of all trades.   I was able to prove I can excel in all fields I wish to pursue.   The culture I grew up with in India had given me special traits that made me go through the hardest challenges in life with ease and gratitude.My parents were always there to help me, and because of this, I’m forever indebted.   I want to make them prouder, so I am taking this opportunity to explore greater chances of earning a degree that could help me in my desired profession one day.I am also very grateful that America has given opportunities to Asians like me for better education, and pursuing excellence in my studies will not only make America proud they have produced graduates like me, but will also make my motherland, India, proudest.

War Between Cell Phone Carriers - 860 Words

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