HRM in Context Assignment Sample
Part 1:
| S | T | E | E | P | L | E |
| Social | Technological | Economic | Environmental | Political | Legal | Ethical |
| Fashionable brands
Use customer base
Changing online shopping trends |
Usage of big data
Influence of virtual reality and artificial intelligence
The better way for appealing and reaching to customers |
Relatively affordable and a familiar product (Eco-Stylist, 2021)
Low cost of labor
Opportunity for the unemployment rate |
Increasing sustainability strategies
The fast-fashion impact
Increasing Eco awareness and consciousness among customers |
Extensive trade agreement for running the business in European Union
Opportunity for importing the raw material and the export of the finished goods
Use scope for sending Merchandise in the international platform |
Highly to bound in lawsuit and copyright issues
Need to follow the trade retail agreement for working in different nations |
Openly publishing sustainability pledge
Commitment towards sustainable material climate change the energy and ethical issues |
Part 2:
From the STEEPLE analysis above the following 3 key factors would have the most impact on the business operations of Zara:
The socio-cultural or social factor
The online shopping trends of the customer can significantly impact the business operation of Zara (Wood, 2017). As the potential customer is now wanting to order garments with the tap of a bottom as well as from the comfort of an individual home or room this factor can act as an opportunity for the business operations of Zara. The company can provide the customers with a webshop and online shopping experiences for which the company can pay close attention to watch the performance in the online stores and involve virtual reality and artificial intelligence in the business operation.
The environment factor
Zara has both an audience as well as money. Therefore the changing requirement of the customers towards fast fashion can impact the associated wastefulness of the company (Conlon, 2019). It can hinder the business operations of Zara as affordable garments are now being provided by the local manufacturers. Considering the fast-changing Trend of the customers towards Eco consciousness can have a negative impact on the brand as an investment in sustainability will require more funding for which the final product can have increased cost compared to the local providers.
Legal factor
The copyright issues for fast fashion brands belong to the most difficult branch to deal with. As Zara is mostly associated with capturing clothing Trends from International marketplaces and making the garments affordable it is bound to run through legal issues associated with copyright. The company has already been accused of ceiling designs from International brands like Balenciaga and Adidas (EDWARDS, 2016). In the past cases as well the organisation has largely been accused of getting into uncomfortable lawsuits and legal situations. Therefore this factor as the company plans to penetrate more cross-border nations will increase with time.
In order to develop and shape in response to these factors for supporting the external and internal business environment the companies belonging to the fast-fashion history have legal heads and branches. As this particular department works on the copyright issues and retailing loss of different nations the issues associated with legal factors are marginalized. In this way, the business operations are dealt with efficiently in the external environment. Nevertheless, International brands train the local farmers in remote locations to opt for sustainable practices and show concern to the environmental matters right from the elementary level. Therefore along with the brand Inditex, the sustainability reports are also pledged for commitment and welfare development. Lastly, in terms of the socio-cultural or social aspect, the fast fashion brands determine the requirements of the shopper and by providing training to the internal stakeholders good quality products are maintained. The Clever marketing effort becomes an exclusive strategy for the brands and as a result, a healthy profit margin is received by the company. The customers on the other hand who are external stakeholders are able to get the products that are of superior quality at a great deal.
References
Conlon, S., 2019. Zara clothes to be made from 100% sustainable fabrics by 2025. [online] the Guardian. Available at: <https://www.theguardian.com/fashion/2019/jul/17/zara-collections-to-be-made-from-100-sustainable-fabrics> [Accessed 4 August 2021].
Eco-Stylist, 2021. How Sustainable is Zara?. [online] Eco-Stylist. Available at: <https://www.eco-stylist.com/how-sustainable-is-zara/#:~:text=Zara%20scored%20just%20below%2050%25%20for%20environmental%20sustainability.,some%20harmful%20chemicals%20in%20production.> [Accessed 4 August 2021].
EDWARDS, J., 2016. Zara is in trouble for alleged copying (AGAIN). [online] Cosmopolitan. Available at: <https://www.cosmopolitan.com/uk/fashion/style/news/a44791/zara-alleged-copying-independent-artist-designs/> [Accessed 4 August 2021].
Wood, Z., 2017. Zara’s UK profits drop sharply despite record sales. [online] the Guardian. Available at: <https://www.theguardian.com/fashion/2017/oct/13/zara-sees-sharp-drop-in-uk-profits-despite-record-sales> [Accessed 4 August 2021].
………………………………………………………………………………………………………………………..
Know more about UniqueSubmission’s other writing services:
