Answer To: here is the task attached
Dipali answered on Jul 04 2024
WRITTEN ASSIGNMENT
Table of contents
Introduction 3
Theoretical Framework 3
Strategic Planning Theories 4
The Importance of Purpose, Vision, Mission, and Objectives 5
Example: Zara's Strategic Direction 6
Change Management at Zara 6
Change Management Models and Tools 7
Critically Evaluating the Role of Key Performance Indicators (KPIs) in Strategic Planning and Change Management: A Comparison Between Zara and Other Fashion Companies 9
Conclusion 10
References 11
Introduction
One of the unique features of the fast fashion industry is that the changes favoured by consumers and seasonal fluctuations are constantly taking place. To survive young outline companies, for instance, Zara, has to keep on improving it competitiveness. This paper aims to discuss the theoretical frameworks and key strategies that Zara uses to facilitate the accomplishment of its strategies. First it focuses on the topic outlining the importance of having company purpose, vision, mission, and objectives, with the evaluation of change management procedures in Zara. With reference to these components, there is appreciation on how Zara conducts its operations in relation to its strategic initiatives and the external environment. This paper will show how SM theories and the dynamics of CM, will assist Zara in maintaining its competitiveness in an ever changing sector.
Theoretical Framework
Strategic Management Theories
Porter's Five Forces:
· Competitive Rivalry: Zara is in a highly competitive environment where issues of brand establishment as well as the management of consumer trends are very important. This is especially because at Zara, it has adopted a strategy of regularly updating as many of its product lines as is possible in order to ward off any formidable competition.
· Supplier Power: Again, this has minimizes reliance on external suppliers hence minimizing the effects of supplier power on Zara.
· Buyer Power: High threat of buyer Bahrain in the fast fashion market is accompanied by implementing new trends and affordable price for clothes which results in high customer loyalty.
· Threat of Substitutes: This has a rather positive implication because it implies that there is intense competition and customers expect novelty all the time. This way, Zara is able to update its assortment frequently; thus, customers are eager to buy clothes from this company (Sitaro, 2020).
· Threat of New Entrants: Industry rivals are not restricted making brand loyalty as well as operation efficiency crucial. The first moula is that Zara already has a well-developed brand name that is going to prove to be very uninviting to any new entrant in this particular line of business, the second stopper that is going to await any entrant in this field is the logistics of getting those products to the market.
Resource-Based View (RBV):
RBV emphasizes on creating and building on competencies within the firm to establish inimitable advantages that can be maintained in the long-run. The key resources of Zara can be specified as the fast supply chain network, the well-established image of the brand, and the use of data for inventory control. Zara has established these core competencies in order to exploit any kind of market changes while continuing to sustain its competitive advantage.
Strategic Planning Theories
SWOT Analysis:
· Strengths: An efficient supply chain, the brand reputation and international operations.
· Weaknesses: High risks mainly include high reliance on European markets, fast-moving inventories, which causes wastage.
· Opportunities: The company thus need to have a larger market share; the company should thus consider venturing into the emerging markets and also consider moving into the online markets.
· Threats: Recall negative events such as, economic downturn, shift in customer preference, competition.
PESTEL Analysis:
· Political: A trade regulation is a legal system that governs trade in products across national borders; labor law is an aspect of the law dealing with the relationship between employers and employees.
· Economic: Fluctuations in the currency, economic stability of establishing regions.
· Social: Innovations which are possible in the aspect of fashion trends, behavior of consumers.
· Technological: Improvements in organizational production systems and distribution networks, increase of e-business.
· Environmental: It can include sustainability issues, disposal of wastes.
· Legal: All the subjects are tightly interconnected with the international trade legislations, intellectual property rights.
The Importance of Purpose, Vision, Mission, and Objectives
Purpose
Mandate provides the direction that outlines the why or the need for an organization’s formation. As for Zara, the purpose is absolutely clear and allies with the provision of trendy yet reasonably priced clothing. It is the North Star by which all business strategies and daily endeavors are aligned and executed because the brand maintains a singular voice and vision for the customer (Kozhigaliyeva, 2023). A clear organizational mission not only identifies the company’s place in the market, it serves as a motivation for the employees, helping everyone to understand the organization’s strategic objectives.
Vision
Goal gives a framework of a desired state...