Organizational Structure

 ZARA 

Background Information:

Zara is a multinational fast fashion retail brand, and is one of the popular brand of Inditex group. Zara is in the retail world since 1975 but it has remarked as the top selling brands from the last 10 years. It sells clothing, accessories, shoes, perfumes. It is a Spain based company. I chose this organization as I am a part of this organization. I work in the sales team of Zara, I have direct experience in the organization's structure.

Zara's mission revolves around providing their customer with the latest fashion trends in a sustainable and timely manner. The main goals that Zara is focused on is to maintain the market leadership in the retail world and to contribute the environment by practicing sustainablity is the main focus of Zara.The core values of Zara includes Beauty, Clarity, Functionality and Sustainability.

Environmental Analysis:

External Analysis: PESTEL

Political: Looking into government rules and regulations, trade wars and labor laws that might impact ZARA. As Zara is a global brand there can be various political factors affecting Zara.

Economic: Looking at the economic factors can make a big impact such as economic growth, exchange rates, unemployment rates, the consumer spending fluctuation, all of these factors are really important to look over.

Social: Social factors is how and what customers want. These factors can play a signifucant role in the business, some of the factors are such as customers preferences, evoloving fashion trends.

Technological:Technological factors can play an importantb role in the fashion industry so Zara should keep up with the changing technology and should adapt the new technology such as digital marketing, e-commerce.

Environmental: Keeping up with the environmental sustainability as it has become a significant factor in the fashion industry. The enviironmental factors such as waste mangement, environmental sustainibilty.

Legal: Looking and keeping up with the laws of the company such as fair working condition, international labor laws, consumer protection and product safety.

Internal Analysis:

Organizational Tasks: Looking over how the work is divided in the stores. How the tasks are dividied between the owner,managers, associates and how the tasks are divided between the stores all over the world.

Goals: The ami goals Zara is trying to achieve is to be one of the leading brands in the fashion industry and to maintain the leadership and to be sustainable and provide customers with the best shopping bexperience.

Job characteristics: Zara's job characteristics include the skills needed to work there, the flexible nature of the job and the decision-making processes.

Growth cycle: Zara's growth cycle is really up they are expanding their business as much as they can they have almost 3000 stores all over the world and they are still expanding their business. 

Ideal structure for the organization:

The ideal structure for Zara from my point of view would be functional and divisional structure. Functional structure organizes a company into different departments such as marketing, finance etc. Divisional structure means the organization is divided into departments by product, market and geographics. This mix of organization structure will help Zara to run smoothly and fulfill customers requests and demands in timely manner. 

As Zara is known for the fast-fashion company it is important to keep up with the latest fashion trends, so the mix of these two organizatonal structure will help the departments to focus on the work they have expertise in and also will be abel to catch-up with the latest trends. Uasing the divisional structure departments who are better with the product and can manage the clothes will help in get new styles faster in the stores.

As a sales associate I know that having a clear management of roles is really important for the oragnization . So knowing who has what role, it is important to have a clear chain of work for everybody, This structure is flexible and will be the best for Zara as it will help the oragnization to work well within the stores and manage the organization.

Organizational Chart:

CITATIONS: 

Zara.cZara Mission and Vision Statement Analysis. (n.d.). Edrawsoft. https://www.edrawmind.com/article/zara-mission-and-vision-statement-analysis.html

Martinroll. (2021, December 7). The secret of Zara’s success: A culture of customer co-creation | Martin Roll. Martin Roll. https://martinroll.com/resources/articles/strategy/the-secret-of-zaras-success-a-culture-of-customer-co-creation/

om. (n.d.). Company Information | ZARA Canada. https://www.zara.com/ca/en/z-company-corp1391.html?v1=2313140

  

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