Zara Analysis Research Paper Example | Topics and Well Written Essays - 1000 words

Zara Analysis - Research Paper Example Inditex’s portfolio includes eight retail brands including Massimo Dutti, Bershka, Zara, Zara Home, Oysho, Uterque, Stradivarius and Pull & Bear. Although each of these brands pertains to retail textile and distribution, for Inditex each one represents a different strategic business unit. The flagship brand however, is Zara. According to Reuters, Zara’s owner Inditex reported 32% increase in profit in the first half of the year 2012, sales worth of 7.2 billion Euros and EBITDA of 1.6 billion as compared to forecasts of 7.1 billion and 1.6 billion respectively. The percentage of operating expenses from sales reduced to 37.16 percent as opposed to 38.04% last year, this indicates that there is a higher percentage of revenue keeping other factors same. According to BBC website, the net sales have risen by 17% to 7.2 billion Euros. The opening of new stores by 2012 has also increased by 7%, thus now Inditex has 5,693 stores in 85 countries (www.bbc.co.uk). The company has also invested extensively in their home market of Spain, with the hopes of upgrading the commercial and logistic activities to boost their world-wide operations. Since Zara has presence in more than 85 countries of the world, the brand needs to adapt to the political environment of the country they are operating in. For France is particular Zara needs to consider the following aspects of the macro environment: The European financial crisis and the fluctuating value of the Euro have a strong impact on fashion apparel retailers. However as opposed to high-end French fashion brands, Zara is a medium tier brand. So the fashion-conscious target audience has also become price sensitive, this works in favor of Zara France is one of the best developed economies in the world. Thus the women in France are very internet savvy, so Zara needs to utilize the vast possibilities of online retailing as well. According to Annual Report 2011, social media and

Globalisation,Transnationals and Economic Development in Uk(78114003) Essay

Globalisation,Transnationals and Economic Development in Uk(78114003) - Essay Example sult of such a trend, the globalization - as an idea or an activity – has been expanded in most of countries around the world creating specific obligations and rights for both the states and the individuals. Current paper examines the effects globalization in the local economic development of UK particularly in relation with the position and the activities of the transnationals. It should be noticed that the analysis of the above subject is taken place presenting at a first stage the current situation in the international community (regarding this particular issue) and at a next level, the findings are compared with the ones of the UK financial market in order to formulate a secure assumption on the problem. On the other hand, a series of particular issues are been exposed (with reference to the UK market) which should be considered before arriving in any conclusion regarding the specific subject. The post-World War II ‘phenomenon of globalization-the increasingly close international integration of markets both for goods and services, and for capital - may in many ways be viewed as a resumption of a trend observed in the world economy a century ago; by some measures, international economic integration increased just as much in the 50 years before World War I as in recent decades, and reached comparable levels; then, as now, integration was driven in large part by the proliferation of markets and rapid technological change. The process was interrupted and reversed from 1914 to after World War II’ (World Economic Outlook, 1997) Globalization is a term ‘variously employed, even by experts within a single discipline; moreover, there is substantial debate, not only about its definition, but also about whether it is actually occurring, its significance, and how it shapes our future’ [8]. At its most accepted form globalization ‘rests upon, or simply is, the growth in international exchange of goods, services, and capital, and the increasing levels of