MULTINATIONAL CORPORATION

Multinational Corporation



Multinational Corporation

Introduction

This paper will be discussing the emerging market that will suit the Zara brand. We will be analyzing the seven elements, economic system, political environment, legal and regulatory environment, technological environment, ethical system, social responsibility indicators; cultural dimensions. Zara has been the trend setter in the fashion industry. Since the launch of the company, it has been very successful. The company has been successful because of the Technology that it has adopted (Lindsay, 2004). Zara's position in the market is due to the strategies that the company has adopted. The company has policies that are making it the leader. The profits of the company tripled in the years between 1996 and 2000 and have even increased between the years 2001 to 2007.

Situational Analysis

The situational analysis of the company means that the company evaluates the situation in terms of the three C's related to the business. These three C's consists of Customers, companies, and competitors. The company makes sure that it carries out an extensive analysis of the situation, as well as, the environment. Analysis of customers and the competitors is known as external analysis, and the assessment of the company is known as the internal analysis. The following section will provide an extensive analysis of the external, as well as, the internal analysis.

Environmental Analysis

This section will be discussing the environmental analysis of the company in order to seek which emerging market is suitable for Zara Brand. The environmental analysis of the company is best conducted as the PESTEL analysis. The PESTEL analysis will help the company in analyzing the external environment in which the company operates. Although the company operates in different countries, this section will provide a PESTEL analysis of the United Kingdom.

Political

The political situation of the United Kingdom is very stable. The situation is very stable, which means that the country is able to operate in an environment which is helpful for the company (Echikson, 2000). Zara has strong support of the government of the country in which it operates which means that the company has a good backup support from the government. The political situation of the company does not hamper the smooth operations of the country and helps it in running effectively.

Economic

The economy of the United Kingdom is very strong. Fashion industry has been one strong contributing factor in strengthening the economy. The company has been able to contribute a huge deal to the fashion industry which means that the company is operating in a country that has a booming economy, and that is able to bring about a change in the industry. The company is doing a great job, and the economy has been a helping factor in the company's success. The overall outlook of the British economy is positive which means that the business has a bright future in the country.

Social

The social class of the country is very trendy and fashionable. The target market of Zara is men, women and children. People who are the target market of the ...