The Environment Around An Organisation Commerce Essay

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Organizational structure is important for a company because by this way companies are in control and it gives them a good overview about what is happening in the company and who is doing what.

The purpose of having an organizational structure is that companies can achieve their goal and to establish lines of control and communication also they can divide the work in the company that has to be done. Organizational structure is all about what a business is trying to sell service/product and about increasing profit in the most efficient way.

Organizational structure is like an triangle with layers which shows you allot of a company things you can see by the triangle are for example: how the communication is going in that company and how much departments they have, it also shows how big the organization is.

Not every company has the same triangle this depends on the size of the company and the way they sell their products/service if this is by a web shop for example than the layers would be less. Organizational structure can be influence by different factors: intern and extern factors the company has to keep themselves to the law but also they have to keep the investors who invested their money in the company happy. If the employee and the machinery and everything in the company works good together that means that the production is going faster and by this way a company can make more profit.

The organizational structure of Zara:

The purpose of Zara is to make profit out of selling clothes and shoes for all people from students till children and older people. The Zara stores are mostly to find in the centre of the a city. The prices of Zara clothes varies they sell basic clothes but also pricy designs by this way they give the customer the choice. I think Zara store is structured like the picture left.

Example influencing factor on the decision making process of Zara:

If one of Zara's aims is to have more stores in the centre of Groningen and if they have a plan of where the stores should be. Then there is a chance that Zara can't open a store where they want because of the government standards or people who live in that specific area. This is an example of a negative external influencing factor which influence Zara's decision making process. But it could be that the influencing factor is positive and maybe give Zara good alternatives or opportunities an example of this is: That Zara has to search for another place to open a store, maybe in another area which gives Zara more space for the same money by this way Zara could open a parking garage and make more profit out of it.

Below you can see a chart of the organizational structure of Zara in one specific area for example Zara Europe.

Below you can see a chart of Zara and how they operate ''worldwide'' in different areas.

Aims and objectives are important for companies like Zara and Unicef because these goals are like guide lines for them. By setting aims and objectives the companies decide what they want to achieve in the future. In every company it varies who is setting these aims and objectives and who can influence these also if they influence the aims and objectives in which way they do that. There are a few environments who can influence companies like Zara and Unicef these are:

The technological environment

The social environment

The economical environment

The demographic environment

The ecological environment

There are five structural elements within the company Zara

• The strategy: These are clearly the bosses of Zara -names-. They are the ones who set the goals, determining strategy and keep customers happy and winning new customers.

• The management team: These are the department heads of the three production departments, sales and administration. They have the management and strategic connection with the bosses of Zara. They are responsible for implementing new policies.

• The technical staff: This is clearly reflected in the personnel department. Regarding personnel keep themselves busy with the release of guidelines on human activities within Zara. They have a great impact on the operational core of the company. So they set guidelines, organizes, standardizes, budgeted plans and changes the work of the staff.

• The service staff: There is much progress in Zara in the production staff. Therefore they have a strong relationship with an agency. They fill the demand for production personnel. They thus produce the recruitment of production staff.

• The operational core of Zara consists of the production personnel. They are engaged in the primary process or in other words, they make the products.

The organizational structure of Unicef:

The aim of Unicef is to help people who are in need. Unicef is a worldwide nonprofit organization which means they get their money from charity, donations etc. The people who work at Unicef are volunteers. The people who work with Unicef are mostly investors of donators for example: artists who invest and want to promote Unicef trough their influencing power they can do this by going to a poor county and help people who are in need in the name of Unicef or imagine the name of Unicef on television.

Example of influencing factor which influence Unicef in their decision making process:

For example Unicef wants to achieve the goal to have a smaller building for the volunteers to work in. Unicef wants this because they want to save the money to do other things with.

By setting this aim Unicef didn't think about the Government standards authority, this means that there are certain rules that businesses have to follow. It can different from fire safety till the work hours a employee can make and how much space a employee need to do their work good. This has to do with the health safety of the employee.

Communication in the company

Internal and external communication is very important to the various business activities in alignment. If certain activities are divided into several sections, the relationship between that is going to be lost. By a good communication structure can be restored consistency.

If communication within an organization is not good, this will affect the cooperation within the organization.

It is also important to communicate with external parties. This is important because if a certain company depends on raw materials or products from another business they need to have good contact constantly.

External factors


UNICEF is committed to the relationship with customers as effectively as possible, because their customers donate a large part of the activities without them Unicef would be able to do what they are doing which is helping people in need.

For Zara are customers also the most important factor because they are the ones why the business is existing.


The contact with suppliers is very important. Without the suppliers the business Zara can not make products. When sufficient contact with the suppliers may hold sufficient arrangements regarding the timely delivery of products.


For Zara is also important that we look at the competition. By this way Zara can quickly respond to price changes or new product developments.

Unicef also look at their competition this is also very important for them because they are not the only one who want to help people in need. For them it is also important to keep a close eye on when to do what and what the competition is doing.


Both companies Zara and Unicef has to do with unions becausethey have staff.


There are certain requirements laid down by government. These requirements should be implemented as policy. So it's important for both companies to keep themselves to the law.

Internal factors


Communication with and between employees is very important within the companies Unicef and Zara. The supervisors should be adequately communicate with employees. It is also important for a good cooperation that employees are adequately communicate with each other.


Management is responsible for policy matters, this communication is very important. The communication between the board and management team is very important.

Management Team

The communication between the managers should be well run. The management policy issues and the decisions of management in the company to make the employees.


How generic aims and objectives (zara and unicef) influence the setting of the aims and objectives of the contrasting companies

Aims, Objectives Missions and values in the company Zara

Aim: The aim of Zara is to buy all your Metropark clothing in one place.

Mission: Dress the world

Value: Zara's customer value on an average, each customer is used to pay at least 17 visits in a year to any one of Zara's 1039 stores.

Aims, Objectives Missions and values in the company Unicef

Aim: Save lives, alleviate suffering and protect the rights of children.

Mission: To advocate for the protection of children's rights, to help meet their basic needs and to expand their opportunities to reach their full potential.

Value: UNICEF has around 310,000 regular members and is active in 155 countries.

The Influencing factors of Unicef:

Customers/Consumers : The "consumers" are in this case the children in need. They get the food, tents and also clothes. The children are getting this for free, so they are happy with anything.

Employees : If a huge amount of employees ( in this case voluntaries)decides to stop with the charity help because of the less time left with their own lives, Unicef cannot reach the children/people anymore.

Suppliers : If the current suppliers decide to stop giving free emergency packages away because they are not making any profit but loss, Unicef has to stop the give-away- action till they found another company.

Governments : If the government wants to give extra money to Unicef, they only will donate it if they only just spend the money on emergency stuff in a told area.

The importance of SMART

Smart stands for : Specific, Measurable, Achievable, Realistic and Time-bound.

A key part of having a specific goal is the ability to measure your progress towards achieving it. SMART is very important and can be really helpful for companies who want to setup a new plan/goal/aim or want to improve some aim.

The SMART gives a good overview about what the company wants and if this is achievable and realistic and in how much time they can achieve this specific aim.