3CO01 Assignment Example

3CO01 Business, culture and change in context is a CIPD Level 3 unit focusing on how businesses operate within their external environment and how internal factors, like culture and employee behaviour, influence their success and ability to manage change. It explores the impact of digital, commercial, and external influences on organisational culture and how people professionals manage change effectively. 

Assignment Example

AC 1.1 Examine two key external influences impacting or likely to impact the activities of the organisation that you work for (or an organisation with which you are familiar)

Economic factors

Economic factors including inflation and recession and currency exchange rates substantially affect Inditex operations (Twin, 2024). When economies experience financial downturns consumers tend to lower their spending on unnecessary products that include clothing. Currency markets present difficult conditions for the company because its operations cover multiple nations while trading in multiple currencies affects both its cost structure and revenue streams.

Consumer Trends

Consumer’s behaviour changes of strongly shape Inditex’s operations. For instance, there has been a growing emphasis and demand for sustainable fashion products that meet ethical standards in the recent past (Sitaro , 2020). Fast besides, customers now want to understand how their fashion and clothing affects the environment. Inditex has responded to such customer concerns by embracing sustainability including through carbon emission reduction and use of eco-friendly materials.