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Case Study - Zara International

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Case Study: Zara International Fashion at the Speed of Light

Question 1: In what ways are elements of the classical and behavioral management approaches evident in how things are done at Zara International? How can systems concepts and contingency thinking explain the success of some of Zara’s distinctive practices?

Answer 1: Elements of the classical management approach are very evident at Zara International. The classical management approach contains three branches, which are scientific management, bureaucratic organization and administrative principles. Scientific management was expressed by selecting the workers with the right abilities for the job as well as time being the main factor instead of production costs and advertisements. For example Zara only spends 0.3% of sales on ads compared the competitors that spend roughly 3 to 4%. Next, administrative principles are displayed clearly through the control over design, distribution, production, and retail. In addition the clothing lines aren’t restocked and instead they become replaced by new designs to create a rarity value. Since shoppers will be unsure if the product will still be there next time they go back it will get shoppers to buy the item now. Lastly for the classical approach, bureaucratic organization exists through Zara’s clear division of labor and the organization runs smoothly because of it. However, Zara International also showed a few elements of the behavioral management approach. They focus toward the human by paying very close attention to what fashion the public likes and demands. Zara also makes their prices affordable for the public even though it is all the newest fashion. The successes of Zara’s distinctive practices are explained through systems concepts and contingency thinking because Inditex succeeds in matching management practices with situational demands. Also, they…...

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