Jay 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
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Introduction to Zara (Inditex) Case Study In 1975, Amancio Ortega started a fashion retail shop that makes the fashionable clothes faster and beauty than other competitors. The first Zara store opened in 1975 in Spain. The very best quality of Zara was, it only takes two weeks to develop a new cloth/product and release it to the market while other competitors take two months. Zara didn’t get third party help to distribute, design or even produce because Zara did them alone. Zara was fashion focused
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Zara’s current POS terminals run on the Microsoft Disk Operating System (DOS). As the largest retail chain established by Inditex, Zara generates 73.3% of the group’s sales. With the ability to quickly respond to the demands of their target customers, young fashion-conscious city dwellers, Zara are able to produce and deliver styles while they are still hot. Zara has three departments (Men, Women, and Children), each department, at corporate level in La Coruna, is managed by a group of “commercials”
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manufactured or even supported by the manufacturer, there will come a time when growth will be limited by lack of available POS terminals that would work with their existing software and hardware. Because of the disastrous constraint potential that Zara faces by continuing to use an obsolete operating system, I would advise Salgado to upgrade Zara’s POS systems in the very near future. In order to methodically plan and implement this upgrade, I would advise Salgado to follow the innovation process
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Monitor and Control 16 Appendix A 17 Executive Summary Zara is a retail store of the Inditex group that started in 1975 and has now grown to 531 stores. Zara’s strategic business model focuses on product variety, speed to market, and store locations. The main business idea behind their model is to link customer demand to manufacturing and manufacturing to distribution which they have accomplished through vertical integration. Zara is currently facing the decision to either implement a new operating
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In your opinion, what are the most important aspects of Zara’s approach to information technology? Zara’s approach to IT has been closely aligned with its business model and the associated need to quickly develop, manufacture, and distribute products as well as its preference for decentralized decision making. The approach is also very informal, as evidenced by the fact that there is not a traditional personnel structure or hierarchy (i.e., no chief information officer), there is no formal process
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Extreme Business-Models in the Clothing Industry - A Case Study of H&M and ZARA Kristianstad University The Department of Business Studies FE6130 Bachelor Dissertation International Business Program December 2007 Tutors: Håkan Phil Timurs Umans Authours: Susanne Göransson Angelica Jönsson Michaela Persson Abstract In the clothing industry firms compete successfully by applying different businessmodels. H&M and ZARA are two extremes in the clothing industry. H&M’s business-model mainly focuses
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planning process, their competitive advantage, do they fit together? Zara is a Spanish clothing and accessories retailer. Zara belongs to Inditex’s apparel retailer; the fashion group simultaneously owns brands, such as Massimo Dutti, Pull&Bear, Stradivarious, Bershka and Uterque, which operated 507 stores in many countries in 2001. Product Zara stores have men's clothing and women's clothing, as well as children's clothing (Zara Kids). Designers of the brand work on two basic collections each
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Case 1: Zara, H&M, Benetton Supply Chain Strategies | Executive Summary The performance of many organizations is highly dependent on utilizing the correct supply chain model. This report focuses on the analysis of the supply chains of three clothing companies: Zara, Hennes & Mauritz (H&M), and Benetton. The analysis was focused on three aspects. First, the supply chain models of the three retailers were compared and contrasted and there was an evaluation whether each of the retailers
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Therefore, we are in favour of investing in a new OS, and the next question is which OS is the best option. When looking in a short-term view, Linux comes out as the best option, as of €0 license cost and only an annual maintenance fee to be paid. As Zara intends to invest in the OS for long-term period, then UNIX is the best choice for a new OS, in the first place because of the low annual maintenance fee, despite the high license costs. The tables below provide us with the costs necessary for
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