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Managing Strategic Resources and Operations at Zara

   

Added on  2020-05-08

12 Pages2807 Words122 Views
Running head: MANAGING STRATEGIC RESOURCES AND OPERATIONSManaging strategic resources and operationsName of the studentName of the universityAuthor Note:
Managing Strategic Resources and Operations at Zara_1
2MANAGING STRATEGIC RESOURCES AND OPERATIONSTable of ContentsIntroduction......................................................................................................................................3Question 1........................................................................................................................................3Question 2........................................................................................................................................5Marketing:........................................................................................................................................5Political issues:................................................................................................................................6Product:............................................................................................................................................6Social issues:....................................................................................................................................6Question 3........................................................................................................................................7Question 4........................................................................................................................................8References......................................................................................................................................11
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3MANAGING STRATEGIC RESOURCES AND OPERATIONSIntroductionZara was founded in the year 1975 by Amancio Ortega to establish a niche market for thefashion merchandise he produces. It spread to nearly 86 countries from the first store in Spainand now operates around 1770 stores. In the year 2012 Ortega’s parent company Inditex Madeup by Zara fashion and some other retail concepts and suppliers of the industry accounted for atotal sales of US $20.7 billion amongst which Zara’s share stood at a staggering amount of$13.6 billion.Question 1Evaluate Zara’s ability to implement the four activities of planning and control that isscheduling, loading, sequencing and monitoring their full supply chain. How does thiscontribute to the success of the Zara group? It is believed that the secret to the mentioned company’s competitive advantage is theefficient supply chain of the mentioned fashion apparels company. The outstretching capabilityof the mentioned fashion apparels company has been able to attain a positive growth bydiversifying with a proper vertical integration. The company also has specifications to adapt todifferent cultural designs, manufacturers, distributors and retail clothes within a span of just twoweeks after the original showpiece is displayed in any fashion walk (Fernie and Sparks 2014). The mentioned organization is successful in the market just because of its efficient supplychain and its ability to speed up the market by virtue of its wide range of collections and speedydelivery process. The organization has the unique ability to usher in new designs, trendy and
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4MANAGING STRATEGIC RESOURCES AND OPERATIONSmodern outfits that are liked by the generation (Childs and Jin, 2015). The fashion companymakes sure that it keeps a proper amount of its production in house and also makes sure that itsown companies receives 85% of the capacity for in season adjustments. The in house productionhelps the management to bring a proper flexibility in the amount, variety and frequency of thenew products to be launched (de Jorge Moreno and Carrasco 2016).Zara always depends heavily on the sophisticated fabric sourcing and sewing facilitiesthat are located in close proximity to its headquarters of design in Spain, its main hub ofmanufacturing (Gallien et al. 2015). The salaries and benefits of the international labors aremuch higher compared to the salaries of the workers who are engaged in working in thedeveloping world. The company also enjoys a large competitive advantage over the othercompetitors of the market just because of its special strategy to manufacture 50 to 60 percent ofits goods by the middle of the year. A new trend of clothes or any new design doing the rounds is spotted by the experts ofZara and after the initial nod from the management of the company, the operations team ggetsdown to business. The designers produce these clothes as early as possible and the efficientsupply chain of the company makes sure that the production of the company reaches out to thedifferent stores in time. The idea of the latest trend or the feedback of the customers to Zara’sproducts is received through the managers of the store who communicate the vital information tothe management of Zara. The management in turn provides the message to the designers of thecompany (Gomes et al. 2017).
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