Operations management in a fashion organisation

RUNNING HEAD: OPERATIONS MANAGEMENT
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OPERATIONS MANAGEMENT

OPERATIONS MANAGEMENT 1
Table of Contents
Introduction......................................................................................................................................2
Company profile..........................................................................................................................2
Zara Fashion.............................................................................................................................2
McDonald.................................................................................................................................2
Supply chain management...............................................................................................................2
Supply chain process....................................................................................................................4
Zara...........................................................................................................................................4
McDonald.................................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

OPERATIONS MANAGEMENT 2
Introduction
Operations management is the management of business practices to create the higher possible
efficiency within an organization; this helps the company in increasing the revenue
(Mahadevan, 2015). In this report the operations strategy, a supply chain management as well
as sustainability objective of Zara Fashion and McDonald is discussed.
Company profile
Zara Fashion
Zara SA is a Spanish apparel retailer based in Galicia; it was founded in the year 1975 in Spain.
It is considered leading company in the Inditex group. However, since 2017, Zara manages up to
20 clothing collections in a year. The company is in the retail industry; presently the company
has 10,000 stores worldwide. In 2019, the income of the company in the financial year was 3.44
billion euro (Zara annual revenue, 2019).
McDonald
McDonald's Corporation is well-established fast food company of America; it was founded in the
year 1940. The Company is the world’s leading restaurant chain. The headquarters of company
are in Chicago, US. In 2018, it serves over 69 million consumers in daily basis over
100 countries across 37,855 outlets. The company is in the restaurant industry, in the year 2018
the revenue of McDonald was $21.05 billion (McDONALD’S ANNUAL REPORT, 2018).
Supply chain management
The supply chain management of Zara and McDonald is agile it means managing the supply
chain in such a manner so that the distribution of the product in each step is concerned with
doing the correct things at correct time, saves the cost, being responsive to the demands
prevailing in the market, maintain high flexibility as well as keeps the higher productivity.
However, both the companies adopt the different strategies for supply chain management, so that
the value of customers increases and the profitability as well as market share of the company
raises. Zara adopts various strategies while distributing the quality product to the final consumer.
Zara used the supply chain strategy of vertical integration, in which company produces clothing
in bulk this helps the company in expanding the new product. However, McDonald’s framework