Cultural Integration in Zara's Saudi Arabian Operations
Added on 2019-12-28
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ZARA CASE STUDY1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3OVERVIEW OF ZARA AND ITS VALUE CHAIN ....................................................................3IMPACT OF CULTURE ON INTERNATIONAL BUSINESS ....................................................4CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................62
INTRODUCTIONInternational business is considered as a situation where organisations have exchange ofgoods and services among individuals and businesses in diverse nations. In other aspect, it iscombination of commercial transactions that are accomplished between two or more countriesbeyond their political boundaries (Lopez, 2009). Current study will focus towards work activitiesof ZARA while operating in Saudi Arabia. It will also focus on impact of culture on the business.OVERVIEW OF ZARA AND ITS VALUE CHAIN As per the detailed study, Zara is one of leading and successful fashion retail firm thatoperates its business in around 59 nations. In addition to this, it is Spanish clothing andaccessories retail business which was founded in year 1975. It has been identified that the Zarahas claimed that they only needs two weeks to develop new product and launch it in the market.Company is already offering 10,000 designs in the market that creates better opportunities for thefirm (Lippman, 2008). Organisation is more focused to zero advertising policy because it reducesthe cost of operation and generate more profit. These kinds of financial developments are morebeneficial for opening new stores in better way. In regard to have proper understanding of the Zara functioning, it is significant to focuson Zara business model. It has been identified that the company business model is developed onthe basis of three basic concepts. Classification of factors can be as concept, capabilities andvalue drivers. In this respect, organisation is continuously focusing on activities that canmaintain standards in context to design. Zara is having efforts to maintain design, production anddistribution process. It allows business to meet customer needs and expectations in appropriatemanner and lead business to impressive level of success (Bozionelos, 2009). Company is alsohaving effective control on its value chain management system because it allows to haveeffective acquisition of resources. Organisation has also developed number of conceptualstrategies that helps in maintaining the tight control over its production process. It is alsobeneficial for ensuring about the design and manufacturing. It has been witnessed that the 80percent of its production is explored in Europe and 50 percent of it is in Spain. They havestrategic agreements with local manufacturers that ensure timely delivery and service (Alfuraih,3
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