Zara Company Organizational Management Theory

Running head: PROJECT MANAGEMENT 1
Project Management
Institution Affiliation

PROJECT MANAGEMENT 2
Executive Summary
The apparel fashion industry has been experiencing a considerable change such that a
majority of the retailers globally have expanded their business operations. As a result of these
prime stiff competition brought about by the continuous changes in the apparel industry has
led to the massive changes in the industry. However, the success of the apparel company is
mainly based on the company’s leadership and management approached applied. In the case
of Zara, the company has well-structured leadership and management. Thus it has been able
to become a leader in the apparel industry.

PROJECT MANAGEMENT 3
Table of Contents
Introduction...........................................................................................................................................4
Background Information of Zara Company...........................................................................................4
Zara Company Organizational Management Theory.............................................................................5
The leadership of the Organization....................................................................................................6
The rationale for the Study Methodology..............................................................................................6
Zara’s Business Strategy.......................................................................................................................7
Ethics and Ethical Practice at Zara Company........................................................................................9
Role and Legitimacy of Zara Management Functions.........................................................................10
Roles and Functions Performed by Managers.....................................................................................10
Challenges and Risks Addressed by Managers in Today’s Changing Organizations.......................12
Conclusion...........................................................................................................................................12

PROJECT MANAGEMENT 4
Introduction
In the last two decades, the apparel fashion industry has been experiencing a
considerable change such that a majority of the retailers globally have expanded their
business operations. As a result of these prime stiff competition brought about by the
continuous changes in the apparel industry has resulted in the massive modifications in the
industry. Some of the changes in the apparel industry include modification in the structural
features of the supply chain, the demand for lesser cost products, design elasticity,
distribution, and logistics. As a result, to enhance and keep this competitive speed in the
quickly changing apparel market, retailers have been forced to adapt to the “Quick Response”
strategy (Ülgen, & Forslund, 2015). Accordingly, these strategic plans are characterized
through the gain of competitive advantages by declining the time gaps between the design
and consumption of the apparel industry on a periodic basis.
In regard to the concept of “Quick Response,” the strategy has been described as a
business plan whose target is to lessen the procedures involved in the purchasing cycle to act
as a lead for realizing novel fashion products in stores to satisfy the customer demand when it
peaks (Cachon, & Swinney, 2011). Consequently, the idea of “Quick Response” has enabled
Zara Clothing Company in a range of ways like fast response production capacities, cost-
effective products for its consumers, as well as highly fashionable product design. In light of
this statement, the target of this paper is to critically evaluate the roles, as well as the
functionalities of Zara’s management performance, in addition to its ethical and cultural
diversity within the organization.
Background Information of Zara Company
Zara clothing company was founded in 1975 by Amancio Ortega and Rasalia Mera.
Accordingly, Zara is the flagship of Inditex (Industrial del Diseno Textil, S.A), it is a holding
corporation situated in Galicia to the North-western parts of Spain. Certainly, Zara has within