SBM1204 Project Delivery Systems: Zara Retail Store in Vietnam

This project report examines the project delivery systems for establishing a new Zara retail store in Ho Chi Minh City, Vietnam. It begins with an introduction to Zara's global expansion strategy and a background on the fashion retailer's market position. The report outlines the project's objectives, including market analysis, brand awareness, and strategy recommendations, and defines the expected outcomes and outputs. A literature review explores typical delivery models such as Design-Bid-Build, Design-Build, and CM@Risk, followed by an analysis of the case project's objectives, requirements, and challenges within the context of the Vietnamese market. The methodology section details factors influencing project delivery system selection, data sources, and a schedule of activities. The report then presents a SWOT analysis, risk analysis, and a proposed delivery system framework, including governance and control mechanisms. The project concludes with an evaluation, revision, and finalization of the proposed project delivery system for the Zara retail store in Vietnam.

Running head: PROJECT DELIVERY SYSTEMS
Project delivery systems
Name of the Student
Name of the University

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PROJECT DELIVERY SYSTEMS
Table of Contents
1. Introduction..................................................................................................................................3
1.1 Background.......................................................................................................................3
2. Objectives and Scope...................................................................................................................5
2.1. Objective...............................................................................................................................5
2.2. Outcome................................................................................................................................5
2.3. Output...................................................................................................................................6
2.4. Assumptions and Constraints...............................................................................................6
3. Literature Review and Features of Typical Delivery Systems....................................................6
3.1. Literature summary related to project/program delivery systems........................................6
3.2. Case project objectives, business case, context, requirements and challenges.....................7
3.3 Typical delivery systems & Key Success Factors...............................................................11
4. Data, Methodology and Process (Initiation Phase)....................................................................12
4.1. Factors influencing selection and performance of project delivery systems......................12
4.2. Selected methodology and process for arriving at an optimum delivery system...............13
4.3. Data sources, ease of gathering data, timing and reliability...............................................13
Income Statement:.....................................................................................................................13
Balance Sheet:...........................................................................................................................14
Cash Flow Statement:................................................................................................................15
4.4. Difficulties expected from applying potential delivery systems to the case project..........15

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4.5. Schedule of activities to apply the methodology................................................................15
5. Optimal Delivery System for Case Project................................................................................19
5.1. SWOT analysis...................................................................................................................19
5.2. Analysis and mitigation of risks.........................................................................................21
5.3. Delivery system framework, components, sequence and control strategies......................23
5.4. Review of governance, reporting and control mechanisms................................................23
6. Evaluation, Revision, Finalization & Presentation of PDS.......................................................25
References......................................................................................................................................26

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1. Introduction
This report has focused on opening a new retail store of Zara in Ho Chi Minh city in Vietnam.
The company has been looking for expanding its business all over the world. Therefore, the
company wants to open a new store in Asian market. This report has focused on this project with
proper market analysis in Vietnam. SWOT analysis of the industry in Vietnam has been done in
the report. The objectives and outputs of the project has been initiated in the market.
1.1 Background
This project has been based on opening of a new retail store of Zara in Ho Chi Minh city in
Vietnam. Zara is one of the largest and successful fashion retailers in the world. Zara was
founded by Amanico Ortega Gaona in 1975. It has become the largest and most successful chain
of the Galican group Inditex and a rising fashion category of Fast Fashion. It has been one of the
innovative vertically integrated strategies that is combined with focus and quality products and
demand focused approach in the market (Pöyhönen, Sivunen and Kajander 2017). It has
provided a new version of fashion trend in the market. The company has focused on the quality
of products and customer centric approach in the market. Zara has been relying in store network
for advertising its products in the market. The company has aleys foecused on expansion in the
market that have become enprmously large in the global market. Zara, an outstanding presumed
style planning and assembling organization has been proclaimed most effective and market
reacting endeavor in UK‟s style industry. Mr. Amancio Ortega, the maker and starting
coordinator of Inditex is refreshing for his vital choices as well as his market rivalry winning
procedures have been acknowledged and pursued by his contenders now. Zara, one of the brands
of Inditex, established in 1975, is the most eminent and acclaimed design symbol. It isn't just
producing the most noteworthy overall revenues for association yet additionally is the most

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renowned and perceived by clients in market (Murphy, 2008). Most of caught showcase by
Inditex is for Zara. An expected offer of Zara in complete income of gathering is 80% (Liu et al.
2017). It‟s a Spanish based organization, and has effectively substantiated itself as a main
organization which is effective in emphatically giving support of their clients. It is the design
symbol which is serving industry since decades and still its clients are so fulfilled that it will be
far and away superior in future. The board has taken choices that were enterprising around then
and still the majority of the organizations in industry are not settling on same fronts. Such
choices that lead to progress are conceivable after a profound mindful procedure that requires
ecological examination (both at large scale and smaller scale level), outside and inward
investigation furthermore, a levelheaded coherent basic leadership process gives plans and
destinations. Zara has as of now achieved its targets and is a main organization and now further
extension of organization is under thought (Bhatia and Kumaraguru 2017). In this report, we will
break down the market condition and making some reachable arrangements for future. This
procedure would be basic and urgent on the grounds that it prompts choices that are reason for
future activities and these basic choices for future progression of exercises will choose eventual
fate of organization in industry, for example a triumph or disappointment. They have changed
store network and experienced a progression of issues that takes the organization years back.
Zara has officially utilized innovation in its assembling plants, where complex procedure are
required to be streamlined however such choices that to which degree we may fuse innovation in
procedure and devices are to be taken after compact estimations and breaking down. There are
existing areas where the organization may advance and we will investigate such open doors in
condition.

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The main brand of Inditex had a fast expansion opening stores in Oporto (Portugal, 1988), New
York (1989), Paris (France, 1990), Mexico (1992), Greece (1993), Belgium and Sweden (1994),
Malta (1995), Cyprus (1996), Norway and Israel (1997), Germany, Holland and Brazil (1999)
and in 2004 the Group inaugurates the store number 2000 in Hong Kong, bringing its footprint to
56 countries across Europe, America, Asia and Africa (Franz et al. 2016).
Figure 1: Number of stores of Zara
(Source: Franz et al. 2016)
2. Objectives and Scope
2.1. Objective
The objective of the project has been mentioned below:
 To analyze the market of fashion industry in Vietnam
 To spread awareness about Zara in Vietnam fashion market
 To Increase brand value of Zara in the Vietnam fashion market
 To recommend strategies in order to increase chances of market entry of Zara in Vietnam
fashion market

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2.2. Outcome
The expected outcome of the project is that Zara will be able to enter into the Vietnam fashion
market. The new store of Zara will successfully starts its business in the Ho Chi Minh city of
Vietnam with successful profits in business.
2.3. Output
The output of the project has been related to the successful opening of anew store of Zara in the
Ho Chi Minh City of Vietnam.
2.4. Assumptions and Constraints
It has been assumed that fashion market of Vietnam has been saturated and there is a need of
new fashion brand in the market. IT has been assumed that government of Vietnam has accepted
the proposal of Zara to enter into the fashion market of Vietnam.
3. Literature Review and Features of Typical Delivery Systems
3.1. Literature summary related to project/program delivery systems
Zara has been looking for expanding its market in the Vietnam. The company has been
discussed on Vietnam fashion market. The delivery system of the project has been an important
function for any company. The delivery system has been focused on how a product need to be
delivers to the end user. Various companies have been focused in their delivery system fir
increasing customer satisfaction in the market. There have been three project delivery system
including Design-Bid-Build, Design Build and CM@Risk. This section has analysed all three
project delivery system and selected the best project delivery system method. This specific
venture holds three distinct stages, for example, structuring stage, offering stage and the structure
stage. So as to finish the undertaking effectively it is important to keep up every one of the three

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of these stages appropriately. At the very commencement stage the task originator should employ
a planner who will structure the arrangement of the venture (Luo et al. 2017). For structuring and
offering the task all the important advances are required to be kept up by the undertaking
originator. So as to finish the undertaking effectively or with no sort of mistake it is vital for the
task draftsman to keep in nonstop touch with the venture proprietor. The undertaking deliverable
incorporates. The undertaking could move further simply subsequent to getting affirmation from
the task proprietor. Notwithstanding, in the event that the venture proprietor does not give any
such affirmation, at that point, the undertaking colleagues won't probably proceed with the task.
For taking up the task delicate the undertaking proprietor is required to partake in the offering
session.
Nonetheless, after the task temporary worker will be chosen the documentation offer can't be
changes by any means. For beginning the work on the specific delicate, every one of the
contractual workers related to the delicate are expected to give appropriate consent. So as to
create a viable archive it is especially important for the venture contractual worker to make
legitimate sale on the undertaking. Then again, the task subcontractor takes pertinent delicate
those are required to execute the venture effectively (Liu et al. 2019). Notwithstanding, toward
the finish of the task legitimate documentation is required to be done at that point, exact working
courses of events is additionally required to be trailed by the administration specialist of the
business association to produce expected venture result. So as to finish the undertaking
effectively it is important to share each extend workmanship. For complete the venture
effectively it is essential that all the offered archives are imparted to the closeout.

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3.2. Case project objectives, business case, context, requirements and challenges
This project has been done open a new Zara store in Ho Chi Minh City in Vietnam. The
construction of new store in city needs a critical market research. The planning stage needs to be
properly dine. The objective of the project has been based on analyzing critical success factor of
Zara in opening a new store in the market. The Asian market has been saturated and there has
been a requirement if new brand for enhancing the fashion industry in Vietnam. Zara has been a
successful fashion brand in al over the world. Therefore, there has been keen approach followed
by the company to enter into the Vietnam market. Zara has been capturing global market at a
rapid pace. The market strategy followed by Zara has been prominent in the market. The
business management process has been an important factor in the development of the company
in the market. For effective finish of the venture, the task proprietor, contractual workers and the
undertaking planners are required to hold associated with the undertaking appropriately. Indeed,
even from the task start up to the finish of the undertaking they are required to function as a
community oriented group. So as to finish the undertaking the temporary workers and the sub
contractual workers can't be changed. With any out sided contractual workers the venture
subtleties can't be examined. Indeed, even no such offering should likewise be possible with the
other undertaking temporary workers. With the assistance of this methodology the venture could
be executed as a shared task (Yee et al. 2017). It likewise constructs connection between the
venture proprietors and the engineers. So as to increase long haul accomplishment from the task
record it is important to think about organization. While executing the development level
structure or arranging of the task, it is especially vital for the venture proprietor to give the
undertaking result. The best esteem that has been allocated for the undertaking ought to be trailed
by the venture proprietor. This as well as the undertaking administrator is expected to pursue the

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least offering dependent on their past information and ability. The undertaking temporary worker
ought to dole out the venture just dependent on the documentation. So as to increase powerful
accomplishment from the undertaking, it is particularly important for the venture proprietors to
think about each task segments. For this specific venture the parts are as per the following:
Calendar for immaculate conveyance: After thinking about the task scope, it has been resolved
that, for effective execution of the undertaking legitimate timetable is should have been created.
With the assistance of precise calendar the work can be partitioned in littler portion and it will
decrease the remaining task at hand from the undertaking colleagues. The undertaking plan is
isolated in various portions, for example, venture arranging, venture structure. This as well as
there are diverse offering esteems will be ascended in the task sell off. In view of the undertaking
achievement criteria the most minimal closeout cost is required to be chosen by the
administration expert. Along these lines, appropriation of least esteem is alluded to as the most
gainful one.
Advancement, inventive plan and task intricacy: In request to lessen the venture dangers or
undertaking multifaceted nature, distinctive new imaginative and creative thoughts are should
have been created by the undertaking chief to decrease the task unpredictability. This as well as
for dispensing with the dangers venture related instruments and strategies are should have been
consolidated by the task director. Beginning danger appraisal: During the usage of the task
various dangers may happen. In unquestionably the primer stage, for building up the undertaking
appropriate hazard assessment approaches are should have been actualized by the venture chief.
This as well as, the principle essential target of the development venture is to get ready and rouse
the task laborers to create various ways to deal with relieve the plausible dangers (Kovvuri et al.
2016). Amid the venture usage of the task, this sort of dangers may happen.

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Cost: Finance or business venture spending plan is alluded to as a standout amongst the most
significant viewpoint that is carefully required to be considered by the undertaking proprietor
before the official usage of the task. Indeed, even a plausibility testing is additionally required to
be made by the undertaking director, with the assistance of the achievability contemplate the
venture administrator will most likely comprehend that whether the task is gainful or not. Along
these lines, for effective fruition of the venture, absolute cost must be created by the undertaking
supervisor.
Encounters of the staffs and accessibility: Experiences of the shoppers and contenders are the
most accommodating things to be considered by the contractual workers and venture directors.
The undertaking proprietor must comprehend the venture subtleties and different subtleties of the
task. It will help the undertaking chief to assess the challenge level. Through understanding the
correct challenge level the issues identified with the undertaking could be moderated totally.
Figure : Design Build Delivery system
(Source: Elghaish et al. 2019)

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Zara has fulfilled the clients and has executed techniques that made it conceivable to become
overwhelming in design industry. Zara has been in market since two decades and has built up its
image picture in customers. All the 68 nations are following same ideas that are related with the
first brand. Zara has an effective and ceaseless correspondence framework with its clients and
consequently changes in business sectors and roads stream straightforwardly to the fashioners
and this data is delineated to be utilized in next scope of plans. This constant enduring business
sector correspondence has empowered Zara to get know and react to its clients and eventually
living up to their desires cause the achievement. Such interest the board was inadequate in Mark
and Spenser and somewhat with Sainsbury in 1990s, they didn't coordinate their items with
customers‟ desires and this caused issues (Livet et al. 2018). Abrupt supply changes may cause
wastage of assets, as done by Sainsbury. There ought to be an ideal blend of request the board
and production network the board to adapt to advertise patterns and to acquire advantage over
contenders. As Waller (2012) proposes that "client driven" coordination’s are present
measurement for organizations to be effective, "...as organizations start to comprehend that their
future presence relies on the steadfastness of the end-clients of their items".
3.3 Typical delivery systems & Key Success Factors
Goals/
Criteria
Criteri
a
Weight
Project Delivery Method
Design-Bid
Build
Design-Build CM @ Risk
Scor
e
Weighte
d Score
Scor
e
Weighte
d Score
Scor
e
Weighte
d Score
delivery of
the
schedule
14 8 112 9 126 10 140