Zara's Outsourcing Strategy Research Project Analysis

This research project investigates Zara's outsourcing strategy through a questionnaire administered to senior managers. The study explores various aspects of Zara's outsourcing practices, including the duration of employment of senior managers, their understanding of outsourcing, and the extent of raw material outsourcing. It delves into the perceived benefits of outsourcing, such as cost control, increased efficiency, and competitive advantage, while also examining challenges like language barriers and lack of control. The research reveals key findings, including the tenure of senior managers, the general understanding of outsourcing, and the positive impact on market share and innovation. The project concludes with recommendations for Zara to expand its business in the global market, emphasizing the importance of broadening the team and understanding regulations. The findings are presented thematically, supported by visual representations of the survey results.

RESEARCH PROJECT

QUESTIONNAIRE
Name of Organisation: Zara
Designation of Respondents: Senior Manager
Name of Respondents:
Gender:
Age:
1.How long you are working in this company?
 1 to 3 years
 5 to 8 years
 8 to 10 years
2.Do you know the actual meaning and concept of outsourcing?
 Yes
 No
 Not Sure
3.Do you know that your company outsources the raw material from different
countries?
Strongly Agree
 Agree
 Neutral
 Strongly Disagree
 Disagree
4.According to you what are the benefits your company is gaining from
outsourcing of the business?
 Leverage knowledge and Skills
 Increase efficiency
 Controlled Cost
 Greater Competitive Advantage
5.Do you think that outsourcing a successful business strategy of Zara?
 Strongly Agree
 Agree
 Neutral
 Strongly Disagree
 Disagree

6.Do you think because of outsourcing, the market share and profitability of Zara is increased?
 Strongly Agree
 Agree
 Neutral
 Strongly Disagree
 Disagree
7. Do you think outsourcing helps company in bringing innovation?
 Yes
 No
 Not Sure
8. According to you what are the major challenges that your company is facing related to
outsourcing?
 Language and Cultural barriers
 Lack of Control
 Difference in time zone
 Legal Issues
9. What are the recommendation you provide to expand the business more in the global market
?
 Should know and understand the regulations
 Should Broaden the team
 Should keep eye on time
 Should learn languages

DISCUSSION AND
FINDINGS
 Theme 1: Maximum senior managers are employed in Zara for 8 to 8 years.
 Theme 2: Majority knows the actual meaning and concept of outsourcing.
 Theme 3: Zara outsources the raw material from different countries.
 Theme 4: Cost Controlled is the main benefits that company is gaining from
outsourcing of the business.
 Theme 5: Outsourcing is a successful business strategy of Zara.
 Theme 6: The market share and profitability of Zara is increased because of
Outsourcing.
 Theme 7: Outsourcing helps company in bringing innovation.
 Theme 8: The major challenges that your company is facing related to
outsourcing.
 Theme 9: Zara should broaden the team to expand the business more in the
global market

Theme 1: Maximum senior managers are
employed in Zara for 8 to 8 years.
Particulars Respondents
1 to 3 years 7
5 to 8 years 9
8 to 10 years 4
1 to 3 years 5 to 8 years 8 to 10 years
0
1
2
3
4
5
6
7
8
9
Respondents
1 to 3 years 5 to 8 years 8 to 10 years
0
1
2
3
4
5
6
7
8
9
Respondents

Theme 2: Majority knows the actual
meaning and concept of outsourcing.
Particulars Respondents
Yes 12
No 6
Not Sure 2
Yes
No
Not Sure
0 2 4 6 8 10 12
Respondents
Yes
No
Not Sure
0 2 4 6 8 10 12
Respondents

Theme 3: Zara outsources the raw material
from different countries.
Particulars Respondents
Strongly Agree 8
Agree 4
Neutral 1
Strongly Disagree 4
Disagree 3
Yes
No
Not Sure
0 2 4 6 8 10 12
Respondents
Yes
No
Not Sure
0 2 4 6 8 10 12
Respondents

Theme 4: Cost Controlled is the main
benefits that company is gaining from
outsourcing of the business.
Particulars Respondents
Leverage knowledge and
Skills
5
Increase efficiency 4
Controlled Cost 7
Greater Competitive
Advantage
6
Leverage knowledge and Skills
Increase efficiency
Controlled Cost
Greater Competitive Advantage
0
1
2
3
4
5
6
7
Respondents
Leverage knowledge and Skills
Increase efficiency
Controlled Cost
Greater Competitive Advantage
0
1
2
3
4
5
6
7
Respondents

Theme 5: Outsourcing is a successful
business strategy of Zara.
Particulars Respondents
Strongly Agree 8
Agree 4
Neutral 0
Strongly Disagree 5
Disagree 3
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree

Theme 6: The market share and
profitability of Zara is increased because of
Outsourcing.
Particulars Respondents
Strongly Agree 8
Agree 3
Neutral 1
Strongly
Disagree
5
Disagree 3
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
0 1 2 3 4 5 6 7 8
Respondents
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
0 1 2 3 4 5 6 7 8
Respondents

Theme 7: Outsourcing helps company in
bringing innovation.
Particulars Respondents
Strongly Agree 9
Agree 2
Neutral 1
Strongly Disagree 5
Disagree 3
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
0
1
2
3
4
5
6
7
8
9
Respondents
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
0
1
2
3
4
5
6
7
8
9
Respondents

Theme 8: The major challenges that your
company is facing related to outsourcing.
Particulars Respondents
Language and Cultural
barriers
7
Lack of Control 4
Difference in time zone 3
Legal Issues 6
Language and Cultural barriers
Difference in time zone
0
1
2
3
4
5
6
7
Respondents
Language and Cultural barriers
Difference in time zone
0
1
2
3
4
5
6
7
Respondents