Organizational Evaluation of Zara Cloth Company - Essay Example

The Company is an active member of the Inditex group (Tungate, 2008). The chain store was founded and is currently owned by Amancio Ortega and Rosalia Mera. Zara produces quality cloths that have attracted customers in the entire globe. This paper evaluates certain organization functions of the organization. Physical Assets, Products, Manufacturing and Distribution Success of Zara Chain Store has been attributed to extensive utilization of its opportunities through online services (Badia, 2009).

To enhance sale of its products, Zara uses both offline and online shops, which increases its customer-serving capacity and physical market coverage. The company has not only used online communication to contact its clients, but also to advertize its products. The chain store has successfully opened several online shops and plans to launch several services in all its outlets. According to Badia (2009), branches of Zara are vertically integrated retailers. That is, though the branches use different production processes, they are united by a common goal (Harrigan, 2003).

Different products produced are, consequently, integrated to satisfy a common need. The Clothing Store produces large quantities of clothes of different fashions, styles, or designs and covers all groups of people. Sale of the products is done either locally or exported to foreign market. Zara products are manufactured in various stores in Spain, Europe, Asia, and Africa (Tungate, 2005). As another vital asset of the organization, recent success of Zara is attributed to the launching online boutique by the Inditex in September 2010.

The online shopping provision was first initiated in Spain, United Kingdom, Italy, Germany, Portugal, and France markets. Launching of the boutique website was preceded by creation of a cyberspace due to high demand for online shopping (Tungate, 2008). The two sites function like physical shopping stores in, which a wide range of products are provided at fair prices. The online service also provides different payment methods from which a customer can select a method that best suits him/her. In addition, the website provides a variety of delivery methods a customer can use after ordering a shipment.

A customer can either pay for a postal delivery or be free to pick his/her purchase from the store (Badia, 2009; Tungate, 2008). Human Resource Management in Zara In Zara Chain Store, existence and functionality of Human Resource Management (HRM) depends diversity within a workforce, employee relations, and training and skills development (Tungate, 2008). Expansion of the organization has triggered the need to design appropriate ways of obtaining and maintaining quality performing employees. Resource managers in various Zara stores, therefore, concentrate on maintaining good relationship between employers and employees and among employees.

Resource management in Zara, in effect, focuses on satisfactory productivity, improved motivation, and high morale upkeep of workers. In Zara Stores, diversity in HRM reflects variations present in its workforce. Workforce diversity in Zara is attributed to differences in various demographic factors. Such factors include age, gender and social class. With the increasing need for employees due to advances in technology, management teams in Zara constantly strategize on ways of