Organizational Evaluation of Zara Cloth Company [Name of Student] [Name of Institution] Introduction Every organization is defined by specific goals and objectives that dictate operational procedures of the organization (Patten, 1982). As a role of management teams, all operational activities are integrated and harmonized towards full achievement of specific objectives…
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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
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This paper provides a brief overview of the company and its performance in the past few years. The macro environmental analysis of Zara has been done to analyse the effects of the external factors on its business operations. The industry analysis of Zara has helped to find out the current position of Zara in the fashion retail industry.
Zara Spanish Clothing Company [Name] [Course] [Professor’s name] [Date] Operating in around 1,000 stores in more than 60 countries, Zara Clothing Company is one of the major companies owned by the Inditex firm based in Spain. Inditex is a rapidly growing clothes retailer in Europe.
Zara clothing company. The study establishes the business projects and successes of the Zara clothing company based in Spain, which currently owns over 6,000 stores in over 80 countries globally and fashion trend of over 12,000 items annually. The report establishes the macro and micro elements of evaluating progress in Zara and the appropriate steps to measure and ascertain the future outcomes.
The report analyses the strategies both business and corporate strategies that Zara should undertake to maintain and improve the growth of the company. The analysis of the internal and external environment helps to understand how the business operates and what challenges it may face during its operations and how best the company can overcome them.
Zara is a leading fashion retailer store in Spain and most parts of Europe. This company has gained a good standing in the industry by its strategy of fast fashion. The analysis of the external market reveals that the rivalry within the firm is medium to high. This is mainly on account of the fact that the industry is in its maturity stage.
From this paper it is clear that Zara has a systematic and strategic implementation of the fast fashion model which allows flexibility of decision making by allowing members staff to get involved in decision making indirectly through contribution of ideas. Zara has a number of strengths that enables it to have an upper hand against its competitors.
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From this analysis in the case study, strategic options are provided and the recommendations put forward. The strategic options and recommendations provided can be adopted and integrated in Zara business model and all of its operations so as to achieve competitive advantage, strategic positioning in the industry and effectiveness.
15 Pages(6250 words)Case Study
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