The management report - Essay Example

They must have the greatest leverage on both time and costs and for the case study; the report explores the manner in which Zara appreciates both of these to their success. The report explores the ways in which Zara utilizes these three pillars of its operations to a resounding success; (Tolga 2010, p.63, Peters 2011, p.8) posit that short lead time, lower quantities and a greater variety. The short lead time philosophy adopted by the company has aided the firm to churn out more fashionable clothes.

Lower quantities of production often leads to more supply while greater variety of styles leads to more choice and more frequency of determining customer needs. The report will finally consider company A, an apparels company which does not manufacture, but operating in the high end of the city’s prime located district. The report will offer the management of the store a variety of recommendations which are in tandem with the reports results from the analysis of Zara Company. Zara’s Critical Success factors According to Barnes and Lea-greenwood (2006) flexibility in both design and production ultimately determines the success of a company especially in the fast paced fashion world.

This report has identified and explored critical success factors relating to the organizational, technological and managerial impetus that have contributed to the effectiveness and success of the firm within the confines of the case study given. The company employed a number of strategies that catapulted it to success, enabling it to overtake other firms to be the leading apparels maker in the world, although under the banner of the parent company. Organizational Factors Zara operates on strategic organization; the company has enhanced communication flow from production to retail.

The designers receive feedback from those operating the stores regarding customer tastes and preferences regarding clothes, the colors and etc. Zara focuses in its internal market having control in nearly every stages of the product flow, management theorist refer to such behaviour as internalization theory. When they expanded into foreign market, Zara still maintain its internal aspect and does not follow the typical trend of other competitors. Zara’s in-house business model enables overcoming the market imperfection better (Vrijhoef 2011, p.196).  Zara protects all know-how within the firm from design to ready item since it keeps all production in-house.

From the case study one can gather that the business structure adopted by Zara tends to be more closely controlled, and that the firm pays keen attention by having the various business elements in close proximity to each other, around its head quarters in La Coruna, Spain. Unlike the competitors, Zara does not outsource for production from overseas countries that offer cheap labor, where majority of its competitors have pitched camp to take advantage of the low costs. The company closely controls most of its operations from the head office in Spain, including production and retail.

For example, Zara procures most of its dyes from one of the subsidiaries of the parent company. This is a vertically integrated business s structure; through town his structure, the company has been able to offer their customers products at affordable prices and control