Zara Case Study 2

In what ways are elements of the classical management and behavioral management approaches evident at Zara International? Inditex’s group known a ZARA had implemented elements of both classical management and behavioral management approaches. Starting off with the Classical Management, ZARA has used some of the principles of Henri Fayol’s Administrative principles. Building their business model to identify the following five “duties” of management, which are foundations for the four functions of management planning, organizing, leading, and controlling. Foresight to complete a plan of action for the future, this was apparent when they developed their supply chain to accommodate shipment levels till 2012. Organization was seen by ZARA’s mobilization of resources to implement their plans. Commanding and Coordination are seen in employee’s duties from store managers marking hot items, in-house manufacturing for hot items and supplying outside manufactures with their own materials. The last element is Control, making sure things happen according to. ZARA’s been able to keep turn over high while keeping expensive inventory levels down, out preforming all of their competitors in this variable. On the other hand Behavioral management is clearly noticeable when you consider ZARA is Inditex’s largest and most profitable brand, bringing home 77% of international sales and nearly 67% in 2009, while Inditex has over another 100 companies to help support ZARA, this concept goes hand in hand with the concept to organizes as communities.
How can systems concepts and the notion of contingency thinking explain the success of some of ZARA’s distinctive practices? Follett believed that business problems involve a wide variety of factors that must be considered in relationship to one another. Today, we talk about “systems” and “contingency thinking. Contingency thinking avoids “one best way” arguments, instead recognizing the need to understand situational differences and respond