Levels of strategy • Corporate strategy (eg. Virgin‚ Nestle) Strategic Management Business‐level strategy Different ways of competing at the level of the individual Business Unit (SBU) How can competitive advantage be sustained? Hyper‐competition – Which industries/markets should we be in? – How is the corporate portfolio managed? • Business strategy (eg. Virgin Atlantic‚ Nestle babyfood) – Tactics used by an SBU to compete in the market • Generic strategies and how to sustain these
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audience‚ but not in a way that could be considered positive. Is fashion‚ an addictive and destructive vice‚ destroying its intended and targeted audience; the consumer? In 2007‚ the fashion line‚ Sisley‚ whose parent company is United Colors of Benetton‚ released a print ad with the words “Fashion Junkie” in the center of the page. At first thought‚ without having seen the ad‚ a person would not have thought anything negative about it because the term “fashion junkie” is widely used by those who
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operation and development rather than financed by other sources. There is an increasing trend in profitability. This is a good sign showing that Zara is growing well. Financial comparisons among the 4 main competitors in 2001 Zara (Inditex) Gap H&M Benetton Liquidity Ratio (current ratio) 1.02 1.48 3.40 1.63 Leverage Ratio (debt/ equity) 0.75 1.52 0.32 1.27 Profitability (ROA) 13.07% -0.11% 18.78% 5.25% Profitability (ROE) 22.90% -0.27% 24.85% 11.93% Profitability (ROS) 10.47% -0.06%
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Customer Offer Fresh and Fast: Quality: • Fast production and delivery on leading styles • Limited quantities for each style (scarcity) • Medium raw material‚ poor knit‚ grand look • Highly fashionable items at low price Offers Cost: Flexibility • Low monetary cost • Low time cost • Limited variety and choices • Customer’s participation in determining the next batch ZARA’S PRODUCT LIFE CYCLE TYPICAL PRODUCT LIFE CYCLE • Sales decreases as the product moves
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WHAT IS THE ROLE OF ETHICS IN MANAGEMENT? Ethical management refers to corporate management that not only fulfills economic goals and legal responsibilities‚ but also meets the ethical expectations imposed by social norms in conducting business. There are 5 specific functional areas of management which is covered by business ethics : 1) Ethical management in the workplace. Ethical management is the foundation of CSR (voluntary activities undertaken by a company to operate in an economic‚ social and
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management‚ use of information technologies and innovative management strategies‚ which is a must to survive the highly competitive fashion industry it has managed to come out on top year after year. The major competitors include H&M‚ GAP and Benetton. Some of the efficient strategies adopted by Zara are broadly the policies of zero inventories‚ Just in Time systems‚ contract manufacturing for small orders‚ decentralizing warehouses to deliver products and above
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items. These collections are frequently renewed -about every two to three weeks‚ unlike most ready to wear brands following seasonal trends. Zara evolves in the sector of the textile industry‚ and more precisely on the big chains of clothing segments. How does a firm such as Zara‚ performing in such a competitive market‚ succeeded in distinguishing itself from the other competitors? Internal analysis Zara aims for the global market of large retailer fashion. Its generic strategy is either
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With only 6% of the retail sector under the organized segment during2010 (sathyanarayanan‚ 2012)‚ (Subiksha: The saga of the rise and fall of india’s Sam Indian Journal of Marketing42(4)‚16-23.)the country has potential for unprecedented growth and development in the organized retail category that is expected
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ADVERTISING INDUSTRY Case of Turkey As well known from our History classes advertising dates back to the Christian Era when advertising methods were outside signs which were paintings on the walls of a buildings. Archaeologists have found signs in the ruins of ancient Rome and Pompeii which advertised travelers to go to a tavern situated in another town. In 1440’s invention of a movable-type of advertising or printing press took a big part in advertising development firstly in US. Although expensive
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these are located in the same small geographical area‚ Galicia (northwest Spain). The swift flow is facilitated through advanced automation and logistics systems‚ with emphasis on postponement. We compare these network and flow approaches to those of Benetton and Gap‚ and argue that the key to Zara’ success is this combination of a tightly integrated local network coupled to the most advanced flow systems. A final consideration is the sustainability of these orderwinners over time. Keywords: Key words:
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