ZARA CASE 1. Which theory is the best representative of Zara’s (Index’s) internationalization? Zara has applied the Uppsala internationalization model to their strategy‚ and even more than that. This theory shows that international activities require both general knowledge and market-specific knowledge. Therefore‚ the more understanding the company has in a specific market‚ the more value and succeed they can create. That is also exactly what Zara applied to their internationalization strategy during
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INDIVIDUAL ASSIGNMENT 1. What makes Zara different from other specialty apparel retailers? What are the main differences in the business models of Zara and H&M? Zara’s greatest strength and at the same time the difference from other specialty apparel retailers lies in its supply chain ‚ which allows Zara to turn over new styles in a fraction of the time ( three weeks ) it takes conventional retailers. It is interesting how the two leading fashion retailers ( Zara and H&M ) have totally opposite
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1. With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results? Why? What do comparisons indicate about Inditex’s relative operating economics? Its relative capital efficiency? We think H&M’s financial results are the most interesting one to compare with Inditex’s. H&M is the most important and largest competitor of Inditex and due to their similar background‚ both being large international European apparel brands and offers fashionable
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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
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Corporate Ownership & Control / Volume 4‚ Issue 4‚ Summer 2007 96 CORPORATE GOVERNANCE: SHAREHOLDERS’ INTERESTS’ AND OTHER STAKEHOLDERS’ INTERESTS Elena F Pérez Carrillo* Abstract Much of the traditional Company Law doctrine considers that Corporations must be managed to promote‚ above all‚ shareholders’ rights. Activities in favour of non-shareholder constituencies such as suppliers‚ consumers‚ employees or the Community at large can be perceived as a means of Management to increase its
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The 2 1st-centur y Supply Chain Spanish clothier Zara t urn s the rules o f supply chain management on thei r head. The result? A superresponsive network and p rofi t margins t ha t are the envy o fth e industry. ire Fiilflllment by K asr a Michael A. Lewis‚ and Jose A.D. Machuca !04 W hen a German w holesale r suddenly canceled L1 big lingerie order in 1975‚ Amancio Or- tet;;a t hough t his fledgling clothing company might go b ankrupt . All his capittil was tied up in
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Case: Operations Strategy of Zara Question 1: Zara has a variety responsive supply chain. (a) Does it offer a competitive advantage‚ and (b) how does this affect supply chain design and performance? (a) Yes Zara’s responsive strategies improve the efficiency of information exchange in every level of supply chain; customers‚ store managers‚ designers and market specialists‚ production stuffs‚ subcontractors‚ buyers‚ warehouse managers‚ distributors‚ and so on. As a result of efficient exchange
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com/1361-2026.htm CASE STUDY Internationalisation of the Spanish fashion brand Zara Carmen Lopez and Ying Fan Brunel Business School‚ Uxbridge‚ UK Abstract Purpose – Research on the internationalisation of retailing has been mainly focused on market entry issues. This paper attempts to examine the internationalisation process from an international marketing perspective using Spanish fashion retailer Zara as a case study. Design/methodology/approach – An in-depth case approach was adopted
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This case is relatively strategic in the context of the chapter that supports it. Chapter 3 in the text examines what might be termed the more ‘strategic’ aspects of supply network design. Chapter 13 (this chapter) treats some of the more operational issues. Yet‚ the boundary between what is strategic and what is operational in supply network/chain management is somewhat arbitrary. And although this case does not examine the very operational issues of how each of these companies’ supply chains operates
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expected to show high resistance in response to it. Even though Zara has a decentralized decision making process‚ the retailer’s IS department exercises absolute autonomy on the IT infrastructure and design. The fact that “only one person had left the department” in the past 10 years further confirms that the retailer is suffering from cognitive and action inertia‚ and thus creating a huge barrier for such upgrade. Nevertheless‚ Zara should still perform such upgrade in the long run. Q1b. Should
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