The purpose of this essay is to discuss different supply chain management approaches taken by H&M‚ Benetton and Zara. It is first necessary to explain what a supply chain management means. Supply chain management involves planning‚ design‚ maintenance and control of the flow of materials and information along the chain in order to efficiently satisfy customer’s requirements (Schroeder‚ 2000). Such an approach‚ of looking at the entire supply network helps organisations identify their competitive
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PEST ANALYSIS The global apparel market is a consumer-driven industry. Also‚ globalization and new technologies have allowed consumers to have more access to fashion. As a result‚ consumers are changing‚ competition is fierce‚ and companies are evolving to meet these demands. The company was founded in 1975 by Amancio Ortega in Spain. Trendy clothing brand Zara is known around the world for dressing men‚ women and children in a sexy retail environment that feels a lot more expensive and exclusive
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Mission of Zara 1. Response very quickly to the demands of target customers‚ who were young‚ fashion-conscious city dwellers and their tastes in clothing changed rapidly and hard to predict 2. Take advantage of intelligence and trust the judgment of employees throughout the company instead of relying on a small set of decision makers SWOT Analysis SWOT analysis analyzes current situation of organization and identifies factors that may affect desired future outcomes of the organization
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Raoul and Giordano. Vision “ZARA is committed to satisfying the desires of our customers. As a result we pledge to continuously innovate our business to improve your experience. We promise to provide new designs made from quality materials that are affordable” Mission Statement “Through Zara’s business model‚ we aim to contribute to the sustainable development of society and that of the environment with which we interacts.” Target Market & Price Zara sells apparel‚ footwear and accessories
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CHAPTER 1: COST VOLUME PROFIT ANALYSIS LEARNING OBJECTIVES: At the end of this chapter‚ you should be able to: * Describe the differences between the accountant’s and the economist’s model of cost volume profit analysis. * Apply the cost volume profit approaches in the calculation of breakeven point‚ margin of safety‚ target selling price and sales volume. * Construct breakeven‚ contribution and profit volume graph. * Apply cost volume profit analysis in a multi product setting *
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Measuring‚ Monitoring‚ and Motivating Performance Cost Management Chapter 3 Cost-Volume-Profit Analysis Prepared by Gail Kaciuba Midwestern State University © John Wiley & Sons‚ 2005 Chapter 3: Cost-Volume-Profit Analysis Eldenburg & Wolcott’s Cost Management‚ 1e Slide # 1 Chapter 3: Cost-Volume-Profit Analysis Learning objectives • • • • • • Q1: What is cost-volume-profit (CVP) analysis‚ and how is it used for decision making? Q2: How are CVP calculations performed for a single product
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Company Overview Zara is a Spanish chain store of Inditex Group‚ one of the world’s biggest retail store in the world. • Founded by Amancio Ortega‚ in 1975 in Spain‚ where it’s still home to it’s headquarters today. • At the beginning Zara sold low price Then he changed the design‚ manufacturing and distribution so he could make clothes quicker‚ and that way react to trends faster. The Zara BrandIndustry Anlysis 5/31/2011 Product Development Consumer Analysis Market Analysis 3 5 Keys
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Started in Los Angeles in 1984‚ Forever 21‚ Inc. is now celebrated by many style conscious and trend-savvy shoppers. Voted as one of the top three teen shopping brands nationwide‚ Forever 21 offers a constant flow of fun and creative clothing designs and accessories for women‚ men and children. It also carries women’s footwear‚ lingerie‚ plus sizes‚ and cosmetics at bargain basement prices. Currently‚ Forever 21 operates over 480 stores worldwide including its ecommerce site. Capitalizing on its
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(A) The payback is 35‚000/5‚000= 7 years Computation of the NPV : 15 NPV= -35‚000 + Σ 5‚000 / ( 1 + 12%)^ 15 i=1 NPV = $- 947. 67 Computation of the IRR : 15 0= -35‚000 + Σ 5‚000 / ( 1 + IRR)^ 15 i=1 IRR= 11.49% The NPV of this project is negative and the IRR is lower then the Cost of Capital (12%) Rainbow products shouldn’t go for
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19/02/2008 Source: Inditex Website Brand Quantity Zara 1‚134 Pull and Bear 520 Massimo Dutti 426 Bershka 510 Stradivarius 383 Oysho 293 Zara Home 205 Kiddy ’s Class/Skhuaban 230 TOTAL 3‚701 Inditex‚ as stated on its website‚ is one of the world’s largest fashion distributors: nearly 6 million of items were put on the market in 2006 (Figure 1). With eight sales concepts Zara‚ Pull and Bear‚ Massimo Dutti‚ Bershka‚ Stradivarius‚ Oysho‚ Zara Home and Kiddy ’s Class they boast nowadays 3‚701
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