Zara International is one of many clothing retail companies. What makes Zara stand out from other clothing stores is their ease of organizing and adapting to the latest trends, which is made possible by controlling all sections of the supply chain. Many of Zara's recent success could be attributed to CEO of Indetex, Pablo Isla, which is the parent company of Zara. His outstanding foresight can lead Zara to further success.
With one of Zara's main advantage of being able to control the supply chain of their products, the clearest example of classical management that Zara display is Fayol's Administrative Principle. Having strict control of the supply chain would require precise control over every aspect of the process. This can only be achieved by having great leaders and managers who are in control of each part of the process. Indetex's Ceo has the foresight to plan Zara's future considering his success so far. The company clearly displays organization, command, coordination, and control of their resources. Without exceptional leadership and management controlling the supply chain would be impossible.
Many companies look at how Zara is functioning and managing their products due to their effectiveness. One of the crucial reason for Zara's success is how quick they keep up with fashion. They're constantly replacing old fashion clothings with new ones within weeks. They keep a low supply of inventory to avoid "oversupply" and to create "scarcity" of different designs. Since they have control of their product, when a design doesn't sell well, their designers are notified to immediately create a new design.
Another reason of Zara's success is due to the informality of their organization. All of their departments are "under one roof," meaning different departments has the chance to know the function of other departments. This leads to ease of information to travel around and allows decisions to be made at a faster pace.
Zara's great success so far and their unique way of organization and management will continue to allow them to expand.
Resource:
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I agree with you in that the access to information is the reality to our world today, which is getting smaller and smaller by the minute due to internet and technology. This too is true for businesses to be able to communicate to other department with ease and efficiency. No department can stand alone. All departments in a company are interdependent and communication between each other is critical.
ReplyDeletei agree with your article Zara has many elements of classical management approach. Zara has a very effective it solution in place. Nowadays accurate information is the primary fact to be sussessful in business world. Zara keep their inventory very accurate. This is primarily for customer satisfaction.
ReplyDeleteIn today's world there is a plethora of information and having access to it is imperative. Access to information is made easier with the use of the internet and growth in technology and it's evident Zara has kept up with this notion. Outside of business, one of the tricks in this game of life is being able to communicate and is a primary reason why Zara is well-regarded.
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