Zara International is a very fashionable and affordable clothing chain globally and has a strong brand name in my opinion. Zara shows many elements of classical management. Most notably is Zara's ability to be efficient. Fredrick Taylor's scientific management is clearly evident in the aspect of Zaras's quick turn around of runways to stores allowing only 2 weeks for the company to get the garments into stores. Zara also is able to distribute out of stock items within 24 to 48 hours depending on its global location. To me, these efficient qualities refer to Taylor's management and Zara had created the best way to perform a task by creating a science that works well for the company. Not only have they created a science but must of employed the correct people and trained them well. I refer to the 200 professionals of the creative team that keep up with the latest fashions. Also, Zara must have some aspects of an ideal bureaucracy with a clear division of labor. The jobs must be so well defined that the employees are that good and quick for Zara stores to receive the latest fashions within such a short amount of time.
Behavioral management approaches are evident in Zara International. With an excellent flow of production and high revenues and sales, its not just the product that creates such great achievements. In the article references to the managers tracking sales data and given opportunities to replicate eye catching layouts that are emailed from stylists at headquarters shows that headquarters does give a lot of responsibility and trust to its store managers. This seems like theory Y management that allows its staff to be creative. This is also shown with its creative team of 200 employees. With such a large division and with such quick designs created, freedom of creativity must be important for a company that moves so fast. The company employs more than 80,000 workers and has over 1,500 stores worldwide. The managements behavioral approach must be on point for such productivity to occur in all of its operations.
Zara's system concepts are strong. It uses its inputs of employees creativity, fabrics, revenues and sales as well as technology to communicate so quickly to transform into finished clothes that sell fast. And by making small batches at first that can be quickly replenished is a great quality. Zara has many subsystems from its headquarters to creative team to its stores employees as well as its accounting and logistics centers that come together so well for it to be so successful, efficient and effective. Zara's success does not just come from one department but its communication throughout all subsystems using its resources of employees and technology.
When it comes to contingency thinking, Zara depends on all its subsystems to reflect of the environmental changes as in customer demands. Its best way to manage is done by quickly turning runway into affordable clothing. When fashion changes, Zara is quick to adapt and has a great team of creative people to recognize these changes and act quick. Its small batches and sales data tracking is a great way to manage and minimalize its inventory.
Today in my opinion Zara is still pushing forward increasing in size and revenue. In an article from renowned British newspaper The Guardian, Zara still is increasing growth at a phenomenal rate with profits up by 30% from its first quarter of 2011 to 2012. The article expresses how Zara's huge success has made owner Amancio Ortega the third richest man in the world. The Guardian also point out how competitor Mango's sales have fallen by 38.5%.
In my opinion, it is clearly evident of Zara's success here in New York City. Its flagship store opened on 5th Ave by 52nd street and this store alone represents Zara as a major competitor in the fashion market. An article by NBC New York gives a great report on the stores operations and how much man power is going to be invested to make the store function. With 32,000 square feet and 450 employees required, this store by far is not cheap to run and shows the capabilities, growth and success of the company. Zara is a leading fashion retailer globally and from its owner to the flagship store in New York City we can see just how successful the company really is.
It's clearly evident that this company has been doing something right. As you stated in your post, they are located on a very high fashion street which is 5th Avenue and they still manage to compete against companies that sell clothes that are far more expensive than theirs. Even though the article we have read for class is old, we were able to research how the company is doing now, and they're still generating money despite the recession. I read an article where they said that zara alone generated 332 million euros. That's just amazing if you ask me. It goes to show you how much of an impact managment can have on a company.
ReplyDeleteI completely agree about your statement of Zara's success here in NYC. In the fashion capital of the U.S., the company quickly meets the needs of the most demanding customers by considering the latest fashion trends at discounted prices.
ReplyDeleteI agree with your statement on the success rate of Zara here in NYC. It demonstrates how a different approach to a system of management can in fact generate a great amount of revenue in a company that is up against difficult competitors in NYC and worldwide.
ReplyDeleteNice work. I also agree to your Fredrick Taylor's scientific management because the way they work with the communications and distributing products are very well organized with efficiency.
ReplyDeleteAs Adams mentions, the logistics that are used in the mechanics of the operation flow of Zara are envied by many. Very few companies is able to restock their shelfs within 24-48 hours (depending the continent the stores are located). Its fast production-to-shelf strategy allows them to capture the hottest demand on the market and capitalize from it. Its high efficient and well-organized structure allows Zara to be at a competitive edge that is paramount to other competitors. Perhaps the biggest reason for its success is that Zara is able to produce and sell the most popular fashion trends fast and at an affordable price.
ReplyDeleteThe way that Zara has become so successful is very impressive. Company does its task by own way, which is not similar to other clothing companies do. I agree that Zara would increase growth so fast, and I’m so impressed Zara does its business very efficiently. After I knew Zara’s ability of taking the newest fashion into the stores within two weeks and keeping it up, I feel I’ll go visit the store more often.
ReplyDeleteI completely agree with you on what you said about Zara's management approaches and its future.Zara is doing very well compare to its competitors such as HM and Mango.It keeps exanding and focusing on online sale.Besides about Zara, i think your article is very clear and logic.You explain your ideas very well,always use evidence to support you statement.
ReplyDeleteI was impressed how ZARA can maintain their flagship store on 5th avenue. I belive there are only few affordable fashion brands can afford to maintain their business there. I remember Forever21 store on 5th avenue ,was not able to sustain in that location. It is such an ideal business operation for borh manufacturer and customers since the brand is affordable for people and profitable for the vendor
ReplyDeleteI totally agree that Zara successful zara in nyc is. Its a huge store with great prices and meets everyones needs.To do well on 5th avenue is hard and Zara is obviously keeping up.
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