principles of management focusing on Zara management

1. Group 2: Nguyễn Thành Trung, Nguyễn Thị Hoàng Yến, Nguyễn Ngọc
Hải Yến, Trần Thị Hồng Ái, Phạm Trần Tiến Đạt, Nguyễn Quốc Việt
Zara International—
Fashion at the
Speed of Light.
DICUSSION QUESTIONS PROBLEM SOLVING FUTURE RESEARCH
INTRODUCTION
PRINCIPLES OF MANAGEMENT

2. ABOUT ZARA
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DICUSSION QUESTIONS PROBLEM SOLVING FUTURE RESEARCH
INTRODUCTION

3. • Established in 1975 by Amancio Ortega
and Rosalía Mera
• Head office: Arteixo Galicia, Spain
• Owned by a textile organization, the
original name is Zorba, inspired by
the film “Zorba The Greek”
• Nearly 2,300 stores all over the world
ABOUT ZARA
DICUSSION QUESTIONS PROBLEM SOLVING FUTURE RESEARCH
INTRODUCTION

4. 2.1. The classical and behavior management
approaches evident at Zara International
2.2. How can systems concepts and contingency
thinking explain the success of some Zara’s
distinctive practices?
DISCUSSION QUESTIONS
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DICUSSION QUESTIONS PROBLEM SOLVING FUTURE RESEARCH
INTRODUCTION

5. The ways are elements of the classical management
approaches evident in Zara:
-Inditex used all three components of
the classical approaches:
● Scientific management: Carefully select workers who
have the right abilities for the job
● Administrative principles were expressed through
control over design, production, distribution, and retail
sales
● Bureaucratic organization through a clear division
of labor
2.1. The classical and behavior management
approaches evident at Zara International

6. The behavior management approaches evident:
● The Organizations as Communities approach
where managers and workers work in
harmony without one of them dominating
the other
● McGregor’s Theory X and Y workers
● Zara focuses on towards people, paying close
attention to what kind of fashion the public
likes and is in demand
2.1. The classical and behavior management
approaches evident at Zara International

7. 2.2 How can systems concepts and contingency thinking
explain the success of some Zara’s distinctive practices?
Power and flexibility to
accommodate to the
rapid changes and trends
Constantly changing
their products
Makes alterations to their
store fronts every couple
weeks
Zara's systems work in
agreement and
in harmony

8. PROBLEM
DICUSSION QUESTIONS PROBLEM SOLVING FUTURE RESEARCH
INTRODUCTION
SOLVING

9. Zara detects the data for the items, of their stores, and
manages the inventory numbers, to name a few moves
Zara used quantum management techniques will aid them in
keeping track of sales figures and consumer spending
DICUSSION QUESTIONS PROBLEM SOLVING FUTURE RESEARCH
INTRODUCTION
Finally, they have a design team that creates things to
market to the general public

10. You can enter a subtitle here if you need it
FURTHER RESEARCH
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DICUSSION QUESTIONS PROBLEM SOLVING FUTURE RESEARCH
INTRODUCTION

11. By not paying attention to ads, Zara has
its pride to state that it is the monopoly
of fast fashion.
Moreover, the up-to-trend efforts of the
brand require the needs of tech-savvy
customers
Thirdly, in 2012, Zara's e-commerce
layout not only helps centralize
effectively inventory management but
also enables the flow of information and
capital
Is the firm continuing to do well?
DICUSSION QUESTIONS PROBLEM SOLVING FUTURE RESEARCH
INTRODUCTION
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12. GLOBAL ECONOMY
● By focusing on promoting the brand in the long
run, Zara’s strategy is providing fashionable
products as much as it can for every walks of life
● High demand unpredictability and short lifecycle
makes fashion category apparel products
extremely time sensitive but not so price sensitive
● ZARA has a high expansion rate in the world, with
2,200 franchised stores in 56 countries and regions,
90% of which are ZARA direct-sale stores
● Zara's e-commerce layout not only helps centralize
effectively inventory management but also enables
the flow of information and capital
Future competition and the pressure of global economy:
DICUSSION QUESTIONS PROBLEM SOLVING FUTURE RESEARCH
INTRODUCTION
COMPETITION
Zara has three distinctions: vertical integration to
achieve a faster turnaround time; use of franchise and
joint ventures for rapid expansion; and use of the store
as the main tool for promotion, with low spending on
advertising
INDITEX
As Inditex grows, many other fashion companies are
copying its unique business model

13. DICUSSION QUESTIONS PROBLEM SOLVING FUTURE RESEARCH
INTRODUCTION
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