1,Zara international evidents Fayol’s administrative principles: foresight, organization, command,coordination,control. Foresighting its distinctive system would be a wise choice in this downturn ecnonmy, and takes it into actions. Hiring 200 professionals keep up with the lastest fasion. On market, store managers record sales. Manfacutre knows what to product according to these datas. Divisions share imformation and put efforts together results in increasing sales and low inventory. Zara also evidents Fayol’s scalar chain principle. Zara defenitly has a clear and unbroken line of communication from the top to the bottom in the organization.
2. I think Zara's operation management is doing good job. Well supply chain management, workflow designs and production planning.Not only the top can communicate to the bottom but also the bottom can make effeort to the top. While manufacture take control of productation, distribution center can also tell manufacture on what to produe by using managers’ sale datas. Unlike H&M, Zara only product clothes consumer like , resulting in high sale and low inventory.Also Zara's divisions responses very quick so that shoppers can access to lastest fashion ." The distribution centers an have items in European stores within 24 urs of receiving an order, and in American nd Asian stores in under 48 hours.” and "It takes just two weeks for the company to update existinggarments and get them into its stores; new ieces hit the market twice a week“
3,Th open-systems concept, the cooperation among subsystems and the notion of contingency thinking helps explain Zara's success.Zara emphasizes on the needs of their customers. Recording hot sales and base on consumer's preference to manufacture.The integration among subsystems, such as manufacturing, distributing, sales,and information is a key for Zara's success. Subsystem share information and cooperate with each other. Contingency thinking also help to explain Zara's success. Zara's operation system is very flexible.Make immediately stop on products recorded low sale, and make order to hot sales items. It keeps inventory low .
4,Zara continues doing well. According to Wall Street Journal's report on March 21 2012," Inditex has performed better in the economic downturn than rivals such as Gap Inc" and its " Net profit rose to €1.93 billion ($2.57 billion) in the fiscal year through Jan. 31, up 12% from €1.73 billion a year earlier. Sales rose 10% to €13.79 billion, and comparable-store sales were up 4% on the year." Furthermore, Bloomberg Businessweek reported "Inditex is counting on online sales rather than store expansion to power sales at its Zara chain and trump rival H&M in the U.S." I also believe focusing on on-line sale now would benefit Zara more than physical store expansion.
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