1. In what ways are elements of the classical management approaches evident at Zara?
Zara used two components of the classical approaches: scientific was hire workers with the right abilities and administrative principles that states by Henri Fayol.
According to Fayol’s studies, there are identifies five “rules” or “duties” of management in respect to foresight, organization, command, coordination, and control.
Foresight, which is making plans for the organization, and Zara plan “go fast” and to double in size in the coming years while making sales of more than $15 billion.
Organizing, which is provide and mobilize resources to implement plan. The implementation of just-in-time production and inventory reporting system helps to shorten the time from order to arrival.
Commanding, which is lead, select, and evaluate workers. Zara employ a creative team of 200 professionals to help it keep up with the latest fashions.
Coordinating, which is fit diverse efforts together. Inditex, (Zara’s parent company) will monitor each stage of sale to make sure everything goes well, since design, production, distribution, and retail sales all controlled by them.
Controlling, which is make sure things happen according to plan, take necessary corrective action. Zara store manager will track sales data to check which items are not popular so the designers can design new looks.
2. How do you see operation management in practice at Zara?
The essentials of operations management include such things as business process analysis, workflow designs, facilities layouts and locations, work scheduling and project management, production planning, inventory management, and quality control.
Take the location as an example; many of the Zara stores are located in some of the world’s glitziest shopping streets, like New York’s Fifth Avenue, where many branded fashion stores are located. Other than high visitors flow rate, Compare to those leading intentional fashion brands, Zara is able to sell high fashion at a lower price.
And Zara has quantity control. Most of their clothing lines are not replenished. It adds scarcity value to their clothes. And they would have too many inventories since they had limited quantity of products.
3. How can systems concepts and the notion of contingency think explain the success of some of Zara’s distinctive practices？ An open system transforms resource inputs from the environment into product outputs. Zara employ 200 professional to study latest fashion trend (information input), then create new design clothing, sell to the customers (output).
Contingency thinking tries to match management practices with situational demands. Since Zara is related to fashion, and time is crucial in fashion industry. Hence, Zara have to compete with time for profit. “It takes j It takes just two weeks for the company to update existing garments and get them into its stores; new pieces hit the market twice a week.” Since, Zara is able to make high fashion clothes in cheap price and short time. It’s successful in fast fashion
Case 3 – Patagonia
1. While Patagonia has a history of putting sustainability ahead of profits, it cannot do so at the expenses of operating capital. Based on what you learned about Patagonia’s ideals, how do you think the company determines what possible ventures will be both practical and environmentally friendly?
1% For the Planet is one of the programs Patagonia participated. It is secures pledges from companies to donate 1% of annual sales to a worldwide network of nearly 2,400 environmental causes. Many company worry that environmentally friendly could not coexist with profit. 1% of annual sales may not be too much, it would not stop the company’s normal operating. If every one could contributes 1% back to the environment, it will make huge different. And now, more than 1,350 companies participate, raising more than $20 million in 2010.
2. What could Patagonia do today to confirm that Yvon Chouinard’s ideals become a permanent part of the company’s culture after he leaves the company? Yvon Chouinard had influenced a lot of people to run an environmentally friendly organization. When Yvon Chouinard’s ideal has become the company’ culture. People will be attracted to the company. As long as more people are influenced and committing to this idea, his ideals will be permanent. Moreover, Patagonia could make recycling old clothes a profitable business. When recycling becomes a way for the company to earn revenue, Yvon Chouinard’s ideals will be permanent part of the company’s culture.
3. Imagine you were asked by Yvon Chouinard to propose a new sustainability initiative for Patagonia. What would you choose, and why? Recycling is not the only way to be environmentally friendly, creation could is another way. Some material could be recycled infinitely, but some could not. Patagonia could set up a research center to create new material that can be recycled infinitely. They could use the material in their products. A research center will belong Patagonia. The results of research will benefit the company. It would makes Patagonia stands out in the industry and make profits, and also achieve Yvon Chouinard’s ideals.