ZARA

1    1. Zara’s use of division of labor enhances its efficiency greatly. Because each team and role is so specified, they can all do their job and send their work to the next individual or team as quickly as possible. This generates an environment where a job becomes almost second nature, and greater efficiency is the result.

2    2. Operations management is definitely in practice at Zara. They strive of effectiveness and efficiency above most other things. Project management and inventory management play crucial roles in Zara’s business plan. If workers are not on top of their specified job, and if inventory is not perfectly organized, managed and distributed, the end result will not meet up to Zara’s standards. The fact that everything from design to retail sales are done by Inditex only increases the efficiency and allows for a lower price-point on the items.

3    3. Zara understands that the importance of contingency thinking in a global retailer such as their self is very important. When providing service worldwide, it is important that they use different methods in different economies and areas of the world. Their methods of getting the current trends into their stores faster than anyone else are highly efficient and create much of their success.

4    4. Zara’s statistics are continuing to improve. BBC says, “Inditex reported a net profit of 944m euros ($1.23bn; £758m) for the six months to 31 July, up 32% on the same period last year.” This article also states that Zara has recently increased their online retailing, and are continuing to do so. In this modern age it is important that retailers utilize e-commerce, as it is a fast-growing and lucrative industry. If they continue to expand online as well as globally they should remain powerhouses in the fashion industry.

http://www.bbc.co.uk/news/business-19645749

http://www.fibre2fashion.com/industry-article/free-fashion-industry-article/zara-the-driving-force-in-fashion/zara-the-driving-force-in-fashion1.asp