Zara s Business Level Strategy Essay - 2094 Words

With total net sales reaching â‚ ¬10.47 billion in the first half of 2016, 7096 stores in 92 countries, and an online presence in 39 countries, Inditex is one of the leaders of the clothing retail industry, having recorded positive growth in all geographical areas of its presence in the first half of 2016 (Inditex, 2016c). The flagship brand of Inditex, Zara, has contributed to that growth with â‚ ¬13.628 million net sales through its 2162 stores and its online presence in 27 markets (Inditex, 2016a) In an environment exposed to consequences of global changes in raw material prices, labour costs and rapidly improving technology, Inditex and Zara have been operating with significant and steady success through the past decades. This essay will analyse the strategic decisions behind this seemingly undisturbed growth, with specific attention to Zara’s business level strategy and the way the company manages the potential tension between profitability and social responsibility. Potential future threats and opportunities will also be considered, to evaluate whether the current business model which, as highlighted by chairman and chief executive Pablo Isla, fully integrates bricks-and-mortar stores and online, is sustainable. Inditex s goal, as stated on their website, â€Å"is to offer products of the highest quality to all its customers at the same time as striving to develop a business that is sustainable.† This statement emphasises the diversity of customer groups Inditex targets. TheShow MoreRelatedZara - Marketing Research1034 Words   |  5 PagesTask 1 zara marketing research Zara is a spanish chain store in Inditex group, one of the worlds biggest retail store in the world who are also owners of zara home. Zara is a fast industry bt its unique business model is based on innovation and flexibilty. they design and distribute a garment to the market in just 15 days. they always have new products but in limited supply. the customer feels there is an exclusitivity , since only a few items are on display even though stores are plannedRead MoreZara Case1472 Words   |  6 Pagesexpected to show high resistance in response to it. Even though Zara has a decentralized decision making process, the retailer’s IS department exercises absolute autonomy on the IT infrastructure and design. The fact that â€Å"only one person had left the department† in the past 10 years further confirms that the retailer is suffering from cognitive and action inertia, and thus creating a huge barrier for such upgrade. Nevertheless, Zara should still perform such upgrade in the long run. Q1b. ShouldRead MoreZara, The Largest International Fashion Companies Of The World1608 Words   |  7 PagesZara is one of the largest international fashion companies of the world. Founded in 1975 in La Coruà ±a by Amancio Ortega, the company still lives by the simple idea of linking the customer demand to manufacturing, and link manufacturing to distribution. In 1985, Inditex became the holding company of Zara and Jose Maria Castellanos. Ortega and Castellanos both believed that in order to success in the type of business they wanted to build, the use of computers, a quick response to customers and disintegratedRead MoreZara Postponement Strategy1702 Words   |  7 Pagesï » ¿The case of Zara – The Postponement strategy I) Introduction In order to compete in the world of rising globalization and shortening of product life cycle nowadays, firms have to deal with the demand for increasing product variety to meet the diverse needs of customers. Mass customization has become a requirement for many businesses especially in the dynamic, fast-changing industries. However, the more product varieties, the more difficult it is to forecast demand, control inventory and manufactureRead MoreZara Internationalization Analysis1099 Words   |  5 PagesZARA-Internationalization Analysis When it comes to internationalization strategies, ZARA is the perfect case to look at. By putting in practice a set of different strategies, ZARA has accomplished great positioning worldwide and is one of the most recognized brands in the apparel market. Listed below are the main internationalization strategies ZARA has used to become one of the leading clothing brands in the world. Operating Filial When ZARA first started opening stores outside of SpainRead MoreZara Case Study1404 Words   |  6 PagesCompany Case: Zara: The Technology Giant of the Fashion World Identification of the Problem/s or Issue/s Zara, a Spanish-based chain owned by Inditex, is a retailer who has taken a new approach in the industry. By owning its in-house production, Zara is able to be flexible in the variety, amount, and frequency of the new styles they produce. With their unique strategy, Zara has the competitive advantage to be sustainable. In order to maintain that advantage and growth they must confront certainRead MoreThe Marketing Strategy Of Zara1394 Words   |  6 Pagescompanies operating in today’s business environment. The success of companies largely depends on its marketing strategies. It has thus become necessary for businesses to invest heavily in marketing to have chances of succeeding in the market. Zara, just like any other big business organization employs unique marketing model to help it achieve its targets. This paper examines the fashion marketing strategy and brand development strategies of Zara. Company Background Zara is a Spanish chain store of InditexRead MoreZara Operation Strategy1286 Words   |  6 PagesContents Introduction 2 Business Concept 2 Four Perspectives of Operation Strategy 2 Top-Down versus Bottom-Up Perspective 3 Top-Down Perspective 4 Bottom-Up Perspective 4 Market Requirement versus Operations Resources 4 Market Requirement Perspective 5 Operation Resources Perspective 5 Conclusion 5 Reference 6 Introduction Zara is a Spanish fashion and accessories retailers that founded in 1975 by Amancio Ortega and Rosalia Mera (Ledesma, 2013). Zara designs, manufacturesRead MoreZaras Case Study1373 Words   |  6 Pagesdoes it differ from its Competitors? â€Å"Zara has pioneered leading-edge fashion clothes for budget minded young adults through a tightly integrated vertical structure that cuts delivery time between a garment’s design and retail delivery to under three weeks (against the industry norm of three to six months)† (Grant, 2010, p.212) According to Clayton Christensen in order to process you Value Proposition you must look at the following (Harvard Business Review) Zara’s value proposition isRead MoreZara Fasion King1741 Words   |  7 PagesCase discussion ZARA: FAST FAHION 1) What is Zara’s basis of competitive advantage? How does it travel globally? At the heart of Zara s success is a vertically integrated business model spanning design, just-in-time production, marketing and sales. The key to this model is the ability to adapt the offer to customers desires in the shortest time possible. For Zara , time is the main factor to be considered, above and beyond production cost. The group believed that vertical integration gave

Civic And Social Responsibility Of The Project Management...

Civic and Social Responsibility Gerald Miller Davenport University Civic and Social Responsibility All fields of business, including the project management field holds a duty to making a conscious effort to provide back to the community. This can sometimes be overlooked in the speed and ramifications of everyday business work, yet there are still people that find ways to connect professional organizations, colleges, and business leaders together to reach out to the project management community and others to provide opportunities that all parties involved can learn and grow from. Impacts of â€Å"The Project† From â€Å"The Project† competition, I have learned that the project management field is an ever evolving industry of its own. â€Å"The Project† competition was able to bring together a professional organization, colleges, and business leaders to positively impact the project management field and the community Being able to put together a group of PMP Certified Mentors, was critical of the success and impact of this competition (PMI Western Michigan, 2012). By using a competition of pitching a fictitious project to business professionals, decisions on the projects determined by the business professionals were able to give unbiased feedback to the various pitched projects. By utilizing this unbiased feedback from PMP Certified industry professionals was a huge success for the Project Management field, its students, and the community. I believe that the projectsShow MoreRelatedDefining Civic And Social Responsibility920 Words   |  4 PagesCivic / Social Responsibilit y Defining Civic and Social Responsibility In a recent article concerning corporate social responsibility, it reveals; â€Å"a survey conducted by and BEYOND Communications Inc. shows big changes in how CEOs reported on corporate social responsibilities.† (Go figure - corporate social responsibility, (2005). The point of view is changing within the corporation world. CEOs are now taking note that this needs to be incorporated into the corporate structure and is a significantRead MoreThe Participatory Irrigation Management Policy1261 Words   |  6 Pagesthis case (Merrey et al., 1992) the alternative approaches to encourage public participation was highlighted aiming rural development by participation in irrigation management. 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Ashley Grant1734 Words   |  7 PagesK-12 schools and philanthropic associations. The backing from these grants give schools educational field trips and whatever else they require subsidizing for the most. They additionally support free and diminished cost affirmation at museums and cultural i nstitutions across the nation. Since 2007 Target has been giving these field trip grants program to schools so millions of students can go on field trips. Each grant is esteemed up to $700. They give out grants to a primary school in the place whereRead MoreA Critical Evaluation Of How Management Affects The University Of Manchester s Vision Of Social Responsibility1586 Words   |  7 Pagesevaluation of how management can contribute to the University of Manchester’s vision of social responsibility Innovation. Leadership. Coordinating. Planning. These are only four out of an infinite number of words that can describe not only management, but also a manager. Over the years, management has developed greatly, evolving from an unrecognized discipline or practice (Cunliffe 2014) to one of the pillars of society. Daft et al (2010, p. 3, p. 5-6) argue that â€Å"the nature of management is to motivateRead MoreCommunity Development And Civic Engagement1538 Words   |  7 Pages The title of our course is community development and civic engagement. Please define community development and the community development process. Please provide the various approaches that one can use in conducting community development? What are the similarities and/or differences among the approaches you that selected? Do you think one approach is better than another in addressing community issues? Why or why not? Community development is a multifaceted process that involves members of communityRead MoreComparative Public Administration1500 Words   |  6 Pagesyou understand by Comparative Public Administration? 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In 2016, World Telecommunication and Information Society Day (WTISD-2016) will focus on the theme: â€Å"ICT entrepreneurship for social impact†, in accordance with Resolution 68 and as endorsed by ITU Council 2015.The theme for WTISD-16 is in line with ITU’s work in unlocking the potential of ICTs for young innovators and entrepreneurs, innovative SMEs, start-ups and technology hubsRead MoreEsquel Group14861 Words   |  60 PagesAcknowledgements Civic Exchange acknowledges the assistance and guidance of the following individuals and organizations in preparing this report: Ray Anderson, Interface Inc. Brenda Bateman, International Resources Group Mike Bertolucci, Interfac e Inc. E. Milton Bevington, Servidyne Systems, LLC Paula Lawton Bevington, Servidyne Systems, LLC Glenn Frommer, Mass Transit Railway (MTR) Corporation The Esquel Group Civic Exchange also thanks the Hongkong and Shanghai Banking (HSBC) Corporation

The Day the Earth Stood Still †1951 vs 2008 Free Essays

â€Å"The Day the Earth Stood Still†, (1951) vs. â€Å"The Day the Earth Stood Still†, (2008) From the 19th to the 20th century there have been many changes in film. Movies went from silent features in black and white, to color with surround sound, and now to digital 3D. We will write a custom essay sample on The Day the Earth Stood Still – 1951 vs 2008 or any similar topic only for you Order Now One of the biggest changes occurred with special effects and the help of CGI (Computer Generated Images), which enhanced movie scenes and brought imagination to life. History has shown us that technology dictates where and how we watch movies, and it is continually evolving. In the 1950’s, television started drawing people away from the movie theatres, until the introduction of technical innovations such as â€Å"Cinerama, Cinemascope, and 3D, reversed the trend.† (Art Institute of Pittsburg Online) Since then, digital technology has brought movies back into the living room once again, delivered on DVD to our HDTV’s. These changes have had a huge impact on society, the way we view our lives, and the prospects of the future. â€Å"The Day the Earth Stood Still† compares two versions of the same movie made 57 years apart: the original was produced in 1951, and the remake was made in 2008. The original movie is one of the first alien invasion movies ever made and has become one of the classic sci-fi thrillers of our time. The alien in this movie, Klatuu, comes to Earth to issue a dire warning about its inhabitants’ aggressive nature. He states that man’s constant violent nature against one another has raised the attention of â€Å"an alien species, which is now threatening to exterminate all of mankind.† (â€Å"The Day the Earth Stood Still†) The premise of the 2008 movie is that humans are destroying earth at an escalating rate, so they have to die in order to save the planet. â€Å"If humans die, earth lives. If humans live, earth dies.† With the melting of the polar ice caps and the threat of global warming, there are real-life consequences that give plausibility to this modern plot. Klatuu requests a meeting with the leaders of all nations. In the older movie, this was redefined as â€Å"a meeting between the 2 super powers; the United States and Russia.† In the early 1950’s when this movie was produced, a meeting between the U.S. and Russia would be unthinkable. World War II had just ended and we were in the middle of the Cold War. McCarthyism was at its height and the paranoid fear of Soviet domination was an obsessive national past-time. The movie was influenced by the use of the atomic bomb and our wars against each other. In that time period, there was a test of the atomic bomb of out in the Yucca Flats in New Mexico. It was believed that if one day these bombs could be strapped to rockets, it would destroy the earth. Unfortunately, there are still wars going on around the world and in our own back yard. In the 2008 movie, the U.S. government sends a woman to represent the president and gives her full authority to act on his behalf. She immediately orders the use of restraints and with the aid of a lie-detector test attempts to extract information from the alien. In another over excessive show of force, she orders all military forces to attack and destroy the alien ship. Klatuu manages to escape through the use of mind control and a lengthy visual display of electrical forces – alien style. In this part of the movie I found the special effects to be less than convincing. Special effects were a very important part of the film remake, so the original story was modified in part to accommodate them. I noticed some of the differences in content are in the language and scenes. The 1951 version had more dialog and placed more emphasis on the meaning and lesson to be learned. Early era movies were more idealistic, with little to no objectionable content or language. They may have implied a situation, but didn’t show anything explicit. The 1951 version had the clean-cut charm of an old â€Å"Leave it to Beaver† episode. The 2008 version had more violence and scenes that were highly graphic in nature. The close-up surgical procedures in this film are not atypical of many of today’s shows and with the use of high density graphics, we get every gory detail. Klatuu, comes to earth in human form in the 1951 movie, along with a robot that was obviously just a tall man in a rubber suit. In the newer movie, with the aid of special effects, he morphs from alien into human form right before our eyes. The robot in the newer movie is several stories high and much more compelling as an enforcer of peace for an entire planet. The acting in the original movie seemed overly dramatized, which was a characteristic that was often used in the earlier films of this genre. Early attempts to simulate believable alien creatures and moving spaceships were crude at best. The first movie comes with a long list of revealing mistakes; wrinkles in metal and zippers in alien attire, while the space ship moving through the sky looked crude at best. The most obvious errors were in the scenes that show the â€Å"crowds running away in panic,† obviously created by speeding up the film. (Janson) In contrast, by 2008 special effects are widely used, portraying realistic action without the overdramatic characterization. Because special effects were not available during the earlier version, actors were much more athletic, usually performing their own stunts. Another industry change that cannot be overlooked is budget. For example, the 1951 movie had an estimated budget of $1,200,000, while the cost of the 2008 movie soared to $80,000,000. This can be attributed in part to the cost of special effects, but we also have to consider that most of the earlier films were usually shorter in length than their modern counterparts. Another consideration for the rising cost in some of today’s movies is found in epic films which have crowd scenes that employ a very large number of actors at union wages. In the final scene of both movies, Klatuu recognizes that the human race is worth saving after witnessing the heartfelt interactions between a woman and her young son. The story ends with Klatuu sacrificing himself to stop the planet’s destruction process and save the human race. This part of the story gives a human quality to the film. In some ways, the old classic movies and today’s movies are the same. They all have a story line and are aimed at a select audience, whether it’s a particular age bracket, ethnicity, social status other special group. Some of the content in movies can also be related to one’s life, such as the relationship between mother and child, fear of the unknown, and the struggles between good and evil or the strong and the weak. Movies often share a common theme about human nature and bring a message home to the audience that is relative to its time. Since the making of silent films to the movies of today, the emphasis has been on entertainment, making it a favorite family pastime throughout the years. It has created a multi-billion dollar industry that serves its creators as well as the public, because it does more than just entertain. It also educates and informs, gives hope, happiness and inspiration, raises awareness in individuals and creates a higher consciousness among people of all origins. As the movie industry gets older and wiser, it gets better at its craft. As it harnesses technology on all levels, we can look forward to future remakes of today’s movies and the possibilities of tomorrow. How to cite The Day the Earth Stood Still – 1951 vs 2008, Essay examples

Trade Infrastructure and Economic Development

Question: Discuss about the Trade Infrastructure and Economic Development. Answer: Introduction: The demand for oil is usually inelastic. Therefore, an increase in the price of oil is good news for the exporters since their revenue will increase significantly. However, the importers will have to carry the burden associated with the hiked prices. The effects arising from an increase in the global oil prices are enormous since oil is the major world traded commodity(Ajakaiye Oyejide 2012, p. 56). The prices of oil indirectly impact costs such as manufacturing, heating, and transportation. As the prices of oil increases, the costs of producing goods in an economy also rises and hence leading to a reduction in the aggregate supply(Boyes Melvin 2012, p. 85). A decline in the aggregate supply will eventually lead to a drop in the Gross Domestic Product. An increase in the oil prices will increase the costs associated with the production of goods and services in an economy. This situation will result in a reduction in the aggregate supply. On the graph one above, a decline in the aggregate supply is shown by the shift of AS curve from SRAS1 to SRAS2. A shift of the curve towards left results in a reduction in the GDP as demonstrated by the movement from Y2 to Y1. Increase in the global oil prices will result in cost-push inflation in the importing nation. The rising cost of production is known to reduce the profit margins of the companies. In an endeavor to maintain their profit margins, the firms will pass over the burden associated with increased production costs to the consumers through higher prices. This scenario will result in cost-push inflation. On the graph one above, this trend is shown by the movement of price level from P1 to P2. A hike in international oil prices overstretches the government revenue. The government has to get more money to cater for increased oil imports. The increase in the cost of undertaking business resulting from higher oil prices can also increase unemployment levels in the economy. With higher unemployment levels, the government will be required to make more stimulus payments and additional unemployment benefits. Moreover, government revenue collected from taxes will decline due to an increase in unemployment rates(Carlin Soskice 2014, p. 65). The budget deficit will widen forcing the government to resort to borrowing to accomplish its operations. As a result, public sector borrowing will increase significantly. An increase in the global oil prices increases the import expenditure depicting that a lot of money is going outside the country. In the event the countrys export gains are declining or stagnant, then enormous trade deficits can occur(Frank Bernanke 2011, p. 64). As the import expenditure increases, the balance of payment deficit will also widen. A Cut in the Personal Rate of Income Tax When a government reduces the personal income tax, the disposable income of the citizens will increase. As a result, the individuals will consume more causing an increase in the aggregate demand(Goodwin 2014, p. 87). On the graph two below, this change is shown by the shift in the AD curve from AD1 to AD2. As the aggregate demand curve shifts, the Gross Domestic Product increases, that is, movement from Y1 to Y2. A cut in the personal rate of income tax will result in demand-pull inflation. An increase in the disposable income means that the individuals have more money to spent on consumption. The demand for products will increase while the supply remains constant and hence an increase in the prices(Hubbard O'Brien 2013, p. 74). On the graph two above, this trend is shown by the movement of prices from P1 to P2. Taxes are primary sources of income for government revenue. Usually, the government taxes its citizen to get funds for running the country and provision of public services(Nils Gottfries; Palgrave Macmillan. 2013, p. 51). Therefore, a cut in personal income tax will mean that the revenue of the government declines significantly. The government will increase the borrowing to fill the gap. Reduced personal income tax leads to higher consumer spending as the disposable income will be high. The government may relax trade barriers to allow more imports to meet the rising demand. This scenario deteriorates the current account and hence an increase in the balance of payment deficit. When the government purchases public and private bonds, there will be more money in the economy. The high amount of money in circulation will increase both investments and consumption resulting in an increase in the aggregate demand. On the graph above, this effect is shown by the shift of AD curve towards the right. The GDP will grow to Y2 nearing the potential GDP. As the aggregate demand shifts towards the right, the prices of services and goods in the economy will also increase, that is, movement from P1 to P2. Therefore, the when the government buys the bonds, there will more money in circulation causing inflation. Public Sector Borrowing The intention of government buying the private and public bonds is to increase money in the economy. Therefore, we anticipate that during this period the government will not borrow and hence a decline in the public borrowing. The purchase of bonds by the government will avail more money in the economy thus increasing consumer consumption. The levels of imports in the country will increase to cater for the rising demand. Since a lot of money will be going outside the country, the trade deficit of the country will worsen. Infrastructure development is a major factor influencing the economic progress of many countries in the world. When the government increases its expenditure on the infrastructure, there will be a favorable environment for conducting businesses. For instance, improved road, air, and railway transport, as well as sufficient supply of affordable electricity lead to drop in the costs of transacting business in the country(Sikdar 2011, p. 45). Improved transport indicates that there will be a smooth movement of goods and services and hence improvement in productivity. On the graph four below, this trend is demonstrated by the shift in the aggregate supply curve rightward from SRAS1 to SRAS2. As the AS curve shifts, there will be an increase in the Gross Domestic Product, that is, movement from Y1 and Y2. Improvement in the infrastructure of the country is known to reduce the cost of doing business. For example, faster and safer movement of raw material to the industries and finished goods to the market minimizes both resources and time used by companies. Moreover, sufficient supply of electricity makes power affordable to the firms. On the graph 4, a reduction in the overall prices of commodities is shown by the movement of price level from P2 to P1. Public Sector Borrowing Constructive infrastructural development requires a significant amount of resources. Roads, electricity, rails, bridges, and airports need massive investments. The government will resort to internal and external borrowing to secure the funds for developing the infrastructure. As a result, an increase in public infrastructure spending will lead to an increase in public sector borrowing. Most prosperous countries in the world have better infrastructure in place to facilitate business operations. Good infrastructure attracts massive foreign direct investments thus boosting employment levels and economic growth and development(Sikdar 2011, p. 57). There will be an expansion in exports and a reduction in imports as most of the goods will be manufactured locally. Therefore, the balance of trade will improve. Economic event GDP Inflation Public sector borrowing Balance of trade An increase in the global oil prices Decrease Increase Increase Deteriorate A cut in the personal rate of income tax Increase Increase Increase Deteriorate An increase in the purchase of public and private bonds by the Central Bank Increase Increase Decrease Deteriorate An increase in public infrastructure spending increase Decrease Increase improve Bibliography Ajakaiye, DOI Oyejide, TA 2012, Trade infrastructure and economic development, Routledge, London ; New York. Boyes, WJ Melvin, M 2012, Macroeconomics, South Western, Mason, OH. Carlin, W Soskice, DW 2014, Macroeconomics: Institutions, Instability, and the Financial System, Oxford University Press, Oxford. Frank, RH Bernanke, BS 2011, Principles of macroeconomics, McGraw-Hill Irwin, New York, N.Y. Goodwin, NR,NJA,HJ 2014, Macroeconomics in context. , M.E. Sharpe, Armonk, New York. Hubbard, RG O'Brien, AP 2013, Macroeconomics, Pearson, Boston ; Montreal. Nils Gottfries; Palgrave Macmillan. 2013, Macroeconomics, Palgrave Macmillan, Basingstoke ; New York. Sikdar, S 2011, Principles of macroeconomics , Oxford University Press, New Delhi.