Logistics H&M Versus Zara

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Examine the websites of 2 large and comparable companies, that operate in the same business area and have to deal with logistics and quality management f.e. UPS and TNT or Philips and Sony or Ford and Toyota . Teams of 4, powerpoint presentations 10 minutes in class in tutorial week 3

1.1 Give a short description of the 2 companies
Goods and services, size, PMC‘s, structure, position in supply chain.

Zara is an innovating clothing company which sells clothes throughout the world. Its first shop opened in Spain in 1975. It belongs to Inditex which is one of the largest distribution groups in the entire world. Zara has clothing, shoes, handbags and furniture. There are over 3.000 Zara stores around the world, 205 Zara Kids stores and 272 Zara Home stores. This means that Zara is larger than the American Gap and Swedish H&M! Zara launches about 12.000 collections each year (1000 each month)! Most other clothing stores try to predict the trends in fashion, because they need 6 months to one year to develop a clothing line. Zara on the other hand, only needs a month to create a new clothing line. Their store managers are continuously monitoring the trends they see on the streets and in their stores and pass on critics from clients to their superiors. This gives Zara the accessibility to a constant flow of new ideas. Above that This means that logistics makes out a crucial part of the Zara company.

H&M is a large Swedish clothing company which operates in 38 countries. It has over 2.200 stores around the world and develops furniture next to clothing, shoes and accessories. The first H&M store was opened in Sweden in 1947, so they have quite some experience. Apart from the numerous stores H&M rents from local landlords, it is also possible to buy clothes at the H&M website or from a catalogue which is send to members regularly. This give H&M great accessibility for (potential) clients. H&M has a new clothing line every few weeks. Just a little under the amount of clothing lines Zara produces. The only difference with H&M is that they need about a year to produce their clothing line, so they also try to ‘predict’ the market, which gives them a disadvantage towards Zara. H&M was the first to shorten the time between production and delivery drastically, which is why they were able to stay ahead of competition. H&M does not own production factories, but outsources their production to companies within Europe and Asia. They work together with over 750 suppliers which are mostly based in Europe and Asia.

1.2 Articulate the vision of these 2 companies, including logistics/quality using the 4 steps of Collins and Porras. Make a comparison of both mission statements.
If the company in question doesn’t have an explicit mission statement, formulate it yourself, making use of the available information and the 4 steps

Mission statement of Zara: Dress the world.
Vision of Zara: Design has to be made available for everyone and has to be payable with a fast response to the demands of the markets.

Mission statement of H&M: The company describes its mission as "Fashion and quality at the best price." Vision of H&M: Taking responsibility for how our operations affect people and the environment is also an essential prerequisite for H&M's continued profitability and growth.

It is very interesting to compare the mission statements of H&M and Zara, because Zara says: Dress the world. This shows that they really are going for the big plans and eventually want to be known and available in the entire world. H&M on the other hand says: Fashion and quality at the best price. That says nothing about the expansion they want to make, but more about the characteristics of the products they want to sell. Of course, expansion is also very important for them, but quality and price apparently more.

1. Core values
2. Core purpose
3. 10-to-30 year BHAG
4. Vivid description

1.3 Which of...
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