Sabin Antonio S. Bustamante
Jan. 29, 2013 Zara International Business Problem
Productivity is the best word to describe the approach of merchants during the classical era. Merchants believed that being strong in productivity would bring higher profits. It sounded so simple and unbelievable from the very different and complex businesses today. However, businesses cannot forget the significance of productivity even centuries after it was first thought of. After reading the article about Zara International, I was very amused and impressed. Their business system is just so unique and fast. This is one firm that does not ignore the word “productivity.” It has this complex system of just in time production and inventory reporting that makes itself one of the top contenders in the clothing industry. With the pace of expansion and the number of branches they have worldwide their supply chain is amazing. They can have brand new items in braches around the world in 48 hours. Zara treats time as gold. Everything has to be quick, from the designing of the clothing to the production and to the distribution of the items. It keeps them ahead of their competitors. The macro approach of productivity or its bureaucracy is perfect. In the article it said they farm out much of its garment production to specialist companies, near home in Spain, which it often supplies with its own fabrics. The company has divided its labor to maximize productivity more.
With a network of over 1600 stores worldwide it is very hard for Zara high ranking officials to manage everything. This is why it breaks down its process and gives it to other companies for them to do the work. They have 100 plus textile design, manufacturing and distribution companies that employ more than 80,000 workers. This style is essential to Zara’s growth and success. They trust others in their skills and abilities. It is a modern way of handling a business. Instead of being like a dictator Zara...
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