ZARA Final Paper
STRATEGIC MANAGEMENT PAPER
ZARA
Created By:
Anggita Sulisetiasih 1006718706
Kenji Wibawa Junardy 1006718990
Patricia M. A. Adam 1006805694
International Undergraduate Program
Faculty of Economics
University of Indonesia
Depok 2013
TABLE OF CONTENTS
Chapter 1 4
INTRODUCTION 4
1.1. Company Background 4
1.2. Vision and Mission 4
1.3. Long-term Objectives 5
Chapter 2 6
VISION – MISSION ANALYSIS 6
2.1. Importance (Benefits) of Vision and Mission Statements 6
2.2. Characteristic of a Mission Statement 7
2.3. Mission Statement Components 8
2.4. Vision and Mission Relation: Is It Achievable? 10
Chapter 3 11
EXTERNAL ASSESSMENT 11
3.1 Michael Porter’s Five-Forces Model 11
3.2 External Factor Evaluation (EFE) Matrix 13
3.3 Competitive Profile Matrix 15
Chapter 4 19
INTERNAL ASSESSMENT 19
4.1 Resource-Based View Analysis 19
4.2 The Internal Factor Evaluation (IFE) Matrix 22
4.3 Financial Analysis 27
Chapter 5 33
STRATEGIES IN ACTION 33
5.1 The Strategies 33
5.2 Michael Porter’s Five Generic Strategies 34
Chapter 6 36
STRATEGY ANALYSIS AND CHOICE 36
6.1 The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix 36
6.2 The Strategic Position and Action Evaluation (SPACE) Matrix 37
6.3 The Boston Consulting Group (BCG) Matrix 39
6.4 The Internal-External (IE) Matrix 40
6.5 The Grand Strategy Matrix 41
6.6 The Quantitative Strategic Planning Matrix (QSPM) 44
Chapter 7 46
IMPLEMENTING STRATEGIES: MARKETING, FINANCE/ACCOUNTING, R&D, AND MIS ISSUES 46
7.1 Marketing 46
7.2 Finance 49
7.3 Research and Development (R&D) 49
7.4 Management Information System 51
Chapter 8 53
STRATEGY EVALUATION AND GLOBALIZATION CULTURE 53
8.1 The Balanced Scorecard 53
8.2 Globalization Culture 56
Chapter 9 59
CONCLUSION 59
9.1 Zara’s Competitive Advantage 59
9.2 Vision, Mission, and Strategies 60
BIBLIOGRAPHY 62
Chapter 1
INTRODUCTION
1.1. Company Background
Zara is a Spanish brand of clothing founded by the visionary Amancio Ortega Gaona and Rosalia Mera in Artexio,
ZARA
Created By:
Anggita Sulisetiasih 1006718706
Kenji Wibawa Junardy 1006718990
Patricia M. A. Adam 1006805694
International Undergraduate Program
Faculty of Economics
University of Indonesia
Depok 2013
TABLE OF CONTENTS
Chapter 1 4
INTRODUCTION 4
1.1. Company Background 4
1.2. Vision and Mission 4
1.3. Long-term Objectives 5
Chapter 2 6
VISION – MISSION ANALYSIS 6
2.1. Importance (Benefits) of Vision and Mission Statements 6
2.2. Characteristic of a Mission Statement 7
2.3. Mission Statement Components 8
2.4. Vision and Mission Relation: Is It Achievable? 10
Chapter 3 11
EXTERNAL ASSESSMENT 11
3.1 Michael Porter’s Five-Forces Model 11
3.2 External Factor Evaluation (EFE) Matrix 13
3.3 Competitive Profile Matrix 15
Chapter 4 19
INTERNAL ASSESSMENT 19
4.1 Resource-Based View Analysis 19
4.2 The Internal Factor Evaluation (IFE) Matrix 22
4.3 Financial Analysis 27
Chapter 5 33
STRATEGIES IN ACTION 33
5.1 The Strategies 33
5.2 Michael Porter’s Five Generic Strategies 34
Chapter 6 36
STRATEGY ANALYSIS AND CHOICE 36
6.1 The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix 36
6.2 The Strategic Position and Action Evaluation (SPACE) Matrix 37
6.3 The Boston Consulting Group (BCG) Matrix 39
6.4 The Internal-External (IE) Matrix 40
6.5 The Grand Strategy Matrix 41
6.6 The Quantitative Strategic Planning Matrix (QSPM) 44
Chapter 7 46
IMPLEMENTING STRATEGIES: MARKETING, FINANCE/ACCOUNTING, R&D, AND MIS ISSUES 46
7.1 Marketing 46
7.2 Finance 49
7.3 Research and Development (R&D) 49
7.4 Management Information System 51
Chapter 8 53
STRATEGY EVALUATION AND GLOBALIZATION CULTURE 53
8.1 The Balanced Scorecard 53
8.2 Globalization Culture 56
Chapter 9 59
CONCLUSION 59
9.1 Zara’s Competitive Advantage 59
9.2 Vision, Mission, and Strategies 60
BIBLIOGRAPHY 62
Chapter 1
INTRODUCTION
1.1. Company Background
Zara is a Spanish brand of clothing founded by the visionary Amancio Ortega Gaona and Rosalia Mera in Artexio,
Bibliography: David, F. (2013). Strategic Management: Concepts and Cases. New Jersey: Pearson International Edition. Ghemawat, P., & Nueno, J. L. (2012). ZARA: Fast Fashion. Harvard Business Journal , 1-35. Inditex. (2013, September 18). Inditex’s net sales rise 6% to 7.7 billion euros. Retrieved November 28, 2013, from Inditex: http://www.inditex.com/en/press/press_releases/extend/00001019 Inditex. (2013, November 28). Our Team. Retrieved November 28, 2013, from Inditex: http://www.inditex.com/en/who_we_are/our_team Inditex. (2013, November 28). Timeline. Retrieved November 28, 2013, from Inditex: http://www.inditex.com/en/who_we_are/timeline Keller, A. A. (2012, October 26). Zara Strategic Marketing Plan. Retrieved December 1, 2013, from Oeconomicae: http://www.oeconomicae.com/documents/Author/Strategic%20Marketing%20Plan,%20Zara,%20Arteixo,%20Spain.pdf Sandoval, B. (n.d.). Zara: IT for Fast Fashion. Retrieved November 28, 2013, from UHV: http://www2.uhv.edu/luj/MGT6352/Samples/Student%20Sample%203.pdf Wikipedia. (2013, November 19). Fast Fashion. Retrieved November 28, 2013, from Wikipedia: http://en.wikipedia.org/wiki/Fast_fashion