Identify decision issue, and your role as a decision maker
Salgado and Sanchez need to decide if it is the right time to update Zara’s information technology. The key concern is the outdated operating system they use for their point of sale (POS) terminals. Should they purchase the current POS machines from their vendors so that they can support their needs in case the vendor changes their machines to new technology? Or should they move to using new operating system for the POS application? The new operating system provides the opportunity for system and process improves that the store and throughout the company.
Why has the decision issue arisen?
Zara’s POS terminals are currently running on the old DOS system which Microsoft no longer supports. Salagado wants to be proactive and make the change to a new operating system in the event that the POS vendor upgrade to new machines that are not DOS compatible.
What is the challenge (problem or opportunity) to be addressed?
Salagado and Sanchez do not want to modernized the stores’ IT and put the company’s robust and successfully infrastructure at risk The currently system is working well without any problems. The men are also concerned that Zara’s expansion atop of an increasingly obsolete operating system can be detrimental to their performance. Since Zara does not own its POS terminals it is possible that the vendor can change to new machines that do not support the old DOS operating system.
Zara Business Model
-link customer demand to manufacturing and manufacturing to distribution.
Speed and Decision Making
Beliefs: Zara needed to be able to respond very quickly to the demands of target customers-customers influenced design—not depend on marketing to push clothes on the customers. Give store managers and other employees ability to make decisions.
Marketing, Merchandising, and Advertising
- Zara did virtually no advertising. Ads announced its... [continues]
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