“A MAN FROM ZARA”
This analysis has been taken in the view of Mr. Pablo Isla, the appointed CEO for Zara.
I. PROBLEM STATEMENT
How can Zara maintain its relentless expansion?
II. STATEMENT OF THE OBJECTIVE
To be able to maintain its relentless expansion due to a change of CEO and adjustment to the new management within two years.
III. AREAS OF CONSIDERATION
• Largest Fashion Empire based in northwest Spain.
• One of the most brutally fast turnaround schedules the industry had ever attempted.
• For nine months, their sales revenue amounted to $High tech and state-of-the-arte Billion.
• Company growth shows no sign of slowing
• Restocking continues at top speed
• CEO Amancio Ortega shuns the trappings of position ad authorities.
• Every idea for Zara was come from their CEO and they cannot proceed unless he says so.
• One of the best world’s largest fashion retailers.
• Very few companies can challenge them at this time.
• Strong competition between UNIQLO.
• One person gives an idea for the whole business firm of ZARA and cannot work onto it without him.
IV. ALTERNATIVE COURSES OF ACTION
1. Termination of the current president and replacement of a new one.
2. Create and implement systematic hiring procedures for HR and standard operating procedures for finance (Cash flow Management, Internal audit and Treasury Management).
3. Increase marketing efforts, review of product pricing and related costs.
Alternative Course of Action No. 1: Termination of the current president and replacement of a new one.
|Advantages |Disadvantages | |Material effect in the decrease of costs. |Challenge on hiring a replacement | |Improvement of business operations |Will entail additional costs and time looking for suitable candidate |
Alternative Course of Action No. 2: Modifications and improvements of overall hiring procedures and standard operating procedures.
|Advantages |Disadvantages | |Reliable internal control system |Resistance to changes | |Effective treasury and accounting processes |Requires time, costs and effort in implementation | |Well defined job descriptions | |
Alternative Course of Action No. 3: Increase marketing efforts, review of product pricing and related costs.
|Advantages |Disadvantages | |Increased revenue |Requires budget for marketing effort | |Affordable and quality products compared to competitors. |Hiring & training for new employees in sales | |Maximum utilization of current resources |...
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