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OPER1027: Operations Mngt: Proc/Value Ch
Case Study 1
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5.2 Detailed description of assessment
Case study 1–Capacity Planning
Read the case study regarding capacity planning that is available on Moodle. Your answers should refer to: Relevant concepts and theories regarding the role of capacity planning in organizations and demonstrate your ability to utilize relevant information from the case.
Case Study 1 – Capacity Planning (1,250 words, due date: 25/11/2013)
Identify the key characteristics of fast fashion and discuss how these affect company approaches to capacity planning. How do fast fashion companies ensure that they can meet their demand? How does this approach contribute to Zara’s success?
Over the past few years the fashion industry has changed rapidly with every New Year came newer fashion. Competition has been fiercer than ever in terms of costs, quality, dependability and innovation. In this case study you’ll find a clear discussion and logical explanation about Zara’s day to day operations, why and how have they become as successful as they are today. What makes them different from other companies and how they meet there and their customers demands in such a demanding and competitive industry.
Zara is a Spanish owned fashion label and fashion chain stores established in 1975 by the group known as Inditex owned by Amancio Ortega, it sells up to the minute fashion products in men women and kids wear at affordable prices in stores that are clearly focused on one particular market.
What is Fast Fashion?
Fast fashion is a contemporary term used to affiliate with clothing that is based on most recent fashion trends. It is also a way of saying that designs move from catwalk quickly in order to capture current fashion trends. It emerges in the context of that the fashion cycle is moving faster than ever before and at least 10 times faster than it has been 10 years ago.
Identify the key characteristics of fast fashion and discuss how these affect company approaches to capacity planning? +
How does this approach contribute to Zara’s success?
How do all these factors contribute Zara’s success is the main question. Firstly Zara have taken speed and responsiveness into account they have changed the way they operate in there industry where designing, distribution and delivery requires no longer than six months. This proves that Zara can get the latest trends into their store within 6 weeks, which exceeds the capabilities of its competitors as H&M and Benetton and many other fashion companies take longer. This capability allows Zara to achieve their strategy of expedited response to consumer demand and keep up with the latest fashion. The advantage of this process is the quicker Zara can get a new design into their store the higher they will sell the product depending on the demand which will lead to more supply initially allowing company to boost profits and recognitions of their demanding products.
Zara’s unique characteristics are very accurate. Instead of them predicting the demand Zara observes the trend and identifies what is selling, for example there designers continuously track customer’s...
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Fisher, M., Hammond, J., Obermeyer, W. and Raman, A. 2008. Making Supply Meet Demand in an Uncertain World. [e-book] America: pp. 22-67. http://www.log.wi.tum.de/fileadmin/w00bkn/www/GlobalSCS2012/Fisher_-_Obermeyer_HBR.pdf [Accessed: 25 Nov 2013].
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Netessine, K. 2013. Business Model Innovation is the Gift that Keeps on Giving. [online] Available at: http://blogs.hbr.org/2012/12/the-gift-that-keeps-giving-bus/ [Accessed: 25 Nov 2013].
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