Zara Case

Question 1

Frederick W. Taylor’s first principle, motion study is the science of reducing a job or task to its basic physical motions. It was clearly apparent in Zara International’s case. Inditex Group, the parent company, shortens the time from order to arrival by a complex system of just‐in‐time production and inventory reporting that always keeps Zara ahead of the competition. It’s only possible for a well-trained set of employees who have the abilities for their jobs. As a result, Zara distribution centers have items in American and Asian stores within 48 hours and in European stores within 24 hours of receiving an order.

Administrative principles of classical approaches of Henri Fayol were also seen in case of Zara’s working strategy. The leaders generated a single plan to ‘go fast’, which turned into proper action. This resulted in $10 billion sales due to teamwork as well as the initiative to work with enthusiasm and energy.

It can be concluded that Fayol’s five rules of management, which give impression of four functions of management are more or less visible in Zara’s case. Planning is seen as a forethought plan for the future to ‘go fast’. Organizing is seen as the ability to provide and mobilize resources like product distribution twice weekly to stores worldwide. Leading is the execution of just-in-time production and inventory reporting and distribution. Controlling is vertically joined as many points in the supply chain as possible optimize design, production, distribution and sales.

Question 2

There are shops in 77 countries around the world. Zara is well-known in the operations management field. They represent what is called Fast-Fashion. Zara can move an item from design to the shelves in four to six weeks while traditional retailers can take six or nine months. This type of speed allows Zara to introduce more products