Zara Fashion Case Study

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Outline:

1.        Organizational Chart

2.        Main units of the company

3.        Main parts Of the Company

4.          Coordination Mechanisms

5.          Flow of tasks

6.         Different Job Positions in ZARA (hasta aquí la PDL 4)

7.        Functions of each job position.

8.        Degree of vertical and horizontal job specialization.

9.        Degree of job formalization.

10.        Degree of training qualification and indoctrination of each job position.

1.Organizational Chart

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2.Main units of the company

Production Department:

• Most of the products Zara sells are manufactured in proximity countries like Spain, Portugal, Turkey and Morocco. While some competitors outsource all production to Asia, Zara manufactures its items at dozen of companies from Spain, Portugal and Turkey, particularly in Galicia and northerm Portugal. Some basic products are outsourced to low-cost suppliers which are located mainly in Asia.

• Centralized Design & Production Centre (main centers of production in Spain, Portugal and Turkey).
• Constant flow of data throughout the supply chain (everybody knows when and how they have to work)- Standarization of Process.
• Zara change it production and design according to the new fashionable trends looking at their ,main consumers.(single-shift mentality)

Manufacturing Process

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Marketing Department:

• ZARA uses a Segmentation Strategy (sex, age and style)
• ZARA uses a competitive advantage called ˝FAST FASHION˝
• Low prices and low production costs.
• High international presence.
• Pricing was market-based.(ZARA fixes prices according to the competitors prices)
• ZARA analyzes the purchases of every client in order to respond to the desires of the demand.
• ZARA imitates the latest trends in a short two-week period time.
• ZARA uses a policy of zero advertising, this decreases the production costs, instead, the company prefers to invest the money in opening new stores.
• Zaras marketing strategy is very effective because of its

-Affordable prices

-Unique response to market demands.

Finantial Department:

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Human Resources:

• The main objective of the Group is to offer products of the highest quality to all its customers.
• All ZARA’s operations are performed under an ethical and responsible perspective.
• All processes are inspired by the Code of Conduct and Responsible Practices and they are specified in the health, product safety and environmental sustainability protocol. They form the strategic focus called ‘’Right to Wear’’.

3.Main Parts of the company

• Zara operates with a lean organizational structure, which emphasizes high performance. This organizational structure also works to reduces the number of managerial hierarchy levels and decentralize decision-making.
• Zara is also a vertically integrated company (company that has control over several or all of the production and distribution steps involved in the creation of their product).

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4.Coordination Mechanisms

• Production Department:

According to the coordination mechanism we can identify this department with ‘’Standardization of outputs’’ because the different outputs of this department have to look the same.

Each employee of the production department will know what to do without the need of direct supervision.