RUNNING HEAD:OPERATIONS MANAGEMENT TOOLS AND TECHNIQUES

Operations Management Tools And Techniques

Operations Management Tools And Techniques

Introduction

The company that is going to be analysing in this essay is Inditex and particularly Zara, its main brand. Inditex Group is a textile company, the most important in the Spanish textile sector and one of the most important multinational and one of the weightiest multinationals in Spain. The most significant of all the brands of the Group is Zara, which was the first to be created. Zara offers trend clothes of average quality at an affordable price to a female audience, teenage, male and child

In 1973 Amancio Ortega Gaona, Inditex Group leader and main shareholder, created a business focused in making getting dressed gowns and underwear. Two years subsequent he opened the first Zara shop in La Coruña. Thead covering was when he begun building the entire holding. During the 70's and the 80's he enclosed by cloth-designers who utilised to journey to the main catwalks in Europe, where they can exact replicate the most initial ideas. The big growth of the company happened in the 90's, when the Group increased the supply with new brands (Kasra Ferdows, Michael A. Lewis and Jose A.D. Machuca, 2005).

Example

Zara operations strategy matrix

Depending on the objectives that business has, it will follow one distinct scheme, whereas it is very widespread to use a blend of distinct schemes to move overseas, and particular ones counting on the homeland the business is going into. Inditex assembly has habitually wanted to have the major control in all its procedures since its main scheme is the wholly belongs to subsidiary equation, whereas in the last few years this principle has altered and some other strategies have been evolved, such as joint projects and franchising. The business model used in this design allows business to respond to customer tastes in record time (just in time). With more than 200 designers, the latest trends are followed in stores, street and the constant travel to international fairs (Martin L. Gosman, Trish Kelly; 2002).

Thus, Zara is able to design, produce and distribute a collection anywhere in the world twice a week in each store. Its collections are small and often are exhausted, creating a sense of exclusivity. This avoids sales prices and urges its customers visiting its stores several times throughout the year. The distribution takes place in own stores, strategically located, which cares the most of the shop windows, interior design, music and the environmental care (Mark Stevenson; 1994).

The success of ZARA's collections lies in the ability to recognize and assimilate the relentless alterations in latest trend, certainly designing new models that reply to clientele desires. ZARA uses its flexible business form to adapt to changes occurring throughout a time of the year, answering to them by conveying new products to the stores in the shortest possible time. All production, regardless of its origin, is received at the logistical centers for each chain, from where it is distributes simultaneously to all the stores ...