MANAGEMENT REPORT

Management Report

[Name of the Institute]

Management Report

Introduction

The following paper discusses about the success factors of Zara that have let Zara to become one of the most successful and fashionable brands in the world. The paper has three parts. In the first part of the paper there is brief description of the organizational, technological and the managerial success factors of Zara that have contributed towards the success and the effectiveness of Zara. On the basis of analysis and findings, recommendations for the owner of Zara as a small and medium sized enterprise, independent retail business that is operating on the high street, which will help Zara about the future direction and their expansion in the business, is discussed briefly. In this part the theories of organizational structure and design, business information system and the entrepreneurial manager is also discussed in detail. In the last part that is conclusion, it covers the summary of the paper and also the recommendations are discussed that will help Zara to expand the success in the business.

Discussion

Organizational analysis

Zara is highly vertical integrated, that keep sits swaths of house its production process in house. Zara has expanded between year 1996 to the year 2000 and in the year 2001 the revenue has grown from 2.43 to 13.6 millions in the year 2007. The product line of Zara is three, children, gents and ladies. Zara support eight brands. (Koh, 2006) Zara is going one of the fastest global expansions worldwide in more than sixty eight countries.

Zara is called as the most innovative and devastating retailer in the world by the director of fashion for the luxury goods. The products of Zara are fashionable but they are less expensive. The evidence for the demand of the customer is followed and preferred by Zara about design. The business strategy of Zara has contributed towards its success because of innovation and modification of fashion instead of the history of Zara because Zara has brought revolution in the industry of fashion designing.

The policy of the production of Zara is to concentrate on the low volume of production of merchandise on the regular basis and along with that it also offers outfits in the limited quantity. It must focuses on the no time and modification of fashion. The apparent style of Zara is preferred to the customers because of the purchase of the products of Zara. The structure of Zara has been organized very carefully. It allows the company in order to follow the strategies of the division for the records and the information. The structure of Zara also allows the business in order to offer the proposals for various divisions and therefore Zara has superiority over its competitors. It has become impossible for its competitors to replicate or duplicate Zara. The structure of Zara is fixated on a quick response and this strategy of Zara allows the company to become a cost leader, also the quick responses of Zara cannot be imitated by its ...