The History Of The Business Zara Commerce Essay

The History Of The Business Zara Commerce Essay The company selected for this assignment is Zara. A very brief history of Zara will be given. Then description of the companys operations and its advantages and shortcoming will be discussed. Then suggestions for innovation in its current information technology and operations will be given along with cost and risk analysis and possible ways to reduce the risks, followed by final conclusion. History: Zara is the most successful brand of Spanish company Grupo Inditex. Its owner, Amancio Ortega, opened first retail store in 1975 in La Coruna, a small port in Spain. Zara became the worlds largest fashion retailer by 2008 end. By this time it had stores in over 70 countries, out performing its rivals like Gap of USA and Sweden based HM (Hennes Maurits) (http://www.guardian.co.uk/business/2008/aug/12/retail.spain). Zaras Innovative Operations: Daniel Piette, director of fashion, LVMH described Zara as possibly the most devastating and innovating retailer in the world http://tbmdb.blogspot.com/2009/12/business-model-example-zara-devastating.html, owing to the companys innovative and unique approach in fashion retail: Zara has a vertically integrated supply chain, controlling most of the design phase, production phase and distribution system, down to its chain of retail outlets around the world. Some part of the manufacturing process is handled by Zaras sister concerns with nearby locations. Unlike its competitors Zara does not outsource its production to Asian developing countries. Proximity of production and distribution units provides more flexibility so that the company can meet the ever-changing demands of the consumers more efficiently than its competitors. Zara has integrated the system of POS (Point Of Sales) that helps in monitoring what designs are bringing in maximum sales at the retail shops. Store managers are allowed freedom to decide which designs to display and which ones to return, depending on the sales of those designs. Store employees gather feedbacks from the customers and convey the information to headquarters via PDAs. Design teams immediately respond to these feedbacks and begin designing new clothes accordingly. The clothes are manufactured and distributed to the retail stores within a short period of 2 to 4 weeks owing to the vertical integration of its supply chain. While its rivals are busy finding what the latest trends might be and eventually delivering new designs in 4 to 9 months, Zara manages to design, manufacture and distribute new designs in just 30 days. Zara only produces small quantities of each style so that there is continuous demand of popular designs, cutting down on manufacturing costs as well. Thus Zara delivers around 12000 different styles in a year whereas its competitors can produce only 4000-5000 per year. Hence, the company-coined phrase, fast fashion http://www.3isite.com/articles/ImagesFashion_Zara_Part_I.pdf Current Technology in Information Communication Zara spends only 0.5% of its revenue on information technology compared to expenditure of 2% by its competitors. An order form is transmitted to each managers PDA asking for information such as availability of garments and patterns of garment sales. The managers divide this order form into sections that are transmitted to the PDAs of each employee to fill up, based on customers feedback and the kind of designs sold. Employees transmit back their respective completed sections to the managers PDAs. The manager is given total authority to determine which sections are to be retained in the order form. The edited order form is sent back to headquarters where the designing teams start designing according to the requirements. This strategy helps in managing the inventories efficiently and forms a fast link between demand and supply, justifying the doctrine of fast fashion. Summing up Zaras use of technology http://leoborjblog.wordpress.com/2009/08/10/zara-it-for-fast-fashion/: Gather customer requirements PDAs Logistics and transmission of order form POS terminals and modems. Quickly designing new style CAD (Computer Aided Design) Advantages of such an Innovative System Vertical integration of supply chain and short turn-around time lead to high turnover of product. Quick and efficient distribution helps to eliminate warehouse requirement, saving on additional storage costs. Searching the market for latest fashion trends and responding quickly to the consumer requirements with the help of hand-held PDAs. Complete autonomy and flexibility to the employees and managers who are in direct contact with the customers. POS terminals run on DOS operating system, which is cheap and easy to maintain and operate. Zaras operations are quite innovative and effective, but there is still scope for further improvements in its IT operations and inventory management. Perceived limitations of this System http://www.slideshare.net/koffman/zara-case-study-2780928 Zara has have been using DOS as its main operating system in all the processes. It is an outdated operating system. As the POS vendor supplies DOS OS to zara only, it can always stop its supply, while continue to supply other operating systems to its other customers. Store managers are the decision makers. Zara headquarter relies solely on the experience and intuition of the managers. Instead of looking after customers, managers and employees have the time-consuming task of manually entering the garment details in small PDAs. This could result in the employees failing to assist some customers in choosing and might miss out on few garment sales. Inventory is maintained manually as well. Information transmitted is one way only. Managers have no knowledge of the inventories at headquarters and the stores distribution centre. Consequently managers cannot promise a customer if a particular garment that has been sold out, can be replenished and in how many days. Promises made to customers not kept can damage Zaras reputation, so the managers need to know about the garments inventories at headquarters and the distribution centres. There is a great demand for Zaras garments even though new designs are available twice a week. Zara may consider increase in production to meet these ever growing demands. Gathering of information therefore may need to be upgraded in terms of frequency. Its competitors can change to a better OS or software package and increase their turn around time, neutralizing Zaras edge of fast fashion over them. New IT Technology for Sustainability http://www.123helpme.com/view.asp?id=97642; http://www.slideshare.net/koffman/zara-case-study-2780928 Benefits: New technology may not help Zara in increasing the competitive edge over its competitors but will help in sustaining that edge. A new operating system will help in installing software packages that will help in efficiently maintaining inventory at the stores as well as headquarters and distribution centers. Upgrading to new OS will remove the companys dependency on its current supplier of DOS. Using more than one IT supplier will increase Zaras bargaining power. A Network can be set up between HQ, production centers and retail stores. POS system can be automated so that each sale will automatically update the POS devices. If the POS system of all stores can be interlinked all the store managers can easily know the inventory online and can make and keep their promises to customers demanding a particular garment. POS automation will help reduce overall workload of the employees and managers, as they will not have to manually enter every detail required in the order form. No more large data inputs in small PDAs. Dedicated POS software will ensure that orders will now be made on the basis of theoretical inventories and will be more accurate. Orders can be now placed continually increasing the frequency from twice a week to daily. Ideal software to be used for integration would be ERP (Enterprise Resource Planning). Linking all the process in the supply chain, from HQ, design centers to retail stores, will not only help the managers in accessing inventories but will also help HQ to regulate the supplies more accurately according to the orders placed. Production will become even leaner than before. ECQ (Economic Order Quantity) can help in determining optimal quantities of different garments that customers can order so that the store has sufficient stock, while cutting down inventory cost. Knowing reorder levels will streamline managing of the inventory and help in maintaining the autonomy of the managers. Managers can determine from the reorder levels whether a particular garment needs to be ordered before it will go out of stock and can transmit the same to the production centers that are now linked to the retail outlets. Of course manual checks will still be needed occasionally to check a stores real time inventory is same as the theoretical inventory in case of exceptions like garments getting stolen or gone missing. Designers at HQ will not depend entirely on the managers intuition and can observe themselves sales of new designs due to two-way system integration by ERP. Just in case a store does run out of stock on a particular garment, the manager can easily check the inventories of local nearby stores for availability and suggest the customer to go there. Inter-store connectivity will have added advantage of shipping garments to another store that has more demand of a particular garment. This will further increase the speed-to-market. Besides HQ even managers of different stores will benefit if they know through network what is selling at other stores and what is not. Cost Analysis: Zara will have to upgrade to better OS that will support ERP like Linux, Unix or Windows NT. Implementation cost of Linux is lowest of the three OS. But recurring costs like service-contract is much higher (McAfee et al) http://www.123helpme.com/view.asp?id=97642. Annual cost of using Unix is the lowest and if functionality remains more or less same, Unix will be best suited. If other costs like plans for systems failure are not taken into consideration then implementation cost will be relatively much lower than prospective ROI (Return On Investment). Risk Analysis: Changing software and operating system in all retail shops world over is not an easy task. Due to location of Zaras retail outlets all over the world, there will be many extra tangible costs. Cost of replacing current POS system with the new one. Cost of installation of new cables in each store and maybe new infrastructure to support the cables. Cost of external IT support, hiring professional consultants. Cost of internal IT management and technical training of personnel. Time period needed to train the personnel till outside assistance is no longer required, cannot be accurately predicted. This is because levels of training and learning will be different at different locations around the world. Knowing other stores inventory may have a drawback. If two stores in the same general area have a demand of same design and employees of one store get to know that only the other store has received the garments due to shortage of supplies, it may lead to a political situation. Risk Reduction: Zara should ensure that managers of different stores, particularly in the same area or district should have good rapport and understanding with each other so that they can ask for and receive garments in the rare but probable case of shortage of supply. Both current and new systems should operate together till the personnel of each store can run the new system smoothly; this will not interrupt any service provided to customers. Zara has a huge pilot outlet that is around 1,500 square meters. Zara can use this as training facility for its personnel from all over the world. Zara can use it to test the new system as well. Zara can hire experienced software professionals and open an in-house department for software management and development. Zara can outsource the management and development to experienced software companies. However Zara will have to trade-off between highly efficient and expensive companies. Zara should form scenarios and identify the possible outcomes. This will provide a deeper understanding of its implementation strategy. Option analysis Zara can consider different options like expand options if the current scenario is favorable or defer options if not favorable. The company can also consider stage options where it can invest in predefined stages of the implementation process. This way it will have the flexibility of abandoning the new project at any stage and reverting to the old DOS system, if any major problem occurs. Implementation staging can be done by first testing the new system at Zara HQ. If successful, further testing can be done in a single district having more than one retail outlet. This process will continue by successively increasing the testing area from one district to number of districts, whole of Spain and finally Europe, if implementation at each stage is successful. Zara should develop a contingency plan and an exit plan as well in case the company cannot continue with the up-gradation, or has to abandon the new system for some reason. Efficient data backup is required in case the new system crashes due to mishandling by inexperienced staff etc. Conclusion By and large, continually increasing the frequency of information within the supply chain will help Zara to meet demand and supply requirements more efficiently and effectively. This efficiency will reflect at the stores and production and distribution centres as well, increasing the speed of delivery and further fulfilling almost every single customers individual tastes and requirements. Consequently it will provide a more firm control over operations and perhaps a more proactive working environment. Assimilating all the data at different stores and supply chain process units, into a single system will facilitate sharing of returns, ordering and sales information. This will result in more accurate stocks measurements and real-time measurements. New innovation in the companys information technology can have some other benefits as well. The ERP system will in a way connect the employees of a store to those at other stores around the world bringing forth a new feeling of integrity. Working on new and advanced applications may well lead to employee satisfaction and a feeling of pride. This can produce a highly motivated and efficient work force. Sustainability is a critical factor in any companys expansion plans, especially in a global company like Zara. Therefore Zara should continually acclimatize its business competencies of product development, promotion, communication and information technology according to its global expansion operations. However it should be noted that Zara has been operating successfully for more than three decades with a decentralized, autonomous (for stores) and informal working culture. Care should be taken in not enforcing too many standardized and regimental tasks. It can easily disrupt the creativity and working relationship of its task force. Innovation and incorporating new technology should not radically change a successful businesss operations, rather it should be used to facilitate it or grease the wheels.

Governor General in Canada

Overview My research paper will discuss the proposal of institutional reform concerning the function of Governor General. Canada is a constitutional monarchy and the role of the Governor General is to represent Canada as a whole in replace of the Crown or the Queen. Since Canada has no longer any real ties with the British Sovereignty in terms of government rules many would argue if the role of the Governor General has any significance to being an important political actor in Canada’s Constitution.To begin this paper, I will discuss a brief overview on what the role of a Governor General is, their formal powers and executive powers, dignified and efficient. My research paper will then emphasize on an institutional reform in regards to the function of the Governor General, it will discuss why Canada does not need a representation of the Crown any longer since the Governor General’s actions are mainly symbolic, therefore meaning that the new reform would have no Governor General appointed royally but instead an elected officer.The next argument in the development of the research will discuss the arguments against this institutional reform and why the Governor General’s role is still significant in Canada and why this political actor should still be a part of the Canadian Constitution, since in fact it is part of Canadian history and politics. And then lastly on the development is what my personal opinion is on the matter of having an institution reform or not and then finally finishing off with the conclusion of my paper. Bibliography 1. Desserud, Donald (2006). The Confidence Convention under the Canadian Parliamentary System.Ottawa, Ontario: Canadian Study of Parliament Group. This article discusses one of the efficient powers of the governor general, dissolving of parliament. The governor general takes advice from the prime minister, when the prime minister might be in a situation where the House of Commons throws a non-confidence vote, an d through some motivation behind it the prime minister would then ask permission of the Governor General, who has the power to dissolve parliament, especially when there is a minority government and this book will discuss a few examples of it.This source is useful because it can help us understand why the Governor General’s role shares relevance. 2. Hicks, B. (2009). Guiding the Governor General's Prerogatives: Constitutional Convention Versus an Apolitical Decision Rule. Constitutional Forum, 18(2), 55-67. This article talks about the conventional powers the Governor General has and how it has always been around and a part of Canadian politics.Some scholars disagree with these constitutional conventions and how it should be more democratic, such as an elected official who understands more about the politics of Canada and not just representing the country. This article can be favourable to the argument of having an institutional reform. 3. Hicks, B. M. (2010). The Crown's â⠂¬Å"Democratic† Reserve Powers. Journal Of Canadian Studies, 44(2), 5-31. This journal is about Canada’s responsible government and how the powers of the Governor General can be somewhat misused because of Parliament keeping limits on some powers.Since Canada has been free from British Sovereignty, the Governor General holds more importance in guiding the prime minister but then again since the Governor General’s powers are more dignified rather than efficient, he or she is advised by the prime minister and sometimes these decisions go in favour for the prime minister and this may not always be fair. This journal can go in favour of the argument to have an institutional reform, because the powers of the Governor General may only be helping out the prime minister and may not be so democratic. 4. Messamore, B. J. (2005). The line over which he must not pass': Defining the Office of Governor General, 1878. Canadian Historical Review, 86(3), 453-483. This press revie w goes back all the way to the 19th century, when the formation of the Canadian Constitution first began; it talks about the British Sovereignty’s representation that which is the Governor General. This reference can be helpful to this research paper because it gives the history of the Governor General and how this role of a political actor first started which can be relevant in the introduction of the paper and can give an overview of this significant actor. . Smith, David (1995). The Invisible Crown: The First Principle of Canadian Government. Toronto, Ontario: University of Toronto Press. This book discusses how the Crown, the Governor General, has contributed a great amount to Canada and its parliamentary government. This book talks about the significance of the Governor General and how its functions have changed Canadian politics for the better in terms of social, geographic and economic conditions. This reference will be useful towards the research paper when he argumen t is opposed to an institutional reform. 6. W. , D. D. (2009). Jean, Michaelle. Current Biography, 70(6), 36-42. This biography is about Michaelle Jean, Canada’s current Governor General. This reference can be useful for the research paper because it can give a certain insight on the life of a Governor General, their accomplishments and what gives them the factor of becoming a Governor General which is a pretty important role in Canada’s Constitution.This biography can favour the argument of not having an institutional reform because it can give a better understanding that not just anyone can become Governor General and that they can represent and shape Canada as a country for the better. 7. Wheeldon, J. (2011). Actors, Targets, and Guardians: Using Routine Activities Theory to Explore the 2008 Decision to Prorogue Parliament In Canada. Canadian Journal of Sociology, 36(1), 59-93.This article discusses the 2008 prorogation request by Stephen Harper to Michaelle Jean wh ich was highly criticized by many who thought she should have not accepted the request. This article holds significance because it can show how the Governor General’s role may not be as significant because their role may not be helpful to the government an may be more in favour to the prime minister but not towards the good of the Canadian parliament and therefore to the good of the Canadian citizens. Function of Governor General: The Idea of an Institutional Reform Priya Patel 6587402

Supply Chain Management Case Studies - 2082 Words

MSYS111-12B Possible Test Questions Sessions 1-9 * What is a supply chain? The interconnected businesses that convert raw materials into consumer products via the transfer of materials, information and cash. * Draw a hypothetical milk supply chain * What is supply chain management? The management of upstream and downstream suppliers working together to create high value products for consumers as efficiently as possible to the benefit of the whole supply chain. It operates on three different levels, Strategic, Tactical an Operational. At a strategic level, the decisions are made regarding long term objectives, company direction and distribution of resources, at a tactical level this revolves around functional decisions,†¦show more content†¦* How is SCM like an orchestra LIKE practice makes perfect | timing is critical | goal for the common good, | everyone has expertise | Interdependent | audience only hears the end product UNLIKE co-location, SC is dispersed | Orch delivers output at same time | Orch has 1 clear leader setting tempo emergent property: music * Is it worth integrating supply chains? There are three levels of integration: Operational - streamlining day-to-day functions of SC processes including efficiency of inventory management and synchronised materials flow; Tactical, collaborative planning and forecasting and some levels of integrated software systems; and Strategic, a completely transparent SC where Ramp;D, investment and mission alignment might be undertaken, they may even co-locate, this is a long term partnership based on shared risks and rewards. Integration creates value and experts agree all businesses can benefit from operational integration. The degree of Tactical or Strategic integration depends on several factors; The higher the level of integration, the more trust is required between businesses. There are commercial risks to consider including the sharing of intellectual property and erosion of commercial advantage. * How much supply chain integration is enough? As a high degree of risk is involved in Strategic integration, many companies choose to integrate at a tactical or operational level. Although the higher levelsShow MoreRelatedSupply Chain Management : Case Study869 Words   |  4 PagesMicroeconomics 25 March 2015 Supply Chain Management Tom Greening once said, All management begins with planning† (Tom Greening). Those who study and research supply chain management will agree that the aforementioned quote holds true in their field. Companies looking to reduce their costs and better their customer service often look to implement supply chain management. In order to effectively execute successful supply chain management one must acknowledge the importance of demand management, communicationRead MoreCase Study : Supply Chain Management1182 Words   |  5 PagesSupply chain management is currently an important aspect in Management Information System. So much technology and brainpower have been used to improve the performance. 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Analysis Of Deborah Tannen s Queer - 1204 Words

Martha Irvine, a graduate of the University of Michigan published an article titled Queer Evolution which talked about how the word â€Å"Queer† itself has evolved into the mainstream. Originally the word’s definition was to describe something as odd or weird. Society utilized the word â€Å"Queer† as an insult to the LGBTQ community. As more sexual orientations are being discovered, â€Å"Queer† became a more accepted word in the gay community in order to make things simpler. Irvine’s essay showed that whatever word we use, can affect a person depending on the intention, and the tone of how it’s being said. Irvine’s essay is very similar to Deborah Tannen’s essay You’re Wearing That which talks about the relationship between mother and daughter and how words have established expectations for women based on their appearance and behavior. Another essay that well connects with Tannen and Irvine’s articles is a sectio n from a book written by Michael Kimmel titled Bros Before Hos’’: The Guy Code. Kimmel talks about â€Å"The Guy Code†, rules that a man should always follow in order to be considered a real man. Words are the reason why these standards have been established for all genders and sexualities. The relationships between parents and children would be better if words were replaced, which would abolish the expectations that society has for men and women. Many decades ago, The LGBTQ community were seen as the worst of society, they were labeled as the lowest of the low, something nobody