Zara Fast Fashion: Case Study

Zara Fast Fashion: Case Study Describe how Zara uses technology to improve operational responsiveness to customer expectations, and at the same time to reduce costs in certain areas. Zaras main strategy is to give a quick answer to end consumer demands and anticipate consumer trends through information technology and human resources. It operates on the basis of heavy backward vertical integration, working its way from the end consumer all the way back to the manufacturing and distribution. It ensures a very tight control of production through simple and effective IT systems as well as a high tech distribution center (DC.) It realizes cost optimization on its basic items for production and also time optimization in terms of speed to market of its fashion items making use of technology. Zara adapted to trends and differences across markets by interacting regularly with the store managers using the PDA and phone systems to get updates on customer feedback, fashion sense etc. The Point of Sale system (POS) in the store computers also provided valuable sales data to the distribution center which had a mobile tracking system that docked hanging garments in appropriate bar coded areas. The various garments were given Stock Keeping Units (SKUs) and orders were placed from the hand-held computers in the stores twice a week or more, to the distribution center where if particular items were in short supply, allocation decisions were made on the basis of historical sales levels and other considerations. After the orders were approved, the warehouse issued lists for delivery to the stores. Zara design teams tracked customer preferences and used sales information such as sales analysis, store trends and product life cycle information from the store managers, based on a consumption information system to transmit repeat orders and new designs to internal/external suppliers and the DC. The design teams thereby bridged merchandising and the backend of the production process and they developed the right products within the season to meet consumer demands. Zaras product development teams attended high fashion fares and exhibitions to translate the latest seaso nal trends into the designs. Hence, a super fast rate of operational responsiveness to customers was maintained and the DC was more of a place to merchandise than merely for storage. Technology also helped keep Zaras costs under control. By using the POS systems in store computers, handheld PDA devices for store managers and phone systems, accurate information regarding orders required were transmitted to the DC. The SKUs ensured accuracy in terms of which products needed to be produced and in what quantities and the DCs could use all this information and feedback from the design teams to make orders of the right quantity of each kind of product. Thus, inventory costs were very low, runs were limited and production costs were maintained at very manageable levels in spite of the large number of new items that are continuously produced. Zaras factories were also heavily automated, specialized by garment type and focused on the capital intensive parts of the production process, like pattern design and cutting as well as final finishing and inspection. A Just-in-time system was installed in collaboration with Toyota in these factories and this helped in faster comple tion of work and controlling of costs through continuous improvement processes. Management Information System technology plays a crucial role in Zaras customer responsiveness and cost control measures. From what you see in the case, does Zara price to market or on the basis of other factors? Zara always followed a market based pricing method. In each country, Zara always placed more focus on the market prices (local pricing levels) rather than on its own costs to forecast prices of items in particular markets. These forecasts were later overlaid on cost estimates that included all considerations such as distance, tariffs, and taxes and so on to see whether the potential market could achieve profitability in a year or two of opening the first store. Zara followed a different pricing strategy in each country, for example, in Italy and Paris the focus was more quality oriented and so the price of the same items were much higher, however, in Germany where consumers are price sensitive the items were lesser priced. This figured in the different marketing strategy followed in each country. Zara controlled its costs through its production and distribution processes and was positioned in many countries as high fashion at affordable prices which though were centrally determined, much lower than competitor prices for comparable products in its major markets. Percentage margins still held up, this was possible because of the direct efficiencies of short, vertically integrated supply chain, reduced advertising costs, and markdown requirements. Thus Zara competed at reasonable prices through a cost leadership strategy, completing Porters generic strategy through differentiated products and broad segmentation. Zaras customers in many countries bore the extra costs of supplying the items from Spain though the prices were market based, for example, prices were 40% higher in Northern Europe and 70% higher in the Americas than in Spain. This could be seen on the garments price tag which was an atlas to the customers. These higher prices outside Spain affected Zaras positioning overseas as high end instead of mid market range products to better validate the price differences. Like in Mexico where the target consumer base is narrow, it is geared towards the upper and middle class that knows fashion. Moreover, as in Europe, the artificial scarcity that Zara creates of its products in its stores urge the customers to pay the price and buy rather than wait it out. Markdowns are very low for Zara in Europe and elsewhere, 15-20% of its sales as compared to 30-40% for its European peers. Zara does not completely compete on basis of price as the usual Zara customer is not that price sensitive; instead, it competes on fashion and its quick response capability. Zara (2010) has just launched an on-line, e-retail distribution service. For an apparel retailer what are the advantages and disadvantages of online distribution? Can Zara make it work? Inditex has long used the internet to promote its various lines and corporate image and is also popular on Facebook, where it has 4.5m fans. Its Smartphone application, launched about a year ago, has been downloaded by 2m people. Zara can very easily make its online e-retail distribution service work successfully. Familiarity with the Zara stores thus provides name recognition for the online retail site, and the combination of customer data gathered by the store and the online retail site (through Google Analytics, for example) could lead to substantial personalized marketing efforts, using various channels. With Zaras policy of a lean advertising budget, an online retail portal will add greatly in terms of branding and awareness. Zara had initially decided not to sell clothes on the internet since the returns rates were too high. However, as of September 2010, Inditex put Zara branded products online for its customers, waiting for online demand to build. Customers can choose from the usual range of paying methods and opt either for a free store pick-up or paid-for postal delivery. The online return and exchange policy is identical to the store system, with shoppers given 30 days to change their minds. iPhone and iPad applications that allowed purchasing will soon be available and online sales will help Zara reach potential customers who have no easy access to physical stores. For an apparel retailer, the advantages of online distribution would be providing convenience to the shoppers to buy from the comfort of their home, save on travel time and costs and have easy access to the products. Customers will have 24 hour access to the shopping platform online and make better buying decisions through online chat and discussion. Researchers identify convenience as a fundamental objective related to online shopping (Schaupp Belanger, 2005). This is relevant to 72% of online shoppers claim that they would rather surf online than go to retail store to attain information about a product (Lokken et al., 2003). Costs on human resources (Vendors, shop assistants, managers) can be saved by the retailer and customers can make relaxed wise buy decisions without pressure from vendors. Infinite shelf space will be available in that, products available at all store locations and around the world without geographical boundaries, to the customers to choose from. Comparison sh opping in terms of styles and prices will be easier on the online portal than in the store for the consumer. Boston Consulting Group analysts Evans and Wurster theorize that the three main strategic draws of online retail are reach, affiliation and richness. Reach is defined as access and connection: how many customers a business can access and how many products it can offer. Moreover, a retailers range of product offerings was traditionally limited by the size of its stores and the cost of carrying inventory while online retailers as intermediaries between customers and suppliers need not necessarily have an inventory at all, only a catalog, often transparent to the customer. Affiliation refers to whose interests are represented by the online retailer who can treat the products from their various vendors more objectively, providing more objective information and better product comparisons for their customers. Richness refers to the depth and detail of information, about products and about customers. Evans and Wurster argue that traditional retailers still are at an advantage to supply expe rt information about products to their customers, and that they also are still in a better position to gather information about product sales and customer profiles and buying patterns. Online retailers are quickly catching up, however, gathering data about customer browsing behavior, purchasing history, and demographics. Online retailers are subsequently able to use this data to provide their customers with a fully customized online shopping environment, including individualized web pages, targeted ads and offers, and specific product suggestions, something traditional retailers cannot effectively do at their retail outlets. Some of the disadvantages of online retail would be the difficulty to gather trend information, product sales and customer suggestions. Zara could remedy this by using analytics and customer feedback forms online that are user friendly and attractive. The experience of shopping in a Zara store would be lost, but Zara would need to make its retail platform very interactive and spellbinding. Zaras prime store locations cost a lot of investment, and the advent of online shopping could mean cannibalization of its retail outlet sales and a waste of upkeep costs, this could put Zara into a fix. Customers will not be able to touch and try the product like they can in an actual store, [t]he likelihood of purchasing on the Internet decreases with increases in product risk (Bhatnagar, Misra, Rao, 20000, p. 100). Apparels in particular had negative rating in online shopping because of it is difficult to feel and see the texture of colour online that is incomparable to going to a retail store. The biggest drawback itself would be the concept of infinite shelf space that an online distribution will bring, for Zara. Being a company that thrives on the creation of artificial scarcity of its products, the online distribution channel will have to be very carefully controlled to ensure that customers buy the products with the same fervour as when they visit the store, knowing that it might not be available the following week. Zara can remedy this situation by advertising only a limited number of units of each product online so customers will know if the numbers are dwindling and that they need to act fast in order to acquire the product just as in the case of the actual store.

Online Examination System Essay

The purpose of on-line test simulator is to take online test in an efficient manner for various branches/semesters/courses at the same time and no time wasting for checking the paper. The main objective of on-line test simulator is to efficiently evaluate the candidate thoroughly through a fully automated system that not only saves lot of time but also gives fast results. It is targeted at removing all the paper work in the examination process. The system is designed by keeping future in mind so that it can be used in any educational institutions as well as in corporate World with little changes. It saves a lot of time as it allows number of students/trainees to give the exam at a time and displays the results as the test gets over, so no need to wait for the result. Administrator has a privilege to add new teachers and students to the test papers. User can register, login and give the test with his specific id, and can see the results as well. This software can be used anywhere any time as it is a web based application (user Location doesn’t matter). No restriction is there that examiner has to be present when the candidate takes the test. The current system is analyzed thoroughly and all the bottlenecks are identified. 2. Users demonstrable needs are captured and freezed. User needs a web-based system, which will remove all the problems in existing system, the user is facing. The user wants a web- based system, which will reduce the bulk of paperwork, provide ease of work, flexibility, fast record finding, modifying, adding, removing and generating the reports. A new system has been proposed on my perception of the system, in accordance with the problems of existing system by making a full layout of the system on paper. 4. The feasibility of the system proposed was analyzed by comparing the following factors with both the existing system and proposed system. The proposed system was found feasible in terms of cost, effort, time and labor. Analysis of the system is complete. 5. Database design is complete. 6. System coding is in progress.

Motivation and Performance Theories in Relation to New Zealand Post

A simple game of bingo, if analysed closely, can be shown to be a tedious task consisting of a repetitive action that occurs after being prompted by a repetitive stimulus. The skill level needed to make that action is low, and the variability in the rules of the game rarely changes. This game is not unlike many of the jobs that can be classified as having low motivational performance. So why do people not only enjoy playing games like bingo, but actually pay money to have the pleasure? The answer directly points to the motivating factors of monetary rewards, which is the stimulus for the individual†s performance. In this essay I will discuss the theory behind â€Å"Motivation† and â€Å"Performance† in relation to New Zealand Post and the theoretical ideals that their management should adopt with employees. There are many theories regarding motivation with the most prevalent being the theories of Abraham Maslow and Frederick Herzberg. It is important to understand these theories and their implications to accurately comment on reinforcement theories of motivation. According to Maslow†s hierarchy of needs, there are five classes: (1) physiological, (2) safety, (3) social, (4) esteem, and (5) self-actualisation. (Karen. P. Harlos Lecture Notes) each lower level need must be satisfied before an individual experiences higher level needs. Also, as Hall, Batley, Elkin, Geare, Johnston, Jones, Selsky and Sibbald (1999) found that Maslow hypothesized that as physiological, safety, social, and esteem needs were satisfied, they ceased to motivate, while the self-actualisation needs actually motivate an individual more as they are satisfied (Hall et al. 999). Herzberg used this theory as a base to build his motivation-hygiene theory, which ties Maslow†s needs to on the job achievement. The hygiene elements relate to low needs (physiological, safety, and social)(Harlos 2000). For an individual, hygiene conditions include company policy and administration, supervision, relationships with peers and supervisors, work conditions, salary, status, and security. These, according to Herzberg account for 69% of the factors that cause employee dissatisfaction or lack of motivation. The motivation conditions, which include achievement, the job itself, recognition, responsibilities, and personal growth, accounted for 81% of the factors that contributed to job satisfaction. The hygiene conditions are extrinsic factors (behaviour that is performed for material or social rewards as defined by Harlos 2000) while the motivation conditions are intrinsic factors (behaviour that is performed for its own sake not for material or social rewards as defined by Harlos 2000), and the only way to sustain motivation toward organizational goals is through the achievement of intrinsic outcomes. Each of these theories has proven to contain ideas consistent with human nature, but each also has its limitations within organizational settings. Because lower order needs are generally satisfied in the workplace today, managers have to deal with how to provide esteem and self-actualisation to their employees, and that can be a vague concept to a manager who demands results immediately. Also, studies demonstrate that different workers are motivated by different factors be them intrinsic or extrinsic. In relation to New Zealand Post the above theories can be applied to achieve an excellent level of motivation within the organization, however there are potential disadvantages also, where the employees may get over-motivated or become too empowered and thus create divisions within the organization. In terms of Maslow†s theory, the five levels of needs could be ensured by mangers of NZ Post and overall by the corporate planners of NZ Post by the following; in terms of physiological needs, money is the driving factor here as it provides the a means of achieve food, shelter, warmth and sleep, thus that management role is very limited, as it is controlled to a degree by relevant laws of the country. However those above the management who set wages must be careful not to set wages too low, otherwise workers will become grossly dissatisfied and look elsewhere to achieve their basic needs (Hall et al. 999). At the safety level NZ Post can provide their employees with agreeable contracts and work benefits such as health care. A work environment that is considered safe as well as adequate ongoing training is another aspect, also assurances of long-term employment (Hall et al. 1999). Social level issues can be resolved by NZ Post by organising teams maybe by regions and encouraging group satisfaction, or perhaps even making sure contact is established by way of team sports days, or annual picnic†s etc, any activity that ensures worker contact (Hall et al. 999). The next level is perhaps the most crucial in terms of how much NZ Post management is concerned, management may be able to fill esteem needs of the employee by showing recognition of a job well done, which may lead to a internal structure whereby levels of achievement are reached, and as the employee reaches these levels they may gain more responsibility within the organisation (Hall et al. 1999). Self actualisation needs in terms of what management can do for employees to reach this stage, entirely depend on the individual, and the previous stage, as itself esteem is realised then self actualisation becomes of more importance, and so the employee is self-motivated and the role of the NZ Management is merely one of maintenance (Hall et al. 1999). The above are all very good in theory, but in practice the implications of some of these theories for an individual and for the organisation can be crucial. NZ Post Management couldn†t be blamed if they felt the offering of money to an employee over and above what the individual needs to satisfy there needs would result in that individual working harder, however what is more likely to happen is the individual isn†t motivated anymore by that factor, and is instead motivated by esteem needs, as cited in Hall et al. 2000) â€Å"A satisfied need is not a motivator† The application of the Herzberg two-factor model is in practice much more involved that I first thought, there seems to be a large amount of criticism about Herzberg, which I will attempt to briefly outline, and thus if NZ Post was to adapt this theory it may not provide the right answer to any problems they may be facing. Firstly there has been research done into the methodology of Herzberg's research, it seems that by asking the questions in the way that they did it was only natural that individuals would attribute the good things about the job to themselves and the bad things to the organisation (as suggested by Vroom 1964 cited in Thomson 1989). So the good things simply became meting challenges, getting promoted and assuming responsibility, whereas bad things were in affect always the fault of the organisation. Thus it was reasonable for individuals to attribute their lack of performance as being a result of poor organisational structure or communication, or poor wages or bad working conditions, therefore Herzberg†s findings were more a result of the way the questions were asked and not altogether an indication of what motivated individuals at work. The second criticism that arises is whether or not it is possible to clearly â€Å"distinguish between motivator and hygiene variables in the way that two factor theory does. † (Thomson 1989 pg 164). At times factors like the gender of the worker and the structure of the organisation tends to influence whether or not a job characteristics acts as a motivator or a hygiene, thus the distinction is not as clear cut as Herzberg†s theory would suggest. Finally the two-factor theory just doesn†t take into consideration the differences between individuals, its just known that individuals do not always react in a similar fashion, for the same work characteristics which will motivate one individual may not necessary motivate another. I suggest for NZ Post to be able to maintain the calibre of people they strive for, and to provide tools to develop and grow, the best way to create the desired environment and create the best management would be to adopt Maslow†s theories, as it allows for more of an individual touch to individual situations. McGregor developed an additional theory on human behaviour, motivation, and especially performance in the late 1950†³s. His theories X and Y and were based on assumptions made regarding the â€Å"system† and individuals. In short, in Theory X (the most common management practice) management organizes all elements of production, motivates and controls employee behaviour to fit the needs of the organization, and without this intervention, employees would be indifferent to changing organizational needs. McGregor further assumes that managers believe that the average employee is by nature are lazy, dislike work, want security and dislike responsibility (as cited by Harlos 2000). McGregor†s alternative to Theory X was Theory Y. This theory made the assumptions that management has the responsibility for organizing the elements of production, people are not by nature passive, but become so as a result of experiences, management should enable employees to develop their motivational characteristics, and that it is essential for management to arrange organizational conditions in a manner where employees can achieve their own goals by directing their personal effort towards organizational objectives. The contrast between X and Y solely relates to who controls human behaviour. Theory X touts external control, and Theory Y promotes a self-fulfilling prophecy and that Theory Y management will breed Theory Y employees and vice-versa. In the application of McGregor†s theories an obvious pitfall is that obviously given the choice management will opt for Theory Y, however the application can result in a very different outcome. Theory Y places an unrealistic amount of burden on the management, and thus they have to sometimes resort to Theory X as no matter how much nurturing or inspiration managers give to employees, there will always be some who just have no desire to work, and show little or no initiative. So NZ Post may run many seminars to attempt to increase performance, or empower those who management feel need a performance boost, yet inevitably those who have no desire to perform better will just not respond to any of these performance motivators and hence management will have to resort to Theory X management to get these employees to work as they should be. Another problem may be with those employees who have been part of the organisation for a number of years, and a new fresh inspirational manager comes along who has been to all the courses and seminars and has used all the theories, and yet these employees are so used to old school Theory X management, they will just simply not be able to conform to this new Theory Y management style, as suggested in Hall et al. (1999) In conclusion I have outlines both Maslow†s and Herzberg†s theories in relation to motivation and McGregor†s theories in relation to performance. I also have suggested ways in which NZ Post could apply these theories to enable them to better fulfil their corporate profile statement. I suggested that perhaps Herzberg†s theory would not be best suited to NZ Post due to the many flaws in the application of his theory and that Maslow†s theory in practice would enable a better fufilment of the corperate profile statement.

Music And Its Influence On Society - 3041 Words

Introduction Art has undoubtedly become a decisive aspect of our culture; embedded in the way we learn and grow on a daily basis. Art forms such as music, television and dance dominate our society as an outlet of freedom of speech for humanity. The evolution of music has rapidly exceeded its original classifications, developing new genres with greater appeal to an audience, hence its influence on society has expedited. In recent times, lyrics (specifically rap lyrics) have been introduced into the court room as a form of documented confessional evidence, evidently challenging law’s authoritative nature. This essay will closely follow the genre of rap and its relationship with law, through cases based in the United States of America (USA). In addition, the trial of Simon Bikindi in Rwanda and Smith v The Queen will be used to form an acute analysis on the influencing factors of relevance, identity, freedom of speech and current constitutional law. II. Hip Hop Music and Crime In tune with the worldwide development and popularity of Hip Hop music, â€Å"a symbiotic relationship between culture and law†1 has emerged. â€Å"Culture shapes the law, and law is a product of culture†.2 Our society is reminded and alerted to daily neighborhood, state and national crimes via not only online and television news forums, but the various social platforms now heavily relied on: YouTube, Instagram, Twitter and Facebook. However, it can be argued that these new advances in technology andShow MoreRelatedMusic And Its Influence On Society1752 Words   |  8 Pages Music has always been an influence in the evolution of world civilizations and is still an important form of art and entertainment that humans find great pleasure in listening to today. There are multitudinous types and genres of music from all over the world, varying from classical, jazz, hip-hop, reggae, country, rock, and even rap. 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