GMS 200-MINI Assignment 2 (1)

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School

Toronto Metropolitan University *

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200

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Management

Date

Feb 20, 2024

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pdf

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Uploaded by UltraSalamanderPerson1034

Mini Assignment 2, Section 1 Cases 2 Zara International | Fashion at the Speed of Light 1. In what ways are the elements of the classical management approaches evident at Zara International? [1.25 mark] This case gives insight into the workings of one of the largest fast-fashion brands today. Their way of running their operations is similar to a type of classical approach to management called the administrative principles. These principles are foresight, organization, command, coordination, and control. Zara uses their just-in-time system to get designs similar to the ones seen on popular runways and high-end stores onto more accessible racks for more affordable prices. This requires them to know what is popular and what the people will want in the future, also requiring them to make a plan for future designs. Zara uses their system to organize their shipments and deliveries to keep up with the ever-changing fashion world. They provide the resources such as fabrics and designs and quickly and efficiently send them to customers worldwide. Zara commands their workers to use their strengths to maintain the brand's speed by selecting those with the talents and skills necessary such as designers, and photographers all of whom are likely to have a knowledge of fashion extensive enough to keep up. Coordination in a brand like Zara’s is essential to having everything run smoothly, Zara has designers and display workers being given information on trends and fashion in the world to create displays and designs in stores for customers. Zara controls their production and design to maintain the speed needed to push out as many clothes as it can. Again using their just-in-time system they control when things get sent out and when they get replaced for something new and more popular. They

also control their production and distribution in a way that allows them to keep profits without giving them to wholesalers or other partners. 2. What elements of the behavioral management approaches are being used by Zara’s management team? [1.25 marks] Some elements of behavioral management that are being used by Zara are some of the eight necessities of management by Mary Parker Follett. Zara shows the division of labour and adequate manpower by having large amounts of employees working on manufacturing their designs each being given certain tasks to accomplish. They divide their labour by outsourcing their manufacturing and having products and resources primarily located in other areas. Zara also focuses on advertising budget by spending just 0.3% of sales on advertisements while the competition spends around 3-4%. 3. How can systems concepts and contingency thinking explain some of the distinctive practices underlying Zara’s success? [2.5 marks] Contingency thinking is defined as matching actions to problems and opportunities specific to different people and settings. Zara practices this by looking at the problem many consumers have which is not being able to afford or acquire high-end fashion or items. With contingency thinking, there can be many solutions to this, many of which Zara implements. Zara sees the trends and items people want from higher-end fashion brands and allows those who are unable to get them quickly to acquire them within weeks of the designs hitting the markets. They sell their products at much lower prices allowing people to have access to designs they wouldn't be able to get without Zara.

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GMS 200-MINI Assignment 2 (1)

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