Zara International!

1) One of the biggest reasons for the success of Zara International, is their ability to implement classical management approaches.  High specialization of labor is key in regards to Zara's business plan.  For example, they have 200 professionals specifically looking out for the latest trends, which helps them provide these trends within 24 hours.  They also try to achieve profit maximization which is evident by their low budget on marketing as opposed to other competitive retailers.  Three main classical management approaches are seen through Taylor, and Weber's theories.  Taylor's emphasis on efficiency is provided by Zara's ability to be up to date on the newest fashion within two days as well as re-stocking stores as soon as possible.  Inditex's ability to control the supply chain to maximum efficiency also helps Zara.  Weber believed the best way for management to prosper is through a bureaucratic organization.  This would develop a well defined hierarchy, division of labor and specialization, rules, competence, interpersonal relationships, and records. (cliffnotes)

2) Operations management can be seen in practice at Zara.  Their ability to be efficient and meet customer's needs as soon as possible is a great sign of operations management.  The distribution centers can have the latest items in store within 24-48 hours.  Customers are happy because they can have the newest looks in a matter of a few days.  Customers can also expect new items on a weekly basis because managers are able to use their handheld devices to reorder new items or track what's hot and not.

3) The success of Zara's distinctive practices can helped be explained by their system concepts and notion of contingency thinking.  For example, instead of using the same clothing lines week to week, they replace them leaving customers unsure of what products will be available.  They also are able to bring high end fashion to low income shoppers at an affordable price.  Lastly, Zara tries it's hardest to make sure there is no overstock of any item so there would be no need for any markdowns.

4) Based on several articles, Zara is continuing to do well.  According to an article in the New York times, "as the European crisis continues, retailers say price matters."  Due to that, Zara decided to "absorb" the extra costs instead of placing it on the consumers.  The firm is able to do well with their emphasis on the customer and great supply chain management.  Inditex is also still providing worthy management benchmarks according to recent financial numbers.  In an article in the Wall Street Journal, Inditex had a first half net profit increase of 32 percent even in such tough economic times.  It does not look like Inditex and Zara will be going south anytime soon.  With such great management control and approaches, Zara seems to stay atop the retail game.

http://online.wsj.com/article/SB10000872396390444032404578005700811225838.html?KEYWORDS=zara

http://www.nytimes.com/2012/09/21/fashion/21iht-fprice21.html?_r=0

http://www.nytimes.com/2012/09/05/realestate/commercial/the-heart-of-fifth-avenue-shopping-edges-to-the-south.html?pagewanted=all

http://live.wsj.com/video/what-makes-companies-profitable-during-a-slowdown/3186DD4A-DAA0-44A4-87E2-4447AC9FDF5A.html?KEYWORDS=zara#!3186DD4A-DAA0-44A4-87E2-4447AC9FDF5A