Q. Considering the case study of Zara Internation, prepare a report based on the following scenario:
As a consultant chosen by Zara to assist with the expansion of its Australian stores, you have been asked to propose how management mighthelp the company smooth its way to success with an Australian workforce in terms of management concepts as presented in this unit. Whatmanagement concept/s would you propose to successfully transition into this new region? In addition, to support this proposal you will need to explain ‘why’ by demonstrating your critical and evaluative understanding of management concepts underlined by the functions of management.
From the work you have already completed in the CASAs you should now be aware that you are going to identify a management problem/potential problem related to the FoM, put forward some critical discussions on the problem/potential problem which refer to the literature (your research on management theory/s and concepts), and draw some conclusions including management recommendations.
The case mainly evolves out with the possibility that the company Zara is a fast fashion organization that sells fashion clothing to the customers in reference to the new fashion and the design team that Zara has taken care about the fabric procurement, available best fabric in the market. The brand also follows a unique marketing concept along with that the environment friendly campaign help to gain strategic performance in the overall operational process and sustainable development policy in the market. The vision and mission of the company is very clear that they want to serve by showing their effort in creating fast fashion for the customers.
Zara tries to open up its new store in Australia, as they need to catch the attention of the customers and need to collect profitability from the market place. With the consideration of global market scenario the company needs to strategize proper plan so that it can open up new stores that will get support from the management as well as the customers will like the stores and will continue to buy things from there. Zara is a high international brand and it is running with proper possibility that it can attract the attention of the customers by serving best things to them and cater best values. The management can help to open up new stores in Australia as the country has new workforce structure so the company needs to be very much specific about other things (Tadajewski & Jones, 2016).
The workforce management planning will help the company to get possible information about each thing. The company need to forecast everything before go on to strategize the plans with new possibility. The correct process of technological method, correct method to manage the operational procedure will help the company to do best things in consideration to the Australian market (Harman & Heath, 2017). The optimal performance of employees will help to strategic implementation of things in a new way so that they can use the workforce in a correct way and the workforce can serve best things for the brand as well as they can able to maintain a good position in the global market. The effective management of things will help to minimize the labor cost and increase employee performance (Webster Jr & Lusch, 2013). The continuous improvement can be generated through the basis of giving best solution for the operational process, marketing criteria and other networking possibilities.
The management concepts will help the process to strengthen its strategies in a positive way. The management process comprises of planning, organizing, directing and controlling things in a proper way. With the help of proper management, Zara can accomplish the objectives and they direct the management group to proceed with the activities and then achieve goals. Consistent planning, organizing things and controlling the management procedure will help in for take the action in a good way (Gatignon & Le Nagard, 2015). The resources that get used in the organizational process along with the articulation of things will help in the management process. Coordination and organizing things will plan up for better direction in management criteria and it will process the function in a better way (Line & Wang, 2017).
The management process can be categorized with the orientation of productivity orientation, human relation orientation, process orientation, decision-making orientation and the system approach. Innovation and representation of things are another aspect for getting growth and productivity and the organized effort will take care about the activity of the entire thing (Kirchner et al. 2016). The changing workforce possibility will help for the continuous help in decision-making criteria and it requires the entire support from other things. The marketing concept also take help from the product positioning. The global availability of the brand will help to deliver good things in GDP as Zara sells high-priced products and regardless of the geographic area the brand sells high level of fashionable cloths and couture (Giannopoulos & Avlonitis, 2014, July).
The effective research and development process in the fashion industry will help to strategize things so that the brand value get increased and the demand of the customers always stay positive (Fröhlich & Grimm, 2016). They have their own in house designers and they help in the entire process to get things done within minimum time and the designers get the information through fashion forecasting that how they can satisfy the demand of the customers (Bentley et al. 2015). Customers’ feedback is an essential thing in this context as they serve clear value of things and formulate the entire process in an efficient way (Caruana, Ramaseshan & Ewing, 2015). The cost maximization process and reduce cost in inventory help them to fulfill the need to the company and the lead time get measured outstandingly to manage the internal and external process. The traditional design process get subtracted and the brand develop other new process for serving the fast fashion to the customers.
The workforce is changing in a rapid way and people need to take the suggestion to that exact thing. The employees are the biggest asset and they will collaborate things, scheduling the things for better way and scheduling things in a good way and the competitive advantage (Perreault Jr et al. 2016). The substantial things will help in process things in a collaborative way and it will further view about the competitive advantage in the market place. Australian business culture is simply different from other countries and Zara is already established brand so before opening stores over there will take some of the management consideration. Australian workforce culture that define that how they can able to proceed things in a strategic way (Sheridan, 2017). The cross cultural communication process will definitely take a forefront because with the help of communication possibility the brand can enhance the possibility to enlarge itself in relation to the operation and marketing of the company (Svensson & Wood, 2015).
The Australian community take help of the communication method that can surely be a different way to take care of the operational process because the language is different and they need to communicate with the customers (Fiske et al. 2016). The epithets that describes ethnicity will strengthen the process in a different way. The new generation is a receptive process and the idea culmination can harm the entire method as they are always not open to the new ideas. The aggressive sales policy and strategies that Zara applies in the operational process can be a difficult process for the Australian workforce as they are very much modest in things (Muenjohn & Armstrong, 2015). They take debate as an entertaining thing and taking up this method for operational and marketing basis is a tough thing. As they follow various possibilities in their statement so the decision making process is very tough and in the retail organization it is very important to take help of the effective decision making process (Neuhaus et al. 2014). With consideration to the Australian work culture is has seen that the business culture status is much collaborative and here the top management takes all the decision. The top management is the main responsible authority to take decision for the subordinates other than that the management gives instructions for the entire operational method (Chaboyer et al. 2013).
One of the most important culture that they have is their communication process is very much straight forward and organizing a brand somehow needs some diplomacy in handling the customers (Wiewiora et al. 2013). Zara will get a good prospect in representing the correct body language to the customers as they show efficiency to that factor. There are some of the limitations and cultural barriers that the Australian communication has and the brand needs to take that strategies in a way so they can serve better things to the customers (Dunstan & MacEachen, 2013). Developing an effective cultural competency will help for planning of strategic management. Zara needs to take up the solutions in a way so they can able to overcome the barriers (Walker et al. 2015). They follow certain culture, value, habits and beliefs and that mainly comes from the environmental and societal factors and in relation to that thing the brand needs to coordinate things of management (Irving et al. 2016). The providence of clear value system has generated through this process and that dynamic prospect that change over time need to take under consideration. The Australian workforce has certain cultural awareness and stereotypical think that comes from the certain cultural thinking will process things in a newer way (Takala et al. 2014).
The cross cultural encounter can value for the ability to take out positive outcomes and the company need to justify that fact. The short term values and long term orientation can introspect good thing in the management criteria (Chong, 2014). The Australian people largely value for the equality and in workforce management they maintain the same thing so before opening the stores in Australia Zara needs to think about all this process so that they can able to manage the workforce (Van Der Meer et al. 2016). A retail organization largely based on the responsibility of retailers, wholesalers, manufacturers and most importantly the customers so to work with the entire team in Australia need certain consideration of skill and knowledge of management procedure. The cultural business behavior is a powerful basis here to manage things in a better and strategic way.
The company has followed the segmentation that is retention based and by following this possibility the company is strategize the plans in a new way so that it can gain profitability form the market. The brand believes that they can hold on to their customers by providing them fashionable clothes and they become the fashion chaser is this prospect like they value fashion and it cross the process of exclusivity. By the help of mass media and with the help of online presence the company plan the entire thing in a ways so that it can offer better things to the customers and this process incorporate customer preference, customer loyalty and purchase decision of the customers.
The company values their buyer that they have observed that mostly consumes are price concern and with the help of effective pricing policy they can effectively catch the mind of the customers. With the help of environmental management system they have managed to get a best distribution channel and they have taken consideration sole multinational textile process. The information system is the important process in this context and the centralized procedure will help the company to reach a great height and they gather the information related to the customer preference.
The successful transition in a new region will be a challenging fact for the organization as they need to take up various new possibilities and concepts in consideration to the management process. The management concept will of the company is different from other companies as it has taken the consideration of appropriate market penetration, product visibility to market, visual merchandising and providing a strong base for fashionable merchandise make Zara a different brand in the customer eye. The brand basically thinks that the sales expansion possibility come from the better market penetration and they have considered America, Europe, South Africa and Australia to expend their market. They have also focused on the customer loyalty by enhancing the environment in the internal process. In the management procedure they have taken vertical integration and the vertical integration process the entire control rule over distributors and retailers. The company’s headquarter is in Spain and from there they have operated the entire distribution channel. The company has followed related diversification as they are the fast fashion industry and to maintain the brand equity they are competing with other brands.
Zara also followed the quantitative strategic planning matrix has will help them to culminate the processing of generating relative attractiveness and has taken the alternative action for operational things. The distribution channel of Zara is different from other brands and it is creating an efficiency to increase productiveness. The marketing process of this brand now taken a new pace as they are following the digital communication method and this marketing campaign help the company to process things in a unique way. In the marketing policy the brand has planned for marketing 4Ps that is product, price, place and promotion.