Annual accounts, management report and audit report of inditex group only spanish version espanol, pdf, 4. Senior management have a particular role to play in approving the strategy and by supporting its rollout throughout the department. Zaras business strategy the american college of thessaloniki mba program. Analysis and recommendations of zaras strategic plan. Zara has been in the market for two decades and has developed its brand image in shoppers. This study analyzes the business strategy of fast fashion through zara, a successful fashion brand from inditex spain.
Zaras secret to success retail its pricing strategy t1. This presentation covers the main characteristics of zara, a general view of fast fashion indystry, porters five forces analysis, competitors external environment as well as a complete internal analysis regarding. Anggita sulisetiasih 1006718706 kenji wibawa junardy 1006718990. In other words, the concept describes how trends move from the catwalk to major retail stores. People are highly motivated which reflects zara hr. The time strategy is the dominant strategy, because as i mentioned above, time is a cost itself for the company, so when zara manufacture and deliver the products in two weeks while the others take months to finish this process, this means that zara will have the chance to reduce costs and increase revenues, also increase the intangible and. It offers jeans, trousers, tops, skirts, knitwear, tshirts, shoes, bags and accessories. Challenges faced by zara in us essay example graduateway. The analysis and recommendations of zara s strategic plan strategic position is concept which is concerned with the impact on the strategy of the internal resources as well as competences, external environment as well as the influence and expectations of the stakeholders. Guide to preparing a learning and development strategy 7 key stakeholders there are key people and groups who can influence the strategy and others who will be affected by it. There is a fundamental paradox at the heart of any attempt to define or otherwise engage with shrm. Strategic management for zara 167 downloads 15 pages 3,639 words add in library click this icon and make it bookmark in your library to refer it later. Human resource management hrm is the coordination of an organizations people to achieve specific business objectives, fulfill staffing needs, and maintain employee satisfaction.
Strategic planning is the process of determining the organizations longterm objectives and establishing the goals necessary to achieve them. Zara is an international fashion retailer which has gained considerable acclaim, being one of the leaders of the highstreet fashion industry, and regularly producing new products for the market, at a rate that is quicker than its competitors can achieve, due to the strong supply chain in place. Dec 30, 2018 market development is the strategy of entering new markets or geographic regions. The report will first focus on introduction with a bit about history and initiation of albrecht discounts that known as aldi as well. Zara company overview zara is one of the largest international fashion companies. Zaras core consumers are 2045 year old women, though they also have kids and menswear offerings. In the words of the oxford concise dictionary, strategy means generalship. Strategic management in multinational companies case of. Guide to preparing a learning and development strategy final. Zara has used almost a zero advertising and endorsement policy throughout its entire existence, preferring to invest a percentage of its revenues in opening new stores instead. Another great strategy of scm adopted by the zara is to control the scheduling. Director of the advanced human resource management program in the division of management education, graduate school of. This case study was prepared to meet the requirements of an academic exercise. As described in a case study of zara s supply chain, the company is vertically integrated, controlling most of the processes in its supply chain.
The customer is at the heart of our unique business model, which includes design, production, distribution, and sales, through our extensive retail network. The growth and development of the professionals working at inditex is one of the groups priorities. Strategic plan 2015 presented by grisell rodriguez conclusion this strategic plan expresses zaras continued commitment to its mission and vision, to give the customer an exclusive choice of fashion by providing a quicker turnover of new stock than other fashion retailers. Zara zara was selected as the company to be studied. A smart supply chain strategy, a retail strategy that is smarter than others and an ability to innovate have turned zara into a challenger for even. Zaras successful supply chain management strategy social. Zara is ranked as one of the top 50 global brands in terms of brand value interbrand, 2009. What to consider a high performing model zara s next top model the finishing touches entering the asian market challenges to new and existing hr functions what to consider recommendations.
Given the strategic relevance of human resources management hrm in organizations and the lack of scientific instruments to measure employees perceptions about policies and practices of hrm, this study aimed to validate the human resources management policies and. Here is the swot analysis of zara or its internal analysis. According to strategic hrm, the hr strategy should be developed alongside the general strategy of the organization, to acquire cultural fit within and with the outside environment. To give this commitment the emphasis it deserves, the company uses training and internal promotions as a means of developing and maximizing creativity, as well as building professional skills. Human resources management policies and practices scale. Google, brands, employees, hrm, culture, motivation, compensation, employee retention, talent management, best practices, work culture, organisational culture, innovation microsoft.
Luxury brands have to admit zara has a strong position in the global market. Doc the strategic management analysis of zara relative. The shrm foundation is the 501c3 nonprofit affiliate of the society for human resource management shrm. Stay connected to your students with prezi video, now in microsoft teams. Its well constructed supply chain management strategy. Highlight what are the strengths, weaknesses, opportunities, threats of zara.
The product strategy and mix in zara marketing strategy can be explained as follows. All 68 countries are following the same concepts that are associated with the original brand. Over the years, zara has become one of the largest and best known retail brands, on a global scale. Zara is among the leading names in the world of fast fashion. Zara business model, retail strategy and supply chain management. Zara has expanded globally fast and today it is present in 93 countries with its more than 2200 stores.
Zara has satisfied the customers and has implemented strategies that made it possible to become dominant in the fashion industry. While it may not be possible for another company to exactly duplicate the conditions under which zara grew and flourished, we can certainly try and learn from. Business strategy of fast fashion a case study of zara request. Strategic human resource management john bratton chapter two strategic human resource management is the process of linking the human resource function with the strategic objectives of the organization in order to improve performance. Strategic hrmgroup report executive summary the report is a brief overview of human resources its strategies and roles. Generic and intensive growth strategies of zara fashion. Strategic supply chain management of zara fashion store. Before we try to explain the meaning of strategic hrm, let us first define the terms strategy and strategic management. This strategy is embraced to focus on the operations which can enhance cost efficiency while boosting service delivery and value proposition. Development of a draft balanced scorecard for zara marvin mertens seminar paper business economics miscellaneous publish your bachelors or masters thesis, dissertation, term paper or essay. The role played by human resource management in business growth.
Zara has created a business strategy that holds its key to differentiation within. First, the global integration of actiyities in zara is presented, with a discussion of. Apr 30, 2019 one of the stores which gives marketers lessons on how to keep customers coming back is zara. Although they are running retail stores efficiently, only 44 of them are located within the u. Company zara is one of the biggest international fashion companies, and it belongs to inditex, one of the worlds largest distribution groups. The goal of the balanced scorecard is to tie business performance to organizational strategy by measuring results in four areas. Request pdf business strategy of fast fashion a case study of zara this. Defining the field graeme salaman, john storey and jon billsberry 1 the significance of strategic human resource management strategic human resource management shrm has been, and remains, one of the most powerful and influential ideas to have emerged in the field of.
Organization culture the human resource at zara are one of the components behind the unique efficient and quick response system. Zara zara is the foundation of inditexs success as well as their first retail format established in 1975. Unlike brands that update only once a season, zara restocks with new designs twice a week, suzy hansen writes. Zara has achieved this despite proudly claiming that they have never spent a penny on advertising.
The companys strategy involves stocking very little and updating collections often. Doc the strategic management analysis of zara relative to. In 2015, it added total 65 stores and 50 zara home locations. Zara marketing mix 4ps zara marketing strategy mba. Instead, the value of zara s brand comes from its supply chain and its ability to add value to every stage of the supply chain porter, 1985.
While the sales of the brand have surged fast, so has its market size. Strategic themes for human resources kus success is largely dependent upon the quality, reputation and productivity of its people human capital. May 02, 2016 zaras pricing strategy not only the value proposition is evident, but also is affordable to most customers. Zara a human resources perspective by stephen carruthers. The intent of the meeting was to discuss zaras current strategy and. Originating in spain, back in 1963, the company has since become internationally recognised, with more than 2000 stores. With the increasing recognition of the potential of human resources in providing competitive advantage, organizations have. Zara business strategy analysis linkedin slideshare. How to align hr strategy with business strategy how to. It is a popular fashion designing and manufacturing company, which has been declared as the most efficient market responding enterprise. Reshaping hr strategies founded in the year 1975, microsoft is the worldwide leader in software, services and solutions.
This typically can be said to be an emergent strategy as the zara store today was not an intended strategy. Zaras strategic capabilities and value chain analysis. The shrm foundation maximizes the impact of the hr profession on organizational decision. Zara has followed an optimal combination of all these.
Our groups cycle of internal promotions and employee training is completed by our talent attraction strategy, the cornerstone being the inditex careers website. Pdf purpose the purpose of the paper is to describe how the understanding of. Explain the target market and active customers of zara focus on the potential customers value proposition and the reasons why people prefer zara. So how has zara been able to standout from all other fashion competitors. The balanced scorecard concept is a management and measurement system which enables organizations to clarify their vision and strategy and translate them into action. Global integration without expatriates global integration.
Fast fashion is a concept that describes the quick phase at which fashion retailers capture current fashion trends based on recent major fashion shows. The present study covers the relationship between hrm strategy and hrm style and its effect on organizational performance. The first store opened by accident in 1975 due to a large pyjamas order cancellation. Mar 18, 2016 the products of mango are also similar to zaras in style, pricing and quality, however, mango is very different from zara in organizational strategy as mango is based on a franchising system, and in marketing strategy, relying heavily on advertising campaigns. Marketing in fast fashion in mid springsummer season 20, oscar perez marcote, director of the zara business unit at inditex since 201, sat in his office preparing for a meeting with inditex ceo pablo isla tejera. The intent of the meeting was to discuss zara s current strategy and. Definition of global human resource managementihrm ihrm is the process of procuring, allocating and effectively utilizing human resources in multinational corporation.
Hrm accomplishes this through the use of people, processes, and technology that focus on the internal parts of the organization rather than on the external. Human resource management is committed to regular analysis of our services to ensure that we are addressing the long term people needs of the university. The brand has grown fast in terms of market size, global presence and sales and revenue. Zaras quick response capacity is made possible by the fact that it controls the 3 main stages of its operations that define the competitive edge of the company. Word of mouth and social media have helped it achieve what other brands are struggling to achieve.
Zara is known for its fresh designs and for keeping the designs on rotation so that the customers always get new designs whenever they walk into the showroom. It begins by redesigning couture trends for the mainstream market and then leads to manufacturing, distribution and then retailing. The company continued to grow its presence in china which had 2 new stores throw open their doors. Linking human resource management practices with business strategy strategic human resource management is an essential part of every successful organization or an organization. Instead, the value of zaras brand comes from its supply chain and its ability to add value to every stage of the supply chain porter, 1985. With your download, get the 22 best papers relevant to this one, including 20 top related papers. This presentation covers the main characteristics of zara, a general view of fast. In the case of zara, its marketing strategy consists of high turnover in which the company usually has ten thousand single items per year running through their stores zara. Strategic human resource management shrm is one of the mean to achieve organizations. Free essays on zara of human resources management analysis.
Through the analysis of the companys human resource management system. The report analyse aldis strategy to performance efficiently into the highly current competitive market. Strategic planning and human resource management devanna. An indepth case approach is adopted based on extensive secondary research. Swot analysis of zara zara swot analysis or internal analysis. To properly understand the implications of international human resource management this report uses the case study of zara company, the spanish apparel retailer company. Despite, or possibly directly because of, the important role shrm plays in theories of, and attempts to describe, understand. The process involves an indepth analysis of current and anticipated conditions that may affect the organizations ability.
A strategic management tool which is used to analyze the strengths, weaknesses, opportunities and threats of an organization is known as swot analysis roney, 2004. Business strategy of fast fashion a case study of zara. It is one of the most important strategic management tools which is used to assess the effectiveness of a company along with analyzing its loopholes as well. The strategic approach to hrm refers to the relationship between human resource hr practices and the strategic objectives, that is, the longterm goals of the organization. In consideration of optimizing development and training costs, the current pricing strategy is suitable for zara. The role played by human resource management in business. Zara strategic plan 2015 by grisell rodriguez on prezi. Mar 23, 2012 the company reports that not only did it seek out prime real estate along established shopping corridors hello zara flagship on fifth avenue in nyc, it also changed up its retail strategy to.
If a global company is to function successfully, strategies at different levels need to interrelate. The store managers at zara emphasize to place the orders at least 2 times a week, while the shipments are delivered strictly within 24 hrs and the products are available to display on the store at the same day they arrive. People are highly motivated which reflects zara hr policy. It is now in 93 countries with more than 22,000 stores. However, in zara s case, the inhouse manufacture gives zara higher speed and lower recycle time. Zara is a wellrenowned name in the field of clothes and accessories, all across the world. Zara s success is as much a result of its history and location, as its counterintuitive business strategies. The term strategy is widely used in and presupposes importance.
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