a. Hawthorne studies
• Zara increases worker productivity by carrying out activities in a manner that most respects the employee environment. With a sympathetic supervisor that implements special treatment (specific responsibility) upon the employee population, the company finds major increases in worker productivity.
b. Maslow’s Hierarchy of human needs
• While following employee conduct, Zara tends to both higher needs and lower needs that are portrayed in Maslow’s theory. With higher needs, Zara tends to their employee’s esteem needs by treating everybody with respect and allowing them to feel like they have a special …show more content…
Answer: In world-class companies like Zara, diversity in different environments can be tough to work with if little to no experience/knowledge is available. Fashion trends are evidently one of the most diverse trends in the world as factors such as religion or “class” show a person’s true identity. When Zara began their expansion, they had uncertainties that were a result of different traditions or cultures and what they liked to wear. So, they had to plan ahead and use contingency thinking. In contingency thinking, there is no “one best way” to manage in all circumstances. Instead, this form of thinking assists managers in understanding and responding to unique characteristics in a new market. Contingency thinking in Zara’s perspective guided them when it came to diversification in fashion by studying different cultures and applying designs that different subcultures would find appealing. By doing this, the company was able to vary its selection of product based on where the store is located. For example, a store located in China should focus more on Chinese trends in fashion than a store located in North America. Ultimately, contingency thinking with research on trends in new locations made expansion much easier than expansion without knowledge on …show more content…
Zara’s intent, values, vision and mission are all based on the consumer and the employees of the company, something not found in many clothing brand in the 21st century. Zara focuses and supplies its consumers’ needs with high quality products for a cheaper price than the competition. Zara, owned by the Spanish multinational clothing company, Inditex Group, shortens the time from order to arrival by using a complex system of just-in-time production and inventory reporting giving Zara the advantage keeping t ahead of its competition. Zara’s store managers keep track what costumers shop for, providing them with a list of what’s selling and what’s not, designers are then reported to put together new products, new arrivals are then rushed to stores. With such strategy, Zara creates a scarcity value where shoppers cannot be sure that designs in stores one day will be available the