Essay about Information Systems and Operations Management

1745 Words Mar 31st, 2013 7 Pages
Please read the article: Zara: Fast fashion from savvy systems available for free at http://www.flatworldknowledge.com/pub/gallaugher/41128#pdf-7 This article makes up Chapter 1 of the free, open access book titled, Information Systems: A Manager's Guide to Harnessing Technology, by John Gallaugher. Please ensure that you read the entire Chapter 1 of the book consisting of 3 parts (Part 1 Introduction; Part 2 Don’t Guess, Gather Data; and Part 3 Moving Forward).
Now answer the questions below:

Question 1:
The Zara case shows how information systems can impact every single management discipline. Which management disciplines were mentioned in this case and how does technology impact each? (50% of the total mark)

The case study
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Zara’s products are manufactured for a limited production run. This approach encourages customers to buy right away and at full price.
The constant parade of new, limited-run items also encourages customers to visit often.

Staff allocation
Headquarter of Zara uses software to arrange staff’s roster. The manpower is allocated based on each store’s forecasted sales volume, with locations staffing up at peak times such as lunch or early evening. The firm claims these more flexible schedules have shaved staff work hours by 2 percent. This constant refinement of operations throughout the firm’s value chain has helped reverse a prior trend of costs rising faster than sales.

Zara’s combination of vertical integration and technology-orchestrated supplier coordination, just-in-time manufacturing, and logistics allows it to go from design to shelf in days instead of months.

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Question 2:
Do you think information systems are a strategic liability for Zara? Give reasons. (50% of the total mark)

Porter’s five forces analysis
To understand the business condition of fashion industry, we need to use Porter’s five forces model. It is shown how the market behaved at the very beginning of the company according to

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