Zar Corporate Culture And Organization Essay

1424 Words Nov 15th, 2016 6 Pages
Introduction Zara was created by Amancio Ortega Gaona in 1975 in Spain. From there, he kept expanding, and by 1989 he had opened up 82 stores in Spain. Zara eventually began expanding globally, and by the year 2000 over half of Zara’s sales were from outside of Spain. If you look at Table 9-1 below, it shows that Zara’s net sales gradually increased by millions from 1998 to 2000, and that they are Inditex’s bestselling brand. By 2001, Zara allowed the public to invest in their stocks and became the world’s third largest clothing retailer. They also had over 1200 stores located in 35 countries. Zara offers moderately priced, fashion forward clothing for men, women, and children.
Analysis/Recommendations One key success factor for Zara is their corporate culture and organization. They create a positive culture through informal feedback between store specialists and store managers. They also hire store managers that have previous retail, commercial design, and market trend experience. This is done so that the managers can bring market information from the stores back into the design and production decision-making. To encourage success and productivity, as well as a positive environment, they keep their design department well lit, modern, and have pop music playing. Their well organized operations have also added to the company’s success. They only commit 50-60% of production in advance, and the other products come from in-house. This…

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