ZARA

Topics: Management, Quality control, Transaction cost Pages: 18 (4997 words) Published: May 26, 2015


Quality problems of ZARA in China under globalization

Jiang Chenxi: 江晨曦12151561
Pan Chenli: 潘晨丽12151573
Han Tiancheng: 韩天骋12151585
Zhang Tianyun: 张添韵12153779
Zheng Zhenni: 郑铮妮12151611
Yao Jiachen: 姚佳晨12151623

Table of contents
1. Introduction3
2. Industry overview and relevance on a global scale3
2.1 Globalization - A POPULAR MEGATREND FOLLOWED BY ORGANIZATIONS3 2.2 Apparel Retail Industry - A GLOBAL INDUSTRY WITH A SHORT PLC4 2.3 Apparel Retail Industry - A BURGEONING INDUSTRY4
3. Industry Trends5
3.1 Poor Economy - Opportunity to Fast Fashion Model5
3.2 Expansion in emerging markets - China5
4.ZARA - MARKET LEADER IN APPAREL RETAIL INDUSTRY6
5. Methodology - DOCUMENT AND QUESTIONARE7
6. Problem framing OF ZARA QUALITY MANAGEMENT9
6.1 LOW Cost STRATEGY LEAD TO POOR QUALITY9
6.2 Customer prefer FASHION RATHER THAN QUALITY10
6.3 Outsource ANALYSIS BASED ON THEORIES11
7. Key findings in outsourcing12
7.1 Inefficient communication system LEAD TO GAP IN SUPPLY CHAIN12 7.2 FREQUENTLY CHANGING SUPPLIERS RESULT IN QUALITY PROBLEM13 7.3 INCREASING COST ON LABOUR AND CUTTING DOWN BUDGET ON MATERIAL15 7.4 INEFFECTIVE SUPERVISION SHOULD BE RESPONSIBLE FOR THE PROBLEMS16 7.5 Poor customer relationship management RUINED REPUTATION17 8. Conclusion18

Reference:19
Appendix22

1. Introduction
The globalization lowers the barriers of trade and expands the market and brings more consumers. Apparel retail industry, as a global industry, is definitely influenced by the process of globalization and the companies involved have been increasingly interdependent and integrated. Meanwhile, these companies are also facing some management challenges caused by globalization. This report will analyse the impact of trends in apparel retail industry led by globalization and mainly focused on the quality issue found in ZARA.

2. Industry overview and relevance on a global scale
2.1 Globalization – A Popular Megatrend Followed By Most Organizations Globalization involves the establishment of linkages between countries, which leads to the growth of international trade, migration and foreign investment (Nayef; Stoudmann 2013, p.4). The main factors, which are competition, technology development as well as reduction of political and legal barriers, drive the globalization. To explain, players have to follow suit in order to avoid being eliminated when their competitors take globalization strategy and seize the growth opportunity. Advanced technology applied in modern communication and transport can easily take the world to convergence. Besides, governments assist in economic and political linkages through signing agreements to accelerate globalisation. To some degree, globalization has positive impact on the world economy. 2.2 Apparel Retail Industry – A Global Industry With A Short PLC Defining apparel retail industry is the first step to analyse this industry in global scale. Apparel retail industry is a global industry, with short product life cycle, ever-changing demand and enormous product variety (Sen, 2008, p.10). As a major industry belonging to fashion industry the main activities of apparel retail industry include the retail sales and follow-up promotion, (Villette, 2010, p.467-468). Besides, apparel retail comprises the sales of menswear, womenswear and childrenswear (Marketline 2014, p.5). According to the Five Force Model, the rivalry degree in global apparel retail industry fierce and the threat of new entrants is strong. Besides, the bargaining powers of the buyers and suppliers are both moderate, and the threat of substitutes is weak (Marketline 2014, p.13-17).

2.3 Apparel Retail Industry – A Burgeoning Industry
The global apparel retail industry experienced stable development recent years and is predicted to experience accelerate growth in future five years, from 2013 to 2018 (Marketline 2014,...
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