The paper "Organisational Culture of Zara" is a perfect example of a case study on management. Zara focuses on manufacturing and selling products like the women and men accessories, shoes, clothes as well as cosmetic. The company is located in Arteixo, Spain, and has over 9000 stores in 91 countries. The mission of the company is to sustainably contribute to society and environment development where it operates. Zara’ s vision is to dedicatedly satisfy customer needs through continuous innovation. Zara has numerous goals and objectives such as to operate eco-friendly stores and to save energy by cutting energy consumption by 20 percent.
The success of Zara is attributed to two core competencies; innovation and efficiency. The report has determined that organic structure was the most appropriate organizational structure at Zara because it offers the needed flexible changes and can limit the hierarchy levels to improve the research outcome, as well as establish a democratic work environment. The report has reviewed the financial performance of Zara, and has established some mixed results recorded between 2011 and 2015; for instance, the company’ s sales/revenue in 2011 was 78.19 Million but reduced to 71.22 million in 2015.
The company recorded the highest sales in 2013 (83.26M) then dropped drastically in 2015. Still, Inditex sales and the net income (in million Euros) have been increasing progressively and are projected to continue increasing. Basically, an organizational culture develops through three levels; artifacts having noticeable attributes, employees’ values, and concealed assumed values. This report examines Zara’ s management competencies, leadership style, and people management. The external environment of Zara is analyzed using porter’ s five forces and PESTLE analysis. It has been recommended that the company should learn to listen to its customers in order to make sure their needs are met and to be able to retain a substantial market share in the competitive industry. Furthermore, Zara should adopt a marketing culture so as to further promote its consumer-centric strategy.
The clothing industry is very competitive and highly volatile; therefore, Zara should develop a competitive edge in order to grow and survive. Consumer centrism is an important feature that could benefit companies operating in the fashion industry since consumers as the most important stakeholders can enable the business to grow and become profitable.
Therefore, it is imperative to understand the value of the customer so as to be able to priorities their needs and bring about customer satisfaction. 1.0 Introduction Zara is a Spanish clothing retailer, established in1975 by Amancio Ortega, and focuses on manufacturing and selling products like the women and men accessories, shoes, clothes as well as cosmetic. The company is a flagship retail store in the Inditex group and seeks to promote fashion by offering more recent fashion economically. Zara’ s vertical integration of design, just-in-time (JIT) production strategy, flexible organizational structure, and innovation ability enable the company to focus on the demands of the customers (Lopez & Fan, 2009).
The company is located in Arteixo, Spain, and has over 9000 stores in 91 countries. The mission of the company is to sustainably contribute to society and environment development where it operates. Zara’ s vision is to dedicatedly satisfy customer needs through continuous innovation. Zara has numerous goals and objectives such as to operate eco-friendly stores and to save energy by cutting energy consumption by 20 percent.
Chan L L M, Shaffer M A, Snape E D 2007, ‘In search of sustained competitive advantage: The impact of organizational culture, competitive strategy and human resource management practices on firm performance’, The International Journal of Human Resource Management, Vol.15, No. 1, Pp.17-35.
Levin I M 2000, ‘Five windows into organization culture: An assessment framework and approach’, Organization Development Journal, Vol 18, No.1, Pp. 83-94.
Lopez, C., & Fan, Y. (2009). INTERNATIONALISATION OF SPANISH FASHION BRAND ZARA. Case Study, Brunel University, Uxbridge, London.
O’reilly C A, Chatman J, Caldwell D F 2003, ‘People and organizational culture: A profile comparison approach to assessing person-organization fit’, Academy of Management Journal, Vol. 34, No.3, Pp.487-516.
Zammuto R F, Gifford B, Goodman E A 2000, The handbook of organizational culture and climate, Thousand Oaks: Sage Publications.
Schrodt P 2009, ‘The relationship between organizational identification and organizational culture: Employee perceptions of culture and identification in a retail sales organization’, Communication Studies Journal, Pp.189-202.