The paper “ Zara’ s Growth, Financial Analysis, and SWOT Analysis” is a worthy example of the case study on business. Zara has become a renowned apparel brand in Spain with a brand known as Inditex worth £ 2.5 billion (Weidenbaum, 2007). The company has operations around the world. Its success presents instructive lessons on how to formulate and maintain a breakthrough approach. Zara has identified substantial diversities on consumers and distinguished itself from rivals by carrying out major activities, especially in the supply chain uniquely. This strategy has set challenges to business rivals making them fail to equal or mimic Zara’ s market positioning (Ton, Corsi, and Dessain, 2010).
This accomplishment has bestowed Zara protracted positioning and competitive differentiation. Nevertheless, this has not saved the company from facing several challenges, opportunities, and strengths. Financial AnalysisThe table below shows Zara’ s net sales, COG (Cost of Goods Sold), GP (Gross Profit), and Net Profit. These values are intended to increase every fiscal year (graph representation in the appendix). Table 1 year 2009 2010 2011 Ratio Net Sales (mn € ) 11084 12527 13793 COGS (mn € ) 4756 5105 5612 Gross Profit (mn € ) 6328 7422 8180 Net profit (mn € ) 1322 1741 1946 Zara’ s GrowthThe growth ratio helps to comprehend the general development of an organization (Cheng and Tsan, 2010).
Therefore, calculating growth at Zara involves taking figures of three consecutive fiscal years using the procedure given below. [Value of present year – the value of previous year] Growth (%) = ---------------------------------------------------------- X 100 Value of the previous yearThe table below indicates Zara’ s growth in sales, profits, assets, and debt. The growth in assets, profits, and sales should always increase positively to show that the organization is flourishing. Alternatively, the debt growth should remain negative because decreased debt growth increases the profits as indicated in the table below (graph representation in the appendix).
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