Case Study of Zara: A Better Fashion Business Model

Zara is one of the most well known brands in the world and is also one of the largest international fashion companies. They are the third largest brand in the garment industry and are a unit of Inditex. It their flagship range of chain stores and are headquartered in Spain. Zara opened its first outlet in Spain in 1975. The headquarters of the company is based in Galicia. There are more than 2600 stores across 73 countries in the world. The Zara clothing line accounts for a huge bulk of its parent group’s revenues. There are other clothing brands owned by Inditex such as Kiddy´s Class (children’s fashion), Pull and Bear (youth casual clothes), Massimo Dutti (quality and conventional fashion), Bershka (avant-garde clothing), Stradivarius (trendy garments for young woman), Oysho (undergarment chain) and Zara Home (household textiles). Inditex owns all Zara outlets except for places where they are not allowed ownership of stores (that’s where Franchises step in).

Zara is renowned for coming up with products on a short timescale instead of taking forever. They are known for taking around 2 weeks to develop products and have been known to come up with around 10,000 new designs every year (which is an industry record). They have bucked the trend by making productions in Europe instead of shifting their entire production to Third World or Developing countries. However some of their clothes are manufactured in parts of Asia due to the fact that they have a longer shelf life. They make most of their own products inside Spain or other European Countries as they own a large number of factories in both Spain and Portugal.… Read the rest

Risk Management Within an Organization

Risk management is a identification process of upcoming threats and danger to an organization. In an organization risk can enter through many ways, it can come from project failure, financial market, an accident in organisation such as flood, earthquake, cyclone, power failure, public health and safety and legal risk etc. Risk can be low to medium, or medium to high. It is difficult to say that an organisation can solve all the upcoming risks to the organisation like earthquake, we can just assume that earthquake can damage the business, but we cannot say how much, but there are some alternatives of upcoming threats like in power failure we can use generator to keep running the business.

The purpose of risk management within an organization to identify problems before they enter and create problems in the organisation, so that risk management handling process may be planed. It is a continuous looking ahead process so it is an important part of a business. Early detection of risk is important because it is easier, not much expensive, and changes can made easily in the planned process. It is easy to maintain a strategy and solve the risks when they are in early stage. A successful manager can monitor risks before they create problems in a business. The lack of information can is dangerous in a business so the staff of the organisation should be well training so that they can assume the risk when it is in early stage and report to the management as soon as possible.… Read the rest

Case Study: Merger Between US Airways and American Airlines

On December 9th, 2013 the two airlines, US Airways and American Airlines merged to form the American Airline Group that turn out to be the major airline in the world. This merger was structured by the enlarged competition that airlines are countenancing in the business at present. The merger offered a prospect for both airlines to make use of the benefits of an extensive network that would effect subsequent to merging as countered to when each one operates separately. One of the foremost circumstances that encircled the merger was the imminent insolvency of American Airlines. The company in 2011 had filed for bankruptcy even though it relapsed to profitability the same year in July. The merger would enhance admission to opportunities of business for both airlines, particularly American Airlines that would decrease its coverage to financial risks, which were the preliminary grounds for the corporation filing for bankruptcy. The merger would generate enhanced synergies that would be apparent in the course of increased flexibility and financial strength in the market.

Each of the entities merged would have admission to further destinations and bigger clientele. Each of them would admission to a bigger destinations network i.e. 300 destinations all around the world. They as well had a code share contract where customers would impeccably book their flights from any US Airways or American Airlines networks. Such controls are an enhancement to each of the airline’s ability and results to bigger business and performance.

There are a variety of positive traits of this merger.… Read the rest

Case Study: Success Story of Google Search Engine

One of the most popular search engines is Google. Unknown to many, the term is coined by Milton Sirotta, the nephew of Edward Kasner who is an American Mathematician. The term is in reference with the number which is represented by the number 1 followed by 100 zeros. The same utilization of the term reflects the mission of the company to deliver immense and infinite resources to be available online.

The founders of the company, Larry Page and Sergey Brin, were not in good terms back then when they met as graduate students of computer science in Stanford University in 1995. They used to argue on everything that they are discussing. The strong personalities always clashed. But eventually, they have found a common ground. The retrieving of various yet important information from massive set data has been the big challenge that they were up to at that time. So, on January 0f 1996, they began the collaboration of BackRub, the name they have formulated because of the unique approach to back links to a given website. Larry procured the use of low-end PCs instead of the big yet very expensive machines. After a year, the news about the newest search engine spread around the campus. Then, they began to search for the perfection of their technology. They were encouraged to put up their service of a search engine company by themselves.

They talked to Andy Bechtolsheim, one of the founders of the Sun Microsystems, after the demo, he thought that Google has a lot of potential so he decided to lend them $100,000.… Read the rest

Case Study: The Decline and Fall of General Motors

Failure to innovate is the key reason to the downfall of Old General Motors. Innovation is the process whereby the management team of an organization is charged with the responsibility of introducing something new, which might be a new idea or a methodology or rather, a contrivance to facilitate the operational concerns and production. The Old General Motors failed with innovations in the company. These innovations were needed to ensure that the Old GM able remains competitive, and the company was able to manufacture cars that are in line with the client’s demands. This is related to the Old GM’ field of business to ensure that the organization do continue to produce the respective consumer centered product. The manufacturing industry such as the General Motors, innovation ensure that the output they deliver to the consumer do meet their needs, and expectations in a way that is realistic and makes their product to have a preference by the consumers against other same need satisfying product.

The fall of the Old General motors’ in this context was initially by the lack of personal innovation. The Organizational management was desperate for people who could see things in a different perspective. This would quickly size up the problems and come up with creative solutions to pinch the organization was facing. The failure of the “Old GM” to innovate made the organization less indispensable to consumers of the company products and other key personalities, who preferred the company output. This was both in the organization and outside its walls.… Read the rest

Case Study: Nissan’s Successful Turnaround Under Carlos Ghosn

Nissan is a famous automobile manufacturing company which was founded in 1933. After the Second World War, Nissan expanded its operations globally. Nissan was very well known for its advanced engineering and technology, plant productivity and quality management. However, during the previous decade, Nissan management has emphasized on short-term market share growth, instead of profitability or long-term strategic success. Nissan’s designs had not reflected customer opinion. In addition, Nissan managers tended to put retained earnings into keiretsu investing (equity of suppliers), rather than reinvesting in new product designs as other competitors did. These inappropriate strategies combining with the Asian crisis influence on a devaluation of the yen led Nissan to the edge of bankruptcy. Nissan was in need of a strategic partner that could lend both financing and new management ideas to foster a turnaround. Furthermore, Nissan sought to expand into other regions where it had less presence. In order to turn around as soon as possible, Nissan found an opportunity and created a strategic alliance with Renault who was also looking for a partner to reduce its dependence on the European market and enhance its global position.

In 1999 Nissan was incurring losses in seven of the prior eight years, which led to the hiring of a new CEO, Carlos Ghosn, being the first non Japanese CEO, had to face a huge culture clash (French-Japanese) so that he could be able to redefine the company’s structure to ultimately enhance its performance in a maximum period of two years. Although he intensively addressed cultural issues, taking under consideration the specifications about Japanese culture norms, he also incurred few risky decisions that could have worked against the process, risking the employee’s engagement process.… Read the rest