Management Problem Statement

Zara
Zara's innovative strategies of consumer needs out ways most competition, through its cheap pricing and
high quality the company has expanded to a phenomenal 88 countries. However, the company has only
succeeded due to its management strategies ensuring that there is always something happening, whether it
be the endless production or sales, the business is always pushing the envelope to become better. Whilst
this is impressive there are some worries concerning the increase in the consumer market from an
organisational function. Due to the ever-changing market, Zara's stock come in two shipments a week as
to not overstock on products not clicking with consumers. This may also cause the opposite, through an
undersupply of goods, preventing the business from having the efficiency it is known for. With the
market growing further through new countries it is hard to know whether Zara will be able to keep up
with the demand. In its immense growth, Zara has increased its supply chains in countries such as
Morocco and Vietnam, allowing the business to become more efficient with its production in terms of
cost efficiency. Zara is close to being overworked to the point where cost and efficiency are not
attainable. Thus, the business would not be able to maintain it miniature shipments, and in tern not
reaching customer needs.

Callum 1
Long
 Management Problem Statement

References
Conkright, T. A. (2015), Using the Four Functions of Management for Sustainable Employee
Engagement. Perf. Improv., 54: 15-21. doi:10.1002/pfi.21506

Royo‐Vela,, M., Casamassima, P., (2011), "The influence of belonging to virtual brand communities
on consumers' affective commitment, satisfaction and word‐of‐mouth advertising: The ZARA
case", Online Information Review, Vol. 35 Issue: 4, pp.517-542, https://doi-
org.libraryproxy.griffith.edu.au/10.1108/14684521111161918

M.van der Velden, N., G. Vogtländer, J.,(2017), Monetisation of external socio-economic costs of
industrial production: A social-LCA-based case of clothing production, Journal of Cleaner Production,
Volume 153, Pages 320-330, https://doi.org/10.1016/j.jclepro.2017.03.161.

Bunse, K., Vodicka, M., Schönsleben, P., Brülhart, M., O. Ernst F.,(2011), Integrating energy efficiency
performance in production management – gap analysis between industrial needs and scientific literature,
Journal of Cleaner Production, Volume 19, Issues 6–7,Pages 667-679,
https://doi.org/10.1016/j.jclepro.2010.11.011.

Liao, S., Wu, C., (2010), System perspective of knowledge management, organizational learning, and
organizational innovation, Expert Systems with Applications, Volume 37, Issue 2, Pages 1096-1103,
https://doi.org/10.1016/j.eswa.2009.06.109.

Callum 2
Long