What organization design aspects of Zara make it so succuccessful ?

Answers

Answer 1

Answer:

The secret to Zara’s success has largely being driven by its ability to keep up with rapidly changing fashion trends and showcase it in its collections with very little delay. From the very beginning, Zara found a significant gap in the market that few clothing brands had effectively addressed. This was to keep pace with latest fashion trends, but offer clothing collections that are a combination of high quality and yet, are affordable. The brand keeps a close watch on how fashion is changing and evolving every day across the world. Based on latest styles and trends, it creates new designs and puts them into stores in a week or two. In stark comparison, most other fashion brands would take close to six months to get new designs and collections into the market.

It is through this strategic ability of introducing new collections based on latest trends in a rapid manner that enabled Zara to beat other competitors. It quickly became the people’s favourite brand, especially with those who want to keep up with fashion trends. Founder Amancio Ortega is famously known for his views on clothes as a perishable commodity. According to him, people should love to use and wear clothes for a short while and then they should throw them away, just like yogurt, bread or fish, rather than store them in cupboards.

The media often quotes that the brand produces “freshly baked clothes”, which survive fashion trends for less than a month or two. Zara concentrates on three areas to effectively “bake” its fresh fashions:

Shorter lead times (and more fashionable clothes): Shorter lead times allow Zara to ensure that its stores stock clothes that customers want at that time (e.g. specific spring/ summer or autumn/ winter collections, recent trend that is catching up, sudden popularity of an item worn by a celebrity/ socialite/ actor/ actress, latest collection of a top designer etc.). While many retailers try to forecast what customers might buy months in the future, Zara moves in step with its customers and offers them what they want to buy at a given point in time.

Lower quantities (through scarce supply): By reducing the quantity manufactured for a particular style, Zara not only reduces its exposure to any single product but also creates artificial scarcity. Similar to the principle that applies to all fashion items (and more specifically luxury), the lesser the availability, the more desirable an object becomes. Another benefit of producing lower quantities is that if a style does not generate traction and suffers from poor sales, there is not a high volume to be disposed of. Zara only has two time-bound sales a year rather than constant markdowns, and it discounts a very small proportion of its products, approximately half compared to its competitors, which is a very impressive feat.

More styles: Rather than producing more quantities per style, Zara produces more styles, roughly 12,000 a year. Even if a style sells out very quickly, there are new styles waiting to take up the space. This means more choices and higher chance of getting it right with the consumer.

Zara only allows its designs to remain on the shop floor for three to four weeks. This practice pushes consumers to keep visiting the brand’s stores because if they were just a week late, all the clothes of a particular style or trend would be gone and replaced with a new trend. At the same time, this constant refreshing of the lines and styles carried by its stores also entices customers to visit its shops more frequently.

In the following sections, the key components of Zara’s winning formula in the fashion retailing industry are illustrated.

Explanation:


Related Questions

responsible for the overall performance of an organization or one of its
major self-contained subunits or divisions.*
General Manager
Functional Manager
Front-line Manager
СЕО

Answers

It is functional manager

which ethical principle reflects the idea that everyone is granted a moral norm of society

Answers

Individual right is the ethical principle that reflects the idea that everyone is granted a moral norm of society.

The three distinct types of ethical principles are:

UtilitarianismIndividual rights Distributive justice

Individual rights show the belief that everyone has entitlements that let him/her act in a certain way.

The individual rights principle includes more than legal rights; it also includes human rights that everyone is granted as a moral norm of society

Some of the individual rights are:

Freedom of movement,Physical security Freedom of speechFair trialFreedom from torture.

Therefore, the ethical principle that reflects the idea that everyone is granted a moral norm of society is Individual right.

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You are considering purchasing an office building for $2,500,000. You expect the potential gross income (PGI) in the first year to be $450,000; vacancy and collection losses to be 9 percent of PGI; and operating expenses and capital expenditures to be 38 percent and 4 percent, respectively, of effective gross income (EGI). What is the implied first-year overall capitalization rate

Answers

Based on the information given the implied first-year overall capitalization rate is 9.50%.

Vacancy and collection losses = 9% of  PGI

Vacancy and collection losses =$450,000×9%     Vacancy and collection losses=$40,500

Effective gross income (EGI)= PGI - vacancy and collection losses

Effective gross income (EGI)= 450,000 - 40,500

Effective gross income (EGI)=$409,500

Operating expenses= 38% of EGI

Operating expenses= 0.38 × 409,500

Operating expenses=$155,610

Net operating Income(NOI)= EGI - Operating expenses

Net operating Income(NOI)=$409,500 - $155,610

Net operating Income(NOI)= $253,890

Capital expenditure= 4% of EGI

Capital expenditure= 409,500×4%

Capital expenditure= $16,380

Adjusted Net Operating Income=Net operating Income - Capital expenditure

Adjusted Net Operating Income=$253,890 - $16,380

Adjusted Net Operating Income=$237,510

Implied overall capitalization rate = Adjusted Net operating income ÷ Value of property

Implied overall capitalization rate=$237,510 ÷$2,500,000

Implied overall capitalization rate=9.50%

Inconclusion the implied first-year overall capitalization rate is 9.50%.

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Grand Thornton's print ad states, "If you have a passion for accounting and want to work with others who share that passion, you might be interested in the Grant Thornton accounting firm." This ad is an example of

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The printed ads of Grand Thornton is an example of corporate image advertising.

Basically, a corporate image advertising is a form of advertisement done when the firm promotes itself in order to

portray positive perceptionincrease its brand awarenessappear relevant.

In conclusion, the printed ads of Grand Thornton is an example of corporate image advertising.

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buying Fisher Industries, which has earnings per share of $1.50, 3.5 million shares outstanding, and a share price of $15. Brutus will pay for Fisher by issuing new shares. There are no expected synergies from the transaction. If Brutus pays no premium to acquire Fisher, what will the earnings per share be after the merger

Answers

If Brutus buys Fisher with new shares and with no premium, the new earnings per share after the merger would be $2.94

Brutus currently has 5 million shares which are valued at $32 for a total worth of:

= 5 x 32

= $160,000,000

Fisher has 3.5 million shares valued at $1.50 for a total worth of:

= 1.5 x 3.5

= $5,250,000

The shares to be issued can be found as:

= Share price of Fisher / Share price of Brutus x Fisher shares

= 15 / 32 x 3.5 million shares

= 1,640,625 shares

The total number of shares are now:

= Brutus shares + Shares issued to acquire Fisher

= 5 million + 1,640,625

= 6,640,625 shares

The new EPS would be:

= (Earnings of Brutus + Earnings of Fisher) / Number of shares

= ( (3 x 5 million) + (1.50 x 3.5 million)) / 6,640,625

= $2.94 per share

In conclusion, the new EPS is $2.94

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Knapp Industries began business on January 1, 2018 by issuing all of its 1,550,000 authorized shares of its $1 par value common stock for $30 per share. On June 30, Knapp declared a cash dividend of $1.25 per share to stockholders of record on July 31. Knapp paid the cash dividend on August 30. On November 1, Knapp reacquired 310,000 of its own shares of stock for $35 per share. On December 22, Knapp resold 155,000 of these shares for $41 per share.

Required:
a. Prepare all of the necessary journal entries to record the events described above.
b. Prepare the stockholders' equity section of the balance sheet as of December 31, 2018 assuming that the net income for the year was $8,000,000

Answers


Journal Entries- Knapp
Date Accoutn Tittle Debit Credit
1-Jan Cash (1550000*35) $54,250,000.00
Common Stock (1550000*1) $1,550,000.00
Additional Paid in Capital - CommonS tock $52,700,000.00
30-Jun Retained Earning $1,937,500.00
Dividend Payable ( 1.25*1550000) $1,937,500.00
30-Aug Dividend Payable $1,937,500.00
Cash $1,937,500.00
1-Nov Treasury Stock $10,850,000.00
Cash (310000*35) $10,850,000.00
22-Dec Cash (155000*41) $6,355,000.00
Treasury Stock (155000*35) $5,425,000.00
Additional Paid in Capital - Treasury Stock $930,000.00
Stockholder Equity Section
Common Stock $1,550,000.00
Additional Paid in Capital - CommonS tock $52,700,000.00
Additional Paid in Capital - Treasury Stock $930,000.00
Retained Earning (8000000-1937500) $6,062,500.00
Less: Treasury Stock (10850000-5425000) -$5,425,000.00
Total Stockholder Equity $55,817,500.00

Product DGH has a monthly demand of 5,000 units. Its contribution margin is $18 per unit and $36 per direct labor hour. Product RBG has a monthly demand of 4,000 units. It's contribution margin is $15 per unit and $60 per direct labor hour. If the company only has 1,500 direct labor hours available, the company should produce _______________ units of Product DGH _____________ and units of Product RBG.

Answers

A) 1,000

The remaining 500 hours can be used to make 1,000 units of DGH (36/18 = 2 units per hour X 500 hours left of the 1,500

B) 4,000

RBG has the highest CM per hour and requires 1,000 hours to meet demand. (60/15 = 4) 4,000/4 = 1,000 1,500-1,000 = 500

Following year five, you estimate that CCM's free cash flows will grow at 5% per year and that CCM's weighted average cost of capital is 13%. If CCM has $200 million of debt and 8 million shares of stock outstanding, then the share price for CCM is closest to:

Answers

The Share Price is $24.45 per share.

FCF = [FCF1 / (1 + r)] + [FCF2 / (1 + r)^2] + [FCF3 / (1 + r)^3] + [FCF4 / (1 + r)^4] + [FCF5 / (1 + r)^5] + [{FCF5 * (1 + g)} / {(r - g)*(1 + r)^5}]

FCF = [25 / (1 + 0.13)] + [28 / (1 + 0.13)^2] + [32 / (1 + 0.13)^3] + [37 / (1 + 0.13)^4] + [40 / (1 + 0.13)^5] + [{40 * (1 + 0.05)} / {(0.13 - 0.05) * (1 + 0.13)^5}]

FCF = 22.13 + 21.93 + 22.18 + 22.69 + 21.71 + 284.95

FCF = $395.58 million

Value of Equity = Value of Firm - Value of Debt

Value of Equity = $395.58 million - $200 million

Value of Equity = $195.58 million

Share Price = Value of Equity / No. of shares outstanding

Share Price = $195.58 million / 8 million

Share Price = $24.45 per share

Thus, the Share Price is $24.45 per share.

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HELP

Supply curves shift to the right when a product can be made more cheaply and sold at a similar or higher cost. which of the following will cause this?

Answers

Answer:

A. A material price increase.

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Which of the following is one way business can be categorized ? A. By width B. By product C. By salary D. By demographic

Answers

Answer:

D; by demographic

demographic because of the society

explain why maximizing Production does not always maximize profit​

Answers

When the price to produce a product is higher than the income the product, makes, money is lost. Just how too little supply is dangerous to a company, so is too much. A balance between supply and demand is essential to maximize profit.

The best answer to both the flatness and horizon problems is Group of answer choices dark energy. the inflationary epoch. decoupling. the Steady State Theory. the GUT theory.

Answers

It should be noted that best answer to both the flatness and horizon problems is inflationary epoch.

The inflationary epoch van be regarded as the period in the evolution of the early universe, at this period there was an expansion.

According to inflation theory, the earth were recorded to experience great horizon problems and exponential expansion.

Therefore, inflationary epoch brings about both flatness and horizon problems

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A shop sells 20 hats per week at $10 each. When it increases the price to $12, the number of hats sold falls to 15 per week. We can conclude that: The elasticity of demand can be estimated as Answer

Answers

Answer:

Estimated as Elastic Demand

Explanation:

Elastic demand is where a change in price causes a significant change in demand, therefore 20 hats to 15 hats can be considered significant and we can conclude that it's elastic demand.

Find the tax on a home if the assessed value is $24,375 and the tax rate is $43.97 per $1,000

Answers

Answer:

1071.76875

Explanation:

24,375/1000=24.375

24.375x43.97=1071.76875

I dont know a thing about buisness but I like math so I hope this is correct

How old does a senator have to be?

Answers

Answer:

Article 58.- To be a senator, the same requirements are required as to be a deputy, except age, which will be 25 years old on the day of the election.

Explanation:

and i'm mexican

to be a senate you have to be at least thirty years old

define rent-seeking and show how it is related to elasticity​

Answers

Answer:

What Is Rent Seeking?

Rent seeking (or rent-seeking) is an economic concept that occurs when an entity seeks to gain added wealth without any reciprocal contribution of productivity. Typically, it revolves around government-funded social services and social service programs.

Key takeaways

Rent seeking is an economic concept that occurs when an entity seeks to gain wealth without any reciprocal contribution of productivity.The term rent in rent seeking is based on the economic definition of “rent,” which is defined as economic wealth obtained through shrewd or potentially manipulative use of resources.An example of rent seeking is when a company lobbies the government for grants, subsidies, or tariff protection.Rent seeking comes in many forms from lobbying or donating funds.For example, if you donate money but write it off on your taxes, it could be considered a form of rent seeking.

 

What type of business organization generates the most total sales? General partnership Corporation Sole proprietorship O Partnership O Cooperative Previous? ​

Answers

Answer:

d

Explanation:

The Corporation business organization generates the most total sales. Option B is correct

What is a  Corporation

Corporations generally generate the most total sales due to their scale and reach. They have the ability to raise funds publicly through the sale of stocks, which allows them to grow and expand more quickly than other types of business organizations.

In addition, corporations are typically larger in size and have greater resources, allowing them to generate higher sales volumes. They often operate across multiple markets and regions, both domestically and internationally, further contributing to their high total sales.

Hence option B corporation generates the most total sales

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Hayleah is a california cpa practicing in california. to renew her license in active status, hayleah must to meet the basic requirement of completing 80 hours of qualifying continuing professional education in the two-year period immediately preceding her license expiration. Her license expires on june 30, 20x7. Which of the following are specific requirements regarding continuing education that hayleah may or may not be covered by depending on the type of work that she performs?
A) Fraud continuing education requirement
B) Government auditing continuing education requirement
C) Accounting and auditing continuing education requirement
D) Hayleah may take all of her 80 hour requirement in any subjects that she chooses.
E) All of the above.Hayleah may take all of her 80 hour requirement in any subjects that she chooses

Answers

When performing work, there are specific requirements depending on which work Hayleah performs and these are B) Government auditing continuing education requirement

When dealing with governmental accounting:

There are certain rules that must be followed.The specific rules imposed are to ensure better management of tax payer funds.

As a result, when a California CPA is involved in governmental work, specific rules known as the government auditing continuing education requirements will most likely apply.

In conclusion, option B is correct.

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True or false?

Brad is not a huge fan of kids but loves to work with animals. The Early Childhood Development pathway of the Human Services cluster would be a good fit for Brad.

Question 15 options:

True


False

Answers

False because it said he wasn’t a big fan of kids

Give 3 sample of best practice, how airline can improve "Cost" efficiency?

Answers

It is called "cost efficiency" to the way in which a company, through specific commercial organization actions, manages to reduce the costs necessary to obtain a certain profit.

Thus, they seek to minimize the costs and operational losses of the company, with the aim of maximizing profits.

In this way, 3 ways in which an airline could increase its cost efficiency are:

fly to places with high demand, reducing presence in not so popular destinations. reduce the time on the ground for each plane, so that it generates money almost constantly. perform optimal maintenance on each plane, to avoid breakages.

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With all other economic forces held constant, an increase in labor productivity throughout the country implies
(1 point)
an increase in GDP due to an increase in labor hours
a decrease in GDP with labor hours held constant
an increase in GDP with labor hours held constant
a decrease in GDP due to an increase in labor hours

Answers

When there is an increase in labor productivity, we observe that there is an increase in GDP with labor hours held constant.

Labor productivity:

Is goods produced by labor within a certain period of time Increases when more goods are produced in that period

Labor productivity therefore relates to goods being produced when the labor hours are kept constant. An increase in labor productivity is good for GDP because it means that more goods are being produced.

In conclusion, increased labor productivity means increased GDP at constant labor hours.

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Here y'all!

1. an increase in GDP with labor hours held constant

2. A graphic designer attends a week-long seminar and learns advanced skills she can apply to her work.

3. the discovery of a way to improve software speed that increases employee productivity

4. discovering an inexpensive way to make steel

5. false since technological improvements can lead to certain jobs becoming obsolete

Your welcome ;)

1. What is the relationship between employment and education? Explain.​

Answers

Explanation:

I don't know sore

sorry broo plz.

the process by which companies get new customers, keep the customers they already have, and grow the bussiness by increasing their share of customers purchases is referred to as

Answers

Buisnesses and organisations are able to attract and retain valuable customers due to Customer relationship management (CRM)

Customer relationship management (CRM) is a process in which an organisation uses based on principles and guidelines to efficiently interact and cater to its customers.

Typically with the use of technology of CRM systems such as data analysis, Businesses are able to study and compile large and different amounts of information of their target customers.

This will enable them to effectively cater to their needs leading to improved sales yields and retainment of customers.  

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Help help help help help help help help

Answers

Answer:

Taxes

Explanation:

Answer:

answer is services. C one option

Free if I am voted brainiest and like!
Next time will be Moree than 50.... :)

Answers

Answer:

huh?

what?

is this fReEeE?

Nathen’s home office

Answers

Answer:

Today, the Chinese own Armour and the famous Smithfield hams, together with the most quintessential American brand of all: Nathan's Famous hot dogs, with its iconic annual eating contest. ... It remains the largest total acquisition of a U.S. company by the Chinese.

Explanation:

3. Evaluate a couple of local organizations (preferably your employer organization and another organization of your choice) in terms of its emphasis on the strategic operations objectives: cost, quality, delivery, speed and flexibility. Are all departments focused on the same objectives? What are the order winners and the order qualifiers?

Answers

It should be noted that the objectives of companies aren't thesame but rather, they're different.

The objectives of a company simply means the goals that a company wants to achieve. The objectives of companies aren't thesame but rather, they're different.

Companies focus in different objectives such as cost minimization, profit maximization, quality improvement, etc.

It should be noted that the order winners can be quality and cost while for the order qualifiers, this can be delivery and flexibility.

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Daisy is a director of Extraction Corporation. She opposes an offer to merge Extraction with Fill Inc. because she would lose her board position. Daisy is most likely liable for breach of

Answers

Considering the case about above, Daisy is most likely liable for breach duty of loyalty.

Daisy is been regarded as director of Extraction Corporation, which means she should be loyal to that office by following the protocol in performing tasks.

Duty of loyalty simply implies that individual should be loyal to his or her office by following the ethics of the organization.

Therefore, Daisy breached duty of loyalty because, of her opposition to merge the Extraction.

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Which business policy would most likely help a single parent family?

Answers

Work in restaurant like Mac and bohari

DeAnna is the supervisor for the engineering team at her company. A task comes down from her leadership to allocate funding by noon that day. She doesn't have time to discuss this with the team, so she allocates the money where she sees fit. What management approach does this best exemplify

Answers

Answer: the answer is authority rule

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