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Zara is a fast-fashion company from Spain. Although the Spanish economy has crumbled, Zara is a rare success story. Fashion is highly perishable, quickly influenced by the latest thing seen on the catwalk or on the back of a celebrity. Zara’s designers follow such fashion trends closely, but whereas a typical clothing company manufacturing in Asia could take six to nine months to get a new design into the shops, Zara completes the process in around five weeks. It buys some garments and material from Asia, often partly finished or undyed, but approximately half of its clothing is manufactured in-house at its base in La Coruña in northwest Spain or by a cluster of small contractors in the same area. The clothing is delivered by truck to Europe and by air to the stores Zara is now opening in other parts of the world. Zara avoids mass production. Although some stock is replenished, its clothing, for both men and women, is deliberately made in small batches, which helps create a scarcity value: buy now in case it is gone tomorrow. It also keeps shops looking fresh and reduces markdowns. At Zara, the number of items that end up in a sale is about half the industry average.
Operation strategy needs to be aligned with overall business strategy. Discuss how Zara should develop its business and operational strategy. Highlight some important characteristics and issues that Zara should take into consideration when formulating its business strategy and operational strategy.
Biff Enterprises, Inc. reports the following information: 2009 2010 2011 Units sold 20,000 20,000 20,000 Units produced 20,000 24,000 16,000 Fixed production costs $1,200,000 $1,200,000 $1,200,000 Variable production costs per unit $ 200 $ 200 $ 200 ..
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Why should an organization operate in an ethical and socially responsible manner?
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Melski was an African American female, age 42, truck driver with a large shipping company. She was subjected to racial remarks and was constantly the topic of rude jokes with sexual innuendos. Also, she was playfully called "old lady". Discuss all t..
Analyze how mobility differs in organizations with innovative career paths. Support your position with evidence or examples.
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