Zara Classical Management

This article makes up Chapter 1 of the free, open access book titled, Information Systems: A Manager's Guide to Harnessing Technology, by John Gallaugher. Please ensure that you read the entire Chapter 1 of the book consisting of 3 parts (Part 1 Introduction; Part 2 Don’t Guess, Gather Data; and Part 3 Moving Forward).

Classical organization theory evolved during the first half of this century. It represents the merger of scientific management, bureaucratic theory, and administrative theory.

Answer 1: Elements of the classical management approach are very evident at Zara International. The classical management approach contains three branches, which are scientific management, bureaucratic organization and administrative principles. Scientific management was expressed by selecting the workers with the right abilities for the job as well as time being the main factor instead of production costs and

Classical organizational theory supports two views. Scientific management which focuses on managing work and employees and administrative management which addresses issues which

There are several approaches to organizational management, the first includes formulating a plan, blueprint, or roadmap to make the intended function or process work, selecting a team needed to analyze the business or organization’s primary functions, and devise a matrix needed to manage the different roles, responsibilities, and positions within the business or organization. These approaches to organizational management are based on management theories, the assumptions that companies can control their future, and predict the outcome.

What is the Zara “business model”? How is it different from the business model of other large clothing retailers? What weaknesses, if any, do you see within this business model? Is it scalable?

The business idea of Zara is to link customer demand to manufacturing, and to link manufacturing to distribution. And based on this general idea, Zara has several essential elements for its business model. First, speed and decision making, which means that in the external level, Zara need to respond very quickly to demands of target customers, and always keep in style. While for the inside, Zara treasure intelligence and judgment of common employees who enjoy a great deal of autonomy. Second, its marketing, merchandising and advertising strategy. Zara does not spend on virtually advertising, while it spends heavily on stores, and no selling online because of

The classical or traditional approach to management was generally concerned with the structure and the activities of formal organization. The utmost importance in the achievement of an effective organization were seen to be the issues such as the establishment of a hierarchy of authority, the division of work, and the span of control.

This theory was made possible when Inditex accomplished correlating situational demands to a certain management style. The tactic for Zara is to interact with its environment and transition suppliers into consumers and to create systems to keep track of time production as well as reporting of inventory.

Zara has inadvertently taken an operational approach to mitigating risk through having decentralised stand alone store systems that interact once a day with headquarters therefore requiring little protection and staff only having limited access and control over their part of the system, not a network of data (Austin and Darby,

The case study is upon on the resource based view. First, the firm resources were divided into three major parts: tangible resource, intangible resource and human resource as Grant suggested. The main body of the essay will also be divided into three parts according to the resource classification. Then, a VRIN test would be carried after listing different types of resources to inspect whether they are able to provide a sustainable competitive advantage for Zara. Finally, Zara’s dynamic capabilities will be discussed to state how Zara used the resources based on their organizational culture.

There are many Management Theorists who have devised ways in which a business can achieve success efficiently. The two management theorists that I am going to talk about are Fredrick Winslow Taylor and Max Weber, and I will also compare and contrast their contributions to the field of management. There are 4 main classical theories in management which are: 1. Scientific Management 2. Bureaucracy 3. Administrative Management 4. Human Relations. The two that I will be focusing on for this assignment are Scientific Management and Bureaucracy. Frederick Taylor (March 20th, 1856-March 21st, 1915) was an American Engineer. He sought to improve industrial efficiency in the workplace. The birth of Scientific Method is attributed to Taylor and his main

Zara uses vertical integration, in a vertical integration several stages of production and distribution of a commodity are influenced by a single company.

First, I will discuss the exemplary management theories that transpired around the twentieth century. These involve scientific management, which center of attraction was on associating per-sonnel and jobs to increase effectiveness; and administrative management, which center of atten-tion is on recognizing the principles that will impel to the beginning of the nearly adept structure of management and organization. Next, you have behavioral management theories which was estab-lished both prior and subsequently the Second World War, which spotlight was on supervisors should guide and supervise their personnel to optimize their effectiveness. Then you have man-agement science theory, which was current during the Second World War and which has evolved to be very

Amancio Ortega, had a simple idea of linking customer demand to manufacturing and manufacturing with distribution, when creating ZARA in 1975 in la Coruña, Spain Zara came under the holding company Inditex in the year 1985 and is today the biggest fashion brand of the group. Zara believes that the prime factors for running a successful business are quick response to customers, use of computers, and disintegrated decision-making (McAfee, Dessain, & Sjoman, 2007)