Zara Operations Management

Operations management is an area of business that is concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient and effective. It is the management of resources, the distribution of goods and services to customers, and the analysis of queue systems.

Operations Management in an organisation is repsonsible for managing and in making decisions concerning the activities that convert inputs into outputs , that is goods and services. This covers both short term actvities as well as longer term activities to meet strategic goals. Inputs can be the raw materaials need to manufacture goods such as furniture or the computers needed to create a service like online shopping site. Operation management’s role is to make decisions to improve how operation activities function, for example, to improve the final quality of the output or to change production methods to be more efficient in terms of cost and in time.

Operations management focuses on managing the processes of producing and distributing products and services. Operations activities often include product creation, development, production and distribution. It deals with all operations within the organization. Related activities include managing purchases, inventory control, quality control, storage, logistics and evaluations. The nature of how operations management is carried out in an organization depends very much on the nature of products or services in the organization, for example, retail, manufacturing, wholesale, etc.

While the model itself is often very easy to replicate, technology is essential to creating and enabling novel approaches to business that are defensibly different than rivals and which can be quite difficult for others to copy. The fashion market has changed considerably over the past few decades. Fashion products, which used to be an elite consumption product and now, are mass consumption market, are embodying what has been called “the democratisation process of fashion”. In the last years the fashion market has polarized. On the one hand there are producers and retailers of premium products on a high price level offering luxury products. On the other hand the low price young fashion producers, often foreign international operating chains like the Swedish chain H&M (Hennes & Mauritz), the Dutch chain C&A(Clemens and August ), the Spanish chains Mango and Zara or the American chain Gap. Zara is considered as an example of the relationship between technology and strategic positioning. Inditex describes Zara in this way: “Zara is a high fashion concept offering apparel, footwear and accessories for women men and children, from newborns to adults aged 45. Zara stores offer a compelling blend of fashion, quality and price offered in attractive stores in prime locations on premier commercial streets and in upscale shopping centers. The in-house design and production capabilities enable us to offer fresh designs at out Zara stores twice a week throughout the year. ”Zara’s target market is very broad because they do not define their target by segmenting ages and lifestyles as traditional retailers do. Its target market is a young, educated one that likes fashion and is sensitive to fashion. Today, people around the world through various communication devices have more access to information about fashion.

Introduction about Operation management: Operations management is an essential word or technique that is utilized to change over the inputs like materials, work, exclusive data, and so forth into yields like worth included items, administrations, products, and so on. The technique incorporates a determining, scope preparing, planning, overseeing inventories, guaranteeing quality, inspiring representatives, control of movement, and numerous more( Slack ,2001). At the end of the day, it is 'a field of study that spotlights on the viable arranging , booking, utilize, and control of an assembling or administration association through the investigation of ideas from configuration designing, modern building, and administration data frameworks, quality administration, generation administration, bookkeeping, and different capacities as the influence the operation (Vignali, C. (2001) .

Instituto de Empresa, Maria de Molina 12, 5°, Madrid 28006, Spain E-mails: angel.diaz@ie.edu; luis.solis@ie.edu Abstract Zara is a Spanish fashion manufacturer and retailer that has known swift success. Spaniards have become used to visiting Zara frequently, as there is always a new product. Zara launches 100 different collections every year, with over 11000 models, none lasting more than five weeks in production and with an average lead-time (design to store delivery) of four weeks. Inditex, the group to which the brand Zara belongs owns five brands with over 1000 stores in more than 30 countries. Although its global sales are still one sixth those of Gap, its

F. Manufacturing represents the core of internal operations of a company. No SCM policies can operate in isolation from the manufacturing activities. Manufacturing supports SCM in many ways like, reducing manufacturing lead times and supplying material closely matched to customer lot size and time requirements.

Thirdly, it is unique that Zara spends money on marketing, but concentrates on opening new stores instead. For their business model, Zara has a competitive advantage in areas of development, marketing, cost of production and IT infrastructure. Zara gives power to their store managers in deciding what to display and what to sell in the stores based on market research done by the headquarters. Then managers are able to order clothes to meet customer’s demand. For product development, managers need obtain the standardized information from the market or customer feedback by using a handheld device. Then send it back to headquarters for further market research. As a result, the headquarters can have a more effective plan for design and production. In reality, this allows Zara to produce around 11,000 new styles per year, while their competitors can only produce 3,000-4,000. Zara’s speed makes its product development outstanding from the market and it is important for future success. In the area of marketing, Zara only spends 0.3% of their total revenues for marketing expenses, while their competitors spend 3-4% on average. Moreover, Zara focuses on attracting customers by having a good choice of location for visibility marketing, store layout and the styles of product. For example, Zara has new styles of clothes every week and often not restocked, customers will then be attracted to visit the stores every week to

With annual growth of around 20 percent in both sales and number of stores, Zara was finding that strategy increasingly difficult to execute. Part of the Inditex group of fashion distributors, it currently has more than 1,100 stores in 68 countries. With so much volume flowing through the supply chain, the

Operations Management is concerned with the managing of resources and activities that produce and deliver goods and services

All operations manager are designers. Design in Operations management refers to the conceptual process by which customers' needs are satisfied through the use of a product or system, which derives from the physical

Operations management is the concept commonly considered and used in today’s competitive business organisations (Slack & Chambers, 2010). It includes complex management activities that are involved in organisations’ planning, controlling and other management functions. A few years back, organisations did not realise its significance in the business operations, but now, perception has been changed. Today, companies are more sensible and sensitive towards adopting effective operational management strategies. For instance, businesses are more dependent on the mailing services. Companies’ success is utterly dependent on effective communication. The more

Operations management looks at the operational end of a business in which the transformation of resources (raw materials) are converted into goods and services i.e. inputs becomes outputs while management deals with the planning, monitoring and implementing of the various resources turned into goods and services for continuous improvement (Schonberger & Knod 1991).

Operations management is the organizing and controlling of the fundamental business activity of providing goods and services to customers (Encarta, 2005). Depending on the type of industry will determine the type of operations management will be focussing on providing a service or products. An organization has three basic functions, such as: finance, marketing, and operations. Since the operations is one of the three basic functions of an organization it has a large impact in industries that provide services. This paper will explain what operations management means, and why is operations management important to organizations. I will then go over product and service design, life cycle assessment, and how to maintain and increase products and services. The purpose of this process is to ensure satisfaction to customers as efficiently as possible.

Operation management is how the organization create and deliver services and products. In a simple word operation means is process or activities . every thing see around has produced by doing operation such as chairs ,car. The core function of operation management is three function .There are marketing function , the operation management function and products and services development function . essay I want to explain about the role of the marketing function and the operation management function of an organization and also about actual quality, customers' expectation , customer satisfaction and dissatisfaction .And finally I will explain about the important of coordination between the two business function.