What are the value and cost drivers of Zara?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Problem 1CE
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What are the value and cost drivers of Zara?
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Introduction
- Cost drivers are factors that influence the total cost of a product, service, or process.
- They are the underlying elements that contribute to the total cost of an activity or process, and they are used to identify the most significant drivers of cost so that organizations can take appropriate action to control or reduce costs.
- By carefully managing the cost drivers, Zara can reduce costs and increase profitability. This helps the company maintain its competitive edge and increase its value to stakeholders.
- Understanding the cost drivers allows Zara to make informed decisions about where to allocate resources and make investments. This helps the company stay ahead of the curve and remain relevant to customers.
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