The current study highlights the core conceptualities of the managerial style of ZARA. in order to do that, the study elaborates the importance of the role of good leadership. In addition, the study maps the management theories associated with the managerial process of the mentioned organization. Ethical and diversity measures of the organization are elaborated in the current study. Discussion of these points is essential for pointing out an issue in the managerial system of ZARA. The study highlights the issue in organizational structure by critically evaluating the basis of multiple management theories. Along with this, the outline of methodology for qualitative methods is also discussed in the mentioned research. Apart from that, a critical explanation of organizational diversity and ethics is an integral part of this underlying study. The study delves into the finding based on the highlighted spectrums. Together with this, the research proves betterment suggestions and recommendations to mitigate the issue in organizational structure.
ZARA is one of the brightest names while considering the fashion retail business. The core motive of the organization is to provide consumers with trending and high-end fashion clothing and accessories. The organization has more than 2270 stores across the globe therefore, maintaining the brand name, as well as the customers base, is challenging. Apart from that, the organization is an active player in the oligopoly market and the number of competitors is also high. Still, ZARA manages to launch at least 20 clothing collections every year (Amarkhi, 2018). Selecting this organization not only helps in conducting the study but also highlights the example of superlative Brand Management Techniques.
The scholar has chosen the annual resorts of ZARA, academic journals as well as available statistical measures, therefore the study comes under the Secondary Qualitative research method. As per the deliberation of Sherif (2018), the core advantage of secondary analysis lies in the access to hard-to-connect participants. Data that is adequate for responding to the core purpose of a study is easily available. Apart from that, identification of existing challenges is considered in the secondary data sources. Cost-effectiveness, time-saving, and vitality of authentic research materials are the fundamental advantages of the Secondary Data collection method. Longitude; data regarding the managerial style of ZARA is extremely influential. Evaluating whether wights require to be used during the analytical process is cleared by the secondary analytical method. Accounting of stratification or clusters gathering data is essential for critical analysis. Therefore, the scholar has chosen the secondary data for this critical analytical purpose.
The management theory helps in evaluating the core aspect of a business model by assessing the fundamental issues. In order to do that, the study compares the role of Henri Fayol’s 5 management functions are considered (Dumez, 2018). This model possesses planning, organization, commanding, coordinating as well as controlling stages.
Figure: of Henri Fayol’s 5 management functions
(Source: Demonstrated by Learner)
While considering the business model of ZARA the organization operated in a centralized manner for the Spanish headquarters. Therefore, the most significant issues occur within the organizational structure. The business of ZARA is spread across the globe therefore, controlling the Australian processes from Spain becomes problematic. Apart from that, the demographic situations are different therefore, the same policies can not be applied to the different stores. The role of the managerial body as well as the requirement for adequate leadership is necessary for maintaining fluency in the organizational structure. The concept of Mintzberg’s managerial roles helps in assessing the core areas of requirements that need special attention. While concerning the organizational structure Interpersonal, Informational, and Decisional roles become most prominent (Canbek, 2020). Due to pandemic hit managing interprocess become problematic. ZARA has been following a lean organizational structure that has no presence of an International Disseminator or spokesperson. The operations are handled by managerial bodies only. However, in order to maintain a sustainable business, a separate international business management domain is required.
Figure: Mintzberg’s managerial roles
(Source: Self-Developed)
Apart from that, the missing position of Liaison and figurehead is also emerging as a critical issue. Liaison is required for maintaining developed networks outside the organization and figureheads perform social duties for the organization. However, the organization is performing these tasks with the help of a managerial basis only. While considering the Mintzbergs’s roles then these positions are required for an international business. As per the available statistics the business model of the brand has been inspiring since 2020. However, due to these missing roles, the total revenue has dropped from 10.56% growth to 4.67% while considering Group Zara Australia Pty Limited. Return on Revenue has increased from 3.9% to 4.5% which indicates the potential growth of the company. The gross sales have also decreased to approximately $222.36 million from 326.361 million USD. This happened due to a lack of communication as well as the monotonous organizational structure of ZARA (ibisworld.com, 2022). The requirement for interpersonal skills, technical enhancements in the organizational structure as well as the conceptual skill of managers are required while considering Stewart’s job dimensions. Demands created on managers, constraints placed on managerial bodies, as well as available choices of managers are limited. As well as the requirement for independent Disturbance Handler, Negotiator, and Resource allocator is also essential while conceding Mintzberg’s managerial roles. Too much pressure on the lean hierarchy is creating such problems.
In order to manage the administrative procedures organizations often incorporate the theory of Henri Fayol. As opined by Ramakrishna (2019), the management strategies delivered by Henri Fayol help in Managing the generic standards of a business. This administrative approach not only helps in the betterment of strategies but also helps in identifying the issues that a company is facing or may face in the future. Planning, Organization, controlling, and leading are the core parameters of the mentioned theory (Kamran & Neise, 2018). While the parameters are maintained a clear reflection of positive outcomes appears.
Figure: ZARA’s revenue
(Source: statista.com, 2022)
A proportional relationship between financial outcomes and the managerial process is elaborate in the mentioned theory. According to the available statistics, the number has faced a decline of 5268 million USD in the last 2 years (statista.com, 2022). However, COVID-19 left a significant effect on the organizational processes as well as the profitability index of ZARA. Therefore, the organization is facing issues in managing the business process. While considering organizational structure the most prominent issues are found in managing outlets out of the host country. Group Zara Australia Pty Limited has adopted various policies in order to maintain the productivity of the underlying employees. 1490 employees are working actively in the Sydney headquarters. , maintaining their leave policies, workforce management, workload maintenance, employee retention comes under the most significant aspect of Administrative management (ibisworld.com, 2022). As the main issue occurs in organization process management, therefore, theory of administrative management is prominent.
Contingency approach the organization focuses on the diversity of the organization itself, employees as well as situations. Managers require to learn a versatility of approaches in order to make the most appropriate decision. While considering the viewpoint Niemand et al., (2021), the contingency approaches are important for not only maintaining the decision-making criteria but also useful for sustaining the organizational structure. Under the guidance of a good leader as well as managerial body ZARA, Australia can increase the fluency in the organizational structure.
Ethical consideration and diversity play a great role in the organizational structure of an organization. The mentioned organization is a multi-national fashion retailer therefore, the organization has looked after these criteria. According to the deliberation of Lala (2018), in order to maintain the diversity and ethical considerations within an organization, the role of manager and leaders become essential. The mentioned organization has been following the Triple Bottom Line (TBL) framework for scaling up the ethical consideration (Zaharia & Zaharia, 2021). TBL refers to an accounting framework along with a significantly strong focus on the ethical behavior of an organization.
Apart from that, the overall performance of ZARA has been measured on the basis of the measured aspects. Together with that, ethics and diversity strive in order to make individuals of every socio-economic origin feel convenient within the mentioned organization. However, the issues in organizational structure may affect these policies of the mentioned organization (Tariq et al., 2021). While an organization is more likely to follow the ethical considerations then the productivity of the business increases. ZARA’s assessment of those criteria helps in attaining the profitability measures as well as maintaining a decent relationship with consumers.
|
? People |
Considering the working employees are important for maintaining the ethical standard of an organization. Therefore, ZARA provides on-time salary, a decent amount of leaves, supports employees in their time of need, and provides medical and educational facilities for maintaining social performance (Lenzi, 2018). ZARA has been promoting equal; opportunities irrespective of their nature, race, or gender. As per the current statistics, more than 76% of the employees are female and 81% are in managerial posts. ZARA has been promoting women’s empowerment since the very beginning (static.zara.net, 2022) |
|
? Profit |
For ensuring profitability the mentioned organization has been focusing on Abraham Maslow’s theory of human needs. As Opined by Genkova (2021), self-actualization, love/belonging, safety, and esteem these factors are marinated by the organizational structure of ZARA for maintaining a consumer base. This helps in delivering the right products to the consumers as well as creating demands. While the demand and supply chain is maintained the profitability measures are fixed. |
|
? Planet |
The considered brand has been manufacturing eco-friendly garments to maintain environmental sustainability measures. Zero waste products, closing loop, and green to pack concepts have been applied to the ZARA stores. These programs have been initiated for reducing the overall environmental impact by considering the end of the life cycle of ZARA products. Apart from that, Boosting renewable energies is considered as one of the most significant future plans. 81% of the stores are to be modified with eco-sustainable energy including headquarters, logistic hubs, and stores. As of now, 100% of ZARA stores are marked as Eco-efficient (static.zara.net, 2022) |
Table: TBL approach of ZARA
(Source: Create by Learner )
Ethics refers to the rules that concern moral values to guide decision-making by the managerial body and leader of an organization. In order to support that, the mentioned organization has been promoting diversity measures as well (McEwing, 2019). ZARA has been providing opportunities to women. Therefore, the organization is looking after diversification measures as well as promoting diversity into the organizational structure.
The organization has achieved the palace in global fashion retail marketing by incorporating various management theories into the existing business model. The brand releases at least 20 new fashion collections every year. Boeing, an active actor in the oligopoly market, has a significant number of rivals. Apart from that, many smaller organizations and domestic brands across the globe copy ZARA’s collections. In order to tackle that issue, the mentioned brand incorporates new changes in the organizational process frequently. Therefore, the most significant issue comes in maintaining the organization’s structure. Apart from that, profitability measures of ZARA heavily rely on outsourced manufacturing, trendsetting, however, most of the operational, strategic as well as inventory decisions are settled in Spanish headquarters. The organization has adopted centralized distribution policies therefore, managing stores and offices around the world has become problematic. Therefore, maintaining production, quality assurance, and store management are the most challenging factors while considering the organizational structure of ZARA. For identifying as well as mitigating the issues knowledge regarding scientific management, Administrative Management as well as Bureaucratic Management.
Figure: Core Findings
(Source: Created by Learner)
Apart from that, the core competence of the mentioned brand lies within the design and quality of the delivered products. In order to maintain that, the role of organizational structure is noteworthy. The mentioned organization has faced issues regarding technical systems, managerial systems as well as in managing value and norms.
Conclusion
The current study concludes the effective managerial process of Zara along with highlighting the issue in the organizational structure. The study also elaborated the user that applied Henri Fayol’s theory to the above context in order to provide as well as to identify the strategic decision that is taken by the management of ZARA. Recognition of the entire diversity of people, organizations, and their situations are identified in the above context. In addition to that, the managers are required to learn and understand multiple ranges of approaches such as knowledge and then select the decision making as the most proper thing for a situation where they can find themselves as a perception. The mentioned organization has been looking after Balance scorecards for maintaining consumers, increasing fluency in organizational structure and business process. Along with this, innovation and learning measures are also essential while considering financial success. The study includes Mintzberg’s managerial roles for determining the issues in the organizational structure of ZARA. The role of manager and leader is also highlighted in order to maintain the workability of the existing managerial structure. While the Contingency approach the organization focuses on the diversity of the organization itself, employees as well as situations.
References
Amarkhil, H. (2018). Brand management that creates value to customer: the case of Zara brand (Master’s thesis).
Canbek, M. (2020). Artificial Intelligence Leadership: Imitating Mintzberg’s Managerial Roles. In Business Management and Communication Perspectives in Industry 4.0 (pp. 173-187). IGI Global.
Dumez, H. (2018). Henri Fayol. Performativity of his ideas and oblivion of their creator.
Genkova, D.I.A.N.A., 2021. Modeling of the Human Needs: an Economic Interpretation of Maslow’s Theory of Motivation. WSEAS Transactions on Business and Economics, 18, pp.253-264.
ibisworld.com. (2022). Group Zara Australia Pty Limited – Australian Company Profile. Retrieved from: https://www.ibisworld.com/au/company/group-zara-australia-pty-limited/416898/
Kamran, Q., & Neise, R. (2018). Structure Does Not Follow Strategy-Structure Is The Strategy How Operational Excellence Through A Viable Organizational Structure Delivers The Fourth Generic Strategy In The Chartered Institute of Logistics and TransportManaging business for policy and integrated sustainable logistics operations-The 23rd Annual Conference of the Chartered Institute of Logistics and Transport, Logistics Research Network (LRN).
Lala, A. (2018). Fast fashion. Benetton and its main competitor inditex (zara).
Lenzi, F. R. (2018). Fast fashion: the globalization of dressing in postmodernity and the inditex (zara) case study francesca r. Lenzi.. Fashion through History: Costumes, Symbols, Communication (Volume II), 2, 306.
McEwing, F. (2019). A new environment. Ragtrader, (Aug 2019), 10-11.
Niemand, T., Rigtering, J. C., Kallmünzer, A., Kraus, S., & Maalaoui, A. (2021). Digitalization in the financial industry: A contingency approach of entrepreneurial orientation and strategic vision on digitalization. European Management Journal, 39(3), 317-326.
Ramakrishna, N. (2019). Henry fayol’s principles of management and it’s applicability in contract staffing. International Journal of Management, IT and Engineering, 9(3), 168-182.
Sherif, V. (2018, May). Evaluating preexisting qualitative research data for secondary analysis. In Forum: qualitative social research (Vol. 19, No. 2, pp. 26-42). Freie Universität Berlin.
static.zara.net. (2022). 2021_Inditex_Annual_Report.pdf. Retrieved fom:https://static.zara.net/static/joinlife/2020_Inditex_Annual_Report.pdf
statista.com. (2022). Zara’s brand value worldwide from 2016 to 2021. Retrieved from: https://www.statista.com/statistics/980126/brand-value-of-zara-worldwide/
Tariq, A., Sarwar, S., Tariq, S., Zameer, M., & Zara, A. (2021). Impact of Employees HR Perceptions on Organizational Commitment: A Mediating Role of Job Satisfaction and Perceived Organizational Support. Audit and Accounting Review, 1(2), 1-25.
Zaharia, R. M., & Zaharia, R. (2021). Triple Bottom Line. The Palgrave Handbook of Corporate Social Responsibility, 75-101.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download