...men/women Overall energy consumtion (Tj) Number of suppliers Social investment (in millions of euros) 5,527 483 82 109,512 20.5/79.5% 3,381 1,398 14 5,044 437 77 100,138 19.5/80.5% 3,230 1,337 11 Highlights Sales 13,793 12,527 9,435 10,407 11,048 10,000 7,500 15,000 12,500 5,000 2,500 0 2007 2008 2009 2010 2011 Sales by geographical Rest of Europe 45% Spain 25% America Asia and the rest of the 12% world 18% Net profit 2,500 1,946 1,741 1,258 1,262 1,322 2,000 1,500 1,000 500 0 2007 2008 2009 2010 2011 Number of employees 0 20,000 40,000 60,000 80,000 100,000 120,000 2011 2010 2009 2008 2007 79,517 109,512 100,138 92,301 89,112 Inditex´s Annual Report addresses its economic, social and environmental performance for the purposes of achieving the maximum transparency in its relationship with all its stakeholders annual report 2011 index 06 54 Letter from the Chairman | 08 Business model | 10 A look back over 2011 Customers Milestones for the year. International presence | 22 Suppliers | 70 Employees | 84 Retail formats. Zara. Pull&Bear. Shareholders. Economic Massimo Dutti. Bershka. Stradivarius. Osyho. Zara Home. Uterqüe. | 42 Community | 100 and financial report....
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...employees A nnual Report 2009 6 14 16 Global Reporting Initiative Indicators Letter from the Chairman Inditex business model 18 IP 53 IC 54 Inditex Commitment 163 Inditex Performance 20 26 28 46 Summary of 2009 financial year Milestones for the year Commercial concepts International presence 56 66 124 136 Customers, shareholders and society Corporate Social Responsibility Human Resources Environmental dimension 4 Inditex Annual Report 2009 164 LD 309 Legal Documentation 167 233 296 303 Economic and financial report Corporate governance report Activities Report Audit and Control Committee Activities Report Nomination And Remuneration Committee 308 Verification of the audit of GRI indicators 5 G lobal Reporting Initiative Indicators in 2002. Using this guide, Inditex With transparency as the fundamental principle in its relationship with society, Inditex has followed the Global Reporting Initiative indicators since it published its first Sustainability Report attempts to provide detailed, organised access to the information on its activity to all its stakeholders. Within the general indicators, specific indicators for the textile and footwear sector have been included, identified in the following way: Specific indicator for the sector Specific indicator comment for the sector 6 Inditex Annual Report 2009 Pages 14-15 267-273, 20-25 1. Strategy and analySiS 1.1 Statement from the most senior...
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...CASE STUDY : Multinational Outsourcing and CSR. Inditex: The worldwide outsourcing garment industry and social community development in Morocco “Intermón claims that pressures on foreign clothing suppliers are smothering employees. […] In Morocco, where Cortefiel, Inditex (Zara), Mango and Induyco (El Corte Inglés) manufacture their products, a Tangier based textile factory sold a pair of slacks to large Spanish retailers for 3.3 euros three years ago; today, the same item sells for 2 euros. Female factory workers work 12 to 16 hours a day during the high season, because orders from Spain demand six ‐ day delivery terms in order to suit shop window change schedules.” (El País Newspaper, “Mujeres en Aprietos”, 10 ‐ 02 ‐ 2004) towards process outsourcing that responded to its characteristic labor ‐ intensive production and current competitive pressures for cost reduction and flexibility. Sector companies had been forced to redesign their business strategies, focusing on performance measurement, new competence and skill development, product quality improvements and more strategically oriented human resources management. Yet, this new strategic focus entailed unprecedented risks, especially as regards labor practices, environmental care and unfair competition. As multinational companies embarked on this process, multilateral agencies and global NGOs had begun to look into and report on wrongful practices by large corporations...
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...Conduct and Responsible Practices Inditex Group July 2012 1 Index 1. Definition and goals of the Code of Conduct and Responsible Practices 2. Scope of application 3. General principles 4. Conduct and responsible practices committments 4.1. Compliance with applicable laws and internal regulations 4.2. Enforcement of agreements and conventions 4.3. Relationship with employees 4.4. Relationship with customers 4.5. Market practice 4.6. Relationship with suppliers 4.7. Relationship with public authorities and servants 4.8 Conflicts of interest 4.9 Exercice of other activities 4.10 Use of goods and services of the company 4.11 Confidentiality of information and personal data protection 4.12 Protection of intellectual and industrial property 4.13 Record of operations 4.14 Social and environmental commitment 5. Code Compliance and Committee of Ethics 6. Publicity of the Code 3 4 5 7 7 7 8 8 9 10 11 11 13 13 14 15 16 16 17 18 Schedule I: Global codes and commitments willingly undertaken by Inditex 19 Schedule II: Definitions 21 2 1. Definition and goals of the Code of Conduct and Responsible Practices Inditex’ s “Code of Conduct and Responsible Practices” (hereinafter, the “Code”) is the updated and consolidated version in a single document of two codes: the “Internal Code of Conduct” and the “Internal Guidelines for Responsible Practices”, which were approved by the Board of Directors of Inditex, S.A. in 2001 and 2006, respectively...
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...Zara’s supply chains and operations management | December 23 2013 | | | COVENTRY UNIVERSITY LONDON CAMPUS Student name: Ha Linh Tran Student ID: 4569196 Module title and code: 214LON Supply chain and Operations Management Tutor’s name: Dr Amanda Mao Assignment title: Zara’s supple chain and risks of management Date of submission: 23rd December 2013 Word count: 2169 CONTENTS Page 1. Introduction 2 2. Overview of Zara Corporation 2-3 3. Risk identification and assessment in Zara’s supply chain a. Supply chain and risks management definitions 3-5 b. Supply risks 6-8 c. Technology and facilities risks 8 d. Human rights and cooperate responsibility failures 9-12 4. Conclusion and Recommendation 13 5. References 1. Introduction Supply chains have expanded rapidly over the decades, with the aim to increase productivity, to lower costs and fulfill demands in emerging markets. The increasing complexity in a supply chain hinders visibility and consequently reduces one’s control over the process. Supply chain...
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...1.0 Introduction: Zara is the flagship chain store of Inditex group which is owned by Spanish tycoon Amancio Ortega. It’s a Spanish based company essentially known for its clothing and accessories which was founded in 1975 (Mo, 2015). Zara believes in following the fast fashion policy, unlike its competitors. The discipline in Zara’s supply chain management has played vital role in its success (Anonymous, 2005). Zara follows vertical integrated strategy where it has total control of number of business activities such as manufacturing, sourcing, and distribution and retail stores, it allows the organization to accomplish greater flexibility, less stock and fashion risk. The main object of this report is to analyse Zara’s current supply chain and to propose suggestions for their central distribution and alternate solutions for their logistics management costs and their labour cost. 2.0 Zara’s Supply Chain Management 3.1 Supply Chain: Zara is the biggest and most successful chain of Inditex, the design and production is situated in La Coruna in Spain. In order for Zara stores to be able to offer front line style at moderate costs requires the firm to apply a solid impact over the whole supply chain network which incorporates design, purchasing, production, distribution and retailing. Zara utilizes its quick supply chain management to offer the most recent style outlines accessible in stores only fifteen days after...
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...Do No tC op yo rP os t 9-604-081 REV: SEPTEMBER 6, 2007 ANDREW MCAFEE VINCENT DESSAIN ANDERS SJÖMAN Zara: IT for Fast Fashion On a beautiful August night in 2003, Xan Salgado Badás and Bruno Sánchez Ocampo settled into seats at their favorite tapas bar in the Spanish city of La Coruña, ordered pulpo gallego (octopus Galician style), and resumed their argument. Salgado was the head of IT for Inditex, a multinational clothing retailer and manufacturer headquartered in La Coruña (see Exhibit 1 for a map). He was Sánchez’s boss, although the two men had worked together for so long that their formal reporting relationship mattered little. It certainly did not keep Sánchez from disagreeing with every point Salgado made this evening as they discussed the point-of-sale (POS) terminals used by Zara, Inditex’s largest chain of stores. Sánchez was the technical lead for the POS system, so the matter was close to his heart. “It’s time to upgrade them,” said Salgado. “No, it’s not.” “Yes, it is. It’s risky to let them get so far behind current technology.” “No, it’s riskier to upgrade them just to ‘stay current.’ The software works fine now; we shouldn’t touch it.” “But it runs on DOS, which you know Microsoft doesn’t even support anymore.” 1 “And you know DOS hasn’t been supported for years now, and that hasn’t stopped us or hurt us,” Sánchez replied. “We have the right to keep using the operating system—where’s the problem?” “One problem is that the ...
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... the greater the demand for cheap products of its kind. — Georg Simmel, “Fashion” (1904) Inditex (Industria de Diseño Textil) of Spain, the owner of Zara and five other apparel retailing chains, continued a trajectory of rapid, profitable growth by posting net income of € 340 million on € revenues of € 3,250 million in its fiscal year 2001 (ending January 31, 2002). Inditex had had a heavily € oversubscribed Initial Public Offering in May 2001. Over the next 12 months, its stock price increased by nearly 50%—despite bearish stock market conditions—to push its market valuation to € 13.4 € billion. The high stock price made Inditex’s founder, Amancio Ortega, who had begun to work in the apparel trade as an errand boy half a century earlier, Spain’s richest man. However, it also implied a significant growth challenge. Based on one set of calculations, for example, 76% of the equity value implicit in Inditex’s stock price was based on expectations of future growth—higher than an estimated 69% for Wal-Mart or, for that matter, other high-performing retailers.1 The next section of this case briefly describes the structure of the global apparel chain, from producers to final customers. The section that follows profiles three of Inditex’s leading international competitors in apparel retailing: The Gap (U.S.), Hennes & Mauritz (Sweden), and Benetton (Italy). The rest of the case focuses on Inditex, particularly the business system and international expansion of the Zara chain that dominated...
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... the greater the demand for cheap products of its kind. — Georg Simmel, “Fashion” (1904) Inditex (Industria de Diseño Textil) of Spain, the owner of Zara and five other apparel retailing chains, continued a trajectory of rapid, profitable growth by posting net income of € 340 million on € revenues of € 3,250 million in its fiscal year 2001 (ending January 31, 2002). Inditex had had a heavily € oversubscribed Initial Public Offering in May 2001. Over the next 12 months, its stock price increased by nearly 50%—despite bearish stock market conditions—to push its market valuation to € 13.4 € billion. The high stock price made Inditex’s founder, Amancio Ortega, who had begun to work in the apparel trade as an errand boy half a century earlier, Spain’s richest man. However, it also implied a significant growth challenge. Based on one set of calculations, for example, 76% of the equity value implicit in Inditex’s stock price was based on expectations of future growth—higher than an estimated 69% for Wal-Mart or, for that matter, other high-performing retailers.1 The next section of this case briefly describes the structure of the global apparel chain, from producers to final customers. The section that follows profiles three of Inditex’s leading international competitors in apparel retailing: The Gap (U.S.), Hennes & Mauritz (Sweden), and Benetton (Italy). The rest of the case focuses on Inditex, particularly the business system and international expansion of the Zara chain that dominated...
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... the greater the demand for cheap products of its kind. — Georg Simmel, “Fashion” (1904) Inditex (Industria de Diseño Textil) of Spain, the owner of Zara and five other apparel retailing chains, continued a trajectory of rapid, profitable growth by posting net income of € 340 million on € revenues of € 3,250 million in its fiscal year 2001 (ending January 31, 2002). Inditex had had a heavily € oversubscribed Initial Public Offering in May 2001. Over the next 12 months, its stock price increased by nearly 50%—despite bearish stock market conditions—to push its market valuation to € 13.4 € billion. The high stock price made Inditex’s founder, Amancio Ortega, who had begun to work in the apparel trade as an errand boy half a century earlier, Spain’s richest man. However, it also implied a significant growth challenge. Based on one set of calculations, for example, 76% of the equity value implicit in Inditex’s stock price was based on expectations of future growth—higher than an estimated 69% for Wal-Mart or, for that matter, other high-performing retailers.1 The next section of this case briefly describes the structure of the global apparel chain, from producers to final customers. The section that follows profiles three of Inditex’s leading international competitors in apparel retailing: The Gap (U.S.), Hennes & Mauritz (Sweden), and Benetton (Italy). The rest of the case focuses on Inditex, particularly the business system and international expansion of the Zara chain that dominated...
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...money. Different brands will be launched according to the financial conditions of the consumer, this will capture maximum market. New export markets will be sort out and this will help in generating foreign exchange. Internet, catalogue, television, bill boards, radio, will be used as source of advertisements. Retail and wholesale markets will be the main target. Introduction: Introduction to Company: The global apparel market presently is a consumer-driven industry. Also,globalization and new technologies have allowed consumers to have more access tofashion and different varieties. As a result, consumers are changing, competition isfierce, and companies are evolving to meet these demands. Zara is the flagship chain store of Inditex Group owned by Spanish company tycoon Amancio Ortega, who also owns brands such as Massimo Dutti, Pull and Bear, Oysho, Uterqüe, Stradivarius and Bershka. The group is headquartered in A Coruña, Galicia, Spain, where the first Zara store opened in 1975. It is claimed that Zara needs just two weeks to develop a new product and get it to stores, compared with a six-month industry average, and launches around 10,000 new designs each year (ZARA, Business Week, 2006). Zara has resisted the industry-wide trend towards transferring fast fashion production to low-cost countries. Perhaps its most unusual strategy was its policy of zero advertising; the company preferred to invest a percentage of revenues in opening new stores instead. Zara...
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...poor, ship-building town of La Coruña in northern Spain seems an unlikely home to a techcharged innovator in the decidedly ungeeky fashion industry, but that’s where you’ll find “The Cube”, the gleaming, futuristic central command of the Inditex Corporation (Industrias de Diseno Textil), parent of game-changing clothes giant, Zara. The blend of technology-enabled strategy that Zara has unleashed seems to break all of the rules in the fashion industry. The firm shuns advertising, rarely runs sales, and in an industry where nearly every major player outsources manufacturing to low-cost countries, Zara is highly vertically integrated, keeping huge swaths of its production process in-house. These counterintuitive moves are part of a recipe for success that’s beating the pants off the competition, and it has turned the founder of Inditex, Amancio Ortega, into Spain’s wealthiest man and the world’s richest fashion executive. Zara’s operations are concentrated in La Coruña and Zaragoza, Spain. A sampling of the firm’s designs, and “The Cube”, as shown on the firm’s websites. The firm tripled in size between 1996 and 2000, then skyrocketed from $2.43 billion in 2001 to $13.6 billion in 2007. By August 2008, sales edged ahead of Gap, making Inditex the world’s largest fashion retailer1. While the firm supports eight brands, Zara is unquestionably the firm’s crown jewel and growth...
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...knowledge and sources of brand equity, brand awareness, brand image, and four stages of brand development. In addition to these, for me the most important topic was brand positioning which all covers segmentation, points of parity, points of difference, brand mantra, brand audits. Also, it is interesting to find out that how brands position themselves in a global market. Moreover, building brand equity through brand elements and marketing communication. ------------------------------------------------------------------------------------------------------- Pick a category basically dominated by 2 main brands. Evaluate the positioning of each brand -Who are the target markets? -What are their main POP and POD? -Have they defined their positioning correctly? -How might it be improved? As you all know, Zara and H&M are the largest international fashion companies. In Turkey as well, they are both popular and targeted most of the population. I believe these two brands dominate the sector of textile. They both catch attention most of the people with their stylish designs and range of products. Zara is a Spanish clothing and accessories retailer founded in 1975 which is a flagship chain store of the Inditex group. The mission of Zara is walking at the pace of society dressing ideas, trends and tastes that society itself has matured. Regarding to target market, it has a very broad target market because they do not define their target by segmenting ages and lifestyles but...
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...Table of Contents Introduction 2 Marketing Mix 3 Website Audit 6 Situational Analysis 9 PEST Analysis 12 Competitive Analysis 13 Segmentation 14 Targeting 16 Differentiation & Positioning 17 Communication Tools & Manufacturing Policy 18 Objectives 19 E-marketing Tactics (7 C’s) 20 E-Marketing Strategy 23 Action plan 25 Evaluation plan 26 References 28 Appendix 31 Task Allocation 32 Introduction Founded by Spanish retail group, Intidex, in mid-70, Zara is the flagship brand for the house. Zara is high-street fashion brand that is based on in terms of product quality, affordability, fashion trends and customer satisfaction. Zara's Unique Selling Proposition (USP) is to create or imitate the latest trends within a short two-week period. Intidex, (2010) High-fashion/low-cost brand message is really appreciated by customers all over the world. (Source: armschool.com) Marketing Mix The Marketing Mix, also known as the 4P’s of Marketing, is the combination of four elements: product, price, place, and promotion. (Hines & Bruce, Fashion Marketing) Product Zara produces high-fashion clothes for women, men, and children and sells it for the low cost. It has a rapid design changes. Zara offers more choices in more current fashions and it delivers merchandise to its stores twice a week. Small batch production leads to impulsive buying among customers and makes clothes scarcity. Shehzade, (2009) Zara is a remarkable for...
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...Annual report 2010/11 burberry An iconic british luxury brand established in 1856 leverages its rich heritage, proven strategies and talented team to assure sustainable, profitable growth on a global scale Contents 4 8 12 18 22 28 44 54 58 66 68 71 76 86 87 88 89 90 91 92 93 Financial highlights Chairman’s letter Chief Executive Officer’s letter Executive team Burberry Group overview Strategy Business and financial review Risk Corporate responsibility Board of Directors Directors’ Report Corporate governance Directors’ Remuneration Report Statement of directors’ responsibilities Independent auditors’ report to the members of Burberry Group plc Group income statement Group statement of comprehensive income Group balance sheet Group statement of changes in equity Group statement of cash flows Notes to the financial statements 133 Five year summary 135 Independent auditors’ report to the members of Burberry Group plc 136 Company balance sheet 137 Notes to the Company financial statements 141 Shareholder information 143 Executive team 1 FINANCIAL HIGHLIGHTS DELIVERING RECORD PROFITS Total revenue (Year to March) £1,501m 11 10 10* 09 08 07 0 1501 1,501 1,185 1,280 1,202 995 850 Retail revenue (Year to March) £962m 11 10 10* 09 08 07 0 962 962 710 749 630 484 410 Wholesale revenue (Year to March) £441m 11 10 10* 09 08 07 0 489 441 377 434 489 426 354 Revenue by channel in 2010/11 Retail 64% Wholesale 29% Licensing 7% ...
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