...Zara: Fast Fashion 1. + 2. Zara’s business and operating model is focused on speed and the need for fast fashion, I think a word that would classify it is mass customisation. It is targeted at young fashion and price conscious urban dwellers and is built on a vertically integrated system focussed on demand and supply. Zara is constantly updating its design and production base to deliver exactly what the client wants based on their buying habits and the latest trends. They have limited outsourcing and produce almost everything all in house. Zara is very close to its customers and provides them exactly with what they want, making Zara sell a trend value proposition at affordable prices. They can achieve this because of their integrated verticle supply chain; production time of a new product (estimated at under 5 weeks) and re-production and delivery of an existing product (estimated at under 2 weeks). Following this brief introduction it would be best to compare Inditex’s financial results with H&M as they are competing in very much the same markets and although their products and value chains are different their target consumer has the most overlap. Also GAP and to a lesser extent Benetton do not follow the fashion precisely but predict and produce in advance in bulk. Inditex despite being present in 39 countries, compared to H&Ms 14, and having over 50% more stores than H&M, they still manage to have considerably lower operating expenses. Their operating expense...
Words: 1966 - Pages: 8
...• Chapter 9: Regional Economic Integration o Regional Integration and Economic Blocs • Under regional economic integration, groups of countries form alliances to promote free trade, cross-national investment, and other mutual goals. • This integration results from regional economic integration blocs (or economic blocs), in which member countries agree to eliminate tariffs and other restrictions on the cross-national flow of products, services, capital, and, in more advanced stages, labor within the bloc. • At minimum, the countries in an economic bloc become parties to a free trade agreement, which eliminates tariffs, quotas, and other trade barriers. o Levels of Regional Integration • For countries that become members of an economic bloc, there are various stages of regional integration. • First is the free trade area, which eliminates tariffs and other trade barriers. • Second is the customs union, a free trade area in which common trade barriers are imposed on nonmember countries. • Third is the common market, a customs union in which factors of production move freely among the members. • Fourth is the economic union, a common market in which some important economic policies are harmonized among the member states. • A true political union does not yet exist. o The Leading Economic Blocs • There are hundreds of economic integration agreements in the world. • The European Union (EU) is the most advanced, comprising twenty-seven countries in Europe. • It...
Words: 1252 - Pages: 6
...results. Strategy formation is the process by which an organization develops and implements a strategy. All steps of the process should be followed in order because they build upon each other. The other steps of the process include value assessment, vision and mission formulation, strategy design, performance audit analysis, action plan development, contingency planning and implementation. 5.1 Integration Strategies In the competitive world of business, companies generally do whatever it takes to secure their stature in the marketplace. One of the most effective means to this end involves what is referred to as vertical integration, which takes on two forms: forward and backward integration. Forward integration focuses on the manner in which a company oversees its product distribution. On the other hand, the backward form concentrates on how a company regulates its goods or supplies. 5.1.1 Forward integration Forward integration is a type of vertical integration which a supplier acquires a manufacturer or a manufacturer acquires a distributor. Businesses engage in forward integration either to generate a higher margin from a key input which it owns or produces or to better market its products and increase its profitability. Dr. Gerhard Bester, an Agricultural Research and Development Director, our aim is to ensure PepsiCo has continued access to the key agricultural raw materials necessary to supply growing consumer needs, while respecting the environment and communities...
Words: 1605 - Pages: 7
...- Lessons in Post-Merger Integration - Jan Daniel Laufhütte 2304958 Individual Written Case Study Report in Strategic Management IHS-3-422 London South Bank University 17/12/2003 Table of Contents List of Figures................................................................................. i Introduction ................................................................................... 1 1. The changing world automobile industry .............................. 1 2. Reasons for mergers and acquisitions .................................. 3 2.1. 2.2. Daimler-Benzs’ motives..................................................................... 3 Chryslers’ motives ............................................................................. 5 3. The Post-Merger Integration Structure................................... 7 3.1. 3.2. 3.3. Preparations for the merger .............................................................. 7 Integration Structure of DaimlerChrysler......................................... 7 Expected Synergies ........................................................................... 8 4. Cultural Issues ......................................................................... 9 4.1. 4.2. 4.3. Daimler-Benz’s Culture...................................................................... 9 Chrysler’s Culture ............................................................................ 10 Key Integration Problems and Post-Merger Business Culture ....
Words: 3210 - Pages: 13
...JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY [pic] UNIT: PROJECT UNIT CODE: BIT 2303 COURSE: BSC INFORMATION TECHOLOGY NAME: OKOTH DORINE ATIENO JKUAT NO: BIT- 008- 0345/2006 PROJECT TITLE: KASARANI SPORTS CLUB DECLARATION I declare that this project is my own idea and my own work. It has not been presented by any other person before and has been developed through my own creation, time and effort. No one else is authorized to use it without my permission. Name: ………………………………… Signature: ……………………………… Date: ……………………………… ACKNOWLEDGEMENT I would like to express my special gratitude first and foremost to God Almighty for giving me his guidance, grace, wisdom, strength and help throughout the project. Next, I would also like to thank my parents and family for their financial and moral support. I would also like to thank my friends and colleagues especially Mary Mutuku and Frank Omondi for their support throughout the project. I would also like to express my sincere gratitude to the staff at Kasarani Sports Club without whom this project would not have been possible. DEDICATION I dedicate my project to my parents for their love and support, and to my brothers and sisters for the support TABLE OF CONTENTS ...
Words: 7663 - Pages: 31
...for the unexpected. As the old saying goes, “It’s better to be safe than sorry.” Another thing to consider is ordering in bulk. Ordering in bulk is great for items that doesn’t spoil quickly or doesn’t change very often. Also the unit price for the item decreases due to the high quantity of items ordered. Without having a good knowledge of the operations, a business would be hard to function or possibly inoperable. Special decisions are something to be considered from the start of opening to 5 years into the business. Whether you decide to purchase insurance allows to company to be ready for crisis. If an accident happens, insurance will help you pay for most of the damages instead you paying directly out the business account. Vertical integration and diversification is another decision to contemplate on. It may be cheaper to make complimentary items at your own workplace rather than outsourcing to another vendor. Also keeping up with the latest trends of the consumer world. If a business doesn’t offer what is popular with the market, a business may not last to long. Giving a survey to customers allows the business to understand what the customer wants. Many customers can give their opinion on how they would liked to be served, then a business can decide on how they can complete their request. If your business becomes a huge success, a decision on expanding the business may be considered to meet the demand. Special decisions always come up in the business world, whether they are...
Words: 312 - Pages: 2
...How useful are theories of integration to understanding the development of the European Union? BY IRABOR PETER ODION 07037830536 p24real2000@yahoo.com. “There is no historical precedent for the creation of a multinational, multicultural, and multilingual federation of states with mature social, economic, political and legal systems. In this regard the EU is a colossal and original enterprise.” From the beginnings of its development, there have many causes for the development of what is now the European Union (EU). This essay examines theories of integration and evaluates their validity in explaining the development of the EU. Then, by scrutinising these theories, this essay will seek to establish which, if any provide a comprehensive explanation for the development of the EU. Theories of integration offer explanations of how and why supranational governance has developed. Whilst there are undoubtedly many different causes and factors which have contributed to the development of the EU, this essay primarily focuses on neo-functionalism and intergovernmentalism as well as some new theories of integration which seek to explain the development. Although federalist and functionalist...
Words: 2070 - Pages: 9
...ECCO Case Study - Question 1 ECCO has a fully integrated vertical value chain. What are the pros and cons of that strategy? What economic and strategic factors should be analyzed to answer this question? The pros of a having a fully integrated vertical supply chain for Ecco include the following: * Improved supply chain coordination between tanning, manufacturing and distribution. This would ultimately help maintain quality and improve operational efficiencies such as logistics. * There is also an increase in the areas possible for differentiation, as Ecco can control more inputs. An example might be in the tanning process, in which their competitors may have less control over. * Ecco can also create greater barriers of entry for competitors. By differentiating competition out of the market such as marketing their strict in house controls of the tanning process. * Ecco can also access downstream distribution channels that may otherwise have been inaccessible if they were to just sub out distribution and be at mercy to what the market can provide. * Opportunities for control over investment or innovation both upstream or downstream which may otherwise not be possible will be advantageous for Ecco. * Facilities in different countries can take advantage of local resources and expertise in different areas like the leather research center in Denmark. * Overseeing operations throughout the whole value chain. * Better control and...
Words: 1264 - Pages: 6
...treated with strict confidence. 1. The government of Kenya introduced the e-government program in June 2004, what would you describe as some of the key achievements over this past 10 years? 2. Based on your experience, would you say the government has done enough to leverage on ICT to improve service delivery? Explain 3. Implementation of e-government is thought to go through the following 4 stages: I) Catalogue stage (Online presence with a website, basic information and downloadable forms) II) Transaction stage (the public can make requests, process applications, make returns etc and get feedback from the government online) III) Vertical integration stage (services provision at different functional levels are linked through a shared database) IV) Horizontal integration (One –Stop –Shop, service delivery arms of government are connected to a shared database through computer interphases). From these four stages, where will you place our current e-government platform? Explain why 4. a) What would you say have been the main challenges in implementing the e-government program over the past 10 years? b) Any proposals on how these challenges could be overcome as we move forward? 5. In your opinion, do we have enough technical skills among the public servants to drive the next phase of the e-government? If not, what measures can the government take to build this right capacity? 6. The e-government is meant to...
Words: 406 - Pages: 2
...ECIPE OCCasIOnal PaPEr • no. 2/2010 REGIONAL ECONOMIC INTEGRATION IN ASIA: THE TRACK RECORD AND PROSPECTS By Razeen Sally Razeen Sally (razeen.sally@ecipe.org) is Director of ECIPE and on the faculty of the London School of Economics www.ecipe.org info@ecipe.org Rue Belliard 4-6, 1040 Brussels, Belgium Phone +32 (0)2 289 1350 ECIPE OCCASIONAL PAPER ExECuTIvE SuMMARy This is the season for regional-integration initiatives in Asia. There is talk of region-wide FTAs, and there are east-Asian initiatives on financial and monetary cooperation. But grand visions for Asian regional blocs are not achievable. Regional economic integration is most developed in east Asia, but only because of manufacturing supply chains linked to global markets. South Asia is the most malintegrated region in the world. And east and south Asia are much less integrated in finance than they are in trade and FDI – due to highly restrictive national policies governing financial markets. Asia’s existing FTAs are “trade light”. They are largely limited to tariff cuts, but have barely tackled non-tariff regulatory barriers in goods, services and investment, and are bedevilled by complex rules of origin requirements. An APEC FTA initiative has gone nowhere – entirely predictable given such a large, heterogeneous grouping. An east-Asian or a pan-Asian FTA, by discriminating against third countries, would compromise regional production networks linked to global supply chains. Moreover, huge economic...
Words: 12833 - Pages: 52
...In reviewing the facts presented to me it is my opinion, along with those of my colleagues at WIF Consulting, that your recommendation to horizontally expand the production of market pulp is the better decision when weighing it against the prospect of forward integrating into paper production. After doing an initial calculation, the net present value of the Valdivia project is roughly $3.7 billion (see Exhibit A), which yields a gain of almost $2.6 billion. Below are the key points we’ve identified to support this figure. Existing Competencies Within Arauco’s Contracted Workforce Because Arauco already has over 10,000 employees aiding in forestry and transportation operations under roughly 300 subcontracts, along with a workforce of independent workers operating all of Arauco’s sawmills, it becomes clear that several relationships are already being managed in order to ensure efficiency and effectiveness. By adding another workforce entirely dedicated to the production of paper, Arauco is taking on even more workers that are performing a series of operations that Arauco is not familiar with. Because of this, enforcement costs will be incurred to simply oversee the workforce’s numbers. Additionally, upper management will either need to be trained in a whole new set of competencies, or new employees must be taken on to optimize production performance. Additionally, to take full advantage of the potential sharing activities, will require an unknown amount of resources to...
Words: 1032 - Pages: 5
...The economic and social consequences of trade agreements have become a major area of research in recent years. Much of this has to do with regional economic integration, where countries in a geographic region, reduce and remove tariff and non-tariff barriers to the free flow of goods, services and production between each other (Hill, 2005). On the 1 January, 1994, such a trade agreement came into affect between America, Mexico and Canada. This was known as the North American Free Trade Agreement (NAFTA). This removed all barriers to the trade of goods and services within the member countries, the protection of intellectual property rights, application of national environmental standards and the establishment of two commissions with power to impose fines and remove trade privileges when such standards are ignored involving the environment, health and safety, wages and child labour (Hill, 2005). There is a belief that agreements designed to promote free trade within regions will benefit trade for all the countries involved, and also the rest of the world (Abbott and Moran, 2002). While regional economic integration, or foreign direct investment, is seen as a good thing, some observers worry that it could lead to a world in which regional trade blocs compete against each other. We are seeing the formation of many trading blocs continuing today as the need for it has become essential for countries and their firms to compete in the global market place (Seid, 2002). Although...
Words: 2280 - Pages: 10
...Global and Domestic Issues in the Food Supply Chain (Source: Roger W. Hutt, Arizona State University) High-value and processed foods, accounting for three-fourths of total world food sales have increased in response to consumers diversifying their diets or demanding higher-quality and labor-saving food products (Regmi and Gehlhar, 2005). More and more, consumers are asking for convenience, and the food system is responding. The relatively higher cost of a ready-to-serve bag of salad is preferable to a head of lettuce that must be trimmed and prepared. Demand for foreign brands and consumer-ready products, in particular, are expanding as well. Food producers and marketers are responding to the demands of the marketplace. Producers are investing in processing facilities in many host companies. Adjusting to meet the needs of consumers, retailers are importing high-value foods from around the world and selling it from a variety of retail store formats, with supermarkets and hypermarkets accounting for more than fifty-percent of global packaged food sales in 2003 (U. S. Department of Agriculture, Global Food Industry Structure, 2007). Globalization and safety and defense of the nation’s food system are themes very much intertwined in the literature. As Cheek (2006) pointed out, “Today, global consumers are demanding a source-verified and disease-free food supply. . . Changing consumer attitudes have resulted in demands for greater food safety on the retail market.”...
Words: 1874 - Pages: 8
...otherwise, be lent, resold, hired out, or otherwise circulated without the publisher’s consent in any form of binding or cover other than that in which it is published and without similar conditions including this condition being imposed on the subsequent purchaser. ISBN 1-901795-27-6 Cover designed by Clare Hofmann Typeset by Philip Armstrong, Sheffield Printed by Biddles, Guildford CONTENTS List of Figures Acknowledgements 1 2 INTRODUCTION INDUSTRY STRUCTURE 2.1 An Examination of Corporate Structure 2.2 The Urge to Integrate 2.3 A Question of Balance 2.4 Just how Operationally Integrated? 2.5 Are there Tangible Benefits to Operational Integration? 2.6 Important Transition to Financial Vertical Integration 2.7 Integration or Atomisation? 2.8 Market Inefficiencies that Favour Integration 2.9 Firm Specific Arguments in Favour of Integration 2.10 Should Companies or Equity Markets Diversify? 2.11 Business Segment Response to Market and Firm Specific Risks and Challenges 2.12 Core capabilities A...
Words: 28798 - Pages: 116
...Give recent examples of forward integration, backward integration, and horizontal integration. A business strategy that involves a form of vertical integration (upstream supplier and downstream buyers) whereby activities are expanded to contain control of the direct distribution of its products. The advantages of forward integration consist of excluding competing suppliers, greater capacity to reach end customers and better admittance to information about end customers. (Example) Forward integration is when a farmer offers his crops at the local market rather than to a distribution center. (Example 2) Dell reaches its customer directly through the internet this cuts out traditional computer stores. Backward integration is vertical integration that combines a core business with its suppliers. The advantages of backward integration may include assurance of the pricing, quality and availability of supplies, and efficiencies gained from coordinating production of supplies with their consumption. A form of vertical integration that involves the purchase of suppliers in order to reduce dependency. (Example) A bakery business bought a wheat farm in order to reduce the risk associated with the dependency on flour. (Example 2) Many grocery stores now have their own brand products to compete the name brand products (less expensive). When a company expands its business into different products that are similar to current lines. Horizontal integration is the widening of a business at...
Words: 838 - Pages: 4
