Samantha Stevens
Case Study 2
9:25am
1. In what ways are elements of the classical and behavioral management approaches evident in how things are done at Zara International?
~The classical management approach is evident at Zara International. The three branches of the classical management approach include scientific management, administrative principles, and bureaucratic organization. The concept of scientific management can be seen in Zara International because time is the main factor instead of production costs and advertisements. Zara only spends 0.3% of sales of ads compared to their competitors who typically use 3 to 4%. The administrative principles are expressed through controlling design. At Zara, most of the clothing lines are not replenished. Instead they are replaced with new designs to create scarcity value so shoppers cannot be sure that designs in stores one day will be available the next. This will get shoppers to buy the item now instead of waiting. Bureaucratic organization is evident through clear division of labor. Zara International is a very efficient organization. Because of the clear division of labor, the organization can run smoothly. There were also elements of the behavioral management approach that was evident in Zara International. Zara’s management team focused towards the human factor as a key element in their organization. They paid close attention to what fashions the public was demanding. Even though their clothing designs are coming fresh off the runway they still make it very affordable for the public. Zara used Mary Parker Follett’s idea of organizations as communities where people combine their talents for a greater good. 2. How can systems concepts and the notion of contingency thinking explain the success of some of Zara’s distinctive practices? ~Zara succeeded in matching management practices with different