Operations Management Principles - The operational Management Essay

Operations Management Principles - The operational Management Challenge at the Inditex Group - Essay Example This report highlights the operational management challenges at Inditex, as well as successes in providing fast fashion merchandise to many different target markets, to determine how Inditex remains a clothing manufacturing leader among many different competitive entities internationally and within the European environment. Operational objectives and competitive advantages The goal of Inditex is to provide fast fashion merchandise, meaning that there is a rapid turnaround of existing inventory to ensure that the majority of clothing products do not have to be held in inventory, thereby reducing costs in inventory management. Inditex understands that fashion merchandise, especially with the younger markets most attracted to Inditex fashions, maintain a very short life cycle. In Zara, as one example, virtually every piece of merchandise is on display, with Zara holding only a few key pieces of the same piece of fashion products, thereby creating an image of exclusivity for discriminati ng customers (Ferdows, Lewis and Machuca 2003). Having an understanding of the industry and product lifestyles are absolutely critical as it provides the knowledge necessary to develop worthwhile future operational strategies (Ha-Brookshire and Lee 2010). The majority of Inditex’s fashion stores are still in the growth stage along the industry life cycle, an environment in which the global supply chain for fashion merchandise has increased the total volume of available smaller and larger production entities and where strategic alliances along the supply chain are becoming more well-developed. Therefore, the supply environment in the aforementioned growth stage provides Inditex with unique opportunities to procure raw materials that give Inditex the ability to have a rapid turnaround of fashion merchandise. What is unique about Inditex is that the company is able to move from the design phase to tangible, in-store delivery of finished fashion merchandise much more rapidly than its many other competitors. This is what provides Inditex with the significant competitive advantage. For instance, Zara maintains an in-house staff of approximately 300 designers who consistently upgrade current season fashions and work toward designing the next supply of fast fashion, unique merchandise (Ferdows, et al. 2003). The ability to procure enough raw materials to begin production within a 4-6 week lead time is unparalleled in the industry, supported by Inditex’s ability to produce 50 percent of its total fashion volume within its many self-owned production facilities (Ferdows, et al.). Hence, whilst Inditex is busy designing merchandise along its operational model, in-house production experts and a variety of outsourced garment producers (especially sewing capabilities) are working consistently on producing new and innovative fashions along the short lead time. Other competition in the industry have lead times that can be up to six months, thereby giving Zara con siderable competitive advantages over the majority of its fashion competitors. The aforesaid is the operational objective of Zara: to align its operational strategies and production capabilities to meet the strategic objective of exclusive fashion merchandising and production. The organisation,

IKEA in China Essay Example | Topics and Well Written Essays - 2750 words

IKEA in China - Essay Example The corporations decide to enter into new country to capture the new market and in this process they primarily focus cross cultural factors for building multicultural teams. However, they have to face several difficulties due to mismatch of organisation culture and social culture (Rajagopal, 2007, p.8). This paper will attempt to analyse distinct features of cross cultural differences affecting international trade in context of IKEA’s business in China. To offer basic understandings and interpretations of cross cultural difference, some relevant models and concepts will be critically analysed and discussed. This paper will also include the basic difference of Swedish and Chinese cultures. Role of expatriate managers in managing multi-national corporations will also be discussed. Finally, the paper will end by summing up the entire discussions and findings. IKEA is a privately-owned global furniture company. It is a Sweden-based company and founded by Ingvar Kamprad who started to sell matches at the age of seven during 1920. During 1940-1950, he entered into the furniture business and the business experienced a rapid growth within a short span of time (IKEA-a, 2010). Currently, it offers large varieties of furniture for domestic and commercial purposes. It also provides furniture for children (IKEA-b, 2010). IKEA has expanded its business in the global market and it is present in the entire Europe, North America, Middle East and Asia pacific regions. The business idea of IKEA focuses on its core value, product range, low price and betterment of everyday life of its valuable consumers (IKEA-c, 2010). Business and culture are inter-related with other and hence, before presenting critical analysis of cross culture, expatriate management and multicultural operations. The national culture is the prime factor that affects the culture of an organisation and its behaviour.