International business

Zara, the Spanish clothing retailer founded by Amancio Ortega and Rosalia Mera in 1975 is today the flagship brand of the Inditex group, the world’s largest apparel retailer. Zara has become famous for what they call ‘instant fashion’ – made possible by highly innovative and arguably unique international business management processes. It is now considered by many as the world’s ‘go to’ affordable, high quality fashion brand. You’ve been tasked with critically analysing Zara’s international business to gain a deeper understanding of the issues it faces in the future. In carrying out these tasks, you will need to carefully and thoroughly research and analyse certain aspects of the company. You are expected to demonstrate your understanding of international business principles by providing insight on the Zara business. You have been asked specifically to address the following in your report: 1) Local Market Adaptation vs. Standardisation (30 marks total) a) Critically analyse three parts of the Zara business that have been standardised or adapted for the UK market. Explain with evidence why these decisions were taken. (21 marks) b) Critically evaluate the success or failure of these standardisation/adaptation decisions. (9 marks) (You will need to identify and analyse pertinent areas of the Zara business and make recommendations to achieve the right balance of standardisation and local market adaptation to ensure ongoing success. Porter’s Value Chain model may be used as a framework to structure this part of the report). 2) Global supply chain management (40 marks total) a) Identify and critically analyse the factors that enable Zara’s supply chain management to be so efficient and effective. Describe the risks of using this management approach. (20 marks) b) Offer a research-based opinion on whether or not Zara’s global supply chain management is BPP University Business School: April 2017 a source of sustainable (long-term) competitive advantage. (15 marks). You should use a variety of credible secondary sources of information in your research. (You will need to use at least 5 sources to gain maximum marks. (5 marks) 3) International political environment (20 marks total) Discuss how the following factors might affect Zara’s business. • The election of Donald Trump as President of the USA. (10 marks) • The imminent departure of the UK from the EU. (10 marks) 4) Professional presentation, writing style and Harvard referencing. (10 marks)