This website uses cookies to ensure you have the best experience. Learn more

Value Chain Essay

9593 words - 39 pages

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
...view middle of the document...

e., the
screen, keyboard, disk drive, processor, etc.) and the software (also called “applications” or “programs”) that users want to run
on the computer. Microsoft’s MS-DOS (Microsoft Disk Operating System), or DOS, was a widely installed operating system in
early personal computers. In 1985, Microsoft launched the Windows OS to replace DOS.
________________________________________________________________________________________________________________
Professor Andrew McAfee, Executive Director of the HBS Europe Research Center Vincent Dessain, and Research Associate Anders Sjöman
prepared this case. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of
primary data, or illustrations of effective or ineffective management.
Copyright © 2004, 2006, 2007 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-
545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. No part of this publication may
be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical,
photocopying, recording, or otherwise—without the permission of Harvard Business School.

This document is authorized for use only by Somonnoy Ghosh at INDUS WORLD SCHOOL OF BUSINESS .
Copying or posting is an infringement of copyright. Permissions@hbsp.harvard.edu or 617.783.7860.

Do
No
tC
op
yo
rP
os
t
604-081 ZARA: IT for Fast Fashion

“Of course not. So let’s buy a bunch of the current terminals so if that happens we’ll have plenty
of breathing room while we port the POS application to a new OS.2 But I don’t even think we need to
do that. The terminal vendor has assured us they’re not going to make any drastic changes, and
we’re a big customer.
“And let me remind you why we shouldn’t tamper with POS unless we absolutely have to,”
Sanchez continued. “Everything about it works! Sales get recorded in stores around the world and
transmitted to us here every day like clockwork. I wrote most of the POS application, and I’m the
one a store manager calls when there’s a problem they can’t fix. Do you know how many of those
calls I got last week?”
“I know that the application is stable, but that doesn’t . . .”
Sánchez didn’t let him finish: “None! That’s how many! Let me ask you another question—do
you know how many stores we opened last week?”
“No, but what’s that got to . . .”
“Exactly! That’s because opening a store requires no IT involvement! You don’t have to send
someone to Dubai, or Argentina, or Russia, or wherever. The store manager just unpacks the POS
terminals, inserts a couple disks in each, plugs a modem into a phone line, and starts selling clothes.
Why on Earth would you want to mess with that?”
“Because I’m worried about DOS,” Salgado said. “And because I think it might be time to
...

Other Papers Like Value Chain

What Is Value Chain Analysis? What Does A Firm Gain When It Successfully Uses This Tool?

1727 words - 7 pages Developed by Michael Porter , Value Chain Analysis is an analytical framework that is used to analyse relationships between various parts of operations and the manner in which each part adds value to contribute to the level of revenues. Value Chain Analysis the business activities are divided into two categories: primary activities and support activities. The primary activities directly deal with the creation of products or services, whereas

Sonnet 116:Shakespeare Essay

1222 words - 5 pages International Training Course on Integrating a Value Chain Perspective in Small Scale Enterprise Development TRAINING SCHEDULE November 19-30, 2012 Rural development generally includes supporting local people’s livelihoods through income-generating activities and small-scale enterprises. Previous program experiences point to the importance of building local entrepreneurship capacity, establishing business organizations, and enabling access

Supply Chain Functionality

404 words - 2 pages their titles with increasing regularity.[3][4][5] Common and accepted definitions of supply chain management are: Managing upstream and down stream value added flow of materials, final goods and related information among suppliers; company; resellers; final consumers is supply chain management. Supply chain management is the systematic, strategic coordination of the traditional business functions and the tactics across these business functions

Tesco

2509 words - 11 pages BRIEFING PAPER KEY ELEMENTS OF THE VALUE CHAIN APPROACH WHY USE THE VALUE CHAIN APPROACH? Many people talk about the “value chain approach” but interpretations of what this approach entails—the principles upon which it is based and how these principles are applied through analysis, project design and implementation—vary. Moreover, donors and their implementing partners have different motivations for drawing upon the approach. This paper outlines

Passion Fruit Industry In Sri Lanka

1253 words - 6 pages Case study 2 Sri Lanka Cargills Ceylon Ltd Total cost: Financier Year of initiation: NA Private company 2001 2010-2015, Possible partner under the IFAD-supported National Agribusiness Development Programme (NADeP) Relational chain, buyer-driven Value chain approach: Background. Cargills Ceylon Ltd (Cargills) is a supermarket chain called Food City in Sri Lanka. It has improved the efficiency of its operations by purchasing directly from

Control Of The Supply Chain Turns Critical

2146 words - 9 pages supply chain, from the sourcing to the logistics; in an orderly, and timely manner at a relatively low price that fulfills the customer’s needs (Ahmed and Shepherd, 2011). Nowadays, managers across the world believe an integrated supply chain system, along with the new technologies, will provide an added value to the final product and therefore a competitive advantage to companies (Mentzer, J, 2000). Albeit its ability to offer a better final

Tns Case

299 words - 2 pages traditional view of a company and its component parts as distinct functional entities, these managers realize that the real measure of success is how well activities coordinate across the supply chain to create value for customers, while increasing the profitability of every linkfSFSFSAfsAFsfsafasfsfsafaAD

An Introduction To Supply Chain Management Commerce Essay

6951 words - 28 pages perspective says that in SCM the managers do the integration of the key business process across their supply partners, to enhance customer value and satisfaction among all the stakeholders (Lambert, 2008). Supply chain management was a quickly emerging, if still problematic, element of business-to-business e-commerce in the late 1990s and early 2000s. (Enclyclopedia of e-commerce 2009) For the better understanding of the supply chain management

Scm Overview

731 words - 3 pages of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long term performance of the individual companies and the supply chain as a whole. It has also been defined as the design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a

Fd Dg A

630 words - 3 pages companies do provide their customers with high levels of customer service, the current productivity gap (what is being done vs. what is possible) leaves room for significant value generation. It is also common for many companies to view re-engineering efforts dealing with the service part of the supply chain as risky. Although this is understandable given the impact of failure in customer service, the vast productivity potential and increased

Supply Chain Management

4341 words - 18 pages management as the design and management of seamless, value added processes across organizational boundaries with the objective of meeting the real needs of the end customer. From the two definitions, some observations can be made. It is evident that 4 supply chain management entails any aspect that plays a significant role in determining the cost of the finished product as well as ensuring that the finished product meets customer’s needs. In

Related Essays

Value Chain Essay

811 words - 4 pages -1- The Value Chain The term ‘Value Chain’ was used by Michael Porter in his book "Competitive Advantage: Creating and Sustaining superior Performance" (1985). The value chain analysis describes the activities the organization performs and links them to the organizations competitive position. Value chain analysis describes the activities within and around an organization, and relates them to an analysis of the competitive strength of the

Value Chain In Engineering Essay

1261 words - 6 pages Executive Summary The concept of value chain has attracted considerable attention of managers and researchers. This report briefly presents the value chain in manufacturing industry and then explores the leadership roles of the engineer in the management of the value chain. Furthermore, this report analyzes the benefits of using an engineer in the value chain management and points out that the engineer is best suited to perform the value chain

Value Chain Essay

1682 words - 7 pages Contents Coursework Header Sheet 2 Introduction 5 Week One 6 Week Two 6 Week Three 6 SUPPLIER RELATIONSHIP 6 CUSTOMER RELATIONSHIP 7 IMPORTANCE OF TEAM WORK 7 Evaluation of Mass vs. Lean Production 8 REFERENCES 9 VALUE STREAM MAP 10 Coursework Header Sheet201029-58            | | Course | MARK1174: Business Proj 2 (Value Chains) | Course School/Level | EN/UG | Coursework | Simulation Game Report | Assessment

Value Chain Essay

259 words - 2 pages In nowadays, sustainability is a very popular topic. It influences many fields, including construction area. However, I do not have too much acknowledged about “sustainability”. That is why I chose this unit to study. I want to have a brief view about “sustainability after the studying of this unit. Also, I want to learn some detailed ideas about “sustainability” and how to apply in real world. Because I am new about the sustainability concept