How to save Zara International

1.  What Management and Business Issue(s) are identified? Customer satisfaction: (The Company has a single culture that is mostly influenced by the Europe culture. Consequently, they use a few colours that might not satisfy their customers in other countries like India that they have expanded to).

Marketing Strategy: (The Company has a strategy that ensures their stores are replaced every month. When an organization is doing well without proper marketing, it means that they could do more if they involved marketing strategies like advertisements. The quick replacement in the stores does not give time for them to market their products.)

2.    What is the key management or business / organizational issue?  The BIG ONE.  WHY is it the big one?  Have you picked THE issue that if resolved, will most likely cure or save the situation or at least, make it less troublesome?  Or, again, if it is going reasonably well, what else can be done that would make a further big improvement? 

Limited product supply: (One of the company’s strength is the quick replacement of products in the market but it is also one of the biggest business issues that set the company back. Zara International produces their products in small batches in a move to avoid oversupply but most customers cannot be satisfied. This is because every time they go to the store, they will find out that the products have already been replaced with other designs)

This is the biggest issue because customers are important for every organization; every organization should ensure their customers are satisfied.

If the issue of limited supply is resolved, it will definitely resolve the issue because the customers will meet their expectations and, therefore, ensuring customer satisfaction.

3.    What theories on change, on leadership, on motivation, on planning (if any of these or yet others are the problem) will help you either further improve the situation yet further, OR, solve the case and save the company/organization?

Lewin’s Change theory: (Lewin’s model of change outlines ways in which organizations can implement change and Zara International can use it to solve the problem)

The steps in the model include:

Unfreeze (The organization needs to prepare for change by adding materials and personnel to create more batches of products compared to the small batches).

Change (This is the actual process where the organization should make more products)

Refreeze (This involved the acceptance and embracing of the change and the organization getting used to the production of more batches)

4.    What are your objectives to save the company/organization?  What are your Problem-solving Objectives?  Or, what are your Objectives for the Improvement Initiative(s) that you are proposing?

Creating urgency (creating urgency has to be done through advertisements and campaigns. People and especially those who love fashion will see how the designs are amazing and regardless of how much the batches are, there will be enough customers for them)

Getting the right team (the right team involves people with skills, knowledge, and commitment toward the change that has to be implemented. The right team understands the problem and shares the same ideas towards solving it and are committed in their work)

Having a customer-focused strategy (the strategy implemented by the company is not centred on the customer and to solve the problem, there is a need to create a customer-centred strategy. The strategy ensures that every function in the organization meets the needs of the customer).

5.    Implementation.  What plausible staged plan (over a specified timeframe that has milestones) do YOU suggest will solve/ameliorate the situation so that the issue or problem is lessened or avoided?

The implementation of the plan for change will take place in a period of two months which will be enough for the phases of change and preparedness. The phases include:

Planning and strategy (The project manager and the management meet to discuss the change and all aspect of it)

Product training (this phase is essential because it ensures the staff and the management are familiar with the change. The staff will likely have additional work and many changes will be made, training ensures that they are conversant with everything)

Testing and configuration (this step proves to the organization that the change is either good or bad. At this phase, the company will determine whether the production of many butches is possible).

Rollout and communication (this is the last phase which ensures that change has been communicated to the customers effectively and it has been made even with the organizational functions).

Reference

Major Approaches & Models of Change Management. (2018, February 19). Retrieved from https://www.cleverism.com/major-approaches-models-of-change-management/