Chcom 105 - Assignment PDF

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Midterm practice question COMM105 Case 2: Zara International 1. In what ways are the elements of the classical management approaches evident at Zara International? The classical management approach includes three main theories, which are scientific management, bureaucratic organization, and administrative principles. The main objective of scientific management is to increase labor efficiency and productivity, an example in the case is Zara demonstrates this by employing the right tailor factor to increase efficiency and gain easy access to its store and warehouses. Zara focuses its operation on speed rather than promotions, production costs, and advertisements. As stated in the case, CEO Pablo believes in cutting expenses whenever and wherever possible, the company only spends about 0.3% of sales on ads. Additionally, administrative principles are evident at Zara International as the brand controls design, production, distribution, and retail sales to optimize the flow of goods, lowering the chance to share profits with wholesalers or intermediary partners. The company can deliver its latest production from distribution centers to their European stores within 24 hours, and North America and Asia stores in less than 48 hours. The retailer creates a sense of scarcity for their products and instead of restocking the products, they replace with new items which leads to a sense of urgency for shoppers and create an impulse buy. Bureaucratic organization is displayed through Zara’s implementation through even division of workload. For example, store managers track sales data and can reorder hot items in less than an hour, allowing the retailer to know what’s selling and what’s not. All employees hold a vital position to run a stable and smooth operation that helps Zara to become the most innovative and leading retailer to fashion trends. Case 10: Hudson Bay 4. What does an analysis using Porter’s five forces model reveal about the industry that HBC competes within? When looking at Porter’s five forces model, it reveals that HBC competes in a market that is continuously evolving, and this forces the company to expand in different ways to grasp more customers. One of Porter’s forces factors is the threat of new entrants to Canda, the brand competes with big-box retailers who already developed an established image to most consumers, this includes high-end retailers such as Nordstrom or budget-friendly companies like Walmart and Winners. Despite many challenges, The Bay was able to stay competitive through the assessment of one of Porter’s five forces, the consumer’s bargaining power. Based on the case study, the retailer did not benefit from reducing storewide discounts because they targeted the wrong market segment. They have decided to relaunch the “The Lounge” concept, which is a VIP suite that includes a range of designers and high-end labels in downtown

Toronto location to help expand the market and grasp more attention and grow popularity in the designer wear segment. The barging price of suppliers also affected HBC because they don’t have the same power as big-box retailers to demand and dictate terms to suppliers. Retailers such as Walmart and Costco dominate the sector and makes it difficult for The Bay to have strong bargaining power with suppliers....