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1、1. To make a decision on whether or not upgrading ZARA's POS systems, we should fully consider the merits and demerit s of the plan from all aspects.A. We agree that the company should upgrade its POS system, but it also need to consider a matter of timing. Although the present POS system runnin
2、g stably, efficiently, and has a low operating cost, it doesn't keep pace with the trend from the technological perspective.Also, its function is simple and has no support from the Microsoft. What's more, the system is facing a risk that its software will be incompatible with the new hardwar
3、e. However, if ZARA upgrades the POS system, they will spend time testing and adapting the new one.In the long term, ZARA needs to upgrade the POS terminals. At present, the company should maintain relationship with the hardware provider and prepare to adopt a new system. And remember to make a spec
4、ific plan for the upgrade.B. We think the company should build in-store networks. There are two major reasons. Firstly, to build in-store networks can savemanpower resource.The modem-equipped terminal can be very useful for employeesto count the stock. It is in line with the company's philosophy
5、 of “ fast” and the cost leadership strategy. Secondly, when building the in-store networks, the POS terminals could accommodate even more sophisticated capabilities. Generally speaking, building in-store networks can save more money for the company, and improve its efficiency.C. The company should
6、give employees the ability to check inventory balances for items in their own stores. The reasons are as follows: Let employees to know about inventory balances can get them better involved in the company affairs; It 'sa good way to effectively motivate staff, increase staff motivation and impro
7、ve employee performance to improve enterprise performance; It can guide employee's sales strategy.D. As far as we are concerned, we think the company should give employees the ability to look up inventory balances for items in other stores. The reasons are as follows: Employees and branch will h
8、ave more access to participate in the operation; It could promote the company s internal information exchange,and even could form an internal friendly competition; Employeesca n use regi onal salesdata to show the local con sume' s dema nd and influence customer's consumption.2. ZARA' s
9、business strategy is mainly differentiation integrated with cost leaderships. In terms of differentiation, ZARA ' s “fast fashion” philosophy is unique, which create demands and lead the trend in the garment market. They respond very quickly to the demands of target customers and focus on young
10、fashion. In production, they design quickly, production quickly and update quickly. They are alwaysthe fastest compared with their competitors.In cost leadership aspect,ZARA conducts little advertising and vertically integrated manufacturing operation and distribution system based on information sys
11、tem. Inside the company, their organization structure is simple and employeeswork with high participation, so that the whole company runs efficiently. All above allow ZARA to provide products with lower price.3. In our opinion, ZARA realize the strategy through 5 main aspects:organization structure,
12、 corporate culture, production process, marketing mode, IT.Organization Structure ZARA has a flat organization structure, which emphasizesa decentralizeddecision making approach; The desig n team are relatively in depe ndent; Store man agers have more resp on sibilities.Corporate CultureZARA has a “
13、fast fashion” philosophy, which mainly focus on the short lead times. And the company emphasizes the ability respond very quickly to the demands of target customers. They are sensitive to new styles, so they'dotnproduce“classics”.Production Process Retailing, manufacturing and apparel industry i
14、ntegrated; Low Raw material cost; Using sophisticated machine to raise the utilization ratio of raw materials; Personalized design style.Marketing Mode Paying attention on the store location; Never selling clothes over the Internet; Conducting little advertising (virtually no advertising, placing ads only twice a year to announce the opening of new stores); Small batch quantity production of single piece (in order to stimulate demand).ITAt La Coruna, several information systems were used to support the oper
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