Computer Access :: Technology Personal Narrative Teacher

Computer Access My current situation finds me teaching 7th grade block (language arts and geography) at Beach Middle School in Chelsea, Michigan. Chelsea, as a community, is fairly well-off financially. Technology is a priority for its citizens and for its schools. I am currently typing this on my school-issued laptop that is less than a year old. I am sitting on my couch and my cat is sleeping on my left arm. My classroom contains a brand new PC for my students to use and a new HP DeskJet color printer. There are two different labs of brand new laptops at my disposal. I am one of Moran’s â€Å"haves.† Being one of the â€Å"haves† doesn’t mean that my students can use computers everyday, nor would I sign up for that. We have debated and argued and complained and reasoned our way into a sign-up system that works most of the time. For the walk-in lab of twenty-eight laptops, the sign-up sheet is posted one week in advance and is available on a first-come, first-serve basis. The sign-up sheet is posted in the lab itself. It is posted by the Media Center clerk, and she has her favorites. The rest of us are routinely confounded by the apparent speed with which some teachers are able to access the sign-up sheet. For those of us who are not quite quick enough, there are two laptop carts. Each cart has fourteen laptops and a printer. All of the laptops are wireless. We can sign up for one or both laptops at a time. The sign-up sheet is in the Media Center, and the sign-up sheet is available for the entire school year. In September, I can sign up for June. I have done already this year. We have two different sign-up procedures because of the different planning styles of our teaching staff. We in the language arts and social studies departments tend to do our planning months in advance. For at least the last two years, the 7th grade block staff has met in the summer and plotted the course of the year. Computer Access :: Technology Personal Narrative Teacher Computer Access My current situation finds me teaching 7th grade block (language arts and geography) at Beach Middle School in Chelsea, Michigan. Chelsea, as a community, is fairly well-off financially. Technology is a priority for its citizens and for its schools. I am currently typing this on my school-issued laptop that is less than a year old. I am sitting on my couch and my cat is sleeping on my left arm. My classroom contains a brand new PC for my students to use and a new HP DeskJet color printer. There are two different labs of brand new laptops at my disposal. I am one of Moran’s â€Å"haves.† Being one of the â€Å"haves† doesn’t mean that my students can use computers everyday, nor would I sign up for that. We have debated and argued and complained and reasoned our way into a sign-up system that works most of the time. For the walk-in lab of twenty-eight laptops, the sign-up sheet is posted one week in advance and is available on a first-come, first-serve basis. The sign-up sheet is posted in the lab itself. It is posted by the Media Center clerk, and she has her favorites. The rest of us are routinely confounded by the apparent speed with which some teachers are able to access the sign-up sheet. For those of us who are not quite quick enough, there are two laptop carts. Each cart has fourteen laptops and a printer. All of the laptops are wireless. We can sign up for one or both laptops at a time. The sign-up sheet is in the Media Center, and the sign-up sheet is available for the entire school year. In September, I can sign up for June. I have done already this year. We have two different sign-up procedures because of the different planning styles of our teaching staff. We in the language arts and social studies departments tend to do our planning months in advance. For at least the last two years, the 7th grade block staff has met in the summer and plotted the course of the year.

Zara Fast Fashion

1. Features of Zara’s business model that affect its operating economics: †¢Zara owns much of its production and most of its stores, while competitors Gap and H&M own all of their stores but outsource all of their production. Benetton, on the other hand, owns all of its production but goes to market through licensing agreements. †¢Zara places more emphasis on backward vertical integration. Production runs are short and inventory is strictly controlled. This is in contrast to industry trends of high volume production. Zara's product cycle time from the design phase to the manufacturing phase is 4 to 5 weeks while the industry average is 6 to 9 months. The short cycle time enables Zara to commit to a bulk of its product much later than its competitors. 85% of Zara's in-house production occurs after the season has started in contrast to 20% in-house production of traditional retailers. †¢Zara's pricing is lower than its competitors, but profit margins are higher du e to direct efficiencies gained from a shortened, vertically integrated, supply chain. At Zara, a high inventory turnover rate results in minimal obsolescence costs, clearance sales or mark downs. Zara estimated 15%-20% of total sales as markdowns/close-outs vs. 30% to 40% for its competitors. This helps to preserve a strong profit margin and bolster market image as a â€Å"must buy now† destination. †¢Zara's advertising expenses are minimal (avg. 0. 3% of revenue) compared with 3% to 4% for other specialty retailers. These helps lower expenses and preserve strong profit margins. Zara, in turn, invests more money in renovating its storefronts and buying prime real estate for store locations. At Zara, 75% of display merchandise is turned every 3 to 4 weeks which corresponds to the average time between customer visits. The average Zara shopper visits the chain 17 times a year. In contrast, the competition records an average of 3 to 4 customer visits per year. Zara's image creates a â€Å"sense of urgency† and forces loyal customers to check in frequent ly for the latest fashions. 2. Zara’s Quick Response Capabilities – Upstream and Downstream activities: †¢Zara's quick-response capability is based on improving coordination between retail stores and product manufacturers. This coordination allows Zara to respond faster to fashion trends, thus creating a competitive advantage for Zara. Effectively utilizing information technology and vertically-integrated manufacturing facilitates Zara's quick response capability. Upstream Activities: †¢Design Teams continuously track customer preferences via data sent electronically from individual storefronts. Additionally, sales data is sent upstream from the stores to give instant feedback on Zara's new product lines generating replenishment orders for sold product. This instant upstream feedback, coupled with Zara's rapid product development gives Zara a compelling market advantage. †¢Zara sources fabric and finished products from external suppliers using purchasing offices in Europe and Hong Kong. 50% of the fabric remains undyed to facilitate in-season updating via Comditel, a subsidiary of Inditex that manages the dyeing and patterning of unfinished fabric. Delaying production of unfinished fabric allows information flowing upstream to influence Zara's production. 40% of all garments are manufactured internally or by subcontractors located near Zara's headquarters. This 40% represents the most fashionable, time-sensitive garments that Zara considers risky. Zara's local production network facilitates flexibility and risk-taking on fashion trends. Downstream Activities: †¢Zara owns its own distribution center in Arteixo. All merchandise from both internal and external suppliers passes through this distribution center. Shipments occur twice a week to each store. Items move through the center very quickly. For example, a vast majority of items are at the center only a few hours and no item stays at the center for more than three days. †¢On average, Zara spends 0. 3% of its revenue on media advertising, which is focused on opening season and end of season sales. †¢Product cycles through the stores rapidly, with new designs arriving every three weeks. This fast turnover results in a significant reduction of discounted merchandise. †¢Display shelves are sparsely stocked creating a sense of urgency (â€Å"buy now†) in the minds of shoppers, resulting in immediate sales. Location is critical for Zara to attract repeat customers. Stores are occasionally relocated in response to ever-shifting popularity of shopping districts and traffic patterns. 3. Why might Zara fail? Zara could fail due to falling into what is known as the â€Å"growth trap. † In the beginning, Zara established itself as selling medium-quality fashion clothing at affordable prices. Zara went on to gain a competitive advantage in the industry by developing a quick response capability while at the same time maintaining low customer pricing. As Zara begins to expand internationally, the potential to lose their competitive advantage increases. For example, in South America, Zara had to present a high-end rather than a mid-market image. This goes against the image of medium quality fashion at affordable prices that Zara had built and maintained since their inception. As Zara continues to grow, their stores may eventually be found on every street corner around the world. As a result, Zara runs the risk that their products may become less unique in the eyes of the consumer. According to the â€Å"growth trap,† efforts to grow can blur uniqueness, create compromises, reduce fit, and ultimately undermine competitive advantage. In the end, Zara runs the risk of becoming an ordinary retail chain as they lose sight of their competitive advantage and become more like every other retail player. In order to maintain their market share, Zara should remember their roots and focus on the excellence of their existing chain with very minimal increases in selling space. Zara Fast Fashion Inditex – Zara: Fast fashion Case analysis Company Structure and Goals Overview Zara’s vision on growth and global strategy -Building up fixed assets -Vertical integration -No advertising, creating premium stores -Fashion follower – QR to fashion trends -Strongly customer oriented -Stable growth -Markdowns half the average (15% as supposed to 30% ) -Pricing market based Business model: -Vertical operations and downstream activities -Multi-chain concept -Creative design team -Competitive advantage – Sustainable growth As attachment: Porter’s Five forces; Company structure; Financials) Problem Statement Growth challenge – 20% per annum expected, 76% of equity value implicit on Inditex’s stock price was based on expectations on future growth. Failure to deliver expected growth results might cause a serious offset in company’s market capitalization. Room for non-local growth – in average a retailer was present in 10 countries while e. g. a pharmaceutical company averaged operations in 125 countries. Problem statement is: In what geographical area(s) should further Zara expansion follow? Should there be another logistics-distribution centre created as increase of operations might cause dis-economies of scale? Should it acquire additional chains given the complexity of managing those and the risk of own-product-replacements? Preserve the margins; (visible threat to the sustainability of Index’s competitive advantage) Evaluation of the alternative solutions 1. Growth challenge: Notes: not much potential on the local market; -different markets require different positioning -though costs grow as distance grows, prices also change (margins are kept) -50% of all export is to developing countries -Zara shopper visits the store 17 times a year, average is 2-4 times -Creating a climate of scarcity and opportunity in stores Evaluate growth options in different markets: Spain Europe str4 – production in North Africa, turkey and East Europe. US – production in Mexico and the Caribbean subjected to retailing oercapacity, less fashion-forward than Europe, demands larger sizes and exhibits considerable internal variations Japan – no quotas to restrict imports, produced in China. – teenage market segment considered as the trendiest in the world Italy – fashionable, visit stores frequently and spend more on clothing 2. Change in marketing strategy Current: Three types of entering a market: company owned stores, joint ventures, franchising Strategy is standard across the countries -No adv -One big shop central city (capital) Followed by smaller ones (spreading around the country) -Shop windows used excessively -Products do not differ much from country to country -Model is downstream -No knowledge is shared -From design to stores within 4-5 weeks , industry average 9 months -Due to product testing, failure rate only 1% compared to industry average of 10% 3. Change in pricing strategy Current: Prices vary on the different markets, due to transport costs (all supplied from the base in Galicia) – this changes positioning Lower mark-down than industry average Zara: Fast Fashion The Spanish retail chain Zara has unique supply chain management practices that enable it to gain a competitive advantage over other fashion retailers in the industry. Zara’s rapid response time enables the firm to quickly respond to changing fashions while deliberately under producing products. This strategy, which is supported by competencies in logistic management, design and information systems, allows the company to maintain less inventory and higher profit margins and is a key factor to Zara’s success. The firm should continue to add value by seeking new opportunities to expand in the retail market and maintain their sustainable growth. Financial Analysis Being aware of a company’s financial health and profitability of its competitors is highly essential for everyone interested in engaging in business with Inditex. In this part of the paper, through analysis of 4 key ratios and return on invested capital, we are going to discover some of the company’s drivers of sustained competitive advantage. The 4 key ratios will focus mainly on company’s liquidity, activity, solvency and profitability, while ROIC will show how well the company manages the capital invested in operations of the business. In order to measure ability of Inditex to meet its short term obligations and to assess liquidity, it is important to calculate current ratio. As shown in exhibits section below, in 2001, Inditedx had 1. 02 million in current assets, while Gap and H&M had 1. 48 and 3. 4 million Euros in current assets for every Euro in short-term debt. This indicates that Inditex’s main competitors demonstrate greater ability to meet current payments of debt; therefore liquidity is not one of the company’s success drivers. When it comes to comparing company’s sales to various assets categories it is significant to take a look at the total assets turnover. This ratio indicates how efficiently assets are being used to support sale. From 1999-2001, this ratio increased by 1. 2%; however it was still below industry performance. Currently Inditex is industry leader with total assets turnover of 1. 8. This shows that company’s recourses are being well managed and that company is able to realize high level of sales from its investments in property, plant and equipment such as manufacturing facilities. Debt to equity ratio is used for solvency evaluation. The main purpose of this ratio is to show company’s ability to repay long-term creditors. As shown in exhibits section, this ratio decreased from 1999-2001, however, when compared to its rivals, Inditex confirmed to have the best leverage among them. When it comes to company’s financial flexibility and profitability it is highly essential to calculate Net Profit Margin ratio. This ratio measures how successful a company has been at the business of making profit for each euro earned. As presented in the exhibits section, Inditex was and still is an industry leader with Net Profit Margin ratio of 10. 6% in 2001 and 13. 10% in 2010 which means that company has currently â‚ ¬. 3 of net income for every dollar sale. In addition, according to Inditex’s income statement, we could see that company is delivering higher net income due to its ability to keep operating expenses and COGS much lower than competitors. Furthermore, the company is able to gain sustained competitive advantage by making its own products, efficiently covering lower advertising expenses and maintaining cost-effective number of employees per store. In order for Inditex to maintain continuous growth it is important to keep its profit margins at the high level. Last but not least ROIC (Return on Invested Capital) gives a good judgment on how well a company is using its money to generate returns. Inditex ROIC varied through past couple of years but is currently able to earn around 7% on each euro invested. From the exhibit table below, we could conclude that the company is making wiser investment decisions than its competitors. SCP Analysis Zara competes in a monopolistically competitive industry due to the number of players. No business in this type of industry has total control over the market price and there are no barriers to entry and exit. Because of its monopolistically competitive playing grounds, Zara’s conduct is to increase its market power by producing demand for its heterogeneous products. Through differentiation and cost leadership, Zara attempts to increase market demand by offering new items weekly while keeping a low inventory, thus making its products unique and attractive to consumers. Because of its backward vertical integration model, Zara creates a strong synergy throughout its production process. Zara has sustained a competitive advantage globally by expanding into new markets and becoming more efficient. In a onopolistically competitive industry, Zara is expected to make profits in the short run but will break even in the long run because demand will decrease as average total costs increase. This means in the long run, a monopolistically competitive firm, such as Zara, will make zero economic profit (AmosWEB, 2001). Porters Five Forces Barriers to Entry: Due to the recent recession and weak economic market, many new players have avoided entering the retail industry. Zara has taken advantage of this opportunity to be the first to enter into many markets across the world before its competitors. With the economic future improving, Zara will be facing more and more competition especially in the United States. Rather than implementing new strategies on how to differentiate itself even more, Zara will need to focus more on creating brand awareness and staying on top in the game. Zara has been the odd ball in the industry with its creative business model but with more and more retailers quickly catching on and critiquing their business model to match the economy changes, Zara faces intense competition. Unlike other retailers, for example Gap and H&M, Zara needs to fight threats around the globe. In the states, Zara competition is intensified with American retailers because many customers still do not know who Zara is or what it offers. In Europe, Zara is like a Macys for us in the states so the brand awareness is there but competition is still also high. Many retailers in Europe offer the same products as Zara, at the same or similar prices; therefore Zara needs to find ways to keep ahead of competition. Bargaining Power of Buyers: Zara is famous for its business model of just in time inventory. No other retailer can produce a garment from scratch and have it hanging in the stores within weeks than Zara. Zara also distributes large number of shipments to its stores around the world twice a week. All merchandise is shipped from Spain and all stores receive shipment on the same days, Monday and Thursday. Zara produces nearly 16,000 new designs a year which is much more than leading competitors. With the constant changing apparel Zara keeps its inventory levels extremely low. Zara customers know that if they see something in the store to buy it right then and there because tomorrow that garment will not be there. US customers are still adapting to this quick turnaround time. With their advanced technology, Zara knows what its customers want and will deliver that to them within 2 weeks’ time. Bargaining Power of Suppliers: Zara manufactures all its clothing in house. This way it has control of the entire process and can make changes more quickly and efficiently when needed. After the garments are cut and ready for assembly, Zara sends out the fabric to different sewing companies to assemble the pieces. There are many competitors that Zara can choose from when deciding where they want its clothes put together which makes the bargaining power weak. Zara also took control of this process by taking over Comditel. Comditel is in charge of nearly the entire garment process. Once the garments are ready and fully assembled they are then stored in Zara's own distribution centers. From the distribution centers they are then shipped around the globe to the thousands of Zara stores. Like many other aspects of Zara's business model, the distribution center moves even more quickly. Once the garments are in the distribution centers, they only stay there for a maximum of 3 days before be sent out to the appropriate destination. Substitutes: Some may describe Zara as a higher end replica of fashion forward items. The items featured on Prada, Chanel, and St. John runways will be replicated in 2 weeks in Zara stores at a much more affordable price but poorer quality. Therefore, there are not many substitutes that customers can use because a majority of the products are out of the price range of many customers. This is a huge benefit for Zara because its customers are willing to pay a much less price for a lesser quality replica. Competition: Zara's direct competitors include H&M, Gap, and Benetton. H&M offers nearly the same products as Zara to its customers, but a much lower quality and price. For those customers who are price sensitive, H&M would be their choice of retailer. The Gap possesses more competition in the states because it has been around longer and has its loyal customer base which is hesitant to shop elsewhere. Even though these retailers give Zara a run for its money, none of them can keep up with Zara’s business model. Other retailers do not have in house production like Zara and ship their production to other countries for the cheap labor costs. This does save money but it increases time. Time is money so while others are still in production stage, Zara is already selling out of the garment. VRIO Analysis We can use the VRIO framework to determine the competitive potential of Zara’s resources and capabilities. As we analyze Zara’s resources and capabilities, it is evident that Zara has built a highly effective, self-reinforcing business system. Three elements in particular – (1) extensive vertical integration, (2) the company’s flat management structure, and (3) exceptional communication and coordination throughout the business system – allow Zara to successfully execute its â€Å"Very Quick Fashion Follower† business model. Each of the three make the grade of being Valuable, Rare, costly for competitors to Imitate, and for which the company has Organized to take advantage. Extensive Vertical Integration: Zara prides itself in its vertical integration, with near full control over its value chain through to the end-user. The company owns or closely controls its manufacturing and distribution facilities, manages its own logistics and transportation, and wherever possible owns its own stores (except for in markets with high risk or barriers to entry). This integration brings value primarily through speed-to-market, as Zara has achieved significantly shorter cycle times than its peers. Full vertical integration is rare in the apparel industry, which typically sees companies foregoing direct involvement in elements of the value chain (e. g. , H&M outsourced all of its production, and Benetton sold the bulk of its production through licensees). It would be extremely costly for a competitor to imitate Zara’s vertical integration, and even if they were able to do so it is unclear how much or how soon they would profit from it, as much of Zara’s advantage comes from the degree to which it has developed its integrated organization over many years. Flat Management Structure: While the drive, insight, and guidance provided by founder Amancio Ortega and other top executives have obviously been crucial to the success of Inditex, it is the structure and incentives they have put in place that truly drive Zara’s exceptionality. Zara’s management structure is very flat, with autonomy and significant incentive-based compensation for store managers, thus closely aligning their interest with that of the company. This structure adds value to the company through diligent hands-on management at the local level, something so rare that Zara’s CEO noted that the availability of store managers capable of handling these responsibilities was â€Å"the single most important constraint on the rate of store additions. † The structure would be highly difficult for ompetitors to imitate, as it has been built into the culture and processes of the company over several decades. Zara has certainly proven that it is able to organize around the flat structure model – in fact many of the company’s business processes depend on the communication and input of enabled employees at the edges of the business system. Exceptional Communication and Coordination: From early on, Zara developed a focus on com municating and coordinating activities up and down the value chain and across functions. This capability focused on speeding important information on customer preferences and trends to the store network, and feedback on successful and unsuccessful products back up the line to headquarters. Exceptional communication and coordination are crucial to maximizing the value derived from Zara’s vertical integration and flat management structure. A look at the more disjointed businesses systems of peers such as The Gap and Benetton demonstrates how rare it is for all of a company’s capabilities to simultaneously reinforce each other, and how difficult it would be for them to imitate Zara. Zara has successfully organized to coordinate its activities around the fast communication of accurate information – about designs, customers, competitors, and micro- and macroeconomic factors – both up the line to top management and to the edges of the network where store managers and employees interact with its customers. Each of these three capabilities passes the VRIO test, indicating that they are indeed key competencies for Zara. Four Actions Framework In order to understand how Zara created a new value for both the buyer and the company, we utilize the Blue Ocean 4 Forces Analysis. Starting with what factors Zara raised above standard, we see what is also Zara’s key resource, the company’s application of vertical integration. While Zara is involved in both backward and forward integration, what sets it apart is precisely its backward integration into manufacturing. For instance, its competitors Gap and H&M are both practicing forward integration and unlike Zara, outsourcing their production. Zara is also constantly in communication with employees at the edges of its business system such as store managers in order to better identify and track customer preferences and trends. The company encourages increased frequency of customer visits with its short cycle times; customers flock to the stores in order to catch the current fashion trends and product lines. In addition, the company also raised responsibility and accountability for store managers by hiring experienced employees promoted within which the CEO believed was a necessary judgment especially for store additions. Zara increased market saturation leading to better economies of scale thus significantly cutting costs and raising higher awareness and increasing sales. On the other hand, Zara reduced several factors well below the industry standard in order to cut costs and increase customers’ willingness to pay. For instance, the company decreased the failure rate for new products with its intensified product testing program which included store-level personnel in the process. Zara also reduced its cycle time for design which enabled the company to offer the customer new designs in four to five weeks and existing products in two weeks; the industry standard for this process was six months for design and three months for manufacturing. A pioneer in its industry, Zara proudly enjoyed engendering revenues at full price with only 10%-15% of its sales generated at discount prices compared to its European industry at 30%-40%. Lastly, Zara reduced its ad spending below industry standard at 0. 3% of its revenue while its competitors advertised 3%-4%. Although it is relatively unlikely for an apparel company to create factors that its industry has never offered, Zara formed a distinct vision among its competitors. The company was the first within its main rivals to saturate international markets as fast as it did. Zara is a global apparel retailer with a truly international scope. While from 1980’s to 2011 H&M added eight countries to its international expansion, and Gap five, while Zara was at thirty two countries. In the competitive apparel industry, Zara managed to eliminate what its competitors continuously took for granted. The company focused on a flat management system which allowed capturing trend preferences directly from the customer and applying to mass markets. Eliminating the separation between merchandising and manufacturing was especially beneficial to a fast and productive design team. Strategic Vision Based on our analysis, Inditex has proven to be financially stable and can successfully manage its capital invested in its operations. Therefore, to maintain their sustainable growth and continue to add value, Inditex should use their commercial team’s micro/macro evaluations to seek new country market opportunities. They should to continue to use one of the three modes of entry; company-owned stores, joint ventures, and franchises, to open additional stores in European countries that have high apparel markets. Italy, Germany and United Kingdom are markets that show promise, especially Italy because of its high per capita spending on apparel. As discussed in our analysis, one of Zara’s core competencies is its extensive vertical integration, and because the case mentioned a second distribution hub already being built in Zaragoza, Spain, it can support additional European stores without being subject to diseconomies of scale. Increasing the density of Zara’s store locations in Europe will achieve logistic efficiencies. Zara keeps transportation costs low on the supply side, since most of the production takes place in Spain. Efficient distribution and inventory systems help Zara minimize costs. Demand based production means there is very little inventory in Zara’s supply chain, which results in lower working capital requirements and lower supplier opportunity costs. Another market that has potential is the United States. With changing consumer behaviors as a result of globalization, there are growth options available for specialty retailers like Zara. For example, Gap’s current ratio of 2. 18 is higher than Zara’s 1. 71; however Zara’s 13. 10% net profit margin is preferred over Gap’s 8. 21% (as illustrated in Exhibit A-1). Therefore, as long as Zara can maintain its low production and overhead costs, which are high for its competitors, they should be able to compete in the US market. Inditex should invest in prime locations in major cities such as New York, Chicago and Los Angeles to maintain its positioning strategy. Zara should most likely develop a second central distribution center in America. Zara can strategically locate its central distribution center in or near countries where manufacturing can be done with cheap labor cost, such as Mexico. The close proximity of the distribution center to the American market will decrease logistics and help maintain Zara’s model of fast fashion and economies of scale. Internet retailing is another market opportunity that Inditex should consider. Zara can reach consumers faster and easier in the countries they are trying to expand into. This method can also help gauge consumer preferences from country to country. The internet retailing market will increase sales revenues and has a very low business risk considering the products are already being produced for the retail stores. Zara’s online shop would complement its stores, adding an extra level of service for its customers. It would also expand its customer base to reach areas where stores are not located. Patrons can shop from anywhere in the world and at any time of day or night. This essentially means more shoppers and more sales for the business. Based on our analysis, the monopolistically competitive industry structure is not the key factor driving Zara’s significant performance. Zara has leveraged its key resources to combine low price with product differentiation to create value and succeed in this industry structure. Zara has been able to increase the customer’s willingness to pay by constantly rotating its merchandise and creating a climate of scarcity and opportunity for customers. In conclusion, Zara has the potential for sustainable growth due to its competitive advantage and its ability to increase customer’s willingness to pay while decreasing its opportunity cost. The company keeps its operating income high, has a solid business model with unrivaled synergy and has various opportunities for expansion in the retail industry. Zara must continue to re-invent their image in order to stay fresh in the apparel industry and as long as they maintain their core competencies, they will continue to succeed. Zara Fast Fashion Inditex – Zara: Fast fashion Case analysis Company Structure and Goals Overview Zara’s vision on growth and global strategy -Building up fixed assets -Vertical integration -No advertising, creating premium stores -Fashion follower – QR to fashion trends -Strongly customer oriented -Stable growth -Markdowns half the average (15% as supposed to 30% ) -Pricing market based Business model: -Vertical operations and downstream activities -Multi-chain concept -Creative design team -Competitive advantage – Sustainable growth As attachment: Porter’s Five forces; Company structure; Financials) Problem Statement Growth challenge – 20% per annum expected, 76% of equity value implicit on Inditex’s stock price was based on expectations on future growth. Failure to deliver expected growth results might cause a serious offset in company’s market capitalization. Room for non-local growth – in average a retailer was present in 10 countries while e. g. a pharmaceutical company averaged operations in 125 countries. Problem statement is: In what geographical area(s) should further Zara expansion follow? Should there be another logistics-distribution centre created as increase of operations might cause dis-economies of scale? Should it acquire additional chains given the complexity of managing those and the risk of own-product-replacements? Preserve the margins; (visible threat to the sustainability of Index’s competitive advantage) Evaluation of the alternative solutions 1. Growth challenge: Notes: not much potential on the local market; -different markets require different positioning -though costs grow as distance grows, prices also change (margins are kept) -50% of all export is to developing countries -Zara shopper visits the store 17 times a year, average is 2-4 times -Creating a climate of scarcity and opportunity in stores Evaluate growth options in different markets: Spain Europe str4 – production in North Africa, turkey and East Europe. US – production in Mexico and the Caribbean subjected to retailing oercapacity, less fashion-forward than Europe, demands larger sizes and exhibits considerable internal variations Japan – no quotas to restrict imports, produced in China. – teenage market segment considered as the trendiest in the world Italy – fashionable, visit stores frequently and spend more on clothing 2. Change in marketing strategy Current: Three types of entering a market: company owned stores, joint ventures, franchising Strategy is standard across the countries -No adv -One big shop central city (capital) Followed by smaller ones (spreading around the country) -Shop windows used excessively -Products do not differ much from country to country -Model is downstream -No knowledge is shared -From design to stores within 4-5 weeks , industry average 9 months -Due to product testing, failure rate only 1% compared to industry average of 10% 3. Change in pricing strategy Current: Prices vary on the different markets, due to transport costs (all supplied from the base in Galicia) – this changes positioning Lower mark-down than industry average

Critical Thinking on Values and Beliefs

Bipolar depression or in other words known as maniac depression disorder is a psychiatric diagnosis which categorically describes mood disorder defined by presence of episodes of abnormality elevated energy levels , mood, and cognition with or without depression episodes. Moods which are elevated are referred to as mania from a clinical point of view and as hypomania if it is milder. Commonly individuals who go through maniac episodes experience depression episodes, or mixed episodes or symptoms, whereby features of both depressions and mania are present at the same time. Periods of ‘normal’ mood separate these episodes though in some individuals, mania and depression may change rapidly, a situation known as rapid cycling. Psychotic symptoms such as hallucination and delusion are sometimes observed as a result of extreme episodes of maniac. Onset of full symptoms occurs late in young adulthood or adolescent stage.(Bendelow 2005) Abnormality episodes are associated with disruption and distress and a high risk of suicide, especially in times of depressive episodes. In some cases it has been associated with goal, creativity, positive achievement and striving while in others it can be a devastating long term disorder. Genetic and environmental factors have contributed substantially to the development of bipolar depression. Mood stabilizing medications is used in the treatment of mood episodes and psychiatric drugs are also employed in the management of maniac depression. (Borde2000). Involuntary commitment may be employed in serious cases where there is a risk of hating oneself or others. Widespread problems such as stereotypes, prejudice and social stigma exist against individual diagnosis, for example bipolar disorder. Signs and symptoms of mania episode patients Mania is the primary characteristic of bipolar disorder. It is characterized by distinct periods of high degrees of mood, which can take euphoria form. The patient commonly experienced increased energy levels and decreased desire to sleep. Patient’s speech was pressured and experienced racing thoughts. He was easily distracted and attention span was low. Judgment was impaired and engaged in behavior that is quite abnormal. The patient was found to indulge himself in substance abuse, particularly alcohol and other depressants such as cocaine or other stimulants or other sleeping pills. Patient’s behavior was intrusive, intolerant, and aggressive. He was feeling out of control or unstoppable as if he has been chosen on a special mission. Experienced increased sex drive. He had almost broken up with reality, which is his thinking was affected along with moods. Experienced severe anxiety and he was very irritable.(Dale2005) Causes Causes of these disorder vary from one individual to another .Studies have shown a substantial genetic contribution and influence from environmental factors. Genetic factors of chromosomal region and candidate genes were found to contribute to the mania affecting the patient, though the results were not consistent. Genetic linkage studies followed by fine mapping to search for the phenomenon of disequilibrium linkage with a single gene, then DNA sequencing were observed for the genes P2RXY and TPNI. Meta-analyses linkage studies detected significant genome-wide findings on chromosome 6q and on 8q .DGKN, a locus in a region rich of genes of high linkage disequilibrium on chromosomes 16p12 and also a single nucleotide polymorphism in MYO5B. (Busfield2002)Comparing these studies with new ones suggested an association of ANK3 and CACNAIC, believed to have relations to calcium and sodium voltage-gated ion channel. The patient’s advanced age paternally was linked to his disorder. Melatonin activity Studies carried out on the patient indicated a hypersensitivity of melatonin receptors in the eyes; which was a reliable indicator of the bipolar disorder, Melatonin receptor hypersensitivity to light during sleep, which was resulting to rapid drop in sleep time levels of melatonin compared to controls. Valporic acid which is a mood stabilizer was found to increase transcription of melatonin receptors and lower eye melatonin receptor sensitivity.(Davidson 2008) Psychological processes Findings indicated that period leading up to mania was characterized by anxiety and depression at first, isolated sub-clinical symptoms of mania including racing thought and increased energy levels were observed. The patient was found to hold certain beliefs about himself, his internal state, and his social world which made him vulnerable during changing mood states in the face of relevant life event. Sub cuticle difficulties and subtle frontal-tempered difficulties related to planning, attention control and emotional regulation were found to play a significant role in the cause of the patient’s disorder. (Bickeribach 1999) Overall increase in impulses and levels of activation was also observed in the patient. Management A number of psychotherapeutic and pharmacological techniques can be employed in the treatment of bipolar disorder. For instance mania episodes present in the treatment of bipolar 1 may require hospitalization .Long term impatient stay are now less common due to deinstitutionalization hospital admission accompanied by support services which include visits from community members belonging to a mental health team of Assertive Community Treatment team, intensive outpatient programs and patient-led support group, and supports that its employment can help; which may also be referred to as partial- impatient program.(Bordo 2000) Psychosocial Psychotherapy which is aimed at alleviating core symptoms ,recognition of episode trigger, reduction of negative expressed emotion in relationship, recognition of personal symptoms before full-blown recurrence and practice of the factor that lead to maintenance of remission cognitive behavior therapy appeared to be more effective in regard to the residual depression symptoms. Medication Mood stabilizer medication such as lamotrigine or lithium carbonate is the mainstay of treatment. (Davidson 2008)Lamotrigine has been found to be good in depression prevention, while lithium is the only drug proven to reduce suicide in bipolar patient. Lithium and lamotrigine comprises a variety of unrelated compounds which have indicated positive result in the prevention of relapses of manic or depressive episode. Lithium, which is as widely used as vodium valporate is also used as an anticonvulsant. Treatment in an acute mania episode requires the use of antipsychotic medication such as a typical antipsychotic quietapine and olanzapine and the chlorpromazine use of antidepressants in treatment of bipolar depression has been debated, with some studies reporting a worse outcome with their use triggering manic, mixed episodes or hypomania especially where no mood stabilizer is employed.(Dale 2005) However, most of the mood stabilizers have a limited effectiveness in episodes of depres sion .Rapid cycling is made worse by antidepressants unless there is adjunctive treatment with mood stabilizers. Prognosis For a patient of bipolar disorder, prognosis results from good treatments which in turn result from accurate diagnosis. The patient affected with bipolar disorder was having periods of normal or near normal functioning in between episodes. Prognosis entirely depends on many factors such as the right medicine with the right dose of each other; positive relationship with a competent therapist and medical doctors; comprehensive knowledge of the disease and its effect and good physical health which includes nutrition exercise and regulation of stress level. (Birke 2002) Values and beliefs relating to the practice on patients and families/ or carers Positive relationship-a well coordinated and organized relationship which practices openness and transparency is of greater importance to the patient. Family members and loved ones belonging to the patient affected by bipolar disorder, have issue that results to finding a way to maintain a loving relationship through the long process of having effective treatment and achievement of greater stability .Sustaining such a relationship is made difficult by financial insecurity, alcoholism, infidelity, addiction, abusiveness, criminal activity and other factors that may be related to the illness. To understand and untangle these complex array and emotions that surround the patient, in the context of a loving relationship is difficult and takes much effort and time.(Busfield 2002) Both parties in the relationship should acquire insight, make difficult changes and develop coping strategies though sometimes separation or divorce is considered when stresses are too great. ‘Significant other’, a group that includes a spouse, girlfriend, boyfriend, parent, partner, sibling child or other near loved ones of the patient is involved. The member belonging to the ‘significant other’ should not be diagnosed with the disorder. ‘What is the nature of identity’ and ‘are certain values systems (cultural, religious and institution) healthier than others?’(Davidson 2008)The patient’s we are discussing attends a fairly strict church and believe strongly that he is a sinner by nature. These view of self-as- sinner is actually in sharp contrast to the view of human nature and the identity of the patient. Peopler are believed to develop psychological maladies and starts acting badly on losing contact with their good inner nature after constant bombardment by family cultural ideas and commandments. ’Organisimic Self-Valuing’, an idea that people vary from one another in terms of what they like, what is better for them at the level of organism and their core-being. If only left to themselves to choose, people would only choose what they preferred. How values and beliefs underpin the practice Religion- research was found to have quite supporting role in the management of the disorder. Patient were found to be willing to share their spiritual belief, but only if they had the believe that physicians would respect their values. An important and understudied area is the degree to which physicians can believe in prayers. Findings have suggested that patients and physicians have a shared belief concerning the roles of spirituality, religion, ad prayer in illness, and health studies have indicated that often involvement in religious activities is associated with reduced risk of depression. Two dimensions of religion, participating in a religious community and personal devotion are correlated with reduction of depression.(Dale 2002). Rates of drug abuse and alcohol are generally lower in groups that follow organized religious activities. Feeling of deep personal devotion and conservation Christian values correlate with relatively reduced risk of alcohol or substance abuse and dependence. Deadly anxiety is less among individuals who practice a spiritual activity in which belief is an after life plays a central role in the reduction of stress. In conclusion positive practice of values and beliefs has been found to play a significant role in the reduction of depression. Patients participating in religious activities show significant reduction of depression compared to non-religious. Positive relationship between members of the family also helps a great deal. REFERENCES Bendelow, G. (Ed.) (2002). Women, Health and Healing: The Public/Private Divide. London: Routledge. Birke, L. (2002). Anchoring the head: The disappearing (biological) body. In Gillian Bendelow (Ed.) (2002). Women, Health and Healing: The Public/Private Divide. London: Routledge. Bickenbach, J. (1999). 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