Lord Ashcroft International Business School
Cross-Cultural Issues in International Business
Module Leader: Clive Puttock
Academic Year: 2012/13
Name: Xiao An Zong
Major: Business Management
It analysis the Spanish brand of Zara start their business in the china and the management style related the culture are difference, the company was established in sprain in 1975 and then open the 1671 retails stores in 400 cities over the world. It is an international company, therefore it’s not a luxury brand, and the general public consumers can buy it clothing and each of these subdivided in Lower Garment, Upper Garment, Shoes, Cosmetics and Complements, as well as children's clothing (Zara Kids). It brand was from the Inditex group. The brand was entrance in china’s market because the china is the biggest market in Asia, the cheaper labor force and the cheaper material such as cotton and leather are much inexpensive than the others European country. that elements can make the brand’s successful in china’s market.
The Zara was successful in international market and the corporate culture is significant with the company. The team work and the information sharing are always used between the Zara’s designer and administrative staff, focus on retailers’ sales and consumer insight into data review are the main of the brand achievement of elements. The brands was pay more attention to design different styles of clothing in different markets, indeed the Chinese are always thin and shorter than the Spanish and Europe country the company will production the appropriate clothing with Chinese consumers, and Zara innovative corporate culture is its unique market positioning and marketing strategy, combined with the luxury changing fashion, quality and popular products together, Zara select low-cost strategy in the overall pricing, Zara target group is 25-35year-old customer, the company frequently updated fashion products and low-cost products to satisfy the needs of most people. Organization: ZARA Company use devolution of power system. - any unit or group work, have their own autonomy. - in addition, employees have more responsibilities than other clothing stores. They trust judgment; their employees and they take care of it. Advertising and product closed, a large contact chain: in fact, advertising all over the world take up new desire or the tendency of the people
ZARA Company use a system of decentralization.
* Any unit or group work, have their own autonomy.
* In addition, employees have more responsibilities than other clothing stores. They trust judgment; their employees and they take care of it. * Advertising and product are very closed, a large contact chain: in fact, advertising all over the world take up new passion or tendency, for instance, they will find what kind of clothes ZARA will sell like ZARA.
Used the HOFSTEDE theory to analysis the different culture between china and Spain related the Zara
Uncertainty avoidance: What is meant by a degree of people like the rules, laws and standard operating procedure, in order to reduce uncertainty and ambiguity?
In comparison the Spain at score of 86 and china is 30,the Zara was in middle between china and Spain, the motivation of job security are much higher in Spanish company and Zara but in china the company hasn’t the insurance of employer. Because the china is a Developing country but the Spain is a development country. China is comfortable with ambiguity, the Chinese language is full of the meaning of ambiguity, and it may be hard to follow for people in the Spanish. The Zara will appropriate with china’s situation. The level of explicit rules high in Spanish and the china is low, in the same way Zara was in the middle with it. Focus on the working environment as shown the employer was working in Spain need to hard work but in china the staffs are...
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