Control System Design

 

Background Information:

I work at Zara, a multinational fashion brand known for its fast-fashion business model. Zara is one of the brand of the Inditex group and is one of the well-renowned and most successful brand of the Inditex group. As I am working there, I know company's main goals, tasks and its operations. Zara's main goal is to provide trendy and affordable fashion to its customers and to lead the retail market as well. Zara's focus is to practice sustainability to contribute to the environment.

Output control: 

Output control is suitable for Zara's goals, tasks and operations. It is suitable mainly in terms of sales targets and revenue. Zara set specific sales targets and inventory turnover rate. Zara remains up-to-the-date among the fashion industry by adapting trends fast and renewing its collections often. Their results are measured and compared against the key performance indicators to find ways to optimize them. They do this by observing the number of new clothing releases they get and how many of them are expensive. Through continuous update of its designs based on these data, Zara remains customer-oriented in the ever-changing fashion world. 

Behavioral control: 

Behavioral control at Zara is centered on achieving on one hand, employee understanding and adherence to company's values and on the other, enforcing the company's processes. Through business training and well-functioning communication routes employees has the freedom to instantly decide the strategies that work well with Zara’s fast-fashion model. It is from design to distribution that you may notice Zara put in every effort to meet the market necessities in terms of product launch and adaptability. Incorporated with open feedback cycle between store managers and designers, the recent adaptations to production forecasts can be done in minimum time, thus, creating a culture of responsiveness and innovation. Basically, these behavioral control actions teach employees to identify a purpose and be committed which Zara scores very highly in the modern fashion world.

Clan control: 

In Inditex, clan control means the building of a kind and inclusive atmosphere where everyone wins a strong position in the team and gets the appreciation deserved. With the people of 182 different nationalities, it embraces the diversity and equality in the company. Women employees make up 75% of the workforce, which shows equality. The company's horizontal structure of an organization facilitates transparency and team-oriented culture; providing everyone the opportunity to participate. They designate Diversity Champions for each location to implement and monitor diversity policies. Essentially, Inditex achieves a sense of belonging and unity, and employees feel good and they get motivated because they are valued and appreciated.

References:

Roll, M. (2021, November). The Secret of Zara’s Success: a Culture of Customer Co-creation | Martin Roll. Martin Roll; martinroll.com. https://martinroll.com/resources/articles/strategy/the-secret-of-zaras-success-a-culture-of-customer-co-creation/

Strategyzer. (2023). Zara Business Model. Www.strategyzer.com. https://www.strategyzer.com/library/zara-business-model

Inditex. (2023). 5.1. Our people Related material topics: Stakeholder engagement; Quality of employment; Human rights; Safe and healthy environments; Talent management. https://static.inditex.com/annual_report_2022/pdf/PEOPLE.pdf

Danziger, P. N. (n.d.). Why Zara Succeeds: It Focuses On Pulling People In, Not Pushing Product Out. Forbes. Retrieved April 11, 2024, from https://www.forbes.com/sites/pamdanziger/2018/04/23/zaras-difference-pull-people-in-not-push-product-out/?sh=7ec7b0ea23cb

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