Fig. 1: Tensions Zara Faces to Converge Around 'Best Practices & Diverge Based on Local Conditions
China Operation
Spanish H.Q.
Divergence
Convergence
+
-
+
-
Reject global innovations
Become change averse
Contravening global norms
Best practices
Idea sharing
International trends
Values
Global culture
Processes
Innovation ✅
Capitalise on local context
Innovation ✅
Mirrors local context
Maintaining national/regional practices
Innovation ⛔
Maintain own organisational/local culture
Converge - wrong for that organisational context
Smaller organisations = copy
Innovation ⛔
Not learning from other cultures
Pressures
Internal
External
Retain decision making @ The Cube
Integrate international operation/workforce
Fear of localisation '2 brains'
PESTLE factors
Global events/trends
Global awareness/knowledge
Existing business model works (so far!)
Maintain status-quo
Remain centralised
Developed vs developing countries issues
Free market/competition
Competitors
Retain control/coordination
Current supply chain model = competitive advantage
High-tech/extra capacity factories based close to Cube/distribution center
Keep costs low
Be outward looking
Make a profit
Retain Zara values/mission
Not dilute Zara brand
Be innovative
Remain #1 clothing retailer
Remain current/competitive
International pressures/factors
Human Rights Issues
Balancing profit & social justice
Competing Forces to Conform
Internal
External
PESTLE factors
Global Trade Environment
Global power relations
Communism vs Capitalism
Parent culture' vs 'global culture'
Western vs Eastern Culture
Western vs Eastern business practices
Chinese Government: Censorship/'self-interests'
Zara/Inditex = Powerful global organisations
Powerful organisational actors - Ortega/Spanish SLT
Innovation ⛔
Innovation ⛔