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Fig. 1: Tensions Zara Faces to Converge Around 'Best Practices &…
Fig. 1: Tensions Zara Faces to Converge Around 'Best Practices & Diverge Based on Local Conditions
China Operation
Divergence
+
Capitalise on local context
Innovation :check:
Mirrors local context
Maintaining national/regional practices
-
Reject global innovations
Become change averse
Contravening global norms
Innovation :no_entry:
Not learning from other cultures
Spanish H.Q.
Convergence
+
Best practices
Idea sharing
International trends
Values
Global culture
Processes
Innovation :check:
-
Innovation :no_entry:
Maintain own organisational/local culture
Converge - wrong for that organisational context
Smaller organisations = copy
Pressures
Internal
Retain decision making @ The Cube
Integrate international operation/workforce
Fear of localisation '2 brains'
Existing business model works (so far!)
Maintain status-quo
Remain centralised
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
Balancing profit & social justice
External
PESTLE factors
Global events/trends
Global awareness/knowledge
Developed vs developing countries issues
Free market/competition
Competitors
International pressures/factors
Human Rights Issues
Competing Forces to Conform
Internal
Parent culture' vs 'global culture'
Western vs Eastern business practices
Zara/Inditex = Powerful global organisations
Powerful organisational actors - Ortega/Spanish SLT
Innovation :no_entry:
External
PESTLE factors
Global Trade Environment
Global power relations
Communism vs Capitalism
Western vs Eastern Culture
Chinese Government: Censorship/'self-interests'
Innovation :no_entry: