The article analyzes the ways of operational management in large organizations, whose deliveries must be regular worldwide. Thus, using the example of Zara and Kohl stores, the author analyzes the most effective strategies that allowed companies to realize themselves as profitably as possible for production. The managers of Zara attempted to locate offices and shops in the most prestigious and profitable areas, which not only created credibility for the brand but also increased the purchasing power of potential clients (Mihm, 2010). At the same time, the store has a division of goods into subcategories, ranging from women’s clothing to bed linen and rags. In addition, management has moved to a franchise type of business, and deliveries are carried out in an organized way through the headquarters, that is, from one point (Mihm, 2010). As a result, the Zara mechanism operates smoothly and almost uninterruptedly, and potential buyers generate more revenue than close competitors.
Interestingly, the Kohl store operates in the exact opposite way to the previous one. Firstly, brand management did not organize a franchise, but instead created several brands where the main business was the parent. Offices and shop buildings are based in small towns and villages, and the area of the city is not critical. Based on this, the guide does not focus on the specific income of the consumer but focuses on their quantity. There are only a few shops in small towns, and all of them may be owned by Kohl, but under different brands (Mihm, 2010). Thus, the company’s revenue increased several times compared to its competitors. At the same time, Kohl has certain risks, such as non-unique clothing, mediocre quality of individual products, or inflexible prices. However, it is precisely because of the ubiquity of the company, hidden under different brands, that such shortcomings are leveled. On top of all that, both corporations continue to grow, proving that both strategies are the most effective and applicable in practice.
Reference
Mihm, B. (2010). Fast fashion in a flat world: Global sourcing strategies. International Business & Economics Research Journal, vol. 9, №6. Pp. 55 – 63.