The influential factors behind the growth of globalisation

The influential factors behind the growth of globalisation Current business environment is more volatile and dynamic. There are different reasons behind this transformation in the world. Globalisation is one of the main factors that behind the above change. We can define globalisation as a process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. Earlier existed boundaries between countries in the world have been dramatically reduced due to the globalisation. This is seen as more than simply a way of conducting business- it can be considered as a continues process. This is not a new force that emerged few years back, it has been taking place for hundreds of years but it has speeded up enormously over the last half-century. In History, in a similar manner, the techniques of industrial manufacturing lead to create the process of industrialisation, now that process has linked with the globalisation and has created new environment of operating businesses. There are few influential factors behind the growth of globalisation. Increase in communication technology is one of them. TV, telephony and the internet have permitted information and ideas to travel quickly. As an example USA businesses can have a call centre in Philippine or India answering calls from local customers. Another factor is improvements in the transportation sector. It has become more quick and cheap. People can go for holiday all around the world. Workforce can seek for a job opportunity available in another country. Businesses can easily ship their product and raw materials all over the world. Another main influential factor behind the growth is trade liberalisation. This has been excelled due to the Laws restricting for free trade and fo reign investment movements have been relaxed between countries. Some governments even offer grants and tax incentives to attract foreign companies to invest in their country. These actions have lead to create free trade zones in the world. In other words theses are known as trade blocs where groups of nations who form an economic union or customs union. Governments follow friendly rules and regulation within those regions for trading purposes. For example the European Union (EU) aims at not just a customs union but also economic union by way of harmonisation of taxes, establishing a common monetary policy and moves towards a single currency. EU has now expanded over 26 member countries and benefited to combined population of 356 million. Trading blocs generally increase the integration and interdependency of the member economies which is speed up the globalisation process. As a result of trading blocs trade amongst the members has increased, which ultimately increase the world trade capacity. Further it gives the opportunity to businesses better access to effective capital and labour markets which increases the movement of labour within the countries and increase investments. For example Poland workers have been well recognized in the UK and Ireland labour markets. As result of the globalisation process international trade has increased dramatically in the 20th century. Many countries get more chances to participate in the world trade. As a result of increase in Foreign Direct Investment (FDI) many labour oriented countries get access to capital market and vice -versa. Their natural resources value has increased and countries have more capability to use them to manufacture export oriented goods. Increase in international trade brings better standard of living through access to many ways of satisfying their needs and wants. Further it is argued that current development of trading blocs help international trade through making global negotiations easier, in the case of trade negotiations.   For example the EU will negotiate as a single trading block making it easier to push through practises which increase free trade. As per the following graph it is arguable that benefits of international trade have been equally distributed among the world population. Globalisation and increase in international trade is probably helping to create more wealth in developing countries and has affected to the balance of international trade. However globalisation is having a dramatic effect on the organisations for good or ill. Some positive impacts are as follows; Increase greater access to capital market. Inward investment by MNCs helps organisation to start new businesses locally and in foreign countries. This will provide new jobs and skills for local people. Companies can bring wealth and foreign currency to local economies when they buy local resources, products and services. Release of government regulation and establishing better infrastructure in the local economy attract foreign investments. China is well known for cheap labour compared to western countries labour cost. This has become a main reason for many organisations moving their businesses to China. Further investment friendly environment through strong financial support (Tax benefits, financial institutes) for new businesses, attract their cheap resources for other countries. Most of the western countries resources are fully utilised and market have become more matures, but there are emerging economies like China, India, Brazil and Russia which consist many untapped cheap resources. Therefore as a result of pressure built up from the Western markets, businesses now moving for those emerging markets. This process has been made easier and more comfortable due to the globalisation. The extra money created by these investments can be spent on education, health and infrastructure of the countries. (Corporate Social Responsibility activities) Achieve economies of scale. Economies of scale means the increase in  efficiency of production  as the number of goods  being produced increases.  Economies of scale lowers the average cost per unit through increased production since fixed costs are shared over an increased number of goods. Initially Adams Smith identified division of labour and specialization are the main factors that lead to economies of scale. However as Globalisation process increases companies get other opportunities to reduce their production cost and achieve economies of scale. Access to lower inputs and specialized inputs in different countries would bring the economies of scale. Costly inputs such as research and development, advertising, managerial expertise and skilled labor now can be outsourced to specialized countries and it will result in increased efficiency and lead to a decrease in the average cost of production and selling. Therefore economies of scale provides  big companies  access to a larger market with lower cost of production and greater margin for their products.    Globalisation increases awareness of events happening in the world. For example, the USA was quickly made aware of the 2011 tsunami in Japan and sent help rapidly in response. Globalisation may help to make people more aware of global issues such as deforestation and global warming and alert them to the need for sustainable development. The sharing of ideas, experiences and lifestyles of people and cultures. People can experience foods and other products not previously available in their countries. Globalisation has resulted in many businesses starting or buying operations in other countries. Companies that operate in several countries are called multinational corporations (MNCs) or transnational corporations (TNCs). Presence in different countries brings interaction with different cultural and social values. On this case business practices that are successful in local country could be act as negatively or positively under different cultural and social values. Therefore it is advisable to find answer to following questions before starting a new venture with another country. What are the main difference between cultures?, Are they matter of learning a new handshake, or do they go deeper than that?, Can cultural differences really have that much impact on the business deal? Etc. Finding solution for those questions is helpful for organisations to handle cultural differences in business expansions. For example language differences, the way they perceive time, traditional and religious believes etc. play a big role in Asian countries. When US and European base organisations move towards the Asian countries the above cultural factors could act as barriers for entry to those markets. In terms of communication US and Europeans are considered as low context cultures, language is direct and explicit, but when it comes to Asian countries they are known as high context cultures where language is indirect. Further as per certain cultural and social practices men dominate in the business sector than the women but in European organisation everyone gets equal opportunity to participate in the operations. Therefore when companies setup new business in a different culture, that company need to customise their corporate culture as per the local cultural values. As an example the US fast food chain McDonalds, large MNC which has nearly 30,000 restaurants in 119 countries, had a problem of sell ing beef burger in India due to the religious believes. Further they launched Mc Rice in Sri Lanka since rice is the main food in the Sri Lankan culture. Likewise multinational companies tend to customise their strategies to overcome certain social and cultural restrictions as well as implement new thing to take advantageous. In current business environment sometimes it is difficult to follow a global strategy for their operation in throughout the world. Therefore most companies tailor their management strategy and organisational structures to respond to the local factors. In other words local responsiveness is essential when a psychic distance is higher in two different countries. As a result of this new relationships will occur in managing businesses globally. Joint venture agreements, alliances etc. are common relationships that business partners follow to reduce their risk exposure in the current business environment. Designing of organisational structure and management style is important capture the opportunities available in the market. Some companies follow decentralised structure to increase the speed of decision making in the particular market. Some other companies follow a selective approach by some functions are retain in with the parent country and others establish in different markets. As exa mple GAP Inc.s designing function is conducted in centrally and manufacturing function has been outsourced to Asian countries. This mechanism has benefitted them through utilising Asian countries specialised capabilities of manufacturing to convert their design into practical product. Therefore globalisation process brings new organisational designs and management styles to the market. Local markets work force have now increased and well interact with the MNCs. Earlier they were only involved for lower level operations but now management representation also has increased. This is a good advantage for MNCs to take advantage of innovative skills of the local employees since they have more experience in the particular market. Microsoft has given more concentration on Indian market since that workforce well recognised for IT skills. From employees perspective also this will be a good opportunity for them to utilise their skills effectively. Recognition, income level, career opportunities, opportunity to obtain foreign exposures etc. will be increased through working in multinational company. Their innovative concept could bring to the world market through the help of MNCs. So far this report addressed only the good side of the Globalisation and not that mean it doesnt have a dark side. Following are few negative impacts of globalisation Globalisation operates mostly in the interests of the developed countries, which continue to dominate world trade at the expense of developing countries. The role of developing countries market has become to provide the North and West with cheap labour and raw materials at lower cost. There are no guarantees that the proper benefits from inward investment will benefit the local community in developing countries. Often, profits are sent back to the MNCs parent countries. This has become easier for them due the tax relief offered by the local governments. Further these MNCs with their massive economies of scale, possibility to drive local companies out of business. After that If these MNCs realised that it becomes cheaper to operate in another country than the current one then they move for better opportunity by closing down the factory and make local people redundant. This would be a major hit for the local economy. Increase environmental population due to the high industrialisation. Globalisation is viewed by many as it affects to the worlds cultural diversity and it feared that it may westernise the local traditions and languages. After considering the above negative sides of the globalisation we can state that it is not helping to close the gap between the worlds poorest countries and the worlds richest. In the case of trading blocs, it is argued they create conflicting parties fighting for regional interests not for every ones benefits. As per the World Trade Organisations statistics, the worlds poorest countries share of world trade has declined by more than 40 per cent since 1980 to a mere 0.4 per cent and the poorest 49 countries make up 10% of the worlds population, but account for only 0.4% of world trade. (Online, www.gatt.org) This clearly shows benifits of globalisation has not been distributed equally. Further its doubt that MNCs pay fair amount for the developing countries resources. As a result of these negative reasons poor peoples living standards remain same and the gap between poor countries and rich countries wont reduce. Conclusion Globalisation has a major impact on the business environment as well as the people general life pattern. Within the current knowledge economy, knowledge workers have more opportunities due to the globalisation. Their career is not static as compared to the traditional workers. They always seek better opportunities in the market and as a result of globalisation their career path has extended even for different countries. However, as a MNC, they have more responsibilities and accountability for their actions in the different markets. As a good corporate citizen they must give their focus on improving local social and educational life the local people also. Further they must ensure fair consideration for the resources utilised the developing countries. These will ultimately useful to break the bridge between rich and poor countries.

Marketing and Zara Essay

1. Background According to BusinessWeek, â€Å"Zara was a fashion imitator. It focused its attention on understanding the fashion items that its customers wanted and then delivering them, rather than on promoting predicted season’s trends via fashion shows and similar channels of influence, which the fashion industry traditionally used.† 5 Zara, the fashion retail chain, is a subsidiary of Inditex Group owned and managed by Spanish tycoon Amancio Ortega. Inditex includes several major brands, namely, Zara, Massimo Dutti, Pull and Bear, Oysho, Bershka, and Stradivarius. The group headquarters is located in La Coruna, Spain. It was here where the first Zara store was launched in 1975. Presently, there are about 1,500 Zara stores around the world. Zara employs around 80,000 people. The group recorded revenues of â‚ ¬ 9,434.7 million (approximately $13,068.8 million) during FY2008, an increase of 15.1% over 2007. The operating profit increased by 20.1% to â‚ ¬ 2,148.8 million in FY2008. The net profit, during FY2008, increased by 24.5% to over FY2007 toâ‚ ¬ 1,257.8 million (approximately $1,742.2 million).7 Zara’s claim to fame surfaces from the fact that it needs, on an average, two (2) weeks to develop and market a new fashion product compared to the industry average of six (6) month cycle. In addition to this, Zara is committed to showcasing around 10,000 new designs annually, in a fast and scarce manner, which gives it a constant new look and brings back customers to the stores. Owing to its unique supply chain management, use of information technologies and innovative management strategies, which is a must to survive the highly competitive fashion industry it has managed to come out on top year after year. The major competitors include H&M, GAP and Benetton. Some of the efficient strategies adopted by Zara are broadly the policies of zero inventories, Just in Time systems, contract manufacturing for small orders, decentralizing warehouses to deliver p roducts and above all close monitoring of the fashion trends. Above all, they had few unique strategies, mainly, zero advertising, where in Zara chose to open new stores rather than advertise and, the concept of shunning outsourcing to low cost development centers as it would result in dilution of the high quality fashion that Zara represents. Initial success for Zara is mainly attributed to featuring low priced lookalike products of more popular, high end fashion brand. Following  this success, they adopted new design and distribution method. Since the fashion industry product has long lead times, to the tune of six months, Zara aimed to reduce this and also minimize the uncertainties associated with fashion retail. Zara developed the concept of â€Å"Instant Fashion† that allowed them to respond more quickly to consumer tastes and emerging trends. The strategy helped them to bring in new products to the shelves quickly, in small quantity and produce more if demand occurred. This enabled them to minimize inventory, gauge demand and re move uncertainties. Later on, they brought in information technologies to further revolutionize the distribution processes. These helped Zara to developed fashion lines based on market trends and also, produce its own designs through a team of 200 in house designers. The introduction of information technologies helped them increase the efficiency of state of the art production system and warehousing mechanisms. The stores and warehouses were linked electronically, which facilitated the exchange of real time information thereby allowing them to minimize risk and capital outlays by reducing inventories. This leaner and responsive system helped rotate the stock quickly and also, improved sales as the customers would return to stores every two weeks to check out new designs and purchase as the design would not be available after the time frame. International expansion of Zara started with Portugal in 1988, and since then they have opened more than 1,000 stores globally. This has been done through company owned showrooms, joint ventures and franchisee models. Zara’s Products Currently, Zara caters to men’s clothing and women’s clothing. Each of these sections has 5 subsections, which include lower garment, upper garment, shoes, cosmetics and complementary products. The 50-60% of the demand is produced at the beginning of the season and the remaining is manufactured in season. This sometimes results in either stock outs or markdowns but compared to the competition the number of times the service failure happens is quite low for markdowns. Hence, if the design does not suit the customers’ tastes then it is taken off the shelves and further orders are cancelled. This leads to new designs and above all, no designs stay on the  store floor for more than four weeks, which encourages consumers to make purchases. When compared to the competitors, average number of times a customer visits Zara is 18 times a year compared to 3-4 times for the competition. 2. Mission, Vision, Values and Goals Zara’s Mission Statement is as follows,  Ã¢â‚¬Å"ZARA walks at the pace of society, dressing ideas, trends and tastes that society itself has matured.† Zara through its unique business models and stores has proved business can be successful with little or no advertising. This business is possible only through superior customer service helped by continued ability to restock and respond to customer needs within days. This gives Zara the competitive edge. Hence, keeping in mind the mission, they always innovate their products to enhance shopping experience and provide new designs at affordable costs made from quality materials which follow latest trends. 3. Zara’s Strategy for Growth and Positioning Zara believes in Zero advertising. It would rather spend on store expansion than to advertise. However, the minimally advertise in fashion magazines. The rationale behind this is the quick turnaround of store display, which is around 4 weeks, which renders advertising an unnecessary cost. Also, Zara concentrates on efficient design to market cycle and focus on showcasing large number of designs annually. The workforce in Zara is essential to its success right from the production to the store level as the feedback generated about fashion performance at store is percolated to the designer and production and supply chain helps to put the latest styles in 2 weeks time. We need to take a look at the factors that determine these strategies and also the shortcomings associated with these strategies 4. External Analysis The external environment characteristics can be stated as below 1. Demographic segment   Zara is targeting young consumers with disposable income. This will be primarily in developing countries and developed countries. This presents  them with a sizeable population. As shown by market research, the customers in these countries are willing to try new brands but at the same time are price and quality conscious. The ability to replicate the model and achieve the desired results can significantly enhance Zara’s brand in these market. 2. Economic segment Due to weak currencies, low labor costs and opportunity to be closer to customers, Zara need to think about strategies to take benefits from other location. Since the competition has already entered the newer market and is constantly trying to leverage the benefits associated with these markets. This has a big impact on the profits of the organization. 3. Legal segment Owing to increasing labor costs and stringent labor laws, the production processes in the present countries do not seem favorable as they will increase the production costs. In addition to that, concentration of designers in Spain/Europe can be handled as the labor laws permit that. In case, Zara does not want to decentralize these functions, there are no laws governing their decisions as fashion industry is not under regulations. 4. Technological Segment Zara presently uses IT efficiently in managing their supply chain which leads to lower operating costs. However, the use of IT can be extended to expand their procurement and manufacturing activities outside Spain. 5. Global Segment Owing to globalization and rapid advancement in technologies, several low cost production centers have come up. In order to reduce the costs even further and maintain quality, Zara can have offshore production facilities to low cost location in order to lower the costs. This will enable them to localize Zara and cater to local preference. The critical market for Zara in the coming future would be the Asian nations of India, China, Malaysia, Indonesia and Taiwan. The relaxation of trade norms would help reduce transaction costs, if, Zara plans to expand their activities outside Spain. The environmental characteristics changes very fast in fashion, especially  in terms of demographic and global segments. Zara being in core fashion industry with fast cycles have a unique strategy where in it caters only on the leading edge of the product cycle which enables it to deliver the promise of â€Å"Instant Fashion†. 5. SWOT Strategic Choice We will discuss each of the external and internal variables in details which will give us a better picture as to why Zara needs to act in a certain manner. Strengths * Strong product diversity As a group Inditex is a leading fashion distributor and has ore than 100 associate companies across the world. In addition to this, the stores are located in more than 400 cities across the world. In case of Zara, the international fashion retailing segment, this presents a new opportunity to foray into foreign markets. The group brands can be displayed as well when considering international expansion. This is what Inditex can look forward to offering the wide assortment of goods, replenished quickly to carve a niche for itself. * Strong revenue growth The group company of Zara, Inditex has registered a robust financial performance Y-o-Y. The revenues increased at a CAGR of 18% annually. The operating profit represents a CAGR of 21%. In the meantime, the profits also increase at CAGR of 25% annually. The strong performance of the group, Inditex and various brands leads to increased investor confidence about the company . * Strong distribution network The group, Inditex has a strong distribution network. The presence of an efficient supply chain management in Inditex assures that the goods are delivered within 24 hours of the receipt of the order in Europe and about 40 hours at its overseas outlets. The majority of the supply is handled through its centralized warehouses in each of the European, Asian and American markets. The company’s logistics department has more than 4,000 people  delivering 627 million garments in financial year 2008. * Zero advertising Zara follows the policy of zero advertising to decrease expenses. Hence, in newer markets, it can focus its capital on expansion. The strong brand name, store ambience and product quality will compensate for the lack of advertising. Weaknesses * Overdependence on the European market Zara has a significant market presence in Spain and other European countries. Around 50% of the stores are located in Spain and surrounding countries. However, the revenues contributed by Spain accounts to only 40% of the group revenues whereas 60% of the revenues comes from its international operations with 43% coming from European operations and the rest 17% from outside Europe. The group as a whole is highly dependent on the Spanish and European market to sustain its revenues, making it highly vulnerable to the economic, political and social changes taking place in these markets, especially in Spain. Also, the fashion tastes might reflect heavily the European perspective, even though during international expansion Zara needs to cater to the international customers. * Reliance on local designers Even though local designers are preferred for designing new range of garments for Zara, almost all the designers are from Spain. This leads to a situation where the design might be too localized. Considering the fact that Zara intends to have a global presence, localization of the core designing and manufacturing processes might not be a feasible option. With respect to catering to local tastes and fashion, the designers should be located more closely to the markets. Opportunities * * Expansion plans The group has invested more than â‚ ¬ 2.8 billion to open new stores internationally, in countries where it already has a presence and few new  markets as well. The rate of growth of stores has been as high as 640 stores per year. Zara fashion will be made available in Korea, Ukraine, Egypt and Montenegro. A well defined expansion plan is critical to the corporate objective of international expansion with sustained and robust revenue growth in the future. * Growing apparel retail market in Asia (China, India, Malaysia, Taiwan and Indonesia) The Asian apparel market is growing at a high rate. Owing to the growing population of affluent household, higher disposable incomes, consumers knowledge of international brands, it presents an opportunity for Zara to enter and expand its operations in Asian market. Accelerated development in these markets will help shift the burden of growth and diversification from mature and intensively competitive European and American markets to the building Asian markets. * Growing online sales Online retailing has been growing at a scorching pace in the last decade and considering UK market, more than  £14 billion has been spent on online shopping. Zara should try to open online retail shops to cater to the audience who need to shop for standardized version of Zara’s products. This also presents an opportunity to display the entire product lines from Zara and can be easily searched. It will enable strong growth in online and well as, offline retail sales. Threats * New avenues being utilized by competitors The competition is always on the lookout for cheaper manufacturing location such as China, India and Eastern Europe. The benefit of lower costs of procurement can be passed on to the customers through low prices. The main advantage of Zara’s vertical integration is the frequent replenishments of its stores and also, feedback from store staff to design. If this feedback works out as expected, then Zara will be able to sustain higher manufacturing costs than its competition in future. The competition is also working on reducing the lead times, which if successfully implemented could lead to erosion in market share and reduction in revenues. * Counterfeit goods The counterfeit goods in the new markets and existing ones adversely affect sales of branded accessories. Widespread counterfeiting reduces the brand value and exclusivity, especially in cases of high end fashion products, through customer dissatisfaction. * Rising Labor cost in European region Since Inditex focuses most of Zara’s designing and manufacturing activities in the European region, the increasing labor costs drive down the profits as it increases the operating expenses. This results in adverse impact on the group’s margin. 6. Internal Analysis We undertake the resource based view and study the internal analysis. Zara’s main assets are the designers, the logistics process, in store sales people and the store ambience. The designers are in charge of churning out new designs in a short span of time. After receiving the feedback, they have approximately 2 weeks to deliver the garment to the store. Each of the designers is a valuable and costly resource and this quick turnaround time is not imitable and therefore exploited by Zara to the fullest. The competitors have not been able to turn around designs as quickly as Zara. Hence, they give Zara a competitive advantage. Since Zara follows zero advertising policy, the word of mouth medium is heavily dependent on how much a customer is satisfied. New designs which satisfy customers go a long way in making Zara an important brand. The logistics process is also a source of competitive advantage. It is because of logistical capabilities that Zara can display 12,000 new designs annually. Assisted by IT and workforce, it forms a competitive advantage but this can be imitated by competition and hence does not present a sustainable competitive advantage. However, along with new designs it plays significant roles in preventing stock outs and piling inventories to help reduce unwanted costs. The sales people, staff and store ambience, although valuable but are easily imitable and hence are at comparative parity Capabilities: Sourcing Materials Inbound logistics Flexible manufacturing / Outsourcing outbound logistics in-store sales. Market research Product design Procurement Outsourcing Distribution Centralized planning Corporate vision and mission Brand Image 7. Competitor Analysis The main competitors are H&M, a Swedish brand and GAP Inc., an American brands. Now, GAP Inc. boasts of large network of stores and has a strong financial leverage as it aims to tap into growing online retail segment and into franchising to expand into new market. GAP Inc. is also targeting growing global footwear market. Some of its shortcomings are geographic concentration and weak performance of comparable stores. It also suffers from low customer loyalty and rising labor wages. On the other hand, H&M are matching Zara in terms of designing and also have strong procurement practices. Unlike Zara, they collaborate with designers and have much wider presence as compared to Zara. They are at present looking to target new niche. However, they are also plagued by issues of customer loyalty and product recall. Currently, all of them are focusing the same segment and added to it the high entry barriers and high profit potential makes it an attractive industry. From the above graphs and the financial data available (refer to Appendix), we can see that although sales revenues of H&M are better than Inditex, operating expenses as a percentage of sales are lower for Inditex mostly due to their operational and marketing strategies which lowers the inventory and due to instant fashion generates more sales. 8. Corporate Level Strategies The Corporate level strategies of Zara can be said to be similar to that of its parent, Inditex Group. Its strategies can be classified based on three frameworks – Ansoff Matrix, BCG Matrix and GE-Directional Policy Matrix. Based on the Ansoff Matrix, Zara follows the following Strategic Directions: * Market Consolidation and Product Development by bringing in the latest fashionable designs from the design stage to distribution within 2-3 weeks, much shorter than the industry average. * Market Development by introducing products to new markets by opening up stores in new locations and countries. It had around 1500 stores in 78 countries, in December 2008,around the globe and is expanding. Zara is operating in an Industry of high growth of about 40% while having a high market share in most of the  countries. This puts Zara as a Star for Inditex Group in the Growth-Share BCG Matrix. Also the strength of its business is high, thus putting it in the Investment and Growth direction of theDirectional Policy Matrix. Thus Zara is one of the main Business lines for Inditex Group garnering about 67% of the revenue for the parent organization. 9. Business Level Strategies Zara defines its target markets as â€Å"Young, educated one that likes fashion and is sensitive to fashion†. This target market is very broad because it is not segmented by ages and lifestyles. Thus the scope of Zara’s business is broad. Zara also follows both the Cost leadership and Differentiation strategies. Thus Integrated Cost Leadership/ Differentiation Strategy are followed by Zara by the following approaches: * Cost Leadership 1. It achieves low cost by lowering lead times which in turn leads to lesser inventories, thus reducing the cost of the supply chain. * Differentiation 2. It differentiates itself from its competitors by providing lead times which are far lower than the industry standards. 3. Zara produces about 11000 designs every year as compared to about 4000 by competitors. 4. Replenishes stores twice a week as compared to once by major competitors. 5. Produces in small batches and takes advantage of shortages in stores by replacing them with new designs. Thus customers who find that a particular design is out of stock may buy a new design in fear of losing the opportunity to but it. Thus it guarantees that customers visit Zara’s stores around 17 times per year on an average as opposed to 3 times for competitors. 6. The designs remain in the stores for only about 4 months when they are taken out. Only about 10% of designs are taken off stores by Zara as compared to 17% of competitors. 7. Takes the feedback of customers in determining the needs of the customers. 8. Takes advantage of IT in vertical integration of the supply chain by maintaining a smooth flow of information through the chain. According to Mile’s and Snow’s Adaptive Strategies, Zara can be classified as a Prospector because of the following characteristics: * Zara has built its entire business on innovation in the supply of fashion apparels to customers. * Zara continually modifies its existing designs to match the  latest fashion trends and needs of the customers. * The competitors have not been able to copy their supply chain strategy. 10. Functional Level Strategies The designs at Zara change every week and this result in manufacturing systems that have to be flexible to cope up with these changes. Thus Zara uses Flexible Manufacturing Technology or Lean Production which reduces setup time for equipments, increases utilization of machines through better scheduling and improves quality control at all stages of manufacturing. The various functional strategies for Zara have been laid down below. * Marketing Strategy * Only one item of each size in each color option was placed on the stock floor requiring stores to maintain a considerable restocking policy. * Customer feedback was taken by all the sales personnel at the stores to gauge the needs of the customers. * New product introductions were planned twice a week to maintain fashion freshness. * Zara stores were located in prime retail locations, thus avoiding the need for advertising to attract customers. Marketing expenses were0.3% on sales as compared to 3.5% of competitors. * Materials Management Strategy * The raw material was stocked in advance according to forecasts. They were sourced from countries like Spain, the far east, India and Morocco. * Due to low lead times, very less inventory needed to be maintained. * Inventory turnover is high leading to lesser capital needs. * Zara outsources its sewing activities to contractors, thus lowering cost. * R&D Strategy * Design team consisting of young individuals in their 20’s who are more conversant with latest fashion. * Around 40000 designs were done throughout the year out of which around 11000 were selected for manufacture. * * Human Resource Strategy * Zara emphasized learning from mistakes and accepting criticism. * Everyone was encouraged to express their opinion. * No performance appraisal system in place but a system of immediate feedback from colleagues at all levels. * Personal empathy given more importance than formal qualifications in recruitment. * A significant portion of salaries varied according to performance. * Information Systems Strategy * IT was used to integrate the chain vertically and horizontally, for smooth flow of information up the chain and across the various functions, respectively. * Infrastructure * Zara had a relatively flat structure in comparison to other firms in the same industry. Cross-Functional Integration existed between the various functions to ensure that: * New designs are developed according to customer needs. * Information flow is quick. * Time to manufacture the new designs and their presentation to the customers reduces. * The costs of development are low. 11. Global Level Strategy Zara had opened up around 1500 stores in around 78 countries in December 2008, and it is still expanding by looking for opportunities. The main factors that helped Zara achieve Global competitiveness are: * Fast growth in the Spanish market * High demand for exports from Spain * Rivalry with other firms like H&M and Gap. The main reasons for Zara to expand globally were: * Expansion of its market by taking advantage of its â€Å"instant fashion† concept, so that it could increase its market share and bring in more revenue. * Since Zara believed in providing the customers with the latest fashion at lowest cost, it supplied the stores with low quantities. So to lower the costs it expanded globally so that it could take advantage of some sort of Economies of Scale. Global Strategy Zara did not follow any localization in the countries where it was present and provided only standardized products. Also it believed in providing the latest fashion at the low costs. Thus from the Global Strategy Grid it can be seen that Zara Followed a Global Standardization Strategy. By doing so it hoped to increase its profitability by reducing costs and achieving economies of scale. Zara chose to enter the different markets using various entry strategies. The strategies are outlined below. * Exporting: Zara exported its products to a few markets where opening up a manufacturing facility would not have been profitable like Monaco, Oman, etc. * Franchising: Zara also opens up stores in various locations through franchised deals avoiding development costs and risks of opening up a foreign market on its own. Examples of such locations are Cyprus, Venezuela, etc. * Joint Ventures: Over a period of time Zara entered various markets by forming Joint Ventures to take advantage of the partner’s knowledge of the foreign country. It entered the Italian Market in 1996 by forming a JV with Benetton. Then in 1998 it entered the German market by forming a JV with Otto Versand, the country’s largest catalogue retailer. It also entered the Japanese market by forming a JV with Japan’s BIGI Group, forming Zara Japan. * Wholly Owned Subsidiaries: Zara entered most of the markets by opening up wholly owned subsidiaries, to take advantage of the controls that it could exercise in those countries. Examples of such locations are US, UK

Gone With the Wind Racial Injustice - Free Essay Example

Sample details Pages: 7 Words: 1995 Downloads: 8 Date added: 2019/08/13 Category Literature Essay Level High school Tags: Gone With The Wind Essay Racism Essay Did you like this example? The Antebellum Era in the American South lasted roughly seventy-five years, beginning in the late eighteenth century and ending with the outbreak of the Civil War. During this time, Southern society was deeply divided by wealth. Only 0.1 percent of whites owned more than 100 slaves, while 76.1 percent owned none at all. Even so, Southern whites were unified by a deep belief in white supremacy. The poor saw slavery (and racism) as their only source of prestige. They were not ready to let it go (Corbett, et al). By the mid-nineteenth century, the nation had become polarized over slavery. White Southerners ardently supported its preservation and expansion West. Conversely, every state north of the Mason-Dixon line had abolished it by 1804 (The Antebellum South). Abraham Lincolns election to the presidency in 1860 made it clear that the schism between the North and South was irreparable. Over the next year, seven Southern states seceded from the Union and established the Confederate States of America. On April 12, 1861, Southerners fired the first shot of the Civil War at the government-controlled Fort Sumter in South Carolina. Four more states joined the Confederacy (Civil War). Don’t waste time! Our writers will create an original "Gone With the Wind: Racial Injustice" essay for you Create order Lincoln, desperate to preserve the Union, was initially hesitant to act against slavery. But in 1862, it was evident that black enlistment in the Yankee army was necessary (Fowler) and, the following year, Lincoln passed the preliminary Emancipation Proclamation to free over three million slaves in the South (Civil War; Reconstruction). This ultimately proved to be a successful military tactic: public opinion shifted to favor the North, the Confederacy lost much of its labor force and 186,000 black soldiers flocked to Union lines. On April 9, 1865, the Confederates surrendered to the Yankees. Seven days later, Abraham Lincoln was assassinated (Civil War). Throughout the Civil War, Georgia was a significant aid to the South. The state seceded on January 19, 1861 and, by that time, 25,000 soldiers had already enlisted to fight in the Confederate army. In 1864, General William T. Sherman tore through Georgia on his famous March to the Sea. He disconnected the last railroad supplying Atlanta, leaving the Confederates with no choice but to abandon the city. This Union triumph secured Lincolns victory in the Presidential election that year (Fowler). The Civil War was the bloodiest war fought on American soil in history: 620,000 soldiers lost their lives. So much bloodshed and devastation made it difficult to repair the schism that divided the North and South (Civil War). In May 1865, Vice President Andrew Johnson assumed the Presidency and announced his plans for Presidential Reconstruction. Johnson was a firm believer in the Union and states rights. He allowed the South to take restoration into its own hands as long as it respected the Thirteenth Amendment, which had abolished slavery throughout America that December. With such leniency, the South was able to restrict the freedom of former slaves through a set of laws known as the black codes. Outraged, many Northerners renounced their support for Presidential Reconstruction and instead endorsed a more progressive approach, termed Radical Reconstruction. This movement gave African-American men a voice in politics for the first time in the nations history and, if somewhat tempor arily, made great strides toward improving race relations (Reconstruction). Part II The Film The film Gone with the Wind (1939) begins in 1861. The sun is setting on the cherished land of Cavaliers and Cotton Fields, and everywhere, white men eagerly anticipate the war that will silence their Northern adversaries. Scarlett OHara, the films protagonist, is a classic Southern belle. She is raised among the planter elite, tended to by the hundreds of slaves that work on her familys plantation. Her charm attracts many suitors, but Scarlett has set her sights on the dreamyand engagedAshley Wilkes. When she cannot convince him to leave his bride-to-be, Melanie Hamilton, Scarlett accepts a marriage proposal from Melanies brother. Both he and Ashley leave to fight in the Confederate army shortly thereafter. Scarlett is widowed as swiftly as she is wed: her husband dies of pneumonia soon after his departure. Ready for a change in scene, she goes to live with Melanie and her Aunt Pittypat in Atlanta. Thus begins her acquaintance with Captain Rhett Butler, a rich blockade runner with a deplorable reputation. He had previously witnessed Scarletts love confession to Ashley and, observing her character, fallen in love with her. Meanwhile, Union General Sherman blazes through Georgia, leaving the state in ruins. He lays siege on Atlanta, scattering the townsfolk and the forcing the Confederate army to desert. Rhett Butler helps Scarlett and a recently mothered Melanie escape. When the women return home, they find Ashleys plantation abandoned and burned to the ground. Tara, the OHaras plantation, is deserted: only two slaves and Scarletts sickly family remain. There is no food to eat, nor money to spend. But Scarlett does not lose hope and sets everyone to work to recover what was lost. The Confederacy surrenders. Thousands of soldiers trudge home through the broken South. Among them are the unwelcome Carpetbaggers and Yankees, intent on disrupting the long-standing social order of Georgia. The taxes on Tara skyrocket and a formerly destitute couple offers to buy it from Scarlett. Infuriated, Scarletts father mounts a horse and chases after their carriage, jumping a fence and falling to his death. Still unable to pay the taxes, Scarlett convinces her sisters lover, Frank Kennedy, that her sister has forgotten him. They marry, and Frank pays the debts on Tara. One day, Scarlett is attacked while driving her carriage. Frank goes after her assailants and is shot in the head. Rhett Butler seizes this opportunity to propose to Scarlett. She accepts, they move to Atlanta, and soon after, Scarlett gives birth to a baby girl named Bonnie. Scarlett and Rhett have a rocky marriage. It is clear to both parties that Scarlett has not forgotten Ashley, and jealousy consumes her husband. When Scarlett and Ashley are discovered embracing, Rhett suggests divorce. He leaves for London with Bonnie, returning only when she begs for her mother. When they arrive, Scarlett tells Rhett that she is pregnant. During a heated argument, she hurls herself at him, falling down the steps and losing the baby. A whirlwind of tragedy ensues. Scarlett recovers, but only just before Bonnie falls to her death in a horse jump and breaks the last bond between her and Rhett. Melanie Hamilton also dies in childbirth. It is then that Scarlett realizes how much she loves Rhett, but she is too late. He leaves her, saying frankly, my dear, I dont give a damn. Part III Comparison Evaluation The 1939 film Gone With the Wind is a rose-colored idealization of the Old South. It speaks more to the sentiments of 1930s Southerners than it does to actual events; the film can be regarded as no more than a glimpse into the Southern whites perspective. Gone with the Wind is rife with inaccuracies, but the portrayal of African-Americans is perhaps the most distorted. 1930s cameras transformed systematic degradation into a mutually beneficial exchange between master and slave. The enslaved peoples are depicted as happy in their lifelong servitude; they have no desire to leave their masterseven after they are legally freed by the Unionand the runaways are portrayed as foolish victims of Yankees propaganda. Incompetent and unintelligent, slaves repeatedly turn to their astute masters for guidance (Portrayal of Race Relations: Gone with the Wind). Mitchell respins the Civil War to ennoble the Confederates, painting the Union as a brutish intruder out to dismantle Southern society. Mitchells decidedly racist take on slavery was likely influenced by the political realities of her day. Slavery was dissolved in the mid-nineteenth century, but racism continued to plague the Nation long after abolition. The 1930s was marked by lynchings, segr egation and stark prejudice against black people that bled into literature and cinema. The National Association for the Advancement of Colored People boycotted the film after its release in 1939 (A History of Racial Injustice). Scarlett OHara, the brilliant and beautiful protagonist, bears little resemblance to the traditional Southern wifeindeed, she weds three times, lusts after a married man and murders a Yankee soldier. But most importantly, Scarlett seizes control of her own finances to ensure the economic stability of her family, often at the expense of weaker men. Scarlett is a personification of the changing gender roles in the 1930s, when the Great Depression forced women into the workplace. This phenomenon, in conjunction with flappers and bold actresses, popularized a more modern view of women that influenced many literary and cinematic works of the era (Ebert). Gone with the Wind, although decidedly flawed, had some historical factualisms. The high morale expressed by Southern gentlemen in the beginning of the film was documented repeatedly in history. The Confederates were fighting to preserve a way of life, not the abstraction of the Union, and therefore approached the war more passionately than did the North (Civil War). Atlanta was also accurately portrayed. Scarlett goes to the bustling city to live with Melanie and her Aunt Pittypat. There, she and Melanie nurse fallen soldiers in churches and other makeshift hospitals. As the Union General William T. Sherman approaches Atlanta, thousands flee the city. Scarlett and Melanie manage to escape only as it is going up in flames. Truly, the population of Atlanta did skyrocket during the war. Shermans famous March to Sea caused an influx of refugees to pour in from demolished cities in Georgia; the Atlantan population reached almost 22,000 in 1864. As the population grew, so did its producti vity: it became a hub for the manufacturing of weapons and clothing. There was not enough room in the hospitals for the wounded, so soldiers received care in municipal buildings (Davis). But the same daily cannon fire described in the film reduced the city to rubble in August, 1864. That month, Sherman cut the last rail line to Atlanta, forcing Confederate troops to abandon the city (Fowler). Gone with the Wind (1939) is inherently flawed. It idealizes the Antebellum South, dehumanizes African-Americans and vilifies the Union. The film cannot be used to understand the true history of the time period. However, it provides insight into the emotions felt by the Confederacy. It is likely that they saw society the way it is depicted in the movie, and one cannot truly appreciate history without understanding all perspectives, no matter how warped. To this end, it could be used to educate students on viewpoints that are discussed less frequently in history class. It has other redeeming qualities, as well. Scarlett is, frankly, a more progressive female lead than those of modern-day Hollywood. The film is quite faithful to the book by Margaret Mitchell. And from an artistic standpoint, the cinematography is unmatched. The colors and backdrops were groundbreaking in the 1940s and are still dazzling by todays standards. It is difficult to overlook the blatant racism of Gone with t he Wind, but it is undeniably a cinematic masterpiece. Works Cited A History of Racial Injustice. A History of Racial Injustice Equal Justice Initiative, Equal Justice Initiative, racialinjustice.eji.org/timeline/1930s/. Civil War. History.com, AE Television Networks, 2009, www.history.com/topics/american-civil-war/american-civil-war-history. Corbett, Scott P., et al. Wealth and Culture in the South. Lumen Learning, Open SUNY Textbooks, courses.lumenlearning.com/ushistory1os2xmaster/chapter/wealth-and-culture-in-the-south/. Davis, Stephen. Civil War: Atlanta Home Front. New Georgia Encyclopedia, University of Georgia Press, www.georgiaencyclopedia.org/articles/history-archaeology/civil-war-atlanta-home-front. Ebert, Roger. Gone With the Wind Movie Review (1939) | Roger Ebert. RogerEbert.com, Ebert Digital LLC, 21 June 1998, www.rogerebert.com/reviews/great-movie-gone-with-the-wind-1939. Fowler, John D. Civil War in Georgia: Overview. New Georgia Encyclopedia, Georgia Humanities and the University of Georgia Press, www.georgiaencyclopedia.org/articles/history-archaeology/civil-war-georgia-overview. Gone with the Wind Awards. IMDb, IMDb.com, Inc., www.imdb.com/title/tt0031381/awards. Portrayal of Race Relations: Gone with the Wind. SparkNotes, SparkNotes, www.sparknotes.com/film/gonewiththewind/section4/. Reconstruction. History.com, AE Television Networks, 2009, www.history.com/topics/american-civil-war/reconstruction. The Antebellum South. Lumen Learning, Open SUNY Textbooks, courses.lumenlearning.com/boundless-ushistory/chapter/the-antebellum-south/.

Uniformitarianism The Present Is the Key to the Past

Uniformitarianism is a geological theory that describes the processes shaping the earth and the Universe. It states that changes in the earths crust throughout history have resulted from the action of uniform, continuous processes that are still occurring today. Overview In the mid-seventeenth century, biblical scholar and Archbishop James Ussher determined that the earth had been created in the year 4004 B.C. Just over a century later, James Hutton, known as the father of geology, suggested that the earth was much older and that processes occurring in the present were the same as those that had operated in the past and that will operate in the future. This concept became known as uniformitarianism and can be summarized by the phrase the present is the key to the past. It was a direct rejection of the prevalent theory of the time, catastrophism, which held that only violent disasters could modify the surface of the earth. Today, we hold uniformitarianism to be true and know that great disasters such as earthquakes, asteroids, volcanoes, and floods are also part of the regular cycle of the earth. The Earth is estimated to be approximately 4.55 billion years old and the planet has certainly had enough time for abrupt, as well as slow, continuous processes to mold and shape  the earth—including the tectonic movement of the continents around the globe. The Evolution of Uniformitarianism  Theory The two major scientists in the advancement from catastrophism towards uniformitarianism were the 18th-century Scottish framer and geologist James Hutton and the 19th-century British lawyer-turned-geologist Charles Lyell. James Hutton Hutton based his theory on the slow, natural processes that he observed on the landscape. He realized that, if given enough time, a stream could carve a valley, ice could erode rock, sediment could accumulate and form new landforms. He speculated that millions of years would have been required to shape the earth into its contemporary form. Unfortunately, Hutton isnt often associated with uniformitarianism. Even though he published his Theory of the Earth and presented its abstract to the Royal Society of Edinburgh, a lot of criticism followed and the times werent ready for his ideas. Hutton did publish a three-volume book on the topic, but his writing was so complicated that it failed to win him deserved recognition. However, the famous line that became associated with uniformitarianism—we find no vestige of a beginning, no prospect of an end—does come from Huttons 1785 paper on the entirely new theory of geomorphology (the study of landforms and their development). Sir Charles Lyell It was the  19th-century  scholar Sir Charles Lyell whose  Principles of Geology popularized the concept of uniformitarianism. In Lyells time, catastrophism was still very popular, which pushed him to question the standard of the times and turn to Huttons theories. He traveled Europe, searching for evidence to prove Huttons ideas and eventually, his work became one of the most influential of the century. The name uniformitarianism itself comes from William Whewell, who coined the term in his review of Lyells work. To Lyell, the history of both earth and life was vast and directionless and his work became so influential that Darwins own theory of evolution follows the same principle of slow, almost imperceptible changes. University of California Museum of Paleontology states that Darwin envisioned evolution as a sort of biological uniformitarianism. Severe Weather and Uniformitarianism As the concepts of uniformitarianism evolved, it has adapted to include an understanding of the importance of short-term cataclysmic events in the formation and shaping of the world. In 1994, the U.S. National Research Council stated: It is not known whether the relocation of materials on the surface of the Earth is dominated by the slower but continuous fluxes operating all the time or by the spectacular large fluxes that operate during short-lived cataclysmic events. On a practical level, uniformitarianism hinges upon the belief that both long-term patterns and short-term natural disasters reoccur throughout the course of history, and for that reason, we can look to the present to see what has happened in the past. The rain from a storm slowly erodes the soil, wind moves sand in the Sahara desert, floods change the course of a river, volcano eruptions and earthquakes suddenly displace land masses, and in what occurs today uniformitarianism unlocks the keys to the past and the future. Yet modern geologists also realize that not all processes that were at work in the past are happening today. The first millions of years of Earths history were vastly different from our current conditions. There were times when Earth was showered with solar debris or when plate tectonics didnt exist as we know them. In this way, instead of being conceived of as an absolute truth, uniformitarianism provides us with another explanation that helps create a more complete picture of the processes that shape the Earth and the Universe. Sources Robert Bates and Julia Jackson,  Glossary of Geology, 2nd edition, American Geological Institute, 1980, pg. 677Davis,​​​ Mike.  ECOLOGY OF FEAR: Los Angeles and the Imagination of Disaster.  Macmillan, 1998.​Lyell, Charles.  Principles of Geology. Hilliard, Gray Co., 1842.Tinkler, Keith J. A Short History of Geomorphology. Barnes Noble Books, 1985Uniformitarianism: Charles Lyell Understanding Evolution. 2019. University of California Museum of Paleontology.