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Views: 422

Words: 387

Pages: 2

Category: Business and Industry

Date Submitted: 06/13/2010 11:22 PM

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1.0 Introduction:

Reengineering of business process refers to reshaping of business operations in order to remeove barriers that prohibit an organization from providing better products and services, and to help the organization capitalize on its strengths. The process usually introduces radical change on current business practices to benefit both business organization and its customers.

In today’s ever-changing world, the only thing that doesn’t change is ‘change’ itself. In a world increasingly driven by the three Cs: Customer, Competition and Change, companies are on the lookout for new solutions for their business problems.( Hammer.M & Champy.J, 1993)

2.0 Content:

2.1 The nature of the Zara:

ZARA is founded in the year 1975 and owned by Amancio Ortega, in La Courna. Inditex is probably the world's fastest growing clothing retailer with over 3,100 stores around the world in over 70 countries and the Zara format taking around 1,000 of those stores. In March 2006, the group overtook Sweden's Hennes & Mauritz (H&M) to become Europe's largest fashion retailer. Inditex owns stores present in Europe, North and South America, Asia, and Oceania and engaged in the design and the manufacturing of its products and the main activity is retail. It holds under it firms sorted in sub-categories like footwear, men, women, children clothing, fashion, etc. It caters to the fashionable family clothing, which consists of the design and the retail of trendy clothes for young men and women. Some of the direct competitors of Inditex for example are Benetton, Mango, E-Sprit and etc.

2.2 Possible problems the organization has encountered:

The key problem facing Zara is to decide whether to upgrade Zara POS system, which will be a big risky task for Zara as they may lose the reliability offered by the current system, or to continue with the current system, despite the fact that the current POS system, even though it satisfies the needs of the company, but it is a DOS-based...