Critical Thinking: Scope of the Modern Company (105 points)

In this module, we looked at the boundaries of companies on the expanding size and scope of companies, in addition to vertical and multinational expansion.

For this week’s assignment, you will review Zara: Super-Fast Fashion, Case 15 (pages from 546 to 553 ). Remember: A case study is a puzzle to be solved, so before reading and answering the specific case study questions, develop your proposed solution by following these five steps:

*Read the case study to identify the key issues and underlying issues. These issues are the principles and concepts of the course area which apply to the situation described in the case study.

*Record the facts from the case study which are relevant to the principles and concepts of the course area issues. The case may have extraneous information not relevant to the current course area. Your ability to differentiate between relevant and irrelevant information is an important aspect of case analysis, as it will inform the focus of your answers.

*Describe in some detail the actions that would address or correct the situation.

*Consider how you would support your solution with examples from experience or current real-life examples or cases from textbooks.

*Complete this initial analysis and then read the discussion questions. Typically, you will already have the answers to the questions but with a broader consideration. At this point, you can add the details and/or analytical tools required to solve the case.

Case Study Questions:

1- What are the main activities in the value chain for fashion clothing (from raw material to retailing)?

2- Which activities are undertaken by the companies that own the leading brands of fashion clothing?

3- Why do mass-market fashion companies mostly outsource manufacturing?

4- What is Zara’s strategy? What role does vertical integration play in this strategy?

5- How sustainable is Zara’s competitive advantage?

6- What changes in Zara’s strategy or its management systems, if any, would you recommend?

Your well-written paper should meet the following requirements:

Be 5 to 6 pages in length, which does not include the required title and reference pages, which are never a part of the content minimum requirements. Use Saudi Electronic University academic writing standards and APA style guidelines. Support your submission with course material concepts, principles, and theories from the textbook and at least two scholarly, peer-reviewed journal articles unless the assignment calls for more.

*Important note: please link your writing with the course material concepts, principles, and theories (such as the corporate strategy concept, the scope of the firm, and vertical integration decisions) that found in chapter 10 (page 251) in the textbook.

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