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1.TomakeadecisiononwhetherornotupgradingZARA’sPOSsystems,weshouldfullyconsiderthemeritsanddemeritsoftheplanfromallaspects.A.WeagreethatthecompanyshouldupgradeitsPOSsystem,butitalsoneedtoconsideramatteroftiming.AlthoughthepresentPOSsystemrunningstably,efficiently,andhasalowoperatingcost,itdoesn’tkeeppacewiththetrendfromthetechnologicalperspective.Also,itsfunctionissimpleandhasnosupportfromtheMicrosoft.What’smore,thesystemisfacingariskthatitssoftwarewillbeincompatiblewiththenewhardware.However,ifZARAupgradesthePOSsystem,theywillspendtimetestingandadaptingthenewone.Inthelongterm,ZARAneedstoupgradethePOSterminals.Atpresent,thecompanyshouldmaintainrelationshipwiththehardwareproviderandpreparetoadoptanewsystem.Andremembertomakeaspecificplanfortheupgrade.B.Wethinkthecompanyshouldbuildin-storenetworks.Therearetwomajorreasons.Firstly,tobuildin-storenetworkscansavemanpowerresource.Themodem-equippedterminalcanbeveryusefulforemployeestocountthestock.Itisinlinewiththecompany'sphilosophyof“fast”andthecostleadershipstrategy.Secondly,whenbuildingthein-storenetworks,thePOSterminalscouldaccommodateevenmoresophisticatedcapabilities.Generallyspeaking,buildingin-storenetworkscansavemoremoneyforthecompany,andimproveitsefficiency.C.Thecompanyshouldgiveemployeestheabilitytocheckinventorybalancesforitemsintheirownstores.Thereasonsareasfollows:①Letemployeestoknowaboutinventorybalancescangetthembetterinvolvedinthecompanyaffairs;②It’sagoodwaytoeffectivelymotivatestaff,increasestaffmotivationandimproveemployeeperformancetoimproveenterpriseperformance;③Itcanguideemployees’salesstrategy.D.Asfarasweareconcerned,wethinkthecompanyshouldgiveemployeestheabilitytolookupinventorybalancesforitemsinotherstores.Thereasonsareasfollows:①Employeesandbranchwillhavemoreaccesstoparticipateintheoperation;②Itcouldpromotethecompany’sinternalinformationexchange,andevencouldformaninternalfriendlycompetition;③Employeescanuseregionalsalesdatatoshowthelocalconsumer’sdemandandinfluencecustomers’consumption.2.ZARA’sbusinessstrategyismainlydifferentiationintegratedwithcostleaderships.Intermsofdifferentiation,ZARA’s“fastfashion”philosophyisunique,whichcreatedemandsandleadthetrendinthegarmentmarket.Theyrespondveryquicklytothedemandsoftargetcustomersandfocusonyoungfashion.Inproduction,theydesignquickly,productionquicklyandupdatequickly.Theyarealwaysthefastestcomparedwiththeircompetitors.Incostleadershipaspect,ZARAconductslittleadvertisingandverticallyintegratedmanufacturingoperationanddistributionsystembasedoninformationsystem.Insidethecompany,theirorganizationstructureissimpleandemployeesworkwithhighparticipation,sothatthewholecompanyrunsefficiently.AllaboveallowZARAtoprovideproductswithlowerprice.3.Inouropinion,ZARArealizethestrategythrough5mainaspects:organizationstructure,corporateculture,productionprocess,marketingmode,IT.OrganizationStructure①ZARAhasaflatorganizationstructure,whichemphasizesadecentralizeddecisionmakingapproach;②Thedesignteamarerelativelyindependent;③Storemanagershavemoreresponsibilities.CorporateCultureZARAhasa“fastfashion”philosophy,whichmainlyfocusontheshortleadtimes.Andthecompanyemphasizestheabilityrespondveryquicklytothedemandsoftargetcustomers.Theyaresensitivetonewstyles,sotheydon’tproduce“classics”.ProductionProcess①Retailing,manufacturingandapparelindustryintegrated;②LowRawmaterialcost;③Usingsophisticatedmachinetoraisetheutilizationratioofrawmaterials;④Personalizeddesignstyle.MarketingMode①Payingattentiononthestorelocation;②NeversellingclothesovertheInternet;③Conductinglittleadvertising(virtuallynoadvertising,placingadsonlytwiceayeartoannouncetheopeningofnewstores);④Smallbatchquantityproductionofsinglepiece(inordertostimulatedemand).ITAtLaCoruna,severalinformationsystemswereusedtosupporttheoperationsofZara.Applicationskepttrackofthe“theoreticalinventory”.Andtheyhavesomegoodequipmentsandsophisticatedtechnologiesinstores,factoriesandDCS,whichcanhelpZaragetmorebenefitsandreduceinventorycost.