Zara uses centralized hierarchy where all communication and coordination takes place from Zara's HQ in Spain. This helps the firm control and manage aspects of the business. For
example basing design near manufacturing that allows for greater quality and communication,
reducing mistake and poor communication.
Another example of management aspects which have helped Zara become successful is the
coordination and communication between HQ in Spain and the managers in stores. This
allows Zara to employ a "just in time" technique, it delivers stock to a store from its
distribution network in Spain within 36 hours. This also allows the firm to meet demand for
products in certain seasons, again helping meet customer needs.
The uses of technology such as IT sales system, this communicates real time sales information
from stores to Zara's HQ in Spain. This allows for better coordination between managers and
designers to assess customers' needs and tastes to adapt and change products to meet
customers' needs and taste.

Questions:

1- What are the advantages of centralized control and coordination at Zara?

2- What organization design aspects of Zara make it so successful?