Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
2. Explain how just-in–time (JIT) inventory to affects Zara’s pricing strategy.
JIT inventory procurement is underpinned by a highly developed forecasting systems.
3. Explain how utilizing both its in-house facilities and external manufacturers
maximizes the efficiency of Zara’s supply chain. What are the advantages and
disadvantages of each form of manufacturing?
Since fast-fashion merchandise requires a quick turnaround to get items on shelves,
4. What other companies utilize Zara’s business model? How much control do these
companies have over their supply chain?
Answers will vary. Companies such as H&M and Forever 21 are most likely to
5. Which of Porter’s three competitive strategies does Zara utilize? Explain why
This is not a straight forward question since Zara combines a low-cost strategy with