What are the value and cost drivers of Zara?

Foundations of Business - Standalone book (MindTap Course List)
4th Edition
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter7: Creating A Flexible Organization
Section: Chapter Questions
Problem 10CC
icon
Related questions
Question

What are the value and cost drivers of Zara?

Expert Solution
Introduction
  • Cost drivers are factors that influence the total cost of a product, service, or process.
  • They are the underlying elements that contribute to the total cost of an activity or process, and they are used to identify the most significant drivers of cost so that organizations can take appropriate action to control or reduce costs.
  • By carefully managing the cost drivers, Zara can reduce costs and increase profitability. This helps the company maintain its competitive edge and increase its value to stakeholders.
  • Understanding the cost drivers allows Zara to make informed decisions about where to allocate resources and make investments. This helps the company stay ahead of the curve and remain relevant to customers.
steps

Step by step

Solved in 2 steps

Blurred answer