CAPSTONE PROJECT

1. Take a industry
2. Then 3-4 companies
3. Vision mission & statement analysis
4. IFE & EFE
5. CPM
 ZARA
INDUSTRIAL OVERVIEW
About:
Amancio Ortega founded Zara in 1975. His original store was located in the heart of A
Corua, Galicia, Spain, where the business is now headquartered. After realizing that there
was a tavern with the same name two blocks away, he changed the name to Zara from Zorba,
after the iconic 1964 movie Zorba the Greek. The extra an is thought to have come from a
different set of letters that had been created for the corporation. It offered low-cost imitations
of well-liked, higher-end styles in clothes. He expanded his business in Spain. Using
information technology and other methods, he modified the design, manufacturing, and
distribution processes in the 1980s to shorten lead times and respond more swiftly to
emerging trends, which he dubbed "instant fashions."
Products:
Men's, women's, and children's apparel are all available at Zara stores (Zara Kids). European
retailers carry Zara Home designs. Most Zara clients are between the ages of 18 and roughly
35. It takes products 10 to 15 days to reach the retailers after they are designed. All of the
clothes are processed at the Spanish distribution facility. Before being loaded into trucks, new
things are examined, sorted, and labelled. The garment is often delivered within 48 hours.
Over 450 million articles are produced by Zara annually.
In addition to clothing and accessories, Zara carries perfumes, shoes, and swimsuits.
ZARA Beauty, Zara's first cosmetics collection, debuted in May 2021.
Zara launched what is thought to be the first detergent that lessens the abrasion of textile
microfibres during washing under its Zara Home brand. Depending on the fabric type and
washing circumstances, it is claimed that the solution, jointly developed by Inditex, BASF
Home Care, and I&I Solutions Europe in Spain and Germany, can limit the release of
microfibres by up to 80%.
Zara IFE
INTERNAL FACTOR EVALUATION (IFE) Matrix
Key Internal Factors Weight Rating Weighted
Score
Strengths
Effective Supply chain 0.08 4 0.32
Mature MIS system 0.07 4 0.28
Quick demand system 0.07 4 0.28
Augmented products 0.06 3 0.18
Reasonable price 0.05 3 0.15
Strategy for sustainability 0.05 4 0.20
Better inventory turnover 0.04 3 0.12
Environmental friendly raw material 0.04 3 0.12
Good margin of profit 0.05 4 0.20

Subtotal 0.51 1.85

Weaknesses
More attention towards youth 0.08 2 0.16
No exploration to new markets 0.07 2 0.14
No original product design 0.06 2 0.12
Short of cost management 0.07 2 0.14
Not good at marketing 0.05 1 0.05
Lack of after sale service 0.05 1 0.05
Declining asset turnover 0.04 2 0.08
Small market 0.04 2 0.08
No training resources 0.03 2 0.06
Subtotal 0.49 0.88
Total 1 2.73
 INTERNAL FACTOR EVALUATION (EFE) Matrix
Key internal Factors Weight Rating Weighted
Score
Strengths
Effective and fast production 0.08 3 0.24
Global presence in strategic location 0.11 4 0.44
Low price 0.05 3 0.15
Strong brand image and value 0.11 4 0.44
Products variation and innovation 0.09 3 0.27
Adoption of e-commerce 0.05 3 0.15
Effective inventory management 0.08 3 0.24

Subtotal

Weaknesses
Overdependence on a lot of dependent suppliers 0.15 2 0.30
Controversy and scandal 0.10 2 0.20
Over- rely on fashion trends set by major designer brands 0.08 1 0.08
Poor quality of materials 0.10 2 0.20

Subtotal
Total
H&M EFE MATRIX
EXTERNAL FACTOR EVALUATION (EFE) Matrix
Key External Factors Weight Rating Weighted
Score
Opportunities
Fully Exploitation of E-Commerce 0.13 4 0.39
Product Diversification 0.10 3 0.40
Rising environmental issues 0.05 3 0.15
Make use of new technologies 0.12 2 0.24
During the economy’s recovery cycle, after recession 0.04 2 0.08

Subtotal 0.44 1.26

Threats
Huge competition 0.14 4 0.56
Increase of fake products 0.09 2 0.18
Global Covid-19 Pandemic 0.16 3 0.48
High operation costs 0.07 2 0.14
Lacking of workforce 0.1 3 0.3

Subtotal 0.56 1.66

Total 1 2.92
https://prezi.com/gwrhpgtzicql/ife-matrixzara/

H&M
https://www.studocu.com/my/document/international-islamic-university-malaysia/strategic-
management-of-construction-business/hm-project-21-the-ife-matrix-22-the-efe-matrix-23-
the-cpm-24-the-financial-report/29601368

CPM