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BUSINESS PROBLEM
SUBJECT: BUS 214
LECTURERS: Ms. Hau
Mr. Duy
 OUR MEMBERS
NAME IRN

Nguyễn Ngọc Kim Thi 1932300169

Nguyễn Thị Mộng Nghi 1932309010

Dương Hồ Mỹ Tiên 1932300417

Trần Kim Ngân 1932300123

Trần Thị Kim Ngân 1932300363

 Table of contents
01 02
Abstract and Problem of
Introduction business

03 04 05
Four Costs and Commentary
alternatives benefits

06 07
Implementation Conclusion
schedule
 Introduction
❏ Zara is a Spanish clothing retailer
based in Galicia, Spain.
❏ Founded by Amancio Ortega in
1975 and the flagship store chain of
the Inditex group.
❏ Operates more than 2,220 stores in
88 countries.
❏ A pioneer in fast fashion based on a
highly responsive supply chain
Amancio Ortega
— Founder —
 Problem
● May 2011, 52 workers including
15 child workers were seen ● ZARA can benefit from the
working in unsanitary use of child labor
circumstances in ZARA factory
 3. Four
Alternatives
Costs and
benefits
A. Members related to the child are responsible.
● The ZARA needs to do implementation that will be punished by
reduced wages or even is dismissed if the incident level increases .

● The consumer's perspective, it is not recommended to buy products

made by children themselves.

● Spanish fashion chain Zara, the company investigated since May, 52

people worked under 'unsanitary conditions' in a factor.

B. Changing child labor into adult labor with a big turning point.
● Purpose: children as a tool to both carry out the clothing production process and
save some money.

● Although adult workers are not highly skilled, they operate flexibly and do it faster.

ZARA solves problems that can occur from unemployment.

A. Costs and Benefits
● The education and understanding of
adult family members.

● The responsible of government and ZARA

in management the employee
recruitment.

● The cost is not high because almost is the

awareness of adults, responsible of
government but the benefit is strong.
A. Members related to the child are responsible.
● The ZARA needs to do implementation that will be punished by
reduced wages or even is dismissed if the incident level increases .

● The consumer's perspective, it is not recommended to buy products

made by children themselves.

● Spanish fashion chain Zara, the company investigated since May, 52

people worked under 'unsanitary conditions' in a factor.

B. Changing child labor into adult labor with a big turning point.
● Purpose: children as a tool to both carry out the clothing production process and
save some money.

● Although adult workers are not highly skilled, they operate flexibly and do it faster.

ZARA solves problems that can occur from unemployment.

B. Costs and benefits

Unskilled adult
employment

● The amount of money to pay those employee will be higher than the salary of children.

● About $330 USD a month compared to $288 USD for children.

● Benefit: increase the productivity.

C. Investing in social development
more to regain ZARA's reputation.
● ZARA needs to rebuild a good image with
legitimate production.

● ZARA can invest money in building

schools for remote areas.

● Consumers will recognize the

humanitarian value that ZARA creates.

ZARA improve their reputation brand

C. The cost and benefit.
● Is not a low-price solution, but it has
huge impact.

● We estimate the cost that it can be over

$10 million USD.

● Benefit: Zara can enhance the

reputation and the profit.
D. Applying high technology to machines to replace manual labour.

● Children's energy is limited and it costs them money to pay their monthly salaries.

● The application of advanced technology in production that will make ZARA's clothing
production much faster and more efficient.
D. The cost and benefit
● The cost: overpriced

● Estimate that about $50,000 to 70,000.

● Benefit: Less labor cost, more stable production line, guaranteed product quality and
quantity.
Home What is TM? About TM jobs Tourism and tech Conclusions

05 About
Commentary
 The most appropriate and effective solution

❖ Investing in school construction as well as drastically

reducing illiteracy in some countries.
 Why does investing in children help Zara regain the
best customer trust?

❖ Children are the main

source of labor, which
determines the
prosperity of a country.
 ❖ Future labor will
primarily come from
children.

❖ Result: dissolve the scandal

→ boost reputation → get
more profit.
Implementation schedule
Quarter 1: Period 2022-2024
➢ Finding projects or organisations that they can trust to invest
their money.

Quarter 2, Period 2024-2028

➢ Focusing on finding reasonable construction sites.

Quarter 3, period 2028-2030:

➢ Marketing strategy should be designed in a timely and
efficient manner.
 Conclusions
❖ Four solutions:

1. The members related to the child must be responsible.

2. Transforming child labor into adult labor is a landmark.

3. Invest more in social development to regain Zara's reputation.

4. Apply high technology to machines to replace manual labour.

➔ Improve its reputation, image, and position in the worldwide market

while also receiving a lot of value in both tangible and intangible ways.
 References
BOF. (n.d.). Zara is one of the world's largest international fashion companies . It belongs to Inditex, the world’s biggest fashion group. From retrieved
https://www.businessoffashion.com/organisations/zara
Business New Report. (July 7, 2021). Fenced Camps And Humiliating Conditions… Zara Workers’ Face Violations In Supply Chains. Retrieved from
https://www.bnreport.com/en/zara/#:~:text=Zara%20stores%20 have%20been%20 accused,subjected%20to%20
inadequate%20working%20conditions.
Dumas, D. (2011). Zara accused of employing children as young as 14 in 'slave labour' factories in Brazil. Mail online. From retrieved
https://www.dailymail.co.uk/femail/article-2028041/Zara-accused-employing-children-young-14-slave-labour-factories-Brazil.html
Impact International. (July 05, 2021). Fast fashion at a human cost - Zara fashion retailer chooses sales over ethics. Retrieved from
https://impactpolicies.org/en/news/226
Imperfect Idealist. (August 22, 2021). Is Zara Ethical or Sustainable? + Alternative Brands. Retrieved from
https://imperfectidealist.com/is-zara-ethical/
Jordan, D. (April 25, 2022). Is Inditex's most popular company Zara really ethical in 2022?. Retrieved form
https://wear-next.com/news/is-zara-ethical-or-sustainable/
Mind the gap. (July 06,2020). CASE STUDY: ZARA FIGHTS SANCTIONS FOR FORCED LABOUR IN BRAZILIAN SUPPLY CHAIN. Retrieved from
https://www.mindthegap.ngo/harmful-strategies/constructing-deniability/hiding-behind-complex-supply-chains/zara-fights-sanctions-for-forc
ed-labour-in-brazilian-supply-chain/
Petter, O. (November 06, 2017). ARE ZARA LABOURERS’ ‘PLEAS FOR HELP’ THE RESULT OF A FAST-FASHION BUSINESS MODEL? Retrieved
https://www.independent.co.uk/life-style/fashion/zara-labourers-plea-for-help-fast-fashion-business-model-h-m-primark-a8040601.html
RASCOUET, A., AMIEL, G., BLOOMBERG. (July 02, 2021). Zara and Uniqlo owners face investigation over profiting from alleged Uyghur forced
labour in China. Retrieved from
https://fortune.com/2021/07/02/zara-uniqlo-skeckhers-investigation-uyghur-forced-labor-china/
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