ZARA and H&M which become clothing retail giant to be successful in the European and

international markets can be successful in the European and international markets, it has a great
relationship with their unique management style.
Zara organization structure
Zara is affiliated with the Inditex group. Original organizational design of Inditex group was
traditional, as the department of market operation, department of product development, and
department of production were all independent (Pahl & Mohring, 2009). Other departments also
have little or even no communication with each other. Later than, Inditex full updated its
organizational structure and established a flexible and efficient matrix structure for Zara (Daft,
2010).
Through constant change and organizational transformation formed a kind of organizational
structure----buyer is responsible for information, development, orders, sales, process and
organization.
ZARA has more than 200 buyer which have been trained by professional designers. They has the
design, the apparel market operation, information communication, procurement channels, market
samples and bulk purchase, shops selling operation communication, analytical, apparel products,
marketing, operating cost management, and other comprehensive ability.
Organizational Structure based on buyers of the work of communication and coordination. Product
development model has become designers and buyers develop coordination mechanisms. In this
process, buyers play fashion factors provider and information gathering role while the designer to
design processing modification. Buyer send design to product development and coordination
center for the record. Using OEM manufacturers product development achievement to batch
purchasing.
Since then, all departments of Zara have no barriers of communication and coordination like that
in the past. Every department and employee in Zara can freely get access to all kinds of data, thus
increase the speed of coordination, and makes the operational efficiency of Zara to the highest
level. However, as each departmental leader can gain much information from many subordinates,
the most important and valuable contents may be hidden among all data, which may influence the
timely use of information. These organizations process and structure optimization is ZARA
accumulated over the years of trial and error to improve the development of the result. It also is
strong support for success.
H&M organization structure
Another retail clothing giant--H&M. As for H&Ms organization design, company management is
based on headquarter in Stockholm. The headquarter in Stockholm is also the locations of main
departments including design and procurement, finance, business development, interior design and
layout, advertising, investor relations, human resources, logistics, security, information
technology, CSR and environment etc. H&M has offices in over 20 countries, they take charge of
all departments of corresponding host countries.
Besides, H&M also has 22 production agencies around the world, which are responsible for
contact with over 900 independent suppliers (Daft, 2010). Among them, 9 agencies are located in
Europe, 11 are in Asia, and the last 1 is in Africa. In this matrix organizational design, H&M
ownership concentration, the company for all the stores have full ownership and operational
control of completely. Headquarter of H&M decide what products to release and how to carry out
marketing campaigns. Meanwhile, regional production offices have the right to make appropriate
revisions of production orders according to the information from ICTs system. This effectively
enhance H&Ms overall operational effectiveness. However, a matrix organization brings
decentralization of authority, expanded power of some employees makes more conflicts between
regional offices and headquarter, which to some extent complicates staff management

Bibliography
Daft, R. L. 2010. Organization theory and design.
Pahl, N., & Mohring, W. 2009. Successful Business Models in the Fashion Retail