Zara & Sinosteel Companies’ Business Management Essay

Dealing with Zara Company

Would you send a half empty truck from Dubai to Oman? Why?

Sending a half empty truck from a certain place to the destination can possibly be reasonable once the final venue of destination is located close to the initial place. In the supposed case, the use of the transport and the gas can be justified by certain motivations of the company. However, when speaking of such distanced places as Dubai and Oman, one must admit that sending half of the possible freight is a completely groundless waste of time and money.

Would you pay airfreight thrice a week to India?

According to the video in question1, there is no use in paying for the transportation of goods to India twice a week, since paying once for the entire transportation should be a much more sensible approach. Therefore, paying airfreight to India thrice a week cannot be considered a wise decision and cannot be made by any company manager. It would be much less complicated to pay for the entire transportation beforehand, thus, allowing the company to cut on certain expenditures.

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Would you move your unsold items after 2 weeks out of the store?

Even though certain goods do not sell well enough, moving the latter from the store triggers another costs that will not be compensated unless the store increases the price of each goods offered. Since the latter will trigger the customers’ dissatisfaction, it is desirable not to move the goods from the store, but sell them with considerable discounts, in case the goods are not food. Hence, the company will be able to make for the losses at least partially.

Would you outsource for cheaper suppliers? Explain?

Outsourcing cheaper suppliers does seem rather efficient way for a company that would like to develop a rewarding tactics in the market and obtain considerable revenues. Therefore, it is recommendable to choose cheaper suppliers. However, it is worth keeping in mind that the company’s reputation often depends on the suppliers, which means that neglecting the quality for the sake of the cheap supplies is not a way out. Therefore, a golden mean is to be found.

Sinosteel Co. Strengthening

What do you understand by Enterprise Resource Planning?

According to OracleVideo, Enterprise Resource Planning is a strategy that allows the company to coordinate the work of the managerial more efficiently, thus, increasing the revenues and the levels of the company’s efficiency and the product quality2. As the president of the company says, the given strategy helps to “optimize the resources3,” thus, helping the company to increase the rates of the revenues and making the human resource management strategy more effective.

How does the ERP system help the management of Sinosteel?

Creating an “integrated business management platform4,” the company, together with the Oracle’s People Soft Enterprise and a number of other groups managed to update the working process of the company, creating the links between various departments. Thus, the integration of every department of the company was achieved.

What are the benefits of adopting ERP in various departments?

One of the first and the foremost benefit of using the ERP method is the fact that there can be no possible information risks within the company5. United in a single online entity, the company does not have to share its secrets with anyone, which is of utter importance. It is obvious that the company “standardized managerial relations” (OracleVideo).

In the past Sinosteel used a de-centralized system. What was the major problem that Sinosteel experienced when using a de-centralized system?

According to what OracleVideo says, the threats of a de-centralized system obviously concerned the risks for the company to face the fraud. As OracleVideo explains, “a delinquent customer could own money to one subsidiary only to be invoiced and paid by another6,” which would trigger the most deplorable consequences for the company and its revenues.

Sinosteel has now adopted a Centralized System. What are the advantages of having a Centralized System?

Since with the help of the Centralized System, the company can efficiently share the customers’ information and at the same time make the latter feel completely safe and anonymous as for any third party’s concern. Hence, any attempts to swindle are doomed to failure from this time on, as the client’s data are transmitted via the corporate information database to all departments. Hence, the benefits of the Centralized System are obvious.

Therefore, it cannot be doubted that with the help of efficient strategy concerning the coordination of work between various departments, one can achieve great success and make the company prosper. Employing a professional approach and being able to foresee the consequences of the undertaken decision, one is bound to make the company efficient. Judging from the videos in question, producing original ideas and being able to see the alternative option for a certain situation is extremely important for successful company running.


OracleVideo, Sinosteel strengthens business management with Oracle apps, video recording, YouTube, 2008.

Zealfulcoder1, Zara supply chain management, video recording, YouTube, 2008.


  1. Zealfulcoder1, Zara supply chain management, video recording, YouTube, 2008.
  2. OracleVideo, Sinosteel strengthens business management with Oracle apps, video recording, YouTube, 2008.
  3. OracleVideo, Sinosteel strengthens business management with Oracle apps, video recording, YouTube, 2008.
  4. OracleVideo, Sinosteel strengthens business management with Oracle apps, video recording, YouTube, 2008.
  5. OracleVideo, Sinosteel strengthens business management with Oracle apps, video recording, YouTube, 2008.
  6. OracleVideo, Sinosteel strengthens business management with Oracle apps, video recording, YouTube, 2008.

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