Month: November 2010

In Class 16, we used Zara as an example of a company that has a fast inventory turnover. Zara also is doing very well. In 2005, Inditex, best know for its Zara stores, reported a 21% sales growth. The company keeps inventory low to create demand and to make it possible for new fashion to come in. At Zara, a sketch can be in stores in only two weeks. When Zara sees new trends coming out they can easily re-create them in no time. This brings customers back to the store multiple times to see what is new. Zara has an in-house design team in Spain and a tightly controlled factory and distribution network. Zara’s wages are a lot higher because most companies produce in Africa or Asia; however, since Zara has such a fast turnover, if something is not selling they can easily move to another trend without losing lots of money. Keeping inventory low creates scarcity, and this can lead to a higher demand. Consumers believe that if they don’t by it now, it might not be there in a few days, and thus, should buy it right away. Low inventory also reduces the markdowns on items. Fast fashion is a growing trend, but no other company will easily be as successful as Zara.

As discussed in Class 19, a social enterprise refers to business ventures operated by non-profits. A social entrepreneur for that matter differs from a traditional entrepreneur because they want to solve a social issue and pursue a social purpose venture. A great example of a social entrepreneur is Jamie Oliver. He started up a social enterprise called Fifteen. Fifteen has four locations including one in Amsterdam, Cornwall, London, and Melbourne. Jamie Oliver hires youth ages 18-24 who have been unemployed, homeless, or overcoming drug and alcohol problems and uses an apprenticeship program that helps youth gradually gain responsibility. This will hopefully gain their confidence and belief that they can be successful. Fifteen also promotes the awareness of nutritious meals and healthy lifestyles. All profits go toward the apprenticeship program.
Social enterprises such as Fifteen are so important as they motivate those who are struggling with money, and essentially their lives. Fifteen brings them together, teaches them how to cook, and how to eat properly. As well, this program makes people feel valued. Jamie has no incentive to do this, other than to help people. It also helps create a sense of community. He empowers individuals and he is a great model.

A successful entrepreneur can be defined as someone who generates a large amount of wealth in a small amount of time, while also taking risks and being innovative. Mark Zuckerberg is an example of a very successful entrepreneur. He founded Facebook- the online social networking website. ” Mark was always interested in computer programming and while at Harvard, was inspired to create Facebook after getting the idea from the annual student directory where students and faculty’s profiles and pictures were posted. His innovation,skills, and drive led him to be one of “the world’s youngest self-made billionaires.” Thousands of people were using this new social networking site only a month after the launch.

Facebook allows people to connect from around the world and share pictures, messages, and links. It has become very profitable as many ad companies pay to have their ads on the site. Also, in 2007, Mark Zuckerberg announced a Facebook platform that allowed developers to create social applications such as family feud. This made Facebook even more popular as many businesses now tried to add their applications onto facebook.

Mark Zuckerberg is a great example of a successful entrepreneur. In a short amount of time he was able to generate a huge amount of money and his site is now valued at around $15 billion .