zara's international activities were organized primarily under a holding company created in 1988 Zara Holding, B v., of the Netherlands. Zara Holding's transactions with international franchisees were denominated in euros (Inditex's official currency) sales in other currencies to subsidiaries in the Americas roughly offset dollar-denominated purchases from the Far East.
Under Zara Holding were the country operations, which exercised managerial control of the downstream portions of the value chain, particularly the real estate and personnel costs associated with store operations. Country management teams typically consisted of a country general manager, a real estate manager, a human resource manager, a commercial manager, and an administrative and financial manager. Such management teams sometimes served clusters of neighboring countries (e.g.,Belgium and Luxembourg) if individual countries were too small. Country general managers played a particularly important role bridging between top management at headquarters and store managers at the local level:they were key conduits, for example, in propagating best practices through the organization. A committee of subsidiaries that met every two to three months was of particular help in this regard. Country managers each received four to six months of training at headquarters. The country managers in key European markets were all locals, but some in the Americas were expatriates.
zara's international activities were organized primarily under a holding company created in 1988 Zara Holding, B v., of the Netherlands. Zara Holding's transactions with international franchisees were denominated in euros (Inditex's official currency) sales in other currencies to subsidiaries in the Americas roughly offset dollar-denominated purchases from the Far East.Under Zara Holding were the country operations, which exercised managerial control of the downstream portions of the value chain, particularly the real estate and personnel costs associated with store operations. Country management teams typically consisted of a country general manager, a real estate manager, a human resource manager, a commercial manager, and an administrative and financial manager. Such management teams sometimes served clusters of neighboring countries (e.g.,Belgium and Luxembourg) if individual countries were too small. Country general managers played a particularly important role bridging between top management at headquarters and store managers at the local level:they were key conduits, for example, in propagating best practices through the organization. A committee of subsidiaries that met every two to three months was of particular help in this regard. Country managers each received four to six months of training at headquarters. The country managers in key European markets were all locals, but some in the Americas were expatriates.
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