Ethics In Action

Mr. Jayaswal definitely took a huge advantage of the corrupted system of the Indian government. From individualism view, he saw that using his connection to the politicians to promote his own business would fulfill his self-interests in a short period of time. At the same time, his behavior is completely unethical since it is influencing negatively for the fair distribution of the natural resources which are meant to be used for the millions of people in India, resulting slowing growth of the economy.
In particular, the government control over unethical behaviors of the organization is completely missing in this case. Neither the businessman nor Mr. Dadra are interested in social responsibility or sustainability , but gaining a lot of wealth for themselves only.
Unfortunately, it seems to be it is inevitable for Indian government going through this dysfunctional process as they are rapidly developing their country.
They are newly adopting the open system to their traditional society. Ideally, it is meant to be improving the country as a whole, but a few people with power see it as an opportunity for individual chance to win fortune, while they are neglecting to see from the view of moral rights, justice and utilitarian. As a result, social and economic inequality get worse.
It is not only happening in India, when China and South America that are developing rapidly ,are undergoing trial and error. What they need the most right now is the right government which can control unlawful activities of the dominant business organizations. Since, the current government is corrupted top to the bottom, immediate changes should follow in order to fix the problems. The good news is that there are protests who are aware of the corruption and trying to abolish the failing government by demonstrating.
Historically, revolutions have been necessary in order to change corrupt regimes and practices. It is definitely not an easy task to raise against gigantic organizations and government,but people need to raise their voice to inform everyone how a few unenthical individuals are damaging the lives of millions of people and the country for their own greed.
India is going through a huge transition economically and socially. the beginning step of being profitable in the zone of compliance. The next step should be followed by legal responsibility. In order to enter the zone of conviction, a political revolution is ungently needeed. And the new generation should be taught social responsibility and ethics from the early age. It is possible for India to improve to become a successfully developed country even though they are going through a painful transition because they are still people who are aware of social responsibility and hoping to change for all the people in India. When the ethical people start to cooperate to utilize the rich resources to contribute to the community, their socioeconomic level will grow with a great potential.

ZARA INTERNATIONAL

Zara International's successful business in fashion industry is driven by efficient operations management, and supply chain management. There are several elements of the classical management approaches are shown in Zara's operations. The company internalizes design, production, distribution, and retail sales for trendy items as much as possible. As a result the turnaround time is speedy enough to satisfy the customers who want the latest items instantly . Its in-house production enables scalar chain principle during the entire process. The clear communication and division within the company is the key for efficient and speedy operations.

Zara also adopts contingency thinking. For example, they make small production batches help the company avoid the risk of over supply. It is considering situational demands of every item. If some items are not selling well, they just put new items twice a week. There is no replenishment,but creating scarcity value,and new items. According to WSJ “The success of Inditex's model is often attributed to a complex logistics system and heavy use of information technology to track data on consumer tastes. The company, whose brands also include Bershka and Pull & Bear, also makes half of what it sells close to its headquarters, and delivers new garments in small batches to all of its stores by plane or truck twice a week.”

The store managers track sales data constantly checking what is selling and what is not. Their analytics promptly affect making the next products which will sell better. Their heavy use of hand held computers, is a good example of how management science and operations research are used in sales strategy. According to Bloomberg BusinessWeek, Inditex group has adopted online marketing a long time ago compared to its competitor H&M. It states that “Inditex has long used purely promotional websites to draw attention to its Zara product lineup as well as other company-owned chains such as Bershka and Massimo Dutti. Its Facebook page has nearly 10 million fans, and Inditex introduced a smartphone app more than 18 months ago that allows consumers to browse new clothing arrivals. However, selling goods online, something the Gap (GPS) has been doing for more than a decade, is only now becoming a key part of its strategy to expand sales in the U.S. Inditex has about 50 Zara stores vs. the 200-odd outlets Swedish rival Hennes & Mauritz (better known as H&M) has opened in the states so far. “Zara’s move online in the U.S. is overdue—it’s the largest online apparel market in the world,” says Sucharita Mulpuru, an e-commerce shopping analyst at Forrester Research. The “Web is a great strategy for them. It’s much cheaper with their nationally recognized [Zara] brand to launch a Web store than to invest in real estate in 50 more malls in the U.S.”

It seems that Zara international's success is not a coincidence, but a strong business strategy based on advantages of classical management and modern management. They are not only savvy on tracking fashion trend around the world , but Information technology that can optimize maximum productivity overall.

http://online.wsj.com/article/SB10001424052702303822204577463812791905588.html

http://www.businessweek.com/magazine/zara-plays-catchup-with-online-shoppers-08252011.html