Business Management.MANAGEMENT REPORT TO THE BOARD OF CAIFU Coursework

Business Management.MANAGEMENT REPORT TO THE BOARD OF CAIFU INVESTMENTS LTD. 2500 words - Coursework Example The critical analysis has been done to weigh the alternatives of investments in Zara and H & M. Contents Contents 3 Introduction 4 Company Profile: Zara 4 Company Profile: H & M 5 Secondary Research on the Management Theories and their applications 6 Management and Leadership Style of Zara 6 Management and Leadership Style of H & M 7 Primary Research on the Organisations 9 Analysis of the Questionnaire 10 Justification 12 Recommendation 12 Conclusion 12 References 13 Bibliography 14 Appendix 1: Interview Questionnaire 15 Introduction The strategic business alliances are the essential aspects of every business to survive in the long run. Investment companies are often willing to fund the expansion of the companies in various other international locations in order to make a profit out of such investments. Caifu Investment Ltd is looking for the opportunities in Zara and H & M and plans to invest in one particular company in order to make sure that the company is able to reap profits fo r Caifu in the long run. This report is presented to the management for a proper understanding of the business processes of the two companies both internally and externally through a primary as well as a secondary research. ... The company specialises in its fast changing fashion products and the company is famous for updating the line of clothing as per the latest fashion trends that are in vogue. Most of the other brands in the fashion clothing retail industry generally update their product every three to six months. On the other hand Zara updates their product portfolio every two weeks which has made a record of having the shortest period of time for up gradation. The company makes record designs of more than ten thousand per year. Zara has not only remained confined to the Spanish markets or the markets of the developed countries but has also moved beyond that to the developing countries where it has offered a portfolio of low cost product to the local price sensitive customers. The company therefore has a brand presence throughout the world and earns revenue of almost 8 billion euro. The company has never invested in the marketing communications like advertising or the other methods of promotion of the brand. However, the company thinks that it is important to reach out to most of the customers of the world and therefore Zara has increased the reach of the customers through the opening up of more and more stores in various locations as well as expansion to the cities across the world where the clothes might have a considerable demand from the customers. Company Profile: H & M H & M or Hennes & Mauritz is also a fashion clothing retailer based in Sweden and has been serving the industry since 1947. The brand targets almost all the markets like men, women as well as children and teenagers. H & M has a brand presence in almost 43 nations and has human resources strength of ninety four thousand. This brand also aims at reaching out to its customers