cost-saving solutions. For example, one of Bezos belief is small organizational structure and no communication is needed. Amazon has a Two-Pizza Team Rule which means “if a project team can eat more than two pizzas, it’s too large.” Bezos believes small organization creates innovation and the team can experiment their vision independently.
Vertical Integration
Amazon has built its portf
cost’. Process Automation have huge power to make products. Due to this system, DJC reduce the numbers of labors. Therefore, DJC invest this saved cost to technical development or quality development.
Consequently, it can be ‘High quality, Low cost’.
Also, they use small warehouse because their raw materials inventory. This can nurse resources.
Unlike ACC, DJC manufactures casting machi
mainly the sewing, while the cutting is done in-house. This produces of saving labour cost, flexibility of meeting deadlines, keeping the designs/fashions strictly controlled.
Labeled and priced goods are immediately hanged upon arrival-Zara Burjuman, Dubai, July 2005
3.3- Information Systems
Information systems at Zara are one of the drivers of the quick response communication
Problem developed when the government raised interest rates to contain inflation. Paul Volcker of FRB led retrenchment policy, aiming to reduce inflation. This policy raised interest rate to up to 19% and caused inflation rate of 13.5% (1981) plunge to 3.2%(1983). Therefore, steep increase of interest rate put people with housing loan unable to redeem their loan. Since they were unable to replay
cost-cutting solutions that did not affect the quality of products. Ingvar used every opportunity to reduce costs,and he scraped and saved in every way possible - except on ideas and quality. The name IKEA comes from the initials of Ingvar Kamprad, I and K, plus the first letters of Elmtaryd and Agunnaryd, which are the names of the farm and village where he grew up.
In 1950s through 1960s,