Final answer:
The decision rights for ordering in the Zara case study from chapter 3 had been moved to the store managers, aiming to decentralize decision-making and enhance responsiveness to market demand.
Step-by-step explanation:
The case study from Zara mentioned in chapter 3 highlights a significant operational change within the company. The decision rights for ordering had been shifted from headquarters executives to a more decentralized approach. It indicates that the decision-making power was transferred to the store managers. This was part of Zara's strategy to make its operations more flexible and responsive to the market demand. Store managers, being closely in touch with the customers and their preferences, were given the authority to manage inventories and order new articles, thus enhancing the company's ability to adapt quickly to fashion trends.
Zara's move to decentralize the ordering process to store managers is a textbook example of empowering frontline employees, who often have the best understanding of customer wants and needs. The explanation behind the effectiveness of such a decision is that it enables quicker response times to the changing market conditions and a personalized inventory that matches specific store demand, ultimately supporting Zara's fast-fashion business model.