Question

In addition to cost, what major qualitative factors should Zara consider for a recommended sourcing strategy? Apply the weighted factor analysis in China, India, Portugal and Spain. Then offer a recommendation. Assume the appropriated weights for each factor. Perform analysis on a country level rather than an individual supplier level.

Answer 1

Zara should consider qualitative factors such as the quality of transportation, competence of the local government, and proximity to suppliers and customers when determining a sourcing strategy. Weighted factor analysis can be performed on a country level to evaluate these factors.

Step-by-step explanation:

When determining a sourcing strategy, Zara should consider qualitative factors in addition to cost. Some major qualitative factors to consider are:

• Quality of transportation, communications, and electrical power networks
• Competence and honesty of the local government
• Proximity to reliable suppliers and customers

These factors can impact the efficiency and reliability of the sourcing process. Weighted factor analysis can be performed on a country level for China, India, Portugal, and Spain to evaluate these factors and make a recommendation. The appropriate weights for each factor will depend on the specific requirements and priorities of Zara.