OIM 210 Lecture Notes - Lecture 6: Amancio Ortega, The Home Depot, Cat Food
13 Feb 2017
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Pdas: personal digital assistant - a smartphone without the phone. Collects data about what customers want to see in store. Recording what customers want, no leather pants issue. 70% of salary comes from their store success and another 10% of overall profits are shared as well -> incentive to use pdas. Cash register -> information about what"s in stock. Young people armed with it (pda and pos) They come in teams, but never on the same teams for a long period of time. Very diverse teams for cross pollination of ideas. They distribute stuff all over the world -> a mix of ideas is important. Vertical integration: they own several layers of the value chain so they can do things faster. Gap does not have a vertical integration because they outsource and do not own several layers of the value chain. 23 highly automated factories that do cutting, dying of everything coming in.
