0MANAGEMENTCONSULTINGPREP©2013MConsultingPrep,Inc.1ZaleFashionZaleisafast-growingcompanyinThailandwithfashionretailasitscorebusiness.Establishedin2009,asmallclothingshopinPattayahasnowgrownintoayouth-focusedpowerwith6brandsfrom3businesslinesasfollows:FashionRetailer:Accountsforabout80%ofZalerevenue,FashionRetailisthemostestablishedlinewith4differentbrands:PickedbyZ,Mike,Infamy,andZShirts.Food&Beverage:Openedasaspacefillerwithhighsynergywithfashionshops,ZaleKafehasnotyetbeengettingenoughcompanyresourcestoreallybreakoutofthesupportingnatureofitsbirth.ZaleKafedoesnothaveanystand-aloneshops.ThemeDevelopment:Knownforitscreativityinstore,product,andthemedesign,Zalehasbeeninpartnershipdiscussionswithmanyshoppingcenters.ThesecentershopeZalecantakesubstantiallylargespaces,designthemwithspecificthemes,turnthemintoentertainmenthubswithhightraffic,andsub-leasetootherpartners.Zalecurrentlyhastwohubsunderconstruction.Thecompanyhasbeengrowingveryfastforthelastfewyearsinmanyaspects:revenue,geographycoverage,andcustomergroups,openingnewlocationsandgettinginnewventurescontinuously.Thishasbecomeatopicofcontroversywithinthecompanylately.Somepeoplecriticizethatthecompanyisspendingtoomuchresourceonnon-corefieldswithoutsufficientlystrengtheningtheinternalcapabilityandstructure.TheCEOexpresseshisperspectiveonthisissue:“Strengtheninginternalcapabilities,standardizingoperationprocesses,andstabilizinghumanresourcesareallcriticaltothesurvivalanddevelopmentofZale.Thecompanyhasbeengrowingtoofastforitselftohandle.However,inthiscompetitivebusinessenvironment,itishardtoturndowngrowthopportunities.Stopgrowingmeansyieldingtheplayingfieldstocompetitors”.Healsonotesthattherehavebeencompaniesaroundtheworldgoingthroughmuchfastergrowthsuccessfully.21.WhichofthefollowingstatementsbestdescribestheCEO‟sopinion?A)TheCEOisconcernedthatthecompanymayhavetochoosebetweencontinuingtogrowandslowingdowntostabilizeitsinternalkeyissues.B)TheCEOisdeterminedthatthecompanywillnotturndownanypossiblegrowthoppor...
