10 Operations Decisions 1

How the 10 operations decisions below are applied in Mango? Goods & service design Quality Process & capacity design Location selection Layout design Human resource and job design Supply-chain management Inventory Scheduling Maintenance 2

Goods & service design All of the garments and accessories are designed around the idea of collections and matching items Production and distribution is an essential part of the process, together with high standards of quality at all stages, from controls at source to the final point of sale Their garments and accessories are high- to-medium quality and always seek to maintain the same manufacturing standard (a constant level of quality, the same characteristics, etc.) 3

Quality The possible presence of hazardous substances in their garments and accessories is a risk inherent to the manufacturing sector –the instructions to their suppliers and the continual monitoring of the same by specialised laboratories means that this risk is controlled in a reasonable way at all times Exhaustive quality control at all stages of the production chain ensures that their garments and accessories are suitable for any occasion 4

Process & capacity design M ango doesn t have any factories and all of its designs are subcontracted to extern suppliers who are responsible of the manufacture process. Their suppliers generally cover the entire production process (cutting, producing, ironing, packaging, etc) The nature of their products and their production system largely determine the characteristics of their manufacturers and production workshops, and the relationship they have with these in certain aspects, such as: manufacturing time, price of garments, technology, capacity, quality, organisation, professionalism, international experience, etc. 5

Location selection The franchise system is used in countries where the cultural and administrative characteristics are different to ours and it is therefore more appropriate that people in their own country manage the stores. At 2007 the group had over 313 own stores and 682 franchises. 6

Layout design MANGO is characterised by offering fashion for the young, modern and urban woman. It has its own design which adopts the latest fashion tendences and is presented in 3 differentiated lines: Casual Sport Suit Jeans Furthermore, all the lines in MANGO collection can be combined with different accessories like shoes, bags, belts, costume jewellery and other products which are made by MANGO 7

Layout design: logo

Human resource and job design Conscious that Mangos greatest asset is its people They want their professionals to develop within the company and to take on increasing responsibility with time –they achieve greater professional and personal satisfaction as well as greater motivation in day-to-day work MANGO has over employees, of which work at the companys central offices in Palau-Solità i Plegamans (Barcelona) They have young and enthusiastic team with an average age of 30 and which is 82% female 9

Supply-chain management The relationship with their suppliers is a long-term one based on a system of joint planning and implementation Provide them with direct technical support in their manufacturing plants in every country in which Mango manufactures We also have permanent channels of communication with Mangos customers through our stores and a department On a periodic basis suppliers visit their central offices, which enables them to maintain more direct and personal contact with each on Their company has specialised departments to provide support to franchisees in all management areas. –Furthermore, a team made up of our supervisors and coordinators visit their stores on a continual basis, offering them advice on all necessary aspects. At the MANGO organisation we have always tried to meet the expectations of our interest groups, by taking their concerns and initiatives on board and working together with them. 10

Inventory Their main goal is that each shop have what its necessary in each moment having the minimum stock. Everyday, information is processed and then they replace clothes or make goods trades between their shops. Mangos main tool is an informatic software that makes possible to manage the difficult design, purchase, manufacture, sale and post sale processes automatically ArchiCAD 11

Scheduling Before each season, they plan what will be sent to each store and order production based on this criterion. –If finally there is a difference with the sales forecast, the regulation of the deliveries or exchanges between stores is carried out from our warehouse and central services. If there are surpluses in stores at the end of a season, these are sold with discounts and promotions. 12

Maintenance They want to develop and implement this set of values in all of our fields of influence, both internal and external, because they believe that their responsibility extends to their entire supply chain. Therefore, they have steadily developed instructions, policies, and action codes related to social, work and environmental aspects, all with the desire to improve and move forward. 13