Conduct the macro and micro environmental assessment for Hong Kong casual wear industry.

TASK DESCRIPTION – ASSIGNMENT

 

BACKGROUND / INTRODUCTION

 

Below is the statement the Esprit’s CEO announced to the shareholders.

Dear Shareholders,

On 1 June 2018, I had the great privilege of being appointed the CEO of esprit Group. Since then, I have spent a lot of time listening and learning. Not only have I had conversations with employees in our offices and our stores both in Europe and Asia, but I have also met and visited our wholesale partners and other important business stakeholders. One thing that has encouraged me is that the more I learn about this company, the more I am convinced that we have a fantastic opportunity to realize esprit’s true potential. Here are some of my first thoughts and impressions:

• Our BRAND and our unique heritage is one of our greatest assets, and we must do more to sharpen and rejuvenate our identity. We must clearly identify both who our customers are today and who our customers will be in the future. Then we must orientate ourselves around those customers and put them at the center of everything we do to become a truly customer-centric organization. The good news is that we already have a unique and extensive esprit Friend data base. This coupled with the deep surveys and analysis that we are currently engaged in, are helping us to build a very clear picture of who we are working for.

Once we have properly identified our brand direction and target customers, we can develop the right PRODUCTS. We must consider style and design, fashion level, quality and price, and how this position fits in the competitive landscape. This will be accompanied by a critical examination of our product development process aimed at bringing the best products to our customers in the most efficient way possible.

• Our profitable WHOLESALE business will play a central role in the new direction of the Group. We want to become “best-in-class” in what we offer to our Wholesale partners in terms of products, marketing and other support. We also see a huge opportunity in maximizing our strategic partnerships with third party wholesale ecommerce partners to capture the growth offered by online channels.
• A key strength of esprit is our online shop, known as our “ESHOP”. Our eSHop has a leading position in the industry, as testified by the best digital fashion store award in Germany1 we have recently received. to maintain this competitive advantage, we must strive to stay ahead of the rapidly evolving world of ecommerce and keep abreast of the changing ways that our customers discover and shop for products.
• I am excited about the broad INTERNATIONAL FOOTPRINT of esprit. Esprit is well positioned to exploit the vast potential of the fast-growing Asia region – particularly China. Our efforts in customer definition will form the basis of our success. A dedicated product team is already working on specific products targeted at this important market.

 

• I am most of all impressed by the quality, commitment and passion of our EMPLOYEES. What I am seeking to do is to define their roles more clearly, to empower them to take greater responsibility, and to enable them to make the decisions they feel are best for the business. Similarly, we need to enhance the agility of our organization to maneuver the Group through today’s rapidly-changing retail environment. It is crucial to be more nimble about the way we do business and simplify the complicated structures and processes within the organization. I am now in the process of formulating the plan to restore esprit back to sustainable profitability. To help me in this exercise, I have appointed a Chief transformation officer who is heading a special task force comprising selected members from within the organization. They have been working closely with me since June this year to gather consumer insights, establish the relevant strategic initiatives, and map out the execution plans. We are achieving good progress on all fronts and I hope to present the plan to the market later this year at our investor Day. As for operations, we continue to realize reduction in operating expenses (excluding exceptional items) across all key cost lines, mainly attributable to savings from store closures as well as implementation of restructuring measures to further streamline operations as the existing cost level of the Group is still too high relative to the size of our business; hence cost reduction will remain an integral part of our strategy. Although details of the plan are yet to be finalized, we have already identified areas where we can further optimize efficiency to reduce overhead costs and achieve additional cost savings.

 

In closing, I would like to thank all of esprit’s employees and business partners around the world for their continued dedication, commitment and hard work. i am convinced that by working together, we will achieve our common goal of restoring esprit to sustainable profitability and delivering long-term shareholder value. While the road to recovery is still full of challenges, I am confident that we will advance the esprit brand forward and become even more relevant to modern customers around the world. I am genuinely excited about the next phase of the turnaround and remain very confident about esprit’s future. I would like to thank the Board of Directors for their trust in me and for appointing me to this important role. I am truly looking forward to fulfilling my mission, and to bringing esprit back to success.

 

Source: Adapted from Esprit Annual Report 2017-2018

 

TASKS

Assume that you are the board member of the company. Please answer the following guiding questions and then set up the strategic formulation and implementation plan.

Question 1

Conduct the macro and micro environmental assessment for Hong Kong casual wear industry.

(Pestle and Porter five forces analysis for HK wear industry and justify)

Question 2

Identify the corporate strategy and business strategy proposed by Esprit recently. Evaluate how effective these strategies are.

(Research past annual report and records to identify its strategy to evaluate their strategies)

Question 3

Based on your responses of the questions 1 and 2, recommend strategies to Esprit in order to improve the strategic performance.

(Gave recommend strategies to response of question 1 & 2) (ie on line business)

Question 4

Critically discuss how you can effectively implement your recommended strategies.

( BCG analysis , check its competitors success ideas to give recommendation, It is important part of this assignment)

 

LENGTH REQUIRED

 

5,000 words +/- 10%.  Any deviation from this will be penalised.

 

FORMATTING AND LAYOUT

 

Please note the following when completing your written assignment:

1. Writing: Written in English in an appropriate business/academic style
2. Focus: Focus only on the tasks set in the assignment.
3. Length: 5,000 words
4. Formatting: Typed on A4 paper in Times New Roman or Arial font 12 with at least 2.5 centimetre space at each edge, double spaced and pages numbered.
5. Document format:
6. Ensure a clear title, course, and name or ID number is on a cover sheet and a bibliography using Harvard referencing throughout is also provided.
7. Research: Research should use reliable and relevant sources of information e.g. academic books and journals that have been peer reviewed. The research should be extensive.