business comment
CONTENT
Corporate Structure of Esprit Holding Limited
Esprit Holding Limited is a listed company in Hong Kong with headquarters in Germany and Hong Kong. Esprit has over 1000 direct managed retail stores in more than 40 countries selling various kinds of quality products. The management has been divided into 3 regions: “Germany”, “Asia/Pacific” and “Europe and Rest of the World”. Each region is managed by a managing director of the group management.
Evaluation of Current Situation
1. Current Strategy
Stability Strategy
Esprit is now adapting a stability strategy. As the expansion strategy of Esprit has slowdown in the recent years, the company is adapting a pause/proceed-with-caution strategy. As a result, Esprit has an opportunity to rest before continuing a growth or retrenchment strategy.
2. Current Performance Results
Operating Results
The turnover of Esprit has been decreased since 2012. The turnover has been dropped by 11% in 2012 and 14% in 2013. Moreover, the company is facing an operating loss of $4170 million at 2013(see appendix 1). It shows that the company performance is declining since 2011.
Number of store and employee
The number of store and employee also dropped since 2012. The number of direct managed store has decreased by 7% in 2012 and 4% in 2013. The number of employee also has a decreasing trend. Esprit has cut 3460 employees between 2011 and 2013, which is about 24% of the total employee in 2011(see appendix 2). It shows a decline in company performance.
Environmental Scanning
In the part environmental scanning, I would form a SWOT analysis by identifying the external opportunities and threats of Esprit, and also the internal strengths and weaknesses of the company. This would help to form a TOWS matrix in strategy formulation.
1. External Opportunities and Threats
Natural environment
Esprit has located in more than 40 countries with different climate which can help Esprit to gain opportunity in
Corporate Structure of Esprit Holding Limited
Esprit Holding Limited is a listed company in Hong Kong with headquarters in Germany and Hong Kong. Esprit has over 1000 direct managed retail stores in more than 40 countries selling various kinds of quality products. The management has been divided into 3 regions: “Germany”, “Asia/Pacific” and “Europe and Rest of the World”. Each region is managed by a managing director of the group management.
Evaluation of Current Situation
1. Current Strategy
Stability Strategy
Esprit is now adapting a stability strategy. As the expansion strategy of Esprit has slowdown in the recent years, the company is adapting a pause/proceed-with-caution strategy. As a result, Esprit has an opportunity to rest before continuing a growth or retrenchment strategy.
2. Current Performance Results
Operating Results
The turnover of Esprit has been decreased since 2012. The turnover has been dropped by 11% in 2012 and 14% in 2013. Moreover, the company is facing an operating loss of $4170 million at 2013(see appendix 1). It shows that the company performance is declining since 2011.
Number of store and employee
The number of store and employee also dropped since 2012. The number of direct managed store has decreased by 7% in 2012 and 4% in 2013. The number of employee also has a decreasing trend. Esprit has cut 3460 employees between 2011 and 2013, which is about 24% of the total employee in 2011(see appendix 2). It shows a decline in company performance.
Environmental Scanning
In the part environmental scanning, I would form a SWOT analysis by identifying the external opportunities and threats of Esprit, and also the internal strengths and weaknesses of the company. This would help to form a TOWS matrix in strategy formulation.
1. External Opportunities and Threats
Natural environment
Esprit has located in more than 40 countries with different climate which can help Esprit to gain opportunity in
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