Esprit Case Study

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INTRODUCTION This assessment describes and analyses the change management process implemented in Espirt. It also highlights the triggers for change and the effectiveness of change management. A brief company description of Espirt will be explained in appendix below. Then, the situation of the company before change and the need for change is explored. It is presenting applied changes to the structure based on and related to the change model. At the end of this assessment, some recommendations were introduced and discussed to improve the applications of those changes and to overcome any problem or resistance occurred during the change process. TRIGGERS FOR CHANGE TRANSFORMATION Esprit has been a fashion leading brand established for many decades, the growth spurt of Esprit happened during the late 80’s to the early 90’s. Esprit’s brand slogan “The World is Our Culture” signifies its target as being a worldwide brand and positioning itself as premium lifestyle apparel that fits for any age group in any culture. However, during later years in 2000 Esprit has slides down in the global apparel rankings and experience sales revenues and share prices both together sliding downslope. There are driving forces demanding for change coming from both external and internal environments. The external events in its environment required Esprit to…show more content…
If there was not to change, Esprit cannot achieve high revenue, stock price and earning return target from internally the thin profit margin and low visibility on earnings. Externally, competition from rivalry like H&M and ZARA cannabises the sales and force Esprit to cut the profit margin into nearly 0.9% on FY2014. Fast-to-market development is the trend of the fashion market so that change force here is somehow reactive and should be a way to improve inventory

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