Esprit Holdings: Strategic Analysis Using Business Assessment Tools

This report provides an analysis of Esprit Holdings using various company assessment tools, including SWOT analysis, business process modeling, PESTLE analysis, requirement analysis, and McKinsey's 7S framework. It discusses the application of these tools to understand Esprit Holdings' strengths, weaknesses, opportunities, and threats, as well as its internal processes and strategic environment. The report highlights the benefits and disadvantages of each tool and recommends the most suitable tools for Esprit Holdings, such as SWOT and PESTLE analysis, to improve its competitive advantage and profitability. It also suggests changes to strengthen the value chain and create a unique value proposition for the company. The goal is to provide insights that can help Esprit Holdings enhance its strategic planning and overall performance.

Running head: TOOLS FOR COMPANY ANALYSIS
Tools for Company Analysis
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Abstract
The main purpose of the report is to discuss about the assessment tools that can help in
analysing a company. The report also talks about the advantages and the disadvantages of the
tools and the application of the tools in Esprit Holdings.

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Table of Contents
Introduction................................................................................................................................3
Assessment Tools for analysis of Esprit Holdings.....................................................................3
Organizational chart...................................................................................................................4
Application of Tools..................................................................................................................4
Benefits and the Disadvantages of tools....................................................................................5
Tools suitable for Esprit Holdings.............................................................................................6
Recommendations for Change...................................................................................................7
Conclusion..................................................................................................................................7
Reference....................................................................................................................................8

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Introduction
Company assessment tools helps in the evaluation of performance of the systems and
the process of a company. The assessment tools helps in gathering information regarding the
departments of a company that helps in managing an organization (Myllyviita, Antikainen
and Leskinen 2017). The companies in the modern age cannot survive without the marketing
of a product or a service. Esprit Holdings Limited is a manufacturer of the clothing, footwear
and the accessories that is under Esprit label (Esprit.com 2019). This report discusses about
the assessment tools that can be used for analysing the company called Esprit Holdings. The
report also talks about application of the tools that can help in benefitting the business. The
report also elaborates on the advantages and disadvantages of the tools and the tools that can
be help in the development of the company.
Assessment Tools for analysis of Esprit Holdings
The assessment tools that can be used by Esprit Holdings is SWOT analysis that can
help in highlighting the strengths and the weakness of the company. It can act as a basic tool
that can help the company in determining its position in the present time and its future
strategies. Esprit Holdings can capitalize on its strengths that can aid in the process of growth
of company. Business Process Modelling can also act as an effective technique that can help
an organization in analysing gap between the present process of the business and the future
process of the business (Ostrom and Wilhelmsen 2019). Esprit Holdings can also take
recourse to PESTLE analysis that can influence the business in the area of strategic planning.
It can play an effective role in reducing potential threats for Esprit Holdings. It can open up
the scope of exploiting opportunities for a company that can help it in entering the global
market. Requirement analysis can be said to be part of that of project lifecycle which starts in
the event of stakeholders proposing the solution. It can be said to be a crucial part of a

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project. In the model of Mc Kinsey seven areas of the company are divided in two parts-
‘soft’ and the ‘hard’ areas. The hard elements are strategy, structure along with the systems
and the soft areas are inclusive of style, staff, shared values along with the skills (Baishya
2015). Balanced scorecard refers to the performance metric which is used within strategic
management for improvement of internal function of the business along with the resulting
external outcome.
Organizational chart
The people at the helm of Esprit Holdings is the Chairman who makes the strategic
decisions in the company. He is guided by the President along with the Chief Executive
Officer who guides the management pertaining to the important decisions in the company.
The senior management looks after the functioning of various departments.
Application of Tools
The SWOT analysis can be used in Esprit Holdings that can help in understanding the
brand authenticity along with the unique selling points of the company. It can be applied to
the organization by analysing its performance in relation to the customer service, pricing and
the technology. It can help in reviewing the sales force along with the performance of a
company. The general decline in relation to the customer demand can help in understanding
the weakness of a company. Esprit Holdings can make use of business process modelling that
can be instrumental in improving the process of the company. It can be applied to the
company by taking recourse to the best practice design that can help in taking care of the fact
that everyone knows the various kind of process in the company. The business process
modelling can prove to be useful in developing the culture of the innovation and the change
that can act for the betterment of a company (Oleghe and Salonitis 2018). PESTLE Analysis
is used by Esprit Holdings that helps the company in understanding the environment within

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which it is operating that helps in the formulation of strategies of the company. The
government policies have an effect on the profitability of a firm and the understanding of the
political regulations can help a company in attaining advantage over the other companies.
The company has to take care of the data security breaches along with the anti-trust issues
that can be useful for the organization. Requirement Analysis can be made use of by Esprit
Holdings by making integrative set of the diagrams that can construct the artifacts in relation
to the software system. Data flow diagram is used by Esprit Holdings that helps in the
elimination of the shortcomings that can produce a robust solution. Mc Kinsey’s framework
has been adopted in Esprit Holdings as the company has made use of the social media
strategies that has helped it in rising above the competitors. The organization has made use of
consumer-centric networks that has proved to be ideal for the stakeholders of the company.
There are a large number of business divisions of the company as the company has more than
that of 900 stores spread across the world. The company operates in 40 countries which has
ensured the popularity of the company. The retailer takes recourse to the inventory control
software that helps in the smooth functioning of the various activities in the company. The
retailer provides communication skills training to employees that increases the skills of the
staff working in the company. The company abides by the norms of sustainability and 50 %
of cotton of the company is made from the sustainable sources that reflects the shared values
of employees of company.
Benefits and the Disadvantages of tools
The benefit of the SWOT analysis is that it can help the organization in understanding
itself in a better manner that can help the organization in becoming successful in the long run.
It can help in addressing the various areas of weakness of the company that can ensure its
profitability in the future. It can help in the development of the business goals that can be of
benefit for a company. The disadvantage of the tool lies in the fact that it does not prioritise

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the issues and offer the alternative decisions (Sarsby 2016). It can help in producing large
amount of information but they may not prove to be useful. The advantages of business
process modelling lies in the fact that it can make the participants have the mutual
understanding that can help in analysing a business. The disadvantages of business process
modelling can be seen in the fact that it limits the element of innovations within the
framework of a company. The advantages of PESTEL analysis lies in the fact that it
encourages the developing of the strategic thinking within a company (Nekrasov and Melnyk
2017). The limitation of PESTEL analysis can be seen in the fact that it oversimplifies the
information that are used for making the decisions. The advantages of Requirement Analysis
is that it can help in streamlining the opportunities that can bring about improvements in the
business rules. The disadvantage of requirement analysis is that it the requirements change
during the course of a project that can raise challenges for a firm. The advantages of Mc
Kinsey’s framework lie in the fact that the effectively of an organization is not dependent
merely on the strategy along with the structure. It is the first model that is divided into the
“hard” and the “soft” areas. The positive elements of MC Kinsey’s framework is owing to the
fact that it has helped in connecting the academic research with that of the managerial
practice. It helps in the identification of the gaps and the inconsistencies in between current
position and future position of a company. The disadvantages of the framework resides in the
fact that the model does not talk about the external environment that is crucial for the success
of a firm. The strategies of the company is dependent on the conditions prevailing in the
environment and Mc Kinseys framework does not take into consideration this factor that can
be said to be a weakness of the company.
Tools suitable for Esprit Holdings
The tools that are suitable for the fashion retailer are the SWOT analysis and the
PESTEL analysis. The SWOT analysis of Esprit Holdings can help the company in

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eliminating the links within the purchasing chain that can help in developing the company. It
can provide the consumers with satisfaction that can work to the benefit of the company. It
can help the company in understanding the technological developments that are necessary
that can be instrumental for bringing the success for the organization (Ostrom and
Wilhelmsen 2019). The PESTEL analysis can help Esprit Holdings in understanding the
economic conditions and how they can be utilised for the profitability of the organization. It
can help the company in targeting specific group of the people that can help the company in
achieving the aims. A retail store should be able to meet the legislative conditions that can
help them in saving themselves from the legal complications.
Recommendations for Change
The changes can be brought about in Esprit Holdings by taking the help of the partners that
can help the company in analysing the competitor landscape. It can strengthen the value chain
of company and help in the creation of unique value proposition.
Conclusion
Company assessment tools assists in evaluating performance along with process of a
company. They can gather the information that proves to be advantageous in the process of
management of organization. Esprit Holdings can take recourse to SWOT analysis that can
bring out the positive and the negative factors for the company. The organization can use the
PESTEL analysis that can help in forming the strategies of the company. Business process
modelling can be taken recourse to by Esprit Holdings which can improve process of
company. The company can use best practice design that can help in the improvement of
process of company. Esprit Holdings can use the SWOT analysis along with the PESTEL
framework that can attain the vision of the company. It can help the company in getting the
competitive advantage that can help them in earning more amount of profits.

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Reference
Baishya, B., 2015. McKinsey 7s Framework in Corporate Planning and Policy. International
Journal of Interdisciplinary Research in Science Society and Culture (IJIRSSC), 1(1),
pp.165-168.
Esprit.com (2019). Esprit. [online] Esprit.com. Available at:
https://www.esprit.com/en/company [Accessed 30 Jul. 2019].
Myllyviita, T., Antikainen, R. and Leskinen, P., 2017. Sustainability assessment tools–their
comprehensiveness and utilisation in company-level sustainability assessments in
Finland. International Journal of Sustainable Development & World Ecology, 24(3), pp.236-
247.
Nekrasov, V. and Melnyk, V., 2017. Application of SWOT and PESTEL analysis in
combating economic crimes and when identifying threats to economic security of the
state. Probs. Legality, 136, p.193.
Oleghe, O. and Salonitis, K., 2018. Leanness assessment tools and frameworks. In Progress
in Lean Manufacturing (pp. 1-37). Springer, Cham.
Ostrom, L.T. and Wilhelmsen, C.A., 2019. Risk assessment: tools, techniques, and their
applications. John Wiley & Sons.
Sarsby, A., 2016. SWOT analysis. Lulu. com.