The Esquel Group is a Hong Kong-based manufacturer and supplier of textiles and apparel and is known as the largest shirt producer in China. This case study discusses the initiatives and activities the company has undertaken to add value to its products.
F. Warren McFarlan, William C. Kirby, Tracy Yuen Manty
Harvard Business Review (307076-PDF-ENG)
February 07, 2007
Case questions answered:
- How did bringing the different manufacturing activities in-house help the Esquel Group maintain high-quality products and service offerings? What other activities did the company take to add value to its products through innovations?
- Do you think Esquel was right in becoming a vertically integrated company? What are the pros and cons of this strategy for Esquel?
- Esquel’s goal is to double revenues by 2010 and to become a $1B company. What challenges is Esquel facing in achieving this growth, and how should they be addressed?
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Esquel Group: Integrating Business Strategy and Corporate Social Responsibility Case Answers
1.) How did bringing the different manufacturing activities in-house help the Esquel Group maintain high-quality products and service offerings? What other activities did the company take to add value to its products through innovations?
Achieving a high level of quality in its product and service offerings, the Hong Kong-based Esquel Group, a producer of textiles and apparel, has effectively merged its business strategy with corporate social responsibility (CSR) activities.
Esquel’s choice to bring its numerous production operations in-house has been one of the main drivers in maintaining its excellent standards. Esquel is now able to exert more control over its manufacturing process and guarantee that its products are produced in accordance with the highest standards.
Esquel has been able to standardize its production process and adopt stringent quality control methods by bringing its manufacturing activities in-house.
This has made it possible for the business to maintain constant levels of quality in both its goods and services, guaranteeing that its clients will always receive products of the highest caliber.
Esquel has also been able to quickly adapt to changes in consumer expectations and market trends because of its own manufacturing facilities, helping it to stay at the forefront of innovation in its sector.
The Esquel Group has undertaken a number of additional steps to improve the quality of its products through innovation in addition to moving its production operations in-house.
For instance, the business has made significant investments in R&D to develop novel goods that cater to the evolving needs of its clients. This has made it possible for Esquel to continue to lead its sector and stay one step ahead of its rivals.
In order to make sure that its products are environmentally sustainable, Esquel has also adopted a number of measures. For instance, the business has…
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