Estee Lauder Case 1 Analysis

2766 Words Dec 4th, 2010 12 Pages
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Table of Contents
Case Abstract 3
Vision Statement & Mission Statement 4
Vision Statement: 4
Mission Statement: 4
External Audit 5
Opportunities & Threats 5
Competitive Profile Matrix (CPM) 6
External Factor Evaluation (EFE) Matrix 7
Internal Audit 8
Strengths & Weakness 8
Financial Ratio Analysis 9
Internal Factor Evaluation (IFE) Matrix 10
SWOT Matrix 11
SPACE Matrix 12
Internal External Matrix 13
Recommendations 14

Case Abstract
The Estee Lauder Companies Inc. engages in the manufacture, marketing, and sale of skin care, makeup, fragrance, and hair care products worldwide. It offers skin care products, including moisturizers, creams, lotions, cleansers, sun screens, and self-tanning products; and makeup products
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We used the same idea with Estee Lauder, L’Oreal, and Revlon. L’Oreal and Revlon is a real big competitor for Estee Lauder. Estee Lauder and L’Oreal perform above average on the CPM analysis. Revlon performed average compared how Estee Lauder and L’Oreal rated.
| | Estee Lauder | L’Oreal | Revlon |
Critical Success Factor | Weight | Rating | Score | Rating | Score | Rating | Score |
Advertising | .13 | 3 | .39 | 4 | .52 | 4 | .52 |
Product Quality | .12 | 4 | .48 | 4 | .48 | 3 | .36 |
Price Competitiveness | .10 | 2 | .20 | 4 | .28 | 4 | .28 |
Management | .12 | 3 | .36 | 2 | .24 | 2 | .24 |
Financial Position | .10 | 3 | .30 | 3 | .30 | 3 | .30 |
Customer Loyalty | .12 | 3 | .36 | 3 | .36 | 3 | .36 |
Global Expansion | .09 | 4 | .36 | 2 | .18 | 2 | .18 |
Sales Distribution | .08 | 3 | .24 | 3 | .24 | 2 | .16 |
Manufacturing | .07 | 3 | .21 | 3 | .21 | 3 | .21 |
Research and Development | .07 | 2 | .14 | 2 | .14 | 2 | .14 |
Total: | 1.00 | | 3.04 | | 2.95 | | 2.75 |

External Factor Evaluation (EFE) Matrix
An External Factor Evaluation (EFE) allows strategies to summaries and evaluate economic, social, and cultural factor through the uses of a numerical rating. In our case we evaluated the EFE of Estee Lauder. By numerically scaling Estee Lauder’s opportunities and threats we analyzed the importance of the programs they have to offer. First assigning each factor a weight of importance…