Estee Lauder Mission Statement

The internal analysis of the company paints a picture of a firm that is well endowed with resources, both human and capital. The company boasts of an asset base of $11.4 billion according to the financial reports for the year 2012. This is huge, and it shows that the company is well grounded and has the capacity to gain a competitive edge in the highly competitive retail market in which it operates (Britton & Jorissen, 2007).

Access granted to a huge market having in mind that retail chains are more and more developing in to the first choice of customers in terms of shopping

Given the net sales in 2011 is still higher than 2010, we can assume the problem is most likely with its operating cost management. On the other hand, HH’s assets turnover rate dropping 0.30 from 2010 suggests an inefficiency of generating more sales with its increased assets in 2011.

Her and her husband were the company at this time , only giving out a handful of products . In need of a facility to create these products the Lauders converted a Manhattan restaraunt into a factory. She would sell during the day and then cook up all her creams and oils at night. Estee landed her first department store order for her cosmetics. Saks Fifth Avenue bought $800 worth of cosmetics from Estee, which sold out in two days .Another good strategy Estee used was when someone bought one of her products you would get a free gift along with the purchase. The couple opened their first store in New York in 1944. Estees dedication to get her cosmetics in department stored payed off in the 1950s. Her line became a regular feature in stores such as :I. Magnin, Marshall Feild's, Nieman-Marcus and Bonwit Teller. The Lauders invested their entire $50,000 advertising budget in samples to be offered through direct mail, charity giveaways and as gifts with purchases. (Lauder's "free gift with purchase" technique would become a company trademark and later, a standard industry practice.) The result was thousands of new customers. Lauder continued to broaden her product line, introducing (among other things) male toiletries under the Aramis brand name and the first line of fashion-oriented, allergy-tested cosmetics, Clinique. In addition, Lauder set out to conquer the rest of the world, convincing Harrod's of London and Paris' Galleries Lafayette to carry her products. By the mid-1970s, Lauder's products were on the market in more than 70 countries

Their extensive research in market trends enables them to keep a step ahead of its competitors by constantly expanding to meet consumer needs.

The company employs and trains skilled sales personnel to promote its items. Besides, direct sales branches are strategically located in high traffic zones to attract more potential buyers and strengthen revenues. The company manages its supply chain effectively. It produces annual publications of supplier codes of conduct, a move that increases brand recognition. The company enjoys implausible trade name trustworthiness, implying that many people will

Many great fashion designers have entered the market of fragrance (Chanel, Lanvin, Givenchy, Yves Saint‐Laurent, Balenciaga …). After that, the speakers of the cosmetic market launched their own perfumes (Yves Saint Laurent, Estee Lauder) and finally, the family brands made their entry on the market (L’Oreal, Procter & Gamble, Unilever…). These

Assume the role of Pierre Pirard, I would execute the supply chain re-engineering for the value it could bring. The turnkey strategy would greatly improve Elizabeth Arden’s performance on supply chain efficiency and effectiveness. The plan should include supplier consolidation to reduce COGS as well as an improvement on working capital. It also requires a re-design of the organization structure.

The recent decline in share price reflects that the market recognizes the declining profitability of the industry.

Estée Lauder has an extremely large presence as the global leader in prestige beauty with products being sold in more than 150 countries. This global success is attributed to their focus on cultural relevance, making sure that their products, signage, marketing etc. appeals to consumers in each local market.

It is believed that the decline began when the market became more competitive and consumers began to demand lower costs and quicker delivery. Since this had not previously been an issue, the company had a difficult time adjusting (Beer & Tushman, 2013).

Distribution – to make certain they are getting the latest most innovative products to customers quickly

The sales revenue decreased from 9 million to 6 million in 12 years and also they incurred operating losses.

At the beginning the company was considered leader of its industry due to its capacity to customize a store to its neighborhood,

Makeup Art Cosmetics (MAC) was founded in 1985 in Toronto by Frank Toskan and the late Frank Angelo. The business plan concentrated on targeting young, fashionable females by creating cosmetic products which contain unique textures and colours. Using this strategy, the company targeted the ¡°hip¡± celebrities and other cosmetic influencers to gain recognition and market share in the younger consumer market. Since its inception, the company has grown to become a multi-national organization operating in over 180 locations worldwide. In the late 1990¡¯s, MAC was purchased by Estee Lauder, which has led to the alteration of the company¡¯s governance; the culture of the firm changed from that of an entrepreneurial-style with limited rules into