Estee Lauder Companies, Inc Strategic Management: Case Study Report
Submitted to: Miss Farah Zarak
Submitted by: Muhammad Owais Rana Abdur Rehman Bakhshi Muhammad Waqas Ranjha Jawwad Jahan Jahanzeb Khan Khawaja Omer Javed
Dated: 22nd November 2011
Estee Lauder: Introduction Founded in 1946, this technologically advanced, innovative company has gained a worldwide reputation for elegance, luxury and superior quality. Estee Lauder Companies, Inc is a U.S manufacturer and marketer of skin care, cosmetics, hair-care and fragrance products. The company¶s headquarters are in Manhattan, New York City. The company launched with four products under its flagship brand but over the decades, the business has grown alongside its reputation for elegance and quality. One of the platforms that Estee Lauder discovered was in 1968, with the launch of Clinique Laboratories Inc and hence become the first company with a line of products that were allergy tested and 100 percent fragrance free. The popularity of the products emerging from this group facilitated its easy expansion into countries across the world. In 1960, the company entered Canada. The next year, it took on Central America, then, came Australia, France, Germany, Japan and the Soviet Union in 1973. In 1985, Estee Lauder¶s sales surpassed $1 billion which reinstated that its namesake¶s special touch, when it came to beauty and selfcare carried with it a universal appeal. In 2000, Estee Lauder Companies began to assert a significant presence on the Internet. Its internet marketing strategy contributed to the company¶s sales surpassing the $5 billion mark in sales just three years later. Today, Estee Lauder products are sold in over 130 countries under the brand names that include Estee Lauder, Tommy Hilfiger, Donna Karan, Michael Kors, Donald Trump, Sean John, Missoni, Daisy Fuentes Aramis, Clinique, Prescriptives, Lab Series, Origins, MAC, Bobbi Brown, La Mer, Aveda, Jo Malone, Bumble and Bumble, Darphin, Rodan& Fields, American Beauty, Flirt, Good Skin and Grass Roots. This conglomerate has not only become a leader in skin care products, but also in the world of corporate social responsibility. It is one of the leading and most active sponsors behind The Breast Cancer Research Foundation, and has also lent its support to such other organizations as the American Heart Association, Carnegie Hall, the Centre for the Advancement of Women, the Guggenheim Museum, Mount Sinai Medical Centre, and the Make A Wish Foundation. Within its own internal operations, Estee Lauder Companies has also committed itself to encouraging pollution prevention, resource conservation, waste minimization and recycling practices. Additionally, all products are tested for allergy and irritancy in clinical trials that do not make use of animals. With a motto of ³Bringing the best to everyone we touch,´ it continues to be an industry leader and a trend-setter.
Vision Statement: ³Bringing the best to everyone we touch´ Estee Lauder¶s current vision statement is precise, easy to understand and inspiring all together but we have analyzed that it lacks specification, does not fulfill the purpose of an impressionable vision statement which requires clearly stating what the company envisions for itself. Moreover, the current vision statement does not provide a foundation for developing a comprehensive and clear mission statement which is pivotal to strategic management. Proposed Vision Statement: ³Attaining complete share of mind and heart of our customers by delivering the promise of µforever young¶ leading to market leadership in the cosmetics industry´ In our proposed vision statement, we have clearly stated the three key aspects including claiming to attain absolute share of mind and heart of Estee Lauder¶s valued customers which is reiterated by promising to deliver the promise that any Estee Lauder product brings with it, of being young forever which will eventually lead to leadership position in...
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