1.0 Overview (Chronology)
Estee Lauder, the founder of what is now a major cosmetics empire, started her business with a single jar of face cream that was mixed by her uncle, a chemist. Today, based in New York City, Estee Lauder is a manufacturer and marketer of four cosmetics product lines, like skin care, makeup, fragrances, and hair care products. These products are sold in over 130 countries and territories under different brand names, such as Estee Lauder, MAC, Bobbi Brown, Clinique, Aveda and so on. The company has 26 brands and employs over 22,000 people worldwide.
A young entrepreneur named Estee Lauder founded that being young, beautiful and youthful are common thought and feel to everyone, man and woman. Due to that, she felt that she could provide a product that espoused those qualities. The company was founded in by Estee Lauder and her husband, Joseph Lauder with the help of her uncle, John Schotz.
In the early year, Estee was unable to convince Madison Avenue to carry her product into the market. So, facing this rejection, she began to market her product straightly to the customers. Her first products were sold to beauty salons and hotels. The first department store account was established at New York. After 15 years, the company globalized their business all over the countries. Besides, in 1998, Estee Lauder began selling a variety of products over the Internet, so, ELC online- new division to manage the online activities. Estee focus on gender, men and women, so, additional brands like Aramis, is products for men which launched in 1964.
Mrs. Estee Lauder was one of the ten Outstanding Women in Business in the United States, 1967. Then, she received an Achievement Award from Albert Einstein College of Medicine at Yeshiva University. At the same time, the company expanded by opening Clinique laboratories, Inc. and in 1983, their products were introduced in the Soviet Union (Russia).
Estee Lauder Companies, Inc.
Finally, after a great achievement, Mrs. Estee Lauder passed away in April 2004. She established a small home operation into worldwide and wins the competition with the spirit of entrepreneurship and has an excellent business strategy. She developed a long-term strategy at the early stage. There are based on five imperatives:
• Optimized if brand portfolio
• Strengthening of product categories
• Strengthening and expansion of global markets
• Diversification and strengthening of channels of distribution • operational and cost excellence
She was proud that her company went public in 1995 and now is led by Estee and Joseph’s children and grandchildren. They were also maintaining Estee’s goal which is “to optimize, diversify, and grow the business over the long term”.
Estee Lauder Companies, Inc.
2.0 Strategy Formulation of Vision and Mission
Vision is where we answers the question of ‘what we want to become’. It is the first step in strategic formulation and it is usually simple and in one sentence. The vision for Estee Lauder is: “Bringing the best to everyone we touch”
Mission are enduring statements of purpose that distinguish one business from other similar business. It identifies the scope of a firm’s operations in product and market terms. Mission statements basically answers the question of ‘What is Our Business?’ There are nine components that have to be fulfill in a mission statement, which are: 1. Customer
2. Product & services
5. Concern for survival, growth and profitability
7. Self concept
8. Concern for Public image
9. Concern for employees
Estee Lauders current mission
The mission at Origins is to promote beauty and wellness through good-for-you products and feel-good experiences while celebrating the connection between Mother Nature and human nature. Origins are a brand that offers options for...