Estee Lauder Case 1 Analysis

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  • Topic: Estée Lauder Companies, Financial ratio, Retailing
  • Pages : 10 (2766 words )
  • Download(s) : 806
  • Published : December 3, 2010
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Table of Contents
Case Abstract3
Vision Statement & Mission Statement4
Vision Statement:4
Mission Statement:4
External Audit5
Opportunities & Threats5
Competitive Profile Matrix (CPM)6
External Factor Evaluation (EFE) Matrix7
Internal Audit8
Strengths & Weakness8
Financial Ratio Analysis9
Internal Factor Evaluation (IFE) Matrix10
SWOT Matrix11
SPACE Matrix12
Internal External Matrix13
Recommendations14

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, which consist of lipsticks, lip glosses, mascaras, foundations, eye shadows, nail polishes, and powders, as well as related items, such as compacts, brushes, and other makeup tools. The company provides its fragrances products in various forms, including sprays and colognes, lotions, powders, creams, and soaps. Its hair care products comprise hair color and styling products, shampoos, conditioners, and finishing sprays. The Estee Lauder Companies sells its products under the Estee Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, M A C, Bobbi Brown, La Mer, Aveda, Jo Malone, Bumble and bumble, Darphin, American Beauty, Flirt!, Good Skin, Grassroots, and Ojon brand names. It also operates as a licensee for fragrances and/or cosmetics sold under the Tommy Hilfiger, Kiton, Donna Karan, Michael Kors, Sean John, Missoni, Daisy Fuentes, Tom Ford, and Mustang brand names. The company sells its products through department stores, specialty retailers, upscale perfumeries, pharmacies, salons, and spas, as well as through company-owned stores, spas, and Web sites; authorized retailer Web sites; stores on cruise ships; in-flight and duty-free shops; and self-select outlets. The Estee Lauder Companies Inc. was founded in 1946 and is based in New York, New York.

Vision Statement & Mission Statement

Vision Statement:
Bringing the Best to Everybody We Touch

Mission Statement:
We are a family company committed to working together with uncompromising ethics and integrity. We strive to always: 1. Provide customers with innovative cosmetic products of the highest quality. 2. Deliver outstanding service by treating each individual as we ourselves would like to be treated. 3. Create an environment that fosters personal growth and well being. 4. Build partnership with our suppliers, retailers and colleagues based on fairness and trust. 5. Enhance our reputation of image, style and prestige.

6. Pursue profit, but never at the expense of quality, service or reputation. 7. Eliminate waste and reduce inefficiencies in order to provide maximum value to our customers. 8. Be responsible citizen in every community we serve.

External Audit
Opportunities & Threats

Opportunities 1. Expected growth in the personal products industry is fueled by rising demand from emerging and developing markets. 2. Optimization of brand portfolio. 3. Strengthening of global markets 4. Expansion of global markets 5. Diversification of distribution channel 6. The world’s aging population represents an increased investment in the cosmetic industry.| Threats 1. Domination of the Asian department store channel 2. Australia has a slower and difficult retail environment particularly in the fragrance category. 3. Unemployment rate increase will disable Americans to buy the high-end products 4. The use of aerosols & fluorocarbons in products damaging the environment. 5. Animal testing for new products |

Competitive Profile Matrix (CPM)
Companies indentify strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context through which to identify opportunities and...
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