Revlon Case Analysis

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REVLON INC.

Point of View: The analysis of the Revlon's case and the recommendation provided is based on the company's consultant's point of view.

Problem:

Since the CEO of Revlon started to minimize the cost of operation by consolidating the functions of the departments which can be combined and eliminating other management positions in order to reduce its expenses, it can also the reason why the company experienced decreasing sales and operating losses because there is a possibility of having problems in one of the department that is not being properly addressed since there is no sufficient number of department heads and personnel who can work together for immediate resolution.

Areas of Consideration:

Revlon has been in the industry since 1932 where the brand has been known worldwide as a beauty products provider which started from nail polish to lipsticks and other cosmetics and skin care product. Since the company was able to enter different countries across the globe, this is an indicator that the company produces quality products to its consumers. Revlon's research and development team is dedicated in developing products to beautify, enhance and maintain the young and pleasing appearance of women which has been evidently successful in the addition of their cosmetic and personal care products from its nail polish. Throughout the years in the business, Revlon was able to continue its operation not only in the United States but also in other foreign countries. Based on the sales reported, Revlon continuously increase the sales percentage outside US which is an indicator that its products has penetrated foreign markets.

Although the company was able to increase their sales in the countries outside US, Revlon's overall sales decrease. The company also incurred operating loss and debts in the past three years resulting to the CEO's decision to cut cost by means of reducing its workforce and consolidating functions. The rise of gas and...
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