Estee Lauder Companies, Inc Case Analysis Seena Nelms Strayer University BUS 490 Business Policy Estee

Lauder is a New York based company who has been successful for of over 60 years, mainly because of its vision and mission. Estee Lauder s vision is to bri ng about an extraordinary experience they call High-Touch. High-Touch is bring ing the best to everything you do. Its mission is to stay committed to the hig hest standards of uncompromised ethics and integrity, by working together with a ll employees and the board of directors. Their mission and objectives are what has made the company into a billion dollar manufacturer and marketer in the cos metics industry. Being committed to working together with uncompromising ethic s and integrity, Estee Lauder strives to always: Provide customers with innovative cosmetic products of the highest quality. Deliver outstanding service by treating each individual as we ourselves would li ke to be treated. Create an environment that fosters personal growth and well being. Build partnerships with our suppliers, retailers and colleagues based on fairnes s and trust. Enhance our reputation of image, style and prestige. Pursue profit, but never at the expense of quality, service or reputation. Eliminate waste and reduce inefficiencies in order to provide maximum value to o ur customers. Be responsible citizens in every community we serve. With its vision and mission, I think Estee Lauder will continue being a leader i n the cosmetics industry. But I think they can increase their net sales in fra grance by investing more into research and development. Some of their decrease s in sales are a result of the economy. During this time, more promotional ite ms should be offered to bring in the customers. The Competitive Profile Matrix (CPM) identifies a firm s major competitors and its particular strengths and weaknesses in relation to a sample firm s strategic posi tion. http://www.studymode.com/essays/Estee-Lauder-Companies-Inc-682324.html Analysis of the Ethical Strategy of the Estee Lauder Companies I. Background Information A. Brief History B. Other Relevant Information (Industry, environment, etc) II. Analysis of the Ethical Strategy A. Stated Ethical Strategy 1. Philosophy section of the mission statement 2. Explicit statements about ethics and social responsibility 3. Codes of ethics 4. Other information B. Corporation and its Major Stakeholders 1. Employees 2. Customers 3. Shareholders 4. Community C. Institutionalization of Ethics 1. Explicit Components 2. Implicit Components D. Corporate Environmental Management 1. Environmental Policy

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Environmental Management Systems E. Crisis Management Policy III. Overall Evaluations and Conclusions IV. Recommendations V. Appendix

Background Information Brief History Estee Lauder, who believed that every woman could be beautiful, founded the Este e Lauder Company in 1946 with her husband Joseph Lauder. The Company opened its first department store account with Saks Fifth Avenue in New York City. The comp any initially launched with four products: Super Rich All Purpose Crme, Crme Pack, Cleansing Oil, and Skin Lotion. Eventually five other brands would be internall y developed. Aramis, a line of prestige fragrance and grooming products for men, was launched in 1964. Clinique, the first dermatological, allergy-tested, fragr ance-free cosmetics brand, emerged in 1968. Prescriptives, a personalized artist ry of custom blended makeup, complimentary colorprinting, and personalized skinc are regimen, was founded in 1979. Lab Series, Skincare for Men, the authority in men s skincare, debuted in 1987. Origins, the first department store wellness bra nd, was introduced in 1990. http://www.studymode.com/essays/Estee-Lauder-Companies-Ethical-Strategy-485580.h tml CASE STUDY 1: Estee Lauder Companies, Inc-2008 (page1-12) Background and History of Estee Lauder In 1946, Estee Lauder started her company with a jar of skin cream developed by a chemist uncle and the desire to bring out the beauty in every woman. Even befo re there were labels for the earliest Estee Lauder skin creams, they began to wi n loyal fans. By the time the revolutionary fragrance Youth-Dew was introduces i n 1953, the Estee Lauder Company had already won a reputation for innovation, re search and quality. In 1960 Estee Lauder opened her first account outside America. This account was Harrods in London. Within a few short years they opened outlets in Central Ameri ca, Denmark, Hong Kong, Italy, Spain, Sweden, Belgium New Zealand and Switzerlan d. This was just a beginning. There is hardly a country on earth now that is not a market for Estee Lauder products. By 1967 Mrs. Lauder, always known as a woman of impeccable style and taste, was recognized as one of the country s 10 Outstanding Women in Business. She accepted this award while opening production plants both stateside and overseas. The very next year Clinique Laboratories, another name synonymous with style and eleganc e in cosmetics was founded as yet another arm of the burgeoning assortment of co mpanies that Estee Lauder was becoming. During the rest of the 1960 s, along with the 70 s, 80 s and 90 s, the Lauder s continued to bring new products and companies to t he world of cosmetics and fragrance. Today, Estee Lauder has become the largest privately owned Cosmetics Company in the world with sales well in excess of one billion dollars. It encompasses a sig nificant number of recognizable companies including but not limited to; Estee La uder, Aramis, Clinique, Prescriptives, Origins, MAC, Bobbi Brown essentials, Tommy Hilfiger, jane, Donna Karan, Aveda, La Mer, Stila, Jo Malone, and Bumble and bu mble. Products include various fragrances, cosmetics, colognes, perfumes, body o ils, serums, and lotions http://www.studymode.com/essays/Estee-Lauder-1334445.html 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 ski

n care products, including moisturizers, creams, lotions, cleansers, sun screens , and self-tanning products; and makeup products, which consist of lipsticks, li p glosses, mascaras, foundations, eye shadows, nail polishes, and powders, as we ll as related items, such as compacts, brushes, and other makeup tools. The comp any provides its fragrances products in various forms, including sprays and colo gnes, lotions, powders, creams, and soaps. Its hair care products comprise hair color and styling products, shampoos, conditioners, and finishing sprays. The Es tee Lauder Companies sells its products under the Estee Lauder, Aramis, Clinique , Prescriptives, Lab Series, Origins, M A C, Bobbi Brown, La Mer, Aveda, Jo Malo ne, Bumble and bumble, Darphin, American Beauty, Flirt!, Good Skin, Grassroots, and Ojon brand names. It also operates as a licensee for fragrances and/or cosme tics sold under the Tommy Hilfiger, Kiton, Donna Karan, Michael Kors, Sean John, Missoni, Daisy Fuentes, Tom Ford, and Mustang brand names. The company sells it s 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. http://www.studymode.com/essays/Estee-Lauder-Case-1-Analysis-506190.html ESTEE LAUDER COMPANY ANALYSIS WITH BENCHMARK EVALUATION OF [pic] DEAR DR. ASHRAF MAHATE, Enclosed is the company analysis of Estee Lauder as per your request as it s an in tegral part of our course requirement. Estee Lauder was selected on the basis of its vast business profile and complex nature of its annual report, which were d ealt by us with an exigent attitude. Estee Lauder s performance was compared to ou r chosen benchmark company Avon because of it being Lauder s largest competitor gl obally. The analysis conducted were a team effort as individual members contributed in a ccordance with their best mental and physical capacity. The in depth analysis se rved as the basis to learn about how financial ratios and forecasting depict com pany status and are significant in making critical business decisions. We are greatly obliged to you for giving us this opportunity to enhance our anal ytical and decision-making skills and giving us a clear understanding of these t opics in your lectures and lastly thanking you in advance for taking out your ti me to evaluate our report on Estee Lauder. Best Regards, Yours Truly, Sumaiya Nathani Kamal Salim Al Yamahi Humaid Ur- Rehman Dhanya Issac Mousa Milhem topic page no EXECUTIVE SUMMARY introduction

Estee lauder Avon industry overview swot analysis Introduction Estee lauder Avon ceo statement analysis Estee lauder Avon Ratio Analysis Introduction Trend analysis Comparative analysis Financial forecasts Estee Lauder Avon Financial leverage Estee Lauder Avon Recommendations Conclusions Appendix bibliography THE MAIN OBJECTIVE OF CONDUCTING A COMPANY ANALYSIS IS TO OFFER A GUIDELINE TO P OTENTIAL INVESTORS AND CREDITORS DECISION-MAKING PROCESS. ESTEE LAUDER, IN COMPA RISON TO THE BENCHMARK COMPANY AVON HAS BEEN FINANCIALLY ANALYZED FOR THE YEARS 2004 AND 2003. BOTH THE FIRMS EXIST IN COSMETIC AND PERSONAL CARE INDUSTRY WHI CH CURRENTLY IS http://www.studymode.com/essays/Estee-Case-Analysis-640287.html EXECUTIVE SUMMARY The Estee Lauder Companies (Estee Lauder) is a globally recognized manufactures and markets skin care, makeup, fragrances and hair care products in over 140 cou ntries spanning the Americas, Europe, the Middle East, Africa and Asia Pacific. It is headquartered in New York and employed about 32000 people. Some of the best known brands of the company include Estee Lauder, Aramis, Clini que, Prescriptives, Lab Series, Origins, M.A.C, Bobbi Brown, La Mer, Aveda, Jo M alone, Bumble and bumble, Darphin, American Beauty, Flirt!, Good Skin and Grassr oots. They strongly believe that growth is possible globally by their ongoing strategy to build a diversified business base that is Multi-National, Multi-Channel and Multi-Brand. In conclusion, Este Lauder could introduce sub-brands customized for different ma rkets, which provide the flexibility to enjoy multiple brand images without dilu ting each other. Since ESTEE LAUDER is a global name, so it must provide the sam e concentration on all its markets to bring in global stability in its business as a whole. COMPANY DETAILS Vision: The guiding vision of The Estee Lauder Companies is: Bringing the best to everyone we touch. By the best, they mean the best products, the best people and the best ideas. Thes e three pillars have been the hallmarks of the Company since it was founded by M rs. Este Lauder in 1946. They remain the foundation upon which they continue to b uild their success today. Company Profile:

One of the world s leading manufacturers and marketers of quality skin care, makeu p, fragrance and hair care products. The Company s products are sold in over 140 c ountries and territories. For fiscal year 2008, net sales were $7.9 billion and net earnings from continuing operations were $474 million. Key facts of Estee lauder: The Company was founded in 1946 by Este and Joseph Lauder. Their products are sold in more than 140 countries and territories. Headquarter in New York. They have 29 http://www.studymode.com/essays/1-Estee-Lauder-401315.html STRATEGIC MANAGEMENT CASE ANALYSIS. GROUP 1 ESTEE LAUDER I. BACKGROUND OF THE COMPANY Este Lauder Companies, Inc. founded by Estee Lauder and her husband Joseph in 194 6 started by selling four skin care products invented by her chemist uncle in be auty salons and hotels. The enterprise established their first department store account with Saks Fifth Avenue in New York in 1947. By 1960, Estee Lauder was an international manufacturer and marketer, selling their products in the famous H arrods Department Store in London. In the subsequent years, they opened outlets in Central America, Denmark, Hong Kong, Italy, Spain, Sweden, Belgium, New Zeala nd and Switzerland. Today, Estee Lauder markets its products through different brands in more than 1 40 countries and territories. It also holds the global license for fragrances an d cosmetics. The company consists of a collection of prestige brands targeted at a diverse selection of consumers. The group s portfolio of brands includes the mo st recognized labels for mature customers (Estee Lauder, Clinique, Prescriptives , Aramis, and La Mer), eco-correct labels (Aveda and Origins), as well as hip la bels (M.A.C., Bobbi Brown, Tommy Hilfiger, Donna Karan, Stila, Jo Malone, Bumble and Bumble, Kate Spade, jane, Darphin and Smashbox). The Estee Lauder Companies is an organization which engages in the manufacturing , marketing, and sale of several beauty products. The company is divided into f our sectors, skin care, makeup, fragrance, and hair care. Estee Lauder is based in New York City and currently employs 32,300 people. The products are mostly marketed through department stores, specialty retailers, ups cale perfumeries, pharmacies, salons, and spars. Additionally products are sold at company owned free standing stores and through e-commerce in selected countr ies. The company is still controlled by the Lauder family, which controls about 70% of the voting shares. Estee Lauder s grandson is currently the chairman of. http://www.studymode.com/essays/Estee-Lauder-1369395.html Company Overview: The Estee Lauder Companies Inc., ticker symbol EL, was founded in 1946. Th e company sells a variety of beauty and hair-care products and currently employs 31,300 people. Over the course of its lifetime, the company has bought or merge d with many famous beauty brands. Some of the more recognizable companies that a re a part of the Estee Lauder family include: Clinque, Aramis, La Mer, Origins, Bumble and Bumble, Aveda, and Bobbi Brown. In 2006, they were marketing their products to over 130 countries, and in Septem ber, they made agreements with the popular designers, Coach and Missoni, to crea te their fragrances. Also in 2006, Estee Lauder sold their makeup line, Stila, a s it was not generating enough revenue. In 2007, they acquired Ojon, a popular C anadian hair-care company, but sold their Rodan + Field brands. Sales began grow ing tremendously in China and Russia and helped the company s overall sales grow n ine percent from the previous year. The company also announced that Frabrizio Fr eda, originally from Proctor and Gamble, would become their future president and

chief operating officer starting in 2008. In 2008, Estee Lauder hired Omnicon M edia Group s M2M as their advertising agency in twelve different countries includi ng places in Europe and Asia. During 2008 Estee Lauder also introduced their Tim e Zone Line and Wrinkle Reducing Moisturizers which were clinically proven to re duce the skin s visible age. The company also opened up a brand new facility in On tario for manufacturing and development. Situational Analysis: During the months of September, October, November, and December, Estee Lau der advertised the following products: Double Wear Lipstick, Advanced Night Repa ir, Double Wear Makeup SPF 10, Bold Volume Lifting Mascara, and Sensuous by Este e Lauder (perfume). The most popular items advertised were the Double Wear Lipst ick, which ran three different magazine ads, and the Advanced Night Repair which was featured several http://www.studymode.com/essays/Estee-Lauder-1548226.html