Tuesday, February 2, 2010

Strategic Management:: Case Study 1 (1) - (Estée Lauder – Vision and Mision)

A. Case Abstract

Estée Lauder (www.elcompanies.com) is a comprehensive business policy and strategic management case that includes the company’s fiscal year-end June 2007 financial statements, competitor information and more. The case time setting is the year 2008. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company. Headquartered in New York City, Estée Lauder’s common stock is publicly traded on the New York Stock Exchange under the ticker symbol EL.

Estée Lauder produces a diverse line of shampoo, perfumes, lip gloss and other skin care products. A small sampling of the brand names marketed by Estée Lauder include: Estée Lauder, Clinique, American Beauty, and Flirt. The products are sold through various distribution channels, including specialty stores, department stores, pharmacies, the and Web. Estée Lauder operates in the Americas, Europe, Middle East, Asia, and Africa. The company has over 28,000 employees and is led by CEO William Lauder whose base pay was over $3.5M in 2007. The firm’s two major competitors are conglomerate giant Procter & Gamble and L’Oreal.


B. Vision Statement (proposed)

Estée Lauder is committed to its name being synonymous with the best quality skin care products in the world.


C. Mission Statement (actual)

Bringing the best to everyone we touch.

(proposed)

Our mission is to deliver the highest quality skin care products, fragrance, cosmetics, and hair care products (2) for men and women of all ages and nationalities (1) around the world (3). By using the latest technology (4) in cosmetic design, we are able to ensure our customers’ high demand for superior and safe products will be met or exceeded in each and every product purchased (7). Providing the best products possible to our customers will enable our philosophy (6) of improving the sprit of our customers’ mind, body and soul to continue from generation to generation (5). By hiring the most experienced chemists (9) to design new products that are safe and effective, we strive to continue growing our product line. We strive to be socially conscious by providing products that are environmentally safe and free from animal testing (8).

1. Customer
2. Products or services
3. Markets
4. Technology
5. Concern for survival, profitability, growth
6. Philosophy
7. Self-concept
8. Concern for public image
9. Concern for employees

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