Company Background - Estee Lauder
Appendix 1 - Company Background: Estée Lauder Companies Ltd
Global Corporate Profile Statement:
“We are a growth company. Our mission is to keep expanding by taking our brands into new geographies and the best retail opportunities, creating must-have products. The consumer is always at the centre of our thinking” (Fabrizio Freda, President and CEO, Estee Lauder Companies Limited)
Estée Lauder Companies is a leading manufacturer of prestige skincare, makeup, fragrance and hair care products. The company was founded in 1946 by Mrs. Estée Lauder, with only 4 cosmetic products and unlimited dreams. 66 Years later and with estimated sales of $8.8 billion per annum, it has a 29 strong brand portfolio (24 of which are sold in most countries) and is sold in over 150 countries. The company went public in 1995 but is still majority family owned, still controlling 70% of the voting shares. Since it became a public company, the Board has developed corporate governance practices to help fulfil its responsibility to stockholders. The company believe family controlled companies have a great future in the public sectors as they contain strong internal values, trusts and priorities
Global market share at the end of the 2011 financial year was estimated at 6.5% of the %94 billion skin care segment and 12% of the 46% billion make up segment. Profit margins are close to 18.5%, slightly above the market segment average of 17.3% in 2010 (Nasdaq trade.com)
Global Company Structure
Estée Lauder UK Affiliate (Used for assignment)
Affiliate Company Structure
The organisation operates on a divisional structure, also called a product structure (Harold Leavitt, cited in Strategic Management of health care organisations, p385), clearly defining the reporting hierarchy. This form of structure is used to effectively control, coordinate and motive employee groups effectively as the organisation operate several different product brands under a global umbrella.
Global Corporate Profile Statement:
“We are a growth company. Our mission is to keep expanding by taking our brands into new geographies and the best retail opportunities, creating must-have products. The consumer is always at the centre of our thinking” (Fabrizio Freda, President and CEO, Estee Lauder Companies Limited)
Estée Lauder Companies is a leading manufacturer of prestige skincare, makeup, fragrance and hair care products. The company was founded in 1946 by Mrs. Estée Lauder, with only 4 cosmetic products and unlimited dreams. 66 Years later and with estimated sales of $8.8 billion per annum, it has a 29 strong brand portfolio (24 of which are sold in most countries) and is sold in over 150 countries. The company went public in 1995 but is still majority family owned, still controlling 70% of the voting shares. Since it became a public company, the Board has developed corporate governance practices to help fulfil its responsibility to stockholders. The company believe family controlled companies have a great future in the public sectors as they contain strong internal values, trusts and priorities
Global market share at the end of the 2011 financial year was estimated at 6.5% of the %94 billion skin care segment and 12% of the 46% billion make up segment. Profit margins are close to 18.5%, slightly above the market segment average of 17.3% in 2010 (Nasdaq trade.com)
Global Company Structure
Estée Lauder UK Affiliate (Used for assignment)
Affiliate Company Structure
The organisation operates on a divisional structure, also called a product structure (Harold Leavitt, cited in Strategic Management of health care organisations, p385), clearly defining the reporting hierarchy. This form of structure is used to effectively control, coordinate and motive employee groups effectively as the organisation operate several different product brands under a global umbrella.
References: Swayne L.E, Duncan W.J and Ginter P.M (2006), Strategic Management of health care organisations, www.googlebooks.com, (p 385-386) Britain’s Top Employers, www.britianstopemployers.co.uk (Accessed last 22nd August 2012)