Case Study On Revlon 6fy2c

Revlon Inc. Case Study:  Vision Statement :  “To Provide Glamour, Excitement, Innovation Through Quality Products At Affordable Price”  Mission Statement :  “Revlon Is A World Leader In Cosmetics, Skin Care, Fragrance And Personal Care And Is A Leading Mass Market Cosmetics Brand “  “To appear As leading Cosmetics And Personal Care Firm In The Twenty-First Century By Appealing To Young/Trendy Women, Health Conscious (Skin Care), And Elder Women With Its Variety Of Brand”

Mission Statement Evaluation Matrix

Organization Statement

Revlon Custome Products Markets Concern for Technol Philosop SelfConcern Concern rs or Survival, Growth, ogy hy Concept for Public for Services Profitability Image Employees Yes

Yes

Yes

Yes

No

No

No

No

No

Analysis Revlon’s mission statement is too narrow considering the Corporate Social Responsibility (CSR) factor into consideration Revlon needs a new mission statement which primarily focus on CSR topics like concern for public image, self concept, concern for employees etc and among other factors its philosophy which can give customers, employees & stakeholders a decent idea about the organizational and their investment in it  Proposed Mission Statement To meet customers need for superior quality services. Provide secure & challenging work environment for all employees. Meet everyday needs for nutrition; hygiene and personal care with brands that help people feel good, look good, and get more out of life. Total commitment to exceptional standards of performance and productivity, to working effectively, and to a willingness to embrace new ideas and learn continuously

Present Conditions: Revlon is struggling to recover and collect debt of almost $2.3 billion. The research and development department is also struggling to offer new products to the market. In recent years Revlon launched Vital Radiance, a cosmetic line for older women with 100 products and it was the largest launch since ColorStay in 1994. However the product was not well received by the market because other competitors already provide the products and the prices of the Revlon product was also very high as compare with rivals. Revlon discontinued the brand in September 2006. Revlon planned to launch a new prestige fragrance called Flair in 2006, but delayed the launch until debt could be restructured. The company issued $185 million in stock in 2006 to raise money to reduce debt. MacAndrews and Forbes Holdings agreed to purchase a portion of the stock and to purchase nay stock not purchased by current stockholders. MacAndrews also extend a line of credit of $87 million to Revlon which can help the Revlon in the recovery of losses. Competitors: The Revlon’s major competitors are Proctor and Gamble, Avon Products, Estee Lauder Companies, L’Oreal, and Unilever. Other competitors include samall companies such as Urban Decay, Specialty stores such as Bath and Body Works, Body Shop, and Victoria’s Secret.

M- Competitive Profile Matrix Revlon Estee Lauder Avon Critical success Factors Weights Rating Score Rating Score Rating Score Advertising 0.21 4 0.84 3 0.63 3 0.63 Product Quality 0.16 4 0.64 4 0.64 4 0.64 Price competitiveness 0.06 2 0.12 3 0.18 3 0.18 Management 0.09 2 0.18 3 0.27 4 0.36 Financial position 0.09 2 0.18 3 0.27 4 0.36 Customer loyalty 0.13 4 0.52 3 0.39 3 0.39 Global Expansion 0.14 3 0.42 3 0.42 4 0.56 Market Share 0.12 3 0.36 4 0.48 4 0.48 Total 1 3.26 3.28 3.6 Analysis: After studying the case of Revlon Inc’ now we are going to analyze it that what type of strategy they need to follow in the coming years. The Revlon is in troubles in these days and therefore we are going to analyze the external and internal environments of Revlon first then we will suggest with the help of different tools and techniques an appropriate strategy for them.

EFE Matrix for Revlon Key External Factors. Opportunities: 1. The young migrants to America are increasing. 2. Personal Care products usage is increasing. 3. Men also using the cosmetic products. 4. Latin America represents a growth opportunity. 5. The older age women entering to the cosmetic industry. 6. Women in China, India and Middle East are rapidly growing Interested in purchasing more cosmetics Threats: 1. The young age women are decreasing. 2. The racial and ethnic issues. 3. Consumers’ concerns about product safety. 4. The competition is increasing day by day. 5. Strong competitors are entering to industry. 6. Disposable income of Americans decreasing.

Weight

Rating

0.15 0.1 0.07 0.09 0.08 0.06

4 3 2 2 3 1

0.6 0.3 0.14 0.18 0.24 0.06

0.1 0.09 0.08 0.07 0.05 0.06

4 3 2 2 1 3

0.4 0.27 0.16 0.14 0.05 0.18

1

Score

2.72

From the above analysis we can conclude that the company position is not too much bad not too much good but only .22 points are high than the average score.

Internal Factors Evaluation (IFE) Matrix: Key Internal Factors. Weight Rating

Score

Strengths 1. 2. 3. 4. 5. 6. 7.

Strong social responsibility programs. Minimum management expenses. Strong marketing program. Strong research and development program. Large mass merchandisers and chain drug stores. Great operating efficiency and use of capital assets. Continues new product development.

Weaknesses 1. A huge amount of long term debts. 2. High prices than competitors. 3. Lack of financial resources. 4. Minimum diversified products compared with competitors. 5. Large amount of advertising expenses. 6. Decrease in current assets and increase in current liabilities.

0.08 0.09 0.1 0.1 0.07 0.06 0.08

3 3 4 4 3 3 3

0.24 0.27 0.4 0.4 0.21 0.18 0.24

0.1 0.09 0.05

2 1 1 2 2 1

0.2 0.09 0.05 0.16 0.1 0.05

0.08

0.05 0.05 1

2.59

From the above analysis we can conclude that the company internal position is only .09 is not too much strong because the minimum score is 2.50 and it got only .09 points more than the average score.

Strategic Management Assignment-3 “Case Study of Revlon Inc’ 2007”

SUBMITTED TO:

Professor: TAREK ABDEEN SUBMITTED BY:

Mohamed Attia Attia. MBA Supply Chain Management (4 semesters)