Documente Academic
Documente Profesional
Documente Cultură
2011
Table of Contents
1.0
2.0
Founder
Division
Mrs. Estee Lauder and her husband Joseph Lauder, Founded in 1946
Personel Care Industry
Skin Care segment
Makeup segment
Fragrance segment
Hair Care segment
Estee Lauder Inc. is one of the worlds leading manufacturer composed of
four divisions: 1) Skin Care 2) Makeup 3) Fragrance and 4) Hair care
Estee Lauder brands include:
Estee Lauder, Aveda, Bobbi Brown, Bumble and Bumble, Clinique, Donald Trump,
Flirt! Good Skin, Grassroots, Jo Malone, La Mer , Michael Kors, Missoni, Sean John,
Stila, Tommy Hilfiger, Tom Ford, Prescriptive, lab series skincare for Men, Origins, M.A.C,
Kiton, Darphin. Rodan+Fields, Daisy Fuentes and SmashBox.
The company's products are sold in over 150 countries across the world.
Estee Lauder is a licensee of several brands and markets its cosmetics and
other products under these brand names as well.
Sales revenue
2008
$
(million)
7,9108
2,996.8
2009
$
(million)
7,331.9
2,886.0
2010
$
(million)
7,811.5
3,227.1
Skin Care
3,000.4
1,432.0
427.1
2,830.9
1,150.9
402.4
2,978.2
1,1369
413.9
54.5
61.7
55.4
Make Up
Fragrance
Hair Care
Other
Mission statement:
Estee Lauder does not have a written mission statement
Mission & vision
Vision statement: Bringing the best to everyone we touch and being the
best in everything we do. By the best we mean the best products, the best
people and the best ideas.
Furthermore the company is committed to uncompromised ethics and integrity.
For all employees domestically and globally, and the board of directors, the
highest standards of ethics is a condition of employment. The full official
homepage elaborates by stating the following:
The Estee Lauder Companies, Inc. is committed to the highest standard of
profesional and personel conduct. All employees of the company are expected to
conduct themselves at all times within the letter and spirit of the Code.. A full
description of the code can be found at http://www.elcompaies .com/pdfs/codeof-conduct-2010.pdf.
Industry products
and services
*Because of lack of information on Skin Care product segment this analysis will be based on personel care industry . This evaluation also
will be based on major competitors in the industry due to the limitation of information given.
Case facts of Y axis The Latest Revenue achieved by the company 2010 (million)
Revenue achieved by Avon Company (2010) = $10,862.8 (Refer Exhibit 7, page38)
Revenue achieved by Estee Lauder (2010) = $7,795.8 (Refer Exhibit 7, page38)
Revenue achieved by P&G Company (2010) = $78,938.0 (Refer Exhibit 7, page38)
Revenue achieved by LOreal Company (2010) = $ 34,166.38 (Refer Exhibit 7, page38)
Note that Estee Lauder is small compared to some of its rival firms (Page37,para4).
LOREAL
Avon
(100)
EL
Low
Low
50
100
150
High
Based on information given, it can be concluded that P&G, LOreal, Avon are the closest competitors for Estee Lauder in the personal care industry.
Need to take note that Colgate-Palmolive also is one of the closest competitors in the industry. But due to the lack of information given in the case
study, the position of Colgate-Palmolive in the industry could not be illustrated here. In terms of financial position, Estee Lauder Company seems a bit
10
behind compared to its major competitors. Nevertheless, Estee Lauder successfully achieved the highest number of operation in different countries
compared to the other rivals. In fact, EL must be sensitive to its nearest competitors strategies in order to ensure its success in the industry.
Case Facts
Opportunity
Threat
The impact that rising energy prices can inflict on the personel care sector
(Page36,para7)
The Federal Food and Drug Administration does not require testing of
cosmetics (Page37,para3)
Economic forces
U.S stock market dropped more than 1,000 points in the 10 days prior to
the companys August 15, 2011 release (Page29, Para3).
11
During 2010, the value of the U.S dollar relative to the international
currencies was volatile, which impacts companies with international
operations (Page36, Para4).
Beauty, youth and forever young are common themes in the personel
products industry (Page29, Para4).
The worlds aging population will multiple by 2.5 times in the next
40year.including high growth countries such as China and India
(Page36,para5)
13
There have been consumer complaints and inquires into the use of
animal testing for new products (Page37,para2)
All of the top competitors in the personel products are diversified, with
many brand names and wide range of products (Page37,para4)
Technological forces
Innovation in product development will also remain an extremely
important factor in the industry (Page37,para2)
Total
14
Conclusion:
From the above PEST analysis, shows the presence of many opportunities occurred from Political, economic, social as well as Technology point of
view. In order to stay success in this industry, Estee Lauder should grab all the opportunities revealed and since threat cannot be controlled, the
company who want to invest in this industry really need to be aware of the threats in order to continuously sustain in the industry. As a matter of fact,
Estee Lauder company cannot avoid from facing this threat but it can control to reduce the threat.
14
Case Facts
LOreal is one of the worldwide leaders in cosmetics
and with 17 global brands, 66,619 employees and
offices in 58 countries (Page37,para5).
Opportunity Threat
LOreal
15
Avon
Revlon
Competitors
Weakness
16
N/A
N/A
Competitors
objective and
strategy
LOreal
17
LOreal
Colgate-Palmolive
18
Avon
Competitors
Distribution
Channels
LOreal
Avon
19
Competitors
Financial Position
LOreal
Colgate-Palmolive
Avon
Revlon
Total
18
Based on the competitive analysis, LOreal, P&G, Avon, Colgate-Palmolive and Revlon have been found as the competitors for Estee Lauder in the
industry. There are 2 opportunities with 18 threats have been found in this analysis.
21
To choose opportunities and threats I tried to select those that are critical and able to give greatest impact on Estee Lauder. The selection proses will be
based on PEST analysis consideration as well as from competitive advantage analysis.
No.
1.
Opportunities
2.
Developing markets such as Brazil and India are showing signs of potential gains (Page 33, Para2).
3.
The worlds aging population will multiple by 2.5 times in the next 40year.including high growth countries such as China and India
(Page36,para5
Innovation in product development will also remain an extremely important factor in the industry (Page37,para2)
Opportunities
Probability
Impact
Justification
Possible
Moderate
Likely
Major
This target group able to give impact on Estee Lauder revenues and
growth in future since the demands from the worlds agi g populatio
is getting increase from time to time.
Probability
Insignificant
Almost certain
Low
Minor
Medium
Moderate
High
Major
High
Extraordinary
High
1
Likely
Low
Medium
Medium
High
Possible
Low
Low
Medium O2
High
High
Unlikely
Rare
Low
Low
Low
Low
Low
Low
Medium
Medium
Medium
Medium
O3
High
No.
1.
Threats
2.
All of the top competitors in the personel products are diversified, with many brand names and wide range of products (Page37,para4)
3.
The most diversified with a greater depth of product lines, P&G continues to show strong growth and profitability (Page 37,para6)
23
Threats
Probability
Impact
Likely
Major
Almost certain
Extraordinary
Possible
Moderate
Able to give major impact towards Estee Lauders usi ess, growth
and position in the industry. Avon has a strong brand reputation and
a le to redu e Estee Lauders arket share i the i dustry.
Probability
Insignificant
Almost certain
Likely
Low
Low
Consequences
Moderate
Minor
Medium
Medium
High
Major
High
Medium
High
Extraordinary
High
High
T2
1
T1
Possible
Low
Low
Medium
High
High
Medium
Medium
T3
Unlikely
Low
24
Low
Low
Rare
Low
Low
Low
Medium
Medium
No.
EFE
Opportunities
Weight
Ratings
Weighted score
1.
0.21
0.84
2.
Developing markets such as Brazil and India are showing signs of potential gains
(Page 33, Para2).
The worlds aging population will multiple by 2.5 times in the next
40years.including high growth countries such as China and India (Page36,para5
0.10
0.30
0.11
0.33
3.
No
Threats
1.
The most diversified with a greater depth of product lines, P&G continues to show
strong growth and profitability (Page 37,para6)
0.17
0.51
2.
All of the top competitors in the personel products are diversified, with many
brand names and wide range of products (Page37,para4
0.22
0.66
3.
0.11
0.22
Total
1
25
2.86
Conclusion
Based on External Factor Evaluation Analysis, Estee Lauder achieved 2.86 for skin care segment. As a matter of fact, I can clearly see that Estee
Lauder should maximize its external strategies and able to take advantage of existing opportunities and at the same time struggle to reduce the threats
since there are many large companies involved in the industry. Estee Lauder operates highly in a competitive market. The company face strong
competition from established international as well as regional and local players in the industry.
4.0 Internal Assessment
4.1. Strengths & weaknesses
In order to choose the Strengths and weaknesses, I have classified the strength level into three significant categories (Competence, Core Competence
and Distinctive Competence). In this case, Distinctive Competence will be chosen for further assessment as this category shows that Estee Lauder
able to perform unique capabilities that distinguish the organisation from its competitors .
No.
Strengths
1.
Estee Lauder began selling a variety of products over the internet and was one of the first major prestige firms to offer online shopping
(Page30, Para3).
Today Estee Lauder has 28 brands sell products in over 150 countries and territories and employs over 31,200people worldwide (Page30,
Para3).
The first cosmetics company to offer free samples and gift-with-purchase plansconsistent brand imaginary around the world
(Page36,para2)
Core Competence
Estee Lauder remains the top-ranked Prestige brand in its distribution in China and pleased with our progress in Brazil (Page29, Para2)
The first in the industry to introduce consistent brand imagery around the world.uses celebrities as endorses in testimonial advertising
Competence
2.
3.
4.
5.
26
No.
1.
Distinctive Competence
Acquisitions including Jo Malone, Stila Cosmetics, Gloss.comThe same year also licence agreements with Sean John, Missoni, and
Donald Trump (Page30, Para3).
Estee Lauder markets more than 9,000 products under many brands names such as Estee Lauder, Aranis, Clinique, Prescriptives, M.A.C,
Bumble.and its new acquisition Smashbox (Page34,para2)
Strong increases in all regions, recent technologically-advanced innovations include Clinique, Estee LauderWe are pleased with the
success of these new products (Page29,para2)
Weaknesses
2.
Justification
Most Incompetence
Estee Lauder needs to be aware with its
closest competitors since they all have the
capabilities to reduce Estee Lauders market
share in the industry.
Most Incompetence
3.
27
IFE
Weigh
t
Ratings
Weighted score
0.22
0.88
No.
1.
Strengths
Acquisitions including Jo Malone, Stila Cosmetics, Gloss.comThe same year also licence
agreements with Sean John, Missoni, and Donald Trump (Page30, Para3).
2.
Estee Lauder markets more than 9,000 products under many brands names such as Estee Lauder,
Aranis, Clinique, Prescriptives, M.A.C, Bumble.and its new acquisition Smashbox (Page34,para2)
0.19
0.76
3.
0.20
0.80
No.
1.
Weaknesses
0.16
0.32
0.12
0.24
0.11
0.22
In nutshell, Estee Lauder is doing well for now, However, much larger firms such as Avon, LOreal,
P&Gare working hard to everyday to take market share from Estee Lauder (Page39,para3).
2.
Estee Lauder does not have a written mission statement
3.
Total
Conclusion
3.22
IFE matrix shows the information related to strategy formulation Estee Lauder company. Estee Lauder achieved an overall of total weighted score.
3.22 indicates that the business of Estee Lauder on this skin care segment is internally strong because of Estee Lauder has an ability to respond to
internal factors of the organisation.
28
Value Chain provides a model of how Estee Lauder, makes revenue and profit from the raw materials. The facts in Value chain is the critical facts
based on an internal assessment.
29
Culture
The Estee Lauder Companies, Inc. is committed to the highest standard of profesional and personel conduct. All employees of
the company are expected to conduct themselves at all times within the letter and spirit of the Code A full description of the
code can be found at http://www.elcompaies .com/pdfs/code-of-conduct-2010.pdf.(Estee Lauders Ethics, Page30). Estee
Lauder strongly advocates corporate social responsibility to its customers and community in which it operates (Page33, Para3).
Management
Bumble and Bumble had expanded to all stand alone Sephora doors in the U.S.(Page29,Para2). Launched its first ever print
and campaign for its new texture cream in North America in April followed by the U.K. this month. (Page 29, Para2). Turkey
We also gained share in South Africa . In Rusia our sales every-day remains strong rising more than 20 percent which is about
double the overall Prestige beauty growth (Page29, Para2). Continue to acquire more brand licensing..Aveda (Page 30,
Para1). Utilizes a strategic business unit-type and others maybe family members (Page30, Para8).
Finance
Production
R&D/ MIS
Raw Material
N/A
30
Estee Lauder releases its fourth quarter and fiscal year financial result in mid-August of each year (Page29,Para3). Sales of
skin care products account for 41 percent or 44 billion of net sales. See exhibit 5 (Page 31, para2) Net sales increased 6 percent
or to a record gross margin 76.5 percent.$478million (Page31, Para2).
The first products sold were Super Rich All Purpose Crme, Crme Pack, Cleansing oil,, and skin LotionClinique (the first
dermatologist-guided, allergy tested, fragrance free cosmetics brand launched in 1968) (Page30,Para1). The company has
manufacturing facilitiesnearly every continent, see exhibit 2 (Page30, Para8) Estee Lauder manufacturing operations are
certified by an independent third party to conform to the ISO14001 standardssafely initiatives (Page34, Para1)
The company expanded again by opening Clinique Laboratories, Inc. (Page30, Para2). Launched multiple product lines
including Grassroots Research Labs (Page30, Para3). The company has R&D operations nearly every continent, see exhibit
2 (Page30, Para8). A new division called ELC Online was created to manage all online strategies and activities for all of its
brands (Page30, Para3).
Production/Operation
13 Factories for manufacturing.
See Exhibit 2 (Page 31) Estee
Lauder established its first
department store.at Harrods in
London, with the Hong Kong
market opening the following year
(Page30,
Para1).
Launched
Beauty Flirt and Good Skin
through its
Beauty Bank
division..and
Donald
Trump(Page30, Para3).
Product/Service
Recent
technologically-advanced
innovations
include
Clinique,
Repairwear Laser Focus, Estee
Lauder Advanced Night Repair Eye
Recovery
Complex,
La
Mer
Regenerating Serum and Origins
Plantscription (Page29,Para2) . Service
and individualized attention is offered to
customers via brand websites, toll free
phone numbers and six global
Consumers
Care
Centres
(Page35, Para1).
Marketing
Distribution
Marketing
Effort-3
Received raw
materials from
supplier (For Skin
Care Raw material)
Manufacturing/
Production
Online
shopping
Skin Care
Finished products
Custo
mer2
Marketing Effort-2
Customer-1
Travel
Retail
Consumers Feedbacks
Research and
Development
(R&D)
Distributor
Marketing
Effort-1
Business
In
Flight
Marketing
Effort-4
Freestanding
Company
End Users/
Individual/
Consumers
Specialty
retailers
Pharmacies
Upscale
Department
Store
Stores
in
Cruise
Ships
Duty
Free
Shops
in
Airport
Average
Weak
1.0
4.0
3.0
High
2.0
Grow and Build
3.0
Medium
2.0
Low
1.0
EFE
IFE
2.86
3.22
The division falls into cell IV which can be described as grow and build. Intensive strategies such as product development can be most appropriate for this division.
32
According to IE matrix, Estee Lauder positioned in cell IV which can be described as aggressive (grow and build), so I will chose S/O strategies from SWOT
analysis.
SWOT
Turnaround (W/O)
Aggressive (S/O)
Defensive (W/T)
Diversification (S/T)
Aggressive
33
IE
Grow & Build
Hold &
Maintain
Harvest or Divest
Harvest or Divest
Strengths
Opportunities
1. Innovation in product development will also
remain an extremely important factor in the
industry (Page37,para2)
Threats
1. The most diversified with a greater depth of
product lines, P&G continues to show strong
growth and profitability (Page 37,para6)
SO Matches
34
ST Matches
ST1: Take the opportunity to continue implement
strategic focus, acquire interest in start-up
companies and expanding skin care products
through innovative approach.( S1,S2,T3)
ST2: Effort to continuously produce highinnovative and diversify skincare products (S3,
T2,T3)
WO Matches
Increase Estee Lauder market share by responding
towards the growing demands of anti-aging skincare
products (W1,W3,O3)
Actively increase involvement in International
market and expand Estee Lauder skincare product
in developing market such as China, India and
Brazil in order to improve Estee Lauder profitable
growth in the industry (W3,O2,03)
SWOT conclusion:
Based on the SWOT analysis the corporate level and business level strategies are as follows:
35
WT Matches
Prepare a new version of Estee Lauder mission and
vision to clearly direct company success with
consideration of current competitors (W2,T1,T2)
1.
Type of strategy
Product
Development
Type of strategy
Focus- Best
Value (Type 5)
36
Productivity
Strategy
Growth Strategy
Improve Cost
Structure
Increase Asset
Utilisation
Expand Revenue
Opprtunities
Enhance Customer
Value
Price
Quality
Availability
Operation Management
Processes
Customer
Management
Processes
Target EL anti-wrinkle
cream products in anti-aging
market, range in age from 38
to 47 years old.
Productivity
37
Selection
Productivity
Function
Service
Innovation
process
Partnership
Regulatory and
Social Processes
Productivity
Brand
38
Innovation Processes
Opportunity ID
R&D Portfolio
Design/Develop
Launch
From CLS:
PROCESS
INNOVATION PROCESS
From CLS : Introduce High quality of EL anti-wrinkle cream products in target market of China, India and Brazil.
From BLS : Making EL anti-wrinkle cream products with strategic focus on anti-aging market by range
of age from 38 to 47 years old.
39
Objective
40
Target
Support to 100%
encouragement for suppliers
on sharing innovations ideas
Supplier performance survey, 100% satisfaction on supplier
Percent of perfect orders
performance,
received
99% targeted for perfect
order received
Linkage to Production
Operation Management Processes (Supply)
Production
Objectives
None
ECC&AFNPLELAWCP
Note:
1. ECC&AFNPLELAWCP = Ensure Quality Control & Assurance for New Production Line of EL Anti-Wrinkle cream products
41
Risk Management
Objectives
MRSISR
Note
(Supply)
MRCSQAWC = Manage the risk on the consistency of supplying quality anti-wrinkle compounds
MRSISR = Manage Risk Sharing in Supplier Relations
42
MRCSQAWC
Customer Perspective
(Customer Value Proposition)
Quality
Availability
Selection
*Brand
Objectives
None
EQ
None
LELAWC
None
None
EQ
None
LELAWC
*EELBIFHQAWC
Note:
(CVP)
EQ = Enhance Quality
LELAWC = Limited EL Anti-wrinkle creams (Day cream, Night cream)
EELBIFHQAWC = Enhance Estee Lauder Brand Image for High Quality AntiWrinkle cream
43
Financial Perspective
Improve Cost
Structure
Increase Assets
Utilization
Expand Revenue
Opportunities
Enhance
Customer Value
None
None
None
None
SPC
TDORMUIPELAWC
CNSORNP
None
Objectives
Note
(Supply)
Those objectives should later be carried out to the Financial Pers. accumulatively
44
Objectives
DSCEIT
None
ECA
DES&CC&AQT
QP&CAWCP
CQCC
Note:
DSCEIT = Develop Strategic Competencies for Employees Innovative Thinking
DES&CCA QT= Develop Employees Skills & Competencies on Quality & Assurance through Quality Training
ECA = Enhance Competitive Advantage
QP&CAWCP = Quality Policies & Conformity on Anti-Wrinkle Cream Products
CQCC = Create Quality-Centric Culture
45
Ensure Quality Control & Assurance for New Product Line of EL-Anti Wrinkle Cream Products. (Linkage from Supply Process)
Target production of EL Anti-wrinkle Cream Products to China, India and Brazil (New Objective).
Objective
Ensure
Quality
Control
&
Assurance for New Product Line of
EL-Anti Wrinkle Cream Products.
Target
Target to produce 99% of
High quality of EL-Anti
wrinkle cream products
46
Market Share
Linkage to Distribution
Distribution
Objectives
DELWCPMQS
Ensure Quality Control & Assurance for New Product Line of ELAnti Wrinkle Cream Products. (Linkage from Supply Process)
Target production of EL Anti-wrinkle Cream Products to China,
DEDSICIB
Note:
DELWCPMQS = Distribution of EL Anti-Wrinkle Cream Products Meet Quality Specification
DEDSICB = Develop Effective Distribution system in India, China and Brazil
47
Risk Management
Objectives
Ensure Quality Control & Assurance for New Product Line of ELAnti Wrinkle Cream Products. (Linkage from Supply Process)
Target production of EL Anti-wrinkle Cream Products to China,
MRCPHQELAWCP
MRMELAWCPPAPP
Note
(Production)
MRCPHQELAWCP = Manage the risk on the consistency of producing High quality of EL anti-wrinkle cream Products
MRMELAWCPPAPP= Manage Risk of maintaining EL Anti-Wrinkle Cream Physical Perfection and Appearance after Production Process
48
Customer Perspective
(Customer Value Proposition)
Objectives
Price
Quality
Availability
Selection
Brand
None
EQELAWC
None
LELAWC(DC,NC)
AAM
EELBIVAASB
ORP
EQELAWC
None
LELAWC(DC,NC)
AAM
EELBIVAASB
Note:
LELAWC (DC,NC) = Limited EL Anti-Wrinkle Creams (Day, Cream, Night Cream) for Anti-Aging Market
ORP = Offer Reasonable Price
EQELAWC, DOT = Excellence Quality EL Anti-Wrinkle Creams, Deliver On Time
EBV = Enhance Brand Value
EELBIVAASB = Enhance Estee Lauder Brand Image Via its Anti-Aging Skincare Brand
49
Financial Perspective
Objectives
Increase Assets
Utilization
Expand Revenue
Opportunities
Enhance Customer
Value
RD, RWC
None
IRMCE
ICP, ICS
None
MPAUTPP
GRFNC
None
Process)
Note
RD, RWC = Reduce Defects, Reduce Waste Costs
IRMCE = Increase Revenue for Meeting Customer Expectation
ICP, ICS = Increase Customers Profitability, Increase Customer Satisfaction
MPAUTPP = Maximize Physical Assets Utilization Throughout Production Process
GRFNC = Generate Revenues from New Customers
*Those objectives should later be carried out to the Financial Pers. Accumulatively
50
Objectives
Human Capital
Ensure Quality Control & Assurance for New Product Line of ELAnti Wrinkle Cream Products. (Linkage from Supply Process)
Information Capital
Organizational Capital
IQMS, Q-CC
EETIQCAAPANPL
DQD,QP&SAPA
RCEFCIAPA
ITTFNPL
GCATHQELAWCP,
PELAWCP
Note:
EETIQAAPANPL = Efficient Employees Training in Quality Control & Assurance at Production Area for New Product Line
DQD,QP&SAPA = Develop Quality Documentation, Quality Policies & Standards at Production Area
RCEFCIAPA = Retain Competence Employees for Continuously Improvement at Production Area
IQMS,Q-CC = Improve Quality Management System, Quality-Centric Culture
ITTFNPL = Improve Technology to Facilitate New Production Line
GCATHQELAWCP, PELAWCP = Gain Competitive Advantage through High Quality of EL Anti Wrinkle Cream Products, Patent for EL Anti Wrinkle Cream
Products
*Those Objectives should be carried out to the Learning &Growth Perspective accumulatively
51
Distribution of EL Anti-wrinkle Cream Products meet Quality specification (Linkage from Production)
Develop Effective Distribution System in India, China and Brazil (Linkage from Production)
Deliver EL Anti-Wrinkle Creams Products responsively to customers (New Objective)
Objective
Quality
specification
(Linkage
from
Measure
Percent of EL Anti-wrinkle cream
products delivered with no defects
Target
Target to 95% for meeting
quality specification
Customers Feedbacks
Production)
Develop Effective Distribution System in India,
China and Brazil (Linkage from Production)
Deliver EL Anti-Wrinkle Creams Products
responsively to customers (New Objective)
52
Risk Management
Quality
specification
(Linkage
MQRDS
from
Production)
Develop Effective Distribution System in India,
MRPLCICB
MRELAWCPAT
Note
(Distribution)
MQRDS = Manage quality risk of delivery service
MRPLCICB= Manage the risk of product lost in countries of India, China
and Brazil
MRELAWCPAT = Manage the Risk of EL Anti-wrinkle cream Products
acceptance Time
Those objectives should later be carried out to the Risk Management as accumulative Objectives.
53
Price
Quality
Availability
Selection
None
EQ
None
LELAWC
(DC,NC)
ORP
EQ
OAUDS&TR
LELAWC
(DC,NC)
ORP
EQ
DELAWCPOT
LELAWC
(DC,NC)
Note:
OAUDS&TR = Only Available at Upscale Department Stores & Travel Retails
LELAWC (DC,NC) = Limited EL Anti-Wrinkle Creams (Day, Cream, Night Cream)
DELAWCPOT = Deliver EL Anti-Wrinkle Cream Products on Time
ORP = Offer Reasonable Price
EQ = Excellence Quality
54
Financial Perspective
Improve Cost
Structure
Increase
Assets
Utilization
Expand
Revenue
Opportunities
Enhance
Customer
Value
RDCWRELAWC
RECDU
None
ICS
LTCDBFL
MWCE
IRFNC
None
None
MTAUTDP
None
ICS
Objectives
Distribution of EL Anti-wrinkle Cream Products meet
Quality specification (Linkage from Production)
Develop Effective Distribution System in India, China
and Brazil (Linkage from Production)
Deliver EL Anti-Wrinkle Creams Products
responsively to customers (New Objective)
Note
RDCWRELAWC = Reduce the costs from Waste reduction for EL Anti-Wrinkle Creams
RECDU = Reduction in Excess Capacity of a distribution unit
LTCDBFL = Lower Total Costs of Distribution benchmarking for logistics
MWCE = Maximize Workforce Cooperative Efforts
IRFNC Increase Revenue from New Customers
MTAUTDP = Maximize technology Assets utilisation throughout distribution process
ICS = Increase Customer Satisfaction
Those objectives should later be carried out to the Financial Pers. Cumulatively
55
Human
Capital
Objectives
Distribution of EL Anti-wrinkle Cream Products
meet
Quality
specification
(Linkage
CEIQDP
DQTDFEL
AWCPDS
IQMSIDA
CEDPI
DMP&P
IDMS
ECFDIDP
LTFDIIDP
FIIELDS
from
Production)
Develop Effective Distribution System in India,
China and Brazil (Linkage from Production)
Deliver EL Anti-Wrinkle Creams Products
responsively to customers (New Objective)
Note
CEIQDP = Competence Employees in Quality Control throughout Distribution Process
DQTDFELAWCPDS = Develop quality training documentation for EL Anti-Wrinkle Cream Products
distribution system
IQMSIDP = Improve Quality Management System in Distribution Process
CEDPI = Competence Employees in Distribution Process Improvement
IDMS = Improve Distribution Management System
DMP&P = Distribution Management Policies and Procedures
ECFDIDP = Employees Skills for Fast Delivery in Distribution Process
LTFDIIDP = Logistics Technology that facilitates delivery Improvement in Distribution Process
FIIELDS = Facilities Improvement in EL Distribution System
Those Objectives should be carried out to the Learning &Growth Perspective cumulatively.
56
Note:
(Supply)
Note:
(Production)
1.MTRCPHQELAWCP = Manage the risk on the consistency of producing High quality of EL
anti-wrinkle cream Products.
=
Note
(Distribution)
1. MQRDS = Manage quality risk of delivery service
2. MRPLCICB= Manage the risk of product lost in countries of India, China
and Brazil
3. MRELAWCPAT = Manage the Risk of EL Anti-wrinkle cream Products
acceptance Time
Competitive Advantage on EL Anti-Wrinkle Cream Products to serve better than Rivals
57
1. MRCPHQEELAWCP = Manage the Risk of Consistency of Supplying Quality Anti-Wrinkle Compounds from Supply ;
2. MTRCPHQELAWCP = Manage the risk on the consistency of producing High quality of EL anti-wrinkle cream Products from production ;
3. MQRDS = Manage quality risk of delivery service from distribution ;
4. MRSISR = Manage Risk Sharing in Supplier Relations from Supply ;
5. MRMELAWCPPAPP= Manage Risk of maintaining EL Anti-Wrinkle Cream Physical Perfection and Appearance after Production Process
from production ;
6. MRPLCICB= Manage the risk of product lost in countries of India, China and Brazil from distribution ;
7. MRELAWCPAT = Manage the Risk of EL Anti-Wrinkle Cream Products Acceptance Time from distribution ;
8. MFRELNPLELAWCP= Manage Financial Risk for EL New Production Line of EL Anti-Wrinkle Cream Products (New Objective).
58
Price
Quality
Availability
Selection
Service
Partnership
Brand
None
Enhance
Quality from
receiving high
quality of raw
materials
(EQHGRM)
None
None
None
Increase
reputation of
EL Skincare
Brand
(IRELSB)
Offer
Reasonable
Price (ORP)
Enhance
Quality from
High Quality
Inspection in
Production
(EQHQIP)
None
Limited EL Anti
Wrinkle Cream
Products
LELAWC (DC,NC)
None
Increase
reputation of
EL Skincare
Brand
(IRELSB)
Enhance
Quality
compliances
during delivery
service
(EQCDS)
Available only at
Upscale
Department
Stores and Travel
Retails
(IRPDOTUD&TR
)
Limited EL Anti
Wrinkle Cream
Products
LELAWC (DC,NC)
Lesser customers
complaint (LCC)
None
Increase
reputation of
EL Skincare
Brand
(IRELSB)
59
None
None
None
None
None
None
None
None
None
Enhance Quality
of EL-Anti
Wrinkle Cream
Products
(EQELAWCP)
None
None
None
Increase
reputation of
EL Skincare
Brand
(IRELSB)
None
None
Enhanced Products
secured throughout
distribution process
(EPSTDS)
None
Improving
communication and
better cooperation
(ICBC)
None
Lesser customers
complaint (LCC)
Improving
communication and
better cooperation
(ICBC)
Supply
Manage Risk of
maintaining EL AntiWrinkle Cream Physical
Perfection and
Appearance after
Production Process from
production
Manage the risk of
product lost in countries
of India, China and Brazil
from distribution
Manage the Risk of EL
Anti-Wrinkle Cream
None
Products Acceptance
Time from distribution
60
Increase
reputation of
EL Skincare
Brand
(IRELSB)
ORP
None
None
None
None
None
None
Objectives
Financial Perspective
Increase Assets
Utilization
None
Expand Revenue
Opportunities
61
None
None
Optimize energy
consumption
throughout production
process (OECTPP)
None
Optimize energy
consumption
throughout distribution
process (OECTPP)
None
None
None
None
Maximise production
output (MPO)
None
None
None
None
quality of EL anti-wrinkle
cream Products from
production
Manage quality risk of
delivery service from
distribution
Manage
Risk
Supplier
Sharing
Relations
in
from
Supply
Manage Risk of maintaining
EL Anti-Wrinkle Cream
Physical Perfection and
Appearance after Production
Process from production
Manage the risk of product
lost in countries of India,
China and Brazil from
62
distribution
Manage the Risk of EL AntiWrinkle Cream Products
None
Better use of
Technology From
distribution system
(BUTFDS)
None
None
None
None
*Those objectives should later be carried out to the Financial Pers. Accumulatively
Linkage to Learning &Growth Perspective
Operation management
process
Objectives
Human Capital
Information Capital
Organizational Capital
63
(EOSLT&PA)
Enhance Employees Skills in delivery
Service (EESIDS)
Infrastructure delivering
Improvement (IDI)
Increase Employees
Intellectual Capital (EIC)
None
None
None
None
None
None
None
64
Operation Management
Processes
Supply
Objectives
Measure
Target
Support to 100%
encouragement for
suppliers on sharing
innovations ideas
100% satisfaction on
supplier performance,
99% targeted for perfect
order received
Operation and
Production
Market Share
Customers Feedbacks
Brazil.
Distribution of EL Anti-wrinkle Cream
Products
Distribution
meet
Quality
specification
65
Production)
Deliver EL Anti-Wrinkle Creams Products
responsively to customers (New Objective)
Processes
Objectives
SUPPLY:
TDORMUIPELAWC = Timely Deliveries on Raw Materials Used
in Producing EL Anti-Wrinkle Creams
SPC = Save Production Costs
CNSORNP = Create New Source of Revenue from New Product
1
2
3
4
5
6
7
Financial
Perspective
8
9
66
Measure
Target
95%
Production costs
Revenue growth
15% decrease
20% increase
PRODUCTION:
RD, RWC = Reduce Defects, Reduce Waste Costs
1-3%, 15%
decrease
revenue growth
Profit per customer, customer
survey for level of satisfaction
20% increase
5% increase,
100% of
satisfied
customer
90% increase
20% increase
DISTRIBUTION:
RDCWRELAWC = Reduce the costs from Waste reduction for
EL Anti-Wrinkle Creams
RECDU = Reduction in Excess Capacity of a distribution unit
LTCDBFL = Lower Total Costs of Distribution benchmarking for
logistics
MWCE = Maximize Workforce Cooperative Efforts
IRFNC Increase Revenue from New Customers
MTAUTDP = Maximize technology Assets utilisation throughout
distribution process
ICS = Increase Customer Satisfaction
10
11
12
13
14
15
16
17
18
19
RISK MANAGEMENT:
Reduce Wastage Costs (RWC)
Less Operating Costs
Optimize energy consumption throughout production process
(OECTPP)
Increase Customer Satisfaction (ICS)
20
21
67
Wastages costs
15%decrease
20%decrease
15% decrease
Revenue growth
-
20% increase
90%of assets
utilization
100% satisfied
customer
Wastages costs
Operating costs
Energy consumed in production
Customer survey for satisfaction
level
15% decrease
15% decrease
95%of energy
optimization
100%of
satisfied
customer
Delivery cost
Energy consumed in distribution
process
revenue
10% decrease
95%of energy
optimization
20% increase
15% decrease
27
Production output
28
29
30
31
32
33
100% of output
maximization
20% increase in
revenue growth,
15% increase in
gaining profit
-
22
23
24
25
26
EL competitive position in
industry compare with the
competitors
Top leader
among other
competitors in
the industry
Customer
Perspective
LELAWC = Limited EL Anti-wrinkle creams (Day cream, Night
cream)
34
35
PRODUCTION:
LELAWC (DC,NC) = Limited EL Anti-Wrinkle Creams (Day,
36
68
37
38
39
Price/product unit
Percent of stock outs, Percent ontime deliver
Company position in the industry
compare with competitors
$79.99/set
80% of stock
outs,95%
Top leader
among other
competitor in
the industry
40
Top leader
among other
competitor in
the industry
41
DISTRIBUTION :
OAUDS&TR = Only Available at Upscale Department Stores &
Revenues
Travel Retails
LELAWC (DC,NC) = Limited EL Anti-Wrinkle Creams (Day,
Cream, Night Cream)
DELAWCPOT = Deliver EL Anti-Wrinkle Cream Products on
Percent deliver on-time
Time
ORP = Offer Reasonable Price
Price/product unit
EQ = Excellence Quality
Percent stock outs
RISK MANAGEMENT
Enhance Quality from receiving high quality of raw materials Quality attributes measurement for
supplier
(EQHGRM)
42
43
44
45
46
47
48
69
20%increase
95%
$79.99/set
80%
-
49
50
51
52
53
Lesser product return for EL Anti-Wrinkle Cream (LPRELAWC)
Increase reputation of EL Skincare Brand (IRELSB)
Enhance Quality compliances
during delivery service
(EQCDS)
Lesser customers complaint (LCC)
Enhance Quality of EL-Anti Wrinkle Cream Products
(EQELAWCP)
54
55
56
57
58
1-3%
$79.99/set
-
4%
Revenue growth
Quality attributes in delivery
services
Percent of customers complaints
Percent of customers complaints
20%increase
-
5%
3-5%
3-5%
59
Improving communication and better cooperation (ICBC)
Increase the rate of EL Anti-Wrinkle Cream to be delivered
on time available only at Upscale Department Stores and
Travel Retails (IRPDOTUD&TR)
60
61
62
63
SUPPLY:
DSCEIT = Develop Strategic Competencies for Employees
Innovative Thinking
70
Revenue growth
95% products
deliver on-time
20% increase
90% skills
improved
64
65
Learning & Growth
perspective
90% skills
improved
Top leader
among other
competitor in
the industry
66
67
68
69
PRODUCTION:
EETIQAAPANPL = Efficient Employees Training in Quality
Control & Assurance at Production Area for New Product Line
70
71
72
73
74
71
95%
accessibility
95%effectivenes
95%
accessibility
100%
Top leader
among other
competitor in
the industry
75
76
DISTRIBUTION:
CEIQDP = Competence Employees in Quality Control throughout
Distribution Process
77
78
79
80
81
82
83
72
90% skills
improved
95%effectivenes
95%effectivenes
95%
accessibility
95%
84
85
RISK MANAGEMENT:
Enhance Employees Skills in supplier Quality Control (EESISQC)
86
87
88
89
90
91
92
93
73
90% skills
improved
95%effectivenes
95%effectivenes
95%effectivenes
90% skills
improved
94
95
96
97
98
99
100
101
74
infrastructure
Strategic skills in key Intellectual
Capital position
90% skills
improved
95%effectivenes
95%effectivenes
50% increase
90% skills
improved
95%effectivenes
Strategy
CLS
Theme
Product Development
BLS
Understand Anti-aging skin care segment in countries of China, India and Brazil.
Target High-End Customers of anti-aging market with range of age from 38 to 47 years old.
75
Objective
Understand Anti-aging skin
care segment in countries of
China, India and Brazil.
Target High-End Customers of
anti-aging market with range of
age from 38 to 47 years old.
76
Customer Acquisition
CVPHQELAWCP
PFSELAWCTANCFAAM
Note:
CVPHQELAWCP = Communicate Value Proposition for high quality EL Anti-Wrinkle Cream products
PFSELAWCTANCFAAM = Provide free samples of EL Anti Winkle cream for trial to acquire new customers from anti-aging market
Financial Perspective
Expand Revenue Opp
None
CNSRNCAAMCIB
None
None
IRHECAASCS
None
Note:
CNSRNCAAMCIB = Create New Source of Revenue from new customers of Anti-Aging Market in China, India and Brazil
IRHECAASCS = Increased revenue from High-End Customers of Anti-Aging Skin care segment
77
None
None
Customer Perspective
Quality
Availability
Selection
Functionality
Service
Partnership
Brand
None
None
None
None
RFAASCSNCIB
None
EELBIVAASB
None
None
RFAASCSN
SELPBNCIB
EELBIVAASB
None
None
Note:
RFAASCSNCIB = Responding Faster to anti-aging skin care segment needs in China, India and Brazil
SELPBNCIB = Satisfy EL Partner business needs in China, India and Brazil
EELBIVAASB = Enhance Estee Lauder Brand Image Via its Anti-Aging Skincare Brand
78
Human Capital
DECICRM
CR,D&T
ICRMD
DSCUAASCSCIB
DPAACKSMI&DS
ICRMD
Note:
79
Organization Capital
Communicate Value Proposition for high quality EL Anti-Wrinkle Cream Products (linkage from Selection Process)
Provide free samples of EL Anti Winkle cream for trial to acquire new customers from anti-aging market (linkage from Selection Process)
Develop distributer relationship in China, India and Brazil (New Objective)
Objective
Communicate Value
Proposition for high quality EL
Anti-Wrinkle Cream Products
80
Customer Retention
PTQELAWCP
Note:
PTQELAWCP = Provide the True Quality of EL Anti Wrinkle Cream Products
CHLC = Create Highly Loyal customers for EL High end customer s in Anti-aging skin care segment
VAP = Value-added Partner
81
CHLC
None
Financial Perspective
Expand Revenue Opp.
CNSRFELAWCP
None
CNSRHEAASCC
None
IELSCMS
Note:
CNSOFELAWCP =Create New Sources of Revenue from EL Anti Wrinkle Cream Products
CNSRHEAASCC = Create New Sources of Revenue from High-End Anti Aging Skin Care Customers
RLCOFSELAWCP = Rewarding Loyal Customers by offering free samples of EL Anti Wrinkle Cream Products
IELSCMS = Increase EL skin care market share
82
Customer Perspective
Price
None
Quality
None
Availability
None
Selection
None
Service
None
Partnership
None
Brand
ESLBAVAASCB
None
None
None
None
PECS
ICAELAWCP
ESLBAVAASCB
None
None
None
None
None
OLPFELDCIB
ESLBAVAASCB
Note:
PECSP = Provide Excellence Customer Service
ICAELAWCP = Increase Customer Awareness on EL Anti-wrinkle cream Products
OLPELDCIB = Offer Lower Price for Estee Lauder Distributors In China, India and Brazil
ESLBAVAASCB = Enhance Estee Lauder Brand Awareness Via its Anti Aging Skin care Brand
83
Information Capital
CRM database
integration
Organization Capital
CRM, QCC
DESCSM
IKS
IKM
Develop Training
Program for
Dealers
Note:
DESCMRT = Develop employees Strategic Competencies in Marketing and Research Team
CRMDI = CRM Database Integration
DTD = Distributor Training documentation,
84
QCC
Provide the True Quality of EL Anti Wrinkle Cream Products (Linkage from Customer Acquisition Process)
Create Highly Loyal customers for EL High end customers in Anti-aging skin care segment (Linkage from Customer Acquisition Process)
Value-added Partner (Linkage from Customer Acquisition Process)
Objective
Target
Target to 100% increase in creating
customer satisfaction on EL Antiwrinkle cream product quality
85
Customer Growth
None
Focus on Solution Selling
Strategy
Partner with EL Anti-wrinkle
Crea produ ts Custo er
IRELHQAWCP
RCTLP
None
IELFNPAASCS
ILTVP
None
Note:
86
Financial Perspective
Expand Revenue Opp.
IRELHQAWCP
Customer Perspective
Service
Partnership
TDOZD
None
Brand
FRES
None
EBLHRVAASCB
EBLHRVAASCB
None
MER
EBLHRVAASCB
Note:
TDOZD = The delivery of Zero defects
MER = Maintain Excellence Relationship
FRES = Fast service responsive with excellence service
EBLHRVAASCB = Enhance Brand Loyalty with High Reputation Via its High quality Anti-aging skin care brand
87
Customer management
processes (Retention)
Objectives
Provide the True Quality of EL
Anti Wrinkle Cream Products
Create Highly Loyal
customers for EL High end
customers in Anti-aging skin
care segment
Value-added Partner
Information Capital
RHEC
Organization Capital
CCCC
ARTTCMHQELAWCP
RHEC
CCCC
CPGA
PIA
CIC
Note:
CCCC = Create Customer-Centric Culture klop;
RHEC = Records of High-End Customers
CPGA = Create Personel Goal Alignment
PIA = Partners information and Agreement
ARTTCMHQELAWCP = Attract and Retain Top Talent for continuously maintain high quality EL Ani Wrinkle cream products
CIC = Continuous Improvement Culture
88
Objective
Target
Customers feedback
(survey)
89
Note:
CNSRELAWCP = Create new source of revenue from EL Anti-Wrinkle cream products
IRLC = Increase revenue from loyal customers
ICS = Increase Customer Satisfaction
RCSE = Rewarding Customer Service Excellence
90
Financial Perspective
Expand Revenue Opp.
CNSRELAWCP
IRLC
IRLC
Customer management
processes (Growth)
Customer Perspective
Objectives
Focus on Solution Selling
Strategy
Partner with EL Anti-wrinkle
Crea products Custo er
Standardization of customer
service in China, India , brazil
Price
Quality
Availability
Selection
Functionality
Service
Partnership
Brand
None
None
None
None
None
EBCS
None
IBRBLVHQELAWCP
None
None
None
None
None
None
MEC&R
IBRBLVHQELAWCP
None
None
None
None
None
ECS
None
IBRBLVHQELAWCP
Note:
EBCS = Excellence Beauty Consultation Service
MEC&R = Maintain Excellence Communication and Relationship
ECS = Excellence Customer Service
IBRBLVHQELAWCP = Improve Brand Recognition and Brand Loyalty via High Quality EL Anti-Aging Skin Care products
91
Customer management
processes (Growth)
Objectives
Focus on Solution Selling
Strategy
Partner with EL Anti-wrinkle
Crea products Custo er
Standardization of customer
service in China, India , brazil
Information Capital
DECSSS
IKS
Organization Capital
IKM, CRM
None
None
CPGA
ESCSCF
TFECS
CCC
Note:
DECSSS = Develop Employees competencies in solution selling strategies
IKS = Increase Knowledge Sharing
IKM , CRM = Improve Knowledge Management, Customer Relationship Management
CPGA = Create Personal Goal Alignment
ESCSCF = Employees skills and competencies in customer service field
TFECS = Technology that facilitates effective customer service
92
No
Customer
Management
Processes
Objectives
Measure
Target
Selection
3
4
Provide free samples of EL Anti Winkle
cream for trial to acquire new customers
from anti-aging market
5
Acquisition
Retention
93
Value-added Partner
Focus on Solution Selling Strategy
8
9
10
11
Growth
94
No
Processes
1
3
7
8
9
Financial Perspective
Objectives
SELECTION :
CNSRNCAAMCIB = Create New Source of Revenue from new
customers
IRHECAASCS =Increased revenue from High-End Customers of AntiAging Skin care segment
ACQUISITION:
CNSOFELAWCP =Create New Sources of Revenue from EL Anti
Wrinkle Cream Products
CNSRHEAASCC = Create New Sources of Revenue from High-End
Anti Aging Skin Care Customers
RLCOFSELAWCP = Rewarding Loyal Customers by offering free
samples of EL Anti Wrinkle Cream Products
10
13
14
15
17
19
20
21
95
Measure
Target
20% increase
20% increase
20% increase
Market share
revenue from EL High quality of AntiWrinkle cream Products
20% increase
Target for 150,000
units of EL-Anti
wrinkle cream Free
Trial Samples
15% increase
20 % increase
-
Lifetime value
revenue from EL Anti-Wrinkle cream
products
revenue from loyal customers
Customers feedback (survey) for level
of satisfaction
20% increase
10% increase
100% of customer
satisfaction level
22
23
SELECTION:
RFAASCSNCIB = Responding Faster to anti-aging skin care segment
needs in China, India and Brazil
SELPBNCIB = Satisfy EL Partner business needs in China, India and
Brazil
26
27
28
ACQUISITION:
PECSP = Provide Excellence Customer Service
37
Customer Perspective
38
39
40
45
RETENTION:
TDOZD = The delivery of Zero defects
46
96
20% increase
100% of customer
satisfaction level
100% of customer
awareness
5% decrease
Target to be the leader
for skincare companies
in the industry to
provide latest skin care
technology
99% of products
arrived without any
defects
100% of satisfied
47
48
55
56
GROWTH:
EBCS = Excellence Beauty Consultation Service
MEC&R = Maintain Excellence Communication and Relationship
56
58
SELECTION :
DECICRM = Develop Employees Competencies in CRM
63
64
65
66
67
68
70
71
97
satisfaction level
Percent on time deliver
Competitive position in the industry
compare to competitors
customer
99% of products
delivered on time
Target to be the leader
for skincare companies
in the industry to
provide latest skin care
technology
Market share
Customer feedback (survey) related to
communication and relationship
Customers feedback (survey) related to
customer service satisfaction level
Position in the industry compare to
competitors
15% increase
100% of satisfied
customer
100% of satisfied
customers
Target to be the leader
for skincare companies
in the industry to
provide latest skin care
technology
90% increase
90% increase
90% increase
90% increase
90% increase
72
73
74
75
76
77
80
RETENTION:
81
82
83
84
85
86
87
88
89
90
98
90% increase
100% of capable
employees in
distribution
90% increase
90% increase
90& increase
90%
90% increase
90% increase
90% increase
90%
91
92
90% increase
100% of capable in
project management
leadership
Strategy
CLS
Theme
Product Development
BLS
99
Objective
Anticipate customers
demands of Anti-Aging
Skin care products.
100
101
Seeking Opportunity
to reduce
manufacturing cost
Financial Perspective
Revenues from New
Products
None
Gross Margins:
New Products
None
None
None
Customer Perspective
High-Performance Products
First to Market
None
None
None
102
A Culture of
Creativity and
Innovation
Foster A culture of
innovation
Foster A culture of
innovation
Actively manage EL Anti-wrinkle cream skin care products portfolio for superior quality and innovation (Linkage from
Opportunity ID)
Extend EL-Anti wrinkle cream products portfolio through collaboration with EL business partners (Linkage from
Opportunity ID)
Objective
Actively manage EL Antiwrinkle cream skin care
products portfolio for
superior quality and
innovation.
103
Revenue growth
104
Financial Perspective
Manage Total LifeRevenues from
Cycle Production Costs
New Products
None
None
None
None
Gross Margins:
New Products
None
None
High-Performance
Products
None
Improve Quality
attributes of El antiwrinkle skin care cream
products
Customer Perspective
First to Market
High Innovative antiaging technology in the
market
None
None
105
Technology to
explore, integrate,
and speed to market
None
Use technology to
facilitate portfolio
Foster a culture of
innovation
managing process
and technological
community
106
Patent
Linkage to Launch
Launch
Rapid launch of EL
anti-Wrinkle
Cream Products
None
None
None
None
Effective
Production of EL
anti wrinkle Cream
products
None
None
None
107
Financial Perspective
Manage Total LifeRevenues from
Cycle Production
New Products
Costs
Return on R&D
None
investments for a
product patent
Lowering the costs of
None
production
Lowering the costs of
None
production
Gross Margins:
New Products
None
None
None
Customer Perspective
High-Performance
First to Market
Products
Innovative features
None
with high quality
performance
None
None
None
None
Extend into
New Markets
None
None
None
108
Use Technology to
explore, integrate, and
speed to market
Deploy computer
technology for simulation
and virtual prototyping for
EL Anti wrinkle Cream
product
Deploy computer
technology for simulation
and virtual prototyping for
EL Anti wrinkle Cream
product
A Culture of
Creativity and
Innovation
Develop a culture of
leading knowledge
from scientific and
technological
community
Develop a culture of
leading knowledge
from scientific and
technological
community
Deploy computer
technology for simulation
and virtual prototyping for
EL Anti wrinkle Cream
product
Develop a culture of
leading knowledge
from scientific and
technological
community
9.1.4 Launch
Define the objectives in Launch
Rapid launch of EL anti-Wrinkle Cream Products; (Linkage from Design and Develop)
Effective Production of EL anti wrinkle Cream products. (Linkage from Design and Develop)
Objective
Rapid launch of EL antiWrinkle Cream Products
Effective Production of EL
anti wrinkle Cream products
109
Financial Perspective
Manage Total LifeRevenues from New
Cycle Production
Products
Costs
Rapid launch of EL anti-Wrinkle Cream Products
None
Revenues from EL
Anti-Wrinkle Cream
products from new
customers in China,
India and Brazil
Effective Production of EL anti wrinkle Cream products Lowering maintenance
None
costs and disposal
costs
Gross Margins:
New Products
None
None
110
Customer Perspective
High-Performance
First to Market
Extend into New
Products
Markets
enhance products
Innovative
Focus of Anti-aging
functionality for aging
technology
market in China, India
skin to customers
skincare leader
and Brazil
of anti-aging
skincare
product
High quality of EL antiNone
None
wrinkle cream products
111
A Culture of
Creativity and
Innovation
Foster employees
culture of
innovation and
change
Foster employees
culture of
innovation and
change
No.
1.
2.
3.
Innovation Process
Identify
Opportunity
Manage the
portfolio
4.
5.
Design and
Develop
6.
7.
8.
Launch
9.
10.
11.
12.
13.
14.
Financial
Perspective
Objectives
Anticipate customers demands of Anti-Aging
Skin care products.
Discover new anti-aging products, high quality
and more effective.
Measurement
Time spent with anti aging skin care segment at
targeted accounts learning about their needs and
future opportunities
Number of new value-added services identified
Target
Allocate maximum hours per day to
understand the targeted market, based
on research needs
Target to provide high quality Gift set
Assembly for EL anti-Wrinkle
skincare products
To be the leader in skincare industry
by providing the latest skin care
technology
Revenue growth
20 % Revenue growth
Patents
[MR111037]
15.
Customer
Perspective
16.
17.
18.
19.
20.
21.
22.
23.
24.
Learning and
Growth
Perspective
25.
26.
27.
28.
29.
30.
113
25% increase
25% increase
25% increase
25% increase
25% increase
25% increase
-
90%increase
[MR111037]
R&D employees competencies in performing
effective CDA/CAM integration
Use technology for rapid product launch
31.
32.
33.
Strategy
CLS
Product Development
BLS
114
Theme
[MR111037]
Reduce energy and resource consumption for EL Anti wrinkle cream production
Increase use of consumer recycled materials in product packaging of EL Anti Wrinkle cream
Objective
Reduce energy and
resource consumption in
producing EL Anti wrinkle
cream products
Increase use of consumer
recycled materials in
product packaging of EL
Anti Wrinkle cream
products
115
[MR111037]
116
Customer Perspective
Brand
Enhance Estee lauder Brand Image by EL high
environmental awareness to reduce its energy
consumption and resources
Enhance Estee lauder brand image for EL high
environment awareness to design packaging with a
high content of post-consumer material.
[MR111037]
Financial Perspective
Improve cost structure
Enhance customer
value
Reduce EL operation costs by less
None
consumption of electricity and energy.
None
Innovative
packaging
technology
Environmental
Performance
objectives
Reduce energy and
resource
consumption in
producing EL Anti
wrinkle cream
products
Increase use of
consumer recycled
materials in
product packaging
of EL Anti Wrinkle
cream products
117
Organization
Foster a
culture of
environmental
awareness,
reducing,
reusing and
recycling
Foster a
culture of
environmental
awareness,
reducing,
reusing and
recycling
[MR111037]
Eliminate hazardous and harmful chemicals from employees exposure (Linkage from Environmental Performance)
Reduce the high exposure risk of employees incidents and injuries in the workplace (Linkage from Environmental Performance)
Objective
Eliminate hazardous and
harmful chemicals from
employees exposure
Reduce the high exposure
risk of employees incidents
and injuries in the
workplace
118
[MR111037]
Employment Practices
Increase the diversity of the employees such as talent, creativity and
experience to be able to address potential hazardous in workforce
environment
Recruit diverse team with invaluable personality and productive to improve
competitiveness
119
Customer Perspective
Brand
Increase Estee Lauder brand image by respecting the human
rights of its employees by implementing EL global Human
Rights standards
Increase Estee Lauder brand image by respecting the human
rights of its employees by implementing EL global Human
Rights standards
[MR111037]
Financial Perspective
Improve cost structure
Enhance customer value
None
Attract of health conscious
society and investors
Reduce employees compensation
None
costs
Safety and
Health
Objectives
Eliminate
hazardous and
harmful
chemicals from
employees
exposure
Reduce the high
exposure risk of
employees
incidents and
injuries in the
workplace
120
Organization
Improve
safety and
healthy
culture in EL
Improve
safety and
healthy
culture in EL
[MR111037]
Increase the diversity of the employees such as talent, creativity and experience to be able to address potential hazardous in workforce
environment(Linkage from Safety and Health)
Recruit diverse team with invaluable personality and productive to improve competitiveness(Linkage from Safety and Health)
Objective
Increase the diversity of the
employees such as talent,
creativity and experience to
be able to address potential
hazardous in workforce
environment
Recruit diverse team with
invaluable personality and
productive to improve
competitiveness
121
Profesional evaluation
performance
[MR111037]
Objectives of Employment
Increase the diversity of the employees such as talent,
creativity and experience to be able to address potential
hazardous in workforce environment
Recruit diverse team with invaluable personality and
productive to improve competitiveness
Community Perspective
Embrace corporate social responsibility by offering education
scholarship to students in China, India and Brazil studying
marketing, business and environmental issues
None
Objectives of Employment
Increase the diversity of the employees such as talent, creativity and
experience to be able to address potential hazardous in workforce
environment
Recruit diverse team with invaluable personality and productive to
improve competitiveness
Customer Perspective
Brand
Enhance Estee Lauder brand image through
profesional employees and higher education
level
Enhance Estee Lauder brand image through
profesional employees and higher education
level
Objectives of Employment
Financial Perspective
Improve cost structure
Enhance customer value
Attracts socially
High
education
of
employees
with
high
level
Increase the diversity of the employees such as
conscious
investors, clients
of knowledge able to reduce costs of ELs
talent, creativity and experience to be able to
and customers
energy consumption and avoid possible risky
address potential hazardous in workforce
incidents
environment
in the workplace
None
Attracts socially conscious
Recruit diverse team with invaluable personality
122
[MR111037]
Objectives of Employment
Increase the diversity of the employees such as
talent, creativity and experience to be able to
address potential hazardous in workforce
environment
Recruit diverse team with invaluable
personality and productive to improve
competitiveness
123
None
[MR111037]
Embrace corporate social responsibility by offering education scholarship to students in China, India and Brazil studying marketing,
business and environmental issues (Linkage from Employment Performance)
Objective
Embrace corporate social
responsibility by offering
education scholarship to
students in China, India
and Brazil studying
marketing, business and
environmental issues
Objectives of Community
Embrace corporate social responsibility by offering
education scholarship to students in China, India and Brazil
studying marketing, business and environmental issues
124
Customer Perspective
Brand
Enhance Estee Lauder brand image by sponsoring education
opportunity to increase the existing of high-quality scientists and
experts in marketing, business and environmental issues
[MR111037]
Objectives of Community
Financial Perspective
Improve cost
Enhance customer value
structure
None
Increase customer satisfaction level
for EL community development
effort
Objectives of Community
Embrace corporate social responsibility by offering
education scholarship to students in China, India and
Brazil studying marketing, business and
environmental issues
125
[MR111037]
Innovation Process
35.
36.
Environmental
performances
Safety and Heath
37.
38.
Employment
39.
40.
Community
41.
Financial
Perspective
42.
43.
44.
45.
46.
47.
48.
Objectives
Reduce energy and resource consumption in producing EL Anti
wrinkle cream products
Increase use of consumer recycled materials in product packaging of
EL Anti Wrinkle cream products
Customer
Perspective
49.
50.
126
Measurement
Total joules of energy consumption
Percent of recycled material used for
packaging
Percent of Absence of hazardous,
harmful chemicals
Number of employees incidents in the
workplace
Profesional evaluation performance on
hazardous level of knowledge
Target
15% reduce of energy consumption
Target to 60% of EL Anti Wrinkle
packaging material from recycled material
Reduce to 100%
Operation costs
15% decrease
10% decrease
15% decrease
20% increase
20% increase
20% increase
[MR111037]
51.
52.
Learning and
Growth Perspective
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
127
educational level
The position of EL in the industry
compare with the competitors
20% increase
15% decrease
50 % increase
50% increase
30% increase
30& increase
[MR111037]
Long-Term shareholder value
Strategy map:
Financial
Perspective
Growth
Productivity
Price
Customer
Perspective
Offer reasonable
price
Quality
to customers
Availability
Selection
Increase customer loyalty and Awareness on ELAnti Wrinkel Cream (Day cream, Night cream)
First to market with new anti aging skin care
innovative-technology
C.P.M
O.P.M
Internal
Perspective
Continuously improve
process
Continuously improve
product quality
Continuosly improve
customer service
Learning
and growth
perspective
Information capital
128
Innovation
Target antiaging customers
in Brazil, China,
India
Social and
regulatory
Reduce employess exposure
towards any unhealthy risks
Offering free
samples of EL
Anti wrinkle
cream for free
trial to
customers
Solution selling
Human capital
Develop skills in quality management and process
improvement
Attract and retain top talents
Skillfulness employees with functional expertise and
strategic competencies
Organizational capital
Foster A Quality-centric culture
Foster a culture of innovation and
knowledgeable
[MR111037]
Strategy map with all linkages:
Growth
Productivity
Financial
Perspective
Price
Customer
Perspective
Quality
Offer enhanced service fuctionality
to customers
Selection
Availability
Deliver zero-defect
services to customer
Internal
Perspective
Continuously
improve process
47 years old
Continuously
improve product
quality
Continuosly improve
customer service
Create loyal
customers
Offering free
samples of EL
Anti wrinkle
cream for free
trial to
customers
129
Increase diversity of
employees to improve
competetiveness