Preview

Estee Case Analysis

Powerful Essays
Open Document
Open Document
14463 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Estee Case Analysis
[pic]
[pic]
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 integral 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 dealt by us with an exigent attitude. Estee Lauder’s performance was compared to our chosen benchmark company Avon because of it being Lauder’s largest competitor globally.

The analysis conducted were a team effort as individual members contributed in accordance with their best mental and physical capacity. The in depth analysis served as the basis to learn about how financial ratios and forecasting depict company status and are significant in making critical business decisions.

We are greatly obliged to you for giving us this opportunity to enhance our analytical and decision-making skills and giving us a clear understanding of these topics in your lectures and lastly thanking you in advance for taking out your time 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 POTENTIAL INVESTORS AND CREDITORS DECISION-MAKING PROCESS. ESTEE LAUDER, IN COMPARISON 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 WHICH CURRENTLY IS
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Cosmetology School Essay
    • 351 Words
    • 2 Pages

    Cosmetology School Essay

    Thank you for your consideration and kind review of my essay for entrance into the Academy for Cosmetic Excellence.…

    • 351 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Xacc 280 Final
    • 1225 Words
    • 5 Pages

    Xacc 280 Final

    Liquidity, solvency, and profitability are the three characteristics that will be used to see a company’s success. A simple financial statement will not demonstrate the company’s power because it is a general idea of the company’s position and does not display business developments. The company’s business developments are vital for potential investors because they determine vertical and horizontal analysis. These characteristics are also used to define the ratio analysis. Ratio analysis is dividing two numbers to get a number of percentages that can be used to compare companies in the same industry. Examining the entire company’s financial trends for a set period of time, an investor will see a factual description of the company’s financial condition. This is the financial analysis an investor desires to review prior to spending money.…

    • 1225 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    Milwaukee Surgical Supplies, Inc.
    • 728 Words
    • 3 Pages

    Milwaukee Surgical Supplies, Inc.

    A financial statement analysis is the process of using data contained in a business’s financial statements to make judgments about financial condition. There are three basic financial statements: the income statement, the balance sheet, and the statement of cash flows. These statements show the firm’s operations and its financial position. The data obtained is detailed for two or three most recent periods, and a historical summary of key operating statistics for longer periods are included. Financial statement analysis is applied to historical data, which reflect the results of past managerial decisions and…

    • 728 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    XACC/280 Financial Analysis: Pepsico
    • 1114 Words
    • 5 Pages

    XACC/280 Financial Analysis: Pepsico

    To any company whether small or a large corporation, the financial analysis is very important in order for a successful business. This will determine if the company is healthy enough to invest or even to see where you are weak in the financial part of the business. It is the company’s responsibility to present accurate analysis of their financial reports. What I hope to present to you is information that you will help see the comparison of both companies within their financial standings. In this report I will present a vertical analysis and a horizontal analysis, and ratio analysis. I will also try to provide some strategies…

    • 1114 Words
    • 5 Pages
    Good Essays
    Read More
  • Better Essays

    ACC 305 Week 5 Final Assignment
    • 2269 Words
    • 7 Pages

    ACC 305 Week 5 Final Assignment

    It is important for every internal and external stakeholder in a company to understand if a company is being profitable or not. A company that is failing or not growing can often come from poor financial planning and analysis. The difference between failure and success come from analyzing financial information. Analyzing financial information such as balance sheet, income statement and cash flow statement companies can predict and control their future. Financial statements are the primary documents used in reporting financial information to banks, investors, suppliers and others. Along with financial information, financial ratios can help stakeholders evaluate the business performance. They can deliver a better understanding of a variety of things going on in the company. Financial information and ratios are important tools to help predict the growth of a company and to compare them to other companies.…

    • 2269 Words
    • 7 Pages
    Better Essays
    Read More
  • Powerful Essays

    Acc501 - Case 1
    • 1513 Words
    • 7 Pages

    Acc501 - Case 1

    For investors to objectively analyze and rate companies they need to have access to certain financial information in order to make informed business decisions. Key financial figures such as Statement of Income, Balance Sheet Statements, and Cash Flow Statements are used to make these comparisons. To ensure that companies are reporting the same financial information several accounting and auditing standards have been created and must be followed. In the follow paper two companies, Abercrombie and Fitch and Hennes & Mauritz, will be evaluated based on their financial statements in a goal to determine which company is more profitable. Background information about the two companies will be presented; their annual statements will be compared and contrasted; and finally their annual statements will be analyzed to determine which one is more profitable.…

    • 1513 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Chuck E Cheeses
    • 1681 Words
    • 7 Pages

    Chuck E Cheeses

    Our class was assigned a company for financial scrutiny and to obtain financial statements (Balance Sheet, Income Statement, and Cash Flow Statement), from the company’s most recent Annual Report. We are to prepare a written analysis of the organization with the following requirements: 1) describing the product or service marketed by the company; 2) evaluate the company in terms of the financial ratios we believe are most helpful in understanding the company’s performance; and 3) include a financial forecast for the said company for the next 2-3 years. We were asked to include an estimate of the company’s prospects for the company industry for the years ahead. Finally, the students were asked to give an oral presentation to the class using this information. I choose to do my analysis of a company called Chuck E. Cheese’s. This paper will explain what I’ve learned about the financial statement analysis categories.…

    • 1681 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Better Essays

    Acc 561 Week 2 Importance Of Comparative Analysis
    • 1367 Words
    • 6 Pages

    Acc 561 Week 2 Importance Of Comparative Analysis

    By use of financial statements, a company can evaluate performance, activity, financing and liquidity. Some common ratios include the price-earnings ratio, debt-equity ratio, earnings per share, asset turnover and working capital” (“Investopedia”, 2012). Ratio analysis helps a business see its progress or failures across the board, it helps them figure out where they need to make improvements financially and business-wide. Ratio analysis is a useful management tool that will improve the understanding of financial results and trends over time, and provide key indicators of organizational performance” (Financial Ratio Analysis;…

    • 1367 Words
    • 6 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Final Analysis
    • 906 Words
    • 4 Pages

    Final Analysis

    Financial analysis has an important role in the changing economic environment. It helps in understanding of the correctness and efficiency of the use of financial resources in generating company earnings. It gives company’s an opportunity to evaluate its financial operations and market position, to identify possible risk, to notice mistakes and make plans for the future. The evaluation of a company’s financial position and operating efficiency can be regarded as part of financial policy. With that being said, a skillful management of resources must be based on the results of financial analysis.…

    • 906 Words
    • 4 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Financial Analysis British Petroleum (Bp) Till 2006
    • 4805 Words
    • 20 Pages

    Financial Analysis British Petroleum (Bp) Till 2006

    A company 's financial statements and ratios are good indicators of its performance over the years. This report specifically compares the ratios for 2004 and 2005, with some additional insight into 2003, 2002, and 2001.…

    • 4805 Words
    • 20 Pages
    Good Essays
    Read More
  • Good Essays

    Assessment of the Future Financial Health of the Company
    • 521 Words
    • 3 Pages

    Assessment of the Future Financial Health of the Company

    A necessary first step in the evaluation of a firm's financial health is the development of a comprehensive series of questions. It is possible to calculate a multitude of ratios, but unless they relate to specific questions and concerns, their usefulness will be minimal. Furthermore, unless one starts with a clear understanding of the right questions, one's analysis will inevitably be determined by whatever information readily available.…

    • 521 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Financial Statement Analysis Summary
    • 1484 Words
    • 5 Pages

    Financial Statement Analysis Summary

    The financial statement is a company’s document reporting the outcome of the business. Managers, investors, and the public can look to the company’s financial statements to assess a company’s current position, past performance, and predictions of future performance (Horngren, Sundem, Stratton, Burgstahler, & Schatzberg, 2008). The individual financial statement assists investors in coming to a conclusion concerning the company. It is imperative that investors not only evaluate the financial statements on an individual basis but also compare them to other companies within the same industry. The financial statement in itself may not provide an investor with sufficient information concerning the company’s inner workings. Thus, investors use data calculations and ratios to establish how companies measure up to one another. For instance, one company’s reported net income may not be equivalent to a business in the same industry if the two differ in size. Conversely, a profit margin ratio calculated by dividing sales into net income is equivalent to any other company regardless of size. This paper illustrates the annual report data for three firms in the manufacturing, service, and retail sectors and portrays the company’s financial standing.…

    • 1484 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Good Essays

    Estee Lauder Case Analysis by Fred David 12th Edition
    • 1045 Words
    • 5 Pages

    Estee Lauder Case Analysis by Fred David 12th Edition

    Estée Lauder Companies was a technologically advanced, innovative company which gained a worldwide reputation for elegance, luxury and superior quality. Estée Lauder Companies, Inc. which founded in 1946 is a U.S manufacturer and marketer of skin care, cosmetics, hair-care and fragrance products. The company’s headquarters are in Manhattan, New York City. The company launched with four products under its flagship brand but over the decades, the business has grown alongside its reputation for elegance and quality. One of the platforms that Estée Lauder discovered was in 1968, with the launch of Clinique Laboratories Inc. and hence become the first company with a line of products that were allergy tested and 100 percent fragrance free. Estée Lauder acquired more brand licensing of names such as Tommy Hilfiger, MAC, Bobbi Brown, LaMer, Kiton fragrances, Donna Karan, and Aveda. And, in 1983 their product were introduced in the Soviet Union.…

    • 1045 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Avon: Report Information from Proquest
    • 1202 Words
    • 5 Pages

    Avon: Report Information from Proquest

    : Benjamin, Kim. : Marketing (Jun 13, 2012): 23. ProQuest : Cosmetics firm Avon's famous "ding dong, Avon calling" ads of the 1950s and 1960s made it a household name, popular with generations of women, while its workforce of door-to-door sales representatives have been at the core of the brand. In the past three years, however, Avon has experienced a steep decline in profits, as it faces increasing competition from more affordable cosmetic ranges, aggressive pricing by rivals in Eastern Europe and the loss of many of its sales reps. Helen Cooper, managing director, Grasshopper, said that arguably Avon's real Achilles heel is the quality of its sales reps. It should focus on quality. Matthew Jacobs, associate planning director, Carat, said that Avon needs to focus on its core competency: the power of social networks. : LSE Article Finder : Headnote The cosmetics firm's new chief executive faces a struggle to stabilise the brand, writes Kim Benjamin Cosmetics firm Avon's famous 'ding dong, Avon calling' ads of the 50s and 60s made it a household name, popular with generations of women, while its workforce of door-to-door sales representatives have been at the core of the brand. In the past three years, however, Avon has experienced a steep decline in profits, as it faces increasing competition from more affordable cosmetic ranges, aggressive pricing by rivals in Eastern Europe and the loss of many of its sales reps. It also made the headlines last year following…

    • 1202 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Estee Lauder Case Study
    • 1884 Words
    • 8 Pages

    Estee Lauder Case Study

    Its founder, Mrs. Lauder, decided to offer her potential customers completely free samples of products, so that before buying they could independently verify the effectiveness of different treatments. The result of such a marketing method was stunning. And this is understandable - similar ideas were never before implemented (at least, it was not documented). As a result, the Estee Lauder brand has been immortalized in the history of world…

    • 1884 Words
    • 8 Pages
    Good Essays
    Read More

Related Topics