Preview

Revlon Case Analysis

Satisfactory Essays
Open Document
Open Document
1136 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Revlon Case Analysis
REVLON INC.

Point of View: The analysis of the Revlon 's case and the recommendation provided is based on the company 's consultant 's point of view.

Problem:

Since the CEO of Revlon started to minimize the cost of operation by consolidating the functions of the departments which can be combined and eliminating other management positions in order to reduce its expenses, it can also the reason why the company experienced decreasing sales and operating losses because there is a possibility of having problems in one of the department that is not being properly addressed since there is no sufficient number of department heads and personnel who can work together for immediate resolution.

Areas of Consideration:

Revlon has been in the industry since 1932 where the brand has been known worldwide as a beauty products provider which started from nail polish to lipsticks and other cosmetics and skin care product. Since the company was able to enter different countries across the globe, this is an indicator that the company produces quality products to its consumers. Revlon 's research and development team is dedicated in developing products to beautify, enhance and maintain the young and pleasing appearance of women which has been evidently successful in the addition of their cosmetic and personal care products from its nail polish. Throughout the years in the business, Revlon was able to continue its operation not only in the United States but also in other foreign countries. Based on the sales reported, Revlon continuously increase the sales percentage outside US which is an indicator that its products has penetrated foreign markets.

Although the company was able to increase their sales in the countries outside US, Revlon 's overall sales decrease. The company also incurred operating loss and debts in the past three years resulting to the CEO 's decision to cut cost by means of reducing its workforce and consolidating functions. The rise of gas

You May Also Find These Documents Helpful

  • Good Essays

    Cologne Haefren Baum Case

    • 924 Words
    • 4 Pages

    Although the sales of the company have declined significantly their cost of goods sold has remained high, especially between 1994 and 1995 the company had a decline in sales and an increase in cost of goods sold. This is evidence the company is having problems passing costs to its consumers. The company is not very asset intensive and its decrease in total asset turnover can be due to their decrease in sales, however their rather low total asset turnover which is also decreasing from 2.1 to 1.5 shows their assets are not being used very efficiently. As a result of their sales decrease their Fixed Asset turnover also decreased from 7.0 to 5.4. The decrease in sales and increase in competition also means more shelf time for their inventory which has increased from 103 to 129, which makes Haefren Baum’s price cutting strategy questionable. The company is already experiencing a loss of revenue due to their lower prices; however this is not stimulating the number of different sales because the inventory is sitting in the…

    • 924 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Sunbeam Case Analysis

    • 914 Words
    • 3 Pages

    3) A few strategic changes were made in order to cut costs. The company’s core business was redefined and all non-core businesses were marked for divestiture. In addition, regional headquarters and back office administrative functions were consolidated as well as the production facilities. Overall personnel were reduced by 50%. The cut in costs might result in higher profits since wages expense and…

    • 914 Words
    • 3 Pages
    Powerful Essays
  • Satisfactory Essays

    | We tried to decrease cost and increase revenues by attempting to cut unit sales by increasing price. We were trying to reduce amount of production which is coming from home country.…

    • 304 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Nardelli's Changes

    • 658 Words
    • 3 Pages

    The main change that Nardelli introduced that affected profitability was the centralization of the merchandising and purchasing. It is true that before 2000 the store managers were able to be closer to customers and to decide what products stock in the stores, but at the same time that was highly inefficient from an operational point of view, leading to a mismanagement of stock levels. Thanks to Nardelli’s new centralized approach the company was able to eliminate almost 20,000 unprofitable items and to introduce other higher priced, higher-end products which contributed to increase sales and eventually…

    • 658 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Dynacorp Case Analysis

    • 549 Words
    • 3 Pages

    The CEO and some executives believed that the main problem was Dynacorp’s organizational structure. Dynacorp was designed as a functional organization since it was founded. There were three line divisions: engineering (organized by technical area), manufacturing (organized by location) and marketing (organized by geography). The CEO assigned an small internal task force. The task force determined a lot of problems in Dynacorp and looked for what was causing them and on how to fix them. The task force interviewed all divisions. The all divisions were aware of the problems but they was blaming continuously each other. The task force focused on eventually the alternative organizational structures. The task force introduced five organizational models to The CEO: product division structure, customer division structure, functional/product matrix, front/back and functional structure with stronger linking mechanism.…

    • 549 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Case Study Macy's

    • 2423 Words
    • 10 Pages

    The case study is Macy’s Department Store Repositioning. The key problem is that the traditional department stores sales and profits are declining. There are specialty stores, discount stores, and online stores that offer similar products at a fraction of the cost for the most part. However, in the declining market for the department store industry, Macy’s consolidated stores, established a national department store and continues to make a steady profit. It is usually the time to divest, sale, or change product mix of a company when a company enters in a mature or declining phase in business.…

    • 2423 Words
    • 10 Pages
    Better Essays
  • Powerful Essays

    When sales decrease, revenue and profit decrease and the business becomes more difficult to maintain and improve. Thus, Buckmeister had to find the right method to face the sales decrease in order to retain the sales to their normal level and more importantly to maintain a steady growth of all seventy-four stores in the future. In addition to that, the brand image of the business might be hurt as well during a decrease in sales. Attempts to enhance the image of the business and its products can be difficult, especially when customers have stopped or became reluctant to consume your product.…

    • 983 Words
    • 29 Pages
    Powerful Essays
  • Good Essays

    Loreal Strategic Analysis

    • 1690 Words
    • 7 Pages

    Loreal’s first core competency is seen through it’s product innovation. L’oreal is fully dedicated to creating new and innovative products at it’s advanced dermatological research facilities. L’oreal invests heavily in research and development and aims to introduce one or two new products each year, every year in each of it’s world-wide markets. In fact, L’oreal annually invests 3 percent of its sales for research and new product creation. L’Oréal then regains this investment through the sales of its new globally launched products. This core competency is cstly for competitors to imitate and adds a lot of value. This focus on innovation ensures growth and helps L’oreal to have a huge competitive edge over its domestic rivals.…

    • 1690 Words
    • 7 Pages
    Good Essays
  • Good Essays

    L'Oreal Swot Analysis

    • 1120 Words
    • 5 Pages

    Before the facial cosmetics, L’Oreal was known as a hair-colorformula developed by French chemist Eugene Schueller in 1907. It was then known as"Aureole". Schueller formulated and manufactured his own productswhich were sold to Parisian hairdressers. It was only in 1909 that Schuellerregistered his company as "Societe Francaise de Teintures Inoffensives pour Cheveus,"the future L’Oreal. Scheuller began exporting his products, which was then limited to hair-coloring products. There were 3 chemists employed in 1920. In 1950, the research teams increased to 100 and reached 1,000 by 1984. Today, research teams are numbered to 2,000 and are still expected to increase in the near future. Through agents and consignments, Scheuller further distributed his products in the United States of America, South America, Russia and the Far East. The L’Oreal Group is present worldwide through its subsidiaries and agents. L’Oreal started to expand its products from hair-color to other cleansing and beauty products. The L’Oreal Group today markets over 500 brands and more than 2,000 products in the various sectors of the beauty business. Such includes hair colors, permanents, styling aids, body and skincare, cleansers and fragrances. Indeed, the L’Oreal Group have reached the peak that all cosmetic brands sought after. Many factors contribute to the success of the Company. These will be discussed further in the proceeding parts of this study.…

    • 1120 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Revlon Case Study

    • 690 Words
    • 3 Pages

    weeeeeeee wqeeqwe qweew wewewe s in 10 minutes, as well as its Frost & Glow highlighting brand. In…

    • 690 Words
    • 3 Pages
    Powerful Essays
  • Satisfactory Essays

    Revlon Case Study

    • 830 Words
    • 4 Pages

    1. Strength a. Innovative product launch b. Revlon has strong social responsibility programs c. They has minimum management expenses d. Company has strong marketing programs e. Strong research and development programs f. It has Large mass merchandisers and chain drug stores g. Continuous new product development h. Great operating efficiency and use of capital assets i. Revlon is a idea generated company 2. Weaknesses a. b. c. d.…

    • 830 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    Revlon Strategic Plan

    • 2968 Words
    • 12 Pages

    This study aims to address the aforementioned problems by providing information about threats, opportunities, weaknesses and strengths of Revlon and making use of this information to achieve the following:…

    • 2968 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Garnier Market Research

    • 2669 Words
    • 11 Pages

    Within Garnier, we have incurred a study on the hair care product range of Garnier that is Garnier Fructis and Ultra Doux. We have essentially focused on shampoos and conditioners.…

    • 2669 Words
    • 11 Pages
    Powerful Essays
  • Best Essays

    Revlon

    • 3416 Words
    • 5 Pages

    Revlon Vision Statement…3 Revlon Executives…3 History…4 Brand Overview…4 Target Market Approach…5 Audience Profile…5 Audience Purchasing Process…5 Competitive Analysis…6‐8 SWOT Analysis…9‐10 Barriers to Purchase…11 Marketing Objectives & Strategies…12‐13 Market Growth…14 Works Cited…15‐16…

    • 3416 Words
    • 5 Pages
    Best Essays
  • Better Essays

    Revlon Ida

    • 1637 Words
    • 7 Pages

    Revlon is a worldwide cosmetics, hair color, beauty tools, fragrances, skincare, anti-per spirants/deodorants and beauty care products company. Revlon is a global color cosmetics, hair color, beauty tools, fragrances, skincare, anti-per spirant / deodorants and beauty care products company Websites featuring current product and promotional information can be reached at www.revlon.com, www.almay.com and www.mitchumman.com. The Company's brands, which are sold worldwide, include Revlon®, Almay®, ColorSilk®, Mitchum®, Charlie®, Gatineau® and Ultima II®.…

    • 1637 Words
    • 7 Pages
    Better Essays

Related Topics