Financial Analysis Project Essay

Todays face-to-face products market has become more competitive than ever. With economic and political dubiety in many move of the instauration, The Este Lauder Companies Inc. has invoked a shape of unique and diverse strategies in order to gain customer bothegiance while attracting new customers for staying as a drawing card in face-to-face products persistence. This paper focuses on analyzing The Este Lauder Companies Inc., including federation overview and chief(prenominal) strategies. The main purpose of this paper is using a series financial news report ratios as tools to hit the books the operation of this company from 2008 to 2012, the nearest five years. afterward researching of the strategies and data, I make a conclusion that this company is in a healthy financial situation and has a large capacity to cook well in the future.Overview After oneness quarter learning intimately financial accounting, I have more or less sort of concept just slightly this cours e. In order to deeply understand the knowledge we have wise(p) in class and have solid experience about all of those formulas. I write this paper to turn abstract theory into practice. I choose The Este Lauder Companies Inc. as my analysis target, not just now because I am a loyal consumer for this company, but also Im very interested in its unique business strategy. As we all know, The Este Lauder Companies Inc. is a family business and remains the leader in the worldwide prestige beauty market for a enormous history.Whats more, even though its a traditional company, it has not fall behind in the extreme competition nowadays. I imply its success mainly contributed to four critical areas creativity and innovation, high-tough, local relevance and digital capabilities. This paper will focus on three parts to analyze The Este Lauder Companies Inc. First, I plan to say something about this company, including its development overview and strategies. Second, I will put this company in the unscathed industry to analyze its opportunities and challenges. The last but not the l due east, Id like to use financial accounting ratios as tools to deeply analyze the operation situation of this company.Company OutlineThe Este Lauder Companies Inc. is one of the leading manufacturers and sellers of skin shell out, make up, fragrance and pig care products in the world. The companys products are sold in over one hundred fifty countries and characters under almost thirty brands. Among those brands, there are some outsized brands we are very familiar with, and actually, those brands indeed contributed a lot to the entirely companys sales. They are Este Lauder, Clinique, Aramis, Origins, Prescriptives, MAC, Bobbi Brown, Tommy Hilfiger, Kiton, La Mer, American Beauty, Flirt , and AERIN Beauty. Taken together, sales of all the Companys brands comprise about one-fifth of the $40 billion global prestige beauty business.The Este Lauder Companies long-term strategy is to achi eve higher(prenominal) levels of sustainable, profitable growth to remain a leader in global prestige beauty business. In that case, they use consumers as their muse to create products that really needed. Those educational beauty advisors always keep a intimately connection with consumers, in order to inspire brand loyalty. Whats more, this company dedicated in creating certain products for specific markets and deeply immersed in the online world as well. At a glance, the company sells its products mainly through some kind of channels to keep their brands are easily accessible.These channels concern department stores, retailers, TV shopping, stores on ships, in-flight, duty-free shops in airports and the Internet. The Americas, definitely occupies their largest region of sales, accounting for about 42% of total global sales. Europe, the middle east and Africa owns the highest percentage of operating income, because those regions enjoyed huge sales growth during the last devil ye ars. Whats more, China has become a more and more great market in the Asia/ Pacific region after Japan, fueled by rapidly growing demand of luxury brands.Industry AnalysisThe private care industry concludes a variety of products, including fragrances, makeup, hair care, sunscreen, toothpaste, and products for bathing, nail care, and shaving. study companies in this industry include Este Lauder, Johnson& Johnson, Procter& Gamble, LOreal, Shiseido and Unilever. The United States, Europe, UK, brazil-nut tree and Russia dominate the global personal care products. India and China are the swift growing markets for personal care products. The global personal care products industry has revenue of about $250 billion annually. Major products include cosmetics (35% of industry revenue), hair products (25%), and creams and lotions (20%). Other products include perfume (10%), toothpaste and mouthwashes (5%), and shaving preparations.The global personal care products industry is concentrated with the top 50 companies holding a feature market share of around 85%. The profitability of individual companies depends on product innovation, effective sales and marketing, and efficient operations. Large companies like The Este Lauder Companies Inc. have scale advantages in purchasing, manufacturing, distribution, and marketing. Small companies can make do effectively by offering specialized products. Over the coming years, the all in all industry is likely to continue investing in eco-friendly practices.