Financial Analysis Project Essay

todays ad hominemized harvest-tides foodstuff has suffer more competitive than ever. With economic and governmental uncertainty in many separate of the world, The Este laudator Companies Inc. has invoked a take of unique and diverse strategies in revise to gain customer loyalty tour attracting new customers for staying as a drawing card in personal products industry. This radical steeringes on analyzing The Este Lauder Companies Inc., including confederacy overview and main strategies. The main purpose of this paper is victimisation a series fiscal method of business relationship ratios as tools to tumble the exercise of this caller-out from 2008 to 2012, the ne arst five years. aft(prenominal) researching of the strategies and data, I make a conclusion that this company is in a healthy financial situation and has a large ability to develop well in the future.Overview After one quarter learning closely financial accounting, I take over any(prenominal) sort of concept more or less this course. In order to deeply understand the noesis we have learned in yr and have solid experience close 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 only because I am a loyal consumer for this company, unless also Im real interested in its unique bloodline strategy. As we all know, The Este Lauder Companies Inc. is a family business and remains the attraction in the globular prestige bang market for a long history.Whats more, even though its a traditional company, it has not fall crapper in the extreme competition nowadays. I think its success mainly contributed to quaternity critical aras creativity and innovation, high-tough, local relevancy and digital capabilities. This paper will focus on three parts to analyze The Este Lauder Companies Inc. First, I forge to say something about this company, including its development overview and stra tegies. Second, I will put this company in the strong industry to analyze its opportunities and challenges. The run but not the least, 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 trim business organisation, make up, fragrance and hair c atomic number 18 products in the world. The companys products are sold in over cl countries and regions under almost thirty blemishs. Among those brands, there are some big brands we are very familiar with, and actually, those brands indeed contributed a lot to the whole companys sales. They are Este Lauder, Clinique, Aramis, Origins, Prescriptives, MAC, Bobbi Brown, Tommy Hilfiger, Kiton, La Mer, Ameri croup Beauty, Flirt , and AERIN Beauty. taken together, sales of all the Companys brands comprise about one-fifth of the $40 billion global prestige beaut business.The Este Lauder Co mpanies long-term strategy is to achieve higher levels of sustainable, profitable harvest-home to remain a leader in global prestige beauty business. In that case, they use consumers as their muse to score products that really needed. Those educational beauty advisors incessantly keep a good confederacy 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 involve plane section 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 center field east and Africa owns the highest percentage of operating income, because those regions enjoyed long sales growth during the last 2 years. Whats more, China has become a more and more important market in the Asia/ Pacific region after Japan, fueled by rapidly growing demand of luxury brands.Industry compendiumThe personal care industry concludes a variety of products, including fragrances, makeup, hair care, sunscreen, toothpaste, and products for bathing, nail care, and shaving. major(ip) companies in this industry take Este Lauder, Johnson& Johnson, Procter& Gamble, LOreal, Shiseido and Unilever. The unify States, Europe, UK, Brazil and Russia dominate the global personal care products. India and China are the hurried growing markets for personal care products. The global personal care products industry has taxation of about $250 billion annually. Major products allow 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 p ersonal care products industry is concentrated with the crystalize 50 companies holding a combine market share of around 85%. The profitability of individual companies depends on product innovation, effective sales and marketing, and efficient operations. banging companies like The Este Lauder Companies Inc. have scale advantages in purchasing, manufacturing, distribution, and marketing. Small companies can compete effectively by offering specialized products. Over the coming years, the whole industry is likely to continue put in eco-friendly practices.