SepLember 16ţ 2011

Croup Members | Ameer 1almur Allţ Munlba Shoalbţ naLasha larooqţ
Shumall Arzu
S18A1LClC
MAnACLMLn1
8LvLCnţ lnC

8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e |

Introduction
Revlon is an American cosmetics, skin care, Iragrance, and Personal Care Company Iounded in
1932. Revlon operates as one oI the world's leading cosmetics companies and markets its
products in over 100 countries under such Iamiliar brands as Revlon, Color Stay, Age DeIying,
Almay, and Skin-lights.
History
In 1932, Revlon was Iounded in the midst oI the Great Depression. Two brothers named Charles
and Joseph Revson, they had an idea to create nail polish using pigments instead oI the normal
dyes. They believed this would make the polish last longer and would allow Ior a larger variety
oI colors. To come up with their Iormula, they partnered with a local chemist named Charles
Lachman. Using the Revson name, plus an "L" Ior Lachman, they named their new nail polish
company "Revlon." Within 6 years, the 3 men had turned Revlon into a million-Dollar Company,
selling only their special nail polish. In 1940, Revlon oIIered an entire manicure line, and added
lipstick to the collection. In 1994, The Color-Stay line oI long-lasting cosmetics was introduced
with the debut oI Color-Stay lipsticks, which soon captured the top spot in its category. As more
women began working, they needed makeup that stayed on all day. This has led Revlon to
develop its Color-Stay product lines.
Growth and innovation led the way Ior Revlon. In 1985, Revlon was sold to a subsidiary oI
MacAndrews & Forbes Holdings. In the 1990's, Revlon revitalized its cosmetics business and
strengthened its industry leadership role. Revlon introduced the Iirst transIer resistant lip color
which led to a Iull Color-Stay TM Collection oI transIer-resistant products. The company closed
the gap on its closest competitors and reached a dramatic goal - the #1 brand in mass color
cosmetics. In 1996 Revlon again became a public company, listed on the New York Stock
Exchange
Vision & Mission Statement
Vision Statement
'To Provide Glamour, Excitement, Innovation Through Quality Products At AIIordable Price¨
8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 3




Characteristics Of A Effective Worded
Vision Statement
Revlon
Graphic Paints a picture oI the kind oI company that
management is trying to create and the market
positions the company is striving to stake out
Directional Is Iorward looking ;describing the strategic
course that management has charted and the
kinds oI product/market/technology/customer
changes that will help the company prepare Ior
the Iuture
Focused Is speciIic enough Ior managers to provide
them with guidance Ior making decisions and
allocating resources
Flexible Is Not-Once-And-All-Time-Statement, the
directional course management has charted
may has to be adiusted as
product/customer/technology/markets
circumstances may change
Feasible In within the realm oI the company can
reasonably expect to achieve in due time
Desirable Indicates why direction make good business
sense and is in the long-term interests oI
stakeholders(especially shareowners,
customers & employees )
Easy to communicate Is explainable in 2-3 minutes and ideally can
be reduced to a single, simple & memorable
8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 4

slogan


Mission Statement

'Revlon Is A World Leader In Cosmetics, Skin Care, Fragrance And Personal Care And
Is A Leading Mass Market Cosmetics Brand '
'To Emerge As Dominant Cosmetics And Personal Care Firm In The Twenty-First
Century By Appealing To Young/Trendy Women, Health Conscious (Skin Care), And
Elder Women With Its Variety OI Brand¨

Mission Statement Evaluation Matrix
Organization Customers

Products
or
Services

Markets

Concern
for
Survival,
Crowth,
Profitabilitv
1echnologv

Philosophv

Self-
Concept

Concern
for
Public
Image

Concern
for
Emplovees

Revlon

Statement 1
No Yes No Yes No No No No No
Statement 2
Yes Yes Yes Yes No No No No No


Analysis
Revlon`s mission statement is too narrow considering the Corporate Social Responsibility (CSR)
Iactor into consideration Revlon needs a new mission statement which primarily Iocus on CSR
topics like concern Ior public image, selI concept, concern Ior employees etc and among other
8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 5

Iactors its philosophy which can give customers, employees & stakeholders a decent idea about
the organizational and their investment in it
Proposed Mission Statement
To meet customers need Ior superior quality services. Provide secure & challenging work
environment Ior all employees. Meet everyday needs Ior nutrition; hygiene and personal care
with brands that help people Ieel good, look good, and get more out oI liIe. Total commitment to
exceptional standards oI perIormance and productivity, to working eIIectively, and to a
willingness to embrace new ideas and learn continuously
SWOT Analysis
Since the Industry Averages weren`t available we have used the competitors` financial
ratios for financial analysis.
`In the context of the year 2008
Strengths
25 million was spent on CSR program
Currently, 24.4 million on R&D
Aggressive Advertising worth 120 million
Great operating eIIiciency and use oI capital assets
Quality manuIacturing standards and having ISO-9000 certiIication
Strong Brand recognition
The company tries to introduce new products
Produces products Ior all type oI women, young, trendy, health conscious and older
women
Strong Social Responsibility programs
Large mass merchandisers
Great operating eIIiciency use oI capital assets
Continues new product development
Big share oI share oI sales in the Ioreign market (43° in 2006)
8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 6

Net sale in 2007 increased Irom 2.6° aIter suIIering a loss in 2006
The baby boomer chunk oI the population tends to be brand loyal
Joint venture oI Revlon and PaciIic World Corporation into establishing a new line oI
nail and nail care products
Sales oI products through internet
Weaknesses
Long term debt 2.3 billion. In 2003 Mac Andrews and Frobes Holdings Inc gave out
150 million, later in 2006 an extension oI 87million debt by Mac Andrews was made;
High restricting cost that amounted up to 29 million when David Kennedy was in
command . From the year 2006 2007. First there was a layoII oI 15° beIore Kennedy
in 2000 then another reduction oI 8° when he took charge
Higher prices than competitors
Decrease in sales by 1 million (Irom 2005 - 2006)
High net losses in 2006, which resulted because oI the discontinuation oI Vital Radiance
and because oI the long term debt
Discontinued vital radiance in 2006. The brand was launched in 2006 but was
discontinued as the customers didn`t respond to it. Negative impact oI this product line
was estimated to be 110 million
Employ layoII by 8° duing 2006 2007
Less diversiIied products compared with competitors
Constant organizational restructuring
Lack oI Iinancial resources
Large amount oI advertising expenses
Decrease in current assets and increase current liabilities
Revlon, Inc. is a holding company with no business operations oI its own and is
dependent on its subsidiaries to pay certain expenses and dividends


8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 7

Opportunities
Increase in US teen market 20 million by 2010
Growth in Hispanic population by 2010
Asian markets still 60° uncovered by Revlon
Increase in online retailing
Women in China, India and middle East are rapidly growing interest in purchasing more
cosmetics
Sales oI personal care products increased Iorm 428 to 499.4 in 2006 which indicates a
new trend
Men also using the cosmetic products
Expansion in Hair coloring market among youth
The young migrants to America are increasing
Personal care products usage is increasing
Latin America represents a growth opportunity
Older age women entering into the cosmetic industry
Baby boomers have high levels oI disposable incomes
Globalization can enhance company`s productivity iI the constant restructuring stops
Threats
Racial and ethnic changes in US market
Intense competition (so many brands oIIering the same stuII, even the competition Ior
AIrican American market has increased with the entry oI brands like Fashion Fairs and
cosmetics lines launched by Patti LaBelle)
Some competitors oI multinational companies are oIIering more than iust skin care and
makeup products
Disposable income oI Americans decreasing
Consumers` concerns about product saIety and CSR activities
Maior retailers reducing inventory levels due to recession
Decrease in the value oI dollar
Ageing US population
8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 8

Young age women are decreasing

FINANCIAL RATIO ANALYSIS For The Year 2008

Liquidity Ratios
Current Ratio:
÷ Current Assets/ Current Liabilities
2008 Avon Estee lauder
1.32 1.21 1.9

Analysis: Current ratio is above 1 which indicates that Ior every 1 oI CL there is 1.32 oI CA.
This means that the company is managing its short term obligations quite well. For a creditor this
value would be quite satisIactory as opposed to its investors.
Quick Ratio:
÷ CA - Inventory/ CL
2008 Avon Estee Lauder
0.84 0.6 1.1

Analysis: This ratio indicates the extent to which it can meet its short term obligations without
relying on the sales oI its inventory. This ratio is below 1 which reIers to the Iact that the
company relies quite a lot on its inventory to meet its short term obligations. The Iigure is below
1 which signiIies a little trouble Ior the company. The company may not be doing great but is
deIinitely not the worst one in the industry.

8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 9

Leverage Ratios
Debt to Equity Ratio:
÷ Total Debt/ Total Stock holders` equity
2008 Avon Estee Lauder
-119.48º 4: 1 or 40º 58.2º

Analysis: The negative value indicates that the share oI the owner`s equity as compared to the
creditors in lending the money is a larger one. The company depends mostly on equity. For Estee
Lauder this value amounts up to 58°, which is an alarming sign Ior the company.
Activity Ratios
Inventory Turnover
÷Sales/ Inventory Of Finished Goods
2008 Avon Estee Lauder
3.18 times 3.7 2.1


This ratio states the number oI times a company's inventory is sold and replaced over a period.
The lower the ratio (as compared to the industry average) the better it is Ior the company. A low
ratio implies poor sales and excessive inventory levels which is not the case here as Revlon`s IT
is 3.18, Iollowing Avon`s aIter 3.7.



8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 10

Total asset turnover
÷ Sales/total assets
2008 Avon Estee Lauder
1.65 times 1.8 1.5

Analysis: This ratio includes all the categories oI assets, namely; receivables, and Iixed assets.
The lower the ratio the sluggish the company`s sales, again this value is a satisIactory one and
denotes that the company is managing its assets well.
Accounts receivable turnover
÷Annual credit sales/Account Receivables
2008 Avon Eatee Lauder
7.6X 14.6X 2.1X

Analysis: A low ratio indicates problems in collection which is the case over here, the highest
value is oI Avon that has collected its receivables 14.6 times throughout 2008. Revlon`s low
turnover could be because oI the bad debt.
Day`s sales in inventory
2008 Avon Estee Lauder
114.6 days 98

Analysis: There is considerable diIIerence between the amounts oI Revlon`s DSI and its
competitors. Because oI a higher value the company`s eIIiciency has been hindered. This meant
the company is taking more days to sell oII its inventory as compared to its rivals in the industry.

8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 11

!rofitability Ratios
Gross profit margin:
÷ Sales - CGS/sales
2008 Revlon Avon Etee Lauder
1346 - 491/ 1346 ÷ 63.5º 64.8º 76.79º

Analysis: There is a margin oI 63.5° Ior the company to cover its operating expenses and still
yield a proIit. As compared to its rivals it`s not doing well.
Operating !rofit Margin
÷ EBIT/Sales
2008 Avon Eeste Lauder
155m/1346m ÷ 11.5º 13.10º 15.31

Analysis: The proIit leIt oII beIore paying up interest and tax amounts up to 11.5° which again
is not a good thing even when we compare it with the competitors` ratios the value is the lowest.
Net !rofit Margin:
÷ NI/Sales
2008 Avon Estee Lauder
57.9m/1346m ÷4.3º 8.18º 5..98º

Analysis: 4.3° may not be a good value but considering that its not a negative one indicates that
the company has improved as the values beIore the year 2007 were in negative because oI the
negative income

8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 1

ROA
÷ NI/TA
2008 Avon Estee Lauder
57.9/813.4 ÷ 7.11º 14.4º 10.87º

For every one dollar oI assets the company yields a proIit oI 0.0711which is not exactly a good
sign and the amount oI proIit generated Irom total assets aIter tax and interest is quite low.
ROE:
÷ NI/Total Stockholders` equity
2008 Avon Estee Lauder
57.9/(1113) ÷ (5.20)º 129.6º 26.73º

Analysis: The per dollar proIit Ior every stockholders` equity amount up to -5.20 which again is
a seriously bad sign as it`s not giving the investors/owners any attraction to keep the shares.
!rice Earnings Ratio
÷ !rice/Earnings per share
2008 Revlon Avon Estee Lauder
1.13 7.88

Analysis: This ratio shows the attractiveness oI the Iirm on the equity market, as in how much an
investor is willing to pay Ior one share oI the company. Over here, Revlon`s ratio is low in
comparison to its competitors. It`s not at all an attractive Iigure to the investors as they don`t
expect to get the highest returns Irom this company as opposed to the other ones in the industry.






8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 13

Growth Ratios

Sales

÷ !2 - !1 / !1 ` 100

2008 Revlon Amount in $ Avon Estee Lauder
1346-1367/1367 ÷
(1.5)º
(21) m 7.56° 11.03°

Analysis: The sales decreased which is why the growth rate is negative Ior the company. The
company is not doing well against the others in the industry as the rest oI its competitors have a
positive growth rate.

Net Income

2008 Amount in $ Avon Estee Lauder
57.9 - (13.1)/13.1
÷502º`
71m 64.9º 5.47º

*In 2007 the loss decreased to 16.1 million and in 2008 the net income came out to be a
positive Iigure; 57.9 million

Analysis: The Iigure is so huge because the income Irom 2007 was negative and its value
changed into a positive one in 2008. So in case oI NI Revlon seems to be perIorming as
compared to its rivals.



















8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 14

Matrices




Internal Factor Evaluation Matrix for Revlon
Key internal Factors Weight Rating Weighted
Score
Strengths
1. $25 million spend on CSR program 0.05 3 0.15
2. Spend $24.4 million on R&D 0.06 3 0.18
3. Aggressive Advertising worth 120 million 0.09 4 0.36
4. Great operating efficiency and use of capital assets 0.05 4 0.2
5. Quality manufacturing standards and having ISO-9000
certification
0.04 4 0.16
6. Strong Brand recognition 0.06 2 0.12
7. The company tries to introduce new products 0.04 3 0.12
8. !roduces products for all type of women. young. trendy. health
conscious and older women
0.04 3 0.12
9. Strong Social Responsibility programs 0.05 3 0.15
10. Continues new product development 0.03 4 0.12

Weakness Weight Rating Weighted
Score
1. Extension of 87million debt by Mac Andrews; high restricting
cost
0.03 1 0.03
2. Long term debt 2.3 billion 0.07 2 0.14
3. High prices than competitors 0.09 1 0.09
4. Decrease in sales by I million 0.04 1 0.04
5. High net losses in 2006. which resulted because of the
discontinuation of Vital Radiance and because of the long term debt
0.04 2 0.08
6. Discontinued Vital radiance in 2006. The brand was launched in
2006 but was discontinued as the customers didn`t respond to it.
Negative impact of this product line was estimated to be $110 million
0.05 2 0.1
7. Large amount of advertising expenses 0.02 2 0.04
8. Less diversified products compared with competitors 0.05 1 0.05
9. Constant organizational restructuring 0.04 3 0.12
10. Lack of financial resources 0.06 1 0.06
Total 1 2.43
8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 15


External Factor Evaluation Matrix for Revlon
Key External Factors Weight Rating Weighted
Score
Opportunities
1. Increase in US teen market 20 million by 2010 0.03 3 0.09
2. Growth in Hispanic population by 2010 0.07 4 0.28
3. Asian markets still 60º uncovered by Revlon 0.09 4 0.36
4. Increase in online retailing 0.03 3 0.09
5. Women in China. India and middle East are rapidly
growing interest in purchasing more cosmetics
0.05 3 0.15
6. Sales of personal care products increased from 428 to
499.4 in 2006 which indicates a new trend
0.07 3 0.21
7. Men also using the cosmetic products 0.04 3 0.12
8. Expansion in Hair coloring market among youth 0.02 3 0.06
9. The young migrants to America are increasing 0.03 4 0.12
10. !ersonal care products usage is increasing 0.04 3 0.12
11. Latin America represents a growth opportunity 0.05 3 0.15
12. Older age women entering into the cosmetic industry 0.07 4 0.28

Threats Weight Rating Weighted
Score
1. Racial and ethnic changes in US market 0.04 1 0.04
2. Intense competition 0.08 1 0.16
3. Disposable income of Americans decreasing 0.03 2 0.06
4. Consumers` concerns about product safety and CSR
activities
0.05 2 0.1
5. Major retailers reducing inventory levels due to
recession
0.06 2 0.06
6. Decrease in the value of dollar 0.06 1 0.06
7. Ageing US population 0.04 2 0.08
8. Young age women are decreasing 0.05 2 0.1
Total 1 2.67





8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 16


Competitive !rofile Matrix
Revlon Estee Lauder Avon
Critical success Factors Weights Rating Score Rating Score Rating Score
Advertising 0.21 4 0.84 3 0.63 3 0.63
!roduct Quality 0.16 4 0.64 4 0.64 4 0.64
!rice competitiveness 0.06 2 0.12 3 0.18 3 0.18
Management 0.09 2 0.18 3 0.27 4 0.36
Financial position 0.09 2 0.18 3 0.27 4 0.36
Customer loyalty 0.13 4 0.52 3 0.39 3 0.39
Global Expansion 0.14 3 0.42 3 0.42 4 0.56
Market Share 0.12 3 0.36 4 0.48 4 0.48
Total 1 3.26 3.28 3.6



























8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 17

A SWOT Matrix For Revlon
Strength Weakness
25 million spend on CSR program Extension oI 87million debt by Mac Andrews; high
g cost
Spend 24.4 million on R&D Long term debt 2.3 billion
Aggressive Advertising worth 120
million
High prices than competitors
Great operating eIIiciency and use oI
capital assets
Decrease in sales by I million
Quality manuIacturing standards and
having ISO-9000 certiIication
High net losses in 2006, because oI the
discontinuation oI Vital Radiance & LTD.
Net sale in 2007 increased Irom 2.6° aIter
suIIering a loss in 2006
Discontinued Vital radiance in 2006. Customers
didn`t respond to it. Negative impact 110 M
The company tries to introduce new
products
Employ layoII by 8°
Produces products Ior all type oI women,
young, trendy, health conscious and older
women
Less diversiIied products compared with
competitors
Strong Social Responsibility programs Constant organizational restructuring
Large mass merchandisers and drug stores Lack oI Iinancial resources
Great operating eIIiciency use oI capital
assets
Large amount oI advertising expenses
Continues new product development Decrease in current assets and increase current
liabilities
Big share oI share oI sales in the Ioreign
market (43° in 2006)

Strong Brand recognition

SO Strategies WO Strategies
Introduce the products in untapped
Markets. (S3,O3)
Target a New growing potential Market. (W4,O5)
ST Strategies WT Strategies
Launch a campaign to make people
aware about their Social Responsibility
programs. (S9,S1,T4)
Invest in R & D to come up with better Products.
(W5,W6,T2)
8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 18

\\[^`aZ`W_ ^WS`_
O Asian markets still 60º
uncovered by Revlon

O Long term debt 2.3 billion. In 2003 Mac
Andrews and Frobes Holdings Inc gave out 150
million, later in 2006 an extension oI 87million
debt by Mac Andrews was made;
O
O Older age women entering
into the cosmetic industry

O High restricting cost that amounted up to 29
million when David Kennedy was in command .
From the year 2006 2007. First there was a
layoII oI 15° beIore Kennedy in 2000 then
another reduction oI 8° when he took charge

O Latin America represents a
growth opportunity

O Higher prices than competitors

O !ersonal care products
usage is increasing

O Decrease in sales by 1 million (Irom 2005 -
2006)

O The young migrants to
America are increasing

O Expansion in Hair coloring
market among youth

O Men also using the cosmetic
products

O Sales of personal care
products increased form 428
to 499.4 in 2006 which
indicates a new trend

8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 19


O Women in China. India and
middle East are rapidly
growing interest in
purchasing more cosmetics

8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 0

Analysis:
In the internal analysis matrix Aggressive Advertising worth 120 million is the maior strength as
one can see that I have assigned .09 weights to it. The reason why this is the maior strength, there
are still markets where Revlon has not catered yet, by aggressive advertising they can introduce
their products in untapped markets which would ultimately IulIill their business goal to earn
huge proIits. The maior threat Ior the company is its high prices than its competitors because
there is an intense competition in the market, user do need quality products but they what low
cost as well. Their brand loyalty is minor strength so they should do something in order to
overcome this weakness. II we look at the weighted avg. score oI internal Iactors then we can say
that Revlon is unable to overcome its weakness by utilizing its strengths. Its 2.43 weighted avg.
score shows that it is not doing well internally, has poor control and weak perIormance.
In the external analysis matrix Asian markets still 60° uncovered by Revlon is the maior
opportunity as one can see that I have assigned .09 weight to it. The reason why this is the maior
strength, there are still markets where Revlon has not catered yet, by introducing their products
in untapped markets by which they can IulIill their business goal oI earning huge proIits. The
maior threat Ior the company is intense competition because its prices are high than its
competitors, user do need quality products but they also want low cost. Women in China, India
and Middle East are rapidly growing interest in purchasing more cosmetics so they have a new
potential market to serve. They can reap the beneIit. II we look at the weighted avg. score oI
external Iactors then we can say that Revlon is able to overcome threats by utilizing
opportunities. Its 2.67 weighted avg. score shows that it is doing well externally, has control over
market and perIormance is good.
By looking at the weighted avg. scores we can say that Revlon is not doing well as compare to its
competitors. Estee lauder weighted avg. score is 3.3.28 and Avon weighted avg. score is 3.6.
Both competitors are doing well.
In the SWOT matrix by utilizing their strength oI Aggressive Advertising worth 120 million they
can cater Asian markets which are still 60° uncovered by Revlon so they can Introduce the
products in untapped Markets. It would be beneIicial Ior them and they could easily reap the
beneIit. By Target a New growing potential Market which is Women in China, India and middle
8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 1

East has rapidly growing interest in purchasing more cosmetics to boost their sales which would
be helpIul in compensation the previous Decrease in sales by I million. They should Launch a
campaign to make people aware about their Social Responsibility programs. They have already
spent 25 million on CSR program this would be turn into high gain because now a day`s
Consumers` concerns about product saIety and CSR activities. They should Invest in R & D to
come up with better Products because there is Intense competition n they have suIIered Irom
High net losses in 2006, because oI the discontinuation oI Vital Radiance & Long Term Debt
and one more reason Ior this Iailure is that Customers didn`t respond to it which resulted in
Negative impact 110 Million.

8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e |


Space Matrix
Environmental
Stability (ES)
Ratings Competitive
Advantage (CA)
Ratings
Price elasticity oI
demand
-5.0 Control over supplier
and distributors
-3.0
Competitive pressure -4.0 Market share -4.0
Demand variability -4.0 Customer loyalty -3.0
Price range oI
competing Iirms
-5.0 Product liIe cycle -4.0
Risk involved in
business
-2.0 Product price -3.0

Total -20.0 Total -17.0





Financial Strengths
(Fs)
Ratings Industry Strengths (Is) Ratings
Operating Income 1.0 Growth Potential 4.0
Net Income 1.0 ProIit Potential 3.0
Working Capital 1.0 Ease OI Entry Into
The Market
3.0
Leverage 1.0 Resource Utilization 4.0
Inventory Turn Over 2.0
Earnings Per Share 1.0
Total 7.0 14.0
8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 3

Analysis
From the above analysis and diagram we can conclude that the best strategy Ior Revlon is
competitive strategy which contains backward, Iorward and horizontal integrations, market
penetration, market development, and product development.
ES average is -20/ 5 ÷ -4.00 IS average is ¹14/ 4 ÷ ¹3.50
CA average is -17/5 ÷ -3.40 FS average is ¹7/ 6 ÷ ¹1.17




















Aggressive
Vertical integrations.
Market penetration
Market development
DiversiIication.
Conservative.
Market penetration
Market development
Product development
Related diversiIication.
Defensive
Retrenchment
Divestures
Liquidation
Competitive
Vertical integrations
Market penetration
Product development

8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 4


The Grand Strategy Matrix Ior Revlon
In the case study oI Revlon we saw that the market is growing worldwide even in America the
young migrants increasing year by year but the competitive position oI Revlon is not strong
because the competitors are Proctor & Gamble, Unilever, Avon Products, Inc` which is very
strong and have popular brand names. ThereIore according to Grand Strategy Matrix the Revlon
lies in quadrant II. According to this quadrant the Revlon needs strategies like Market
development, Market penetration, Product development, Horizontal integration, Divestiture, and
Liquidation. One oI these strategy is important Ior Revlon


Rapid market growth
Quadrant II Quadrant I
Market development Market development
Market penetration Market penetration
!roduct development product development
orizontal integration Forward integration
ivestiture Backward integration
iquidation orizontal integration
Related diversification
eak Strong
Competitive Competitive
Position Position
Quadrant III
Quadrant IV
Retrenchment Related diversification
Related diversification Unrelated diversification
Unrelated diversification Joint ventures
ivestiture
iquidation
SIow Market Growth



Relative Market Share !osition

8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 5















It says company market share is in medium position relative to industry market share














Internal-external matrix

SLar CuesLlon Marks
Cash
cows uoas
lndusLrv
sales
arowLh
raLe 8evlon
1Ŧ0 2Ŧ0 3Ŧ0
4Ŧ0
8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 6






























Recommendations`
1 2
3
4
3
6
8evlon
8 e v l o n ţ l n c Ŵ 2 0 0 7
Þ a a e | 7

As we saw in the case study oI Revlon which was actually written in 2007 that the company is in
great troubles. The Iinancial position is also very weak and it generates losses in the recent years.
AIter applying the tools and techniques oI strategic management our conclusion
is as Iollow.
1) The company should develop new markets, which is not tapped by the competitors.
2) The company should improve the quality oI products as well as the price minimization
EIIorts should be taken.
3) The company also needs to increase sales through increasing marketing eIIorts.
4) The other strategy option is the integration it may be Iorward, backward or horizontal
Integration.
5) The company should sell some unproIitable division.
6) The last option is liquidation. II the company Iails to Iollow the above strategies then it
Should liquidate the business.

Sign up to vote on this title
UsefulNot useful