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Case Summary Lipstick, powder, cologne, lotion and hairsprays, these are just few things that a woman

cannot live without. Whatever your status maybe, a student or employee, teenager or adult, as long as you are concern and conscious about your look, you definitely need these products. Even men cannot escape with reliance and need of these products. Personal products industry thus is a good business. But a good choice of business comes with great risk and uncertainty. Just like what happened in the Estee Lauder Companies, Inc. Like other big companies, Estee Lauder started as a small company without any established company structure and plans. As time went by, the company started structuring its core values, mission, vision, organizational structure, objectives and strategies that it chose to implement for the achievement of its goals. The company has arrived with decisions that greatly affect its operation. Cosmetic industry is expected to hit in the succeeding years but many social and environmental issues are waiting to affect companies operations. Barriers to entry in the industry is also low , thus, powerful competitors are expected to arrive with more advanced technology and facilities, good management team, more diversified products and more financial stable compare to Estee Lauder. Estee Lauder decided to differentiate their products and to focus on high class customers as their target market hence prestige pricing is implemented that vary from product to product. Advertisements, good distribution channels and very good marketing efforts were also implemented in all geographic areas covered. Finances were stable until such time when it diminishes little by little. An Organizational structure was also developed to manage the company but there were some unclear matters as to the kind of structure the company was using. Top management was in to brand acquisition and always gives significance to selling decisions.

What future awaits the Estee Lauder Companies? Can it overcome all the challenges? Moreover, what will be the best move for the company for achieving its goals and objectives? Brief Background Elegance, Luxurious and superior quality beauty products, these factors put Estee Lauder at the top of beauty industry. They showcased four segments which include: Make Up, Skin Care, Fragrances and Hair Care. Estee Lauder is known to be the industry leader and a trend setter in beauty and products. Estee Lauder is a U.S based company specializing in manufacturing beauty products and fragrances. It was established in year 1946 by Estee Lauder and husband, Joseph Lauder. The small home business of Lauders started out because of Estees interest on it and her uncle, John Schotz, expertise to develop beauty products. They began selling their products directly to their customers. As they failed to bring it at Madisons Avenue, They decided to market through outside boutiques and department stores before they finally acquire their own in year 1948. For the next 15 years, the company continued to distribute its product on selected U.S stores and by year 1960 it globalized its operation bringing Estee Lauders products in Harrods, London and a year after to Hong Kong Market. Introductory products of the company include super rich all-purpose cream, cream pack, cleansing oil and skin lotion. In 1964, Estee launched its Aramis, fragrance and grooming products for men and by year 1968, Clinique, dermatological tested cosmetic product, is introduced in the market. In 1967, as the company gain observable progress, the company decided to expand its business by opening Clinique Lab. Inc. and acquiring more brands like MAC, Tommy Hilfiger, Bobbi Brown, Donna Karan and the like. In 1983, Estee products were introduced in the Soviet Union. In 1995, Estee Lauder Company became popular in the public because of their beauty products and fragrances.

In 1998, Estee Lauder Company was the first major cosmetic firm to sell its product via internet and the acquisition of more brands was made including Jo Malone,, Bumble & Bumble LLC and Stila cosmetics which, later on, was sold. In 2003, Darphin, Rodan +Fields, and License from Michael Kors brand. In 2004, the company launched its Beauty, Flirt and Good skin through its beauty bank division. In 2005, it presented Grassroots and Daisy Fuentes, Sean John, Missoni, Donald Trump in 2006. Estee Lauder Company has 26 brands, sells products in more than 130 countries and employs over 22,000 people across the world. Although Mrs Lauder passed away in April 2004, she witnessed the growth of their business earning $5 billion annually. The Lauder legacy continues to stand as their successors handle it effectively. Bringing the best in everyone we touch, this is the vision that lead them to be an industry leader and trend setter. Mission Statement The employees of the Este Lauder Companies are committed to working together with uncompromising ethics and integrity. They strive to always: Being responsible citizens in every community we serve Understanding that we are part of a larger whole and that our actions have consequences Striving to continuously look for new and better ways to do things to constantly raise our standards Providing consumers with innovative cosmetic products of the highest quality and safety standards Delivering outstanding service by treating each individual as we ourselves would like to be treated Building partnerships with our stakeholders based on fairness and trust Pursuing profit-but never at the expense of quality, service or reputation Eliminate waste and reduce inefficiencies in order to provide maximum value to our customer Enhance our reputation of image, style and prestige

Create an environment that fosters personal growth and well being Most of all, staying committed to working safely together with uncompromising ethics and integrity

Proposed Mission Statement: Estee Lauder Company aims to cater beauty and fragrance needs of high profile individuals, bringing in them the companys passion of making eminent branded products. Vision Statement Bringing the best in everyone we touch By "The best", Este Lauder means the best products, the best people and the best ideas. These three pillars have been the hallmarks of the Companies since it was founded by Mrs. Estee Lauder in 1946. Proposed Vision Statement: In year 2017, The Estee Lauder Companies Inc., envisions itself to become the leading cosmetics and fragrance company worldwide, known for its prestige brand collections and highly competitive prices. I. Time Context July 1, 2007 (Fiscal Year) II. Viewpoint The whole case analysis would be on the viewpoint of the Executive chairman of the Board Mr. Leonard Lauder.


Statement of the problem How will Estee Lauder Companies, Inc. sustain its continuous growth internationally, especially in

India and China? IV. Statement of Objectives a. Long-term objectives To make Estee Lauder achieve a better competitive position in industry.

b. Short-term Objectives To achieve a 10% increase on the return on sales of fragrance products. To select appropriate distribution channels especially for fragrance products. To restate the organizational structure that guides them in one direction and can be clearly recognized by everyone.


Areas of Consideration a. SWOT Analysis

STRENGTHS Industry Recognition Conformance to ISO 1 14001 (globally recognized) Wide scope of the high-end cosmetic 2 industry 3 Implementation of Gift With Purchase 4 One of the first cosmetic companies to offer products online.

WEAKNESSES 1 Lack of product diversification 2 3 4 5 Family members are the largest shareholders which can affect the decision making processes The company lacks clear vision The company has confusing organizational structure whether traditional, functional or divisional Decreasing ratio of operating income for fragrances products

5 Globalized Organization 6 Brand name is of high value Industry leaders in innovation and 7 customer service 40% increase of revenue within 2003 to 2007 8 from 5million to 7 million Continuing purchase of new start up 9 businesses like Bumble and bumble products in 2007 by the company

OPPORTUNITIES Internet provides a huge market place for 1 sales QVC is a huge channel in which some ELC 2 brands have been featured on Modernization in the work place may 3 increase capacity 4 New markets - Globally Increasing no of men who are becoming concerned with their looks Increasing no of customers who are 6 becoming more interested in herbal products derived from natural resources Developing skin care products to open 7 market for Aging population. 5

THREATS FDA and other organizations worldwide 1 are increasing regulations and policies 2 Difficult Retail Environment 3 Many customers tend to be brand loyal Diversification of many products and 4 brand names in the cosmetics industry by top competitors Creation of newly started companies that 5 produces specialty products Sections of population that desire a more 6 natural look and reduces use of cosmetic products


SWOT Matrix
WEAKNESSES Continually expand product 1 promotions thru advertisements (W5, O1, O2) Development of new cosmetic 2 products for men and women (W1, W5, O5)

STRENGTHS Expansion of Estee Lauder's 1 product offerings to other foreign countries (S5, O4) Developing products, intended OPPORTUNITIES for men, women and aging 2 people, made up of herbal products from natural resources (S8, O4, O6)


Offer more promotions and discounts to customers to 1 encourage further sales (S3, S4, T3) Development of soaps and 2 other natural products that promote natural looks (S7, T6)

Developing a clearer Vision statement in order for the firm to 1 be competitive in dealing with its competitors (W3, W4, T4, T5) Strengthen the means of distribution thru increasing 2 channels like mall-based specialty stores (W5, T2, T4)

c. Posters Five Forces Analysis Threat of the New Entrant Low The threat of new entrant in the industry is low because Estee Lauder Company already created a strong brand loyalty that builds Estee Lauders confident and maintains trust of its patroniser. Estee Lauder Company will not also be threatened of new beauty product launches in the market because its brand is widely known for quality and prestige. Threat of Substitutes Low

Estee Lauder have established loyalty from their customer and when someone starts using the products and see good improvement, trying another product is almost set aside unless there is a promising technology available that promises permanent improvement. Bargaining power of suppliers Low The suppliers of Estee Lauder has little bargaining power in the market because the company has its own in- house developed ingredients used in manufacturing their beauty products and fragrances. What is being outsourced in the market represents only a little component of the whole product like basic and non-value chemicals and packaging. Bargaining power of buyers Low The buying power of the customers of Estee Lauder is weak. Their buyer belongs to the high end market or those who are price insensitive meaning even Estee Lauder chooses to raise their prices for same products its customers will just overlook it or it cannot pressure the seller, Estee Lauder, the same way it wants to happen. In this kind of market the main competition is on product quality, brand recognition and product differentiation. Intensity Rivalry among Competitors High Estee Lauders major competitors are Avon, LOreal, P&G, Max Factor, Revlon, etc. ELC therefore needs to have continuous growth and innovation for its products for them to stay ahead

of competition. There are various brands under the company so it is important that the range of price is good and they can differentiate their products well without customers facing high switching costs. In 1976, Estee Lauder created the line designed for men. It was called skin supplies for men (Estee Lauder 2003a). Avon, Max Factor and Revlon did not have men lines. PESTEL ANALYSIS Political factors The political environment within which an organization exists has far reaching consequences. The political environment most obviously operates at National level, but may also be significant at local and international levels. Estee Lauder gives direction to countries through the way they exert control over the economy. Estee Lauder should not only be aware with the politics of a country, but also with the media, industry and labour leaders. In addition, Estee Lauder should also consider policies in different countries that promote social welfare. The following political factors can affect the business environment: Level of government involvement in business Stability Taxation

Economic factors Estee Lauder looks at the interplay of market forces that dictate the state of the economy and implications on both commercial and non-commercial organizations. Prices vary from brand to brand and product to product, but these are usually in the higher ranges of an industry. Moreover, there is unstable economic condition that causes the rise of unemployment rates, lessening the consumers spending power. The factors include:

Exchange rates Interest rates Spending power Inflation and employment

Socio, Cultural Factors The socio cultural influences on businesses vary internationally. These affect a societys basic values, perceptions, preferences and behaviours. It is vital that such factors are considered if an organization wants to achieve its proposed objectives. Its population demographics include various age groups ranging from teenagers to veterans. Factors include: Education and belief Why do customers buy When do customers have time for shopping The roles of men and women within society and depending upon that the products should be launched Estee Lauder has received customer complaints regarding the fact that new products are being tested on animals first. They have to look into this matter as it can pose serious issues with the customers. They also launched Breast Cancer Awareness (BCA)

Technological factors More and more businesses are affected by technology. Technological factors affect the operations of the firm since technological advancements serve to avoid obsolescence and to promote innovation of


relevant techniques in the industry. Estee Lauder has rapid technological changes in its products, and these products can be accessed online via the internet. Some technological factors are: Information Technology (IT) rapid growth Innovation Government spending on research New discoveries and developments Product life cycle

Environmental Factors These factors are also known as the Natural factors. These factors help Estee Lauder in showing strategic doubts and their worth in the predicting and planning processes using environmental aspects. There have been emissions of harmful gases and fluorocarbons, which Estee Lauder must take care of as it is an environmental threat. It increases the significance of the following factors: Shortage of raw material opportunity Increased pollution Increased governmental intervention

Legal Factors Estee Lauder functions within a structure of Government regulations and legislations. These laws and regulations should be considered when running businesses: Labour laws and industrial relations Policies and Regulations Municipal licenses

Formation Taxation Competition Copyright and patent laws Minimum wages laws and Employment law

CPM Competitive Profile Matrix





CRITICAL SUCCESS WEIGHTED WEIGHTED WEIGHTED WEIGHTED WEIGHT RATING RATING RATING RATING FACTORS SCORE SCORE SCORE SCORE MARKET SHARE 0.05 3 0.15 4 0.20 3 0.15 2 0.10 PRICE 0.15 3 0.45 3 0.45 4 0.60 2 0.30 PRODUCT QUALITY 0.20 4 0.80 4 0.80 3 0.60 3 0.60 PRODUCT LINES 0.15 2 0.30 3 0.45 2 0.30 4 0.60 FINANCIAL POSITION 0.10 3 0.30 4 0.40 4 0.40 3 0.30 EMPLOYEES 0.10 3 0.30 2 0.20 2 0.20 4 0.40 CUSTOMER LOYALTY 0.10 2 0.20 3 0.30 4 0.40 3 0.30 INNOVATIVE CULTURE 0.15 3 0.45 4 0.60 3 0.45 2 0.30 TOTAL 1.00 2.95 3.40 3.10 2.90

The CPM above proves that ELC Companies Inc., is still one of the leading companies in the cosmetics industry. Using product quality as the base, we can say that ELC and LOreal lead the competition. From the computations in the matrix, it is shown that LOreal dominated the other three companies with an overall score of 3.40.


Financial Analysis

Liquidity Ratios
Ratio Current Ratio Quick Ratio Formula Current Assets Current Liabilities Currrent Ass. - I nv . Current Liabilities Year 2007 Year 2006 1.49 0.92 1.51 0.98

As we can see in the above table, Current Ratio shows that the capacity of Estee Lauder to pay its short term obligations decreased .02 from year 2006 to 2007. However, this doesnt mean that the organization is already at a losing state because a ratio that is greater than 1 means that there is more than enough liquid assets to pay off the maturing debts. The companys ability to meet its short-term obligations using its most liquid assets decreased from 0.98 to 0.92. A quick ratio lower than 1 means that the companys assets that are ready sources of immediate cash are not enough to cover their maturing debts.

Leverage Ratios
Ratio Debt-to-Total Assets Ratio Debt-to-Equity Ratio Formula Total Debt Total Assets Total Debt Year 2007 Year 2006 0.71 2.44 0.86 0.57 1.33 0.27

Total Stockholder's Equity Long term Debt-toLong term Debt Equity Ratio Total Stockholder's Equity

From year 2006, Estee Lauder Companies, Inc. has become more levered there becoming more dependent on borrowings for its financing operations. The increase of 1.11 on the Debt-to-Equity Ratio means that the funds that were used to finance operations from borrowings increased. We can see from the ratios how the company increased its borrowings from outside creditors as source of financing.

Activity Ratios
Ratio I nv entory Turnov er Total Assets Turnov er Formula Sales I nv entories Sales Total Assets Year 2007 Year 2006 8.22 1.71 8.44 1.71

Estee Lauder Companies, Inc. has high inventory turnover for the 2007 and 2006 periods. This implies that they were having strong sales that time even though the ratio decreased. The other ratio shows that efficiency of the company in converting its assets to generate revenues remains constant.

Profitability Ratios (in percentage%)

Ratio Net Profit Margin Return on Assets Return on Equity Formula Net I ncome Sales Net I ncome Total Assets Net I ncome Year 2007 Year 2006 6.38 10.89 37.46 3.78 6.45 15.05

Total Stockholder's Equity Net I ncome Earnings per Share No. of Common Shares Outstanding


The percentage increase of the Net Profit Margin shows that Sales, which is converted to Income after considering the costs, has increased. This also means that the company has better control on the cost. The increase in ROA and ROE shows that the management is efficient at using its investments to generate profit. Moreover, the increase in ROE reveals that the company generates more profit using the investments of the shareholders.


Net Sales Growth (in millions)

Year 2007 2006 2005 2004 Sales 7,037.50 6,463.80 6,280.00 5,741.50 % Percentage Change in Net Sales 8.88 2.93 9.38 -

Having this trend of increasing sales is favorable for the company. As we can see in the table, even though the increase in 2006 fiscal year dropped from 9.38 to 2.93, still, the company was able to cope up and was able to lift the increase to 8.88. The downfall of percentage change in year 2006 was caused, maybe, by the decreased sales on fragrances products and other factors like difficult retail environment.

Net Income Growth (in millions)

Year 2007 2006 2005 2004 Sales 449.20 244.20 406.10 342.10 % Percentage Change in Net Sales 31.31 (28.62) 18.71 -

As evidenced by the Sales Growth Ratios, theres a decrease in sales specifically in the year 2006 and that is one reason for the negative change in net sales for the 2006 period. Another factor is the value of discontinued operation, net of tax, in that period that amounts to $80,300,000. Despite all of that, the company is showing great efforts of overcoming the problems. Estee Lauders 2007 percentage change in net income displays a remarkable performance. The companys focus and efficiency should be consistent to have a favorable impact on the financial success for the succeeding years to come.


Industry Analysis 1. What is/are the product/s or service/s? The cosmetics industry offers different products under four major product lines. A. Skin Care 1. Moisturizer 2. Cream 3. Lotion 4. Cleansers 5. Sunscreens 6. Self-tanning products B. Make Up 1. Lipstick 2. Lip gloss 3. Mascaras 4. Foundations 5. Eye shadows 6. Nail polishes 7. Powders 8. Compacts 9. Brushes C. Fragrances

1. Perfume sprays 2. Colognes 3. Lotions 4. Powders 5. Creams 6. Soaps D. Hair Care 1. Hair Color 2. Shampoos 3. Conditioner 4. Finishing Spray A. What function does it serve? These products, basically, help consumers to attain a level of confidence by satisfying their needs to look good and feel good. B. What are the channels of distribution? The players in the industry sell their products principally through limited channels to complement the images associated with their branches. These channels reach across the globe through upscale department store, specialty retailers, upscale perfumeries and pharmacies and prestige stores and spas. Their products may also be sold in free standing company owned stores and spas; also, in their own authorized retailers website. Cosmetic products seem to get everywhere for you can also find their product at cruise shops, on television marketing channels and in flight duty-free products. It has also expanded its channels over the internet that reached its customer worldwide.


2. What is the industry size in units or in dollars? The industry size in dollars is $156,162.1 (in millions). A. How fast is it growing? Due to modernization and fast technological advancements, the industry is continuously moving forward through vast research and improvements. B. Are products differentiated? The products are differentiated because each product component varies, comes under different categories and brand names and distinguishable among others. C. Are there high exit barriers? Yes, there are high exit barriers for the companies have invested specialized equipment that is used in producing beauty products and fragrances that needs to be sold. Also, they spent large amount of money for fixed cost such as research and development, selling and general administrative expense not easy to let go and put into nothing. The liquidation of their companies also takes a span of time settling all things. D. Are there high fixed costs? Yes, the Industry spent so much on fixed costs such as Research and Development costs, and Selling, general and Administrative costs. 3. Who are the major competitors? Estee Lauder major competitors are LOreal, Proctor & Gamble, Unilever, Colgate Palmolive, Avon, Alberto Culver, Revlon and many other competitors that are competing worldwide.

A. What are their market shares?

Market Share based on Revenues 2.42 7 5.61 5 7.84 4 4.14 6 10.07 3 43.69 1 0.85 8 25.39 2

Company Alberto-Culver Avon Products Colgate-Palmolive Estee Lauder L'Oreal (Euros) Procter & Gamble Revlon Unilever (Euros) TOTAL

Revenues 3,772.00 8,763.90 12,237.70 6,463.80 15,729.30 68,222.00 1,331.40 39,642.00 156,162.10

The table above shows the companies respective market shares based on revenues in the cosmetics industry. These values are stated in millions. B. Is the industry consolidated or fragmented? It is a consolidated industry; an industry wherein few large firms dominate the market and in position to set prices for its products. 4. Who are the major customers of the industry? The main target consumers of the industry are men and women, who are in middle to high level of the society aging around 20-30 years of age around the world. A. Are they powerful? No, because they dont have control over the pricing of the companies who belong in the industry. B. What gives them power? 5. Who are the major suppliers of the industry?


The industry has no major supplier because the companies themselves own most of the ingredient and material used in making the product. Only those who are non-value adding chemicals and some packaging are purchase outside. A. Are they powerful? No, suppliers do not have any power in the industry because they do not provide the majority of supplies needed. B. What gives them power? 6. Do significant entry barriers exist? Yes, significant entry barriers exist in this industry. A. What are they? Different governmental and non-government organizations and agencies, together with other law making body that regulates businesses, imposes policies and regulations to be strictly followed by the well established companies in the industry. Moreover, having high capitalization is a major requirement. B. Are they effective in protecting existing competitors, thus enhancing profits? Yes, they are effective in protecting existing competitors like the government its agencies, policies and standards. Those regulate the illegal and unregistered business practices and as well as using other products secured with intellectual property rights, patent and the like. 7. Are there any close substitutes for the industry products or services? No substitutes are available for the industry products and services.


A. Do they provide pressure on price change in the industry? 8. What are the basic strategies of competitors? Competitors in the same industry are diversified with many brand names and wide range of products. Massive marketing efforts such as direct selling, advertisement through internet, and sending sales representatives to different geographic areas are employed. In addition, competitors are also implementing market development and brand innovation strategies. B. How successful are they? They are successful in implementing their marketing strategies and the company was able to successively increase its net sales and its geographic revenue analysis. 9. To what extent is the industry global? They are competing globally to an extent that they are promoting and selling their product worldwide; and are able to maintain their position in the industry. Moreover, they have acquired a different brand name which has a capacity to compete in the continuously growing industry. A. Are there any apparent advantages to being involved in more than one country? Yes, because it will be well known to all customers for users and not users of cosmetics products. It also helps to increase their market share and promote the brand. 10. Is the industry regulated? Yes, it is regulated by Foods and Drugs Administration (FDA). A. What influence do regulations have on industry competitiveness?


The regulations set by the Food and Drugs Administration ensures that products being offered in the market are not harmful. It influences the industry competitiveness by ensuring the quality and safety of the consumers. VI. Alternative Courses of Action a. Advantages and Disadvantages ACA 1: Strengthen the means of distribution thru increasing channels like mallbased specialty stores. Advantages The company will be exposed to new markets and will reach a wide range of potential customers that will supply more revenue and therefore produce greater profit. Consumers will have more choices on how to acquire products that provides best convenience for them. Disadvantages Additional expenses will be incurred. The company will have to purchase additional assets, hire personnel and pay flotation costs and other expenses. Exchange rates and Economic stability of the country that is subject to expansion is uncontrollable.


ACA 2: Continually expand product promotions thru advertisements. Advantages Fragrance products may attract more markets that will eventually improve revenues of such products and improve the companys overall profitability. It will reach a wide range of potential customers with their catchy advertisements, thus increasing its market share. Can make positive impacts on the companys products. Well executed and targeted promotions can trigger quick sales.

Disadvantages It will yield to higher General, selling and administrative expenses that includes Advertising and promotion costs. Promotions have shorter impact on the customers. There is risk regarding the investments and costs employed, and also uncertainty as to effects and impacts on customers perception on the products.

ACA 3: Development of new cosmetic products for men and women Advantages Consumers will have more choices on products that suite with their preferences. This strategy may result to development of new product that may be a potential solution to solve the declining sales of fragrances.


Disadvantages Another set of expenses will be incurred by the company specifically in research and development costs of new fragrance product. There is a possibility that consumers preferences on fragrance will not be achieved by the company. b. Decision Matrix
STRATEGIC ALTERNATIVES Strengthen the means of Continually distribution thru expand product increasing promotions thru channels like malladvertisements. based specialty stores. WEIGHT RATING* SCORE RATING* 0.15 2 0.30 2 0.20 2 0.40 3 0.10 2 0.20 3 0.10 3 0.30 1 0.15 3 0.45 2 0.15 0.15 1.00 2 3 0.30 0.45 2.40 2 3


Development of new cosmetic products for men and women

CRITERIA 1 Ease of Implementation 2 Cost-Benefit Criterion 3 Short-term Affectivity 4 Long-term Affectivity 5 Building Competitive Advantage Impact on company's 6 performance 7 Potential impact on Customers TOTAL

SCORE RATING* 0.30 1 0.60 2 0.30 1 0.10 3 0.30 3 0.30 0.45 2.35 3 2

SCORE 0.15 0.40 0.10 0.30 0.45 0.45 0.30 2.15

*note: 1=not favourable, 2=reasonably favourable, 3=highly favourable



Recommendation The Three Alternative Courses of Action indicated market penetration, forward integration, product

development, diversification, or combination strategies are the most appropriate strategies for the company, thus the ACA1 are convincingly suitable strategy for the company. Strengthen the means of distribution thru increasing channels like mall-based specialty stores. may direct them to become the leading manufacturing company as they will be exposed to more markets that will eventually have positive impacts like having improved revenues. VIII. Detailed Action Plan
Department/Person Responsible Marketing Department

Activity I mplementing v arious promotions and adv ertisements Do a market research

Timetable Jul-Sept Jul-Aug

Expected Results I ncrease in Rev enues and Customer Loyalty Know customer preferences

Product Dev elopment Create a prototype of the product dev eloped Market testing for the new product I ntensify Marketing Efforts for Christmas Season Cost Analysis

Research and Dev elopment Production and Operations Sales Department Marketing Department Finance and Accounting

Ensuring the quality Aug-Sept and design of the new product Oct -

Nov -Dec Product Ev aluation Dec I ncrease in Rev enues Determination of a sound inv estment and financing decisions.