44012475 Revlon Case Study

April 7, 2023

| Ameer Taimur Ali, Muniba Shoaib, Natasha Farooq, Shumail Arzu

Strategic Management

Revlon, Inc

R e v l o n , I n c - 2 0 0 7P a g e | 2

Introduction

Revlon is an American cosmetics, skin care, fragrance, and Personal Care Company founded in

1932. Revlon operates as one of the world's leading cosmetics companies and markets its

products in over 100 countries under such familiar brands as Revlon, Color Stay, Age Defying,

Almay, and Skin-lights.

History

In 1932, Revlon was founded in the midst of the Great Depression. Two brothers named Charles

and Joseph Revson, they had an idea to create nail polish using pigments instead of the normal

dyes. They believed this would make the polish last longer and would allow for a larger variety

of colors. To come up with their formula, they partnered with a local chemist named Charles

Lachman. Using the Revson name, plus an "L" for 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 offered an entire manicure line, and added

lipstick to the collection. In 1994, The Color-Stay line of long-lasting cosmetics was introduced

with the debut of 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 for Revlon. In 1985, Revlon was sold to a subsidiary of

MacAndrews & Forbes Holdings. In the 1990's, Revlon revitalized its cosmetics business and

strengthened its industry leadership role. Revlon introduced the first transfer resistant lip color

which led to a full Color-Stay TM Collection of transfer-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 Affordable Price”

R e v l o n , I n c - 2 0 0 7P a g e | 3

Characteristics Of A Effective Worded

Vision Statement

Revlon

Graphic Paints a picture of the kind of company that

management is trying to create and the market

positions the company is striving to stake out

Directional Is forward looking ;describing the strategic

course that management has charted and the

kinds of product/market/technology/customer

changes that will help the company prepare for

the future

Focused Is specific enough for managers to provide

them with guidance for making decisions and

allocating resources

Flexible Is Not-Once-And-All-Time-Statement, the

directional course management has charted

may has to be adjusted as

product/customer/technology/markets

circumstances may change

Feasible In within the realm of 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 of

stakeholders(especially shareowners,

customers & employees )

Easy to communicate Is explainable in 2-3 minutes and ideally can

be reduced to a single, simple & memorable

R e v l o n , I n c - 2 0 0 7P a g 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 Of Brand”

Mission Statement Evaluation Matrix

Organizatio

n

Customer

s

Product

s or

Services

Market

s

Concern

for

Survival,

Growth,

Profitabilit

y

Technolog

y

Philosoph

y

Self-

Concep

t

Concer

n for

Public

Image

Concern

for

Employee

s

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)

factor into consideration Revlon needs a new mission statement which primarily focus on CSR

topics like concern for public image, self concept, concern for employees etc and among other

R e v l o n , I n c - 2 0 0 7P a g e | 5

factors 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 for superior quality services. Provide secure & challenging work

environment for all employees. Meet everyday needs for nutrition; hygiene and personal care

with brands that help people feel good, look good, and get more out of life. Total commitment to

exceptional standards of performance and productivity, to working effectively, 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 efficiency and use of capital assets

Quality manufacturing standards and having ISO-9000 certification

Strong Brand recognition

The company tries to introduce new products

Produces products for all type of women, young, trendy, health conscious and older

women

Strong Social Responsibility programs

Large mass merchandisers

Great operating efficiency use of capital assets

Continues new product development

Big share of share of sales in the foreign market (43% in 2006)

R e v l o n , I n c - 2 0 0 7P a g e | 6

Net sale in 2007 increased from 2.6% after suffering a loss in 2006

The baby boomer chunk of the population tends to be brand loyal

Joint venture of Revlon and Pacific World Corporation into establishing a new line of

nail and nail care products

Sales of 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 of $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 layoff of 15% before Kennedy

in 2000 then another reduction of 8% when he took charge

Higher prices than competitors

Decrease in sales by 1 million (from 2005 - 2006)

High net losses in 2006, which resulted because of the discontinuation of Vital Radiance

and because of 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 of this product line

was estimated to be $110 million

Employ layoff by 8% duing 2006 – 2007

Less diversified products compared with competitors

Constant organizational restructuring

Lack of financial resources

Large amount of advertising expenses

Decrease in current assets and increase current liabilities

Revlon, Inc. is a holding company with no business operations of its own and is

dependent on its subsidiaries to pay certain expenses and dividends

R e v l o n , I n c - 2 0 0 7P a g 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 of personal care products increased form 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 of disposable incomes

Globalization can enhance company’s productivity if the constant restructuring stops

Threats

Racial and ethnic changes in US market

Intense competition (so many brands offering the same stuff, even the competition for

African American market has increased with the entry of brands like Fashion Fairs and

cosmetics lines launched by Patti LaBelle)

Some competitors of multinational companies are offering more than just skin care and

makeup products

Disposable income of Americans decreasing

Consumers’ concerns about product safety and CSR activities

Major retailers reducing inventory levels due to recession

Decrease in the value of dollar

Ageing US population

R e v l o n , I n c - 2 0 0 7P a g 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 for every $1 of CL there is $1.32 of CA.

This means that the company is managing its short term obligations quite well. For a creditor this

value would be quite satisfactory 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 of its inventory. This ratio is below 1 which refers to the fact that the

company relies quite a lot on its inventory to meet its short term obligations. The figure is below

1 which signifies a little trouble for the company. The company may not be doing great but is

definitely not the worst one in the industry.

R e v l o n , I n c - 2 0 0 7P a g e | 9

Leverage Ratios

Debt to Equity Ratio:

= Total Debt/ Total Stock holders’ equity


-119.48% 4: 1 or 40% 58.2%

Analysis: The negative value indicates that the share of 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 for the company.

Activity Ratios

Inventory Turnover

=Sales/ Inventory Of Finished Goods


3.18 times 3.7 2.1

This ratio states the number of 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 for 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, following Avon’s after 3.7.

Total asset turnover

R e v l o n , I n c - 2 0 0 7P a g e | 10

= Sales/total assets


1.65 times 1.8 1.5

Analysis: This ratio includes all the categories of assets, namely; receivables, and fixed assets.

The lower the ratio the sluggish the company’s sales, again this value is a satisfactory 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 of Avon that has collected its receivables 14.6 times throughout 2008. Revlon’s low

turnover could be because of the bad debt.

Day’s sales in inventory


114.6 days 98

Analysis: There is considerable difference between the amounts of Revlon’s DSI and its

competitors. Because of a higher value the company’s efficiency has been hindered. This meant

the company is taking more days to sell off its inventory as compared to its rivals in the industry.

Profitability Ratios

R e v l o n , I n c - 2 0 0 7P a g e | 11

Gross profit margin:

= Sales – CGS/sales

2008 Revlon Avon Etee Lauder

1346 – 491/ 1346 = 63.5% 64.8% 76.79%

Analysis: There is a margin of 63.5% for the company to cover its operating expenses and still

yield a profit. As compared to its rivals it’s not doing well.

Operating Profit Margin

= EBIT/Sales

2008 Avon Eeste Lauder

155m/1346m = 11.5% 13.10% 15.31

Analysis: The profit left off before 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 Profit Margin:

= NI/Sales


57.9m/1346m =4.3% 8.18% 5..98%

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 before the year 2007 were in negative because of the

negative income

ROA

R e v l o n , I n c - 2 0 0 7P a g e | 12

= NI/TA


57.9/813.4 = 7.11% 14.4% 10.87%

For every one dollar of assets the company yields a profit of $0.0711which is not exactly a good

sign and the amount of profit generated from total assets after tax and interest is quite low.

ROE:

= NI/Total Stockholders’ equity


57.9/(1113) = (5.20)% 129.6% 26.73%

Analysis: The per dollar profit for 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.

Price Earnings Ratio

= Price/Earnings per share

2008 Revlon Avon Estee Lauder1.13 7.88

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

Growth Ratios

Sales

R e v l o n , I n c - 2 0 0 7P a g e | 13

= P2 – P1 / P1 * 100

2008 Revlon Amount in $ Avon Estee Lauder1346-1367/1367 = (1.5)%

(21) m 7.56% 11.03%

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

Net Income

2008 Amount in $ Avon Estee Lauder

57.9 – (13.1)/13.1 =502%*

71m 64.9% 5.47%

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

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

Matrices Internal Factor Evaluation Matrix for Revlon

Key internal Factors Weigh Rating Weighted

R e v l o n , I n c - 2 0 0 7P a g e | 14

t ScoreStrengths1. $25 million spend on CSR program 0.05 3 0.152. Spend $24.4 million on R&D 0.06 3 0.183. Aggressive Advertising worth 120 million 0.09 4 0.364. Great operating efficiency and use of capital assets 0.05 4 0.25. Quality manufacturing standards and having ISO-9000 certification

0.04 4 0.16

6. Strong Brand recognition 0.06 2 0.127. The company tries to introduce new products 0.04 3 0.128. Produces 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 0.1510. 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 0.143. High prices than competitors 0.09 1 0.094. Decrease in sales by I million 0.04 1 0.045. 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 0.048. Less diversified products compared with competitors 0.05 1 0.059. Constant organizational restructuring 0.04 3 0.1210. Lack of financial resources 0.06 1 0.06Total 1 2.43

External Factor Evaluation Matrix for Revlon

R e v l o n , I n c - 2 0 0 7P a g e | 15

Key External Factors Weight


Opportunities1. Increase in US teen market 20 million by 2010 0.03 3 0.092. Growth in Hispanic population by 2010 0.07 4 0.283. Asian markets still 60% uncovered by Revlon 0.09 4 0.364. Increase in online retailing 0.03 3 0.095. 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 0.128. Expansion in Hair coloring market among youth 0.02 3 0.069. The young migrants to America are increasing 0.03 4 0.1210. Personal care products usage is increasing 0.04 3 0.1211. Latin America represents a growth opportunity 0.05 3 0.1512. Older age women entering into the cosmetic industry 0.07 4 0.28

Threats Weight


1. Racial and ethnic changes in US market 0.04 1 0.042. Intense competition 0.08 1 0.163. Disposable income of Americans decreasing 0.03 2 0.064. 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 0.067. Ageing US population 0.04 2 0.088. Young age women are decreasing 0.05 2 0.1Total 1 2.67

R e v l o n , I n c - 2 0 0 7P a g e | 16

Competitive Profile MatrixRevlon Estee Lauder Avon

Critical success Factors Weights Rating Score Rating Score Rating ScoreAdvertising 0.21 4 0.84 3 0.63 3 0.63Product Quality 0.16 4 0.64 4 0.64 4 0.64Price competitiveness 0.06 2 0.12 3 0.18 3 0.18Management 0.09 2 0.18 3 0.27 4 0.36Financial position 0.09 2 0.18 3 0.27 4 0.36Customer loyalty 0.13 4 0.52 3 0.39 3 0.39Global Expansion 0.14 3 0.42 3 0.42 4 0.56Market Share 0.12 3 0.36 4 0.48 4 0.48Total 1 3.26 3.28 3.6

A SWOT Matrix For RevlonStrength Weakness $25 million spend on CSR program Extension of 87million debt by Mac Andrews; high

restricting cost

R e v l o n , I n c - 2 0 0 7P a g e | 17

Spend $24.4 million on R&D Long term debt 2.3 billionAggressive Advertising worth 120 million

High prices than competitors

Great operating efficiency and use of capital assets

Decrease in sales by I million

Quality manufacturing standards and having ISO-9000 certification

High net losses in 2006, because of the discontinuation of Vital Radiance & LTD.

Net sale in 2007 increased from 2.6% after suffering 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 layoff by 8%

Produces products for all type of women, young, trendy, health conscious and older women

Less diversified products compared with competitors

Strong Social Responsibility programs Constant organizational restructuringLarge mass merchandisers and drug stores Lack of financial resources

Great operating efficiency use of capital assets

Large amount of advertising expenses

Continues new product development Decrease in current assets and increase current liabilities

Big share of share of sales in the foreign market (43% in 2006)Strong Brand recognition

SO Strategies WO StrategiesIntroduce the products in untapped Markets. (S3,O3)

Target a New growing potential Market. (W4,O5)

ST Strategies WT StrategiesLaunch 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)

Opportunities Threats Asian markets still 60%

uncovered by Revlon

Long term debt 2.3 billion. In 2003 Mac

Andrews and Frobes Holdings Inc gave out $150

R e v l o n , I n c - 2 0 0 7P a g e | 18

million, later in 2006 an extension of $87million

debt by Mac Andrews was made;

Older age women entering

into the cosmetic industry

High restricting cost that amounted up to $29

million when David Kennedy was in command .

From the year 2006 – 2007. First there was a

layoff of 15% before Kennedy in 2000 then

another reduction of 8% when he took charge

Latin America represents a

growth opportunity

Higher prices than competitors

Personal care products

usage is increasing

Decrease in sales by 1 million (from 2005 -

2006)

The young migrants to

America are increasing

Expansion in Hair coloring

market among youth

Men also using the cosmetic

products

Sales of personal care

products increased form 428

to 499.4 in 2006 which

indicates a new trend

R e v l o n , I n c - 2 0 0 7P a g e | 19

Women in China, India and

middle East are rapidly

growing interest in

purchasing more cosmetics

Analysis:

R e v l o n , I n c - 2 0 0 7P a g e | 20

In the internal analysis matrix Aggressive Advertising worth 120 million is the major strength as

one can see that I have assigned .09 weights to it. The reason why this is the major 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 fulfill their business goal to earn

huge profits. The major threat for 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. If we look at the weighted avg. score of internal factors 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 performance.

In the external analysis matrix Asian markets still 60% uncovered by Revlon is the major

opportunity as one can see that I have assigned .09 weight to it. The reason why this is the major

strength, there are still markets where Revlon has not catered yet, by introducing their products

in untapped markets by which they can fulfill their business goal of earning huge profits. The

major threat for 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 benefit. If we look at the weighted avg. score of

external factors 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 performance 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 of 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 beneficial for them and they could easily reap the

benefit. By Target a New growing potential Market which is Women in China, India and middle

East has rapidly growing interest in purchasing more cosmetics to boost their sales which would

R e v l o n , I n c - 2 0 0 7P a g e | 21

be helpful 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 safety and CSR activities. They should Invest in R & D to

come up with better Products because there is Intense competition n they have suffered from

High net losses in 2006, because of the discontinuation of Vital Radiance & Long Term Debt

and one more reason for this failure is that Customers didn’t respond to it which resulted in

Negative impact $110 Million.

R e v l o n , I n c - 2 0 0 7P a g e | 22

Space Matrix

Environmental

Stability (ES)

Ratings Competitive

Advantage (CA)

Ratings

Price elasticity of

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 of

competing firms

-5.0 Product life 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 Profit Potential 3.0

Working Capital 1.0 Ease Of 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

R e v l o n , I n c - 2 0 0 7P a g e | 23

Analysis

From the above analysis and diagram we can conclude that the best strategy for Revlon is

competitive strategy which contains backward, forward and horizontal integrations, market

penetration, market development, and product development.

ES average is -20/ 5 = -4.00 IS average is +14/ 4 = +3.50

CA average is -17/5 = -3.40 FS average is +7/ 6 = +1.17

Aggressive

Vertical integrations.

Market penetration

Market development

Diversification.

Conservative.

Market penetration

Market development

Product development

Related diversification.

Defensive

Retrenchment

Divestures

Liquidation

Competitive

Vertical integrations

Market penetration

Product development

FS

ES

CA IS

R e v l o n , I n c - 2 0 0 7P a g e | 24

The Grand Strategy Matrix for Revlon

In the case study of Revlon we saw that the market is growing worldwide even in America the

young migrants increasing year by year but the competitive position of Revlon is not strong

because the competitors are Proctor & Gamble, Unilever, Avon Products, Inc’ which is very

strong and have popular brand names. Therefore 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 of these strategy is important for Revlon

Rapid market growthQuadrant II Quadrant I Market development Market development Market penetration Market penetration Product development product development Horizontal integration Forward integration Divestiture Backward integration Liquidation Horizontal integration Related diversification

Weak StrongCompetitive CompetitivePosition Position Quadrant III Quadrant IV Retrenchment Related diversification Related diversification Unrelated diversification Unrelated diversification Joint ventures Divestiture

R e v l o n , I n c - 2 0 0 7P a g e | 25

Liquidation

Slow Market Growth

Relative Market Share Position

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

Star Question Marks

Cash cows Dogs

Industry sales growth rate Revlon

R e v l o n , I n c - 2 0 0 7P a g e | 26

Internal-external matrix

1 2

3

4 56

Revlon

1.02.03.04.0

R e v l o n , I n c - 2 0 0 7P a g e | 27

Recommendations’

As we saw in the case study of Revlon which was actually written in 2007 that the company is in

great troubles. The financial position is also very weak and it generates losses in the recent years.

After applying the tools and techniques of strategic management our conclusion

is as follow.

1) The company should develop new markets, which is not tapped by the competitors.

2) The company should improve the quality of products as well as the price minimization

Efforts should be taken.

3) The company also needs to increase sales through increasing marketing efforts.

4) The other strategy option is the integration it may be forward, backward or horizontal

Integration.

5) The company should sell some unprofitable division.

6) The last option is liquidation. If the company fails to follow the above strategies then it

Should liquidate the business.

44012475 Revlon Case Study

Documents

Transcript of 44012475 Revlon Case Study