Organizational analysis of OPRAH Company across multiple assignments

Iman Adibazad

Strategic Planning & Implementation

STR/581

Mahesh Singh, MBA, PMP

Week 5-Implementation, Strategic Controls, and Contingency Plans

Cosmetics, toiletries and perfumes are an important of everyone's daily life, from use of deodorant and shampoo to make-up, skin care products and fine fragrances. Personal hygiene and beauty products are considered essentials today as are the use of products such as sunscreens and decay-fighting toothpaste.

One strategy for Oprah company, to which the management of the company looking for is internalization or extending its market. Following this decision company can export raw materials and beauty products outside of the U.S.

Strategic Management

Cosmetics and cosmetic raw materials produced for export outside the U.S. must meet the requirements imposed by each country in which they will be sold. When a product is to be sold in several countries, the most stringent requirements must be met. Therefore, products sold in foreign countries in addition to the U.S. must meet much more stringent requirements than products manufactured and sold only in the U.S. The most obvious difference is the requirement many countries have for pre-market approval or registration of product formulas.

Among the important differences between requirements for cosmetics in the U.S. And various other countries are the legal definitions of drugs and cosmetics and cosmetic product formula ted registration and approval requirements. Differences also exist among countries regarding prohibited and restricted ingredients, particularly color additives. So it is necessary for Oprah company management to first analyze the regulations of the country to which they want to extend their products and then plan to launch products accordingly.

Marketing Strategy

The second step of extension is to prepare the marketing strategy for the foreign country. For this purpose company needs to get information about the cosmetics demands and scope of their products. For example, there is an ever increasing demand for anti-aging products like anti-wrinkle creams as well as hair care and beauty products. Particularly in Asian countries, there is demand of whitening products. So the company can focus a quality anti-aging product.

Quality Standards

The international Organization for Standardization (abbreviated as "ISO") is a European-based organization that develops various standards. ISO 9000 is a set of documents aimed at providing a harmonized set of quality standards for manufacturing, service, government, and non-profit entities. Pressure to comply with ISO 9000 quality first came from European countries, where the standards originated. This pressure was directed at cosmetic raw material suppliers.

The EU played a decisive role in the early, rapid implementation of the ISO 9000 standards. A major factor for this was the desire to unify the 15 major European nations that form the EU into a single internal market. The ISO 9000 standards harmonized the conformity assessment system, giving customers confidence that products conform to all requirements.

Vision of Oprah Company involves its strategy outlook or provides direction enhancing decision making on allocating its resources to pursue this strategy which involves both the people and the capital..

Oprah Company must start by briefing in a couple of sentences what they desire to achieve in the next three to five years time span. This is accomplished and developed by performing and conducting analysis such as market analysis, competitor analysis and identifying the opportunities that lie ahead in front of Oprah Company. Moreover Oprah needs to determine what it will take to achieve success in the next few years and hence validate the vision and mission statement accordingly.

It is well-known saying that Strategy is a precursor to tactics which means that if Oprah and The Own formulates and develops an effective strategy then it gives to way to good marketing tactics and assurance of success right from the start of the year. This can be done by clarification of responsibility of delivery and bringing or involving the entire team together. The team is bound to provide additional ideas and insight to the Oprah Company by working through the process together and developing detailed understanding of the business objectives. Communicating to employees and making a network to validate the business is essential to develop the vision and mission statement more accurately and precisely. Capturing the key points on a single note and distilling the thought process to recognize what is important for Oprah and The Own is another way to validate the business values.

External and Internal Environmental Analysis

Cosmetics industry has been one of the most profitable industries for decades. Women desire for beauty traced back to ancient Egypt, Rome and Greece has led to development of many cosmetic companies all over the world. The cosmetic, beauty supply, and perfume store generating $10 billion dollars revenue every year (Hoovers.com) with average 5.4% growth rate annually through 2010 (freedoniagroup.com). Hairdressing services have proven to be recession-proof as for many customers have to maintain their hair style repeatedly throughout the year. For most women and men especially in the U.S., using beauty product and hair services consider necessity as it enhances their appearances for personal satisfaction and maintaining a professional appearance in a business setting.

The receiving department of the cosmetic manufacturer must ensure that the delievered goods are of the quality specified by the purchase contract. This is done through various inspection and testing policies. In the incoming raw material is of high quality, extensive inspection and testing is not necessary.

Change Management

The company will be facing several types of changes like, change in consumer's perception and preferences as the foreign country consumer choices and requirement will not be the same as of U.S. consumer. Secondly regulations will be different. To succeed, planned change advocates such as Bennis, Peters and Addison (1993) indicate that leaders increasingly need to be attuned to the effort required to effect significant organizational culture change. They challenge management to understand that "Cultures don't turn sharply with the pages of the calendar, they evolve" (p.88). From this, the researcher further posits a number of important issues.

First, as with many broad organizational changes, this evolutionary shift will necessitate (1) strong CEO leadership and (2) enthusiastic support by his/her management team as key success elements. To effectively implement such a transition likely requires that the CEO act as a key 'change agent'. Importantly, his or her role would be to help guarantee the transition from an existing organizational structure and culture to a more appropriate one that is carefully conditioned to accept change…without losing the POs unique image and the ability to deliver new/existing constituent services.