Case assignment 2
My student I’d ends with number 7 ( Douglas college). Please use very simple English language. Please include examples. I have done the same assignment with SEPHORA COMPANY. I am attaching the file please check once. It was group assignment and now I have to do it individually.
11
AsthaJain Rameshkumar
Arshdeep Kaur Sahl
Gurnit Singh
Simrat Kaur
BUSI 2133 Organization Theory and Design 11/11 (20F-C-BC-5B)
Amr Shokry
29 November 2020
Introduction:
Sephora is a French worldwide retailer of beauty as well as personal care products. It was first launched in Paris in 1970. The company main headquarter is in Paris, France. Sephora sells products with its own private label and features around 3000 different brands which include skin care, fragrance, cosmetic, body, nail color, hair care and beauty tools (Fast Company, 2020). The Sephora Company is owned by luxury conglomerate LVMH as of 1997. The company has 2,600 stores in 36 nations. It allows testing of the products at store so that customers can choose the product at their best. Also, there are numbers of videos on their website which helps people to know about the brand, tech how to use products and tells which product suits best according to the skin type and skin problems. This why Sephora is gaining heights in market and is also evolved in one of the most powerful beauty chains in the world. The Sephora brand targeted on large segment of the customers and created the product for all skin tones and for the foundations they created light-as-air formulas that can be layered on the skin by designing in a unique way. The products of Sephora are lightweight and natural to use. That is why they attract customer from all around the world (Sephora, n.d.).
Mintzberg ‘s organizational Design:
We apply Mintzberg ‘s organizational 5 basic parts on Sephora company like in Top management include the mission and goal of company like the whole team make Sephora gold standard for makeup expertise and in store customer experience. To achieve this goal they do a lot of struggle such as team members are selected with great care because of the team spirit now. Sephora creates its own identity in the world of beauty [Shokry, 2020].
Middle management including operating core is directly involved in the production activities of products and services. Faculty staffs Operating support staff involves planning, designing, and making changes to operating core [Shokry, 2020].
The team overseas store systems and communications, digital tools and workload planning, all with a goal of helping our in store teams deliver the best possible experience to our clients. Task management is responsible for build up the communication with the objective of driving overall company objectives within our tone of voice .this role sets processes and guidelines in place to ensure communications are clear, concise and provide the right information to achieve the goals of our company [Shokry, 2020].
Mission:
Sephora’s mission statement is “we believe beauty is for each person to define and ours to celebrate. Together, we support and encourage bold choices in beauty—and in life. Our purpose is to inspire fearlessness.” Experience of Sephora is valued by how the customer is gaining from the company. The mission of Sephora is to implement the critical activities to attract customers. The following components are drawn from this mission statement:
1. Celebrating and supporting beauty together
2. Inspire fearlessness
3. Improvement of life
Sephora tries to give customers a broad variety of beauty products so as the customers have many options. The company acknowledges the importance of aesthetic appeal in the overall completeness of a person. Sephora achieves this by getting all the products to be simplified to meet their needs (“Mission Statement”, n.d.).
Sephora has built a name where the customers know that it is known for its interactive platform. It helps people to pick products based on their type and their choice. In fact, it has a community section that shows the epitome of the concerted efforts to advance beauty of the company. By doing this, Sephora helps people to show off their radiant shelves (“Mission Statement”, n.d.).
Vision:
Sephora’s vision is to make sure that the customer has the best experience with the products, an aspect it has been unequaled in this niche (“Vision”, n.d.).
Values:
“Sephora’s values include:
1. Passion
2. Innovation
3. Expertise
4. Balance
5. Initiative
6. Teamwork
7. Respect for all” (“Core values”, n.d.)
The first and the second value emphasize the company on the need for absolute commitment in whatever they do and third and fourth component emphasize maintaining a balance in all activities and applying top skills. By combining with independence, working together and respect for all is the success of Sephora (“Core values”, n.d.).
Strategy goals:
The current marketing strategy of Sephora is to focus on in-store and online store experiences. It also promotes brand involvement through web, social and mobile platforms. is they gather from their customers by their habit of shopping and then improve the functioning accordingly. To influence their sales, Sephora uses data to build confidence of the customer (Ogino, n.d.).
Porter’s competitive strategy:
After the analysis of Sephora, it indicates that the company operates a combination of Low-cost leadership and a Differentiation strategy. They sell their products in a broad range by keeping their price low and making changes to their products or services. For example, they had introduced different types of distribution channels- App store and internet. Their webpage was formed in the year 1999 that made limitless shopping opportunities for consumers. They have earned new customers from the success of their online store. It was supported by the importance of customer reviews, information about different elements, offers of products, and assistance from a specialist. They had a consistent name among women customers, but lately, they introduced a new campaign for male customers with the new brand- Lacoste men. For the comparison between other companies, Sephora had able to provide a premium quality service which made an impact on their competitors. They have also concentrated on the in-store location by putting the same amount of concern into their brand and having a reputation within the industry. In 2015, they announced two programs on their website about product information.
They have the most significant attribute which is the transactional function. They contact buyers by offering different products to satisfy them. They always make a deal for consumers by having a marketing strategy in mind. They had manufactured goods on the client’s needs and gives advice for customer skin (Tongyuwang, 2013).
Stakeholders of Sephora:
· Customers
Customers play a significant role by being the stakeholder of the organization. In Sephora, the customers expects the high quality of beauty products and services as these products would be applied on face, skin, hair and all the other parts of the body. So they must be extra careful while manufacturing these products. Also, the employees in the store must provide proper guidance to the customers as people may have allergies from different things and so all the ingredients must be carefully mentioned (Shokry, 2020).
· Employees:
Employees also play an important role by being the stakeholder of the organization. Every employee expects to be treated equally with others in terms of salary, their workload and many other factors. The employees must look after the customers properly with whatever their concern is and they must also report to their supervisors at the end of the end (Shokry, 2020).
· Owners and Stockholders:
Owners and Stockholders expect to earn financial return as they are the ones who are financially investing in Sephora (Shokry, 2020).
Type of Organizational Structure:
Organization structure defines the hierarchy of an organization and determines the way of information flow within. Sephora has functional division because of lack of horizontal linkage. Seeing the structure and working of a beauty and cosmetic company, Sephora is following up a centralized approach for its effective functions in the market. It is having a centralized and mechanistic structure following a hierarchy of corporate, management, assistant management, beauty advisors and sales associated in lowest level [Shokry, 2020]. The employees of Sephora are entitled and vested into vast culture. Employees and the business partners of Sephora is all about educating the clients and providing best customer service to our customers possible. A centralized approach of making decisions is followed where the main and primary decisions for company‘s main activities are taken by corporate and directors of first level. All the functional decisions are then going down with limited power of control and authority to manage and subordinates thereby. This means managers are few and subordinates working under them are more because of limited power. They use vertical communication because tasks are rigidly defined. In vertical communications, all the coordinate activities are done between the top and the bottom of the organization. Sephora is a traditional organization in which few teams and task forces and centralized decision making, vertical communication and reporting system [Shokry, 2020].
General Environment:
The General Environment of an organization alludes to a scope of forces or factors outside a company that may impact the operation and performance of a business. The effect of these dimensions is less direct when compared to a firm’s task environment. All the aspects of the general environment are considered by the managers so as to control, lead, organize and plan the operations of the organization. The general environment for Sephora would be the health minister closing the on campus classes for the students due to COVID 19. This thing will not affect the Sephora brand as they have no direct relation with the closure o schools (Utges, 2020).
Task Environment:
Task Environment straightforwardly influences the organization from achieving business objectives. It helps in recognizing the environmental factors liable for the achievement of the organization. Factors responsible for Task Environment are distributors, suppliers, customers and competitors. The task environment of Sephora was the all the shopping centres and stores were closed for a limited time due to COVID 19. Sephora faced a loss as the stores were closed and this impacted them financially (Utges, 2020).
Interorganizational Relationships:
Their inter-organizational relationship is cooperative which makes their company more efficient in the quality of service. They have an institutionalism type that puts attention on the desirability, structures, managing existence, and norms of their shareholders (Shokry, 2020).
Manufacturing and Service Technologies:
Sephora sells both skin care and beauty products and provides services to customers by helping the select the products based on their skin type and also sometimes they apply the makeup on customers. This helps customers in knowing about the product and product quality in a better way. This also helps them in know if the product suits on them personally. Sephora is the mix of both manufacturing and service organisation as they are manufacturing their own brand products as well as supply the other brands products (beauty and skincare) which are a way of servicing. Sephora offers a varied and wide range of products that meets everyone’s individual needs. Many of the products available at Sephora store are free of animal derived ingredients and natural ingredients (Shokry, 2020).
Core Technology:
The Core technology is the transformation procedure to deliver goods and services. They have focused on the digital transformation to become the number one in the beauty industry. “Digital and innovation have always been part of Sephora” (MARY BETH LAUGHTON). They concentrated on their customer needs and wants because, in order to be successful as a retailer, it is a requirement to provide the best services to their customers. They offer many types of tech alternatives to allow consumers for doing their shopping easily. Also, in the year 2015 Sephora innovation lab introduced and a team of administrators appointed from the product development, marketing had launch new contributions and technology for shopping in the store and online (Rayome, 2018).
It’s about directness for new ideas that require creating the right solutions which make something special and customer is unaware of. Sephora virtual artist, it is an AR tool that allows a customer to try different types of shades and other products sold at Sephora. It is a good example of their company because it has given assistance in real customer needs (Mckinnon, 2020).
Core technology: –
Core technology of Sephora is to manufacture as well as stock the products
Non-Core Technology: –
Non-core technology of the company is human resource, accounting, marketing, IT and many more departments.
Social Capital Activity:
There are many social capital activities that the Sephora organization is involved in. Firstly they welcome their customers very happily and warmly. Secondly, they help the customers in choosing the best product according to their skin type and according to their affordability. For example, whenever we go to Sephora, they are always ready to guide us in choosing the right makeup as well as skin care products according to skin type. Moreover, they even make their customers happy by giving them gifts on their birthdays. Furthermore Sephora provides free make up to the consumers after their purchasing from them. For example, one of our group members went to Sephora to buy blush and foundation on before party. After purchasing the product she asked for makeup to them. Then the Sephora professional put a beautiful makeup on her face for free (Jacobsen & Barnes, 2017).
Conclusion:
So, to conclude, we have briefly described about the different analysis of Sephora in this project.
References:
Jacobsen, S., & Barnes, N. G. (2017). On Being Social: How Social Identity Impacts Social Commerce for the Millennial Shopper. International Journal of Management Science and Business Administration.
“Mission Statement, Vision, Core values”. (n.d.). SEPHORA MISSION STATEMENT ANALYSIS. Retrieved November 28, 2020, from
Ogino, S. (n.d.). The “Makeup” Of Sephora’s Marketing Strategy. Retrieved November 15, 2020, from
https://www.annexcloud.com/blog/the-makeup-of-sephoras-marketing-strategy/
Rayome, A. (2018). How Sephora is leveraging AR and AI to transform retail and help customers buy cosmetics. Tech Republic.
Sephora. (n.d.). About Sephora. Retrieved November 14, 2020, from
https://www.sephora.com/beauty/about-us
Shokry, S. (2020). Interorganizational Relation.
Shokry, S. (2020). Services And Manufacturing Technologies.
Shokry, S. (2020). Stakeholders of Sephora.
Shokry, S. (2020). Type of Organizational Structure.
Tongyuwang, (October 31, 2013). Retrieved from
Utges, G. (2020, May 13). What is the difference between task environment and general environment? Retrieved November 28, 2020, from
https://askinglot.com/what-is-the-difference-between-task-environment-and-general-environment