'A Research Paper on Estee Lauder\r'

' often can be said for the family that gave us an array of fragrances, cosmetics, and app bel on the years. Esteé laudator Companies along with the its affiliates rush come a long sort from starting out as a bittie counter on Saks Fifth Avenue in New York City in the late forties.The eminent society grew out to become a market drawing card in the cosmetics market in the United States. With sales amounting up to $ 6 billion in 2006, the â€Å" quite an small” company that Joseph laudator and his wife started is a typical success story emulated the world over.However, intrigues and controversies be as the company that is still dominated by the extoller family at present faces a dilemma whether to directly face the conflicts head on or just hold on and do moving in the usual way.SituationIn February of 2001, a pro-Palestinian group led a boycott on all Estee Lauder Companies increases aft(prenominal)(prenominal) allegations of pro-Israel activities that were by means of with(p) by Ronald Lauder, the current CEO of Estee Lauder Companies. The boycott cost a decrease in the profits of the entire group of companies while at the aforementioned(prenominal) time regarding the pick up of the company as a whole because of the incident. Steps of remarketing strategies were d integrity by the company so as to scratch line the negative effectuate of the boycott on the cipher of the entire company.This was preceded by a long stand up effectual battle of Ronald Lauder with Vladimir Zelezny and the Czech res publica in 1999 which has resulted to a pay out to the Estee Lauder chief executive by the Czech businessman which incidentally was elected as senator of Czech Republic.In addition, Estee lauder is facing the pressures of answering claims that the ingredients in some of its cosmetics offerings are cancerous and should not be sold in the market. Likewise, the company in like manner has to address the growing return of ingrained al ternative cosmetics in the market that is behind eating up its market shares.ConflictThe boycott was standard by the public with mixed reactions. Most of the Islamic population adhitherd to the group that started the boycott and saw Ronald Lauder as an alleged Zionist who, though a businessman, is really supportive of the Israeli occupation of Palestine. The sway here is the legality and intent of Mr. Lauder to submit such statements without considering the fact that he represents a oversize multinational company and any social occasion that comes out of his mouth could affect the compass and impression on the company that he leads.On the other hand, the actions that the head executive made towards semipolitical issues are viewed by some groups, particularly by Pro-Israeli groups as an exercise if his right of free run-in and free actions. This was even answered by an anti-boycott which is geared to match the allegations that the chief executive of Estee Lauder did was th e appropriate thing to do.The primary conflict here not incisively the question of whether Ronald Lauder did something that would please a received group of people or not plainly the negative effects that the incident entailed on the image of the company, as well as Mr. Lauder himself. The effects can be exemplified by a of import decrease in the stock prices of Estee Lauder in the stock markets in 2001 which amounted to a continuous pessimistic descent and cost the company losses along the way.Estee Lauder’s marketing efforts have also been significantly affected by the perception towards Ronald Lauder. As a matter of fact, telecommunication hypothesiss of the company in Europe, RSL Communications went bankrupt the same year after the incident. The operations of the telecoms company are mainly establish in Europe and the United States.Further much, what happened in the media venture between Ronald Lauder and his Czech partner, Vladimir Zelezny resulted to a legal suit after the latter failed to release the endorse for the local network Nova which was under Lauder’s Central European Media Enterprises (CME). This further affected the image of the CEO and led to the bankruptcy of CME in 2000. This all the same was compensated by the damage fees that were awarded in promote of Ronald Lauder in 2003.Furthermore, the issue of Estee Lauder chance(a) customers over synthetic and toxic ingredients over their cosmetics is ane serious conflict that the company is trying unassailable to face. For instance, a report by Dr. Samuel S. Epstein, M.D., chair of the genus Cancer Prevention Coalition in Chicago, indicated in one of his reports that most of the products that Estee Lauder sells in the market at once contain certain carcinogens which could cause cancer through continuous use.He furthered that the products in particular that Origins released recently which claims to â€Å" optimise skin defense against skin age accelerators” have be en deemed confusing and that the marketing strategy used here by Estee Lauder clearly hides the truth to its clients.In the same study that was published by Dr. Epstein, he claims that ingredients such as Limonene, PEG-100, among others are known carcinogens all of which are present in the current product lines that the cosmetics company sells in the market. Also, the study includes the presence of Parabens and Bisabolol, both of which are known to disrupt endocrine functions of the body and flick skin respectively.With the growing market for more natural and animal-friendly cosmetics slowly eating up the market, Estee Lauder has to believe its current marketing strategy and invest more on the product development of its cosmetic product lines in order to cope up with the high growth in demand in the market.\r\n'