Beauty & Personal Care Market Overview 2023
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Questions and Answers

What is the largest Beauty & Personal Care market in 2023?

  • Asia (correct)
  • South America
  • Europe
  • United States

Zago Milano was founded in 2017 and is the first indie brand made entirely in Italy.

True (A)

What percentage of responders engage with Beauty & Personal Care products online?

20%

What does the Balance Sheet represent?

<p>A snapshot of a company’s properties and debts at a specific date (C)</p> Signup and view all the answers

The total revenue for the United States Beauty & Personal Care market in 2023 is US$ ______ billion.

<p>97.8</p> Signup and view all the answers

Which of the following factors is most crucial for customers when choosing skincare products?

<p>Quality (C)</p> Signup and view all the answers

The Income Statement acts as a snapshot of the company’s value.

<p>False (B)</p> Signup and view all the answers

What does ROE stand for and what does it measure?

<p>Return on Equity; it measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.</p> Signup and view all the answers

Match the business stage with its focus:

<p>Pre-IPO = Growth and market entry Post-IPO = Operational stability and risk management</p> Signup and view all the answers

The ability of a company to meet its current obligations is referred to as __________.

<p>liquidity</p> Signup and view all the answers

Leadership KPIs in the compensation structure are only focused on profitability.

<p>False (B)</p> Signup and view all the answers

Zago Milano's mission is to make a difference in the world of skincare with ______.

<p>undermakeup</p> Signup and view all the answers

Match the following financial ratios with their descriptions:

<p>ROE = Net Income/Stockholder Equity ROA = EBIT/Total Assets ROI = Return on Investment ROS = EBIT/Sales</p> Signup and view all the answers

Which ratio measures how much operating profit is produced over sales?

<p>ROS (A)</p> Signup and view all the answers

Solvency refers to a company's ability to generate profits efficiently.

<p>False (B)</p> Signup and view all the answers

What is the primary focus of growth in a company?

<p>Increasing its size without compromising its existence and autonomy.</p> Signup and view all the answers

Which perspective is NOT one of the four interrelated perspectives in the Balanced Scorecard model?

<p>Innovation (D)</p> Signup and view all the answers

The Balanced Scorecard only focuses on monetary measurements.

<p>False (B)</p> Signup and view all the answers

What are the three major goals of the Boston Lyric Opera's mission statement?

<p>Produce high quality professional opera productions, develop future opera talent, promote opera appreciation through educational and community outreach.</p> Signup and view all the answers

The Balanced Scorecard helps to align employees towards the __________ goals and mission of the company.

<p>strategic</p> Signup and view all the answers

Match the following challenges faced by the Boston Lyric Opera with their descriptions:

<p>Financial pressures = Rising operating costs and reduced unrestricted corporate donations Theater transition = Moved to Shubert Theater to increase capacity Funding focus = Need to convert subscribers to donors Ticket sales = Covered less than 40% of operating expenses</p> Signup and view all the answers

What is one characteristic of the Balanced Scorecard?

<p>Integrates diverse strategic variables (B)</p> Signup and view all the answers

Performance management focuses solely on tangible resources.

<p>False (B)</p> Signup and view all the answers

What is the primary focus of Profit Planning Systems?

<p>Predicting financial inflows and outflows (B)</p> Signup and view all the answers

What is the primary purpose of fixing targets in a strategic plan?

<p>To provide clear objectives and metrics for measuring progress towards goals.</p> Signup and view all the answers

Performance Measurement Systems only focus on long-term outcomes.

<p>False (B)</p> Signup and view all the answers

What are the two levels at which strategy operates?

<p>Corporate Strategy and Business Strategy</p> Signup and view all the answers

SWOT Analysis helps identify a firm’s internal strengths and weaknesses relative to external __________ and __________.

<p>opportunities, threats</p> Signup and view all the answers

Match the following SWOT components with their definitions:

<p>Strengths = Internal capabilities that give an advantage Weaknesses = Internal limitations that may hinder performance Opportunities = External conditions that can be advantageous Threats = External challenges that may pose risks</p> Signup and view all the answers

Which of the following is NOT one of the Five Forces in market analysis?

<p>Financial Resources (C)</p> Signup and view all the answers

Effective systems only consider intrinsic motivations of employees.

<p>False (B)</p> Signup and view all the answers

What do performance measurement and control systems help balance within organizations?

<p>Organizational tensions</p> Signup and view all the answers

What is the primary disadvantage of specialization in market responsiveness?

<p>Reduced customer responsiveness (A)</p> Signup and view all the answers

Decentralized organizations promote slower decision-making at lower levels.

<p>False (B)</p> Signup and view all the answers

What determines what managers prioritize in an organization?

<p>Span of Attention</p> Signup and view all the answers

In centralized organizations, decision-making is concentrated at _____ levels.

<p>higher</p> Signup and view all the answers

Match the following organizational characteristics with their descriptions:

<p>Span of Control = Number of subordinates reporting to a manager Span of Accountability = Range of metrics a manager is responsible for Centralized Organizations = Focus on efficiency and control Decentralized Organizations = Promote responsiveness to customer needs</p> Signup and view all the answers

What is one of the roles of information in organizations?

<p>To support operational effectiveness (C)</p> Signup and view all the answers

Internal information primarily helps in assessing operations within the organization.

<p>True (A)</p> Signup and view all the answers

What type of organizations utilize narrow spans of control?

<p>Centralized organizations</p> Signup and view all the answers

Which of the following is NOT a component of the Inputs-Process-Outputs (IPO) Model?

<p>Feedback Mechanism (C)</p> Signup and view all the answers

The primary focus of process monitoring is to enhance innovation.

<p>False (B)</p> Signup and view all the answers

What does SWOT stand for in performance analysis?

<p>Strengths, Weaknesses, Opportunities, Threats</p> Signup and view all the answers

Managers communicate strategies and performance goals to external stakeholders like investors, suppliers, and ______.

<p>board members</p> Signup and view all the answers

Which focus area must managers consider when monitoring performance?

<p>Technical Feasibility (C)</p> Signup and view all the answers

Match the following components with their descriptions:

<p>Inputs = Resources required for production Transformation Process = Activities that convert inputs into outputs Outputs = Final products or services Feedback = Comparison of actual performance against expectations</p> Signup and view all the answers

Feedback is used solely for evaluating employee performance.

<p>False (B)</p> Signup and view all the answers

What is the purpose of decision-making in performance control?

<p>To determine what to monitor based on technical feasibility, cause and effect, cost, and innovation needs.</p> Signup and view all the answers

Flashcards

Profitability

The ability of a company to generate profit efficiently using its resources.

Liquidity

The ability of a company to meet its short-term financial obligations.

Solvency

The ability of a company to withstand internal or external events, particularly negative ones.

Balance Sheet

A financial statement that provides a snapshot of a company's assets, liabilities, and equity at a specific point in time.

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Growth

The ability of a company to increase its size without jeopardizing its independence.

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Income Statement

A financial statement that summarizes a company's revenues, expenses, and net income over a specific period.

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Return On Assets (ROA)

A measure of how efficiently a company uses its assets to generate profit.

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Return On Sales (ROS)

A measure of how efficiently a company generates profit from its sales.

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Mission Statement

A clear statement of the company's purpose, goals, and values.

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Objectives

Specific, measurable, achievable, relevant, and time-bound goals that support the mission.

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Strategic Map

A visual representation of the company's strategy, showing how different elements connect and influence each other.

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Parameters/Indicators

Key performance indicators (KPIs) that measure progress towards strategic objectives.

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Targets

Specific targets to be achieved within a set timeframe.

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Balanced Scorecard

A comprehensive framework for managing and improving company performance, focusing on four key perspectives: financial, customer, internal processes, and learning & growth.

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Alignment of Employees

A system for aligning employee actions to strategic goals, ensuring everyone is working towards the same objectives.

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Focus on Strategic Variables

Ensuring focus on the most critical factors that drive business success.

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Profit Planning Systems

Systems that help companies predict financial inflows and outflows. They assist in resource allocation, assessing revenue and costs, and establishing performance targets.

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Performance Measurement Systems

Systems that track and measure how well a company is achieving its strategic goals. They compare actual performance against predefined targets, providing feedback for adjustments and optimization.

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Corporate Strategy

Focusing on maximizing the value of a company's resources and choosing the right markets to compete in.

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Business Strategy

Focusing on competing within specific markets by offering unique products or services that stand out.

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SWOT Analysis

A tool used to analyze a company's internal strengths and weaknesses in relation to external opportunities and threats, helping to align its actions with its goals.

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Five Forces Analysis

A framework that explores market forces affecting a company's success, including customer power, supplier power, substitute products, new entrants, and competitive rivalry.

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Customer Power

Describes the power and influence customers have on a company's pricing and product offerings.

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Supplier Power

Describes the power and influence suppliers have on a company's costs and product quality.

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Turnaround and Performance Alignment

Compensation structured to motivate employees to achieve specific goals, especially during company recovery. Short-term incentives address immediate challenges, and long-term incentives prioritize future growth and stability.

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Adaptation to Business Stage

A strategy used when transitioning from a pre-IPO stage to a post-IPO stage, adjusting focus from rapid growth to operational stability and risk management.

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Role of Incentives

Compensation strategies that align with key performance indicators (KPIs) to motivate employees at all levels. This ensures that everyone is working towards shared goals.

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Building Organizational Resilience

Building a company culture that emphasizes accountability through governance reforms and incentives. This creates a resilient organization that can handle challenges.

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Beauty & Personal Care Market in 2023

The global Beauty and Personal Care industry is a major market, with Asia leading in 2023, generating a substantial revenue.

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Online Engagement in Beauty & Personal Care

A significant percentage of consumers engage with Beauty and Personal Care products online. This indicates a growing trend in digital marketing.

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Key Factor for Skincare Product Choice

Quality is the most important factor for consumers when purchasing skincare products, highlighting the value consumers place on effectiveness and quality.

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Market Trends in Beauty & Personal Care

The Beauty & Personal Care industry is influenced by wellness trends, Gen Z consumer behavior, and a shift toward personalized omnichannel experiences.

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Specialization in Organization

Organizing by functions like production, marketing, and finance enhances efficiency, cost savings, and quality but may slow down reacting to customer needs.

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Market Focus in Organization

Organizing by customer groups or market segments increases responsiveness to market changes but can lead to redundancy of specialized functions.

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Span of Control

The number of people directly reporting to a manager. A wide span means managing many subordinates, potentially leading to less individual attention.

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Span of Accountability

The range of financial and non-financial metrics a manager is accountable for. A broad span means responsibility for diverse areas, impacting their focus.

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Span of Attention

The level of priority given to specific areas by a manager. It depends on the organizational design, span of control, and accountability.

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Centralized Organization

Centralized organizations have a top-down approach with streamlined control, focusing on efficiency and strict policies.

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Decentralized Organization

Decentralized organizations empower lower levels with decision-making authority, emphasizing responsiveness to customer needs and faster action.

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The Role of Information in Organizations

Information is crucial for making better decisions and operating smoothly. Organizations with good data can set better goals, adapt to changes, and improve performance.

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Performance Metrics

Performance metrics track how well a company is meeting its goals or facing emerging issues. This helps to understand if things are going according to plan or if adjustments are needed.

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External Information Sharing

Managers communicate strategies and performance goals to external parties like investors, suppliers, and board members to help them make informed decisions.

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Inputs-Process-Outputs (IPO) Model

This model breaks down organizational processes into three stages: inputs (resources used), transformation (activities converting inputs into outputs), and outputs (final products or services).

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Cybernetic Feedback Model

This model uses feedback to control and adjust organizational processes based on the difference between actual performance and expected standards. It's like a self-correcting system.

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Decision-Making in Performance Control: What to Monitor

Managers choose to monitor inputs, processes, or outputs based on factors like technical feasibility (can it be measured?), cause-and-effect (link between actions and outcomes), cost (balancing info gathering and risks), and innovation needs (output-based or process-based control is more suitable).

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Applications of Information in Management

Information plays a crucial role in decision-making (planning and coordination), performance control (feedback and evaluation), and signaling (communicating organizational priorities).

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Output vs Process Monitoring

This model focuses on innovation by monitoring outputs (final products or services), while process monitoring is better for quality, efficiency, and safety.

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Study Notes

Performance Management

  • Assignment grade: 25% simple average of 2 assignments
  • Final exam (written): 75% consisting of essay questions relating to class theory, cases, and exercises
  • Final exam duration: 90 minutes
  • PMS (Performance Measurement Systems) consist of:
    • Convey financial information
    • Are formal
    • Used by managers (influence decision-making and managerial action)
    • Influence organizational activities

Business Strategies

  • Refers to how companies create value for customers while differentiating themselves from competitors.
  • Business models are used by managers as frameworks for competing.
  • Business goals are aspirations that managers set (economic/financial, market share, organizational learning/innovation).

PMS to Support Strategy

  • Balancing profit, growth, and control
  • Balancing short-term results with long-term capabilities and growth
  • Balancing stakeholder performance expectations
  • Balancing opportunities and attention
  • Balancing human behaviors' influences

Growth in Sales

  • Growth in sales leads to growth in assets
  • Example: 12,000 sales with a DSO of 90 days leads to 3000 receivables
  • Example: Increase in sales to 18,000 (1500 x 12) with a DSO of 90 days leads to 4500 receivables (+50%).

Assets and Liabilities

  • Current Assets: Cash, inventory, and receivables
  • Fixed Assets: Tangible (machinery, building, equipment), intangible (patents, rights), financial
  • Liabilities vs. Equity

PMS Objectives

  • Communicate strategic goals to the organization
  • Identify available resources for long-term goals
  • Specify cause-and-effect relationships between business goals and profit
  • Provide key performance indicators for growth
  • Establish and monitor short-term profit goals

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Performance Measurement PDF

Description

Test your knowledge on the Beauty & Personal Care market for 2023, including critical financial metrics and consumer engagement. This quiz covers key concepts like market revenue, ratios, and important factors influencing skincare product choices. Perfect for industry enthusiasts or business students.

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