Elizabeth Arden: Executing Global Supply Chain Re-engineering Harvard Case Solution & Analysis

Elizabeth Arden: Executing Global Supply Chain Re-engineering Case Solution


Elizabeth Arden established in 1910 in New York City, it is considered as one of the world’s leading cosmetic brand and prestige perfumes with a network in over 90 countries worldwide. Company’s total net sales increased tremendously in 2007, the major contribution to these additional sales was from North American fragrances, international businesses, and branded skin care and color cosmetics.

The key reason for this success was innovation in their product line that expaned and strengthened their global market. The company desired to keep this pace of progress for next 3 years. The company offered more than 400 cosmetics brands to retailers in the United States, which include department stores, mass retailers, and international retailers. The company is highly committed to its core beliefs, which are continuous innovation with quality, and to provide value added services to retailers.


Pierre Pirard took charge at Elizabeth Arden as a senior vice president of Global Supply Chain, with a lot of challenges. He was hired to make some necessary changes in supply chain of the company in order to make the system more effective and efficient. From the current situation, he was aware of the threat of additional fixed costs for logistics and distribution of the product.

The first problem he faced was the issue of product and operational cost due to the manual systems used by employees. This consumed more time in distribution and supply of products by current employees and did not allow to make strategy sources for how such product would be executed under less time and cost of operation. According to the current result, if this process would be maintained in future, then it could suffer a huge loss as compared to other selected industries.

The second problem was the disturbed organizational structure of the company because the current infrastructure composed of a decentralized organization under no hierarchy of management. Therefore, the current situation shows that every employee was treated in his own way and thus, indicates that the whole operational would suffer a severe damage if such an impact would not be overcome.

The third problem was the growing number of individual suppliers, because it increased the level of additional cost through sources from each supplier. Due to some supplier situated far away, additional costs incurred because of transportation and these costs coupled with a decrease in sales’ volume.

Elizabeth Arden’s fourth problem was the concern of shareholders caused by a change in the process of operations through a re-engineering phase. Therefore, from the following results; Pierre Pirard wanted to know how these changes would implement in a proper way, he wanted to retain shareholder’s interest in the company by boosting the profits and sales volume through the proposed re-engineering phase of production. Although, the additional cost to implement new process would if they want to achieve the optimum result of operations.

It is concluded from the case that, when the result was determined by Pierre Pirard, it showed that the current operations was not favorable for the company due to high level of distribution and logistics cost associated with it. The case indicates that the change would require in form of organizational structure, the operations of controls, and the way shareholders react to the process and internal controls of the company.

Situation Analysis

It has been identified from that case, that the current situation was not favorable for the company internally, as well as externally. The following situation analysis shows how the company performed both internally and externally, what are the current opportunities, and threats under the situation, and what are the company’s strength and weaknesses under the current scenario..........

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