Elizabeth Arden: Executing Global Supply Chain Re–
engineering Case Solution
Internal analysis
From the manager’s point of view, it is identified that some strengths and weaknesses has been
analyzed for the company. It is also determined that how these factors would impact the current
performance, customer’s retention as well as financial results for the future.
Strength
• The first strength of the company under the evaluation of the management’s perspective was the brand
reputation from historical results. If new changes would occur, then the company can manage
additional cost because of the existing customer’s retention under the brand image.
• The second strength of Elizabeth Arden was consistency in operational efficiency with independent
suppliers and their strong relationship with each other.
• The third strength was increase in shareholder’s interest, which increased equity shares value, to
reinvest into new operational activities in order to achieve optimal results.
Weakness
• Their biggest weakness was their over use of inventory and the delay it took to produce a particular
product. This consistently increased the level of cost and a decline in their sales volume consecutively
over a number of years.
• Their second weakness was a manual use of operations by the employees, which caused an in
increase in time, and cost of delivery to the customer and from the suppliers.
• Their third weakness was a lack of long-term contracts with each supplier, as it could hurt the
agreement and subject the deal to a termination due to any reason. This would also decrease
operational activities and reduce the sales volume because of this.
