This executive summary deals with the Marilyn M. case.

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Table of Contents

Case Decision………………………………………………………………        x

Factors for Consideration

  • Marketing……………………………………………………….        x
  • Operation………………………………………………………..        x
  • Human Resource………………………………………………..        x
  • Economic Situation……………………………………………..        x
  • Risks…………………………………………………………….        x

Analysis

  • Alternatives……………………………………………………..        x
  • Criteria………………………………………………………….        x
  • Alternative Evaluations…………………………………………        x
  • Decision………………………………………………………...        x

Plan of Action………………………………………………………………        x

Exhibits……………………………………………………………………..        x


This executive summary deals with the Marilyn M. case.  The approach followed in this summary will be as follows: address the problem facing Nancy Featherstone, an Account Manager for Ashleigh Cosmetics Limited, discuss the relevant factor to take into consideration when analyzing the problem, present a full analysis for Ashleigh Cosmetics and finally to propose a plan of action for implementation.

Decisions Identification

The major decision that must be made when analyzing this case is whether or not, as the Account Manager of Royal Bank, you should increase Ashleigh Cosmetics’ operating line of credit from its current level of $2,500,000 to $4,500,000.  In conjunction with this decision there are numerous factors that must be considered.

Factors for Consideration

  1. Marketing

Current product lines of Ashleigh Cosmetics include eye shadows, lip-glosses, blushers and mascaras, all of which are sold under varying trademark names.  In addition, Ashleigh has not licensed any of their product development by other firms.  Many of Ashleigh’s products are sold during the Christmas season in gift sets, this results in fifty percent of their annual sales occurring during the months of August to October.  In order to flatten out Ashleigh’s cyclical sales pattern Michael Prowse, founder of Ashleigh Cosmetics, wants to develop a new lipstick product called Marilyn M, named after the famous American movie actress.

Pricing is a key feature of the Marilyn M. product line.  Currently Ashleigh Cosmetics offers both a low wholesale price and high markups with their products.  The new Marilyn M. lipstick will sell for $6, which is on the low side of the price scale, similar lipstick products can range between three to fifteen dollars.  With the introduction of the Marilyn M. product, Ashleigh diverges away from their previous selling scheme, offering retailers only a sixty-six percent markup.

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Ashleigh Cosmetics implements strong product placement displays along with advertisements in several high-circulation women’s magazine.  One promotional aspect of Ashleigh Cosmetics is that they do not guarantee any sales and share no part of the advertising costs of their retailers.  Ashleigh’s products are sold through 40 freelance agents in Canada and 180 in the United States.  In North America Ashleigh’s retail base is in excess of 12,000 outlets.  Possible expansion opportunities exist with a major Eastern based food chain, which has more then 500 outlets.

  1. Operations

All manufacturing processes of Ashleigh Cosmetics are preformed on site.  During the ...

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