Many factors determine the effectiveness of a company. They are subject to research and analysis by both theorists and the managers themselves in the organization.
This has created many models that focus on ways to increase management effectiveness. Such a model is the 7- S model, representing performance and strategic management as a function of seven variables.
According to the model, the strategy is the overall package of actions that an organization plans to use its resources to achieve its goals.
The management skills and style are related to the staff, and the systems are all formal and informal processes and procedures necessary for the day-to-day management and business.
Culture is the shared values among employees and the identity of the company.
All of this will be analyzed in this case.
Presentation of the object of study
The case study will examine the model of the example of the cosmetic company “Astera Cosmetics” AD, which has as its main subject of activity the production and marketing of cosmetic products, essential oils and their end products, personal hygiene products, delivery, processing, production and trade in products and raw materials at home and abroad, domestic and foreign trade, domestic and international tourism, hotel, restaurant, freight forwarding, transport and engineering, impressionistic, translation, publishing, leasing, advertising, middle contractual, entrepreneurial, marketing, design consultancy, design and construction, rental and trade in real estate and real estate, representation and agency of local and foreign individuals and legal entities in the country and abroad, as well as any activity not prohibited by law.
Astera Cosmetics AD is a manufacturing company with a portfolio of cosmetic products. The company is marketing oriented with attention to the needs of the consumer. In addition to a marketing concept whose means of achievement are complex – generating profits at the expense of ensuring customer satisfaction, the Company is strongly focused on the economic efficiency of its operations.
The portfolio of Astera Cosmetics AD includes two main product groups, which are:
- wet towels.
The products are available on the European and World markets.
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The portfolio products are available in all retail chains in Europe – METRO, BILLA, HIT, Kaufland and Picadili and others.
Astera Cosmetics Romania realizes the production on the Romanian market. The products are available in BILLA, Carrefour, Cora, and Kaufland.
The Russian firm Dom Novye Tehnologii works with the Aster toothbrushes and wet towels on the Russian market. The company specializes in the distribution of oral care products and cosmetics.
The partner of Astera Cosmetics AD for distribution in the Kazakhstan market is the company “Lycomp Karaganda”, which is a leading company in the field of trade in perfumery and cosmetic products and owns its own distribution network with national coverage.
The company works under a contract with Aroma AD to export its products to other markets.
Analysis of the components in the 7- S model
The company is an independent production enterprise with no subsidiaries. The structure of the company is shown in the following figure:
The structure is linear, which provides control over the relevant line activities, as well as the availability of personal responsibilities by each of the managers and heads of departments.
In the company’s main markets, a strategy of focusing marketing efforts only on specific market segments and gaining a leading position in meeting specific consumer needs is applied. This is especially pronounced in the marketing approach of the company on the Bulgarian market.
The company’s marketing strategy is formed based on a serious analysis of marketing research data and information on marketing activities, while also taking into account the factors – product life cycle and competitor’s macro environment.
The effective marketing strategy and policy of Astera Cosmetics AD meets the following criteria:
The company evaluates and records the important characteristics of the targeted mid-market segment identified as strategic. It is geared to the specific needs of the target client by creating a visible competitive advantage for the products in their portfolio;
Purposefully works to maintain its strengths by optimizing its weaknesses and company specifics;
The company develops models of competition compliance, ie. develops options for effectively combating competition to retain its competitive advantage;
The company maintains high profitability with the chosen strategy to achieve the planned economic goals;
The company provides a harmonious marketing mix, offering high-quality products to the targeted market segments;
The company has a professional team that is motivated to perform its tasks and functions.
The goals of the company based on the marketing strategy are as follows:
- profit and necessary investments;
- market-product priorities;
- high-quality products;
- the leading position of the company in the industry for the European market;
- price targeting;
- distribution optimization
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Astera Cosmetics AD is a marketing-oriented company with a focus on the cost-effectiveness of its operations.
The projects of new products in the company’s portfolio are made based on studies of the needs and wishes of consumers in the defined strategic segments of the market, as well as following the trends of development of similar products by reliable and distinguished manufacturers in the industry.
The process of measuring the market situation, gathering ideas, evaluating them, and improving existing products is continuous.