Key Internal Factors

Strengths
2. Products are sold in more than 100 countries around the world
3. Can already manufacture, distribute and market in China
4. Has a strong research and development program evidenced by their
$25M spending on services and research that help women
5. Has a wide array of products
6. Continuously updates and releases new product lines
7. Products are sold at an affordable price
8. Use of website to sell products
9. Has awide array of nail enamel colors
10. Active in supporting women's health programs and other community efforts
11. Has a strong goodwill as the brand is known by many

Weaknesses
1. Consolidation and elimination of managerial and staff position to reduce cost
2. Frequent selling of product lines to reduce cost
3. High long-term debt
4. Lack of financial resources
5. Has a weak financial position as evidenced by the decrease in TA and decrease in TL
6. Net sales are lower as compared to competitors
7. Has less focus on improving financial position
8. Portfolio is less diversified as compared to competitors
9. Lost ground in the cosmetic industry due to diversification in health products
10. New brand was not welcomed due to high price
11. Products has shorter life as the company uses color instead of dyes
Total

Opportunity
1. Aging baby boomers are a significant market for cosmetic/personal care industry
2. Baby boomers have high levels of disposable income and are brand-loyal consumers
3. Women in the mature market are more willing to spend than ever
4. Potential for sales of personal care products around the world is excellent
5. Men already purchases personal care products
6. Market for hair has expanded with teenagers and adults wanting more vibrant coloring options
7. Women in China, India and Middle East are getting interested in buying cosmetics
8. Social media is used for promoting products
9. The makeover trend increases demand for beauty products
10. Baby boomer Americans are a significant market for cosmetic/personal industry
11. Value of dollar has dropped thus, benefiting cosmetic firms doing good in global business

Threat
1. High level of competition with other brands
2. Global ethnic-racial issues
3. Consumers' concern about product safety and use of animal testing by cosmetics companies
4. Older people tend to spend less on cosmetics
5. Gas prices are high and rising leaving American with lower disposable income
6. Major retailers reducing inventory levels
7. Retailers selling their brand of cosmetics
8. Competitors sell their products at a cheaper price
9. High availability of substitute cosmetic products
10. Environmental concerns are increasing
Total
Weights Ratings Weighted Score

0.1 4 0.4
0.04 3 0.12
0.05 3 0.15

0.05 4 0.2
0.07 3 0.21
0.05 3 0.15
0.02 3 0.06
0.02 3 0.06
0.07 4 0.28
0.03 4 0.12

0.03 1 0.03
0.03 1 0.03
0.05 1 0.05
0.05 1 0.05
0.05 1 0.05
0.1 1 0.1
0.07 1 0.07
0.04 1 0.04
0.02 2 0.04
0.04 1 0.04
0.02 2 0.04
1 2.29

Weights Ratings Weighted Score

0.04 3 0.12
0.03 3 0.09
0.05 3 0.15
0.06 4 0.24
0.07 4 0.28
0.05 3 0.15
0.06 3 0.18
0.04 2 0.08
0.03 2 0.06
0.05 3 0.15
0.05 3 0.15

0.07 3 0.21
0.05 2 0.1
0.05 3 0.15
0.05 2 0.1
0.07 3 0.21
0.03 3 0.09
0.03 2 0.06
0.05 3 0.15
0.03 2 0.06
0.04 2 0.08
1 2.86