MISTURA BEAUTY SOLUTIONSConlon Cash, Brooke McCarter,Sundeep Shamanur, and Cole Welch
OUTLINEIssue IdentitficationSituation AnalysisInternalExternalAlternativesRecommended StrategyImplementationRisks & Contin...
ISSUE IDENTIFICATIONHow can Mistura manage growth whileconsidering entering new chains andexpanding chain stores given fac...
INTERNAL ANALYSIS• Ottawa Small Business Acheivement Award• One of the Ottawa region’s top 40 under 40• PLM• 1085% sales g...
EXTERNAL ANALYSIS• $2.3 billion market size• Environtmentally consciousnessOpportunities• Manufacturer producing for anoth...
KEYSUCESSFACTORSSimplictyBrandImageNaturalVersatilityAnalysis
FIVE FORCESMODELCompetitionLowSubstitutesLowBuyersHighNewEntrantsHighSuppliersHighAnalysis
WHAT NEEDS TO HAPPEN• Examples:• Debt• Venture Capitalism• Public OfferingObtainCapitalAlternatives
ALTERNATIVE 1: SIX SIGMAPro Increased efficiencyCon Time to implementFocused on increasing efficiency ofdistributionAltern...
ALTERNATIVE 2: VERTICAL INTEGRATIONPro Increased control over qualityCon Capital intensive facility construction constrain...
ALTERNATIVE 3: HIRE CMOPro Increased administrative efficiencyCon Does not address distribution or production concernsExpa...
QUANTITATIVE ALTERNATIVE ANALYSISWeight Alt 1 Alt 2 Alt 3Feasibility 25% 3 2 4Timliness 20% 3 2 4Cost 20% 3 2 4ImageImprov...
RECOMMENDED STRATEGYIt is recommended that Misturaimplement Six Sigma to increaseefficiency in distribution given that the...
IMPLEMENTATIONShort Term (0-1 Year)•obtain capital•begin Six Sigma processMedium Term (1-2 Years)•implement Six Sigma proc...
SIX SIGMA PROCESSShort Term (0-1 Year)Define – unacceptable quality control timeMeasure – process flow map and other analy...
SIX SIGMA PROCESSMedium Term (1-2 Years)Analyze – review collected data & determine bestpracticesImprove – implement best ...
SIX SIGMA PROCESSLong Term (2+ Years):Evalute Six Sigma processConsistently achieve less than 3.4 defects per millionImple...
REVENUE INCREASE AFTERIMPLEMENTATION-100000010000003000000500000070000002010 2011 2012 2013 2014Product SalesNet earnings ...
RISKS & CONTENGENCIESRisks:Six Sigma doesn’t have desired efficiencyresultsContengencies:If Six Sigma proves ineffective, ...
WHEN TO EXIT?Test:FitPerformanceCompetitive AdvantageRisks andContingencies
QUESTIONAND ANSWERSESSION
MISTURA MOTTO“Beauty Simplified”
POTENTIAL PRODUCTEXPANSIONMascaraEyelinersEye Care Products
WAYS TO OBTAIN CAPITOLDebtVenture CapitalistPublic Offering
OBTAINING CAPITALDebtMaintain decision making capabilitiesDebtholders have primary claim to CFs whichcould be problematic ...
OBTAINING CAPITALVenture CapitalistImmediate access to fundsLose some of the decision powerGain expertise of someone who h...
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Mistura Beauty Solutions Case Analysis

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Case Analysis presented at the 2013 NIBS Worldwide Case Competition in Leuven, Belgium.

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Mistura Beauty Solutions Case Analysis

  1. 1. MISTURA BEAUTY SOLUTIONSConlon Cash, Brooke McCarter,Sundeep Shamanur, and Cole Welch
  2. 2. OUTLINEIssue IdentitficationSituation AnalysisInternalExternalAlternativesRecommended StrategyImplementationRisks & Contingencies
  3. 3. ISSUE IDENTIFICATIONHow can Mistura manage growth whileconsidering entering new chains andexpanding chain stores given factors such as:Financial CapacityExternal FinancingOutsourcingIssue
  4. 4. INTERNAL ANALYSIS• Ottawa Small Business Acheivement Award• One of the Ottawa region’s top 40 under 40• PLM• 1085% sales growth 2009-2011Strengths• Bill paying• Marketing process inefficiencyWeaknessesAnalysis
  5. 5. EXTERNAL ANALYSIS• $2.3 billion market size• Environtmentally consciousnessOpportunities• Manufacturer producing for another company• Increased competition due to increased industry growth andlow barriers to entryThreatsAnalysis
  6. 6. KEYSUCESSFACTORSSimplictyBrandImageNaturalVersatilityAnalysis
  7. 7. FIVE FORCESMODELCompetitionLowSubstitutesLowBuyersHighNewEntrantsHighSuppliersHighAnalysis
  8. 8. WHAT NEEDS TO HAPPEN• Examples:• Debt• Venture Capitalism• Public OfferingObtainCapitalAlternatives
  9. 9. ALTERNATIVE 1: SIX SIGMAPro Increased efficiencyCon Time to implementFocused on increasing efficiency ofdistributionAlternatives
  10. 10. ALTERNATIVE 2: VERTICAL INTEGRATIONPro Increased control over qualityCon Capital intensive facility construction constraintsFocused on quality control andcutting costsAlternatives
  11. 11. ALTERNATIVE 3: HIRE CMOPro Increased administrative efficiencyCon Does not address distribution or production concernsExpand product line and increasemarket shareAlternatives
  12. 12. QUANTITATIVE ALTERNATIVE ANALYSISWeight Alt 1 Alt 2 Alt 3Feasibility 25% 3 2 4Timliness 20% 3 2 4Cost 20% 3 2 4ImageImprovement20% 3 4 2Potential Savings 15% 5 4 1Total 100% 3.3 2.7 3.15Scale of 1-5; 1 = Worst; 5 = BestAlternatives
  13. 13. RECOMMENDED STRATEGYIt is recommended that Misturaimplement Six Sigma to increaseefficiency in distribution given that theappropriate capital is obtained.RecomendedStrategy
  14. 14. IMPLEMENTATIONShort Term (0-1 Year)•obtain capital•begin Six Sigma processMedium Term (1-2 Years)•implement Six Sigma process•research and development of extended product linesLong Term (2+ Years)•review Six Sigma•consider implementation of other alternativesImplementation
  15. 15. SIX SIGMA PROCESSShort Term (0-1 Year)Define – unacceptable quality control timeMeasure – process flow map and other analyticsImplementation
  16. 16. SIX SIGMA PROCESSMedium Term (1-2 Years)Analyze – review collected data & determine bestpracticesImprove – implement best practicesControl – train employeesImplementation
  17. 17. SIX SIGMA PROCESSLong Term (2+ Years):Evalute Six Sigma processConsistently achieve less than 3.4 defects per millionImplementation
  18. 18. REVENUE INCREASE AFTERIMPLEMENTATION-100000010000003000000500000070000002010 2011 2012 2013 2014Product SalesNet earnings (loss)Product Sales*Net earnings (loss)*Implementation
  19. 19. RISKS & CONTENGENCIESRisks:Six Sigma doesn’t have desired efficiencyresultsContengencies:If Six Sigma proves ineffective, transfercapitol allocated to Alternative 1 toAlternative 3Risks andContingencies
  20. 20. WHEN TO EXIT?Test:FitPerformanceCompetitive AdvantageRisks andContingencies
  21. 21. QUESTIONAND ANSWERSESSION
  22. 22. MISTURA MOTTO“Beauty Simplified”
  23. 23. POTENTIAL PRODUCTEXPANSIONMascaraEyelinersEye Care Products
  24. 24. WAYS TO OBTAIN CAPITOLDebtVenture CapitalistPublic Offering
  25. 25. OBTAINING CAPITALDebtMaintain decision making capabilitiesDebtholders have primary claim to CFs whichcould be problematic if company ever decided togo publicInability to pay bills indicates risk of bankruptcy ishigher, increasing Kdat
  26. 26. OBTAINING CAPITALVenture CapitalistImmediate access to fundsLose some of the decision powerGain expertise of someone who has had success inthe business world

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