Organization structure - Essay Example

It has positioned itself as a leader in new product developments and promotions. It has increased their presence in the fast-growing Internet market and direct response television while expanding their international reach. With these core capabilities, it has gained a worldwide reputation for elegance, luxury and superior quality. Even amidst a severe recession and key customers going out of business, the company has proven itself as a durable organization that can weather tough challenges. The worldwide recession declined the consumer spending that affected the sales of the company.

With strong leaderships of the company’s Executive Chairman, William Lauder, as well as the President and CEO, Fabrizio Freda, it has responded to the demands of their external environment. It has created business strategies of multi-national expansion, multi-channel distribution and multi-brand leadership in order to support the company’s growth and sustainability. Recently, the company has announced a new organizational structure and leadership team in order to further quickly respond to a fast changing market economy and position itself as an effective organization in implementing and achieving its corporate strategies and financial goals.

Figure 1 illustrates the new structure of the organization. The Executive Chairman of the Board of Directors have people in the leadership team reporting to him such as the President and Chief Executive Officer, Executive Vice Presidents of General Counsel, Global Human Resource and Global Communications, Chief Financial Officer and Senior Vice President for Corporate Administration. The structure of the organization under the CEO is designed as a hybrid structure of products, geographical and functional departmentalization.

The CEO has an executive leadership team directly reporting to him. The product departments are divided into four clusters brands that are organized according to channel and consumer segmentation.