Abstract
The case illustrates the culture and corporate values of Mary Kay, a make-up cosmetic company that set up its business back in 80’s under the leadership of Kay, who organized the business values and cultures based on love, care and empowerment. The business stood out as the leading makeup manufacturer with the vision to offer the Chinese women confidence, love and success through making them feel beautiful.
In doing so, the company opted direct sales strategy, in which it encouraged women to participate and thus made the largest women sales force in China. The company’s corporate values defined the periodization of work based on three levels (1) faith (2) family (3) job security. Kay believed that if the employees have faith in what they are doing and have family support along with the job security, they tend toun leash inner strength and skills that makes the business successful in the market.
Though so far, the company has been successful in achieving the high sales in Chinaandglobal image in the international markets, however since the company operates in the parentproduct only, the management has totake someactionregarding the product development since the demand of the end consumer increases with the passing time and enhanced loyalty with the brand.The other issue, Kay has to address the sustainability of the cooperative culture, since the use of internet is increasing in themarket, the modelof direct selling through the sales team is at stake, and since the company has promised not to be in directcontact with the end consumers, it has created a jeopardy for Kay for how to capitalize the market opportunity (internet) while sustaining its corporate culture.
Keywords: Corporate culture, values, internet, direct selling, Diversification
Mary Kay China People and Love Harvard Case Solution & Analysis
Introduction
Mary Kay cosmetics Inc. is the fastest growing makeup and cosmetic manufacturer and producer targeting the Chinese market.The company has developed a strong image in the market for high end skin care products andcosmetics while being the leading employer of women in the market.The company has been awarded for the best employer practices and has beenranked top in fortune 500 best companiestowork for.
From the initiation of business, the company targeted the women in the marketand developed the corporate values and culturesto elevate the women work life in the market.In addition, the company also developed the corepractices of empowering the employees to prioritize the work themselves, in doing so, they set up the levels of priority in whichtheyplaced faith first followed byfamilyand then job security.The company firmly believed that with love and great care, the company cangenerate high performance and sale volume in the market.
In addition, Mary Kay also developedthe direct salesbusinessmodel, in which it developedthe corporate value of promoting the sale team to develop its career and a promise of not getting in contact with the end consumer directly. Thishashelped the company to gain extended employee loyalty and retention.
However, Kay hasto decide the future strategy of the companywhile sustaining the corporate culture and values.Since internet hasemerged in the market, the companyhas to develop such strategy or model that on one hand sustains cooperative culture while capitalizes the internet model to increase the market size and sales of the company...............
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