Question

In: Economics

For many organizations, global growth and supply chain issues have led to important strategic initiatives that...

For many organizations, global growth and supply chain issues have led to important strategic initiatives that drive the activities for much of the organization.
Briefly describe the extent of global engagement by your company.
What specific advantages or disadvantages of competing in these global markets or supply chains exist for the company?
What should organizational leaders do to address these global issues?

COMPANY-SEPHORA

For many organizations, global growth and supply chain issues have led to important strategic initiatives that drive the activities for much of the organization.
Briefly describe the extent of global engagement by your company.
What specific advantages or disadvantages of competing in these global markets or supply chains exist for the company?
What should organizational leaders do to address these global issues?

Solutions

Expert Solution

Answer of first question:

Sephora operates over 2,600 stores in 34 countries worldwide, with an expanding base of over 460 stores across the Americas. Sephora opened its first U.S. store in New York’s Soho neighborhood in 1998, its first Canadian store in Toronto in 2004, first Mexico store in Mexico City in 2011, and first Brazil store in São Paolo in 2012. The Sephora Americas headquarters are located in San Francisco, with corporate offices in New York, Mexico City, Montreal, Toronto and São Paolo.Sephora brings innovation through their Beauty Insider program, which gives clients backstage passes to great beauty deals, coupons, promotions and free makeovers. Sephora uses Pantone technology to match clients to their perfect foundation in the world of color. Additionally, Sephora has computers in the skincare and fragrance worlds which are databases of ingredients and product reviews and suggested usage to engage and educate clients while in store to find their perfect makeup, skincare and fragrance products.

Answer of second question:

Sephora has grown to over 280 stores in a little more than a decade. Its unique open-sell store environment, staffed by a team of beauty experts, provides customers—who the company calls its “clients”—direct access to a broad range of product categories including skincare, color, fragrance, bath & body, smile care, and hair care. Launched in 1999, Sephora.com is now one of the Internet’s foremost beauty shopping sites, making it its largest North American “store” in terms of sales and selection of products and brands.

With such rapid growth over multiple channels, its logistics and supply chain team knew it needed to keep a close watch on its lone 316,000-square-foot distribution center (DC) located in Belcamp,

A digitized supply chain would enabled Sephora to be more efficient in the following ways:

  • Creating automated warehouses that provide continuous information flow will allow Sephora to better forecast demand and determine the optimal levels of inventory for each store.
  • Autonomous transportation would enable transparency into transit updates and reduce the labor costs associated with uncertain drop-off volume and times.
  • Distribution centers with weight sensors will enable the company to predict inventory needs and improve the cycle time from vendor to distribution center to store shelf.

The supply chain management system of Sephora have very little disadvantageg.

Answer of the third question:

Based on a scientific understanding of what drives human behaviour, Sephora developed a strategy that aimed to create love and loyalty for all humans engaging with the brand.

a)Improved data collection, analysis and insights have played a key role in understanding and improving both the customer and employee experience at leading beauty retailer Sephora,

b)They relied on various understandings of human needs, as well as motivational needs such as the desire for purpose, autonomy, and mastery.

c) They shift the idea that HR is about transactions and ‘resources’ and instead recognise that HR is about people.

d) Putting people’s needs and motivations at the core of their strategies and actions.

e) They partnered with the NeuroLeadership Institute to create a research-driven curriculum focused on mitigating bias and driving positive behavioral change in all stores. They also rolling out continued beauty education on serving clients of all skin tones and skin types, including training staff at all levels in at least 10 different touchpoints.


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