Ulta Beauty

Topics: Cash flow, Supply chain, Cash flow statement Pages: 8 (2513 words) Published: November 18, 2010
Executive Summary
The following paper is about a company that is at the top level of their industry in selling their products and services. The background of this company describes about what kind of company this is and the types of products and services it provides to their customers. This section also includes the recent performance of this company and the varying aspects of what their target customers and whose is the competition. This beauty retail store SWOT Analysis includes several strengths and weakness that it has currently developed in its structure. However, there are a few opportunities that this company should take advantage to seize the moment and there are a few threats in which they should find new ways to overcome and eliminate. The Alternative section is about two different alternative strategies that I have come up for the company. The first alternative is a simple change in the organizations structure pertaining to functional activities. The second alternative involves a drastic change on how the company operates in which they should manufacture their own product lines. The Choice section is why I choose one of the alternatives and gave reasons on how come it was rejected. I justified by rejection by going back to the SWOT analysis. The implementation section is about the structure I proposed for my company. Include in this was how this company implements their control systems throughout the organization. Last was the organizational culture of this company. Every organizational culture is unique to their own way on how they operate their employees and company.

Ulta Salon, Cosmetics & Fragrance Inc. is a beauty retail store that I’m going to do research on how the company operates. This background paper is going to include four topics that are Company, Recent Performance, Customers, and Competitors. These topics should give you an idea on how successful this company has been in our recent economic hard times. Company

Ulta Beauty was founded in 1990 as a discount cosmetic retail store when the demand for these products was growing in the early 1990’s, Ulta Beauty Corporation is located in Bolingbrook, Illinois. Ulta has pioneered in what they believe to be an exclusive blend of beauty superstore and specialty store features. Ulta offers a unique combination of thousands of prestige and mass beauty products across the categories of cosmetics, fragrance, hair care and skin care. Recent Performance

Ulta’s recent performance for the second quarter fiscal of 2010 has been impressively a success. In comparing their results from last year 2009 second quarter results there has been an improvement in overall performance. Ulta’s net sales in 2010 increased 17.6% to $321.8 million from $273.5 million in the second quarter of fiscal 2009. Net Income increased by 127.2% to $13.1 million compared to $5.8 million in the second quarter of fiscal 2009. Gross profit increased 32.3% from 28.8% in the second quarter fiscal 2009. Contributions to Ulta’s improvements in operations has involved strict discipline in managing their cost structure which has led to more than a doubling their earnings and 120% increase in earnings per share. In continuing to be a successful beauty retailer their store expansion plans to remain on track to deliver 28 new stores in the third quarter of 2010. Customers

Their customer base is consisted of busy middle to upper income women living in the United States. However, in Texas the stores do get plenty of customers that come in from Mexico. Ulta targets its customer base by constructing their locations on off-mall locations, suitably in high-traffic vicinities. Competitors

Ulta’s main competitor is Sephora, which is a French-based company that was founded in 1969 in France. Sephora offers 400 locations in stand-alone stores and J.C. Penny department stores. The company also sells via catalog and online at their website, they opened their first...
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