edf40wrjww2CF_PaperMaster:Desc
Makeup Art Cosmetics (MAC) was founded in 1985 in Toronto by Frank Toskan and the late Frank Angelo. The business plan concentrated on targeting young, fashionable females by creating cosmetic products which contain unique textures and colours. Using this strategy, the company targeted the ¡°hip¡± celebrities and other cosmetic influencers to gain recognition and market share in the younger consumer market. Since its inception, the company has grown to become a multi-national organization operating in over 180 locations worldwide. In the late 1990¡¯s, MAC was purchased by Estee Lauder, which has led to the alteration of the company¡¯s governance; the culture of the firm changed from that of an entrepreneurial-style with limited rules into a culture dominated under a stricter control by top management.
There is a medium power distance between managers and associates. Evidence supporting a high power distance is that promotions are based on job performance and not on obedience.; employees are individually reviewed at the end of each year by their superiors and are rewarded with salary increases and promotions based on their review. The organizational design and structure is vertical with a tell pyramid since MAC directors now have to report to Estee Lauder top management (please see Appendix 1 for a simplified organizational chart). Further evidence which supports our conclusion of a medium power distance is that the purpose of training is for the improvement of skills rather than for instilling compliance. The motivational assumption is that people like to work and get rewarded for their hard work at MAC, which is why the company provides its employees with free product giveaways on a mont ...