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William P. Lauder and Fabrizio Freda of The Estée Lauder Companies Inc., (ELC) announced the company's new organizational structure and senior leadership team. This marks the completion of the second phase of the company's succession plan that was announced approximately 18 months ago, and, according to a press release, will better position the company to implement and achieve its new corporate strategy and financial goals.
Freda, who will become the company's president and CEO on July 1, 2009, has established an executive leadership team (ELT) that includes all of the brand, region and function heads. Under his leadership, the ELT is responsible for implementing the company's long-term strategic priorities, achieving annual goals, and addressing critical global business issues and opportunities. Also newly formed, the program management team (PMT) is a subcommittee of the ELT, focused on implementing the company's top strategic priorities, building new capabilities and delivering cost savings.
"This talented team of professionals will leverage the creative and brand building strengths of the company while enhancing our ability to benefit from our scale and extensive global reach. Working together, they will ensure that The Estée Lauder Companies will become an even stronger leader in the world of global prestige beauty," said Freda.
There will be four categories of ELC brands that will now be organized according to channel and consumer segmentation. This will allow for better leverage of scale and strategic integration according to market segments and growth potential. The following brand leadership team will report directly to Freda:
As announced, the company will place a much greater emphasis on creating economies of scale by region, and also by developing new marketing capabilities on a regional basis. "Our regional focus will simultaneously allow us to improve our local marketing capabilities by being closer to our consumers and to reduce costs across the company," said Freda.