Chooi Lou Yi
001F11519
Management Organizational behavior
Diploma in Applied Psychology
Raffles College of Higher Education
Table of Content
Introduction ……………………………………………………………………………..1,2
Background of organization ……………………………………………………………..2
Content
History of main product or service ………………………………………………………2
Organizational structure and culture ……………………………………………………..3
Leadership style in the organization …………………………………………………….3 , 4
Motivational theory ……………………………………………………………………..4 , 5
Strategies in coping with stress ……………………………………………………….5
Conclusion ……………………………………………………………………………..6
Reference
1
Introduction
Background of Organization
Sephora is a pioneering concept of beauty retail which Dominique Mandonnaud
established in France in 1969. In 1996, Sephora was acquired by the luxury group
LVMH. The unique open-sell atmosphere comprises an ever-increasing number of
iconic and new brands across a wide variety of product categories, including skin
care, make-up, fragrance, body and hair care as well as their own private label. There
are approximately 1,900 stores worldwide in 29 countries, with an growing base of
more than 200 stores across the Asia Pacific region including China, Singapore,
Malaysia, Australia, Thailand, India and Indonesia. Sephora has invested extensively in
its website, which includes instructional videos or pictures that show their customers
the correct way to use their products. In the recent years, the brand also came up
with a popular loyalty program and they also have a monthly subscription box that
allows their customer to discover their latest products at home. In 1999, Sephora
launched their U.S site and the Canadian version followed in 2003, now shopping is
worry-free. The Beauty Insider Community of Sephora is one of the largest beauty
for a in the world. The member-only smartphone and online platform is a first for the
luxury retail industry and serves as a portal for beauty-lovers to find inspiration, ask
questions and receive tips in an unsponsored, real-time, “real talk” social environment.
According to Sephora’s website, 2019, Sephora has 5 Distribution Centers (DC) located
through four states: Maryland, Nevada, Mississippi, Utah, employing more than 1,600
people, transporting goods through the country to the stores and customers’ doorsteps.
2
In 2005, Sephora launched their beauty bars, which became a popular hit in Sephora
stores.
Content
History of main service
In August 2015, Sephora launch a subscription service: Play! By Sephora. The
monthly subscription service contains 6 sample size products in a box for a monthly
fee $10. This subscription box allows customers to try out new beauty product, each
PLAY! Box comes with 50 free Beauty Insider Points passes. Sephora also offers
makeup services, if a fast touch up is needed, or a free lesson on how to make the
perfect cat eye. Professional Beauty Advisors are there to provide advices and help
the customers look the best. A custom makeover is also available at RM250,
customers can upgrade their looks and pick up some new techniques with a 45minute full-face makeover by their Beauty studio Artist. Sephora also offers skincare
services, customers can enjoy a 45minute service, a booking fee RM488 is needed or
the session is complimentary. Personal beauty shopper service is also provided at the
Fahrenheit88 located in Kuala Lumpur, Malaysia. This service is only available for
Gold members, during this 60-minute private session, a personal shopper will provided
personalized recommendations to the customer based on his/her needs. Lastly, the
infamous benefit brow bar, it is a small kiosk located in most of the Sephora stores.
The Benefit Brow bar provides waxing services, on birthdays Sephora Gold and
Black members gets to enjoy complimentary birthday Brows service.
3
Organizational structure and Culture
Organizational structure defines how information flows within the business between
levels. In a centralized system, decisions flow from the top down, whereas in a
decentralized structure, decision making authority is spread across different levels of
the organization. Sephora SEA
Organizational culture is a system of shared values, norms and assumptions that guide
members’ attitudes and behaviors. After a year acquisition by luxury group LVMH
(Moet Hennessy Louis Vuitton) in 1997, they expanded their empire to North America.
Sephora is committed to creating a culture of belonging as they celebrate the
beautiful diversity of our people and our clients. Sephora workers works as a diverse
teams and they are always believe that diverse teams are the best teams, and together
they’re making a positive difference in our world. Research found that women view
themselves as a vehicle of self-expression where they are more confident with make
up on.( Cash and cash,1982)
Leadership style in the organization
According to the Sephora Career website, they mentioned that their leadership has
many faces, their leadership acts differently from others. They lead from the bottom,
they want their employees to speak up. Sephora wants employees to think on their
feet and take risks, they want to inspire employees to act fearlessly; to empower their
teams to challenge the impossible, and to be creative. Their leadership team has
always been described as “women-driven by driven women.” Sephora’s operagtional
model of the organization facilitates the effective execution of those business
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strategies which support the broader mission in this way, the operational model serves
as a kind of business strategy subgroup. Sephora stores are designed to promote
brand display, product development, and cross-brand buying, which add to Sephora’s
market credibility and negotiating strength. According to Lewyn’s leadership styles,
Sephora’s leadership style is Participative. Democratic leaders give instructions to
members of the group but they also participate in the group and encourage feedback
from other members of the group. Participating leaders facilitate the involvement of
community members, but maintain the final voice in the decision-making process.
Democratic leadership works well in circumstances where members of the community
are knowledgeable and willing to share their expertise. (cherry , 2020)
Motivational theory
According to the Maslow Hierarchy of needs, there are five human needs. Needs
lower in the hierarchy must be met before individuals can take care of needs higher
up. It starts from basic needs , Physiological needs include food, clothing, shelter air,
water and necessities of life. Secondly, safety needs after satisfying the physiological
needs, the next needs are safety and security. Thirdly, love and belongingness needs,
at the third level of human needs is social and involves feelings of belongingness.
Sephora falls under the 3 level (love and belongingness (social needs)) it is related to
being interpersonal, evoking the feeling of belonging. Sephora is highly desired among
Generation Z and Millennials , it is like a perfect bridge between higher-end beauty
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products and drugstore. They have varieties of affordable high-quality beauty product
also high end luxury products. The 4th level is esteem needs, Maslow classified into
two categories; esteem for oneself(achievement, dignity, mastery, independence) and
the desire for reputation or respect from others (e.g., status, prestige) The 5th level is
self-actualization needs, this is the highest level in Maslow’s hierarchy, in this level it
refers to the realization of a person’s potential, self-fulfillment, seeking personal
growth and peak experiences.
Strategies in coping with stress
Due to the coronavirus outbreak, many organizations and businesses are affected and
majority is trying to recover from the financial crisis. As a big organization, beauty
products is not the main needs for the consumers in this situation. Firstly developing
self-awareness. Workers can increase awareness of how they can loose or keep their
job during the pandemic, and what can be done if they face difficulties keeping their
job or position, employees should know when to withdraw from a situation. If you
cannot leave a stressful situation, employees can go for skill training. Stress can be
reduced effectively when they are taught how to do their jobs efficiently.
Third, company- sponsored counseling programs, I believe many are not aware of the
seriousness of the Coronavirus outbreak, many people think that it is a joke and the
situation is not as serious as what it looks like. Having programs like this can help
to comfort the employees, providing them proper knowledge about the situation and
comfort them, giving them assurance so that they wouldn’t be afraid of loosing their
job or having to face serious financial issues.
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Conclusion
Sephora is a big company of makeup and body care in the world of beauty. In the
recent years, it has been reaching the networks all over the world. Sephora’s brand
image is always very appealing, stylish and luxurious. Sephora is successful as they
have stores in most of the shopping centers which makes it very convenient for their
customers to pick up the things they want. Integrate technology, Sephora also have an
app, having the APP helps consumer to simplify products when purchasing from the
mobile phone, they even have loyalty program it somehow increases Beauty Insider
Loyalty usage, and it allows customers to exchange some sample size new products
using their loyalty points, this loyalty program helps to track the customers purchases
and app usage. In comparison to its rivals, the digital and marketing strategies at
Sephora are coordinated under the same department, promoting collective decision
making. Sephora’s product includes analytical, strategic and result – oriented inventory
management professionals to create a brand and maximize the use of inventory. In
the selection process, the respective members of the Sephora departments collaborate
to concentrate on every single feature and product, whether it is good for the
customers or not.
Reference
Cherry, K. (2006, May 12). Leadership Styles and Frameworks You Should Know.
Retrieved from Verywell Mind website: https://www.verywellmind.com/leadershipstyles-2795312
LVMH First Half 2015 Results (LVMH Releases,
2015): http://www.lvmh.com/investors/publications/
“How Sephora Reorganized to Become a More Digital Brand” (HBR,
2014): https://hbr.org/2014/06/how-sephora-reorganized-to-become-a-more-digital-brand