The expansion of mergers and acquisitions around the world as also in the UK market is the result of the failure of companies to apply an effective strategic plan ensuring their position in their industry. Towards this direction, a report that published by DTI in December 2003 states that: if UK-based companies fail to innovate, jobs and profits will suffer, and UK’s standard of living will fall compared with other countries. Britain already has some sectors that lead the world in innovation: aerospace, pharmaceuticals, biotechnology, financial services and many of the creative industries. and there are some firms in almost all sectors that are global leaders. however, overall, country’s performance is not good enough. although there is no single indicator of innovation, two measures of technological innovation – business RD and patenting – show the UK’s performance is only average compared with UK’s international competitors’ (Innovation Report: Competing in the global economy: the innovation challenge, DTI, December 2003, . In other words, the cosmetic industry is a significant sector for UK economy while several profitable companies operate in it achieving high levels of profit on an annual basis. In accordance with the study of Black (2004, 5) ‘the value of the professional beauty industry in the UK in 1998 was £366 million, which represented a growth of almost 6 per cent on the previous year. this figure includes beauty therapy treatments in a variety of sites including mobile, hair and beauty salons and health clubs’ (Black, 2004, 5). The above findings are indicative of the performance of companies that operate in the British cosmetic market. Moreover, the above researcher refers especially to the cases of ‘Florence Nightingale Graham (later to become Elizabeth Arden) and Helena Rubenstein’ which ‘remain well-known names in the cosmetic industry.