L'Oreal Business Strategy
L’OREAL BUSINESS STRATEGY
REPORT
Marieli Venegas; ID: 21250913
MIBM
Business Strategy
University of West London
May 2014
Table of Content
Introduction……………………………………………………………….. p. 3
Value Chain………………………………………………………………...p. 5
Core Competence……………………………………………………………p. 6
Strengths and Weaknesses ………………………………………………… p. 8
Financial Position……………………………………………………………p. 10
L’Oreal Culture……………………………………………………………...p. 10
TWOS…………………………………………………………………….... p. 11
L’Oreal Strategies…….………………………………………………….… p. 11-13
Strategies Assessment……………………………………………………….p. 12-16
References…………………………………………………………………. p. 17
Introduction
L’Oreal is the world 's biggest cosmetics and beauty Products Company. It is engaged in the field of production and marketing of hair colours, skin care, perfumes and fragrances, make up and styling products. L’Oreal also has products in the dermatological and pharmaceutical fields. Through 25 international brands their products are made for both individual and professional customers and the company has five research and development centres throughout the world.
L’Oreal Value Chain
FI: Diversity and Innovation bases for L’Oreal strategic planning.
HM: Focus on employees training investment. 69,000 employees’ in130 countries where more than 44,900 employees has been trained.
TD: Regional research and development centres that enable to understand better local market. Internet is even more integrated into the buying process.
PRO: L’Oreal buyers team of research and innovation are involve in the selection of supplier to ensure the high quality of supplies as well as the raw materials necessary to meet the “Innovative” standards.
L’Oreal joined forces with specializes suppliers of equipments ensuring more efficient and environmentally friendly overall performance
Inbound logistics Operations Integrated Production Mode around the world at its 45 factories that reduce risk and optimize the industrial process.
REPORT
Marieli Venegas; ID: 21250913
MIBM
Business Strategy
University of West London
May 2014
Table of Content
Introduction……………………………………………………………….. p. 3
Value Chain………………………………………………………………...p. 5
Core Competence……………………………………………………………p. 6
Strengths and Weaknesses ………………………………………………… p. 8
Financial Position……………………………………………………………p. 10
L’Oreal Culture……………………………………………………………...p. 10
TWOS…………………………………………………………………….... p. 11
L’Oreal Strategies…….………………………………………………….… p. 11-13
Strategies Assessment……………………………………………………….p. 12-16
References…………………………………………………………………. p. 17
Introduction
L’Oreal is the world 's biggest cosmetics and beauty Products Company. It is engaged in the field of production and marketing of hair colours, skin care, perfumes and fragrances, make up and styling products. L’Oreal also has products in the dermatological and pharmaceutical fields. Through 25 international brands their products are made for both individual and professional customers and the company has five research and development centres throughout the world.
L’Oreal Value Chain
FI: Diversity and Innovation bases for L’Oreal strategic planning.
HM: Focus on employees training investment. 69,000 employees’ in130 countries where more than 44,900 employees has been trained.
TD: Regional research and development centres that enable to understand better local market. Internet is even more integrated into the buying process.
PRO: L’Oreal buyers team of research and innovation are involve in the selection of supplier to ensure the high quality of supplies as well as the raw materials necessary to meet the “Innovative” standards.
L’Oreal joined forces with specializes suppliers of equipments ensuring more efficient and environmentally friendly overall performance
Inbound logistics Operations Integrated Production Mode around the world at its 45 factories that reduce risk and optimize the industrial process.
References: (L’Oreal, 2014f) Core Competence L’Oreal main investment is to focus on research and innovation. These teams are distinguished by their ability to patent active ingredients as shown in the graph below.. (L’Oreal, 2014i) (L’Oreal-Finance, 2013a) (L’Oreal-Finance, 2013b) Strong and well define advertising strategy. = 3697 / (29531-6370) * 100% = 3875 / (31298-6595) * 100% Gearing 1.1% 1.6% = (47+201) / (29531-6370) * 100% = (94+293) / (29531-6370) * 100% (L’Oreal Finance, 2013d)