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Table of Contents:
Description of Company-----------------------------------------------------------
Pp 4
Current Strategies
Mission Statement------------------------------------------------------------------
Pp 6
Pp 9
Organizational Structure------------------------------------------------------------- Pp 12
Distinctive Competencies----------------------------------------------------------- Pp 13
Financial Three-Year Summary----------------------------------------------------- Pp 14
Income statement
Balance sheet
Key Competitors-------------------------------------------------------------------- Pp 17
Key Ratios--------------------------------------------------------------------------- Pp 19
Situation Analysis------------------------------------------------------------------- Pp 22
General environment
Industry analysis
Internal environment
Current Issues
SWOT Analysis---------------------------------------------------------------------
Pp 32
Recommendations-----------------------------------------------------------------
Pp 37
Description of Company
L'Oral is the world's largest cosmetics and beauty products company that
manufactures products ranging from cosmetics, perfume, hair and skincare items.
L'Orals success is built on a strong foundation, which began in 1909 when Eugene
Schueller, a young chemist and entrepreneur, established the company. Its brands
include
L'Oral
Paris,
Maybelline
(mass-market),
Lancme
(luxury),
Redken
and SoftSheen/Carson (retail and salon). L'Oral is a publicly listed company, but the
founders (Eugne Schuellers) daughter, Liliane Bettencourt, and the Swiss food
company, Nestl, have over a quarter of the shares as well as voting rights. In 2010,
the companys overall consolidated sales were 19,5 billion. L'Oral has 23 global
brands among 66 countries with approximately 66,600 employees. There are 38
factories around the world and 5.7 billion units manufactured in 2010.
L'Oral, who owns Dallas-based SkinCeuticals, also conducts cosmetology and
dermatology research. With more than 50% of sales generated outside Europe,
L'Oral has focused on acquiring brands in those markets. L'Oral also owns the UKbased natural cosmetics retailer The Body Shop International, which accumulated
about 2,550 stores worldwide. The firm's dermatology branch, Galderma, is a joint
venture between L'Oral and Nestl. Their company motto is Savoir saisir ce qui
commence, which translates to seize new opportunities, results to their emphasis
on expansion into larger market segments.
L'Oral holds 10.41% of the shares of Sanofi-Aventis, Europes first
pharmaceutical company. In our culture, the brands come first. Weve always been
more active in marketing each of our brands and their culture. That is very deep at
Increasing
Expense
in
Research
&
Development
and
is capable of grasping the worlds complexity. The exploration of new scientific and
technological territories is being enriched by this global dimension. Knowledge of
different cultures and rituals worldwide enables the laboratories to anticipate and
invent the products of the future.
LOral is committed to carrying out its mission to make beauty universal in a
sustainable and responsible way. A highly exacting challenge, which the group is
taking up step by step, in a long-term perspective, with the active involvement of all
its employees. Ranked amongst the 100 most sustainable and ethical companies in
the world, LOrals ambition is to be an exemplary corporate citizen. To help make
the world a more beautiful place.iii
/ Values
iv
YES Cosmetics
Markets
Techonology
Philosophy
Self-Concept
Thus, LOreal achieves 7 out of 9 for its mission alone. If it were to incorporate
some of its mentioned values in its mission, it would possess the perfect mission.
10
11
12
13
14
15
16
17
Organizational Structure
CEO
Jean- Paul Agon
Chairman
Lindsay Owens-Jones
CEO
CIO
Jean- Paul Agon
Research &
Innovation
Business
Development &
External Affairs
Active Cosmetics
Henric Sark
Roger Dolden
Finance &
Administration
North America
Fedric Rose
Consumer
Products
Joseph Campinell
Communication
& Public Affairs
Luxury Products
LOreal Paris
Carol Hamilton
Karen Fondu
Luxury Products
Maybelline
New York-Garnier
David Greenberg
Africa &
Middle East
Asia
Human Resources
Operations
Sarah Hibberson
Vince Serpico
Operations
Professional
Products
& Salon Products
Patrick Parenty
Professional
Products
Research &
Development
Eric Bone
As you can see from the above diagram, the corporate organizational
structure of LOreal is too complicated to be categorized as a functional, divisional
18
The functional aspect can be seen though the titles- CIO, Finance &
Administration, Operations and so forth. However, the structure also satisfies the
divisional organizational structure through titles of the following- Luxury Products,
Consumer Products and so forth. It is essential to also point out that LOreal not
only divides its organization through products, but it also utilizes the divisional
organization through geographical divisions such as North America, Africa & Middle
East, Asia and so forth. Therefore, the organizational structure of LOreal is of a
rather sophisticated one, mainly due to its global influence and the fact that LOreal
is of an extremely established organization. LOreal achieves organizational structure
through combining both functional and divisional structures to ensure efficiency
throughout the world.
19
Distinctive Competencies
LOreal has several core competencies that create value, giving it a
competitive advantage to its competitors. LOreal achieves product innovation by
creating new and innovative products at their advanced dermatological research
facilities. The company invests 3% of their sales in research and development and
introduces one or two new products each year. Another core competency is
achieved within their marketing campaign by using high profile celebrities in ad
campaigns. LOreal is able to greatly enhance its global image through marketing.
Lastly, LOreal offers a diverse range of products including make up, perfume, hair
and skin products that caters to various ethnic groups.
20
Financial Summary
/ Consolidated Profit & Loss Statement
Millions
2010
2009
2008
Net Sales
19,495.8
17,472.6
17,541.8
Cost of Sales
-5,696.5
-5,161.6
-5,187.2
Gross Profit
13,799.3
12,311
12,354.6
-664.7
-609.2
-587.5
-6,029.1
-5,388.7
-5,269.1
-4,048.6
-3,735.5
-3,773.4
Operating Profit
3,056.9
2,577.6
2,724.6
-153.2
-277.6
-156.3
Operational Profit
2,903.7
2,299.9
2,568.3
-43.8
-92.0
-208.8
17.2
16.0
34.6
-26.6
-76.0
-174.2
-9.0
-13.0
-7.2
Sanofi-Aventis dividends
283.8
260.1
244.7
3,151.9
2,471.0
2,631.6
Income tax
-909.9
-676.1
-680.7
Net Profit
2,242.0
1,794.9
1,950.9
2,239.7
1,792.2
1,948.3
-non-controlling interest
2.3
2.7
2.6
3.82
3.07
3.31
attributable to:
company
The consolidated financial statements of L'Oral and its subsidiaries published for 2010 have been
prepared in accordance with International Financial Reporting Standards (IFRS).
21
L'Oral has gradually increased profits throughout the last three years.
However, net sales decreased 6.9 million from 2008 to 2009 due to the instability
of the economy. According to the article, Report slams L'Oral management and
predicts tough 2009, L'Oral has been trading on past glories and is beginning to
pay the price for years of mismanagement. L'Oral has already seen a slowdown in
top line expansion in recent times with organic growth for the past 5 years
averaging out at 5.7 per cent compared to 8.5 per cent for the five previous years.
The company has also missed sales target in three out of the last four years.v
One of their largest costs are allocated in advertising and promotion, L'Oral
has used various actresses or different personalities of all ages that best exudes the
vision of the company. Famous personalities enable average individuals to relate to
their personal lives, allowing them to feel good and thus increase higher sales.
L'Oral has gross profit margin of 71% in 2010, an increase of 1% over last
year, which is a healthy growth. In addition, there is a 12% increase in gross sales,
22
which is most likely due to sales in L'Orals new emerging markets from 2008 to
2010.
Their net income also grew 1% over last year, indicating an insignificant
growth. However, with their dedication in the growth of the company, L'Oral has
spent more on operational expenses to restructure the company, invest in R&D, and
devote more money towards promoting strategies. Therefore, the company was not
able to retain money within the company.
23
2010
2009
2008
Non-current assets
17,048.2
17,350.4
16,380.3
Goodwill
5,729.6
5,446.0
5,532.5
2,177.5
2,042.4
2,038.2
Tangible assets
2,677.5
2,599.0
2,753.3
5,837.5
6,672.2
5,557.4
626.1
570.8
498.9
Current assets
6996.3
5,941.1
6,526.5
Inventories
1,810.1
1,476.7
1,635.5
2,685.2
2,443.3
2,694.6
846.0
732.8
985.8
104.5
115.2
133.6
1,550.4
1,173.1
1,077.1
Total assets
24,044.5
23,291.5
22,906.9
Equity
14,865.8
13,598.3
11,562.5
Non-current liabilities
2,596.6
4,306.6
3,978.0
Current liabilities
6,582.1
5,386.5
7,366.4
Accounts Payable
3,153.5
2,603.1
2,656.6
510.0
431.1
1,958.1
1,750.5
1,848.4
Income tax
166.6
133.2
159.7
767.0
389.7
2,270.6
Total liabilities
9,178.7
9,693.2
11,344.4
TOTAL
24,044.5
23,291.5
22,906.9
As of 12/31
24
L'Orals total liabilities have gradually decreased over the last three years. It
seems as though they have been able to pay off their long-term liabilities such as
bank loans and mortgage loans. In addition, L'Orals current borrowings and debt
amount of 767 million is significantly higher than 2009, indicating that L'Oral may
be borrowing large amounts of money to feul R&D for new inventories. These
numbers all suggest the emphasis of L'Orals expansion and growth to become the
front-runner in the industry.
25
Key competitors
Because of the major market share LOreal has in the cosmetics and personal
care industry, the key competitors of LOreal are the biggest beauty and skincare
manufacturers. Below are six of its major competitors:
Estee Lauder, a beauty, hair and skin care company with more than 25 brands
and distributes to over 150 countries. Its brands are catered towards the higher end
and luxury market, including Aveda, Bobbi Brown, Michael Kors, Coach, Tom Ford,
Smashbox, Clinique, Donna Karan, La Mer and M.A.C.
Revlon, a cosmetics, hair color, deodorant and beauty tools company that
distributes to about 100 countries worldwide. Brands are catered towards the mass
market - the middle to lower class market, and include Almay, Revlon products and
Mitchum deodorants.
Avon Products, a cosmetics and skin care company that distributes through
representatives throughout 100 countries. Unlike other companies, Avon does not
sell through brick and mortar stores or distribute to third party vendors, but instead
26
through their website, and employs representatives to promote and sell their
products. Some brands under Avon are Mark, Liz Earle and Silpada.
Alberto Culver, a personal care and beauty company that focuses on lower
end and value products that are distributed through the mass market worldwide,
mostly at drugstores and value stores. Brands include Tresemme, St Ives, Noxzema
and Vo5. Unilever acquired the company in May 2011.
Procter & Gamble, a personal care, beauty and household product company
that has a wide range of brands from high to low end. Brands include SK-II, Vidal
Sassoon, Wella, Anna Sui, Gilette, Herbal Essences, Clairol and Head & Shoulders.
27
Critical Success
Factor
L'Oreal
P&G
Avon
Estee Lauder
0.15
0.6
0.6
0.15
0.45
Product Quality
0.1
0.3
0.3
0.4
0.4
Innovation
0.05
0.2
0.1
0.1
0.15
Competitiveness
0.1
0.3
0.3
0.3
0.2
Management
0.1
0.3
0.3
0.4
0.3
Market Share
0.1
0.4
0.3
0.2
0.2
Global Expansion
0.05
0.15
0.1
0.15
0.15
Distribution
0.05
0.15
0.15
0.1
0.1
Customer Loyalty
0.1
0.3
0.2
0.4
0.4
Financial positioning
0.1
0.4
0.3
0.4
0.4
Product Selection
0.05
0.2
0.2
0.2
0.2
Social Responsibility
0.05
0.2
0.2
0.2
0.2
Total
Price
3.5
3.05
3.15
As we can see, LOreal is the leading company for the cosmetics and skin care
industry, with Estee Lauder behind, and then Proctor and Gamble, and then Avon.
Proctor & Gamble is as big in size as LOreal, however, in terms of cosmetics and
skin care, LOreal triumphs over them. Avon loses in terms of advertising and market
28
share, and Estee Lauder comes in second due to its product selection as well as
product quality.
29
Key Ratios
LIQUIDITY
Current Ratio
Quick Ratio
LEVERAGE RATIOS
Debt to Assets Ratio
Debt to Equity Ratio
Long Term Debt to Equity Ratio
ACTIVITY RATIOS
Inventory Turnover
Fixed Assets Turnover
Total Assets Turnover
Accounts Receivable Turnover
PROFITABILITY RATIOS
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Return on Assets
Return on Equity
Earnings Per Share
Price Earnings Ratio (MS based on
11/08/10)
GROWTH RATIOS
Sales
Net Income
L'OREAL
AVON
REVLON
ESTEE LAUDER
1.0x
0.6x
1.4x
0.7x
1.5x
0.7x
1.8x
1.1x
0.4x
0.6x
0.06x
0.8x
4x
1.5x
1.6x
(3)x
(1.7)x
0.6x
4x
0.4x
3 Days
7 Days
Under1 Day
6 Days
3 Days
7 Days
1 Day
14 Days
3 Days
13 Days
1 Day
7 Days
2 Days
8 Days
1 Day
7 Days
70.80%
15%
11%
7.92%
15.76%
$3.79
63.52%
10%
6%
10.25%
43.96%
$1.39
64.95%
14%
25%
12.91%
-37.28%
$6.26
78.49%
16%
6%
14.17%
34.25%
$2.38
21
31
12%
25%
6%
-3%
2%
571%
13%
47%
30
Liquidity Ratios
LOreal is not as liquid then the competitors. LOreal is not able to pay off
their short-term debts and liabilities as well as their competitors. This ratio indicates
their ability to turn short term assets into cash to cover debt. Liquidity ratios are
very important, as it can be one of the main indicators of whether a company will
survive in the long term. LOreal has almost 1 million (euros) more accounts payable
in 2010 indicating one of the reasons why they have higher liability to their assets.
This may account to the lower current ratio.
Leverage Ratios
L'Oreal is less levered compared to its competitors. They have low Debt to
Assets ratio meaning that they have low liabilities and more assets, which is a good
sign. However, we can also argue that this could result to less growth in the future
since they are not investing as much as other competitors to buy assets to grow the
company. Their low Debt to Equity ratio is also lower than competitors meaning
31
they are less of a risky company than competitors. This might mean that L'Oreal can
take advantage of issuing more debt and use the cash to buyback some of its
outstanding shares to return some money to investors.
Activity Ratios
Inventory turnover: In line with competitors. They can try to improve to match
Estee Lauder but they are in healthy shape.
Fixed asset turnover: Very healthy number and in line with competitors. They
have a low number, meaning their fixed assets are used very efficiently.
A/R turnover: Better than competitors, which mean the company is able to
collect money from its customers faster than its competitors. This is good for
liquidity.
Profitability Ratios
Gross Margin Ratio: LOreal has a relatively high gross margin ratios
compared to its competitors, which is a good sign. They are left with more
money for the company.
32
Return On Equity: LOreals ROE is low compared to its competitors. They are
less able to generate return for its shareholders. Since LOreal has a high
gross margin, assuming that the company perhaps spends more on
advertising or something below the gross profit line that would lead the
company to have lower net earnings. The best guess is their investment on
equipment, restructuring of the company, and promoting efforts that was
indicated by the CEO are some of the reasons why the ROE is a bit lower than
others.
Growth Ratios
Growth ratios are very strong compared to its competitors. Sales are very
strong in 2010 probably because in 2010, they acquired Yves Saint Laurent as one of
their companies to produce cosmetics from. Their net income ratio is in line with
competitors. Revlon recently came out of bankruptcy, therefore they have a very
high net income but it is a skewed ratio. We would like to see the net income ratio
to be a little bit higher, however they have increased their advertising in 2010. This
may be a factor in the net income ratio results, however, 25% is a very good
number.
33
Situation Analysis
/ General Environment
INDUSTRY TRENDS
The following are current trends in the cosmetics industry that are driving the
markets:
34
Another trend in cosmetics, contrary to the green trend, are bright, ever
changing trendy colors. The trends in previous years were that women wear makeup
to look like they werent wearing make up at all, but now, cosmetic companies are
pushing more vibrant and bright colors. This would drive customers to change
colors more often and purchase more cosmetic products.
Anti-aging and sun protection are also trends in the industry. Women are
starting their anti-aging regiment from as young as 25, and there is an increasing
popularity in using ingredients such as retinoid, fillers, antioxidants and chemical
peels. FDA is also requiring warning for all sunscreen products, as well as a rating
system for sunscreens. There is also an increased amount of products in the market,
such as moisturizers and other skin care regiments, containing SPF in them.
Collaborations,
licensing
technologies
and
working
with
raw
material
companies are becoming more common in the industry. Companies are also
beginning to sell their intellectual property and selling other companies rights to use
their intellectual property to generate more income.
REGULATIONS
The cosmetics industry is mostly a self-regulating industry. The CTFA,
Cosmetics Toiletry Fragrance Association, monitors the industry. FDA does not pre35
approve cosmetics to see if they are effective or not, and companies cannot label
their products as FDA approved. It is the manufacturers responsibility to ensure that
the product is safe and effective for consumers. There are, however, FDA rules for
labeling cosmetics. The product label must contain the following:
The product cannot contain poisonous ingredients that can injure users, and
cannot contain decomposed substance. The product must be packaged in sanitary
conditions where it cannot be contaminated, and the FDA is responsible for
inspecting these cosmetics manufacturing plants. The labels must contain true facts,
and cannot be false or misleading, and in order for the label to be approved, it must
contain all of the above information. If the product turns out to be hazardous, the
FDA cannot recall them. It is the manufacturers responsibility to do so.
36
/ Industry Analysis
Industry
37
Suppliers
Bargaining Power of suppliers HIGH
In the cosmetic industry, the power suppliers have upon cosmetic companies
is high because products sold by cosmetic companies require expensive research
and expertise. Thus, cosmetic companies are dependent on their suppliers that have
developed the formulas of their products.
Substitute Products
Potential development of substitute products - MEDIUM to LOW
38
Competitors
Rivalry among competing firms - HIGH to MEDIUM
The number of competitors in this industry is quite high. Some include, but
are not limited to, Avon Products, Inc. and Alticor Inc. Moreover, most of LOreals
competitors are specialized in a certain type of cosmetic, giving them an expert
image advantage over LOreal. The industry growth rate is also relatively high, as we
make constant improvements in aging and other product innovation. However, fixed
and storage costs are also high, but not as high as in other industries: products are
relatively small and easy to store. Moreover, LOreal caters to higher end customers,
39
producing its products in lower quantities. Product differentiation for LOreal is also
quite high because of its brand image; however in the cosmetic industry, such as the
perfume industry, it is often difficult to differentiate yourself from competitors.
Buyers
Bargaining power of consumers/buyers - MEDIUM to LOW
Customer profile of the luxury cosmetic industry:
40
its
production.
In
the
cosmetic
industry,
brand
identity
and
product
differentiation is very high. High capital is required because of the heavy R&D
needed to create cosmetic products. Indeed, it is very expensive to start a new
cosmetic company in this industry with the need of high investment in product
development/testing, and advertising. Switching cost is not very high, but the cost of
switching to a new type of cosmetics that the customer might be allergic to is high.
There is high control of the distribution channels, and the access to raw materials is
41
/ Internal Environment
Tangible Resources
The tangible resources of LOreal would be first and foremost its financial
position and capital. How much profit does LOreal make? What is LOreals
borrowing power? From the year 2009 to 2010, LOreals net profit rose from 1997
million Euros to 2371 million Euros. The company was able to lower its net financial
debt/equity ratio from 14.4% in 2009 to a staggering low of 0.3% in 2010, meaning
that the company was almost covering all of its debts with its equity. LOreals net
financial debt lowered from 1985 million Euros in 2009 to 41 million Euros in 2010.
As LOreals debt lowers, it gives the company more borrowing capacity.
42
Intangible Resources
Reputation is another important resource LOreal has. LOreal has the most
globally known brands as well as brand image, and its diverse brands and products
serve a wide range of customers. It has both accessible, mass marketed brands, as
well as high end, luxury brands for worldwide markets. They are also tapping into
the BRIC markets such as India and Brazil. LOreal has some of the top selling
43
products in the U.S., for example their Maybelline Falsies Mascaras, and are seen as
an environmentally friendly and socially responsible company.
In 2010, LOreal employed 66,619 people across the globe, and their mission
is to continue to diversify their human resources as much as possible. They
published a diversity report of its employees in 2010 the first ever published in
France and pushed the importance of acceptance of diversity in a workplace,
creating value and enrichment in their working environment. LOreal also recruited
young graduates from BRIC markets which are Brazil, Russia, India and China, and
created My Learning, an internet platform which trains employees in tailor-made
ways with specific requirements for each individual job.
Some of LOreals main capabilities are its ability to cater products to different
ethnic backgrounds, as well as its advanced R&D in these skin types. For this reason,
they are able to venture into untapped markets. LOreals constant innovation and
cutting edge technology puts them at the top of the market. They have recently
conducted the first ever stem cell research for makeup purposes. They also triumph
over other companies in terms of marketing and brand management they are able
44
to keep marketing its best products to keep them at their customers favorites lists.
Also, last but not least, its financial capabilities are also astounding they reduced
their debt/equity ratio by 14.1% in a year, as well as reduce its net debt from 1950
million Euros to 41 million in a year.
Current Issues
45
from its worldwide presence. LOral brings powerful marketing, distribution and
R&D synergy to the Clarisonic agenda, added David Giuliani, CEO and co-founder
of PBL. LOral shares our vision for ingenuity and dedication to quality. Combining
forces, were confident Clarisonic will rapidly achieve its global mission to provide
the power to change the future of your skin. The merger is subject to approval of
PBLs shareholders and other conditions, and is expected to close in December.
strong attachment to the cosmetics major group and its future development. The
family controls 30.9% of L'Oral's capital with Nestl holding 29.7%. Francoise
Bettencourt said the court's decision regarding her mother in no way affected the
agreement reached in 2004 between the family and Nestl. The 2004 accord
envisaged that up to 2014, each would have a right of pre-emption over the shares
of the other. Following the court ruling, L'Oral's shares moved up 2.1%.
46
European
edition
of
the
Sustainable
Cosmetics
Summit
(www.sustainablecosmeticssummit.com/Europe). Taking place in Paris from the 28th30th of November, the summit will bring together leading organizations involved in
sustainability in the beauty industry to debate key industry issues. Rising oil prices
and dwindling supply are leading many companies to turn to plant-based feedstock
for cosmetic ingredients. However, this development raises many questions about
sustainable harvesting, processing and use of such ingredients. The Sourcing and
Using Sustainable Ingredients session discusses such concerns. Romain Ruth, CEO of
Florame, discusses the pitfalls and challenges of sourcing raw materials from
developing countries. Another paper by AAK looks at the complexities of sustainable
sourcing of commodities, such as vegetables oils. Other speakers will discuss the
sustainable use of plant feedstock, deriving novel actives from food crops, and major
green certification schemes.
48
Strengths
Positive social responsibility image: campaign for the fight against ovarian
cancer, partnership with WIN (women in need) to help women achieve their
goals through workshops
Increase in operating profit from 2009 to 2010: they are doing well, despite
the economy.
Dividends have increased by 20 percent in 5 years: attractive to shareholders
Weaknesses
50
blurring of the
company image
/ External Environment
Opportunities
Market development in untapped countries such as Korea and the South East
Technological advancement creates new markets and advertising medium
opportunities: social media, online website
Growing demand for beauty products (trend): hairstyling, color, skin care, and
perfumeries
Growing affluent market
Growing aging market in Western countries
Growing market in developing countries (Asia): aspiring customers in
emerging markets
Men growing interest in beauty
Cultural growing interest in aesthetic beauty
Growing concern for UV protection and minimize aging of skin
51
Threats
52
/ TOWS MATRIX
Strengths
Weaknesses
S1 strong brand image and brand awareness W1 Internal family disputes on heritage and
locally, and internationally.
company control
products.
products.
weaken image.
markets.
S5 Strong advertising
company.
of company.
S8 Increase in operating profit means strong W6 Continuous innovative ideas and products
management.
53
Opportunities
SO Strategies
WO Strategies
East
(market development)
website
French roots
penetration)
countries
54
Threats
ST Strategies
WT Strategies
1. Use strong advertising in campaign against 1. Sell-off some brands that are less profitable
pharmaceuticals
plastic surgery
(Divestiture)
companies) to increase Western market share economies of scale, domestic production, and
better management.
spending
55
Recommendations
/ Market Development
Use worldwide brands and distribution to expand to other countries
such as Thailand, Saudi Arabia, and Vietnam.
56
Expansion of one brand helps the expansion of the other brands in the
market easier.
Can attract investors and shareholders from the new markets: Saudi Arabia
shareholders for example.
Online training means no need for people from headquarters to relocate to
growth markets.
Can market existing products, no need for additional innovation and R&D
since those products will already be new to these markets.
57
/ Market Penetration
59
This means there will be a need for a change strategy: for such a big
company with so many different divisions the change strategy approach will
need at least two phases:
The first phase will be the Board of Directors that will need to agree on
the strategy and then impose a schedule (force strategy) to implement
the strategy for all the different division heads.
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/ Implementing Change
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Citations
i
http://strategyonline.ca/2008/06/01/tributeloreal-20080601/
ii
http://www.cosmeticsdesign-europe.com/Business-Financial/L-Oreal-unveils-three-pronged-
strategy-for-future-growth
iii
http://www.loreal.com/_en/_ww/html/our-company/mission.aspx?
iv
http://www.csrglobe.com/login/companies/loreal.html
http://www.cosmeticsdesign-europe.com/Business-Financial/Report-slams-L-Oreal-
management-and-predicts-tough-2009
http://www.article13.com/A13_ContentList.asp?strAction=GetPublication&PNID=112
http://www.article13.com/A13_ContentList.asp?strAction=GetPublication&PNID=191
http://www.greenbook.org/marketing-research.cfm/high-end-cosmetics-trends-in-china
http://www.skininc.com/spabusiness/trends/27240294.html?page=1
http://beauty.about.com/od/makeuptrickstips/a/beautrend.htm
http://www.sltrib.com/sltrib/money/51028456-79/cosmetics-industry-marketproducts.html.csp
http://www.fda.gov/Cosmetics/default.htm
http://www.csrglobe.com/login/companies/loreal.html
http://www.loreal.com/_en/_ww/html/our-company/mission.aspx?
62