L'Oreal company case study: Management and performance

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L'Oreal company case study: Management and performance

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Abstract

L'Oreal, the global leader in the cosmetics industry celebrated its 100th anniversary in 2009. The group's history began in 1907 with the development of a formula for hair dye. That was when L'Oreal was launched officially. It is the world leader in cosmetics today.

As part of a study, the factors that have allowed L'Oreal to be the market leader despite being surrounded by competitors will be analyzed. L'Oreal's activities are varied; and hence, it is pertinent to develop a value chain through its strategic business areas.

L'Oreal's products for its customers can be segmented as: for the general public, for professionals and luxury items. Since L'Oreal is the market leader in cosmetics, one will need to draw a value chain to understand the various things that determine L'oreal's capacity to obtain a competitive advantage.

Value creation allows the subdivision of the business into two categories. These categories are: principal and main functions, and their support functions. Main functions involve the product range and services, and contribute directly to value creation. They have five important deliverables: Procurement, production, logistics, marketing and service. Support functions improve the effectiveness or efficiency of the main functions. They are the ones that bind and connect the main activities. They contribute indirectly to value creation.

Human resource management is taken very seriously by the company. L'Oreal makes every effort to adhere to all its employees to the company's projects. As evidenced by this sentence of Lindsay Owen Jones "Thanks to the support of our employees that we have a 2-digit growth”.

In addition, L'Oreal has established a strong corporate culture with formalized values.Widely disseminated in order to involve all staff.The company has a policy of highly effective recruiting
with the aim of providing the best of each service.

For example, L'Oréal recruits direct future product managers from the best business schools. The company also multiplies the original recruitment campaigns that can change the profiles. Thus each year about 500 new employees are hired following the internet campaigns (on second life, forum ).

L'Oreal to promote motivation and efficiency of its management group uses many internal promotion and also transfers them between branches often to keep them constantly under pressure. All these methods promote employee productivity. In addition, L'Oreal form their careers throughout, but especially its officers during their first 3 years in the business so they are quick to assimilate the culture and effectiveness of L'Oreal.

The company has seen its financial site named the best financial web site in Boursorama. This is a major advantage, because the disclosure of a large listed company is extremely important. It will allow the company to persuade potential shareholders and support the share price.

These additional funds will be used to support various business activities and promote its development, new strategies etc. The leaders were able to perfectly organize a giant multi-brand to make it the best. Thanks to the mobility of managers, internal promotion and the recruitment of high potentials.

L'Oreal now has more than 2000 research staff. Perpetual innovation, new product releases are constant. Innovation keeps the company a step ahead of competitors (including MDD).

Tags : L'Oreal company; strategy analysis; management and performance

Introduction
Explanation, in general, the performance of L'Oreal
The value chain
1. Support Activities
2. Main activities
The Porter's five forces
1. The bargaining power of suppliers
2. The bargaining power of customers and distributors
3. The rivalry between existing competitors
4. The threat of new entrants
5. The threat of substitute products
The key success factors
1. SBU: Consumer Products
2. SBU: Professional Products
3. SBU: Luxury
The competitive position
SWOT model
1. Diagnosis of internal strengths and weaknesses of L'Oreal
2. Analysis of opportunities and threats affecting the company
3. Deepening of the external diagnosis according to the 5 forces of Porter
4. The main strengths, weaknesses, opportunities and threats
5. SWOT grid proposals
The Human Resources Department at L'Oreal Description of the organization of the HR function The key points of the HR policy for L'Oreal:
1. Recruitment
2. Training
Strategy, culture and fashion animated men
Strategies
1. A differentiation strategy
2. A vertical integration strategy
3. A diversification strategy
The structure
1. The operational center
2. The strategic apex
3. The strategic Technostructure
4. Logistics support functions
Corporate culture
1. Different sources of cultures
2. Culture in the service of the company
3. Ethics, Values and Principles
4. Managing Diversity at L'Oréal
The animation of men
1. The authority
2. Influence of the orientation leaders
3. L'Oréal and adhocracy
4. Background
5. Description of features of the structure adhocratic found for L'Oreal
Study of the Management Development Center
Strengths and weaknesses of the MDC Latin America
Recommendations
Conclusion

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[...] Les ordonnances qui entrent en vigueur dés leur publication doivent faire l‘objet avis du CE, avoir été délibérées en Conseil des ministres et être revêtues de la signature du Président de la République. Ce dernier point a alimenté une controverse née pendant la première cohabitation du refus opposé par F. Mitterrand à la signature de 3 ordonnances: sur les privatisations, le 14 Juillet 1986, sur le découpage des circonscriptions électorales le 2 Oct 1986 et sur l‘aménagement du temps de travail le 17 Dec 1986. La controverse sur la signature présidentielle Pour les uns le Psdt est dans un cas de compétence liée, il doit signer les ordonnances. [...]

[...] légifère: Ppe de l‘irrecevabilité prononcé par le gouvernement une possibilité pas une obligation) 41 de la 86-284 DC, Conseil de la Concurrence- 23 Janvier 1987: le Parlement peut modifier une ordonnance alors que le délai d‘habilitation n‘est pas encore expiré. De l‘expiration du premier délai à celle du second A l‘issue du 1er Délai: les ordonnances publiées gardent leur valeur réglementaire avec les csqces qui attachent, mais comme le Parlement a retrouvé toute sa compétence, elles ne peuvent plus être modifiées que par des lois, au moins pour leur disposition de nature législative. Le gouvernement à leur égard peut interroger le CC en vertu de l‘art. 37-2. [...]

[...] Idem pour les lois de financement de la Sécurité Sociale (délai de 50 jours). Le gouvernement pas encore été dans la nécessité de telles ordonnances. Comme aucune ratification n‘est prévue à leur propos, ces ordonnances ont une valeur réglementaire. Les ordonnances sur habilitation constitutionnelle L‘Art.92: permet au gouvernement de prendre, pendant les 4 mois qui ont suivi la promulgation du nouveau texte constitutionnel, les ordonnances ayant force de loi pour la mise en place des institutions et prodéder aux ajustements “nécessaires à la vie de la nation, à la protection des des citoyens et à la sauvegarde des libertés“. [...]

[...] En définitive l‘opposition présidentielle n‘est pas une faculté d‘empêcher mais une faculté de retarder. Ajoutée aux exigences du CC, la vigilence du chef de l‘Etat montre que le chemin des ordonnances est malaisé et encombré. Le régime juridique des ordonnances Les ordonnances sont des normes hybrides qui empruntent leur forme au règlement et leurs matières à la loi. Les ordonnances peuvent être regardées comme de simples actes de l‘autorité réglementaire, tantôt prendre une valeur législative en fonction des deux délais qui rythment leur existence. [...]

[...] LES ORDONNANCES DE L‘Art DE LA Le régime actuel a institué les ordonnances de l‘Art (mm mode d‘élection et mm nature juridique des anciens décrets-lois). + de 30 applications depuis 1958. La procédure d‘habilitation des ordonnances de l‘art La possibilité conférée au gouvernement d‘intervenir dans le domaine législatif est suspendue à une loi d‘habilitation du Parlement qui, sur des sujets concernés, dessaisit ce dernier temporairement mais entièrement du pouvoir législatif. La procédure d‘habilitation Le CC a veillé avec soin au respect des conditions fixées par l‘Art.38. [...]

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