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We address the following research questions: (1) Is the innovation trajectory of the acquirer affected by previous acquisitions? (2) In which direction knowledge recombination from the acquisition is pushed further? (3) Is the technological acquisition more a means for knowledge exploration and radical innovation or, on the contrary, a way for consolidating previous technological specialization?

The nature of this study is exploratory; therefore, we opted for an inductive approach based on the L'Oréal case study analysis. Data were triangulated from different sources: (a) the L'Oréal website and press releases collected in the 2009–2015 period; (b) journal articles and books on the global cosmetics industry and the insightful work of Jones (2010); (c) the Questel Orbit database containing data on patents; and (d) the Zephyr – Bureau van Dijk database containing information on the acquisitions of firms.

Empirical evidence from a patent data analysis reveals a paradoxical path. On the one hand, acquisitions enable the company to explore new technological spaces; on the other hand, they allow it to reinforce a preexisting technological trajectory, even when the knowledge base of the target is distant from that of the acquirer. Thus, in our case study, the absorption and recombination of knowledge from a variety of domains support specialization more than diversification technology strategies.

We add to innovation management literature a new perspective, by offering a detailed analysis, through patent data, of the knowledge recombination process, led by technological acquisitions.

This research develops value stream mapping (VSM) for L'Oreal's artwork process, to eliminate waste, reduce lead time and identify stages that can be automated, which makes the process less prone to human error and more responsive to fulfilling business-to-business customer requirements. In addition, amendments frequently occur slowing down the artwork process. In this context, VSM is applied to L'Oreal's artwork process to reduce lead time, human error and missed deadlines.

This study uses data from L'Oreal's artwork tracker from 2018–2019, which is manually tracked by the launch team. The service level agreement and task time data have been collected from 12 employees representing the launch, factory and marketing teams working on the artwork process. Qualitative feedback was also obtained from nine employees to validate the VSM for L'Oreal's artwork process.

VSM identified stages that can be streamlined and automated in L'Oreal's artwork process, which makes the process more efficient and responsive to changing scope of the artworks. 50% of the stages have been eliminated from the manual artwork process, resulting in a reduced lead time of 10.5 days and a reduction of 28% spent on the process. This allows the artwork process to be more agile to the requirements of business-to-business customers. The proposed VSM shows a 73% increase in value-added time for a renovation and a 75% increase in value-added time for new product developments.

VSM has been specifically designed, developed and analyzed for L'Oreal's artwork process, in order to make the process more efficient and responsive to business-to-business customer’s requirements.

The purpose of this paper is to describe how one company built and sustained market leadership by implementing a market‐oriented business strategy involving defensive and offensive management.

With an historical approach, this article examines how L'Oréal's Consumer Products Division increased its dominance in its domestic cosmetics industry. Data were extracted from the IRI Census Database (retail panel data). Some data, as they remain confidential, were not included in the paper.

The transition from an offensive to a defensive management style (and vice versa) is part of the dialectic in relations between the company and its environment, including consumers (demand), competitors (their behaviour in the market) and market conditions (growth, stability, decline) in an extended sense (see Kohli and Jaworski).

The joint management of offensive and defensive market‐oriented strategies leads to enhanced competitive positioning and increased market share of a portfolio of brands and products.

The trade‐off between offensive and defensive management, involving whether managers are influenced by or influence the structure and the behaviour of market players, depends on their mental disposition toward challenges in increasingly competitive mass markets.

Prior discussions of offensive and defensive management approaches have remained mainly theoretical. Through the illustration of the undisputable leader of the cosmetics sector, this study offers a practical example that can help companies reconsider how they differentiate themselves from competitors with respect to market conditions. This case offers an initial investigation of offensive and defensive management.

This study enables to critically assess: what constitutes the consequences of a financial crisis to a multi-national enterprise operating in the emerging market of Russia; the decision-making processes behind crisis management and the corresponding search for informational grounds to be used as decision justification; and the role of sustainable development in times of crisis.

During the 2014–2015 financial crisis in Russia, L’Oréal Russia managed to increase growth by 7%–15%, strengthening its place as the market leader in the country. First, the case illustrates the way Antonio, the General Manager of L’Oréal Russia, had successfully approached this situation by learning from the shortcomings of the company’s strategy during the 2007–2008 crisis and deciding to take a proactive position concerning stakeholders. Then, upon recalling his success story, Antonio suddenly found himself at the dawn of yet another crisis caused simultaneously by the COVID-19 outbreak and oil prices drop. In the face of uncertainty regarding the applicability of prior crisis management strategy for the new economic and social reality of Russia, Antonio was worried about whether the company would be able to achieve the 2020 sustainable development goals of L’Oréal by the end of the year. The case dilemma involves choices Antonio faced during mid-March 2020 about strategy formulation based on an adjustment to the expected consumer behavior patterns and possible need to rethink sustainable development goals priority.

This case is appropriate for an undergraduate or graduate-level program curriculum for courses dedicated to or including topics related to crisis management, doing business in emerging markets, corporate social responsibility and consumer behavior. Before engaging with the case, the students should be aware of basic management- and economics-related concepts and terms, such as strategy, sustainable development, CSR and economic crisis.

Teaching notes are available for educators only.

CSS 11: Strategy.

The purpose of this article is to describe the rationale behind and analyze the results of a strategy in regards to changing conditions and market share dominance. For more than 20 years, with the growth in available product varieties, product and brand proliferation have become increasingly evident in many consumer markets.

This article examines how three L’Oréal mass market businesses, i.e. L’Oréal Paris, Lascad and Gemey-Maybelline-Garnier (GMG), managed proliferation activities between 1988 and 2012 on their domestic market. Data were extracted from the information resources, inc. (IRI) Census and Sample Databases (retail panel data), and information was collected from internal sources and semi-structured interviews with top executives. Brand performance was assessed using panel data structure analysis, as recommended by IRI and Nielsen. Some data, as they remain confidential, were not included in the paper.

The study reveals that when opportunities are lacking, demand is declining, and competition is fierce – the situation that marks most mature markets – a proliferation strategy actually can yield diminishing results and reduced brand dominance.

Offering broader lines appears to generate confusion and to be counterproductive in relation to theoretical assumptions. Additional research on proliferation strategies is needed, particularly in declining market conditions, which implies diminished demand and market saturation due to increased competition and isomorphic practices.

When deciding to extend product lines, managers should take into account competition and more qualitative factors than those included in the models developed by and for store brands. The respective positioning and marketing strategy (i.e. challenger and leader) of the brands involved have also to be considered.

Prior research on proliferation strategies has relied on strong assumptions such as increase in demand and unsaturated markets. Through these case studies, this article shows that making the shelf space denser affects brand dominance, particularly when market conditions change. These results challenge current thinking as, in facing internal and external contingencies, managers might think which scenario is most favorable for maintaining a dominant position: changing the structure of the market by reducing (i.e. concentration) or increasing the number of brands/products in the market.

This paper aims to explore the relationship between the various variables present in the packaging plastic waste management system in the cosmetics industry.

In this paper, the authors deal with plastic packaging waste in the cosmetic industry with the help of system dynamics. The model broadly divides the system into six sections – Cosmetic Packaging, Waste Generation, Waste Collected, Waste Sorted, Waste Treated and Waste Dumped. Businesses have been investing in each section depending on their progress and targets. The authors are looking at case studies of two leading cosmetic brands, L'Oréal and L'Occitane en Provence, to validate the industry practices against our model.

From a business perspective, using the case study methodology for L'Oréal and L'Occitane, the authors inferred that out of the various investment vehicles available, companies are targeting technological advancement and third-party collaborations as they have the potential to offer the greatest visible change. However, most of these investments are going toward the treatment subsection. Still, there is a scope for improvement in the collection and sorting subsystems, increasing the efficiency of the whole chain.

There has been a lot of research on packaging plastic waste management in the past, but only a few of them focused on the cosmetic industry. This study aims to connect all the possible variables involved in the cosmetic industry’s packaging plastic waste management system and provide a clear output variable for various businesses looking to manage their packaging waste because of their products efficiently.

The current paper aims to explore how brand coolness can mediate the relationship between tactical green marketing orientation (GMO) and willingness to pay (WTP), by exploring the differences between two global brands with opposite green marketing perceptions.

Based on the stimuli-organism-response (S-O-R) framework, the relation between tactical GMO, brand coolness and consumer's WTP is examined through a survey with 272 participants, who gave their perceptions about two different brands regarding their green orientations: British Petroleum (BP) and L'Oréal. The variable set was adapted and validated through focus group sessions.

Brand coolness is found to mediate the impact GMO on WTP and, for both brands, green marketing does affect the extent to which brands are perceived as cool by consumers. More importantly, evidence shows that only in the case of the “green brand” (e.g. L'Oréal), the impact on WTP is significant, which offers new implications regarding the outcomes of companies' pro-environmental policies.

This study is the first to investigate the outcomes of GMO over consumer's intentions (WTP) and the role of brand perceptions (coolness). The effects are compared between two global brands, with significantly different perceptions on their environmental sustainability.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting‐edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Companies operating in mass markets have to ask themselves lots of questions about the importance of innovation. Innovation is a key factor in encouraging growth but this always has to be balanced with the importance of satisfying existing consumer needs. In other words, a firm sometimes has to concentrate on adapting to market conditions, but sometimes it will seek to change those conditions.

The paper provides strategic insights and practical thinking that have influenced some of the world's leading organizations.

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to digest format.

This paper aims to operationalize and to test the ARCTIC (A – Advantage, R – Relatedness, C – Complexity of Competence, T – Time of Integration, I – Implementation Plan, C – Cultural Fit) framework to assess the prerequisites of competence-based synergy in the acquisition process. The current research provides new analyses of recent acquisitions in the global beauty industry where the ARCTIC framework was satisfied and where the ARCTIC model was NOT satisfied by decisive factors to get the acquisition's synergies. It allows readers to contrast two case studies and grasp how the framework works in greater detail.

The current research relies on an extensive archival search that included financial statements, annual reports, internal documents, industry publications and CEO statements to get at a micro-level understanding. This boosts research data and the operationalization of the ARCTIC framework.

The research identified four steps for investigating whether core competence transfer in an acquisition process would be a source of competence-based synergies. The incorporation of real options into the synergy valuation measures market value-added arising from M&A deals.

The current paper contributes to theoretical and practical issues of global M&As as part of the existing literature of international business and strategic management. The impact on reciprocal synergies of agency problems, external interaction between CEOs in M&A deals, corporate governance systems and an executive compensation theory are promising areas of future research.

El presente artículo pretende poner en práctica y a prueba el esquema ARCTIC a fin de evaluar los requisitos previos de la sinergia basada en las competencias en el proceso de adquisición. Este estudio ofrece nuevos análisis de las recientes adquisiciones acontecidas en el sector de la belleza a nivel mundial en las que se siguió el esquema ARCTIC y en las que NO se siguió por factores decisivos para conseguir las sinergias de la adquisición. Permite a los lectores contrastar dos casos prácticos y comprender con mayor detalle cómo funciona el esquema.

Para el estudio actual se ha llevado a cabo una amplia búsqueda de archivos entre los que se incluyen balances financieros, informes anuales, documentación interna, publicaciones del sector y declaraciones del director general para obtener una comprensión pormenorizada. De este modo, se potencian los datos de la investigación y la puesta en práctica del esquema ARCTIC.

En el estudio se han identificado cuatro pasos que determinan si la transferencia de competencias básicas en un proceso de adquisición sería el origen de sinergias basadas en las competencias. La incorporación de opciones reales en la evaluación de las sinergias mide el valor añadido del mercado derivado de las operaciones de fusión y adquisición.

Este artículo contribuye a los aspectos teóricos y prácticos de las fusiones y las adquisiciones mundiales como parte de la bibliografía existente sobre comercio internacional y gestión estratégica. El impacto de las sinergias recíprocas de problemas del agente-principal, las interacciones externas entre directores generales en acuerdos de fusiones y adquisiciones, los sistemas de gobernanza empresarial y una teoría de la compensación ejecutiva son campos prometedores para futuras investigaciones.