MGMT7012 – Strategic Management Written Case Analysis

Assignment: Analyze one of the 4 cases discussed in Session 3.  Submit a Written Case Analysis based on the instructions in the Course Syllabus. 

Your analysis will be evaluated along the following dimensions: (a) Identification and prioritization of the central strategic issues in the case (a) Use of facts from the case (no external research) to support your identification and prioritization (c) Professional quality (clarity, grammar, spelling) of written work.

L’Oréal and the Globalization of American Beauty

On a muggy summer day in 2004, Philip Clough, president and CEO of Kiehl’s Since 1851, a small upscale cosmetics maker, was directing the placement of moving boxes around his business’s new office in a renovated warehouse on Hudson Street in lower Manhattan’s Greenwich Village. As Clough gave a tour of the group’s spare fifth-floor office space, there was little evidence that Kiehl’s represented one of the most radical experiments in the 97-year history of its corporate parent, Parisbased L’Oréal, the world’s largest beauty firm. L’Oréal USA purchased Kiehl’s in 2000 as part of a seven-year, carefully planned acquisition strategy.

The U.S. buildup was critical to the globalization of L’Oréal’s business, which had grown from 25,000 employees and $4 billion in revenues in 1988 to 50,000 employees and $14.3 billion in revenues in 2002. By adding popular American brands such as Maybelline, Redken, Matrix, SoftSheen-Carson, and Ralph Lauren Fragrances to its portfolio of French brands, L’Oréal had created an international brand portfolio for consumers with a wide range of incomes and tastes in 140 countries. 

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