Case Type: improve profit/bottom line.
Consulting Firm: Accenture 2nd round job interview.
Industry Coverage: Healthcare: Pharmaceutical, Biotech & Life Sciences; Cosmetics & Beauty Products; Consumer Products.
Case Interview Questions #00055: Your client L’Oreal Group (Euronext: OR) is the world’s largest cosmetics and beauty company. With its registered office in Paris and head office in the Paris suburb of Clichy, Hauts-de-Seine, France, L’Oreal produces and sells various cosmetics products in several European countries. The company’s different brands are well established in the markets. The various products are quite similar in terms of raw material and production.
The company has been doing very well in the past, however profits have been shrinking in recent years. The Chairman and CEO of L’Oreal Group is thinking of changing his strategy in the industry. He asks you if this is a good idea and what they should do. What recommendation would you like to give him?
Additional Information (to be given to you if asked):
- Many small to medium size companies, and few big companies own several brands.
- Many small to medium size brands comprise the market in the cosmetics and beauty product industry.
- L’Oreal produces all products in all countries; transportation costs are small (see operational part).