8 Flashcards
The male cosmetic market is blooming and companies like L’Oréal should adapt strategies from female cosmetic market.
False.
Customers around the global share the same preferences when it comes to choosing cosmetics.
False.
The impact brought by cultural differences with regard to customers’ preferences may be reduced by globalization.
True.
Companies like L’Oréal should transform the product more and more to multitaskers.
False.
L’Oréal moved from the 71st position in 2012 to a top 10 ranking in Gartner’s supply chain list by 2020.
True.
L’Oréal’s e-commerce sales reached 75% of the overall sales in 2020.
False.
L’Oréal’s strategic pivot towards personalization has not significantly contributed to its success against Porter’s competitive model.
False.
One of L’Oréal’s approaches to countering the threat of new entrants is by acquiring tech startups.
True.
Cash flow is the lifeline of a company.
True
Most of the brands owned by L’Oréal Group are established by itself.
False.
Extensive brand portfolio of L’Oréal Group may lead to internal competition and cannibalization among its own products.
True.
Cyber-attack is not an important threat for cometic companies like L’Oréal.
False.
In recent years as Generation Z have entered the job market, they have become a big driver and consumer of the cosmetics market; especially in China.
True.
The culture of beauty was deeply rooted in China and also for the emphasis of skin care and protection.
True.
Non-Western cosmetic industry is quite similar as the mature European and North America market.
False.
Which of the following is NOT true about a the preferences for customers when choosing cosmetics?
a. There are some universal considerations that could help indicate customers’ preferences.
b. Considerations may vary among different culture groups.
c. Considerations are shaped by repeated exposure.
d. Globalization is not playing an important role in the future because of the inherent differences among culture groups.
e. It is important for companies like L’Oréal to get to know about customers’ preferences as they are trying to make predictions on demands.
Answer is d.
Which of the following is NOT true about the male cosmetic market?
a. It is currently growing at a fast speed.
b. It probably will continue to grow in the future.
c. Its scale is relatively smaller compared to that of the female cosmetic market.
d. L’Oréal has been playing an important part in this male market.
e. It shares all the features of female cosmetic market.
Answer is e.
Which of the following are NOT true about the way men use cosmetics?
a. Men tend to spend less time on appearance.
b. Men tend to favor time-efficient products.
c. Men’s motivation does not include making himself feel better.
d. Men value professionalism when applying cosmetics.
e. Men tend to favor multitaskers.
Answer is c.
Which of the following are ways that digitalization may help in the cosmetic company?
a. Digitalization can help identify culture groups and provide better demand prediction.
b. Digitalization can help better spot the opportunities created by globalization.
c. Digitalization can create time-efficient services.
d. Digitalization can identify preferences by forming databases.
e. All of above.
Answer is e.
What is one way L’Oréal deals with the increasing bargaining power of buyers?
a. Decreasing the production of personalized products.
b. Employing AI-enabled virtual testers to personalize customer journeys.
c. Increasing reliance on a single supplier.
d. Avoiding collaborations with tech leaders like Google and IBM.
Answer is b.
What role does data play for L’Oréal?
a. A driving force behind their strategic decisions.
b. It’s used only for external marketing purposes.
c. Just another statistic for annual reporting.
d. Only collected and never actually analyzed.
Answer is a.
How does L’Oréal counteract the bargaining power of buyers?
a. By reducing their product variety.
b. By focusing only on offline sales.
c. Employing AI-enabled virtual testers and personalizing customer journeys.
d. By partnering with only a single supplier.
Answer is c.
What is L’Oréal’s approach towards the bargaining power of suppliers?
a. Avoiding any interaction with suppliers.
b. Keeping a rigid, inflexible supply chain.
c. Focusing solely on local suppliers.
d. Reducing dependency on a single supplier and refining its supply chain.
Answer is d.
Which of the following is true about the strength of L’Oréal?
a. L’Oréal has steady and sustainable economic and financial performance.
b. L’Oréal has a strong international brand portfolio.
c. L’Oréal has a global distribution channel, industrial footprint, and network of Research & Innovation and marketing hubs.
d. L’Oréal invested heavily in technology to introduce innovative products and beauty tech.
e. L’Oréal implements an effective advertisement strategy including hiring celebrities and influencers, launching an emotionally charged campaign, and promoting on social platforms.
f. All of the above.
Answer is f.
Which of the following is NOT true about L’Oréal?
a) L’Oréal acquired Majic Holding to have access to the established distribution channels.
b) L’Oréal acquired Maybelline to open the US market.
c) L’Oréal adopted different product quality and safety management programs to its factories and subsidiaries around the world.
d) L’Oréal transformed LI Jiaqi from a Beauty Advisor at the counter of L’Oréal into a top influencer in China.
e) L’Oréal invested in beauty tech to create personalized products and services.
Answer is c.
Which of the following is NOT true about the opportunities for L’Oréal?
a. The percentage of E-commerce in total retail sales globally is in a growing trend.
b. The global trend of aging society is a huge threat to L’Oréal’s sales.
c. The sales of L’Oréal in Latin America, South Asia Pacific, Middle East, North Africa, Sub‒Saharan Africa are likely to grow in the future.
d. There is a significant need for beauty post-Covid.
Answer is b.
Which of the following is Not true about the external threat to L’Oréal?
a. Cyberattacks may cause malfunction or shutdown of systems, and the leakage or destruction of data.
b. Counterfeit products could damage L’Oréal’s brand reputation and image.
c. The competition for L’Oréal is not intense because L’Oréal is a giant in the cosmetic industry.
d. Economic downturns may reduce consumer spending and shift consumer preference.
e. Climate change would have some impact on L’Oréal.
f. The regulatory complexities may increase the cost and time of product development and limit the availability and use of certain ingredients.
Answer is c.
What’s the main categories of the cosmetic industry?
a. Skincare, makeup, haircare, fragrances, personal care, and hygiene.
b. Skincare, makeup, haircare, fragrances, and personal care.
c. Skincare, makeup, haircare, fragrances, personal appearance, and hygiene.
d. Skincare, makeup, haircare, personal care, and hygiene.
Answer is a.
The descriptions of Chinese cosmetic market are true except one?
a. Non-western beauty cultures especially Chinese, are becoming more influential, as a result of the shift from Western countries to Asian countries.
b. In 2022, North Asia is currently the leading cosmetic market worldwide.
c. China is the largest cosmetic market worldwide.
d. The e-commerce plays an important role in China’s cosmetic market.
Answer is c.
The descriptions of L’Oréal are true except one?
a. L’Oréal is the largest company (in revenue) in cosmetic market worldwide.
b. L’Oréal is the largest company (in revenue) in China’s cosmetic market.
c. L’Oréal established the brand Lancôme.
d. For twentieth century, L’Oréal move forward of its globalization progress and expansion into the Asian market.
Answer is c.
