Operations Management and Loreal Case Study Example | Topics and Well Written Essays - 2500 words

Operations Management and Loreal - Case Study Example The analysis of the report shows the absolute advantage of L'Oreal in terms of its sale and market share in the industry. To emphasise the competitiveness, the report presents a comparative study of L'Oreal with some of its rival companies. To a major extent the profit of a company depends how aptly the aforementioned tasks are carried out. If the effectiveness of the company in managing these operations is more then it will cost less and consequently it will reap a larger profit. And this entire mechanism once done helps a company to achieve a distinct competitive advantage with lower costs and better quality. This study is confined within the cosmetic industry since it is one of the burgeoning industries in today's world. The cosmetic industry today is a $29 billion business whose aggressive marketing and advertising efforts have forged a powerful trajectory of continued growth. According to the manufacturing census data on toilet items, "sales of cosmetics in 1900 stood at about $100,000." Thereafter, the cosmetic industry emerged and rapidly expanded, as "women's growing interest in beauty products coincided with their new sense of identity as consumers." Around mid-1920s, retail cosmetics sales were estimated at about $125,000,000 per year and about $150,000,000 in 1940. (Daum C.M.L., May 2006) The target company taken for analysis is the world's largest cosmetic company L'Oreal. With top cosmetic brands like Garnier, Maybelline, Lancme, Ralph Lauren, Cacharel and Matrix in its portfolio, L'Oreal stands as a notable brand. Its only hurdle was to penetrate in the Indian market where Lakme enjoyed a monopoly, but has managed to cross that hurdle with ease. Literature Review Operations management plays a key role in making an organisation's potential to grow evident in any industry. It is the area that is concerned with the efficiency and effectiveness of the core operations of an organisation to support strategic goals of its business. Operations management also forms an important area in the academic field of business management. This field of study has been gaining tremendous attention and development for the last couple of decades. Supply chain management decisions constitute a crucial part of a company's. long run planning. Understanding of the domain and carrying out an analysis of a company, demands a brief literature review on supply chain management. Theories of Halldorsson, Ketchen and Lavassani on SCM provide a base for further research