Culture, strategy and client orientation...The "Competitive Fitness of Global Firms 2001" study positions L'Oréal amongst the most successful groups.
As in the previous years, the 2001 version of the survey *"Measuring the Competitive Fitness of Global Firms 2001" is very good news for L'Oréal. Bright results: on average, over 4 years, L'Oréal (together with 4 other international groups) has obtained the highest score as Best of the Best among global firms.
A Major Survey …
This ranking arises from an international research program, conceived and directed by INSEAD Professor Jean-Claude Larréché. This survey screened the 2001 performance of 309 international groups covering 8 different business sectors. Almost 1000 managers provided details on their actions in a comprehensive questionnaire.
… measuring the Quality of Management
The method used aims at evaluating the fundamental capabilities which influence the effectiveness of a firm in its market. Rather than on key ratios, this survey is based on criteria such as strategy and management. The quality of the policies adopted is evaluated across 12 large themes (mission and vision, client orientation, organization and system, innovation and so on) and the individual marks are integrated in a global score on a scale from 0 to 100.
Consistency and Endurance
For the year 2001, the global index of L'Oréal reached 73. This score is to be seen in relation to the general average of the firms surveyed; taking all sectors together the score is 65. L'Oréal's plus is the fourth place in the theme related to corporate culture, which shows that throughout the "L'Oréal planet" people share strong values and beliefs! The Group is therefore in "pole position" among corporations of French stock. Above all, its performance is consistent. In the 4 years covered by the survey, L'Oréal consistently ranks among the top 5 best world firms in 8 out of 12 fields and ranks 1st in 3 such fields: mission and vision, performance, marketing actions.
A leader in its sector
Finally, the examination of the results relating to the consumer goods sector (average: 66) is equally positive. In this particularly competitive sector, L'Oréal stands out for its high ranking in terms of corporate culture, forecasts and strategic foresight as well as performance (effectiveness of its actions). Following that …
*"Measuring the Competitive Fitness of Global Firms 2001", by Jean-Claude Larréché, INSEAD. Study published by Financial Times Executive Briefings, in association with Strat-X.