Loreal Case Study

Week 8 Class Discussion Question Question 1 Response How do the programs discussed help build core competencies and competitive capabilities at L’Oreal? The core competencies are specific factors that a business identifies as being central to the way its employees work.

These include scientific knowledge, skills, and abilities and the resources available to a company. These are the basic areas of expertise on which a business is built. The core competencies of individual employees are those that make the expertise suitable for their job.The competitive capabilities are those skills and abilities that the employees must develop to give the firm a competitive advantage Gamble, Strickland, ; Thompson, 2010).

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At L’Oreal in relation to growth and development, there are four methods used. These are developing professional expertise, communications skills enhancement, improving managerial qualities and personal development, and developing partnerships with universities. Each of these methods helps develop the core competencies and competitive capabilities of employees at L’Oreal.Specifically, the development of professional expertise includes the training of employees in accordance with their training needs.

This includes a systematic training catalogue that gives the employee a roadmap which the employee must go through. The purpose of this training is to develop knowledge, skills, and abilities that are central to the way its employees work (L’Oreal, 2010). This is building of core competencies. Similarly, the development of communication abilities so that the person is able to express her opinions and ideas is critical to the way employees work at L’Oreal.For this the development of communication skills is important.

Further, “Transition To” training program prepares individuals for the challenges of managerial career at L’Oreal. The employees selected develop core competencies and competitive abilities at the “Transition To” training program. In essence, L’Oreal has established ties with certain universities in different parts of the world where training relevant to the core competencies required at L’Oreal can be imported to selected employees.One of the most important training programs at L’Oreal that develops core competencies and competitive capabilities is the Follow-up & Integration Track (L’Oreal, 2010). This program ensures that the employee learns the culture at L’Oreal, and the special cultural characteristics of each subsidiary. The employee is given field and product experience. In other words, the integration refers to the integration of the employee into the culture and the way of doing things at L’Oreal. Nevertheless, the integration process also means that the new employee becomes familiar with the products, the policies, and goals of L’Oreal.

The integration is a learning process of specific factors that are central to the way in which L’Oreal works. It is this training and development of core competencies that give L’Oreal competitive advantage. Its competitors are not able to imitate or match the performance of L’Oreal (L’Oreal, 2010). Reference Gamble, J. E. , Strickland, III, A. J. , & Thompson, Jr.

, A. A. (2010).

Crafting & executing strategy:  The quest for competitive advantage concepts and cases. United States: McGraw-Hill Learning Solutions. L’Oreal, (2010). L’Oreal. Retrieved from http://www.

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