NEW YORK, NY - Unlike other business competitions, this isn't just about writing a business plan. It's about living the business. L'Oréal's e-Strat Challenge is a fast-paced, online competition that allows students across the world to put their managerial, strategic and critical decision-making skills to the test.

At the start of the e-Strat Challenge, participating teams of three students each are put in charge of a virtual cosmetic company with a portfolio of brands. Their task: develop a business strategy, invest a limited pool of resources, react to "real world" business dynamics like stock fluctuations, price escalations or other variables - and deliver value to shareholders at the end of the day. Last November, 36,354 students from over 2,100 universities in 125 countries registered for the 2004/2005 L'Oréal e-Strat Challenge.

Now, after 6 rounds of play, two teams of students from U.S. colleges - one at the MBA level and the other at the undergraduate level - have emerged victorious from the U.S. phase of the competition. MBA team Kellocos from the Kellogg School of Management at Northwestern University, and the NTUSooner undergraduate team from the University of Oklahoma, bested competitors from leading colleges and universities across the U.S. to prove their ability in navigating the business realities of a cosmetic company in the virtual world.

The Kellocos and NTUSooner squads will now head to Paris to compete in e-Strat's international finals on March 31st, , where they will take on seven other teams from the most prestigious colleges in Europe, Asia and beyond. Team Kellocos' members are Canadian born Patrick Lortie a graduate of the Ecole Polytechnique de Montreal, Harvard graduate Zeynep Postalcioglu, a native of Istanbul, Turkey and Thomas Schoenwaelder of Hamburg, Germany, also a Harvard Graduate. Taiwanese natives Lin Chi, Yun Niu Chen and Kuan-Wei Lu joined to form team NTUSooner.

All six U.S.-based students say that the e-Strat competition has been both intellectually and personally rewarding. "The Challenge is one of the most realistic business simulations we have ever played," said team Kellocos. "Unlike simpler simulations, where the inner workings become clear fairly quickly, the complexity of e-Strat made the simulation significantly more true-to-life."

The Competition
As they strategized and maneuvered their way through the complexity of running a business, the students made an average of 1000 critical decisions. The emphasis was squarely placed on teamwork, leadership, quick-time decision making skills, strategic thinking and business acumen. This year's Challenge also included a significant new feature: how Corporate Social Responsibility decisions have an impact on the bottom line.

The first five rounds of the competition were conducted solely online. Teams and their members were responsible for addressing a number of business concerns on product development, production, pricing, marketing, communications and product positioning. In the end the semi-finalists were determined by the value of the stock price of their virtual company. These remaining teams were tasked with developing a business plan. They were asked to demonstrate the production, marketing and financial objectives for their company, and explain the strategies and tactical decisions they planned to deploy to realize the objectives.

On March 31st the 16 regional winners from around the world, will meet face to face for the first time to present and defend their business plan before an executive board of directors comprised of senior L'Oréal business executives and key outside officials from the academic, journalism, consultant and investment arenas. Ultimately, winning the contest will all come down to the strength of the presentation, the strategy that supports it, the clarity of this communication and the power of persuasion. Winners of the MBA and Undergraduate divisions will be announced that evening.

First place winners in both divisions will receive a trip for each team member to the destination of their choice. Second and third place winners will receive the latest, techno-cool gadget.

E-Strat Challenge
Now in its fifth year, the L'Oréal e-Strat Challenge has become a much anticipated event on campuses around the world. It is just as keenly awaited by L'Oréal, which uses the e-Strat challenge as an active recruitment tool that reaches thousands of students of diverse skills, talents and backgrounds from across the globe. Since the game first started in 2,000, L'Oréal has hired 126 e-Stratters from 25 different countries.

For more information on the competition log on to www.e-strat.loreal.com.

Note to Editors

L'Oréal USA, headquartered in New York City, with annual sales of around $4 billion and 7,600 employees, is a wholly owned subsidiary of L'Oréal SA, based in Paris. L'Oréal USA has Research & Development, Manufacturing, Distribution and Administration facilities across eight states in the U.S., including New Jersey, New York, Kentucky, Arkansas, Illinois, Ohio, Colorado and Georgia. L'Oréal USA is the L'Oréal Group's largest affiliate, and accounts for more than one-fourth of the group's sales.

L'Oréal's impressive portfolio of global brands includes Lancôme, Giorgio Armani, Shu Uemura, L'Oréal Paris, Garnier, Vichy, Biotherm, La Roche Posay, L'Oréal Professionnel and Kérastase. New York is a base for the product development, international marketing and advertising of L'Oréal's six American brands which have been progressively globalized: Ralph Lauren, Kiehl's Since 1851, Maybelline New York, SoftSheen.Carson, Matrix and Redken 5th Avenue NYC

L'Oreal

L'Oreal

A worldwide leader in the cosmetics industry, L'Oréal develops innovative products to meet the diverse needs of customers in 130 countries worldwide. Over 3,000 people work in the Group's 14 research centers, located in France, Asia and America. Their findings are responsible for the registration of hundreds of patents annually. Women represent 55% of the research workforce - a percentage unmatched anywhere else in the industry. www.loreal.com

 

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