Yue Sai is L’Oreal’s troubled Chinese luxury brand. Alexis Perakis-Valat, the new CEO of L’Oréal China, has made it a point of honor to turn the brand around. He has asked Stéphane Wilmet, the brand’s new general manager, to come up with a turnaround plan that will restore L’Oréal’s reputation in China as the world’s best cosmetic marketer.

Kao is rated as one of the most innovative companies in Japan. Focusing on Kao's successful entry into the cosmetics business as an illustration, the case describes the internal management processes that lie at the core of the learning ability that supports innovation and creativity in this highly successful Japanese company.