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INTRODUCTION
French cosmetics giant & uncontested world leader Built a portfolio of brands from many cultures Offices in more than 130 countries In 2012 half of its sales came from new markets outside Europe and North America 18.4% sales growth in Asia Pacific region and17.6% in Africa and Middle East Management team strongly rooted in home culture
Trends at Loreal
Maintains a steady stream of new products to extend market share Highest expenditure in R&D among all its competitors Global symbol of fashion and sophistication Technical innovation and local responsiveness Maintain brand value
Major Concern.
Global integration vs local responsiveness in global markets Achieving economies of scale and scope requires integration of activities along with adaptation to local conditions Requires complex market knowledge Tacit knowledge works within national boundaries Leads to misinterpretation of messages when it cross borders
Advantages of Multiculturals
Recognizing new-product opportunities Preventing losses in transalation Integrating outsiders Mediating with bosses Bridging differences between subsidiaries and headquarters
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