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One mission: Make beauty universal

Offer to everyone, all over the world, the best of cosmetics in terms of quality. Offer products that are in harmony with the customers needs, culture and expectations.

1907-2008
1907
-Establishment as a hair color product company -Expansion to European countries by Multi-brand and Multi-channel

1980s
-Expansion to out of Europe by positive brand acquisitions -Keeping high growth rate: 10% (1988-2008)

2008

Companys settings

No.1 cosmetics group worldwide 23 global brands 25.8 billion in sales 130 countries 64,600 employees 674 patents files

The beauty competitors


Company 1 2 3 4 5 6 7 8 LOral Procter & Gamble Unilever The Estee Lauder Avon Products Beiersdorf Shiseido Johnson & Johnson Sales (Billion $) 25.8 19.8 15.5 7.8 7.6 7.0 6.4 5.8 Head office France US UK US US Germany Japan US

9 10

Kao Chanel

5.5 4.4

Japan France

A large portfolio of brands


PROFESSIONAL PRODUCTS CONSUMER PRODUCTS LUXURY PRODUCTS ACTIVE COSMETICS THE BODY SHOP

LOral Professional Products


"Beauty and Chemistry in Balance
(From Swahili) 1991 : brand development, hair care and treatment products targeted to the African American salon/stylist and their clientele 2001 : becomes a division of L'Oral USA Today : worldwide network of stylists in the UK, France, Netherlands and South Africa Technologically advanced products engineered to treat hairs

LOral Professional Products


Products : Hair and lifestyle products, perfume, fake eyelashes and handmade makeup brushes. Soon became one of Hollywood's favorite artists (1928 2007) - a Japanese make-up artist and founder of the Shu Uemura international cosmetics line. 1960 - Developed and launched his first cosmetics product. 1964 - opened Shu Uemura makeup school 1983 - Shu Uemura Cosmetics 2004 - sold to L'Oral

LOral creates a completely new market based on immaterial value: The Market of Beauty. A success story in developing a multicultural team synergy as a company culture value.

Rachida Brakni from Algeria

Aishwarya Rai from India

Diane Kruger from Germany

Dian Sastrowardoyo from Indonesia

Gong-Li from China

Liya Kebede from Ethiopia

Champoo Araya from Thailand

Meisa Kuroki from Japan

Aimee Mullins from the US

LOreal Loves Diversity

Diversities are Our Priority


Reflect the consumers diversity of origins within the teams at every level Ventes
French nationality International nationalities

24%

76%

DIVERSITIES ARE OUR PRIORITY


Promote womens employment.

Workforce 38 %
62 %

Managers 44 % 56 %

Committee Members 35 65 % %

Women

Men

The Creation Of Diversity Observatories


Personnel representatives, members of personnel management and employees.

Promote respect for diversity and non discrimination

The recruitment (employment, training and learning schemes) of employees with


a wide range of profiles

Training in sign language for teams who work with the hard of hearing. Awareness operations for employees focusing on certain criteria (mixed-gender, the
disabled)

Managing Diversity
A strong culture

FOCUSING ON ETHIC AND CULTURE AT LOREAL

Reflecting diversity

Ethical principles

Managing Diversity

The successful LOREAL WAY


( Multicultural Team Process of Adlers Model )

Entry stage: for trust and cohesiveness

Successful and efficient management

Trust among employees Work Stage (Diverging for creative sources)


High performance of multicultural teams at L'Oral

Diversity becoming an asset

Action Stage (Converging for practice)

Leads to an increased productivity

A Strong Culture
Embracing culture and short hierarchy
procedures.

Presence of a voluntary confusing structure to


promote autonomy and collaboration

Oral communication rather than written


procedures

Diversity is a core value of lOral

Ethical principles
Law respect Individual respect Consumer respect Environment respect Loyalty & integrity

Reflecting diversity
Diversity profiles will bring new perspectives
Focus on a managerial culture which fosters the inclusion of all employees and capitalise team diversity We are dedicated to understanding and serving

our customers with products specific to each


culture, each need

RECRUITMENT POLICY
Plan Espoir Banlieues.
Facilitate access to employment for young people
living in under-privileged urban areas. In the United States and in South Africa,

partnerships with universities involved in


diversity

Diversity Management
Ability in Behaviour Adaptation Equal Respect to each other

Assessment
The Best Diversity Talent High Motivation in Diversity Collaboration

CASE STUDY
Racism in lOral

LOreal Case Study


Racism And Cultural Issues

Claims of Racial Discrimination


In 1997, Jack Wiswall, general manager for designer fragrances, allegedly told L'Oral sales manager Elyse Yanowitz to fire a dark-skinned sales associate despite her good performance

LOreal Case Study


Racism And Cultural Issues

Elyse....you must fire your black staff!!

But why?? I dont wanna do that without a good reason!!

LOREAL CASE STUDY


RACISM AND CULTURAL ISSUES
get me one that looks like that

Analysis of Loreal Case Study


Racism And Cultural Issues
Against Loreal Slogan :
Because Youre Worth It

Because Youre Not Worth It

Institutional

racism action?
isolated case

No action

Analysis of Loreal Case Study


Racism And Cultural Issues
Belief in Inappropriate Common Assumptions :
1.Homogeneity Belief in the melting pot: (We are all the same)

Causes Of

2.Similarity Similarity myth: (Similarity is the most important) 3.Parochialism Only-one-way myth:

Manager (Jack Wiswall)


Behaviour

(Our way is the only way)


4.Ethnocentrism One-best way myth: (Our way is the best way)

Mistrust

Recommendation of Loreal Case Study


Racism And Cultural Issues

Keeping slogan as a company commitment

Refuse any actions concerning discrimination


Putting respectful to each other regardless nationality, Gender, skin color, race and culture Creating trust among multicultural team in every level position to achieve synergy

Conclusion

Loreal mission of making beauty universal


Loreal strategy in its cross cultural management Adlers cultural How model bring synergy in Loreal multicultural team LOral, worlds number one cosmetics company, and its isolated issues

ANNEX

A large portfolio of diverse brands

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