L'Oréal-6-FINAL

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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

1980s

2008

-Establishment as a hair color product company

-Expansion to European countries by Multi-brand and Multi-channel

-Expansion to out of Europe by positive brand acquisitions

-Keeping high growth rate: 10% (1988-2008)

• No.1 cosmetics group worldwide

• 23 global brands

• 25.8 billion in sales

• 130 countries

• 64,600 employees

• 674 patents files

Company’s settings

Company Sales (Billion $) Head office

1 L’Oréal 25.8 France

2 Procter & Gamble 19.8 US

3 Unilever 15.5 UK

4 The Estee Lauder 7.8 US

5 Avon Products 7.6 US

6 Beiersdorf 7.0 Germany

7 Shiseido 6.4 Japan

8 Johnson & Johnson 5.8 US

9 Kao 5.5 Japan

10 Chanel 4.4 France

The beauty competitors

A large portfolio of brandsPROFESSIONAL

PRODUCTS

CONSUMERPRODUCTS

LUXURYPRODUCTS

ACTIVECOSMETICS

THE BODYSHOP

"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'Oréal USA

• Today : worldwide network of stylists in the UK, France, Netherlands and South Africa Technologically advanced products engineered to treat hairs

L’Oréal 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'Oréal

植村 秀

L’Oréal Professional Products

L’Oréal 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

L’Oreal Loves Diversity

« Diversities are Our Priority »

• Reflect the consumers’ diversity of origins within the teams at every level

24%

76%

Ventes

French nationality International nationalities

« DIVERSITIES ARE OUR PRIORITY »

Promote women’s employment.

62%

38%

Workforce

56%

44%

Managers

Women Men

35%

65%

CommitteeMembers

The Creation Of Diversity Observatories

» Awareness operations for employees focusing on certain criteria (mixed-gender, the disabled)

Managing Diversity

FOCUSING ON ETHIC AND

CULTURE AT

L’OREAL

A strong culture

Ethical principle

s

Reflecting

diversity

Managing Diversity

The successful “L’OREAL WAY” ( Multicultural Team Process of Adler’s Model )

Entry stage: for trust and cohesiveness

Work Stage (Diverging for creative sources)

Action Stage (Converging for practice)

High performance

of multicultural

teams at L'Oréal

Successful and efficient management

Trust among employees

Diversity becoming an asset

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 l’Oréal

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

Diversity Management

Ability in Behaviour Adaptation

Equal Respect to each other

The Best Diversity Talent

High Motivation in Diversity Collaboration

Assessment

CASE STUDY

Racism in l’Oréal

L’Oreal Case Study “Racism And Cultural Issues”

Claims of Racial Discrimination

In 1997, Jack Wiswall, general manager for designer fragrances, allegedly told L'Oréal sales manager Elyse

Yanowitz to fire a dark-skinned sales associate despite her good performance

But why?? I don’t wanna do that without a good reason!!

Elyse....you must fire your black

staff!!

L’Oreal Case Study “Racism And Cultural Issues”

get me one that looks like

that

L’OREAL CASE STUDY “RACISM AND CULTURAL ISSUES”

• Against L’oreal Slogan :

• Institutional racism action?

No action isolated case

Because You’re Worth It Because You’re Not Worth It

Analysis of L’oreal Case Study “Racism And Cultural Issues”

Causes OfManager (Jack

Wiswall) Behaviour

Belief in Inappropriate Common Assumptions :

1.Homogeneity – Belief in the melting pot: (We are all the

same) 2.Similarity – Similarity myth:

(Similarity is the most important)

3.Parochialism – Only-one-way myth:

(Our way is the only way) 4.Ethnocentrism – One-best

way myth: (Our way is the best way)

Mistrust

Analysis of L’oreal Case Study “Racism And Cultural Issues”

Recommendation of L’oreal Case Study “Racism And Cultural Issues”

• L’oreal mission of “making beauty universal”• L’oreal strategy in its cross cultural management• Adler’s cultural How model bring synergy in L’oreal multicultural team• L’Oréal, world’s number one cosmetics company, and its isolated issues’

Conclusion

ANNEX

A large portfolio of diverse brands