Loreal Masters Multicultarism (Group 5)

Loreal MastersMulticulturalism(Group 5)INTRODUCTIONFrench cosmetics giant & uncontested world leaderBuilt a portfolio of brands from many culturesOffices in more than 130 countriesIn 2012 half of its sales came from new markets outside Europe and North America18.4% sales growth in Asia Pacific region and17.6% in Africa and Middle EastManagement team strongly rooted in home cultureTrends at LorealMaintains a steady stream of new products to extend market share Highest expenditure in R&D among all its competitorsGlobal symbol of fashion and sophisticationTechnical innovation and local responsivenessMaintain brand valueMajor Concern.Global integration vs local responsiveness in global marketsAchieving economies of scale and scope requires integration of activities along with adaptation to local conditionsRequires complex market knowledgeTacit knowledge works within national boundariesLeads to misinterpretation of messages when it cross bordersWhat Loreal did????Deployed professionals with multicultural backgroundsSource of competitive advantage and main reason of success in emerging global marketsCompany transformed from French beauty product business to global leaderRecruited managers having familiarity with the norms and behaviors of multiple cultures40 product development teams, each working on different concept

Recruiting & Training at LorealThe multicultural managers were drawn from three pools- 1. The most seasoned individuals from the international subsidiaries 2. Recruited from other global companies 3. Youngest group consists of graduates of leading international business schools12 month training program in Paris, New York, Singapore, or RioManagement development program at Cedep

New Product DevelopmentAtleast a years knowledge exchange among product development team, regional subsidiaries and functional units in FranceInteraction with peers from different culturesFormally and informally informing top management Presenting new product launch plan at Reunion Internationale held at Paris headquarters

Advantages of MulticulturalsRecognizing new-product opportunitiesPreventing losses in transalationIntegrating outsidersMediating with bossesBridging differences between subsidiaries and headquarters THANK YOU