Case Study Of Loreal

Introduction

L’Oreal S.A., having its headquarters in Clichy, Hauts-de-Seine is one of the strongest players in the personal care industry. The company has invested lump-sum amount in the field of cosmetics so as to enhance its value proposition in the consumer market segment. L’Oreal is known as the biggest cosmetics company in global context. The company is presently active in certain product areas, such as make-up, hair color, sun protection, skin care, perfumes, etc. Brand categorization is usually based on the needs and wants of target market segment. L’Oreal has categorized its brands as per mass, active cosmetics, luxury and professional markets. There are also other areas of interests witnessed in the case of L’Oreal, such as insurance,

Secondary sources along with interview results form the basis of this organizational analysis. Appendix 1 constitutes the interview questions and answers obtained from interviewee have been used in the following sections of this analytical study.

Value

In global scenario, rapid decisions need to be undertaken by the management in order to retain market share along with developing wide base of loyal customers. Hence, L’Oreal Paris has build up an organizational structure where regional heads are responsible for formulating operational strategies. The current approach should not be changed due to diverse product segment of L’Oreal Paris. However, the company needs to exercise firm control over operations of multiple departments. A highly flexible organizational structure often leads to delayed operational procedures, degraded brand reputation and customer complaints. It is advisable to maintain a central authority to evaluate performance standard of team members and to take necessary measures for aligning individual interests with the common goal. For instance, any change initiative designed by regional heads can be properly communicated only with the support of a central