Loreal Case Study

L 'Oreal is a global brand who has a large international brand portolio of the products. It has been one of the biggest french companies whose products were limited inside the boundaries (Jones.et.al., 2005). Now, L 'Oreal is the largest cosmetic group inthe world, offereing more than 27 international brands in 130 countries (Jones.et.al., 2005). According to our team, we think that being a large multinational company they should not have any limits to the national beauty images that it can globalize. L 'Oreal 's one of the important goal is to reach every part of the world and sell there brand. In order to do so, they have to change there perception of analyzing beauty in terms of American and French perspective. Every country has different
L 'Oreal did not just wanted to focus on local brands like Lancome, one of the L 'Oreal 's most successful brand, to compete in the global marktet like US so they started acquiring US brands (Jones.et.al., 2005). The major role of the acquisition of US brands was that it marked its presence in the international market but also evolved L 'Oreal 's internal organizaiton which eventually got splitted into three main department like consumer product division, professional products division and luxury product division (Jones.et.al., 2005). If the organization has to establish itself globally then it totally depends on its organization culture and structure (Kogut.et.al.,1993). Organizational structure defines the smoothness of the flow of idea among themsleves and will generate multinationality among the organization which will help them to work as network of plants worldwide (Kogut.et.al.,1993). There matrix organizational structure which consist of brand teams, managers, chief regional officers and other plays an important role in helping them to stand gloabally (Jones.et.al., 2005). Another limitation, our team could think was certain luxuries product which L