Loreal Case
DIVERSITY ON THE GLOBAL SCALE
Roadblocks to Diversification
The globalization strategy for the L'Oreal multinational company will consider managing the diversity of each country unit, but also enabling units to cooperate on the large scale towards the ultimate goal.
The most significant roadblock L'Oreal will face is the difference in opinion over the effectiveness of such a strategy. As each country manager assessed the need, cost, and benefits of the strategy, each manager had come to different conclusions. As it proposes the diversity strategy to each country manager, L'Oreal will need to consider these costs and benefits, and adapt its presentation strategy accordingly. Failure to do so will hinder the success of adoption of the strategy on the global scale.
One component of this roadblock is the “need” aspect of the strategy. Some managers were ready to jump on board with the diversity program, while others felt there was no need for such a program. L'Oreal should do research to identify how the diversity program would bring necessary improvements to each country unit, not just to the corporation on the whole. Managers should be able to identify where the strategy fits in to their local framework, and how the framework needs the strategy in order to gain the competitive advantage in the local market.
In L'Oreal's case, as CEO Jean-Paul Agon illustrates, “the very nature of our business makes diversity absolutely vital”. Because L'Oreal is multinational, its products have to cater to a very broad audience. Much of L'Oreal's success can be attributed to its creativity in product design and innovation. A diverse pool of creativity, therefore, becomes a necessity to meet L'Oreal's diverse market.
In addition, L'Oreal should assess the costs of the strategy. How much time, money, and effort will be required to put the strategy into action? Managers will handle budgeting on some level. These costs will necessarily affect their firm decisions. Also,
Roadblocks to Diversification
The globalization strategy for the L'Oreal multinational company will consider managing the diversity of each country unit, but also enabling units to cooperate on the large scale towards the ultimate goal.
The most significant roadblock L'Oreal will face is the difference in opinion over the effectiveness of such a strategy. As each country manager assessed the need, cost, and benefits of the strategy, each manager had come to different conclusions. As it proposes the diversity strategy to each country manager, L'Oreal will need to consider these costs and benefits, and adapt its presentation strategy accordingly. Failure to do so will hinder the success of adoption of the strategy on the global scale.
One component of this roadblock is the “need” aspect of the strategy. Some managers were ready to jump on board with the diversity program, while others felt there was no need for such a program. L'Oreal should do research to identify how the diversity program would bring necessary improvements to each country unit, not just to the corporation on the whole. Managers should be able to identify where the strategy fits in to their local framework, and how the framework needs the strategy in order to gain the competitive advantage in the local market.
In L'Oreal's case, as CEO Jean-Paul Agon illustrates, “the very nature of our business makes diversity absolutely vital”. Because L'Oreal is multinational, its products have to cater to a very broad audience. Much of L'Oreal's success can be attributed to its creativity in product design and innovation. A diverse pool of creativity, therefore, becomes a necessity to meet L'Oreal's diverse market.
In addition, L'Oreal should assess the costs of the strategy. How much time, money, and effort will be required to put the strategy into action? Managers will handle budgeting on some level. These costs will necessarily affect their firm decisions. Also,