Scribd
Upload
2K views12 pages

L'Oréal - Masters Multiculturalism

This document discusses L'Oreal's approach to achieving a balance of global integration and local responsiveness through multiculturalism. It describes L'Oreal's use of multicultural product development teams with managers from different cultural backgrounds. These multicultural managers help new products be responsive to local tastes while maintaining the global brand. The advantages of this approach include better knowledge sharing across regions to develop new products, integrating ideas from multiple locations, and mediating relationships between global teams.

Uploaded by

Aayushi Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
2K views12 pages

L'Oréal - Masters Multiculturalism

This document discusses L'Oreal's approach to achieving a balance of global integration and local responsiveness through multiculturalism. It describes L'Oreal's use of multicultural product development teams with managers from different cultural backgrounds. These multicultural managers help new products be responsive to local tastes while maintaining the global brand. The advantages of this approach include better knowledge sharing across regions to develop new products, integrating ideas from multiple locations, and mediating relationships between global teams.

Uploaded by

Aayushi Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 12

Group 10 -

Aayushi Singh
Abhinav Singh
Ankit Kumar
Anurag Verma
Deeptiman Dasgupta
Gagandeep Chawla
Masters Multiculturalism
LOral - Masters Multiculturalism
Every Global business needs to achieve economies of scale and requires uniformity. But requires the adaptation of products,
services and business models to local conditions
A British air-conditioner needs different specs than an Ethiopian one
Balance of global integration and local responsiveness crucial especially in complex knowledge is required in product
development and marketing
Tacit or implied knowledge is unsatisfactory during research and face-to-face interactions is needed for better understanding of
local needs
LOral has mastered this art of multiculturalism. A peek into their growth in new emerging markets (from 33% of Overall Sales
in 2009 to 50% of Overall Sales in 2012) is a proof.
LOral follows primarily the structure of a global management team and a multicultural product development team. Keeping
roots in the home French culture and spreading branches in product development to the local countries.
Achieving Global-Local Balance
Consumer-products
categories highly
sensitive to global
economies of scale and
scope
To win customers, need
for being responsive to
local preferences
Achieving balance most critical in LOeal Paris brand
LOeal Paris sold in mass markets worldwide and accounts
for half of the sales of the consumer products division

A Global Brand attentive to Local Trends
Achieving Global-Local Balance
N
e
w

P
r
o
d
u
c
t
s

Maintains a steady
stream of new products
Invests 3.5% of its
revenues in R&D
Outspends all
competitors


G
l
o
b
a
l

S
y
m
b
o
l
s

Products global
symbols of fashion and
sophistication
Appealing to idealized
self-image of customers
Responsiveness and
technical innovation to
cater to local tastes, not
to undermine the brand
I
n
t
e
r
n
a
t
i
o
n
a
l
i
z
i
n
g


M
a
n
a
g
e
m
e
n
t

T
e
a
m

Infusion of foreign
executives would have
disrupted the senior
management
Global team reliance
equally difficult little
knowledge is shared
LOeal has recruited
and built teams around
individual managers
Managers familiar with
norms and behaviors of
multiple cultures and
can switch easily among
cultures
Need for both local responsiveness and global integration
International Talent
1990s: LOreal started to recruit internationally
LOreal paris: placed executives from mixed cultural backgrounds into
new product development (most critical activity)
40 product development teams
Team: total of 4 people out of whom 2 may be multicultural
Developing a new product takes atleast a year of knowledge exchange
among product development teams
Multicultural managers drawn from three pools
Most seasoned: international subsidiaries + 5yrs of exp atleast in sales &
marketing
A few from other global companies
Youngest: MBA grads of leading international business schools

Product
development team
Multicultural managers
After recruitment
12 month
training in
Paris, NY,
Singapore or
Rio
After 2 years,
experienced
managers
return to their
home regions
as directors
After 4/5 years,
MBA grads
return to their
home regions
as directors
LOreal nurtures a pool of
multicultural managers,
placing them at the centre of
knowledge based interactions
among brands, regions and
functions
The Advantages of using Multicultural Managers by LOreal
Balance companys global and local imperatives by learning
cultural differences
Eg: Case of conflict between Indian and French teams while working project
to develop organic shampoo for European market
Integrating knowledge from many locations to develop new
products
Better sharing of ideas and their implementation amongst
geographies
Preventing Losses in Translation
WHO interprets WHAT??
Integrating Outsiders
DIFFERENCES in culture
Mediating with BOSSES
Cultural BUFFER Tolerance
Towards Other Culture
Need of Multiculturalism
Business Development:
Todays business can not flourish without the creative value afforded by high
performing global team.
Diverse marketing and product development teams that represent target group is
needed.

Multi Cultural Employees have -
Cognitive Integration:
Ability to hold and apply several culturally different schemas.
Think as a member of one culture or another depending on need and context.
To think simultaneously as member of several cultures.
Two Main Advantages
Mediating the relationship between global teams
Tolerance and harmony
Bringing differences between subsidiaries and headquarters.

Innovation and Creativity:
Diverse workforce enhances creativity and understanding of
customers.
Different people approach similar problems in different ways.
Flexible perspective can lead to opportunities for product
innovation.

You might also like