MGMT3702 - L'Oreal Case: Analyzing Problems & Offering Solutions

This case study delves into the challenges L'Oreal faced while implementing its global diversity strategy, particularly concerning cultural and geographical differences. It identifies three core problems: cultural and geographical differences impacting strategy implementation, difficulties in recruiting employees aligned with the diversity approach, and immature training seminars. The root causes are attributed to mismanagement, lack of research, insufficient investment in human resource development, and inadequate planning for training programs. To address these issues, the study suggests investing in research and development programs, implementing talent programs, adopting 'learning by doing' practices, and emulating American Express's diversity management approach. The conclusion emphasizes the importance of diversity management and recommends that L'Oreal adopt a diverse and inclusive culture to enhance its strategic management.

Running head: INTERNATIONAL HUMAN RESOURCE MANAGEMENT
International Human Resource Management
Table of Contents

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Introduction......................................................................................................................................3
Core Problems.................................................................................................................................3
Root causes......................................................................................................................................3
Solutions..........................................................................................................................................4
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

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Introduction
In the field of cosmetic, L’Oreal has presented themselves as one of the outstanding and mature
international company. In the recent years, The main attention of the Loreal is how to roll out the
global diverse strategy. The diversity strategy is one of the fundamental as well as significant
corporate approach that has a direct link with the recital. In this treatise it will be discussed the
problems that have been arrived while implementing the process of diversity strategy. Further
the root cause analysis will be made and at the end of the essay the solution for the challenge will
be discussed.
Core Problems
In the Loreal case there are mainly the three key problems that have arisen while implementing
of diversity strategy. The first challenge was the culture and geographical difference that will
influence in implementation of the worldwide variety strategy. The problems of cultural
variances as well as geographical are the essential snags and also they are unavoidable glitches
for the international companies like Loreal. According to a study of the Loreal case it is found
that if the Asian countries as compared with European countries, found that they have low
awareness and the acceptance of the requirement for the diversity strategy. The cultural
differences also rise the problem of the recruitment of the employees. The Loreal faced the big
challenge in developing the global employees that can melody with diversity approach in the
initial phases. For instance, whether or the participant of the session had not advocated for the
worldwide approach of their individual areas. The last and the most important issue in the case
was the training seminar. There was immature and incomplete of training seminar. Though there
was insufficient awareness of developing the diversity strategy that has existed in some of the

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countries and even though they the participation been made in the training seminar. The case that
has examined in the case that there are various core problems that is need to be examined and
that has to been resolved. The three core problems shows that how these problems has occurred
and the root causes for these problems is all necessary that shows that how these problems must
been resolved (Santos, Au-Yong-Oliveira,and Branco, 2018).
Root causes
There are various root causes from which the core problems has rise. There is always the root
cause behind the problem. The root cause of the problem was the mismanagement of the
company. The company had made diversity strategy without any research and with the help of
professionals. The company not made the strategy on the basis of common place and not
according to the geographical and cultural. The company must know before diversification the
culture and the demand of the individuals. The company must know what the best suitable
product is for them and on the basis of that diversification should take place. The diversity
strategy always been made on te requirement of the area. The other cause of the problem that the
company has not invested in the human resource development programs because it was found
that the employees are not trained and can tune up with the development strategy. The problem is
that the company investment policies in the human resource development and research and
development are the key reason for the core problems of the company. The most important root
problem is that te planning of the management for the training programs (Cunha, 2017) . The
management has failed to implement the training problems is the biggest root cause and therefore
all the problems had took place. It is also necessary to understand that the failure to implement
the diversity strategy and the problems faced by the region to region is all because the research

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and development programs had not been made according to the requirement. The company had
failed to match the requirements (Mark-Herbert,and Holmsten-Carrizo, 2017).
Solutions
Research and Development Programs
The company must adopt the various policies and to do a lot of work to develop the companies
management. The company has to raise his investment in the research and development
programs. It is the first most thing that is required for the strategic development. It is because
strategic development required the proper market research and what are the requirements and
what is the culture of that country. This is the same problem faced by the Loreal and it is
required for the company to invest in this so these type of problem can been resolved. It is also
necessary for the company to invest in other schemes such as the company employment schemes
and that has rise in the case where there are various problems that has took place in this respect
(Daidj, 2018).
Talent Programs
The other solution to the problem is that the company must start the talent programs. The
company can use internal training programs to boost the skills of the employee and it will also
boost the motivation of the employees. These kinds of programs should been designed for the
mangers of the different countries and provide them training and employment programs. The
training provided to them in different languages such as English, French, or Italian. It will help
the employees to be competent and shall match the requirements of the company (Kernstock,
Brexendorf, and Powell, 2017).

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Learning by doing
Loreal can use practices like learning by doing for developing the skills of their employees. It
will help the employees in doing their daily task and activity. This way of acquiring
competencies that is built around action and job everyday rather the formal training programs.
The companies will be able to more practically develop the strategic development programs in
which the company y is lacking and facing the problems. This is more helpful in training the
employees and company should adopt this thing in their daily management practices. This policy
is very helpful because it focus on the problems of the real interest to the company. From this
strategy every employee of the company can get the solution. This solution is very precise and
concrete because it directly applies to the work of employees (Goxe, and Pires, 2019).
American Express concept of diversity management
The company can implement the concept of American express that has recently received the title
of the Top company for the employee resource groups. The company has set the great example
that how the diversity management had been set in the company.
The visible leadership is required for the diversity management. The CEO and the executive
team must lead and create an example and it should been visible to supporters of diversity as a
business driver by holding their direct reports which is accountable for the results (Noe,
Hollenbeck, Gerhart, and Wright, 2017).
There are various ways from which the management iof diversity can be useful in development
of employees. When the work had been done with the people of different country and different
cultures then the leaning will be more than working with the people of the same country. The

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company has various factors that has to be determined that the climate of diversity that has
allowed the development of the new methods of working and it also states the new ways of
seeing things (Wolff, 2016).
The valid metrics is still required for seeing the positive impact of the diversity management.
The objectives should been set clearly and should preserve the middle management. The Loreal
must adopt the diverse and inclusive culuture which hjas been adopted by the American Express
and therefore is among the top companies in the diversity management (Doan, 2016).
Conclusion
It can be said that the diversity management is an important part for the organisation. Loreal had
faced various problems in the diversity management due to cultural and geographical
differences. The training programs are not match according to the requirement for the diversity
management. The root problem that has been analyzed is the mismanagement and the lack of
investment in training and development programs. It can also said taht the company is required
to invest in research and development programs. There are various solutions had been provided
to the company is first to do research and development. The company can provide training to
their employees and start various training programs that can help the company in diversity
management. The company must also implement the diversity management policies of American
express that makes the company among the top of the companies and it will help the Loreal also
in developing their strategic management.

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References
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Goxe, F. and Pires, M.V. (2019) Because It’s Worth It? A Critical Discourse Analysis of
Diversity: The Case of L’Oréal. In Responsible Organizations in the Global Context (pp. 97-
116). Palgrave Macmillan, Cham.
Wolff, E., (2016) L’Oréal Case. In WCOM (World Class Operations Management) (pp. 19-28).
Springer, Cham.
Kernstock, J., Brexendorf, T.O. and Powell, S.M., (2017) Introduction: Luxury Brand
Management Insights and Opportunities. In Advances in Luxury Brand Management (pp. 1-24).
Palgrave Macmillan, Cham.
Santos, R., Au-Yong-Oliveira, M. and Branco, F., (2018) September. L'Oréal and its innovative
differentiated positioning process in the beauty industry. In European Conference on Innovation
and Entrepreneurship (pp. 717-XII). Academic Conferences International Limited.
Daidj, N., (2018) French perspectives: towards more diversity?. Women on Corporate Boards:
An International Perspective.
Mark-Herbert, C. and Holmsten-Carrizo, C., (2017) Luxury marketing strategies related to
ethical sourcing. In Sustainable Luxury (pp. 51-62). Routledge.
Doan, D. (2016) Finnish SMEs’ perspectives on workforce diversity.

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Lee, G. and Subramanian, V.K. (2015) How Do You Shift From a Siloed System to Portfolio
Solutions?.
Cunha, M.D.C.D.O., (2017) L’Oréal: Ombré hair kit consumer-focused product development to
find new market opportunities(Doctoral dissertation).