Module 8 Capstone Assignment: L’Oreal (MBA Capstone)

L’Oreal Company
Student’s Name
Institutional Affiliation
Date
Executive Summary
L’Oreal is one of the companies that manufactures and distributes cosmetic in the world. It’s one of the producers of cosmetics in large scale. The company was founded in France by Eugene Schuler in 1907.It deals with cosmetic products like lancome, amber solaire, solaire and cacharel. Since it was founded it has expanded to more than 20 countries worldwide. The main aim of the company is to make sure that it has provided quality innovative cosmetics to the customers around the world (Raba, & Sherman, 2016). 
This paper focuses on a number of issues concerning L’Oreal, including the mission vision and the objectives of the company and the core business of manufacturing and distribution of the cosmetics to the number of customers around the world. The paper also discusses o the organizational structure of the company as well as the employment process of L’Oreal and if it uses diversity and inclusivity in the whole process.
The paper also looks at the strategies that have been employed by the company and the level of performance. It also looks at the goals of the company and the organizational culture and people as well as the strengths threats weaknesses and opportunities of L’Oreal. It also gives out the recommendations to the company for future use.
Vision of L’Oreal Company
L’Oreal do not have a vision for their company but they can use their motto which is “Because I’m worth it” to act as the company vision
Mission of L’Oreal
The mission of L’Oreal is to provide customers in the whole world the best innovative cosmetics in terms of good quality and safety.
The objectives of L’Oreal
To join the emerging markets in the industry
To develop a plan for the future business
To expand the market share worldwide
L’Oreal brief history and current events
L’Oreal is one of the companies that is concerned with the manufacturing and distribution of innovative quality cosmetics in the world. The company has excelled in the market because of the application of innovation, research and development in its daily activities. L’Oreal has stayed in the market for more than 95 years so it has necessary experience in the cosmetic industry. It deals with several brands of in the cosmetic industry, which is estimated to be more than twenty. L’Oreal has expanded its operation to more than 120 countries I the world for different areas which include, hair care, hair color, makeup and fragments. L’Oreal has invested a lot in research and developments in cosmetics; in 2010 it had invested approximately 600 million Euros. In the year 2010 the sales had amounted to 20billion a euro which shows a good performance of L’Oreal. By the year 2010 the number of employees had increased to 70,000 which show the increased growth for the company in the short period (Bara, 2002). 
Organizational structure
Division of labor
The company has ensured the division of labor into global research and innovation to ensure development and integrated production and distribution of cosmetics2. Departmentalization
The company has a number of departments which includes product departmentalization where it deals with coloring, hair care ,skin care and make ups.This ensures that every brand is managed by individuals who have the expertise in that line. This makes strength of the company. There is also another department known as geographical departmentalization. This shows how different people from different locations are involved in the management. In addition customer’s differentiation makes it possible for customization of products to different customers across the globe (Jones and et al., 2005)
The chain of command is from the top manager and directors to the interns at the lower level. The top management is concerned with making decisions .Also the authority runs from the top to the bottom. The sub managers also aid in decision making.Responsibilites and duties are carried under, human resource, communication, finance research and innovation. Abut in the management of the company it is shared ad even the junior can assist in decision making.
The management structure of coty is not similar to that of L’Oreal because for it, the employees communicate directly to the directors or managers...It employs a totally different different form of organization not similar to that of L’Oreal.This form of organization is informal and is not as good as that of L’Oreal..Some of the human resource is similar and others are not. The positive human resource is that the coty is also concerned with the increase of the market share in the market just like the L’Oreal
Diversity and cross cultural
Women among the top people
The company has made it possible in ensuring that it has met the gender equality by employing more women in the organization. It has been found out that more than 60% of the employees have been employed by the company; it has further been shown that there are more than 40% of the women are in top management of the company. This shows that the company recognizes the aspect of diversity.
Welcome people of every social economic and multicultural origin
According to (Schuiling & Kapferer, 2004) the company embraces diversity because it recognizes people from different backgrounds. The company designs products to a variety of customers from all over the world and that’s why it has embraced diversity. The company had found a first diversity charter in France in 2004.This means that the company is concerned with the inclusivity and diversity in its business. Through the establishment of branches in different parts of the world the company ensures that it employs people from different social and cultural setups (Chailan, 2008).
Enabling disabled people
The company has engaged people with disabilities because they have noble ideas, skills and contributions to the company. The company has employed a good number of people across the globe with disabilities which can be estimated to be more than 1700.The Company has encouraged the employment of people with disabilities. Through this the company would have maintained diversity.
Differentiation-This is used by L’Oreal to ensure that the company is doing the awareness of the product so that the customers will get to understand the products of the company and draw the between them and other products.
Diversity –this will ensure that the organization has achieved the diversity in terms of the inclusivity and diversity. This is possible through the recognition of employees from different a social and cultural set ups.
Financials and Marketing
The financial information provided above shows a good performance of L’Oreal an indication that it can do well even in future
Market mix
Product-the product mix has enabled the success of the company well. The company has made it possible I ensuring that it has provided a variety of products to the customers across the world. It has also done the product differentiation so as customers can identify the product easily.
Place-The Company has ensured that it has located the business in different places in the world. This has enabled the company to excel in terms of fast growth in the industry. All the locations of the businesses of the company have high demographics which bring about high sales (Buckley& Horn, 2009).
Promotion-The Company uses different methods of promotion in making sure that it has made the awareness of the promotion. Promotion is very essential in the business as it boasts the sales of a company. It can also include the branding of the business so as to differentiate from the products of the competitors.
Price-According to (Aichner, 2014), pricing of the cosmetic products of the company is very vital as it determines the sales of the company. The com...