Human Resource (HR) Management

Figure 5: Human Resource Management

L’Oréal’s quest for universality has profoundly changed the challenges and lives of the group around the world, while developing a positive strategy for recruiting international talent. Their HR policies focus on two areas: exploring talented individuals, diversity in all, being able to manage the markets around the world today and tomorrow, but also ensuring that talent can be expressed in a collective framework that provides them with respect, Incentives and career development possibilities. This is a key point because economic success and best social performance must go hand in hand. They have a responsibility to put their values into practice and to create a working environment based on respect, solidarity and recognition of individual values.

L’Oréal’s human resources management strategy can be classified as: the diversification of management as the company's core values, global recruitment strategies, investment resources

and training programs. Because their ethical principles shape their culture, strengthen our reputation, and must be recognized and recognized by all honest L’Oréal staff - to act in good faith is essential to building and maintaining trust and good relationships, respecting their Work on many people's lives, courage ethical issues and transparency to be true, sincere, able to prove our actions and decisions. For their culture, they accept up to 50 graduates per intake, as well as more than 140 interns and placement. They are looking for innovative, socially competent entrepreneurs who will invest in our culture and make incredible new bonds, support each other inside and outside the office, and discover active social life in L’Oréal as their sports team, Dance classes and fantastic event planning. Their goal is to make L'Oréal a great place in which to work and treat their employees is the greatest asset. Employees have a right to a safe and healthy working environment in which individual talent and merit are recognized, diversity is valued, respect for privacy is maintained, and the balance between professional and personal life is balanced. They provide employees with an exciting environment, exciting personal opportunities and a changing opportunity to encourage openness, courage, generosity and respect for the atmosphere so that all employees are free to raise their questions, thoughts and concerns. For their global recruitment strategy, they unified brands across all sites in the countries they operate in.

Each site's work section lists available positions in the country, with only a few links to the relevant social networks. Their work site links to Facebook pages, LinkedIn pages, Twitter feeds and YouTube. In order to ensure that employees in the earliest stages of career exposure to staff, L’Oréal decided to establish a formal entry plan. L’Oréal organized "FIT Week" activities, held a series of meetings for all employees. At the same time, it is widely publicized via e-mail, intranet, posters and contests. New recruits or persons transferred from another country or department are automatically enrolled in Level 6 courses. At least five days before their arrival, the HR department ensures login details, e-mails and phone calls are in place, and a desk and security pass is ready, as well as a product "goodies package". On their first day, the new arrival coincides

with human resources and their line manager. They are shown to their desk, introduced to the team, and then spent time with their HR manager, who explains how FIT plans to work. There is a team lunch, and they are assigned a mentor who is in this role for at least the first year. In the next two weeks, new employees meet with other employees from the company - whether it be marketing, health and safety, or product planning. In the first month, they and the human resources department to review, follow-up on a regular basis.

IV. Marketing

Figure 6: Marketing

L'Oréal had success so far in reaching out to the diverse needs of customers from different countries around the world, across different income level, cultural patterns and offering them products that worth every penny. L’Oréal sold its product based on the fundamental of customer demand in a country rather than selling identic type of products across the globe. The company build a large number of brands adapted to local culture and attracted to different market segment instead of generalizing the brand. L'Oréal went on not only being a local product but also doing well in international market. Below several marketing strategies that L'Oréal use to sold their beauty products across the world.

4.1 Digital Marketing

At the forefront of the digital revolution, L’Oréal is constantly looking for new ways to connect with consumers. From innovative e-commerce strategies to cutting-edge apps, they are leading the way into a new era of beauty. The digital strategy adds value to L’Oréal innovations by catching up to latest trends via Internet monitoring, introducing the new cutting edges mobile apps called Makeup Genius and creates an even closer relationship with consumers through their well-known brand ambassadors with millions of fans following them on social networks.

Social media is crucial to driving engagement and affinity for marketing. L’Oréal’s social media presence is impressive. Being present where your customers are, being part of the wider conversation and playing a part in the evolving consumer journey are the key element in the use of social media for business purposes.

From E-commerce side, L’Oréal had great potential in its distribution channel, thanks to a strategy tailored to the specifics and different practices of each market. They also set up an online shopping to enhance customers online shopping experience.

4.2 Content Marketing

The beauty category is a perfect for content marketing where most of women do blogging and following influential beauty expert through those platforms which give brands the opportunity to teach and entertain consumers in an authentic way. In 2011 L’Oréal launch a website called Makeup.com, providing beauty hacks, tutorial video and expert tips daily in a unique design. L’Oréal used to partner with YouTube influencers, beauty bloggers which allows the brand to reach an elusive audience, the essential key to increasing company growth. When combined with product recommendations from L’Oréal’s brand, the result is not too obvious which made it that looks relevant without overselling it to customers.

4.3 Collaboration

L’Oréal had done many campaign with well-known celebrities, partner with famous designer in launching new product lines and fashion shows. By doing this kind of collaborations had make L’Oréal brands getting more popular and known worldwide, fashion designers may get all the attention during fashion week but beauty brands also play a significant role from makeup to professional hair style which presented during a catwalk soon consumers will start to look up for the products that being use in the models.

For the campaign, a beautiful campaign built of the raw insight of the everyday struggle of women of color. Beauty does not apply to only single face shape but there’s a lot different face shape all over the world. The problem that we have in the beauty industry is the lack of makeup shades variety. L’Oréal Paris finally introducing the solutions through its new campaign for the True Match Super Blendable Foundation, this campaign aims to highlight that there is a perfect foundation shade that fit each person, regardless of what your skin tone is.

V. Finance

Figure 7: Finance

Together with the business units, the finance and management control are key important part for L’Oréal’s performance, making valuable contribution to its dynamics of growth. Finance and Management control has some grass-root functions, such as the teams directly contact with the

business units to provide accurate information for their need, and also help draw up appropriate predicts and recommendations. There are three kind of financial strategic management in L’Oréal.

Those are corporate finance, finance management and business control, and internal audit.

5.1 Corporate Finance

Accounting and treasury have a major part for L’Oréal acquisition globally. With security and reliability, the main mission is to provide relevant information on accounts and financial file for entity in together will local regulatory timeline.

In close collaboration with other business and the internal audit, the accounting teams have to ensure that procedure and accounting standard must be properly applied. For instance, they have to modify the organization operation pursuant to the changes in accounting or tax law and regulation both at national or multinational level.

The treasury teams appraise the cash-flow and currency exposure throughout the fiscal year.

They also manage banking relationship, focused more on security and some payment method to ensure L’Oréal correctly applied.

Simply speaking, corporate finance is overall L’Oréal financial consolidation. They analyze and interact with other division, reporting their activities directly to Paris headquarters.

Other corporate finance functions include:

- Financial communication: the task is to provide the annual Report, the L’Oréal Finance digital magazine, the Letter to Shareholders, digests and newsletters. Their activities mainly involved in publication

- Brand/ Commercial Finance: it used to analyze, manage with interaction with different functional department like Marketing, Sales, Operations, and Purchasing

- Operation Finance: their activities are to provide financial analysis and strategic support for all production and distribution from manufacturing, supply chain to corporate operation.

5.2 Finance management and business control

Here are the “financial eye” of each subsidiary of L’Oréal. They analyze, plan and control the way which the revenue is generated. They also help to make the right investment decisions and profitable evaluation and prediction. There are some functions which are divided in finance management and business control

- Junior Controller: The purpose is to participate in the budget planning and make forecasts for brands or SBUs. Within high responsibility, it is required to check expenditure allocation and help optimize costs. The contribution of Junior controller for business is offering monthly reports, being involved in the main strategy.

- Business Unit or Plant Controller: It is also responsible for budgets drawing, but for higher level than Junior controller. Besides that, accounts checking, cash flow, expenditure allocation are another task of them. They help to manage all resource and expense to make sure the optimize for each investment.

- Country Chief Finance Officer: It ensures the economic scale and balance by managing different functions from management, account, finance, legal and tax for whole countries in which subsidiary is located.

5.3 Internal audit

Obviously, the mission of internal audit teams is to ensure that all regulations standards and internal controlled methods are properly applied. It is need to assess and timely assist management teams by carrying out audits, recommendation and implementation. Their identification and risk assessment may affect L’Oréal’s operation for not only subsidiaries but also divisions and whole L’Oréal. The Internal audit teams must deal with a wide range of problems such as commercial policy, logistics, stocks, cash flow, purchases, accounts, etc.

Sometime they also need to work with accounting approaches or audit systems to make sure providing the excellent opportunities and financial exposure.

Chapter 4:

INDUSTRY ANALYSIS

The field business of L'Oréal group is mainly in cosmetic industry, which has grown over the past few decades to become a billion-dollar industry nowadays. However, there are certain factors which affect the profitability of cosmetic industry. These are bargaining power of customers and suppliers, threat of new entry, the threat of substitutes as well as intensity of rivalry in the industry. In this report, we will briefly analyze those factors by using Porter Five forces analysis. Before analyzing the five forces, it is better to understand cosmetic industry, the growth rate, market share, the structure of market in general.