CHANGE MANAGEMENT AT

L'ORÉAL

Students: DRĂGHICI Liliana

IONESCU Bianca
MITRICĂ Adriana
About L'Oréal

• L'Oréal is a French cosmetics industry group. The company, founded by Eugène

Schueller on July 30, 1909, has now become an international group, the world's
number one in the cosmetics industry.
• A vision: cosmetics are rich in meanings. They allow each person to increase their
self-confidence, to express their personality and to be open to others.
• The mission that L'Oréal has set itself and that inspires its teams is to offer women
and men around the world the best cosmetics in terms of quality, effectiveness,
safety, sincerity and responsibility to make them satisfies all their needs and all
their desires for beauty in their infinite diversity
 Portfolio of L'Oréal

L'Oréal has a rich portfolio of international brands, unique in the world, covering all the
range of cosmetics: hair care, coloring, skin care, makeup and perfume.
 Portfolio of L'Oréal
Two reasons explain L'Oréal's unique positioning within the cosmetics industry: its
exclusive focus on perfumery-cosmetology and its presence in all market segments.

Mass retailing Selective Professional Medical Direct sales

distribution distribution distribution
- L'Oréal Paris - Lancôme -L'Oréal - Vichy - The Body
- Garnier - Giorgio professionnel -La Roche Shop
- Maybelline Armani - Kérastase Posay
New York - Yves Saint - Matrix -
- SoftSheen Laurent - Décléor SkinCeuticals
- Essie - Cacharel - Carita -Roger&Gallet
- And so on - Biotherm - Essie -Sanoflore
- Kiehl's - Redken -CeraVe
- Ralph Lauren - Pureology
- Shu Uemura - And so on
- And so on
 The microenvironment of the organization
Analysis of competitive forces in the market using Michael Porter's model
Competitive intensity. Competitors are numerous and differ in size, nationality or market.
This sector can be defined as an oligopoly with competitive fringes, in which multinational
groups operate, which are found in all regions of the world (L'Oreal, Procter & Gamble,
Unilever, LVMH) and smaller companies
Bargaining power of suppliers. Manufacturers of chemical compounds, flavors, essential oils
and others. They are scattered and do not have a real bargaining power with cosmetics
manufacturers, with the exception of perfume manufacturers

The availability of several quality brands with identical or even competitive prices has
increased the bargaining power of buyers.
The sector has solid barriers to entry.
In the industry that keeps the decline in substitutes low
 Analysis of the internal environment
Commercial capacity. For L'Oreal, building a strong image among the public is a significant
global goal, which can only be achieved through an appropriate communication strategy

• Financial capacity
• Productive capacity
In the case of the “L’Oreal”
company, the technology consists in
the technology of making the
products, in order to satisfy the needs
and requirements of the consumers.
L'Oreal has 40 factories in the world.
 Identifying the market strategy adopted by the analyzed company

- Presence on all distribution channels and in all

segments;
- World leader in cosmetics;
- High quality of products;
- Strong marketing communications;
- Strong brand portfolio;
- Staff training;
- Continuous R & D;
- Targeted acquisitions.
- Growth of new markets in development;
- Targeted acquisitions abroad;
- Development of Internet sales;
- Wide target group: age, sex, various ethnic
groups;
- High demand for organic products.
- Too many sub divisions;
- Lower profit margins (higher investments in R&D);
- Difficulty managing employees;
- Human capital expenditure is huge.
S W
- Strong competition;
- Change in consumer preference;
- Economic crisis – low cash flow;
- Increasingly strict legal regulations in different
countries;
O - The risk of imitation by the competitor;
T
 L’Oréal strategy
L’Oréal has developed a unique strategy: Universalization. It is an approach to
globalization that captures, understands and respects differences. The differences in
desires, needs and traditions. To offer tailor-made beauty and meet the needs of users
around the world. L’Oréal is driven by this plural worldview

It means creating and producing cosmetics locally, so that formulas are perfectly suited to
their needs. To achieve this goal, the company has developed a global network in Research
& Innovation, as well as a marketing hub for each of its strategic markets: the United
States, Japan, Brazil, China, India and South Africa.
 The need to change

The workplace is constantly changing and consumer expectations continue to rise. It is

critical that companies equip themselves with innovative and efficient digital tools.

Regarding the change, the first step is the implementation of new digital tool that will
reduce working time. For this stage, in the finance department, the tool MS Excel will
be replaced with Spotfire.
The benefits of change

Advantages of Spotfire

 Faser then Excel there is no comparison.

 Create highly dynamic reports. No need to learn formulas to query.
 No limitation of data. Spotfire can ideally handle any amount of data.
 Visuals: Spotfire provides interactive, flexible and customized charts, which can be
exported in any form.
 Spotfire is the only BI tool which provides a story telling approach to the analysis.
 Scripting and APIs are top of all basic features to satisfy specific needs.
 Easy to share and Collaborate.
 PLANNING
Actions Months Responsible for actions

1. The decision to change, for and Management

against

2. Establishing the necessary resources Financial/HR

3. Informing teams about change Management

4. Choosing the people who will be Management

trained
5. Beginning of training Elected employees
6. Starting the training of all employees All employees

7. Process evaluation The management

Resistance to change
Some people are refusing to adopt the new system. Others are frustrated and confused by
the software but are afraid to speak up. Meanwhile, morale is low, and tensions are high.
If the situation is mishandled, the transition to Spotfire is bound to fail.

Changing the status quo is difficult, and many people will have emotional reactions to
anything that upsets their routine. This is a natural and inevitable response.

People will not support a change if they’re not confident in their own abilities to adapt to
it. When people feel threatened by their own shortcomings (real or imagined), they
protect themselves from failure by resisting the change.
Conclusions

After overcoming the resistance of change, the project was successfully

implemented.
Following the changes made, the company aligned itself with its competitors in
terms of digitalization.
All processes have improved, workload has been reduced and staff can focus
more on in-depth analysis of indicators. This change is also a plus for
employees because they are better prepared in terms of digital systems.