Crisis Management Case Study L Oreal

Geographical
Due to the fact that L’Oréal is such an enormous company which operates their business in over 150 countries there are numerous ways that it can have an impact on some of the issues regarding the cross-culture in all sorts of different areas. (Ouye, 2011). Therefore, it is critical for me to discuss these areas of concern in detail. Since L’Oréal has companies all around the world there is without a doubt some issues which will occur in terms of the suppliers and employees. One of those risks regarding the suppliers are the weather conditions such as; hurricanes, typhoons etc. which will automatically affect the production and the distribution strategy of the company as well as have potential damage to the employees as well. (This

The way that L’Oréal engages with its suppliers is by having an extensive dialogue with them and by sharing their goals in the area of “sustainable development”. By doing that L’Oréal is able to maintain a good relationship with them thus, getting all their supplies on time and making profit. (page 144, on the sub-heading 3). What I would recommend L’Oréal to do in order to have that perfect bond with their suppliers is provide them with resources which will benefit them even more like buying them the best equipment just like Starbucks did with their suppliers which made their suppliers work even harder due to the benefit that the company has given them.
One of the issues regarding the employees is the “communication”. When entering a new country there is always that difficulty of not being able to understand one another because of the different culture differences. According to Josh Greenberg when working in a diverse environment it is difficult to make yourself clear due to the differences of communication styles and this may result in employees being confused and having low esteem. What I would recommend L’Oréal to do in this type of situation is hire a manager who is from the same country as the employees

The way that L’Oréal manages to do that is by having annual strategic meetings; where the suppliers would give their suggestions and ideas to the company which can be stated at page 173: In 2015, over 183 business reviews were carried out. [Emphasis Added]. The way that L’Oréal actually chooses their suppliers is using the 5 pillars of performance which involve their quality, competitiveness, innovation, CSR and Innovation. These pillars will then be used for their daily performance as well as their long-term strategies which can be found at page 173 on the sub-heading 3.2.4.2. However, there are certain issues which arise from the cultural difference. One of those issues is “child labour”. Since L’Oréal is a company which is very sensitive to child labor it is there mission to keep track of all their suppliers from all different countries in order to be able to confirm that no child labor is being performed on their sight especially in those countries which have a high percentages of child labor. This can be referred to page 174 which states: “L’Oréal has also decided to set more stringent criteria, particularly with regards to the minimum age for child labour. It is set for 16 years of age for all employees working for suppliers”. [Emphasis Added]. What I would recommend L’Oréal to do in these types of situations is do annual checkups on their