The L’Oreal group is a French cosmetics and beauty company which is the leading company of the beauty products. According to Fast Company (2014), L’Oreal was founded on 30th July 1990 by Eugene Shueller. They always produce the the most advanced products accessible to both the genders. The ambassadors embody a positive beauty ideal summed up in the legendary signature: “Because you’re worth it. ” (L’Oreal, n. d. ).
They produce make-up, skincare, haircare, hair styling, hair color and men’s expert products. L’Oreal (n. d. ) states that they have their retail stores in 130 countries on 5 continents which sells four different types of products ranging from consumer, professional, luxury and cosmetics items.
Perakis-Valat, A. (2016), the president of the consumer product department claims that the headline news of the year the rise in the sales growth of consumer products at +4. 4%, reflecting a string of game-changing innovations and the success of our two strategic focuses: make-up and haircare. According to the L’Oreal Annual Report (2016), consumer product division change consumers’ everyday routines and beauty rituals which includes innovations such as concealing roots to micellar waters and tissue beauty masks which includes brands such as NYX and Garnier.
Hieronimus, N (2016), states that L’Oreal Luxe sales grew at +6. 9% in 2016 and got market share gains on all continents. L’Oreal (n. d. ), claims that the department opens a unique world of beauty with three major specializations: skin care, make-up and perfume which will be available at department stores, cosmetics stores, travel retail, and own-brand boutiques and dedicated e-commerce websites.
The Lux products includes international brands such as Diesel and Urban Decay (L’Oreal Annual Report, 2016). L’Oreal (n. d. ), states that the professional products division distributes its products in salons globally through numerous brands such as Essie, to meet the needs of diverse hair care salons, for color, shape and styling, shampoos and general hair care needs.
Products made with the best technologies are offered as well as high-level training, to ensure professional service (L’Oreal, n. d. ). According to L’Oreal (n. d. ), the active cosmetics division brands meet a range of different skin care needs from normal to blemish prone which are developed and endorsed by health professionals – dermatologists, pediatricians, cosmetics in healthcare outlets worldwide, including, pharmacies and drugstores including many brands such as Vichy.
L’Oreal has a unique matrix structure which aids to have develop new products along with effective marketing and communication throughout the whole organization (Uk essays, 2013). According to Business Dictionary (n. d. ), matrix is an organizational structure with horizontal flow of skill and information to manage large projects or product development which draws employees from different departments to a team without removing them from their respective positions for a project.
Employed by both function and product, the structure allows different product categories to be seen according to the corresponding provisions of various departments of power and responsibility in L’Oreal (Blabla Writing, n. d. ). This structure shares technologies, improves coordination with the rest of the departments and allows information to pass quickly to get effective feedbacks (Uk essays, 2003). This structure allows direct contact between local managers of L’Oreal and the consumers to meet challengers of competitors or potential competitors (Blabla Writing, n. d. ).
Chimoriya, B (2015) states that the main responsibility of the project manager of matrix structure is to maintain coordination among interrelated factors of a project and communicate with horizontal and vertical authorities to achieve control and coordination. Similarly, functional managers are accountable to provide technical and administrative guidance to projects which leads to a better control over regular operation. The supervisors can focus on their main function in this structure.
Functional supervisors focus on hiring, training and managing employees, while project supervisors emphasize on achieving targets of the projects assigned. Moreover, Chimoriya, B (2015) claims that it helps to develop team work skills between project and functional employees involving in achieving the same target thus communicate and develop a mutual close relation of team spirit. This would help to increase the productivity of L’Oreal and thus, increase profits. The structure involves continuous changes and undefined business environments.
Due to the easy adaptable to dynamic environment the project managers have gets rapid feedbacks regarding project information, thereby, decisions are made quickly without interference of environment changes (Chimoriya, B (2015). However, there is inefficiency between the matrix structure. As there are various managers, the number of conflicts they have will rise regarding policies and procedures which leads to ineffective management. Additionally, conflicts might occur as functional and cross functional managers have to compete for the time on team members separately
