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HI5014 International Business Across Borders Assignments

Executive summary 

The assignment is based on the multinational entity. The multinational entity chosen for this assignment is the LOREAL. The assignment is reported according to the company LOREAL. This assignment report includes the various strategies used by the LOREAL to enter the foreign strategy and to develop in the foreign countries. It also includes the various competitive dynamics and problems faced in the various market conditions. The details of the organisation structure are also depicted in this report. The knowledge and the innovation management techniques used by the company is also explained in the detail in this assignment report. Therefore, it can be said that the report includes the details of the LOREAL that is the multinational entity and the strategies applied by the company to foster and develop in the market.


The assignment is based on the multinational entity and the MNE chosen for this assignment is LOREAL. It is the French personal care company. the headquarters of this company is in Clichy, housed –Seine and the registered office is in Paris. It is the largest company in the world that deals in cosmetic. The company focuses on the various activities such as the hair colour, skin care, sun protection, make up and perfumes etc. the LOREAL has the various brands that includes the 39 beauty brands including major staples like Maybelline, Urban decay, Garnier and the Body shop. The advertising slogan followed by b the company to motivate is the “because we’re worth it”. The company also contribute towards the sustainability plan. The aim of the company is to achieve the sustainability plan till 2020 that includes that the products of the company will have the environment or social benefits. The LOREAL also has the interest in the various other activities such as health, finance, chemicals advertising and insurance. The products made in the company are related to both male and female, so it can be said that the company follows the policy of the gender equity in its functioning.

Foreign entry strategy 

The products of cosmetics in world famous are L’Oréal for male and female uses in every category of ages. The material is demanding on international house of business. The demand for L’Oréal is productive in business. It has variety of human fragrance and body care for human. It is promoted as great product of ingredients of nature (Marcott, et. al., 2013). The world best strategy is now day is online business and home delivery. The L’Oréal products are categorised in hair spa, body care, shampoos, oil free cosmetics and creams for face. It also offers face wash to hand wash, hair wash and scrubs wide ranges. The group of female is target in this business with smoothness and fragrance of products. The market of loreal products is great in cosmetic strategy to hire models and actresses for promotional advertisement and posters. The products of beauty are recommended to their environmental conditions like climate of clod and hot. The cold climate products are regularly buying in at foreign country (SORIN, 2018). 

The hot climate and warm weathers are used sunscreen cream, tanning removing and hair wash. Oil free faces wash for wide range of natural gradients in products. It is recommended as fruits and vegetable flavours by their natural properties. The foreign strategy of products is popular by marketing, online business and home delivery. It is very easy to order by software applications and online portal of loreal. The products have facilities of offers, cosmetic test and model reviews as icon publicity. The publicity of the products is regular on internet, online media groups, advertisement as blinking media and social media groups. The foreign strategy for products is comfortable for supply and quality of products. It is recommended as brand for cosmetic industry. It maintains broad range of Variety of product in gender equity (Marcott, et. al., 2013). 

Competitive dynamics

Competitive like other cosmetic brands Maybelline, Urban decay and Garnier are also available in wide range of products. The competitive is launch new products with similarities like fruit face wash, shampoos in dandruff free concept, aloe Vera extract. But L’Oréal is maintaining its brand fragrances in products. It is famous for fragrances in brands of cosmetics. The competitive companies are successful or failure than in world rating but the status of company is maintaining by the company L’Oréal. The products are available in variety with quality of raw material used. The high quality of product and high performance of consumer are in products.  It is best centralized product in all over the world (Arora, et. al., 2012).

 There are some points of achievable for L’Oréal success-

  • Cultural shared on every level of workers in company 
  • High quality product delivery
  • High quality raw material supply
  • High quality and attractive packaging of products
  • Great fragrances maintain
  • Quality management of products 
  • Consumers satisfaction for product using
  • Online market involved with great efforts
  • Advantages or disadvantages are identified

The product of cosmetics is variety for adaptable for all types of climates and skin type. The work profile and staff selection are professional and innovative for the world cosmetics production. The loreal is famous for working in team work and new strategy. The formation of festive offers and discounted on packages are initiatives for customer number increase. The customers are involved and offers are attracted for gifts. The L’Oréal is online marketing in world digital market. The development of market of company is maintained by marketing research and offers strategy. The performance is controlled in quality check with hundred percent results. The satisfied customers are on cost and product quality increased in number. It is worldwide business (Benon & Jansson, 2016).

Organisation structure 

The organisation structure is a system that defines how the activities are directed in the company in order to achieve the goals of the organisation (Yousaf et. al., 2012). The organisation structure includes the rules and the responsibilities given to the employees in the company. The organisational structure determines the flows of information between the different levels of the company. The organisational structure of the LOREAL includes the:

Division of labour 

The loreal divides the labour according to the work performed so that it can ensure the development. The labour of the LOREAL is divided into the research and innovation centres, the unique portfolio of the brands is organised by the company according to the distribution and the geographical area and an industrial production.


The departments in the LOREAL are divided according to the products and the geographical area.

Product departmentalization 

The LOREAL groups its work by the product line. LOREAL includes the various international brands that consist of the various cosmetics such as hair care, colouring, and skin care, make up and different perfumes (Fisher et. al., 2012). The departments in the company are divided according to the products they deal in; different cosmetics products have the different departments. These brands in the company are managed in the groups that include the various experts in the channels of the distribution. The product organization is the major strength in the company.

Geographical departmentalization

The LOREAL has developed this field to the large extent (Aghion et. al., 2013). The board committee formed in the company includes the members from the different geographical locations or zones. The company has made addition in the field of innovation and research that is spreader in the different countries with the large number of experts.

Customer departmentalization 

One of the aims of the LOREAL is to make the products for all the diverse customers that are in the world. The products produced by the company are dependent on the lifestyle of the people.

In the early stage the LOREAL was characterized by the organic structure. After the expansion of the LOREAL they started to be highly specialised, the departmentalization was rigid, span of control was narrow and high formalization (Erneker & Glatte, 2012). The important decision made in the company is based on the centralised activity. All the centralized decision made in the company is according to the expert’s opinion and the decisions. 


Knowledge Management

The company as cosmetic products manufacturing is required knowledge of medical, laboratory, face cosmetic and skin types. There are staffs as experts in skin and doctors for quality check in laboratory. The laboratory is required approval from quality management and testing. The knowledge is approved by standard methods and operation procedures. The Cosmetic products are made by natural products and collection of flowers and herbs parts from selected forests. The Products are specified in natural process of production. The analysis is tested sequences on face types and number of people. The test is done in correct way than thesis of every product is completed and presented. So, there is also research work about cosmetic production and their fragrance (SORIN, 2018).  The research of herbs and flora are invited in innovations and ideas generation in company. The new concept is invited in company with logical reviews of productions and work as remedies. There is collection of natural remedies that is used in cosmetics for production and quality. The information’s of product wise are maintained on the product packaging and ingredients in quantity of percentages. The products are passed by quality check and management of packaging. It is resultant of various testing and hundred percent proofs from side effects (Arora, et. al., 2012).

 The knowledge of old literatures and information’s of ancient cosmetics are collected. The natural herbs and beauty products are used as ingredients of cosmetic products. It is also used in feedback information by customers. The ancient products are made information source for product and their promotions. The promotional methods are liable about natural process. It is more use for people attractions. The public responses for other products are collected and management of data base for new innovation of product. The knowledge management of products is invited as collection of information; prepare data base and analysis of data.  The data is research in way of their usefulness and stored (Liberda & Zajkowska, 2017).


 The innovation in company of production is required for best output of company. The innovation is generated by new ideas and efforts on research. The innovation is launch new product. It is a promotional activity of company. The company is innovative about product and launch new product in market. It is according to guideline and their process in intellectual properties and patent. The innovation is created in company by expert staff and team member’s collaborations. The innovation is invited by the feedback analysis of customers. The feedback is collected from the customers of other companies and analysed the problems around it.  Than the solution may come from team discussion and ancient knowledge of books. The herbs and flower knowledge and their quality are used for cosmetic products. The product is analysed by various testing process. Sometime innovation idea process is created new thing in production (Liberda & Zajkowska, 2017). It is also useful for process in market.  The ideas are invited in team meeting and staff suggestions because every idea has importance in way of company growth. It is innovation management as achievement of company. It is also developed company staff skills and knowledge of company. It is more informative to derive new production. It can be based on the climatic conditions and environmental protections for skin and faces clearing wash. It is similar in gender by some different formula and more production.  It is good for team development and management of company. It is promotional activity for company and remedies invented for public. It is become more trustable in products.  The innovation is cost effective by use natural products and ancient formulas. It is gained more publicity with trust in products (Benon & Jansson, 2016).


It can be concluded that the assignment includes the details of the LOREAL and the strategy used by the company to develop in the market. Through this assignment it can be said that the organisation structure followed by the company is product, customers and the geographic departmentalization. The company is using the various innovative strategies to enter the foreign market and prosper in it. It also includes the various competitive dynamics and problems faced in the various market conditions. The company follows the gender equity as the products of the company are related to both males and the females.

  • Aghion, P., Van Reenen, J. and Zingales, L., 2013. Innovation and institutional ownership. American economic review103(1), pp.277-304.
  • Arora, N., Agarwal, S. and Murthy, R.S.R., 2012. Latest technology advances in cosmaceuticals. International Journal of Pharmaceutical Sciences and Drug Research, 4(3), pp.168-182.
  • Benon, H. and Jansson, C., 2016. Competing for Talents: How a company can work with employer branding and talent management to attract talents.
  • Erneker, S. and Glatte, T., 2012. Sustainability policies for an industrial corporation’s real estate management: A case study. Corporate Real Estate Journal2(2), pp.94-104.
  • Fisher, D.R., Campbell, L.K. and Svendsen, E.S., 2012. The organisational structure of urban environmental stewardship. Environmental Politics21(1), pp.26-48.
  • Liberda, B. and Zajkowska, O., 2017. Innovation and Entrepreneurship Policies and Gender Equity. International Journal of Contemporary Management, (Number 16 (1)), pp.37-59.
  • Marcott, C., Lo, M., Kjoller, K., Domanov, Y., Balooch, G. and Luengo, G.S., 2013. Nanoscale infrared (IR) spectroscopy and imaging of structural lipids in human stratum corneum using an atomic force microscope to directly detect absorbed light from a tunable IR laser source. Experimental dermatology, 22(6), pp.419-421.
  • SORIN-CIPRIAN, T.E.I.U.Ş.A.N., 2018. DIFFERENCE BETWEEN MANAGEMENT CONTROLLER AND ASSISTANT MANAGER. Annals of ‘Constantin Brancusi ‘University of Targu-Jiu. Economy Series, (4).
  • Yousaf, U., Zulfiqar, R., Aslam, M. and Altaf, M., 2012. STUDYING BRAND LOYALTY IN THE COSMETICS INDUSTRY. LogForum8(4).