l'oreal thailand

L’Oreal is top of the beauties and cosmetic company in the world include the Thailand which is the case study. Thailand have been characterized by excessive fixed assets investment, reckless borrowing, over ambitious local corporations and undisciplined financial institutions during the Asia crisis in 1997. L’Oreal Thailand consistently poor performance in the beauty industry such as low market share, sales and profitability. Chris Martin the managing director of L’Oreal Thailand was appointed in the year 2000 in order to increase profitability, sales and market share in the Thailand cosmetic and beauty industry. L’Oreal Thailand decided to make an innovation and change to survive via turnaround, marketing strategy, general management, global management, brand management, cross cultural management. In addition, understanding the environment issues and appropriate organisation design and development, right approaches to manage potential challenges are playing an important role in order to help the organization to make a nice turnaround.
First of all, the external environment has the potential to affect all or part of the organization. The environment of an organization can be understood by analyzing its domain within external sector. An organization’s environment is including task environment and general environment. The elements of task environment are interacting with the organization directly and also have a direct impact on the organization. Task environment is contained by industry sector, raw materials, human resources, market and so on Besides that, the sectors of general environment might not have a direct impact on the daily operations but will affect the organization indirectly such as the government sector, economic conditions, financial resources etc. Based on the L’Oreal Thailand case, there are many existing external environments issues which are strongly impacting the whole organization’s performance in Thailand, so it is very important to pay