Part 2: Case study: Staffing at L'Oral (50 points)

Until the mid-2000's, L'Oral had only worldwide product lines and brands (e.g. L'Oral, Biotherm, Garnier, Lancme, Maybelline, etc). Since the mid-2000's, L'Oral has strived to increase its multicultural product space coverage, by acquiring ethnic lines (e.g. SoftSheen-Carson for consumers of African origins).

"In our business, it is absolutely vital to be in tune with your consumers. And it's by listening very carefully to our consumers all over the world that we've come to understand the extreme diversity of their needs. (). But additionally () we have developed a unique portfolio of brands, each one with a different cultural origin to better satisfy the differences in sensitivities of people around the world" (Lindsey Owen-Jones, Chairman, 2006)

"a major part of our success is due to the diversity of the brands in our portfolio. Building further on this, we now have research centers not only in Europe, but also in North America, in Asia, and soon in Latin America to better understand the diversity of hair and skin types across all 5 continents." (Jean-Paul Agon, CEO)

"In order to be global, we must be global from within" [It] has more to it than simply attracting diverse [employee] profiles. We must go beyond representation and strive for equitable management in order to ensure that every [employee] has an equal opportunity of realizing their potential" (Lindsey Owen-Jones, Chairman, 2006).

While some L'Oral subsidiaries are very advanced in hiring from a very diverse pool of candidates in terms of country of origin and ethnicities (e.g., over 30% of L'Oral USA staff come from ethnic minorities), in other countries such as China or Japan where ethnic diversity is minimal and the local office is only expected to cater to local consumers, building a diverse workforce has not been a target, let alone a priority.

Please answer BOTH questions in about one page total:

Q1: Which type of International Business (IB) strategy is LOreal implementing? [Justify your type choice]

Q2: How does LOreals chosen IB strategy type align with the companys staffing strategy? Should they change anything about their staffing strategy?