Increasing Effectiveness

The aim of this essay is to reveal the problems of company L’Oréal, try to

solve them and therefore increase efficiency and/or effectiveness.

L’Oréal used to be a worldwide known company with high profit, and many

subsidiary companies. As years passed by, the profit and the number of subsidiary

companies grew. Naturally, it was worth it to have such a high number of them,

because the present economic status made it possible. But around 2008, the whole

world started to suffer from the financial crisis. It is logical, that if people has to

spend less money, they will cut the amount of money spent on cosmetics,

entertainment and will decrease the consumption of high quality products.

We also know that the producs in cosmetics industry are not really differ

from each other, that is why people will choose the cheaper ones, because of the

crisis. L’Oréal should specify itself to be more conspicouos from the other

products. Real life examples show that if someone does many different things, she

or he will be less specified than doing less things in the same time. For example if

I try to study while the radio and TV are switched on, I will not be as effect ive as

I would be if I would concentrate only on studying.

We think that the proper solution would be the decreasing of the number of

the subsidiary companies because of the case written above. Therefore L’Oréal

would be able to reduce the costs of advertising (which they spend a large amount

of money on). So the subsidiary companies could co-operate with the paternal

company