This summary has been provided to allow top managers and executives at L'Oreal a rapid appreciation of the content of this report. Those with a particular interest in the crisis scenario management and communication may read the report to take advantage of the more comprehensive description of potential crisis both at macro and micro level and the ways the defect product crisis scenario was dealt with to get the full benefits of the material present. L'Oreal is a worldwide leader in the cosmetics industry. It is a publicly traded company that operates through four divisions: professional products, consumer products, luxury products, and active cosmetics. Its main mission statement is "the effectiveness of our products is built on in-depth research that reflects our dedication to innovation, safety and the highest standards of reliability. By assessing potential threats at the macro level, marketers at L'Oreal have become increasingly alert of the possible danger of a crisis. The major ones are stated here, for a full review; please refer to the details in the report. There is still to this date increasingly links from top managers being supporters of very right-wing supporters and evolving L'Oreal in discriminatory practices. Also, the presence of harmful ingredients or product failure in cosmetics can lead to serious health consequences.
[...] Part II The Scenario October 2006: crisis detection L'Oreal has discovered that we are receiving an abnormal number of customer complaints when using Reflexions products. Indeed, the after sales service department kept recording tracks of warning signs. As referred by Barton (1993) the podromes in this case were: false lining colour when applying the product and severe scalp irritation. Organising a planning team: Esteban de la Pena, general manager of Haircare After Sales services department sent an email of high importance to Nicholas Dawson, President of Consumer Products in regards with an increasing number of complaints. [...]
[...] Details: Immediately upon discovering there was a crisis L'Oreal began to take action. The initial communication to the public was a radio interview. The purpose of this radio interview was to make the public aware that there was a problem with the Reflection colour line of hair products as well as to inform the public of the actions L'Oreal was taking to ensure consumer safety. These actions included removal of all the reflection line from the distributor's shelves and to communicate the customer service line where customers could receive more information. [...]
[...] Legal practices in Justice will be taken for disclaim Can us today, we customers' use L'Oreal hair colouring products? I can tell you that we are taking every possible precaution to assure the safety of our products. Listen Mr Sami OP, we exist because customers believe in our products and in our expertise concerning beauty care products. At this present moment, all L'Oreal products available at stores are 100% safe, quality and safety tested. As soon as we believe, the hair colouring will provide any default, we will re-market it Stopping product sales stopping profit? [...]
[...] IDENTIFICATION OF POTENTIAL CRISIS L'OREAL COULD FACE The next task is to look within those sources to identify things that could lead to trouble in the future. Part of the top management and the board of directors, we need to identify all possible scenarios for L'Oreal starting with “what if This will enable us to create and develop a viable Crisis Management program. As quoted by Sikich (1996) “failure to have a workable Crisis Management Program is akin to playing Russian roulette with an automatic pistol”[20]. [...]
[...] Identification of company stakeholders L'Oreal facing such a crisis had to follow a strategy, a communication strategy with the objective to not make its image suffer. Referring to Post, Preston & Sachs[3] (2002), the Stakeholders in a corporation are the individuals and the constituencies that contribute, either voluntary or involuntary to its wealth-creating capacity and activities and that are therefore its potential beneficiaries and/or risks bearers. As any groups or public affected by the organization 1999), the Stakeholders are to any person, group or organization that can affect the organization's performance or attainment of its goals and objectives (Bland[5], 1998; Lerbinger[6], 1997). [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
