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In todays globalized business landscape, organizations often operate in multicultural or crosscultural environments, where employees from diverse cultural backgrounds come together to work towards common goals. While such diversity can bring immense creativity and innovative perspectives, it also presents unique challenges in managing cultural differences, communication styles, and work practices. One company that has faced and addressed these challenges is LOréal Vietnam, a subsidiary of the renowned French beauty and cosmetics giant, LOréal. This report explores the multicultural and crosscultural management approach adopted by LOréal Vietnam to effectively navigate the complexities of a diverse workforce. The report will analyze the challenges faced by the company, the strategies implemented to overcome these challenges, and the outcomes achieved through these solutions. By examining LOréal Vietnams cultural training and sensitization initiatives, establishment of cultural conduct guidelines, communication and language support programs, adaptive management approach, and multicultural collaboration strategies, this report aims to provide valuable insights into how companies can create inclusive and harmonious work environments in diverse settings. Through a comprehensive analysis of the companys solutions, this report will shed light on the effectiveness of LOréal Vietnams multicultural management approach and offer valuable recommendations for organizations seeking to embrace diversity, foster effective crosscultural collaboration, and excel in todays globalized business world
VIETNAM NATIONAL UNIVERSITY UNIVERSITY OF ECONOMICS AND BUSINESS (Faculty of International Business and Economics) MODULE: INTERNATIONAL MANAGEMENT, CROSS-CULTURAL AND TRANSNATIONAL MANAGEMENT (222-INE3223-E *-01) FINAL ASSIGNMENT "Doing Business in Vietnam: A Multi-Cultural/Cross-Cultural Management Approach" Instructor: Assoc Prof Dr NGUYEN VIET KHOI Student in charge: Le Thuong Huyen Student ID: 20050839 Class: QH - 2020 – E KTQT CLC Hanoi - August 2023 TABLE OF CONTENTS TABLE OF CONTENTS TABLE OF IMAGES INTRODUCTION CONTENT OVERVIEW OF THE CASE STUDY (COMPANY) DEFINE THE PROBLEMS 2.1 Cultural misunderstanding 2.2 Change in management and adaptation HOW DID THE COMPANY OVERCOME THE PROBLEMS 3.1 Cultural Training and Sensitization 3.2 Establishing Cultural Conduct Guidelines in a Multicultural Environment 3.3 Communication and Language Support 10 3.4 Adaptive Management Approach 11 3.5 Multicultural Collaboration 12 ANALYSE THE COMPANY'S SOLUTIONS 14 4.1 Analyse the “Cultural Training and Sensitization” solution 14 4.2 Analyse the “Establishing Cultural Conduct Guidelines in a Multicultural Environment” solution 15 4.3 Analyse the “Communication and Language Support” solution 16 4.4 Analyse the “Adaptive Management Approach” solution 16 4.5 Analyse the “Multicultural Collaboration” solution 17 SUGGESTIONS FOR THE COMPANY 18 CONCLUSION 21 THANK YOU 23 REFERENCES 24 TABLE OF IMAGES Figure 1.1: Logos of L'Oreal Group and L'Oreal Vietnam Figure 2.1: Country Comparison between France and Vietnam (Hofstede Insight n.d) Figure 3.1: L'Oreal's employer commitment 10 INTRODUCTION In today's globalized business landscape, organizations often operate in multicultural or cross-cultural environments, where employees from diverse cultural backgrounds come together to work towards common goals While such diversity can bring immense creativity and innovative perspectives, it also presents unique challenges in managing cultural differences, communication styles, and work practices One company that has faced and addressed these challenges is L'Oréal Vietnam, a subsidiary of the renowned French beauty and cosmetics giant, L'Oréal This report explores the multicultural and cross-cultural management approach adopted by L'Oréal Vietnam to effectively navigate the complexities of a diverse workforce The report will analyze the challenges faced by the company, the strategies implemented to overcome these challenges, and the outcomes achieved through these solutions By examining L'Oréal Vietnam's cultural training and sensitization initiatives, establishment of cultural conduct guidelines, communication and language support programs, adaptive management approach, and multicultural collaboration strategies, this report aims to provide valuable insights into how companies can create inclusive and harmonious work environments in diverse settings Through a comprehensive analysis of the company's solutions, this report will shed light on the effectiveness of L'Oréal Vietnam's multicultural management approach and offer valuable recommendations for organizations seeking to embrace diversity, foster effective cross-cultural collaboration, and excel in today's globalized business world CONTENT OVERVIEW OF THE CASE STUDY (COMPANY) L'Oreal Paris is a French cosmetic brand founded in 1909 by a French chemist named Eugène Schueller The company's first product was only hair dye Through strategic brand acquisition and innovative global expansion, the company has achieved a strong reputation and built up into a multinational company After more than 100 years of development, L'Oreal is now one of the top-class cosmetic brands in the world, with diverse product lines from hair care, makeup, and skin care In 2007, L'Oreal Paris officially opened a branch in Vietnam, named L'Oreal Vietnam, and quickly led the beauty market here Up to now, L'oréal has brought to the Vietnam market 10 cosmetic brands in categories: Luxury goods (Lancome, Yves Saint Laurent, Kiehl's, shu uemura), Consumer goods (L'Oréal Paris and L'Oréal Paris) Maybelline New York), Professional Hair Industry (L'Oréal Professionnel and Kérastase), and Cosmetics Industry (Vichy and La Roche-Posay) Owning diverse and complementary brands from drugstores to luxuries to cover various needs of customers enables L’Oréal Vietnam to have competitive advantages over their competitors in the market Figure 1.1: Logos of L'Oreal Group and L'Oreal Vietnam In 2019, L'Oréal Vietnam was honored with the HR Asia award for "Business with the Best Working Environment in Asia." This recognition was based on a survey conducted among employees at 265 large-scale and high-growth companies in Vietnam, affirming L'Oréal's commitment to providing an excellent work environment in the country However, the characteristic of multinational enterprises (MNEs) is described as the cultural diversity within the working environment MNEs face many challenges in governance caused by cultural diversity such as: cultural misunderstanding, language barriers, conflicts, and inefficiency of task performances; and L'Oreal Vietnam is not an exception How have they faced these challenges to excel at receiving prestigious awards for a desirable working environment, becoming a famous case study in cross-cultural management? DEFINE THE PROBLEMS 2.1 Cultural misunderstanding 2.1.1 Particularism and Universalism The first dilemma is the cultural misunderstanding between L’Oréal Vietnam and its headquarter – L’Oréal Paris This issue arises from a culture dimension postulated in Trompenaars's model of national cultural differences of the two terms “universalism” and “particularism” (Harzing & Ruysseveldt 2014) In Vietnam, engagements between employees and managers are highly focused which attributes to enhance devotion in the working environment (Xoan & Earl 2020; Rich, Lepine & Crawford 2010) At L’Oréal Vietnam, employees and managers work under strengthened relationships which create flexibility over discipline for minor mistakes that can considerably be tolerance The acceptance towards employee's blunders implies that individual circumstances can be more important than certain rules within the organization (Long & Fox 1995; Lindberg, Ojakangas & Prozorov 2016) This notion has illustrated the presence of high particularism in the Vietnamese context, which is against the norms and values of L’Oréal Paris where high universalism is highly concentrated In fact, the working environment in France is more formal where appointments are frequently made for all business matters and people not mix private and public spheres in workplace context (Touron 2011) Thereby, the culture is perceived as task orientation rather than social orientation (Touron 2011) Those contradictory patterns compared to Vietnam, have created a reluctance to bypass mistakes occurring in the workplace Thereby, different levels of forgiveness from top managers towards employees can create unfairness, which possibly trigger conflicts, bullying, discrimination, or psychological distress that detrimentally affects task performances (Nguyen, Teo & Dinh 2020; Tuckey et al 2009) Consequently, contracting culture poses challenges for L’Oréal Vietnam to transfer ideas from a global project to a domestic project, as practices are applied differently between cultures of universalism and particularism 2.1.2 High-context and Low-context Communication The second challenge related to cultural misunderstanding is the difference in communication styles between high-context and low-context cultures In Vietnam, communication is considered a high-context culture where people rely heavily on nonverbal cues, implicit communication, and contextual understanding to convey messages (Hall 1976) Subtle gestures, facial expressions, and tone of voice are significant in interpreting the meaning behind words (Nguyen & Barling 2012) On the contrary, France, as a low-context culture, emphasizes direct and explicit communication with a focus on clarity and precision (Hall 1976) In a low-context culture, messages are usually conveyed through explicit language, and people expect clear and straightforward communication This cultural difference in communication style can lead to misunderstandings and misinterpretations between L'Oréal Vietnam and its headquarters Employees in Vietnam might not be accustomed to the direct communication style of their French counterparts, leading to confusion and potential conflict in decision-making processes and project implementations 2.1.3 Language barrier Language barrier occurs both in the organization itself and in cross-culture business, which poses complex obstacles for the organization (Henderson 2005) Within the organization, the employees seek information and instruction from the top managers to provide clarification of work tasks (Madera, Dawson & Neal 2014) Previous studies from Mount & Back (1999) demonstrated that the manager believed their messages should be clearly and accurately conveyed by subordinates for the proper process of task performance However, at L’Oréal Vietnam where members experience linguistic diversity, communication becomes more challenging as the manager concerns that the employees not understand their messages or highly rely on other employees' translations Multilingualism, which means the co-existence of more than one language in the organization, can lead to misconceive messages, since the interaction is primarily orientated towards the members of one group, thereby little information is exchanged across linguistic boundaries (Tange & Lauring 2009) Furthermore, the language barrier also creates ambiguity involving uncertain work-related expectations which leads to subordinates' failure of task responsibility (Eatough et al 2011) Regarding cross-cultural business, the language barrier causes delay in the working process when the headquarter – L’Oréal Paris assigns a global project to L’Oréal Vietnam The translating process of transferring ideas to be appropriate in the Vietnamese context may require a rigorous and systematic multistep method (Kiing, Rajgor & Toh 2016) Hence, it is frustrating to ensure the translation is equivalent, consistent, and meaningful in the Vietnamese language, as inaccurate translation can cause conflicts among the organization and crisis for the brand 2.2 Change in management and adaptation 2.2.1 Uncertainty avoidance The issue is that Vietnamese workers find the applied management practice of L’Oréal Corporation unfeasible to adapt to local operations Because it shows that each company has a particular organizational culture which could be difficult for someone with a completely different background to assimilate (Trindade 2015) As a result, a lack of consensus is posed to the new management practice, which is the result of cultural differences proven in Hofstede's dimension (Schein & Scheiner 2006) The presence of the issue illustrates L’Oréal Vietnam and L’Oréal in French headquarters have different values of uncertainty avoidance and individualism (Figure 1) L’Oréal Vietnam employees have a low uncertainty avoidance culture that encounters a receptive attitude of adventurousness, synthetic thinking, and openness (Nguyen & Aoyama 2013) These workers tend to enjoy flexible working styles and emphasis the importance of experience and practices through ambiguity (Phan n.d) As unforeseen events will be perceived as opportunities for low-uncertainty workers to self-improvement (Guss et al 2012) Together with the flexible preference and comfortable feeling in an ambiguous environment, people are highly creative in the workplace In France, a high uncertainty avoidance society, people prefer consistency and avoid approaching uncertain situations because they feel more stressful to handle with ambiguity that could affect their job performance and security (Stower 2013) In the workplace, managers reduce risks and maintain stability by working based on structures and strict regulations Meanwhile, L’Oréal Vietnam employees have to follow orders and are less likely present alternative plans to the supervisors since there is a fear of breaking their expectations Consequently, staff with limited self-decision rights might decrease management innovation, corporate creative system, and adaptive ability (Shane 1995) Therefore, if L’Oréal wants to fully utilize the talents brought by new workers, its management should be adjusted to the structure of the local firm (Trindade 2015) 2.2.2 Individualism L’Oréal Vietnam's operation suffers from conflict management which can be explained as Vietnamese workers embrace collectivism culture, while L’Oréal headquarter in Paris ties to the self-concept of individualism Thus, cultural values create a substantial influence on particular leadership styles and working structures, which in turn impact subordinates' reactions to work differently (Yang et al 2012) For collectivism, L’Oréal Vietnam prioritizes the interdependence and harmony among group members where the corporation puts efforts on promoting employee corporation in achieving organization-wide objectives They believe that collaboration and group support can avoid conflicts to maintain a comfortable workplace and enhance the tendency of self-improvement (Nguyen & Nguyen 2012; Goncalo & Staw 2006) Moreover, collectivism culture reflects supportive leader behavior where employees receive and respond with such as extra-role behavior, honesty, and loyalty (Kececi 2017) Overall, collectivism transfers supportive management which in turn allows subordinates to promote the group's interest and organizational performance (Graham 1989) However, in France, people tend to have high individualism, prioritizing the fulfillment of individual desires over teamwork The empowerment of doing work individually allows intensive innovation within the organization because innovation is the outcome of a free flow of ideas generated by dissent rather than societal consensus (Gacolo & Staw 2006) Meanwhile, L’Oréal Vietnam workers will suffer from frustration because lacking group support causes them to lose direction and be isolated from the organization (Manetje 2009) Moreover, high individualism is examined to have impacts on conflict management, such as disengaged collaboration and overwhelming competition (Purohit & Simmers 2006) Figure 2.1: Country Comparison between France and Vietnam (Hofstede Insight n.d) HOW DID THE COMPANY OVERCOME THE PROBLEMS 3.1 Cultural Training and Sensitization To address the cultural misunderstanding between L'Oréal Vietnam and its headquarters, the company implemented cultural training and sensitization programs for its employees These programs aimed to create awareness and understanding of the cultural differences between the two countries and their respective work environments Employees were educated about the concept of universalism and particularism and the implications of these cultural dimensions on their work practices and interactions with colleagues from different cultural backgrounds One exemplary program is the L'Oréal SEEDZ Management Trainee Program Launched in July every year, the program lasts for 18 to 24 months and serves as a postgraduate program that allows trainees to experience rotational positions across various business functions, including Sales, Marketing, Digital, Supply Chain, Finance, Corporate Communications, and Human Resources These diverse roles provide them with opportunities to explore the company, its culture, brands, and products on both local and international scales Through cultural training, L'Oréal Vietnam encouraged its employees to adopt a more open and inclusive mindset, respecting different cultural norms and practices The company organized workshops, seminars, and cross-cultural exchange programs to foster a greater appreciation for diversity and promote effective communication across cultures By promoting cultural sensitivity, L'Oréal Vietnam aimed to reduce misunderstandings and conflicts arising from cultural differences and create a more harmonious work environment 3.2 Establishing Cultural Conduct Guidelines in a Multicultural Environment For the management environment in Vietnam, L'Oreal has published a dedicated Code of Ethics called "The Way We Work." Under the section "As an Employer", L'Oreal emphasizes the responsibility to "Promote diversity, equity, and inclusion (DE&I)” as managers." With the aim of fostering fair treatment, access, promotion, and opportunities for everyone, the company is committed to creating an inclusive and language could assist their colleagues in learning the other language This initiative aimed to foster better communication and understanding between employees of different language backgrounds Moreover, the company implemented communication training programs that emphasized the importance of clear and direct communication in certain contexts while also encouraging employees to pay attention to non-verbal cues and contextual understanding in others By improving communication skills and language proficiency, L'Oréal Vietnam sought to bridge the communication gap between its Vietnamese workforce and the French headquarters, thereby minimizing misunderstandings and improving collaboration 3.4 Adaptive Management Approach To address the challenges of uncertainty avoidance and individualism, L'Oréal Vietnam adopted an adaptive management approach The company recognized the need to strike a balance between the global management practices from the French headquarters and the local adaptation necessary for effective operations in Vietnam L'Oréal Vietnam promoted a more flexible and empowering management style that allowed employees to participate in decision-making processes and contribute their insights and ideas This approach aimed to encourage innovation and creativity within the organization, leveraging the strengths of the Vietnamese workforce's low uncertainty avoidance and collectivist tendencies This flexibility is further enhanced by the new global “Work Together” policy Eligible employees may work remotely up to two days per week, on a voluntary basis, by agreement with their line manager, and in accordance with the team's organizational structure Not only L'Oreal Vietnam, all of the Group's subsidiaries have now adopted this policy, wherever practicable, due to the local health situation In addition, L'Oreal Vietnam has now established a flexible working time policy, allowing employees from all selected job categories to choose to work part-time By adopting an adaptive management approach, L'Oréal Vietnam sought to create a work environment that valued both individual initiative and collaborative efforts, 11 facilitating better conflict management and aligning its management practices with the cultural values of its diverse workforce 3.5 Multicultural Collaboration A Multicultural Collaboration strategy involves partnering with various stakeholders to foster mutual growth and understanding L'Oreal has successfully implemented this strategy, helping the company enhance its image in Vietnam, strengthen collaborations, and especially attract top talent Below are some recent exemplary projects under this strategy: L'Oreal Professionnel with the development program for top hair artists in Vietnam After over 10 years of presence in the Vietnamese market, L'Oreal Professionnel officially introduced the Collaboration Strategy with Hair Artists in Vietnam on July 7, 2020 The team of Hair Artists invited by L'Oreal Professionnel to participate in the hair industry's development strategy consists of exceptional hair stylists with extensive experience, in-depth knowledge of hair, and the use of professional and modern hair products to ensure optimal customer satisfaction This team also has close relationships and a certain influence over other salons in the market From here, L'Oreal has established close cooperation with the leading hair artists in Vietnam, creating opportunities to share knowledge and enhance skills Through workshops and seminars, the company provides these artists with access to the latest techniques and global hair fashion trends As a result, these artists not only improve their creativity but also elevate the quality of hair services, contributing to the strong development of the hair industry in Vietnam Simultaneously, L'Oreal successfully consolidates its competitive advantage by understanding local market preferences and trends, and holding quality cooperative relationships with top hair artists in Vietnam The Central Committee of the Vietnam Women's Union and L'Oreal Vietnam Co., Ltd implemented a program to support economic development and digital capacity for women (2022) The Central Committee of the Vietnam Women's Union and L'Oreal Vietnam Co., Ltd have implemented a program to support women's economic development and digital capacity 12 L'Oreal's outstanding contributions to this program are: L'Oreal Unesco's International Award for the Development of Women in Science (for female PhDs and Vietnamese female professors); Beauty vocational training: creating 15,000 jobs for women in 45 provinces; 100% sponsorship of the programs "Training to improve digital capacity for Vietnamese women", "Training modern hair industry for women with difficult circumstances" Cooperation with the Vietnam Women's Union helps L'Oreal better understand the culture, customs, and values of Vietnamese women This allows the company to customize its strategy in business as well as in recruitment This partnership not only enhanced L'Oreal's positive image within the community but also contributed to attracting and retaining skilled female talent, an important human resource in the beauty industry RMIT to partner with L’Oreal for Vietnam Brandstorm competition After the Memorandum of Understanding (MoU) between L'Oreal and RMIT was signed, RMIT Vietnam students (along with five other local universities) had the opportunity to participate in the Brandstorm competition for the first time in Vietnam in 2020 Students from six universities will form a three-person team to tackle the mission of building a plastic-free future in the beauty industry by coming up with an innovative idea and honing it throughout selection process Then they will have a chance to become the champion of the country In addition to providing opportunities for students through the competition, the MoU agreement will further cooperate in a number of areas, including Work Integrated Learning (WIL) courses, company tours, internships, internship management programs, research, guest talk, seminar or seminar The Brandstorm program has become a bridge connecting L'Oreal and the student community, providing an exciting platform for students to develop and showcase their creativity, project management skills, and teamwork abilities It is worth noting that this program not only aims to seek innovative and potential solutions for L'Oreal but also offers students an authentic insight into the beauty industry Through exposure and collaboration with a renowned brand like L'Oreal, Gen Z talents can gain a better 13 understanding of the working environment in this field and leverage potential career opportunities For L'Oreal, the Brandstorm program goes beyond building a positive image within the student community; it also contributes to enhancing its competitive advantage in attracting and retaining young talents The Gen Z generation is considered a pool of potential workforce with energy and creative ideas, and they have the ability to bring about changes and shape the future of the beauty industry ANALYSE THE COMPANY'S SOLUTIONS 4.1 Analyse the “Cultural Training and Sensitization” solution The “Cultural Training and Sensitization” solution of L'Oreal Vietnam has achieved significant positive results in addressing cross-cultural management issues within the company Enhanced cultural awareness: The Cultural Training and Sensitization program has helped L'Oreal Vietnam's employees gain a clear understanding of the cultural differences between Vietnam and the international context, especially the headquarters in France Through learning and understanding cultural dimensions, employees have gained deeper insights into effective work practices and communication in a multicultural environment Fostered a spirit of collaboration: Cultural Training and Sensitization have promoted a sense of collaboration and unity among the workforce Employees have learned to respect and embrace cultural diversity within the company, creating favorable conditions for working together and resolving conflicts constructively Reduced cultural misunderstandings: By increasing cultural sensitivity, L'Oreal Vietnam has minimized misunderstandings regarding different cultural norms and practices, thereby avoiding unnecessary conflicts and fostering a harmonious work environment Created a positive work environment: This program has created a positive work environment where employees feel comfortable expressing themselves and confidently contributing their ideas This has contributed to employee retention and attraction of top talent, especially from the dynamic and innovative Gen Z generation 14 Promoted personal development: The program has provided opportunities for employees to experience and develop skills through the L'Oréal SEEDZ Management Trainee Program This not only enhances their work and project management capabilities but also expands their knowledge about the company and the industry on both local and international scales Furthermore, Cultural Training not only focuses on explicit cultural differences but also addresses unconscious biases that may exist within the workforce By raising awareness of these biases and providing tools to challenge and overcome them, the program can lead to a work environment that is more reflective and equitable 4.2 Analyse the “Establishing Cultural Conduct Guidelines in a Multicultural Environment” solution With this solution, L’Oréal has promoted diversity, equality, and inclusion, committing to establishing a cohesive culture for all employees, ensuring a fair and respectful environment without discrimination based on personal factors This creates favorable conditions for cooperation and effective collaboration among members in a multicultural environment A fair and diverse environment that encourages development is always a powerful magnet, especially for Generation Z - a dynamic, creative generation, closely connected to the potential customer base of a cosmetic brand like L’Oréal Furthermore, an inclusive and diverse work environment is essential for a cosmetic company like L'Oreal, as it helps the organization better understand and serve the diverse needs and preferences of customers The cultural conduct guidelines improve effective communication and collaboration among employees from different cultural backgrounds, helping them gain a better understanding of the diverse markets they are serving However, managing and enforcing cultural conduct guidelines is a complex process that requires active participation from both leadership and employees To address this issue, L'Oreal Vietnam needs to strengthen monitoring and evaluate the effectiveness of enforcing the cultural conduct guidelines Organizing regular training sessions, workshops, and meetings between management and employees can enhance 15 awareness and commitment from all parties Additionally, the company should establish appropriate feedback mechanisms, allowing employees to safely and confidently report any violations of the cultural conduct guidelines 4.3 Analyse the “Communication and Language Support” solution Investing in language support programs and providing language courses demonstrates the company's commitment to enhancing employees' language proficiency, a crucial aspect for effective communication Encouraging the establishment of language exchange programs within the organization is a commendable initiative as it fosters better communication and understanding between employees of different language backgrounds This approach not only facilitates language learning but also promotes a sense of collaboration and camaraderie among employees from diverse linguistic backgrounds Moreover, the implementation of communication training programs is another valuable aspect of this solution By emphasizing the importance of clear and direct communication in certain contexts and encouraging attentiveness to non-verbal cues and contextual understanding in others, L'Oréal Vietnam aims to improve the overall communication skills of its workforce This is crucial in bridging the communication gap between the Vietnamese workforce and the French headquarters, which can lead to more effective collaboration and reduced misunderstandings However, not all employees may be willing or enthusiastic to invest their time and effort in participating in such courses To successfully address the issues related to language and communication in a multicultural environment, fostering engagement and active participation from both employees and leaders is essential If employees perceive the solution as positively impactful and beneficial to them, they will be more interested in engaging in training activities and language support programs 4.4 Analyse the “Adaptive Management Approach” solution One of the key strengths of this approach is its promotion of a flexible and empowering management style Allowing employees to actively participate in decisionmaking processes and contribute their insights fosters a sense of ownership and 16 engagement among the workforce This empowerment can lead to increased innovation, creativity, and problem-solving capabilities, which are crucial in a dynamic and competitive market Moreover, leveraging the Vietnamese workforce's low uncertainty avoidance and collectivist tendencies through the adaptive management approach can be advantageous Emphasizing collaboration and team efforts aligns well with the cultural values of the local workforce and contributes to better conflict management and cooperation among employees However, implementing a flexible management style also requires a focus on developing management skills for both employees and leaders This may require investment in training and development to ensure that managers understand and can adapt to the new and effective management style Besides, implementing flexible work policies and remote work may also face some challenges in terms of management and supervision To ensure effectiveness and fairness in remote work, the company needs to establish monitoring mechanisms and evaluate the performance of remote employees Additionally, the lack of direct communication and face-to-face interaction can lead to difficulties in building strong coworker relationships and cohesive teams 4.5 Analyse the “Multicultural Collaboration” solution The "Multicultural Collaboration" solution implemented by L'Oréal Vietnam is a significant approach to address the complexities of managing a diverse workforce and enhancing cross-cultural cooperation Building partnerships with local organizations, suppliers, and customers from diverse cultural backgrounds can further enrich the company's understanding and adaptability to different cultural contexts Leveraging Local Expertise: Through L'Oreal Professionnel's development program for top hair artists in Vietnam, L'Oreal has established close collaboration with leading hair stylists in Vietnam, creating opportunities to attract talent and hair industry experts to join the company and contribute to the development of a professional team that understands the preferences of Vietnamese consumers Building a Positive Image - Attracting Human Resources: Collaborating with the Vietnam Women's Union allows L'Oreal to maximize the values and capabilities of 17 women, including hair and beauty experts Honoring and supporting women in the workplace not only positively impacts L'Oreal's image but also attracts talented human resources Women are encouraged and provided with opportunities to develop their skills and abilities, making them more likely to choose L'Oreal as their ideal workplace This helps the company attract outstanding and diverse individuals, along with potential and innovation in management and business Seeking Innovative Ideas - Attracting Young Talent: Collaborating with educational institutions, such as RMIT Vietnam, through the Brandstorm competition, strengthens connections with young talents By interacting with students and creating conditions for creativity and innovation, L'Oreal creates a positive image in the student community and attracts potential young talents to the beauty industry This collaboration also provides students with opportunities to face challenges and practical opportunities in the beauty industry Through exposure and collaboration with a renowned brand like L'Oreal, Gen Z talents can gain a better understanding of the working environment in this field and leverage potential career opportunities For L'Oreal, the Brandstorm program goes beyond building a positive image within the student community; it also contributes to enhancing its competitive advantage in attracting and retaining young talents The Gen Z generation is considered a pool of potential workforce with energy and creative ideas, and they have the ability to bring about changes and shape the future of the beauty industry However, multicultural collaboration is an ongoing and continuous process Maintaining and developing collaborative relationships with stakeholders and ensuring the sustainability of projects and collaboration programs are also challenges that L'Oreal should pay attention to SUGGESTIONS FOR THE COMPANY ● Continuous Cultural Training and Sensitization: L'Oréal should continue providing cultural training and sensitization programs for all employees, including managers, to deepen their understanding of cultural differences These programs should address not only explicit cultural dimensions but also unconscious biases and stereotypes By fostering cultural awareness and 18 empathy, employees will be better equipped to navigate cross-cultural interactions effectively ● Inclusive Leadership Development: Implement leadership development programs that focus on inclusive leadership skills Leaders should be trained to lead diverse teams effectively, promoting collaboration, and creating an environment where all employees feel valued and included Inclusive leaders can leverage the strengths of a diverse workforce and encourage innovation and creativity ● Regular Cross-Cultural Communication Workshops: Organize regular workshops on cross-cultural communication, emphasizing effective communication strategies in both high-context and low-context cultures Employees should be encouraged to share their communication challenges and experiences, facilitating mutual understanding and learning from each other ● Flexible Management Approach: Continue the adaptive management approach that empowers employees and fosters a collaborative work environment However, ensure that managers are equipped with the necessary skills to effectively manage remote and flexible work arrangements Regular feedback and performance evaluations should be implemented to maintain productivity and teamwork ● Foster Multicultural Collaboration: Continue building partnerships with local organizations, educational institutions, and community groups to enhance multicultural collaboration Engaging with diverse stakeholders will provide valuable insights into the market and customers, leading to better products and services tailored to different cultural preferences ● Regular Cultural Audits: Conduct regular cultural audits to assess the effectiveness of the company's cross-cultural management practices and identify areas for improvement Employee feedback and engagement surveys can also provide valuable insights into the company's multicultural initiatives 19