In a global scenario, quick decisions need to be taken by management in order to retain market share while developing a large base of loyal customers. Thus, L'Oréal Paris has put in place an organizational structure where regional managers are responsible for formulating operational strategies. The current approach is not expected to be changed due to the diversity of L'Oréal Paris' product segments. However, the company must exercise firm control over the operations of several departments. A highly flexible organizational structure often leads to delays in operational procedures, damage to brand reputation and customer complaints. It is advisable to maintain a central authority to evaluate the performance standards of team members and take necessary actions to align individual interests with the common goal. For example, any change initiatives designed by regional leaders can only be properly communicated with the support of a central agency.