BUSINESS STRATATEGY INTRODUCTION INTRODUCTION 1 TSK 11 a) PESTLE AND SWOT Analysis of the Organisation
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BUSINESSSTRATEGY
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1a) PESTLE and SWOT analysis of the organisation and an analysis to acknowledge theorganisational capabilities...........................................................................................................1b) Prepare an analysis of competitive business environment of company with the help ofPorter's five forces.......................................................................................................................5TASK 2............................................................................................................................................6a) Evaluation of various types of strategic direction available to the organisation.....................6b) Justification and recommendation of most appropriate growth platform and strategies........7c) Strategic management plan with strategies, objectives and tactics.........................................8CONCLUSION..............................................................................................................................10REFERENCES ...............................................................................................................................1
INTRODUCTIONBusiness strategy is described as a set of decisions that guides and direct a businesspersonnel in attaining specific business targets and objectives. Business strategy allow acompany to sustain a advantageous competitive position within market, by satisfying the needsand requirements of customers in a desired manner (Bharadwaj and et. al., 2013). Thisassignment is based on Loreal which a personal and beauty care organisation, headquartered inClichy with registered office in Paris, France. Company operates its business operations at globallevel and offers skin and hair care, sun protection, perfume and make-up products to itscustomers. This report covers internal and external business analysis so that a basis for strategicplanning can be prepared. Also, it includes Porter's model to analyse the competitiveenvironment of company. Different types of strategic directions are mentioned so that companycan appropriately take its strategic decisions. Beside this, justification and recommendations aregiven regarding business strategies. At last, an appropriate strategic business plan is formedincluding strategies, objectives and tactics. TASK 1a) PESTLE and SWOT analysis of the organisation and an analysis to acknowledge theorganisational capabilitiesLoreal is a beauty and personal care cosmetics company which is headquartered inClichy, France. Company is providing sun protection, Men's skin care, hair and skin careproduct, hair colour etc. to its consumer. Due to the quality of products, Loreal is a renownedcosmetic company at global level. To analyse business environment in an appropriate manner,both internal and external analysis is needed. In this respect, PESTLE and SWOT analysis inrespect with Loreal is carried out below:PESTLE analysis: PESTEL analysis is the tool to analyse macro level factors of thecompany. It has political, economical,social,technological,environmental and legal factors thatimpacts the company. Political factors: This factor help to understand how much government policies (fiscalpolicy, trade policy) and regulations can affect any company. Political factor in contextof l'oreal is that cosmetic industry is regulated by European legislation in UK so companyhas to do its production and other activities within the policies and framework of UK1
government. In case of breach of the law, company has to face the consequences andpenalty.Economic factors: This factor helps to understand how the economic condition (inflationrate, GDP, development index) of a country can affect the company. In context of l'orealNow days cosmetic items counted in the basic requirement of the human beings that iswhy even after the recession period in UK, customers are not ignoring to buy thecosmetics and this is counting as the positive impact on the l'oreal. Even in situation ofinflation in UK l'oreal is able to maintain its sales level (Bharadwaj et. al., 2013).Social factors: These factors help in understanding the effect of social environment ofthe market, cultural trends & population analytics. In context of l'oreal this factor affectthe company when taste and preferences of the customers changes and they wantsomething new in the products. This factor bring the impact of innovation in thecompany, they start producing goods according to the requirement and choice of buyerswhich increases the sale of the company by attracting customers. But sometime theserapid cultural change also put negative impact on the company because they manufacturethe product on large amount And with change in demand & taste some product remainunsold and get expires & left for no use.Technological factors: This factor is about how the technologies affecting theenvironment of Loreal business. Technology plays a very important role in growth of thecompany and for achieving that growth company is focusing on technologicaldevelopment in their business by launching some app named MY UV PATCH whichhelps in monitoring the UV rays in the skin. these type of innovative technologies aregiving positive impact on the company as well as help the companies to increase theircustomers.Environmental factors: These factors are how the environment is affecting the l'orealbusiness. Change in climatic conditions and weather impact the business of l'orealbecause some products of company are made for the particular weather conditions, likecreams made for winter purpose can not be used in summers because it will be verysticky for summers (Blackburn, Hart and Wainwright, 2013). So these environmentalchanges slow downs the sale of some products of the company.2
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