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Business Strategy INTRODUCTION

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Added on  2020-10-23

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These kind of strategies are formulated for a long time period so that company will gets profitability from it form a long time period.It also provides opportunities to the organisation to produce better quality products so that the competitive advantage in the marketplace can be gained. TASK 1 1 Applying the appropriate framework analyses the impact and influence of the macro environment LorealL’Oréal was founded in 1909 by the Eugene Schuller and deals in cosmetics industry.

Business Strategy INTRODUCTION

   Added on 2020-10-23

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Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31 Applying appropriate framework analyses the impact and influence of the macroenvironment............................................................................................................................32. Porter's Five Forces Model for examining competitive environment...............................7TASK 2 .........................................................................................................................................103. Evaluation of different types of strategic directions available to an organization..........104. Strategic management plan for L’Oréal by including strategies, objectives and tactics..12CONCLUSION..............................................................................................................................16REFERENCES..............................................................................................................................17
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INTRODUCTIONBusiness strategy is defined as a plan or policy of a firm which are made for achievingpre-set goals or objectives. In addition to this, it is a process of policy formulation whichprovides directions to the whole departments of firm so that the goals of organisation can beachieved in proper manner. It also provides opportunities to the organisation to produce betterquality products so that the competitive advantage in the marketplace can be gained. The chosencompany for this assignment is L’Oréal which deals in personal care industry along withheadquarters in Clichy, France. This report will discuss about the impact and influence of themacro-environmental factors on the business organisation along with capabilities and internalenvironment of a company. Various kinds of analytical tools which helps the management informulation of business strategies will be also covered in this report. TASK 11 Applying appropriate framework analyses the impact and influence of the macro environmentL’Oréal was founded in 1909 by the Eugene Schuller and deals in cosmetics industry.organisation is operating its operational activities in all over the world and also is a leader in thepersonal care industry. The company offers a variety of product in the cosmetic industry throughwhich they create a huge customer base in all over the world. The main ground behind hugecustomer base of L’Oréal is their portfolio management because organisation offers a hugevariety of skin care products to their customers. In current scenario, there is a huge competitionin the marketplace because customers are very conscious about their skin and personal care sothat managers have to formulate effective strategies so that L’Oréal can be sustained in themarketplace for a longer period of time (Aithal, 2016). As company is providing its servicesacross the world so there are a large number of external factors which provides positive ornegative impact on the performance and strategies of firm. For analysing such factors managersof organisation have to conduct a PESTLE analysis. Factors of macro-environmental are given asunder:
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Illustration 1: PESTLE Analysis Source- PESTLE Analysis, 2019.Political factors - These kind of factors directly impacts on the profitability andoperational activities of any firm and related with the governmental rules and regulations. As theorganisation provides services in various countries so the management should follow the rulesand regulations which are formulated by the specific government. For example, As The taxationrates of UK nation are regularly increasing, The present rate on cosmetics products is 20% whichwas 17.5% in last financial year that can adversely effect on profitability of firm. Whereas,individuals of nation more focuses on their personal care which can provide opportunity to thefirm in terms of sustaining in market for a longer period of time.If government of a specificnation will not stable for long time period then managers of firm have to change their policiesaccording to the government which will not beneficial for the long time strategies of firm. Economic factors - These kind of factors includes economic growth, exchange rates,inflation rates etc. The firm is operating its functional activities in various nations so they have toadopt such rates according to the economical condition of a nation. For example- the global traderate of UK nation is 44% which can provide opportunities to the managers of L’Oréal in terms ofexpanding their market share and introducing more products in UK. Whereas, there are variousbig players in cosmetic sector Tesco, Morrisons, Cult beauty etc. whose strategies can reducetheir estimated sales figures in UK market (Brewster, 2017).Social factors - As the firm builds their brand image in the world so the customers baseof organisation is also large in nature. These factors comprises belief, values, taste andpreferences of the customers which can provide positive or negative impact on the strategies of afirm. Individuals of UK nation who believes in quality and always attracted for the latestpersonal care products that can provide profitability to the firm. Whereas, customers in UK
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