(PDF) Business Strategy Assignment : L'Oréal
Added on 2021-01-02
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BUSINESS STRATEGY
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31) Applying appropriate frameworks analyse the impact and influence of the macroenvironment and its strategies.....................................................................................................32) Analyse the internal environment and capabilities of a given organisation using appropriateframeworks..................................................................................................................................5TASK 2............................................................................................................................................73) Evaluation of the different types of strategic directions available to the given organisation.74) Justification and recommendation of the most appropriate growth platform & strategies.....95) Produce a strategic management plan with strategies, objectives and tactics......................10CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
INTRODUCTIONBusiness strategy is an important aspects for every firm, because strategic action willprovide support to generate new customer's or enhance product development to accomplishdefined goals or objectives. In the current scenario, product development is necessary, because itwill not possible to retain customer with old goods (Scholes, 2015). For this, business strategiesare required to retain customer in different situation such as product development, less profitbase along with increased services suitability and profit generation. This report will be carry onL'Oréal, which is one of leading cosmetics and skin care giant headquartered in Chicly, France.They are actually specialized in skin care, cosmetics, hair care etc., product to their customer's. Apart from this, report will be carried on analysis of Pestle and Swot analysis to knowvarious forceful forces, assessment of Porter five force model's to know competitive advantagealong with their critical reaction. Along with this, report will cover different types of strategicdirection and its evaluation, justification and recommendation of growth platform and strategies. TASK 11) Applying appropriate frameworks analyse the impact and influence of the macro environmentand its strategiesIn context with L'Oréal, there will be discussion of both Pestle and Swot, which is usefulto know the internal capabilities & business situation for L'Oréal. As, Pestle is considered as partof macro-environments, which will helpful to find out forces such as political, economical,social, technological etc.(Scholes, 2015). Along with this Swot will explain internal capabilitiesor opportunities for business firm to make changes accordingly with productive matter and profitgeneration. In context with L'Oréal, the clear analysis over Pestle is as follows: Political: These factors involves various rules & policies of France government, in whichentities like L'Oréal is currently engaged. French business entities has impacted by weak politicalpower which includes interference of political consideration into business, continual changing ofFrance government with conflicts & stand against of authorities. These factors has led hugeimpact over the L'Oréal in decrement in their profits or revenue. This is of impact that, businessentities in France needs to formulate business strategies on the frequent basis. If the changing ingovernment will continue for longer, it would be difficult for L'Oréal to operate its business forlonger period of time.
Economical: These factors involves flexible exchange rates and long monetary policiesof the country, in which business entities are engaged. Recession is the major part of economicalforces, by which business would get the automatically effected for cosmetic brand as like L'OréalAlso, currency fluctuation and brought of the investment is one of the negative impact of changeof French government, which has led business entity to stay away from investment regulations. Ithas been necessary to control these forces to get business advantage for L'Oréal (Amran, 2016).Continuous flux of Euro in compared with Dollar is critical issue, as it has led business entity toimport higher from other country, includes resources. Social: These factors are completely based on following trends running into culture andenvironment. In cosmetic industry, generally women are higher followers of trends in compare tomen. Hence, thus segment is growing segment to run business for longer period of time. Actually, business entities are required to notices these trends in order to get customer attention at desiredpoint of time. In context with L'Oréal, social trends such as what people thinks over products,what they are expecting to use which cosmetics etc. It is necessary to understand changes inthese trends. Technological: In business firm, technology has its own presence along with its benefitsfor business organisation. Where people are following growing trends, technology is necessaryto make all these trends in real context along with technical innovation to make product moreunique and diverse to use to retain customer interest (Akter and et. al., 2016). As, this actuallyinvolves higher cost to assist trends. Hence, complete control over trends is required to geteffective products, If it got failed impact will be severe to assist or solve. SWOT analysis:Strength WeaknessThe major power of L'Oréal is its ability to doresearch & development to find out new scopefor product. Also, safety & quality regulationare their major presence into the market alongwith customer loyalty. L'Oréal have pure trustin their customer to retain with them alongwith quality products to them. Increasing rate of saturation is the majorweakness for L'Oréal. There command skincare products has led skin care items tostruggle to gain effectiveness into the market.Continuous shrink of profit margin is alsocause of investing huge in R&D activities toenhance higher level of products.
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