Business Strategy Assignment - L'Oreal company

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Added on 2020-12-09

Business Strategy Assignment - L'Oreal company

Added on 2020-12-09

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BUSINESS STRATEGY

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Analysis of impact and influence of macro environment on organisation and its strategies......1Analysis of internal environment and capabilities of organisation.............................................4Applying Porter’s Five Forces model evaluate the competitive forces of a given market sectorfor an organisation.......................................................................................................................6TASK 2............................................................................................................................................8Evaluation of the different types of strategic directions available to the organisation...............8Justification and recommendation of the most appropriate growth platform and strategies....11Strategic management plan.......................................................................................................12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................14

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INTRODUCTIONBusiness Strategy is the set of different strategies to view and devise various importantoutline for any business or organization. Business environment generally opt for three basicstrategies to develop its competitive framework, General strategy, Corporate Strategy andCompetitive strategy (Weng and Liu, 2018). The study will undertake L'Oreal Paris to reflectand explain each and every mentioned task of given report. It is a French company established in1909 with approximately 90,000 employees till now. The report will cover basic description to macro environment and its impact on selectedorganization's strategies. It will describe the internal capabilities of selected organization usingappropriate frameworks and theories. The report will analyze different external factors related tobusiness environment with the help of PESTLE model. The study will tend to devise a strategicplan for selected organization by the application of different theories and models. Along with it,the report will evaluate competitive forces of organization by the application of Porter's FiveForce model.TASK 1Analysis of impact and influence of macro environment on organisation and its strategies.“Macro environment” for any business is generally refers to the external environment andvarious factors related to it, that affect and impact the growth and development of anorganisation or company (Uribe and et.al. 2018). In terms of L' Oreal, there are large number offactors of macro environment that may affect its business environment and strategies. The impact of macro environment to any business or company can be assessed byapplying PESTLE analysis. This analysis inhibits certain factors that directly influence theregular functioning of a company. These factors are generally uncontrollable and for this, thecompany or organization itself are required to strengthen its internal structure. Political factorsThese factors are generally the outcomes of any governmental reforms made for businessenvironment and alteration of governmental policies. L'Oreal Paris is affected by various tradeagreements and policies of country (Mukherjee, 2018). The company is greatly affected by thecountry's executives' and legislative reforms that tends to create a hurdle in the normalfunctioning of company. There is a requirement of political stability for to hold success of levelof L'Oreal and other businesses. 1

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Economic factorsThese factors are linked with the economic condition and status of country that directly affect itsbusinesses and organizations' success. This factors cannot be controlled and are one of the mostinfluential factor that affect business policies to great extent (Uribe and et.al. 2018). For L'OrealParis economic factors like economic condition of country, Inflation rate and elements likeunemployment greatly affect its strategic-planning. L'Oreal are bound to pay attention towardsfinancial status of customers while setting costs for its products. Apart from this, in concern withunemployment rate L'Oreal may undergo for different employment vacancies and post to makethe condition stabilize.Social FactorsSocial factors are related to various societal elements that affect product development strategiesand innovation within business environment. For L'Oreal social factors plays a vital role inplanning its organizational strategies (Channon and Jalland, 2016). For developing any newconcept or products, it need to analyse the increasing demand of women specifically as sitmanufacture extensive range of cosmetics, skin and hair care products. Along with this, it also2Illustration 1: PESTEL Analysis (Source: Scanning the Environment: PESTEL Analysis, 2016)

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