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Business Strategy - L'Oréal (pdf)

   

Added on  2021-01-01

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Business Strategy

Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31 Applying appropriate framework analyses the impact and influence of the macroenvironment.................................................................................................................................3TASK 2............................................................................................................................................6P2: Analysis of internal environment and capabilities of chosen organisation..........................6TASK 3............................................................................................................................................8P3: Evaluation of competitive forces of a given sector...............................................................8TASK 4..........................................................................................................................................10P4 Strategic management plan for L'Oréal by including strategies, objectives and tactics......10CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14

INTRODUCTIONBusiness strategy includes various plans and strategies which are formulated by themanagement so that preset goals or objectives of firm will be achieved within allotted timeperiod. In addition to this, It is a long term plan which covers a period of about 5 to 7 years. It isvery important for determining the suitable path for the future period. These strategies alsoassists the manager of organisation in analysing the position of firm in marketplace. Presentreport is based on L'Oréal which is a multinational company and providing services in cosmeticindustry. The firm was founded in 1909 by Eugene Schueller. This assignment will discuss aboutthe analysis of macro and micro environmental factors along with determination of competitiveforces of marketplace. In addition to this, application of a range of theories or models will alsocovered in this report.TASK 1P1 Applying appropriate framework analyses the impact and influence of the macro environmentBusiness strategies are defined as the high level plan of an organisation so that particularobjectives will easily achieved in proper manner. In addition to this, it is a formulation orimplementation of plans and policies so that preset targets or goals will be achieved in an allottedtime period. With the help of these, Managers of L'Oréal can easily analyse their position inmarket and determine the appropriate way for getting growth and success of firm. Mission – The mission of L'Oréal is to provide better quality products to the customersalong with affordable price due to which company can easily take sustainability and growth inthe market.Vision – Vision of L'Oréal is to find the suitable path through which satisfaction level ofcustomer can be enhanced.Objectives- Main objective of the company is to grab the high market share along withenhancing the trust and loyalty of customers towards offerings of organisation. The companyhave formulated long term goals through making cooperative activities with the localmanufacturers so that competitive advantage of the company can be maintained in themarketplace (Schrader,2012).

Importance of business strategies – These strategies helps the managers in clearlyunderstanding the firm also helps them in which element is mostly required for increasing theoverall performance of the organisation. L'Oréal is providing its products and services in the worldwide therefore there arevarious external factors that can influences the performance or long term strategies of the firm inpositive or negative manner. Among various analytical tools, Management of L'Oréal canconduct PESTLE analysis through which they will easily evaluate external factors such aspolitical, economical, technological etc. and their influence on the business operations orstrategies of L'Oréal. Political factors – Factors that can influenced and related with the policies ofgovernment of a specific nation are defined as the political factors. For example- the tax rate oncosmetic products in UK are increasing on regular basis, current tax duties on cosmetic productsare 20% that was 17.5% in last year of 2018 which can influences negatively on the productivityor profitability of organisation. On the other hand, citizens of nation are more aware about thebeauty and personal care products that can gave an ultimate opportunity to the organisation interms of getting high sustainability and growth in the marketplace (Peng, 2017).Economic- These factors are comprises of economic growth, inflation rate, global traderates etc. which can influence the buying behaviour of customers and profitability of firm inadversely or favourably manner. As the L'Oréal is providing its product or services in variousnations therefore they have to perform their business functions as per the economic condition ofa specific country. For instance, Global trade rate in UK is 44% that can prove as an opportunityfor the management of L'Oréal through which they will be able in expanding their market shareand launching new products in UK.Social – As L'Oréal firm has build its brand image in whole world therefore customerbase of organisation is relatively high in the marketplace. Every customer wants value of theirmoney for which organisation can enhance the trust and loyalty of them through providing themquality products at lower prices. With the help of it, they will easily maintained their brandimage in marketplace.Technological- This factor gave a high influences on the cosmetic sector. There arevarious websites on internet that gave price comparison and lower pricing facilities to the

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