Business Strategy For L'oreal
Added on 2020-10-22
16 Pages4623 Words209 Views
Business Strategy
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11. PESTLE and SWOT analysis for organisation for assessing its capabilities..........................12. Porter's Five Forces Model for examining competitive environment....................................4TASK 2............................................................................................................................................53. Evaluation of different types of strategic directions available to an organization.................54. Strategic management plan for L'oreal by including strategies, objectives and tactics..........8CONCLUSION................................................................................................................................9REFERENCES .............................................................................................................................10.....................................................................................................................................................11
INTRODUCTIONBusiness strategies is a name given to guidelines or frame work that is considered bymanagers and owners of a business concern so as to achieve their organisational goals andobjectives within a specified time frame. Every entrepreneur or manager needs to follow acertain code of conduct so as to develop effective strategies which further provide a competitiveedge in achievement of goals and objectives within a specified time frame. Business strategiesplay a quite significant role in enhancing capabilities of a company which further provides thema sustainable market position (Higgins, Omer and Phillips, 2015). In the present context reporthas been framed based on Loreal which is French brand dealing in personal care and wellnesssector and has its headquarters in Clichy as well as Paris. This report further discusses variouskey elements such as PESTLE and SWOT analysis which discusses organisational capabilities .Also this report mentions Porter's five forces model along with strategic decisions . Lastly, astrategic management plan has been discussed in this report. TASK 11. PESTLE and SWOT analysis for organisation for assessing its capabilities.Strategic planning is an essential framework which comprises of guidelines or activitiesof a business which managers use in order to accomplish various goals and objectives. Alongwith this a number of other business processes and activities are considered such as definingpriorities, strengthening their area of operations as well as ensuring about employees andstakeholders performance which helps them in achieving organisational goals and objectives.Strategic planning is basically a trained and developed effort which helps managers in producingeffective and fundamental key decisions. These guidelines further direct about goals and motivesof a business concern along with focussing on future prospects as well (Shuen, 2018). In presentcontext, Loreal has been considered which is a leading brand that deals in skin care and hair careproducts and services. They further own a quite well developed and extensive portfolio in hairand skin care products which provides a stable position in market. Today competition has risengreatly and hence managers of Loreal will need to focus on effective strategy formulation alongwith market analysis by SWOT and PESTLE analysis which has been discussed as under: 1
SWOT analysisStrengthsWeaknessesLoreal today happens to be a world leadertoday in hair care as well as skin care products.It is mainly because they have a quiteextensive portfolio and provide excellentquality goods and services. Loreal happens tobe a quite large scale operating businessconcern which currently employs around 6000employees from all over the world. Anotherimportant factor is that they provide diversifiedas well as better quality goods and services(Brewster, 2017).Loreal also has certain weaknesses anddrawbacks . Organisational structure of Lorealis quite decentralised and therefore cannot becontrolled by a single individual. Also therehappens to be a quite tough competition fromvarious other leading brands which has made itquite complex for leading brands.OpportunitiesThreatsLoreal today gains a number of benefits whichhelp in enhancing their overall productivityand profitability as well. Benefits oradvantages in context of Loreal includetapping advantage from growing market andalso owning a developed market share as well.This is due to numerous patents that have beenregistered in their brand name. One majoropportunity which can be grasped by Loreal inpresent scenario includes manufacturingherbal as well as skin friendly products andservices which help in growth as well asexpansion. Threats for Loreal have been constantly risingdue to higher and tougher competition fro otherbrands that are operating within cosmeticsector. If Loreal does not innovate its productsand services on a regular basis then customersmay skip buying their products feeling thatproducts are not as per their requirements(Cavusgil and et. al., 2014).PESTLE ANALYSIS2
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