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Business Strategy for L’Oréal

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Added on  2020-10-23

Business Strategy for L’Oréal

   Added on 2020-10-23

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BUSINESS STRATEGY
Business Strategy for L’Oréal_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3Outline influence and impact of macro environment with the help of Pestle Analysis..............3Outline influence and impact of micro environment with the help of Swot Analysis................7Analysis of competitive environment with the help of Porter Five forces..................................9TASK 2..........................................................................................................................................11Different strategic direction available for L’Oréal....................................................................11Justification and recommendation of different growth platform and strategies........................13Strategic management plan with strategies, objectives and tactics...........................................15CONCLUSION..............................................................................................................................17REFERENCES..............................................................................................................................18
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INTRODUCTION Business strategy is a core part of organisation as it supports specific plan to attainbusiness objectives. Business Strategies helps firm to achieve its goal and objective byimplementing various actions, plans and tactics. L’Oréal is one of the leading cosmeticscompanies which deals in wide range of personal care products. This report highlights variousbusiness strategies used by company. PESTLE & SWOT analysis is used to show effect ofmacro & micro factors on business. Porter's five forces model is defined to analyse industryenvironment. Further, report analysed different strategic direction like, diversification, productdevelopment, Market Penetration, etc. and will outline strategic management plan whichcomprise of Mission, Vision, Goals, Objectives & Tactics of the Company.TASK 1Outline influence and impact of macro environment with the help of Pestle AnalysisL'Oréal is a multinational cosmetic & beauty brand, which includes various perfumerange, pharmaceutical, hair & skin products in its portfolio. To survive in the competitivemarket, company needs to analyse all the factors that affecting its business (Anderson, 2019).PESTLE analysis is used to analyse all the environmental factors that has impact on company’sperformance. For analysing the influence of macro factors on business, manager of L'Orealconduct PESTLE analysis which includes political, economic, social, environmental, legal andtechnological factors. Impact of these factors on business are mentioned below:
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Figure 1: Pestle Analysis(Source: Pestle Analysis, 2015)Political FactorsPolitical factors include Rules, Regulations & Policies (taxation policy) imposed bygovernment.As L'Oréal manufactures all its product in Paris so, the company has to follow all thepolicies & regulation imposed by government of France.Product safety is a most important concern for L'Oréal because its products are designedfor skin so, the company has to follow all the guidelines of Personal Care Product SafetyAct.Changes in Taxation Policy leads to change in the cost of the products of the companywhich directly affect company’s profitability, if high rate of taxes is imposed by thegovernment than price of product goes up and that can reduce the sales volume andprofitability of the company.Economic Factors
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