Strategic Management Plan for L'oreal

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 & M1 Impact and influence of the macro environment on a given organisation.................1
TASK 2............................................................................................................................................3
P2 & M2 The internal environment and capabilities of a given organisation............................3
TASK 3............................................................................................................................................6
P3 & M3 Porter's Five Forces Model for examining competitive environment.........................6
TASK 4 ...........................................................................................................................................7
P4 & M4 Strategic management plan for L'oreal by including strategies, objectives and
tactics...........................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business strategy is defined as a set of plan which are formulated by the organisations for
achieving their preset objectives or goals. It also helps the managers of firm in taking appropriate
decisions as per the situations so that pre-determined targets can be achieved in a given time
period. There are several factors exists in the marketplace which influences the business
operations in positive or negative manner for overcoming from these factors, managers can use
PESTLE or SWOT analysis. The chosen organisation for this report is John Lewis limited which
is a retail group chain along with headquarters in UK. This assignment will analyse the abilities
of organisation through using SWOT and influences of external factors on the operations of firm
through using PESTLE analysis. Porter's five forces model and generic strategies for improving
the competitive advantage of firm will also discuss in this report.
TASK 1
P1 & M1 Impact and influence of the macro environment on a given organisation
Organisation was established in 1864 by John Lewis and in present there are 51 stores of
the firm are providing clothing products across the UK. Company have an effective team of
managers who believes in delivering quality product at the marketplace so that growth and
sustainability can be maintained in the marketplace. Competition in clothing sector is rapidly
growing because the giant players like M&S, Tesco, Debanhams are providing quality products
at affordable prices to the customers in UK. Therefore, it can provide difficulty to John Lewis in
attracting customers towards their offerings. For this, management of John Lewis have to
formulate effective plans and strategies so that they can get sustainability in the marketplace. It is
also very important for the managers of John Lewis to make consideration on the external and
internal factors of business environment which can influence the whole profitability or
performance of organisation in positive or negative manner (Newton, 2015). For analysing such
factors managers of firm can conduct PESTLE analysis which will help them in identifying
potential risks that can influences their business operations and profitability. PESTLE analysis of
John Lewis is given as under:
Political factors- This factors are comprises of tax duties, stability of government, trade
policies etc. which can affect the performance of organisation in positive or negative manner. As
John lewis is providing their offerings across the UK therefore, the managers of firm have
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responsibility to follow the norms and patterns which are formed by UK government for the
clothing industries. For e.g. sale tax rate on fashion sector in UK is approx. 20% that is stable
from the previous year so that it can provide influences on the business strategies of organisation.
Whereas, rivals of firm like M&S, Tesco which are determined as the giant players of the fashion
sector are providing quality offerings at affordable prices to the customers so that sales figures of
them can enhanced. Therefore, it is very essential for the Managers of John Lewis to make focus
on the plans and policies of the competitors so that negative influences of their strategies can be
overcome in effective manner.
Economical - It includes economic growth, per capital income, GDP of a particular
country. As John lewis perform its business operations in whole UK. Therefore, management of
firm have duty to make consideration on these elements as per the economic situations of UK
while making strategies. Citizens of UK nation are more focusing on the prices of offerings
because of the recent inflation and John lewis is also offering products at higher prices which
posses negative impact on the sales figures and revenues of firm. Per capital income of UK
nation in current year is 44,761 USD which defines a good economic condition of nation after
leaving European union. As a result of it, customers are more preferring the quality products of
John Lewis which can helpful in future for firm in making a strong customer base in UK market.
Social factors- It consists of beliefs, taste and preferences of customers etc. which can
influences business operations of John Lewis in favourable or adverse manner. Citizens in UK
nation mostly preferred those products which are unique and attractive and easily available at
affordable prices. Therefore, it can provide positive influences on the profitability and revenue of
organisation (Peng, 2017). Main targetted customers of John lewis are youngsters and youth of
20-30 years who mostly prefers the fashionable clothes therefore, after providing them products
as per their needs and wants John lewis can take a good position in the mindset of customers. On
the other hand, demands and needs of customers can change according to the market trends
which can directly influences on the business strategy or profitability of firm in negative manner.
Technological factors – These factors includes advancement of tools and techniques like
availability of internet connection, CCTV surveillance, automation security which can influences
the decisions and strategies of John lewis in positive or negative manner. Current marketplace of
UK is completely based on online networks because citizens in UK nation gave their importance
to their time and money whereas, offline process of buying or selling products consumes more
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