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Business Strategy Assignment - L’Oréal company

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Added on  2020-11-12

Business Strategy Assignment - L’Oréal company

   Added on 2020-11-12

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Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1The Analysis of External and Internal Factors Which Directly or Indirectly Affect theOrganisation in Their Growth and Success.................................................................................1Competitive Analysis of L’Oréal by Using Porter’s Five Forces Model....................................5TASK 2............................................................................................................................................7Evaluation of The Different Types of Strategic Directions........................................................7Justify and Recommend Growth Platform and Strategies..........................................................9Produce A Strategic Management Plan.....................................................................................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
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INTRODUCTIONBusiness strategy is a set of decisions or course of actions which are taken byentrepreneurs/businessmen for achieving business objectives and goals. It is the plan whichmanagement of company implement in the business to direct all the activities and tasks in onedirection towards achievement of organisational goal. L’Oréal is a French company, producingand selling personal care products with registered office in Paris. It is the world's largestcompany providing hair colour, make-up, skin protection products, perfumes etc. This reportwill cover the analysis of external and internal factors which affect the organisation. Also, itexplains the growth strategies and directions which company follows with a effective strategicmanagement plan.TASK 1The Analysis of External And Internal Factors Which Directly Or Indirectly Affect TheOrganisation In Their Growth And SuccessThere are basically two factors through which analysis can be done for the organisationthat is the Internal factors and external factors which affect the organisation directly andindirectly (Nguyen, 2015.).§Here is the study of internal factors which can done through SWOT ANALYSIS which showsthe strengths, opportunities, threats, and weaknesses of the company. L’Oréal’s SWOT analysisare as follows-STRENGTHStrength of the L’Oréal is their continuous and regular invention and research towardsthe beauty products make satisfy the customers regarding their beauty care products.L’Oréal expanded its business globally with 60,000 employees.L’Oréal just not only deal in beauty care products like, perfumes, hair care, hair colour,sun protection, skin care products etc. but they also deal in some dermatological productsalso and it is patent holder I US of nanotechnology.Despite the competition in the industry L’Oréal is growing leader of providing cosmeticand body care products to satisfy the customers’ needs and requirements.1
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Advertising makes customers attracted towards the product of L’Oréal and also adaptsthe culture of target audience. L’Oréal has spread in 130 countries and havingmanufacturing plants in around 40 nations.WEAKNESSESL’Oréal facing tough competition with other brands of skin and haircare products. Theyare followings strategy of decentralisation as company is subdivided into differentregions through which L’Oréal faces difficulty in controlling the units. They have aheavy expenditure on Rea search and development to make customers attracted towardsthem like they are producing the organic and natural products as per customers demandas people wants to avoid usage of heavy chemicals.THREATSCompetition is rising day by day which may be severe threat to L’Oréal, customers tastesare quite changing, and according to their taste and preference they will buy the product,so thus rapid change in taste make very difficult for business to make changes in theirproduction too as quick changes will lead to wastage of many resources.OPPORTUNITIESL’Oréal has many patents which they have registered and because of this advantage theycapture a larger share of the market. Company have a very great opportunity for expanding the industry by investing in theproduction of body and personal care products. Customer always looks for innovativeproduct for their body. More organic products can be produced by firm as demand fororganic product is much higher than customers and people always prefer to use naturalproducts instead of using chemicals on their body and skin. Hence, there is great opportunity to satisfy the demand of customers by producing theorganic products which have greater success in the market.Analysis of External factors which can affect the L’Oréal company is PESTLE analysis.Pestle is basically the analysis of various factors including political, environmental, legal,technological, economic, social, etc.Political factors - Political factors include the norms, rules and regulations ofgovernment under which the company works. L’Oréal is a Paris based company that isits manufacturing unit is in Paris than the policies of France government are applicable2
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