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Impact and Influence of the Macro environment on a given organisation and its strategies

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Added on  2020-12-29

Impact and Influence of the Macro environment on a given organisation and its strategies

   Added on 2020-12-29

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BUSINESS STRATEGY
Impact and Influence of the Macro environment on a given organisation and its strategies_1
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31) Analyse the impact and influence of the macro environment on a given organisation and itsstrategies......................................................................................................................................32) Analysis of the competitive environment of the organisation using Porter’s Five ForcesModel..........................................................................................................................................7TASK 2............................................................................................................................................84) Justification and recommendation of the most appropriate growth platform and strategies..95) Strategic management plan with strategies, objectives and tactics........................................9CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
Impact and Influence of the Macro environment on a given organisation and its strategies_2
INTRODUCTIONRegulation of business has been grown from decades with bringing new and innovativechanges to maintain its existence for the longer period of time. In addition to this, role of clearand complete strategic formulation has been regulated, with vision & mission of continuing firmsbusiness for longer period of time (Jocovic and et. al., 2014). For effective strategic formulation,it is necessary for every firm to set their vision & mission along with strategic targets & goals toaccomplish. This report will be conduct on L’Oréal, which is the leading French personal careheadquartered in Clichy and its registered office is in Paris, France. They are specialized to sellhair colour, skin care, sun protection, make up perfume, hair care and men skincare. Apart from this, report will be carry on discussion of SWOT and PESTLE of the businessentity along with analysis of organisation capabilities. Also, report will put emphasizes onanalysing internal capabilities through doing complete analysis of porter's five force model anddifferent strategic management plan with defined strategies, objectives and tactics. TASK 11) Analyse the impact and influence of the macro environment on a given organisation and itsstrategiesMacro environment is a structured condition that exists in an economy as a whole, ratherthan being of particular region or sector. In general, macro environment actually involves trendsin gross domestic product, inflation, employment, monetary & fiscal; policy (Jeston, 2014). Incontext with business environment of France, there are various impacts & influences that macrofactors such as political, economical, legal, technology etc., has put on its own business entities.“L’Oréal” which is a leading provider of skin care products and accessories to their respectivecustomer's, impact of political and economical factors are quiet high and influences is relativelybad. In the current scenario, competition in skin care products has been raised due to increasedcompetition and somewhere, influence of France business reforms & regulation. L'Oréal is an industry that was established in France and is currently best in its domain.This leading skin care entities have its units in 130 different countries, which great brand image& continuous increase in its profits. With the passage of time, these factors are directlyimpacting strategies on higher level. The detailed discussion on macro factors are as follows:
Impact and Influence of the Macro environment on a given organisation and its strategies_3
Political: This factors includes rules and policies of France governance, in which entitieslike L'Oréal is currently working (Scase, 2015). As a part of manufacturing organisation, Frenchbusiness has been impacts by weak political regulations such as interference of politics intobusiness nature, continuous changing of French government along with conflicts & stand againstof authorities. This has led business entities in the France to structure business strategies onfrequent basis. In context with L'Oréal, this has impact its business operation to change theirmarketing strategies with change of new government and being influenced to raise higherbusiness growth. In present time, situation is very much controlled and also impacts of politicalfactors are on positive side. But, if this continuous changing of government will happen, impacton L'Oréal will carry on and this may also lead to negative role of their negative strategies. Economical: This factors includes exchange rates and monetary policies of the country,in which business entities are working. The recession element is considered as mainstream partin the upbringing of cosmetic business like L'Oréal. Continuous fluctuation of Euro currency andslow down of investments has led cosmetic business firms to raise more funds into its businessregulation and led this leading cosmetics firm to rise the pricing of their cosmetics product indifferent regions of France (Goffee, 2016). For instance, in few regions, the price of skinproducts is high and in response to its business strategies, impact will be moderate. Moreover,GDP of the country is the major factor on business entities like L'Oréal. In France, humandevelopment index is high and growth of an economy is now onwards started rising. Theexpected impact of this factor will be positive, but still strategies could effect due to inflationrate. Economical factor can influences operation of their firm to initiate more strategies toenhance business productivity. Social: The social factor would encompass various technical trends in the society. In thepresent time, modern society are more interested in fashion trends, which will be huge businessopportunities for L'Oréal to capture this fashion trends. For this, they can go for product ideawith following current trends through sense of technology and its aspects (Jermias, 2014). Thisfashion changes has led L'Oréal to rise price of their product, because of lack of wide resourcesis a major issue. In response, this will impact business strategies of this leading cosmetic traderto either pay huge money to get resources or it could impact on customer purchasing parity. Technological: Technology role has its own change in every sphere of life. For thecompanies like L'Oréal, the technological attribution like innovation, creativity & trust have
Impact and Influence of the Macro environment on a given organisation and its strategies_4

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