SWOT analysis and PESTEL analysis of an organisaton
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Added on 2020-12-26
SWOT analysis and PESTEL analysis of an organisaton
Added on 2020-12-26
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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.....6CONCLUSION................................................................................................................................7REFERENCES ...............................................................................................................................8.......................................................................................................................................................9
INTRODUCTIONBusiness strategies refer to directions or frame that entrepreneurs or manager undertakeso that they can further achieve their overall goals and objectives. In certain business concerns,managers and entrepreneurs are required to follow a certain code of conduct which will furtherhelp them in enhancing their strategic capabilities so that business strategies can sustain for aquite longer period of time (Brewster, 2017). Business strategies further provide support tobusiness entities for enhancing their productivity in competitive market. In present scenario thisreport has been prepare on L'oreal which is a French personal care company with itsheadquarters in Clichy and registered office in Paris as well. This report focusses on PESTLEand SWOT analysis of the organisation so that organisation's capabilities can further beevaluated. Various strategies and strategic decisions have further been discusses here. In additionto this justification and recommendations regarding growth platforms have been stated. Lastly,this report includes a strategic management plan which is useful for business. TASK 11. PESTLE and SWOT analysis foir organisation for assessing its capabilities.Strategic planning refers to activities or guidelines which are used by managers of abusiness entity so that they can further undertake various activities such as setting or determiningpriorities, strengthening their area of operations along with ensuring that employees as well asstakeholders are performing towards achievement of a common goal. It is basically a trained anddeveloped effort which is helpful in producing fundamental and key decisions that will furtherdirect and guide as to what an organisation is along with laying focus on its upcoming futureperspectives. In present context, L’Oréal is a leading brand that provides skin care and haircareproducts to its customers. The main reason behind L’Oréal being an effective name incompetitive market is their extensive portfolio of hair care and skin care products. Still there is aquite higher competition as customers today are quite conscious about what products they use fortheir skin and hair (Cavusgil and et. al., 2014). Hence for sustaining in local market it is quiteimportant that managers of Loreal frame strategies that are effective for them. Also they need tocarefully assess internal and external market situations which has been stated in form of PESTLEand SWOT analysis as under: 1
SWOT analysisStrengthsWeaknessesL’Oréal is a market leader in haircare andskincare products due to their extensiveportfolio and best quality products. It is a quitelarge scale brand and provide job to around60000 employees all over the world. Onemore important factor is that they providediversified goods and services to theircustomers. One major drawback or weakness of this brandis that it has decentralized organisationalstructure hence due to their subdivisions it isquite impossible that operations get controlledby a single individual. Also they have startedfacing a quite tough competition from otherleading brands. OpportunitiesThreatsIn context of L’Oréal there are a number ofbenefits such as they can tap advantage fromgrowing market (Chang, 2016). Also they owna quite developed market share as they have anumber of patents registered under their name.One major opportunity which can beconsidered by managers of Loreal is adoptingand manufacturing herbal and skin friendlybeauty products which will further lead togrowth and expansion. Threat for L’Oréal is continuously rising asthere is a quite tough competition from otherbrands within cosmetic sector. Also individualsmay skip buying products of Loreal feeling thatthey are not as per their needs. PESTLE analysisL’Oréal is a major leading brand in haircare as well as skincare sector. It manufactures avariety of products that further help in meeting needs of current market trends along with globalfashion trends as well. L’Oréal has its smaller units in around 130 nations. As per externalanalysis there are a number of factors that affect its growth and performance which has furtherbeen stated as under: 2
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