Business Strategy Assignment Solved - L'Oreal

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P 1 Influence of the macro environment .....................................................................................1
TASK 2 ...........................................................................................................................................2
P 2 Analyse the internal environment .........................................................................................2
TASK 3............................................................................................................................................4
P 3 Porter’s Five Forces model ...................................................................................................4
TASK 4............................................................................................................................................7
P 4 Concepts and models for strategic planning .........................................................................7
CONCLUSION................................................................................................................................9
REFERENCE ................................................................................................................................10

INTRODUCTION
To make strategies are important for the growth of business and its success. It provide
help to accomplish the objectives of corporation which is helpful to run the firm smoothly and
effectively. For an organisation it is essential to make strategies so that goals of can be achieve as
per the requirement. To better understand this concept L'Oreal has selected which is a personal
care company of France. In this report there are following topics are covered such as: influence
of macro environment, analysis of internal environment and capabilities, porter's five forces
model to analyse competitiveness. Apart from this it also discuss about concepts and theories for
strategic planning.
TASK 1
P 1 Influence of the macro environment
Macro environment is associated with the external environment factors which can
influence the business performance and its growth. For the organisation it is necessary to control
this factor so that operational activity does not get hamper. With the help of PESTEL, a company
can analyse external market where the operations of corporation are executed. There are six
factors which are related to it such as: political, economic, social, technological, environmental
and legal factors.
PESTEL analysis is considered best fit subject to analyse the viability of external
environment. It provides wide synergies to analyse the feasibilities for effective and efficient
working in external environment. SWOT and stakeholder Porters’ analysis only provides the
internal aspects of organisation but it do not reliable for external analysis and evaluation process.
Moreover, if organisation is seeking for expanding business at global level, in that case PESTEL
is the only analysis that remains effective to analyse the environment of proposed destination. In
the above case of L’Oreal Company PESTEL analysis opted because organisation wants to
expand its operation at large level.
Political factors: The business operations of an organisation can be influenced through
political factor. It includes rules, regulations and policies which are introduced by the
government. L'Oreal operates its business at various nations so it is important for it to follow the
government regulations. As Europe and Canada have harsher ingredient requirement & out of
1328 cosmetic ingredients that have banned over 500. It corporation wants to survive in these
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