Case Study on Loreal

Case Study on Loreal

Table of Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Impact of macro environment factors on business.............................................................................3
Organisation culture..........................................................................................................................5
Factors overlook before acquisition...................................................................................................7
Factors negatively impact acquisition................................................................................................8
Reflection..........................................................................................................................................8
CONCLUSION.....................................................................................................................................9
REFERENCES....................................................................................................................................10

INTRODUCTION
Business environment is defined as the effects of external factors on the operations of
the corporate houses. This report is based on the case study of L’Oreal Company. Company
was established in the year 1909 by Eugene Sheller. Headquarter of the L’Oreal Company is
established in Clichy, France. Company is associated with cosmetics sector and serve its
business operations across the globe. Henceforth, this report emphasis on effect of macro
environment factors on the company’s operations. Organisation culture of L’Oreal and Body
Shop will also be summarised in this report. What are the factors L’Oreal Company must
considered before acquiring Body Shop Company will also analyse in this report. Future
implication of acquisition will also summarise in this report. At the end reflection will also be
address in this report.
MAIN BODY
Impact of macro environment factors on business
Macro environment is considered as the external factors associated with business
environment influence business operations of company. PESTEL Analysis is a tool utilises to
assess impact macro environment put on business organisation.
PESTEL Analysis
PESTEL Analysis is reflecting different factors involve in macro environment. This
analytical tool comprises with factors such as political, economical, social, technological,
environmental and legal factors associated with the macro environment.
Political Factor: Political factor involve all policies frame by government in respect to the
corporate sector. Management of L’Oreal Company frame all business strategies related to
operations and growth based on the policies of government (Baciu and et.al., 2017). Political
stability is also a huge aspects associated with the political factor in macro environment. In
case the nation has stable government it will drive government to channelize long term
policies and strategies for the growth of the corporate sector. Corporate sector play a crucial
role in the economic growth of the country and all government across the globe support the
corporate sector. L’Oreal Company consists up with global business operations that also
involve political situation not just at regional level but also at the global level.