Impact of Macro Environment on L’Oréal and Body Shop Acquisition

Context Of Business
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Table of Contents
INTRODUCTION ..........................................................................................................................3
TASKS.............................................................................................................................................4
Discuss the impact macro environment had on the current situation faced by L’Oréal
particularly the Social, and Ethical factors.................................................................................4
What is the organizational culture at Body Shop and L’Oreal. In your view are they
compatible and what are the likely benefits or challenges arising out of the compatibility of
culture. ........................................................................................................................................5
Discuss any factors that L’Oreal would have considered before deciding to acquire Body
Shop.............................................................................................................................................6
In your view what are the factors that had effect the L’Oreal acquisition of Body Shop
resulting it the failure..................................................................................................................7
The second part of the project will involve writing a reflection report on your experience in
writing this report........................................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10
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INTRODUCTION
Business is an art as well as science which is the subject matter of practical experience,
judgement and foresight to gain potential outcomes. To remain successful in business, an
individual have to be master in business and related activities for gaining potential outcomes in
positive manner. Respective assignment based on the L'Oréal which is an French Personal care
company headquarter is in Cliché. It is world's largest cosmetic company and developed various
activities in field of hair colour, skin care and many more. Respective report is based on a case
study of L'Oréal which accused in no. of unethical practices which hinders self interest in
achieving desirable objectives. Further it discussed the organisational culture and impact of
macro environment had on their current situation. In addition to various factors that an
organisation considered while before deciding to acquire some other company.
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TASKS
Discuss the impact macro environment had on the current situation faced by L’Oréal particularly
the Social, and Ethical factors.
Macro environment is one of most important condition that existed for the whole
economy at wider level instead for the particular region or sector. In macro environment
includes the GDP, inflation and employment and spending that affect on their business and
various factors associated with it (Crane and et.al ., 2019). In context of L’Oreal they while
acquire the other business known as The body shop that inflicted with kind of malpractices such
as airbrushing advertisements, misleading claims and information, testing of animals and fixing
of prices that directly affect on business works and practices in negative way. In order to there
are some factors that affect on their business plans and procedures to gain optimum kinds of
outcomes to gain competitive advantage that are as follows:
Social factors:
In social factors consist of the factors such as change in taste and preferences of
consumers and other deliverable that directly influence on business works and procedures. In
context of L’Oreal while they associated with the The body shop to enlarge their business
opportunities after conducting the through research and development such as acknowledge the
potential outcomes, that plays very much crucial role (Crane, Matten and Spence, 2019). After
aligning goals and objectives with the Body shop organization affect the self interest in order to
achieve desirable results. In social factors consist of the technical trends in society as modern
world majorly interested towards the fashion trends in the products and services acquired by
respective organization. The consumers who possess the sense of latest tools and technology and
always eager to adopt the tools that are eco friendly in nature in order to remain always
competitive in marketplace. There are some kinds of ethical issues that face by the people of
society that consider as an holy sin to use such sorts of ingredients in order to gain potential
outcomes from them (Nascimento And et.al ., 2019.). All kinds of social and ethical trends plays
very crucial role in context of respective organization in order to remain always competitive in
marketplace.
Ethical considerations:
L’Oréal is one of the World's leading beauty company, a global leader by defining and
advancing the standards of ethical business practices. Respective activities plays very much
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