Impact of Macro Environment on L'Oreal Body Shop

Context of Business

Table of Contents
INTRODUCTION...........................................................................................................................3
Task..................................................................................................................................................3
Impact of Macro Environment for Current situation of L'Oreal Body Shop...............................3
Culture and its Impact on the Performance of L'Oreal Body Shop.............................................5
Considerable Factors Before Opening Body Shop......................................................................6
Reasons that cause Failure to L'Oreal in Body Shop...................................................................7
Reflection.....................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business is a practice that is used by the individual or group of people to making their
living better and making money by selling of providing services. It also can be considered as the
activity that help the organization or particular person to make profit from the particular activity.
L'Oreal is one of the oldest cosmetic organization which was established in year 1909 by Eugene
Shhueller. Headquarter of the company is in Clichy, France (Chun, 2016). The operational area
of L'Oreal is World wide. This report is providing the impact of the external environmental
factor on the current situation faced by company in current situation. The organizational culture
of L'Oreal will be analysed to evaluate how it is compatible with the challenges and profit
earning practices. The factors that are considered by the organization before launching body shop
are explained in report. Various factor will be analysed in the report that leads the decision of
organization to acquire the body shop as failure. A brief analysis will be provided in the report in
contexy of current Body shop of L'Oreal.
Task
Impact of Macro Environment for Current situation of L'Oreal Body Shop
The are different factors that are present outside the organization have major impact on
the performance of the organization. These factors are not in control of organization. These
factors are classified in six different parts which are political Factors, economic factors, social
factors, technological factors, environmental factor and Legal Factors. The organizations that are
working in the cosmetic industry mostly got affected by the social, cultural and ethical issues
because it is more related to their business.
Political Factors-
The political factor are associated to the political concepts. The decisions that are taken
by organization are can affect the performance of the company in their business. For current
example Brexit is one of the most current issue in UK (Voigt, Buliga and Michl, 2017). Just
because of these condition people in UK who are in corporate world are in uncertain condition.
This is difficult for them to make current investment in the market place. They are confuse about
the economy. This political decision of government can affect the business of the L'Oreal's Body
Shop alliance as both the companies will find it difficulty to develop their CSR polices for
ethical practices and could blame each other which resulted in breaking of alliance. There are