Loreal and Bodyshop Case Study

Loreal and Bodyshop case
study

Table of Contents
INTRODUCTION...........................................................................................................................3
1. Explaining an impact of macro environmental analysis on present situation faced by the
Loreal...........................................................................................................................................3
2. Describing the organisational culture at the Loreal and the Body shop .................................5
3. Explaining the factors that needs to be taken into account by Loreal prior to acquire the
Body shop ...................................................................................................................................5
4. Explaining factors that resulted in the failure of acquisition ..................................................6
5. Reflecting report on personal experience ...............................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Present report is based upon the Loreal and body shop company which are dealing in
natural care products. As these are the two most recommended brand in beauty products and also
they are mostly liked by customer. Loreal was founded by Eugene Schueller in 1930 with
dealing in cosmetic products. As this business is carried by around 86,000 employees operating
the business at global level. In case of the body shop products they are mainly the subsidiary of
the Brazilian company Natura & co. This company is established in 1976 by Anita Roddick and
at present they are located in around 3000 places. The main difference between these two
companies is relating to the quality of the products and also the pricing mode, which stated that
the body shops products are more costly than Loreal. This report will includes the scenario of the
internal and external factors that is faced by Loreal in managing the integrity in market. It also
includes its organisational culture and also the factors through which they had to decide to
acquire body shop company.
1. Explaining an impact of macro environmental analysis on present situation faced by the Loreal
There are various factors that affects an enterprise with passage of the time, such factors
directly influences marketing strategies of an entity. There it is incumbent in considering these
factors in order to achieve growth in the long run without any external interferences.
Political factors- These are the factors that relates to the policies and the rule of the
government within which the firms like Loreal operates its business. As the company functions
across the globe so the it needs to look for the all the government policies in different countries.
In addition to this, import policies of different regions plays a crucial role in attaining success of
Loreal. With an advent of the globalization, political factors reflects a positive role role within
the industry.
Economical factors- It involves current exchange rates of all the states in which
company I running its business operations. Recession element in the economy acted as the
mainstream in an upbringing of cosmetic industry. Along with it such attributes pertains to
economic factors that is the product's price that is seen as varying in different regions of the
world (pestle analysis of Loreal, 2018). For example- In few of the regions, price of the
particular skin products remains to be high and this results in higher profitability for Loreal in
such regions. Moreover, GDP of state counted as main factor in contribution towards the
business of luxury brand like Loreal. High disposable income of the people in an economy