logo

L'Oréal Business Strategy Assignment

   

Added on  2020-10-22

13 Pages4492 Words492 Views
Business Strategy

Table of ContentsTASK 1............................................................................................................................................3P1 Applying appropriate framework analyses the impact and influence of the macroenvironment.................................................................................................................................3P.2 The analysis of comparative environment of organisation by using Porter's five forcemodel...........................................................................................................................................6TASK 2 ...........................................................................................................................................83. Evaluation of different types of strategic directions available to an organization.................84. Strategic management plan for L'Oréal by including strategies, objectives and tactics.........9CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12

INTRODUCTIONBusiness strategy is defined as a set of opinions or ideas that helps entrepreneurs inachieving preset objectives or targets. In addition to this, it is a plan which is used by themanagers for gaining competitive advantage in the marketplace. Furthermore, it is an effectivetool which is used by the managers of organisations in formulating or implementing the plans sothat major goals or objectives can be achieved in an effective manner. Present assignment isbased on L'Oréal which provides personal care product across the world and based in France.This assignment will discuss about the impact of micro and macro-environment on the strategiesof a firm. Porter's five forces model and capabilities of firm will also covers in this report. In last,report will talk about strategies and plans which are beneficial for the firm in defeatingcompetitors in the market.TASK 1P1 Applying appropriate framework analyses the impact and influence of the macro environmentOrganisation was established in 1909 by the young French chemist Paul Louis Sceuellarbut in current scenario, L'Oréal has captured the whole market and also gain #1 position in themarketplace. The company have an effective management through which they have created ahuge customer base in the world. Main basis behind their good market share is that, theyprovides an effective variety of personal and skin care products to their customers through whicha large pool of customers are attracted towards the offerings. In this modern era, the competitionis enhancing day by day because customer are health conscious and they wants quality productsfrom the manufacturers (Aithal, 2016). Therefore, players in cosmetic industries such asL'Oréal, cult beauty, Tesco are regularly providing good products to the customers so that a goodposition can be gained in marketplace. For this, Managers of L'Oréal have to make effectiveplans or strategies so that position of firm will be maintained in the marketplace. Hence, forsustaining in the marketplace managers of L'Oréal have to consider external or internalenvironmental factors which can influence the performance or business operations in positive ornegative manner. For analysing these factors managers of firm have to conduct PESTLE orSWOT analysis which is given as under:Political factors - These factors includes tax rates, stability of government, trade policiesetc. which can impact positively or negatively on the performance of any organisation. In the

context of L'Oréal, the firm provides products and services across the world so their managershave responsibility to adhere the rules and legislations which are formulated by specificgovernmental authorities of a nation. For instance current rate on the personal and beauty careproducts is 20% which is very higher then the last year that was 17.5% which can negativelyimpact on the growth and success of organisation. Apart from that, individuals of UK nation aremore conscious about their personal and health care which can provide favourable results to thefirm in terms of gaining sustainability in the marketplace. As government of UK nation is instable condition so that, managers of L'Oréal have no need to change their strategies on theregular basis which can provide beneficial results for their long time strategies.Economic factors - These factors comprises of economic growth of nation, GDP, Percapital income etc. As the firm is doing operational activities in various countries so that theirmanagement have to consider such elements as per the economic condition of nation. Forexample- global trade rate in UK is 44% which can provide profitable outcomes for the companythrough which the company can expand their customers base and market-share in UK. On theother hand, Big players of Cosmetic sector such as Tesco, cult beauty etc. who can adverselyinfluence the strategies and estimations of the L'Oréal with their plans and policies(Chang,2016).Social factors- These factor includes beliefs, values, taste, market trends etc. that caninfluence the strategies of business organisation in positive or negative manner. As organisationhas gained #1 position in personal and beauty care product in the world so the customer base offirm is very huge in nature. UK is a well developed nation and its citizens also believes in qualitywho are always ready for tasting new and fresh beauty care products which will be profitablesign for the L'Oréal in future. On the other hand, customers are more emphasise on their healthand beauty so the managers of L'Oréal should consider these elements which can negativelyinfluence on their sustainability and present customer base in marketplace.Technological factor - It comprises of latest tools, techniques which can adversely orfavourably influences on the profitability of L'Oréal. As organisation have created their goodbrand image across the world so they have to implement new tools and technology in theworkplace so that firm can better sustained in the marketplace. Apart from that, if managementof L'Oréal will display false advertisement in the marketplace then it can adversely impact ontheir customer base. Hence, it can be said that the implementation of new technologies in

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Business Strategy - L'Oréal (pdf)
|14
|4658
|254

Assignment on Business Strategy : L'Oréal
|19
|4324
|19

Business Strategy INTRODUCTION
|18
|5586
|294

Strategic Management Plan for L'oreal
|12
|4297
|94

LO1.Analyse the impact and influence which the macro environment
|19
|5748
|443

Business Strategy: Analysis of L'Oréal and Porters Five Forces Model
|17
|5077
|91