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Strategic planning in an organisation

   

Added on  2020-10-22

15 Pages4791 Words374 Views
L’ORÉAL STRATEGYREPORT
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TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................3LO 1.................................................................................................................................................3Analysis of macro environment..............................................................................................3LO 2.................................................................................................................................................6Internal environment capabilities...........................................................................................6LO 3.................................................................................................................................................8Porter’s Five Forces model evaluating competitive forces for an organisation.....................8LO 4.................................................................................................................................................9Theories, concepts and models of strategic planning.............................................................9CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14
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INTRODUCTIONStrategic report is a part of annual financial report with a purpose to inform all themembers and employees of the company, which will help them in assessing the way directorshave performed their duties. This assignment will lay emphasis on Strategic report of L’Orealorganization. L’Oreal is a personal care French company headquartered in Clichy and wasfounded on 30 July 1909 (Ketata, Sofka and Grimpe, 2015). They have their registered office inParis. It is one of the largest cosmetics and beauty products company present globally. Theymake products for hair, skin care, make-up, sun protection, perfume etc. They have more than90,000 employees all over the world. This assignment will lay emphasis on analysis of macroenvironment of the organization in order to inform and determine strategic managementdecisions, it will also analyse internal environment to access all the strength and weakness ofL’Oreal organization's internal capabilities, structure and skill set. This assignment will alsoexplain appropriate strategies in order to improve market position and competitive market basedon the outcomes and lastly strategic management plan that has strategic priorities and objectivesare explained.MAIN BODYLO 1Analysis of macro environmentMission, vision and objectives of L’OrealMission: Mission Statement of L’Oreal is beauty of All. To offer all the people worldwide bestquality cosmetics which can safely satisfy all the desire and beauty needs of their diversecustomers.Vision: To integrate principles of sustainable development in their business model in order tobuild a sustainable growth united and responsive.Objectives: Objective of L’Oreal is to make it a model company that is extremely good in termsof production, sustainable innovation, consumption.Strategy helps the organization's stakeholders in knowing where they want there businessto be and to provide immediate targets and goals to their employees so that they can achieve setobjectives and goals of the company. There are various types of strategic planning techniques
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that can be used to develop strategy, planning for its execution. These strategies give a directionto the company in achievement of its goals, objectives.PESTLE Analysis is used for identifying all the external forces that affects anorganization's macro environment. In this simple analysis of organization's political, economical,social, technological, environmental and legal factors. L’Oreal is one of the major leadingcosmetics brand present globally. There are many factors that affect the companies' growth,influence companies marketing strategies and various other things (Salim, Ab Rahman andWahab, 2018). Here, macro environment analysis of L’Oreal will be done with the help ofPESTLE Analysis.Political Factors: In this all the rules, regulations and policies made by government forcompanies like L’Oreal have been working are included. As it is one of the major Cosmeticsmanufacturing company of pairs, So, majorly all the policies made by government of Franceaffect the company in many ways. Other that this all the import policies of various regions alsoaffects the success of L’Oreal. Globalization has helped companies like L’Oreal to gain thepolitical advantage in different countries.Economic Factors:In this exchange rates of different countries where L’Oreal has beenoperating is included. Economic factors such as prices of the products also plays a mostimportant role in influencing the business of L’Oreal as price of all the products of L’Orealvaries from country to country. GDP of a country also influences the business of L’Oreal as wellas sales of their products in those countries. Moreover, it can be said that these cosmetics andbeauty industry is completely immune to the economic downturn faced by many companies invarious countries. Today many middle class people are also buying L’Oreal beauty productswhich has helped them in increasing there sales as most of the middle class people prefer to buyits products which has continuously increased their sales and has affected their business in apositive way as a whole.Social Factors:In this factor mostly the ongoing trend in the society is focused. Today most ofthe people prefer to use trendy fashionable cosmetics products. L’Oreal is one of the mostfamous cosmetics brand in young generation. But today most of the customers today arebecoming conscious about their skin and effect of such beauty products on their skin. So, most ofthem sees product formulation and if they find any ingredient which might be harmful for theirskin then they stop using all the products of that company which is affecting the business of
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