Macro Environmental Factors Influencing Operational Working at L'Oréal Group

Verified

Added on  2023/06/16

|10
|2943
|292
AI Summary
This report essay evaluates the macro environmental factors influencing operational working at L'Oréal Group, the world's largest cosmetic company. It discusses the challenges faced by the company, its response to changes in consumer behavior, and potential growth opportunities.

Contribute Materials

Your contribution can guide someone’s learning journey. Share your documents today.
Document Page
SOE11112 Creating
Business Excellence
and Marketing

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
Table of Contents
Introduction.....................................................................................................................................3
Main Body.......................................................................................................................................3
Introduction to brand: L'Oréal............................................................................................3
Quality is Everyone's concern; Business model of L'Oréal...........................................3
Trends shaping the beauty industry; L'Oréal Group.....................................................4
L'Oréal Group responding to such changes..................................................................5
Potential challenges and future growth opportunities; L'Oréal.....................................7
Conclusion......................................................................................................................................8
References.....................................................................................................................................9
Document Page
Introduction
The macro environment factors of a business firm are an inclusion of external
forces such as demographic, economic, social, cultural, technological and political. A
business manager of a corporate firm have less or no control over such factors (Peralta
and Soltero, 2020). For the given report essay key considerations to operational
working at L'Oréal S.A. is being taken into consideration. Given firm works in consumer
good industry and is also regarded as world's largest cosmetic company which has its
headquarters in Clinchy, France (Kaswengi and et. al., 2020).
Presented essay will evaluate on macro factors influencing on operational
working of the business firm. Furthermore, considerable responses of respective
operational firm will be recorded when dealing with such factors. In addition to this,
effective marketing strategy will be formulated in respect to direct efforts produced in an
operational firm to counter possible issues and challenges to be faced in the
organisational firm (Pierre and et. al., 2018).
Main Body
Introduction to brand: L'Oréal
L'Oréal is a French personal care company that is being headquartered in
Clinchy, Haults-de-Seine along with a registered office in Paris. The provided company
is one of the world largest companies that has specialisation in cosmetics products for
which skincare, make-up, hair care etc. are being taken into consideration. For the
provided essay key issues and challenges faced by the company while operating in
contemporary market will be taken into consideration.
Quality is Everyone's concern; Business model of L'Oréal
According to information given in L'Oréal Group, (2021), ranging skin care
products of given company dedicates on qualitative aspects of their mode to delivery to
customers. Effective emphasis is being set by managers of respective company in
terms of attracting customers by offering good quality of skin care products.
Coordinators of company strives on their quality by enabling 4 steps for which safety of
company products can be ensured by their customers (Perry, 2020). First characteristic
states about ingredient which is an inclusion of quality origins and hazard potential.
Document Page
Followed up with next characteristic i.e. products conditions of use analysis. In this clear
understandings of how to use a respective product is being illustrated (Sng, Au and
Pang, 2019). For instance, Shampoo product for the company will be mentioned for its
application on head, therefore on a limited surface, and it is rinsed off, so it does not
remain on the body. Next characteristic i.e. products' tolerance verification. Under this
element company performs studies and researches that enables company to confirm
that the product will be well tolerated. Therefore, visa for marketing can be granted by
company through toxicologist. Lastly, under products' post-marketing surveillance
monitoring of risk hazards are being performed. Such practises keep track on consumer
feedback and facilitates post sales services to customers of company (For Our
Products; Ingredients for excellence, 2021).
Trends shaping the beauty industry; L'Oréal Group
Macro environmental changes are being observed most frequently when fashion
or skin care industry is being taken into consideration. Such changes can be related to
their respective cause due to frequent evolution that are experienced over period of
time. In context to L'Oréal Group, there are number of changes that are being
observed in terms of consumer behaviour. Such changes reflect towards their desire for
smart skin care tools, use of AI technology and related services that provides with good
comfort and royalty to an individual service taker (Pemberton and Takhar, 2021). These
changes directly or indirectly effects on productivity of the business firm and delivers its
adverse impact over lowering the brand image of company. Managers of the given
company takes considerations of such changes and regards them against effective
measures for which market opportunities can be trapped. In addition to this, market
competition can also be eliminated in respect to reacting effectively to such changes.
These changes enable managers of the company to define better operational working
and delivers better productivity of the business firm (Destarac, 2018).
Macro environment of L'Oréal Group; Changes in consumer behaviour
As presented by Daniel Thomas, (2019), often changes are occurred while
operating operations in L'Oréal Group. Managers of the respective firm are explored to
wide range of opportunity with associated threat of losing customer base as when not
adopted to such changes. These changes got boost by current pandemic times i.e.

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
COVID-19. Under its evaluation it can be said that individuals got more preservative in
terms of their choice of products which they apply to their body (Shapiro and Hanouna,
2019). These changes sometimes could be hard to be tracked by an individual manager
of a business firm. However, proper attention and investment for such changes should
be made by managers of the respective firm to develop better standards of working in
the corporate firm. Under such times a threat to physical as well as mental health was
being arose. In response to such changes and meeting most wanted requirements for
customers of company in such industries (Five tech trends shaping the beauty industry,
2019).
Macro environment of L'Oréal Group; Outbound logistics and external operations
Managers at chosen company track such changes and evaluate them as their
foremost priority over making strategic plans for delivering products and services as
tracked changes in their macro environment. These changes are inclusive of beauty
product development in which personalisation gets more sophisticated, changes in
manufacturing and distribution for which going waterless beauty as the next big eco-
trend (Casoli and Ramkumar, 2020). Lastly, some of the frequent changes are being
observed in customer experience under which significant place to approaches to Omni
channel for beauty take hold is being taken into consideration. These changes might
provide a good opportunity for a business company in terms of gaining competitive
advantages in its operational marketplace. For the process being various alterations to
strategic plans of a business organisation can be made that direct operational working
at the corporate firm to grab such opportunities and deliver effective productivity of the
organisational firm (Jelassi and Martínez-López, 2020).
L'Oréal Group responding to such changes
Effective responses to macro environmental changes are necessary when
delivering quality of services to their customers. Managers of a given company develops
clear understandings of the business market and enables planning process of the
operational firm to deliver appropriate efforts in respect to counter with such business
changes.
According to Lucy Whitehouse, (2018), various studies depicts that consumer in
various business markets are shifting their demand in respect to sustainable product
Document Page
development with quality services. These macro environmental changes are been
answered well when developing critics of such changes. This was an inclusion of opting
to technical friendly approaches for which better consumer relation of respective
company was being focused (Charter, 2018). In relation to chosen company i.e.,
L'Oréal Group, managers of provided firm have taken various initiatives in accordance
with consumer relation development and moulding operations of business firm in
respect to variable shifts in market trends. L'Oréal developed SPOT i.e., Sustainable
Product Optimisation Tool. It refers to an innovative eco-friendly tool that assesses the
social and environmental footprints for all new products throughout its life cycle. For the
given tool improving sustainability of products for their respective stages of development
in relevance to their stage when products are being conceived until end of their life
(Hernandez-Pozas and et. al., 2021). In addition to this, respective tools derive effective
acknowledgement to their customers. For the reason being it is being believed that
consumer lacks the right information to gauge the degree to which product is or not
sustainable. This tool will help them to deliver right information and will proceed with
effective transparency in terms of accountability of respective business firm (L'Oréal:
How the company is engaging its consumer base, 2018).
Being said that there are significant changes which are being observed in
external business environment of the organisational firm. Strong charge in response to
these changes are being taken in regards to operational working at L'Oréal Group.
These are inclusive of undertaken use of appropriate technologies and being hyper
attentive to demands of consumers (Leignel and et. al., 2019). In contrast to feedback
obtained from customers of L'Oréal Group, 50% of women complained that they
weren't able to find the right shade of foundation for their face and there were less
shades available for women with darker skin tones. For the purpose being managers at
the respective firm have introduced various strategies that coincides with use of digital
technologies. As contrasting to the given situation, putting thousands of shades on shop
shelves and on top of that communicating with customers with so many shades will
sound impractical. L'Oréal, on the other side have introduced "Le Teint Particulier"
which is foundation machine for which customers can come up with custom-made
shades that matches with their shades.
Document Page
Augmented reality (AR) is being taken for delivering with better consumer
relations in operational market of the given company. This was the greatest innovation
done by respective company in accordance to keep company's customers engaged and
deliver good impression of company in competitive business environment. Under the
said technique "Virtual 'try on' apps" was being used (Kähler and et. al., 2021).
Application work by tracking lips and eyes in real time and produce a virtual image
reflecting to facial feature points. In extension for the application tutorials were also
being made available to apply specific products sold by company. This technique
adopted by managers of L'Oréal helped company to gain good advantage competitive
market and enabled company to grab market opportunities in respect to potential future
growth (Gupta and Ramachandran, 2021).
Potential challenges and future growth opportunities; L'Oréal
Seeking to response of L'Oréal company to micro environmental changes, it can
be said that there could be potential challenges and associated future growth
opportunities while implementing strategies to counter plan such changes. Some of the
potential challenges that might arise can be an inclusion of complex business market
that might put a loophole towards carrying market changes forwards in business
operations. It can be an inclusive of intervention of government body or any competitor
with better business strategy operating in similar marketplace (Leermakers, Léonforte
and Luengo, 2020). However, complying to such challenges managers of respective
firm can guide better efforts produced in the business firm through performing regular
market researches and enable with better operational techniques. For the given
company managers need to concentrate on use of digital technologies as it can
possible lead to challenge in respect to advancements in such technologies (Santos,
Au-Yong-Oliveira and Branco, 2018).
There could be potential growth opportunities to L'Oréal reflecting to challenges
that are faced by operational firm. These opportunities will be delivered by challenges
that are faced by business firm. For instance, such challenges will provide an
opportunity which is relative to gaining competitive advantages and changes in
behaviour of consumers for the said company (Koch, 2020).

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Conclusion
From the analysis of above report essay, it can be concluded that, managers of
respective company play a vital role in deriving with productivity of the business firm in
respect to macro environmental changes as observed in the business market. By taking
key considerations to innovative and creative thinking strategy with usage of appropriate
technology managers of the respective firm was able to deliver with better customer
relations and guides operations of the business firm towards its success. furthermore, it
can be said that, there could be possible challenges which can be faced off by business
managers that explores threat as well as a potential opportunity for the business firm to
operate in the business market.
Document Page
References
Books and Journals
Casoli, G. and Ramkumar, S., 2020. Plastic Pollution in the Oceans: A Systemic
Analysis—Status Quo and Possible Sustainable Solutions. In Mare Plasticum-
The Plastic Sea (pp. 221-243). Springer, Cham.
Destarac, M., 2018. Industrial development of reversible-deactivation radical
polymerization: is the induction period over?. Polymer Chemistry, 9(40),
pp.4947-4967.
Gupta, S. and Ramachandran, D., 2021. Emerging Market Retail: Transitioning from a
Product-Centric to a Customer-Centric Approach. Journal of Retailing.
Jelassi, T. and Martínez-López, F.J., 2020. External Analysis: The Impact of the Internet
on the Macro-environment and on the Industry Structure of e-Business
Companies. In Strategies for e-Business (pp. 49-95). Springer, Cham.
Kaswengi, J., Diallo, M.F., Akrout, H. and Valette-Florence, P., 2020. Choosing high-
equity cosmetic brands in bad macroeconomic conditions: evidence from panel
data. International Journal of Retail & Distribution Management.
Pemberton, K. and Takhar, J., 2021. A critical technocultural discourse analysis of
Muslim fashion bloggers in France: charting ‘restorative technoscapes’. Journal
of Marketing Management, 37(5-6), pp.387-416.
Pierre, J., Francois, G., Benize, A.M., Rubert, V., Coutet, J. and Flament, F., 2018.
Mapping, in vivo, the uniformity of two skin properties alongside the human face
by a 3D virtual approach. International journal of cosmetic science, 40(5),
pp.482-487.
Santos, R., Au-Yong-Oliveira, M. and Branco, F., 2018, September. L'Oréal and its
innovative differentiated positioning process in the beauty industry. In European
Conference on Innovation and Entrepreneurship (pp. 717-XII). Academic
Conferences International Limited.
Sng, K., Au, T.Y. and Pang, A., 2019. Social media influencers as a crisis risk in
strategic communication: Impact of indiscretions on professional
endorsements. International journal of strategic communication, 13(4), pp.301-
320.
Koch, C.H., 2020. Brands as activists: The Oatly case. Journal of Brand
Management, 27(5), pp.593-606.
Leermakers, F.A., Léonforte, F. and Luengo, G.S., 2020. Structure and Colloidal
Stability of Adsorption Layers of Macrocycle, Linear, Comb, Star, and Dendritic
Macromolecules. Macromolecules, 53(17), pp.7322-7334.
Kähler, F., Carus, M., Porc, O. and vom Berg, C., 2021. Turning off the Tap for Fossil
Carbon: Future Prospects for a Global Chemical and Derived Material Sector
Based on Renewable Carbon. Industrial Biotechnology, 17(5), pp.245-258.
Leignel, J.L., Ménager, E. and Yablonski, S., 2019. Sustainable Enterprise
Performance: A Comprehensive Evaluation Method. John Wiley & Sons.
Charter, M. ed., 2018. Designing for the circular economy. Routledge.
Hernandez-Pozas, O., Murcia, M.J., Ogliastri, E. and Olivas-Lujan, M.R., 2021.
Management and sustainability dilemmas in Latin America:
introduction. Academia Revista Latinoamericana de Administración.
Document Page
Shapiro, A.C. and Hanouna, P., 2019. Multinational financial management. John Wiley
& Sons.
Perry, W., 2020. Social sustainability and the argan boom as green development in
Morocco. World Development Perspectives, 20, p.100238.
Peralta, M.E. and Soltero, V.M., 2020. Analysis of fractal manufacturing systems
framework towards industry 4.0. Journal of manufacturing systems, 57, pp.46-
60.
Online
For Our Products; Ingredients for excellence, 2021. [Online]. Available at:
<https://www.loreal.com/en/commitments-and-responsibilities/for-our-products/>
Five tech trends shaping the beauty industry, 2019. [Online]. Available at:
<https://www.bbc.com/news/business-48369970>
L'Oréal: How the company is engaging its consumer base, 2018. [Online]. Available at:
<https://webcache.googleusercontent.com/searchq=cache:VKJQZd_XbasJ:http
s://www.cosmeticsdesign-europe.com/Article/2018/02/20/L-Oreal-how-the-
company-isengaging-its-consumer-base+&cd=15&hl=en&ct=clnk&gl=in>
1 out of 10
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]

Your All-in-One AI-Powered Toolkit for Academic Success.

Available 24*7 on WhatsApp / Email

[object Object]