PESTLE and SWOT Analysis: Business

Added on - Dec 2020

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Business Strategy
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3PESTLE and SWOT of the organisation and an analysis of the organisation’s capabilities......3Analysis of the competitive environment of the organisation using Porter’s Five ForcesModel..........................................................................................................................................9TASK 2..........................................................................................................................................11Evaluation of the different types of strategic directions available to the organisation.............11Justification and recommendation of the most appropriate growth platform and strategies.. . .12Strategic management plan with strategies, objectives and tactics...........................................12CONCLUSION..............................................................................................................................13REFRENCES.................................................................................................................................15.......................................................................................................................................................16
INTRODUCTIONBusiness strategy is the set of decisions which help an entrepreneurs in accomplishingpredetermined business objectives. In other words it can be said that, business strategy is themaster plan that is use by management for taking competitive position in the market area,carrying out operational activities, attract customers as well as accomplish desired objectives ofbusiness (Bharadwaj and et. al, 2013). Simply it is long term business planning which coverperiod about 3 to 4 years. This assignment is based on L’Oréal which is from personal careindustry founded in 1909 and is serving at worldwide level. Respective organisation is one of theworld's leading provider of large range of skin care and accessories. This report is going toconduct internal and external analysis of company along with its capabilities. Also it analysingcompetitive environment with the help of porter's five force model. Apart from this, it includeevaluation of various types of strategic directions available for organisation as well as strategicmanagement plan will be designed in this report.
TASK 1PESTLE and SWOT of the organisation and an analysis of the organisation’s capabilities.PESTEL analysis is the tool utilise by the marketers for external or macro environmentfactors analysis because it have wide impact on the working of organisation(Wang and Verma,2012).Moreover, PESTEL is the mnemonic which denotes P for political, E for economic, S forSocial, T for technology, L for legal and E for environment. Importance of each and every factoris different to different type of industries. L'Oreal is leading organisation in cosmetic and beautyindustry in the entire globe(Acquaah, 2013). It is serving variety of products with the motive ofproviding customer satisfaction and fulfilling their needs and wants. Respective organisation ismainly dealing in hair and skin related products as well as having some range of perfumes andpharmaceutical stuff. PESTEL analysis is used for identifying impact of macro environmentalfactors on L'Oreal are as follows :-P- Political factors:This factor involve rules as well as policies given by the governmentin which organisations like L'Oreal is working. As manufacturing activities of same firm isconducted in the Paris thus, government policies of France gives wide impact. Along with this,various import policies of particular location play crucial role in the success of sameorganisation. Apart from this, political factor have both negative as well as positive impact onL'Oreal which are as follows :-Positive –With the assistance of political factors, L'Oreal can do business in differentcountries in effectual manner. Thus, it result in generating more and more revenue as wellas increase customer base also.Negative –There are various rules, regulations and laws made by the government whichsometimes gives negative impact on the operational as well as functional activity ofL'Oreal (Woodard and et.al , 2013). Thus, in this situation respective organisation haveto take care of their offerings, that it will not include any harmful substances.
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