Porter's Five Force Model - L’Oréal
11 Pages3538 Words166 Views
Added on 2020-10-22
Porter's Five Force Model - L’Oréal
Added on 2020-10-22
ShareRelated Documents
BUSINESS STRATEGY
Table of ContentsINTRODUCTION...........................................................................................................................1Porter's Five Force Model is used to analysis competitive environment of the L’Oréalorganization. ...............................................................................................................................4Task 2: Strategic Plan based on the environmental analysis .....................................................5Bowman model is applied to evaluate different types of strategic directions in an organization......................................................................................................................................................5Justification and Recommendation of growth platform is discussed:.........................................6Strategic management plan with strategies, objectives and tactics.............................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONBusiness strategy define as the course of action and set of competitive moves which anorganisation use for attract customer,compete successfully and achieve goals of the organization.Purpose of business strategy is to enhance overall performance , enhance organization marketposition and work on new market condition and development. L’Oréal is a personal carecompany headquartered in Clichy and registered office in Paris. This is worlds largest cosmeticscompany and this concentrating on hair colour ,skin care, sun protection , make-up,perfume ,hair care and men's skincare. This report cover internal and external environmentwhich include pestle and swot and analysing competitive environment by using porters fiveforce model. Create strategic plan which include different type of direction, justification andrecommendation growth platform and strategy and produce strategic management plan withstrategies ,objectives and tactics.TASK 1Internal and external environment which provide basis for strategic planPestle and swot describe as the internal and external environment of the organizationwhich is given below.PESTLE analysis of L’Oréal Pestle analysis: This is describes a framework of macro -environment factor which isused in scanning environment component of strategic management. This tool identify externalfactors of organization. PESTLE analysis of L’Oréal is given below. Political factor: this factor include rules,regulation and government policies. This rulesand regulation should be followed by L’Oréal. As its the manufacturing company in pairs somost of the policies affect the company very much. In L’Oréal there is an different policies whoplay a vital role in the success of L’Oréal.Economic factor: this factors include interest rate , employment or unemployment rateand foreign exchange. This factors impact on economic and performance. L’Oréal price playimportant in the mind of customer. People of such state will be ready to purchase L’Oréalproduct so that its increase the sales and create positive environment.1
Social factors: this factors focus on understanding the needs and wants of the customer.This includes cultural, educational, attitude and change in life style. L’Oréal manger shouldfocus on the culture, attitude and life style of a country where the sale there product. Technological factor: this is define as a technology and innovation that affect marketindustry. This factor include mobile, automation , research and development. L’Oréal managershould apply this for innovation in its product which attract new customer in the market. legal factor: L’Oréal must understand that what is legal and allowed within theterritories they operate. They also aware about the changes in the legislation , this legal factorsinclude employment legislation , consumer law trade regulation and restriction. L’Oréal s legalteam make vital contribution and expert light on legal decisions. Environmental factor : this factor relate to influence the surrounding environment andimpact of ecological aspect . This factors include carbon footprint, waste disposal and recyclingprocedure. L’Oréal manager should consider various environment safety laws and this companysupport such campaigns and following the norms of the world.]SWOT analysis of L’Oréal: It is a strategic planning technique which is used in identifying companies strengthsweakness opportunities and threat which is related to organizations competition. SWOT analysisof L’Oréal is given below:Strength: This is define as in what L’Oréal is excels at and what think separates it fromthe competition. Strength of L’Oréal is given below: L’Oréal is the largest beauty or cosmetic company in the world. In this,where othercompany focus on cosmetics and personal care. L’Oréal is the company who is focusedon beauty product which is the reason of success of L’Oréal in this sector. Strong research and development in the product. L’Oréal involve continue research anddevelopment in its product. Experiments going on to ensure the safety of its customer andalso trying for new product.Weakness: This is define as the area where L’Oréal have to improve the competetion inthe market. Weakness of L’Oréal is given below:High investment included in R&D as well as the massive expenses of distributionmeans that L’Oréal profit margin is low as compared to complicators.2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Business Strategy Assignment - L’Oréal organisationlg...
|18
|6075
|335
L'Oréal Business Strategy - Doclg...
|19
|5808
|184
Impact and Influence of the Macro environment on a given organisation and its strategieslg...
|15
|3981
|322
BUSINESS STRATATEGY INTRODUCTION INTRODUCTION 1 TSK 11 a) PESTLE AND SWOT Analysis of the Organisationlg...
|13
|4442
|455
Business Strategy for L’Oréallg...
|17
|4463
|54
(solved) Pestle and Swot Analysis of L’Oréallg...
|17
|5974
|311