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UNIT 32 Business Strategy Assignment - L'Oreal

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Added on  2020-10-23

UNIT 32 Business Strategy Assignment - L'Oreal

   Added on 2020-10-23

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UNIT 32BUSINESSSTRATEGY
UNIT 32 Business Strategy Assignment - L'Oreal_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1. Analyse PESTLE and SWOT for making strategic planning and an analyses to adoptorganisation capabilities..............................................................................................................1TASK 2............................................................................................................................................4P2 Analysis of the internal environment and capabilities of a L'Oreal.......................................4TASK 3............................................................................................................................................6P3 Application of Porter’s Five Forces model to evaluate the competitive forces of L'Oreal ...6TASK 4............................................................................................................................................8P4 Application of a range of theories, concepts and models, interpret and devise strategicplanning for a L'Oreal.................................................................................................................8CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................13.......................................................................................................................................................13
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INTRODUCTION Business strategy is a process in which higher authorities of business make variousdecisions to achieve objectives (Acquaah, 2013). It is a strategic plan which is used to designparticular goal or objectives. The purpose of this is to design, arrange and utilize variousorganization instruments which help company to make long term growth for business enterprise.The company that have been mentioned in the report isL'Oreal. It is the world' largest cosmeticcompany founded in 1909, it had made various cosmetic products like shampoo, skin care lotion,sun screen, make up items, perfumes for both men and women etc. It had launched more than500 brands in all over the world. The company need to examine external and internal analysisthat includes PESTLE, SWOT and Porters five forces model which form a proper strategicplanning. It also evaluates various type of strategic directions, justify and make certainrecommendations for most suitable growth strategies. L'Oreal have to design a definite strategicmanagement plan for devising perfect business strategy that had been mentioned in above report.TASK1P1. Analyse PESTLE and SWOT for making strategic planning and an analyses to adoptorganisation capabilities External analysis help to determine strengths and weakness of company whichmake some competitive advantage in business and internal analysis help to find out the threatsand opportunities (Al-Karaghouli and Eldabi, 2013). which help organisation to determine itsobjectives.PESTLE analysis-It refers to a process which is used by marketers to analysis the various factors ofenvironment which effect the organization. L'Oreal is a famous cosmetic and beauty company inall over the world which make various merchandise products to meet up the condition ofdifferent customers. L'Oreal need to examine various factors which form complete marketingstrategies in an organisation.PoliticalPolitical factors mean rules, regulations and policies of government of countries whereL'oreal company has been working. This factors includes political stability, government policy,foreign trade, tax, labour law, trade restrictions. This company has manufacturing in Paris where1
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policies and rules of France affect company (Bharadwaj and et. al., 2013). As product safety isvery important for every organisation for surviving, L'oreal needs to report ingredients it uses inproduct while manufacturing to France's government. This factors impact strategic planning aspolicies, regulation of every country differ from each other which affect manufacturing process.The political factors affects the L'oreal's strategies because if Govt. changed its rules andregulation within the country then L'oreal also have to change its strategies, and if the Govt. of acountry is stable then it effect the strategies in positive way. Opportunities- The taxes are not so much higher which is imposed by Govt. oncosmetics products so that it is vital opportunity for the organization to expand itsbusiness with making huge revenue..Threats- If government suddenly change their policies regarding cosmetic products, thenL'Oreal has to face threat. If product is not as per standard set by government then it hasto bear huge loss for already manufactured products.EconomicIt means performance of economy which impacts company having long term effects. Itincludes inflation, interest rate, economic growth, foreign exchange and others. The recession ismajor elements which up-bring cosmetic organisation (Chang, 2016). Price of products varyfrom region to region due to imposing of tax. The states which are developed having high humandevelopment index contribute more to branded products like L'oreal. The economic factors alsoimpact the L'oreal strategies as well such as if it develop a strategy to expand its business inanother country, where human development index is not so high then it have to change itsstrategy regarding producing products at cheap rate. Opportunities- If GDP rise, the purchasing power of consumer also increases whichleads to enhancement of sales which is biggest opportunity for L'Oreal.Threats- The decrease in value of dollar and other currencies leads to threat for L'Oreal.SocialSocial factors mean value, belief, opinion and characteristics of consumer (Eaton andKilby, 2015). It is the trends where people of society prefer new and latest products. Due to needand demand of people, L’Oréal’s always do innovations in their products and supply highquality. If L’Oréal does not focus on supplying high quality and innovation then it has to vanish2
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