Business Strategy of a multinational corporation

Unit 32: Business Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.Impact of macro environment and internal environment on the company along with
organisation's capabilities.......................................................................................................1
2. Porter's Five Force Model for the competitive environment of the organisation...............5
TASK 2............................................................................................................................................7
1. Evaluation of the different types of strategic directions available to the organisation......7
2. Justification and recommendation for the growth platform and strategies........................9
3. Strategic management plan with strategies, objectives and tactics..................................10
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Business strategy is a set of competitive actions and moves that can be used in a business
to attract consumers, create competition in the market, strengthening performance and achieving
business objectives of a firm. This assignment based on L’Oréal, it is a French personal care
company headquartered in Clichy. It is world's largest cosmetics company and this company
founded by Eugene Schueller in 1909 and produces cosmetics products. The report discusses
about internal analysis, external analysis and Porter's five force model explained for the
competitive environment of the organisation. A strategic management plan with strategies,
objectives and tactics, evaluation of different types of strategic decisions and recommendation of
the most appropriate growth platform and strategies are defined (Amit and Zott, 2012).
TASK 1
1.Impact of macro environment and internal environment on the company along with
organisation's capabilities
Macro environment is the external environment of the company that influenced the
business strategies and decision making of an organisation. In L’Oréal, it refers to those factors
which are external forces in the company's activities and do not concern the immediate
environment. The deputy strategy manager of L’Oréal can do PESTEL analysis for determining
the influence of external analysis.
PESTEL analysis
It is tool and framework that is used by marketer to analyse the macro environmental
factors that have an impact on the company. This analysis includes various factors, they are as
following:
1