Unit 32 Business Strategy in Organization Assignment - L'Oreal

Unit 32

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Presenting framework analysis that influence the macro environment by usinhPESTLE
Analysis..................................................................................................................................1
LO 2.................................................................................................................................................2
P2 Presenting internal environment by using SWOT analysis...............................................2
M1 & M2................................................................................................................................4
LO 3.................................................................................................................................................7
P3 Presenting Porter 5 force analysis to evaluate the competitive advantages......................7
M3...........................................................................................................................................9
LO 4...............................................................................................................................................10
P4 Applying the range of theories and concept for strategic planning ................................10
M4 & D1 ..............................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business strategy is the set of plan which is used by a management to secure the
competitive position in the market. The present report is based upon the study of L'Oreal which
is one of the leading company who provides a range of skin accessories. Report presents the
internal and external factor that affect the environment by using swot, VRIN and pestle analysis,
further it also apply porter five force model in order to evaluate the competitive forces. By using
Ansoff growth vector matrix, report will further analyse the strategic direction and then provide
a strategic plan as well.
Vision: The quoted firm uses the motto “because I am worth it” in order to represent their
vision.
Mission: L'Oreal wants to provide men and women the best kind of cosmetics products
with better quality and also wants to satisfy their needs as well.
Objectives: To increase the sales of a business up to 20% in coming 2 years.
Strategy: An quoted firm chooses unique strategy under which it provides products to all
peoples.
LO 1
P1 Presenting framework analysis that influence the macro environment by usinhPESTLE
Analysis
Political factor: It includes rule and policies of the government in which a firm is
working. The L'Oreal manufacturing company is in Paris, therefore France government directly
affect the company the most. Apart from this, there are several import policies which also affect
the success of L'Oreal (Hammad, 2015). Moreover, customers increasingly conscious values and
some political association also affect the brand image as well.
For example, change in tax rate creates negative impact upon the business such that as the tax
rates are increases then it affect the purchasing power of the customers in negative way.
Economical factor: It includes an exchange rates, inflation and recession which affect
the business in a negative way. It is quite necessary for the firm to have stable economy of the
country. Apart from this, the prices of the products are also varies from region to region. It is
also analysed that beauty and cosmetic industry are immune to economic downturn and
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