L'Oreal Company: Business Environment and Strategic Analysis

This report provides an analysis of L'Oreal's business environment, focusing on various factors that influence its operations. It examines the political landscape and its impact on the company, including government policies and political stability. The report also explores economic factors such a...Read More

Business in Practice
INTRODUCTION
Business environment is a sum of various internal and external
factors that create an impact over the business operations of
organisation. This project contains the case study of L’Oreal
Company in respect to the business. Henceforth, project has
demonstrated about the impacts business environment factors
created over the business operations of organisation. Furthermore,
project will demonstrate strategies to deal with various factors
related to the business environment in context to the organisation.
Political factor
Political factor comprises with different policies formed by
government in relation to the corporate sector. All policies
government form put a huge impact over the business operations
entertained by the organisation. Political factor involve political
stability of government. If the political situation in market is stable it
support organisation to form long term policies and strategies to
deliver the overall business outcomes (Kokodey, Gnezdova and
Lomachenko, 2018). Company form all its policies on the basis of
the political situation of the country. Government all across the globe
has supported and understand the value of the business and corporate
sector growth as it is directly linked up with the growth and
development of country which also motivate the political situation to
support the companies.
Social factor
Social factor comprises with fashion, trends and other factors of the
business. All policies company form are based on the social factor
part of the business. Social factor is a critical element involve in
business environment as fashion and trends can change at any time in
the business environment. Loral Company try to influence the
fashion with the support of its products.
Economic factor
Economic factor influenced with the economic situation of country.
It is immensely influenced with the inflation rate of country. Per
capita income of country also impact over the pricing strategies of
the organisation. Economic factor involve the income of people
which would guide the organisation to channelize the pricing
policies of company.
Technological factor
Technological factor involve technological development that can
support the organisation to deliver the best level of business
operations. Company has been constantly involved in technological
development of organisation.
Environment factor
Environment factor contain the environment protection factor. Loral
Company has been engaged in different social responsibilities and
also the product segment of company is eco friendly.
Legal factor
Legal factor involve all different laws and legal regulation
applicable over the organisation.
Different ways business can impact on business environment
Businesses get directly impacted with the business environment aspect. The factors like political, economic, social, technological, environment
and legal factors create a direct implication over the organisation (Popescu and Popescu, 2019). Company form strategies to achieve the
maximum possible outcomes in the business operations.
REFERENCES
Kokodey, T., Gnezdova, I. and Lomachenko, T., 2018, October. Modeling the global business environment based on polycyclic theory. In The
International Science and Technology Conference" FarEastСon" (pp. 487-499). Springer, Cham.
Popescu, C. R. G. and Popescu, G. N., 2019. An exploratory study based on a questionnaire concerning green and sustainable finance,
corporate social responsibility, and performance: Evidence from the Romanian business environment. Journal of Risk and Financial
Management. 12(4). p.162.