Business Environment Analysis Report: Maybelline Company

This report provides a comprehensive business environment analysis of Maybelline, a prominent player in the cosmetics industry. It begins with an introduction to the business environment and its importance for organizational success. The report then delves into the relationship between various organizational functions within Maybelline, such as research and development, marketing, production, human resource management, and accounting and finance, highlighting their interconnectedness in achieving company goals. A detailed PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors impacting Maybelline, assessing both positive and negative implications. Furthermore, a SWOT analysis identifies Maybelline's strengths, weaknesses, opportunities, and threats, considering both internal and external factors. The report also incorporates Porter's Five Forces model to evaluate the competitive landscape, including the threats of new entrants and substitute products. The analysis provides valuable insights into Maybelline's strategic positioning within the market and its ability to adapt to changing business conditions, concluding with a summary of key findings and recommendations.

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 & P2 Covered in PPT.............................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between various organisational functions.........................................................1
TASK 3............................................................................................................................................2
P4 Pestle analysis with their positive and negative impacts.......................................................2
TASK 4............................................................................................................................................4
P5 Internal and External analysis................................................................................................4
P6 Interrelation of Strength and weakness with external Macro factors....................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is all about understanding changes which is occurred at
marketplace in order to run their organization in more effective manner. Basically, company can
easily accomplish their business activities in appropriate manner by analysing the reformation so
that they can attain their set objectives in a defined time frame (Agarwal, Grassl and Pahl, 2012).
However, number of companies are emerging at marketplace with distinct motives, size, scope
and so on. Thus, assignment is going to highlight various types of associations and their major
target towards overall nation and society. Additionally, structure of business entity are also
described in this report by showing the relationship between various organizational functions.
Furthermore, an appropriate PESTLE is also conducted for Maybelline and their SWOT for
making changes as per fluctuation in different elements.
TASK 1
P1 & P2 Covered in PPT
TASK 2
P3 Relationship between various organisational functions
In an organisation, there are different department which are perform their work for
achieving desired goals and targets to future time period. They are play an essential role in
gaining high amount of income and profit in appropriate manner. There are various department
of Maybelline company that are described as under:
 Research and development- This is that division which help in analysing and examining
the whole market needs and requirement for their products to provide quality based
services in easy manner. With the assistance of this, an organisation are capable for carry
out their production for designing appropriate services for the customers.
 Marketing department- It is that division which have major roles and responsibility is
to promoting their new products and services among customers at the large market place
(Aterido, Hallward-Driemeier and Pagés, 2011). Apart from this, the financial growth of
company is mainly depend on ability and capacity of market range and scope.
 Production department- In this, firstly, company manager and their employees are
analysing the whole market demand and it customers needs. According to their buyers
1

taste and preferences, they are producing goods and services which assist in satisfying
their requirement in proper manner. For developing quality best products, the firm need
to analyse their buyers needs and wants after that they required to manufacture products
in better way.
 Human resource management- This is that department of company which has been
designing their goods and services in appropriate manner. HR team members are those
person who are responsible for all business operations and its functions (Auzair, 2011).
Along with this, they are hire those employees who have ability to do work in gaining
high amount of income and profitability. Maybelline division performing various work in
order to reducing the major errors, mistakes and conflicts for doing effective business
activities in easy manner.
 Accounting and finance- This is that department which are developing and arranging all
accounting and financial practices in better manner. With the same, the firm are capable
for managing and maintaining their cash flow, budgetary control, fund flow, finance
management and trading accounting which required to be maintained according to the
specific situation. This can be known as confidential department of an enterprise which
help in managing their financial statement of the company and also assist in getting
success and growth in effectively. In this division, team members are recording each and
every business function and activities for arranging all budgetary control and also manage
all income amount related to specific products and services.
TASK 3
P4 Pestle analysis with their positive and negative impacts
Business environment consist of two major section which involve internal and external
elements that impacts on operational activities either in positive or negative way. It is necessary
for each and very organisation to observe, analyse and evaluate these components to carrying out
different types of tasks or procedures in appropriate manner to achieve desired gaols or
objectives (Avramenko, 2012). Pestle analysis should be conducted by Maybelline to determine
impacts of them on organisational projects. A brief discussion about these external factors is
given below:
2

Political factor :- This can be described as rules and regulations of several political
parties which are established as per requirements which are necessary to be followed by
organisations. Several kinds of norms are made by them such as pollution vehicles to reduce
legal actions against firm then it is mandatory for companies to use ozone friendly transportation
method for sales and distribution (Burns and Winter, 2011). Maybelline have to focus on these
criterion made by political agencies because they are like apart of government as well. Following
these policies avoid extra restrictions and busies can be run properly to generate better outcomes.
It has positive impact that it helps to make n effective image and reduce risk of legal
punishments.
Economical factor :- This can be described about figures of funds or money which is an
important aspect of company to carrying out different activities or tasks for attaining desire
outputs. It is necessary to implement required capital to conduct various aspects of business and
maintain a margin between cost of manufacturing and funds. This will helps to overcome with
sudden issues of firm easily. Maybelline have to balance money of investment in sufficient
amount which become supportive to carrying out regular activities and also facilitate to reduced
negative impacts of sudden arisen threat or issue in an organisation.
Social factor :- The term social factor is all about several kinds of values, beliefs and
religion of people living at a place should be not harmed by conducting any procedure of
operations in company. It is necessary to take care of various aspect that may hurt norms of any
societal culture, religion etc. Many of regulations are also important which are made by
particular actual trust that are mandatory to be followed by people living there. Maybelline is
required to focus on these problems and carefully execute their packaging of product or several
promotional activities on social media platform to improve sales and profits of an enterprise.
Following the social rules has both positive and negative impacts such as it reflects as attached to
cultural values but at same time people of other religion felt wrong about company (Chow and
et. al., 2011).
Technological factor :- This cab be explained about various types of technological
software and programmes that are applied in different companies as per requirements to
complete required tasks and procedures properly. It will facilitate to gain better productivity as
well as profitability of an enterprise. There are different kinds of techniques or methods that are
in trends which helps to conduct desired events in appropriate manner to generate better
3

outcomes in Maybelline. Technology also has both positive and negative impacts as it is
beneficial to fulfil regular targets but single and minor issue will destroy whole results at one
stroke.
Legal factor :- There are different types of rules and legislations that are made by
government agencies which are necessary to be followed by each and every organisation to run
their business in appropriate manner to complete desired goals or objectives (Commander and
Svejnar, 2011). Legal regulations are mandatory to be applied by company while making any
decision regarding various strategies or policies to carrying out operational procedures on regular
basis to generate regular outcomes properly. Maybelline have to determine several changes or
modifications of legal rules or norms an d upgrade system of working in company to avoid
government punishments. It has a positive impact as it provides an opportunity to improve its
image in front of legal authoritative as well as customers through avoiding any negative activities
of legal offence.
Environmental factor :- This refers to several environmental issues which are created by
various operational activities such as ozone depletion, pollution, global warming, extinction of
species etc. It is necessary to focus on these problems and perform ozone friendly tasks through
using pollution free equipments. It includes to put certain efforts to educ these issues by
disposing wastage properly and using ozone friendly vehicles for sales and distribution.
Maybelline is required to implement essential tools for reducing pollution and non biodegradable
wastage from company's aspect. Environmental factor has positive impact as it boost up
goodwill of brand in front of people and legal agencies as well.
The above mentioned several factors have an important roles on strategies or policies of
an organisation as they impacts on decision making for building an appropriate plan of action.
This will helps to generate regular outputs effectively as well as efficiently (Cronan, and et. al.,
2011). It is necessary to observe and analyse their negative or positive effects to take suitable
action top reduce issues and threats in Maybelline.
TASK 4
P5 Internal and External analysis
Business environment includes various kinds of factors which are mandatory to observe,
analyse and evaluate them to run a successful business in appropriate manner to gain better
4

outcomes. It is necessary to carrying an internal and external analysis of different elements that
impacts on decision making of company while preparing several strategies or policies to conduct
desired tasks or activities (Dahan and et. al., 2010). It is necessary to determine strengths,
weaknesses, opportunities and threats which helps to reduce problems and enhance profitability
of company. Maybelline is required to study about these elements which are given below.
Strengths Weaknesses
 Maybelline has strong pint in terms that
it has best quality of cosmetics at
suitable price which provides
satisfaction to people while they use
them.
 They have perfect work force and
operational techniques to complete
their production process in more
effective as well as efficient manner to
get outcomes in proper way.
 They are using too many chemicals
which are not good for skin of
individuals and that's why they avoid
it's products and prefer other ones to
fulfil their desires.
 Maybelline has very less presence of
the brand on social media platform as
compared to their other competitive
firms which reduce their sales and
profits as well.
Opportunities Threats
 They have an opportunity of grabbing
more customers along with retaining
current ones because they shift
according to consumer behaviour and
provide fresh product as per trend of
market (Fernando, 2011).
 They provide wide range products
which helps them to attract more
people towards their brand and apply
several modifications as per demand of
clarinets to attain their satisfaction.
 There are various kinds of organisation
that render products similar to
Maybelline which facilitate improving
tough competition in changing trends of
market which are mandatory to be
followed as per demand of customers.
 This firm is facing the factor of
economic recession in current scenario
due to global financial condition. It is
also politicised for it's excessive use of
chemicals in cosmetics.
5

Porter's five forces model Threats of new entrants :- It is all about problem of new entrants which will face by
fresh firms while introducing their brand in market. There are various kinds of small,
medium and large organizations that already established their market share more
effectively to earn better profits (Gebauer, Paiola and Edvardsson, 2010). In case of
Maybelline, if they want to launch new concept of product then they are required to
conduct more efficiently promotional activities to motivate people for buying decision.
New entrants are responsible for increasing competition and they are needed to put too
much efforts establishing their market. Threats of substitute products or services :- There are different types of companies
which deals in same sector such as retailing sector and providing similar products or
services to customers (Teece, 2010). It is necessary to implement more innovative and
unique features into goods to make them differentiated from others and more attractive.
In case of Maybelline, they are required to conduct better marketing events which
influence people to make purchasing decision that helps to earn growth of business. Bargaining power of supplier :- Suppliers can be considered as an important factor for
any organization as thy provides raw material to firm. In case of increasing profits of
company, suppliers can bargain for their earning t6horugh company otherwise they may
switch to other one. This will facilitate to carrying out operational activities to generate
desired number of units of product to complete target on regular basis. Maybelline have
to maintain their relations with suppliers because of they shift from company then it will
become difficult to connect with other one. Bargaining power of buyers :- There are various kinds of alternative choices for
customers to buy particular product then they have strong bargaining power (Halbert and
Ingulli, 2011). They have an opportunity of shifting to another retailer for purchasing
similar goods at reasonable rates. Maybelline have to provide their appropriate product at
reasonable price so that clients will not get shifted to other retailers.
 Competitive rivalry :- This can be simply described about strong and tough competition
of market due to presence of different small, medium and large firms. This is major issue
which facilitate to reduce sales and customers of Maybelline.
6

The above discussed factors are necessary to be observed and studies to determine their
impacts on operational activities of an organization. This will render support to identify several
strengths and opportunities so that they can be utilized in more effective as well as efficient
manner for achieving desired results. At the other hand, threats and weakness are also required to
be measured so that suitable actions can be taken for reducing their negative impacts on firm's
operations properly (Hamilton and Webster, 2015).
P6 Interrelation of Strength and weakness with external Macro factors
External macro factors can be described as those elements which surviving outside the
organisation but bear that ability to impact deeply in operational procedures. These factors has
capability to effects decision making in company while making an appropriate strategies or
policies to generate better outcomes. Generally, there are several components of external
environment such as political, economical, social, technological, environmental and legal
(Siewiorek and et. al., 2012). It is necessary to observe, analyse and evaluate their impacts on an
enterprise. Strengths, weaknesses, opportunities and threats can be identified by studying macro
elements in appropriate manner by generating desired outcomes. In case of Maybelline, they are
required to conduct research and go through these components to identify strong and weak points
of an organisation. This will help to reduce negative effects and facilitate to improve
profitability.
There are various kinds of procedures which can be carried by companies such as SWOT
analysis which support to determine opportunities which can grabbed at right time. It will help to
boost up productivity as well as profitability of an enterprise to create desired outputs on larger
basis. In case of introducing new concept of goods in market is very difficult to establish it's
market because already existing brands have very good market which impacts profitability of
fresh firm. If Maybelline is ping to launch any new product then they are needed primarily study
about several aspects of Porter's five forces model. It includes threats of new entrants threats of
substitute products or services, bargaining power of supplier, bargaining power of buyers and
competitive rivalry (Mahmood and Hanafi, 2013). These factors are helpful to introduce fresh
idea in changing trends of market in unique or innovative way to create better outcomes. It is
mandatory to make correct decision to build an effective as well as efficient strategies for
conducting required procedures in accurate way.
7

There is an important interrelationship between strengths and weakness with external
macro factors as they both are necessary to be studied for carrying out needed events in correct
way to generate desired outputs. Maybelline is required to analyze each and very aspect of
business environment to determine strong and weak points of company and make an accurate
plan of action to get better results. Strengths are supportive in terms as it provides chance to
improve productivity as well as profitability t to attain growth in business career. But weaknesses
helps to reduce threats and issues.
CONCLUSION
From the above report it has been summarized that changes in external and internal
environment have a major impact on a company performance. Their main objective is to
maximize the company profit by conducting changes as per client need or requirements.
However, number of alteration are incurred at marketplace due to which policies of an enterprise
is getting affected and managers get enforced to change their current plans. Along with this, one
thing is determined that corporate world consist of various type of enterprises with distinct
motives. For example; private, public and voluntary enterprises. Hence, it has been understood
that company needs to asses PESTLE and SWOT for making changes at workplace in
appropriate manner for attaining set objectives or goals in a defined time frame.
8

REFERENCES
Books and Journals
Agarwal, R., Grassl, W. and Pahl, J., 2012. Meta-SWOT: introducing a new strategic planning
tool. Journal of Business Strategy. 33(2). pp.12-21.
Aterido, R., Hallward-Driemeier, M. and Pagés, C., 2011. Big constraints to small firms’
growth? Business environment and employment growth across firms. Economic
Development and Cultural Change. 59(3). pp.609-647.
Auzair, S., 2011. The effect of business strategy and external environment on management
control systems: a study of Malaysian hotels. International Journal of Business and
Social Science. 2(13).
Avramenko, A., 2012. Enhancing students' employability through business simulation.
Education+ Training. 54(5). pp.355-367.
Burns, C. and Winter, S., 2011. Introduction. Australian Farm Business Management Journal.
8(2). p.iv.
Chow, A. T. and et. al., 2011. Broadband network with enterprise wireless communication
system for residential and business environment. U.S. Patent 7.944,948.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93(1). pp.309-337.
Cronan, T. P. and et. al., 2011. Decision making in an integrated business process context:
Learning using an ERP simulation game. Decision Sciences Journal of Innovative
Education. 9(2). pp.227-234.
Dahan, N. M. and et. al., 2010. Corporate-NGO collaboration: Co-creating new business models
for developing markets. Long range planning. 43(2). pp.326-342.
Fernando, A. C., 2011. Business environment. Pearson Education India.
Gebauer, H., Paiola, M. and Edvardsson, B., 2010. Service business development in small and
medium capital goods manufacturing companies. Managing Service Quality: An
International Journal. 20(2). pp.123-139.
Halbert, T. and Ingulli, E., 2011.Law and ethics in the business environment. Cengage Learning.'
Hamilton, L. and Webster, P., 2015.The international business environment. Oxford University
Press, USA.
Mahmood, R. and Hanafi, N., 2013. Entrepreneurial orientation and business performance of
women-owned small and medium enterprises in malaysia: competitive advantage as a
mediator. International Journal of Business and Social Science. 4(1).
Siewiorek, A. and et. al., 2012. Learning leadership skills in a simulated business environment.
Computers & Education. 58(1). pp.121-135.
Teece, D. J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Online
Porter's Five Forces OF Competitive Position Analysis. 2018. [Online]. Available through:
<https://www.cgma.org/resources/tools/essential-tools/porters-five-forces.html>
9