This report provides a comprehensive analysis of L'Oréal's business strategy, examining its approach to achieving competitive advantages in the cosmetics industry. The report begins with an introduction to business strategy and a brief overview of L'Oréal. Task 1 focuses on the impact and influence of macro-environmental factors on L'Oréal's strategies, utilizing PESTLE analysis to assess political, economic, social, technological, environmental, and legal factors. Task 2 delves into L'Oréal's internal environment and capabilities, applying the VRIO model to evaluate the value, rarity, imitability, and organization of its resources. Task 3 applies Porter's Five Forces model to analyze the competitive dynamics within the cosmetics industry. Finally, Task 4 applies various strategic theories, concepts, and models to interpret and devise strategic planning for L'Oréal, including the Ansoff Matrix. The report concludes with a summary of findings and a list of references.