Corporate Strategy and Governance: A Case Study of L'Oreal's Practices

This report provides an analysis of L'Oreal's corporate strategy and governance, examining how the company's advertising practices have shaped its market position. The report begins with an introduction to corporate strategy and a brief background of L'Oreal, highlighting its history and product range. The research delves into the purpose and significance of the study, emphasizing the importance of advertising in the business world and its impact on consumer perceptions and ethical considerations. The report explores the concept of misleading advertisements and their effects on L'Oreal's performance, referencing academic literature to support its arguments. It investigates the impact of deceptive information on consumer interest and the company's brand reputation. The report also outlines the research methodology, including research design and data collection. Finally, it concludes by emphasizing the need for companies to develop advertising strategies that align with government regulations to avoid potential issues, and provides a list of references.

Corporate Strategy and Governance

Table of Content
• Introduction
• Background of Loreal
• Purpose and significance of research
• Literature Review
• Conclusion
• References

Corporate strategy is said to be the ways through which an organisation can develop a range
of directions through desired objectives could easily be attained right on time. In the same
way, L'Oreal which is one of a leading French personal care organisation that has developed a
corporate strategy where company's advertisements related to certain products could help
them in grabbing attention of customers.
Introduction

• L'Oreal was found in the year of 1909 by Eugene Schueller. Since that, company has
been first choice for customers that likes to live a fashionable life. L'Oreal is rapidly
making a good range of beauty and personal care products for its targeted customers. In
order to improve profit margins of L'Oreal, organisation has kept its focus on diversity
and tries to bring a range of products and services every three to four months of a year
Background of the L'Oreal

• The fundamental reason behind choosing this topic is that, advertising has been one of the
most integral parts of a business entity. Organizations all around the world spend billions
of dollars every year to promote their products and advertising is one of the tools to
promote their product globally. Thus, L'Oreal has also used it for the same reason so that
to grab a good position in the market. This led, L'Oreal to face issues linked with
perceptions and ethics of people which impacted on overall reputation and performance
of L'Oreal.
Purpose and Significance of the research

• To understand the concept of misleading ads.
• To determine the impact of misleading ads on performance of L'Oreal.
• To analyse the areas which L'Oreal needs to focus on improving ads while promoting
products in order to gain good reputation and competitiveness in the market
• Research questions
• Evaluate the concept of misleading ads ?
• What are the impacts that can be seen of misleading ads on performance of L'Oreal ?
• What are the areas which L'Oreal needs to focus on improving ads while promoting
Continue…..

• Concept of misleading ads
• As mentioned by Walls, Berrone and Phan, (2012), concept of misleading advertisements
could be understood where deceptive information is likely to being given to customers
which builds there interest towards the product or services that are offered by customers.
It has been analysed that, advertising may also be helpful in considering misleading if
important information that the average consumer needs to make an informed decision is
left out.
Review of the literature

• According to Wu and Lu, (2012), L'Oreal which is one of famous personal care business
organisation, consist with a diverse product range brand portfolio. Company (L'Oreal) has
kept its focus on earning a good profit. Thus, it can easily be said L'Oreal has made a
range of advertisements consist with a number of phrase like “Boosts activity of genes
and stimulates the production of youth proteins” or “Boosts the activity of genes” which
ultimately led L'Oreal to go through a number of issues which impacted negatively on
performance level of L'Oreal.
Impacts that can be seen of misleading ads on performance of L'Oreal

• Research Methodology is used to evaluate results for a study. This will include steps,
processes, techniques used to get effective result for a study.
• Research Design
• Data Collection
Research Methodology

• With the help of above mentioned report, it can easily be said that a company is required
to develop an advertisement focusing on all the acts which has been made by government
so that no problem could be faced by company at the time of promoting products and
services.
Conclusion

• Schaltegger, S. and Wagner, M., 2017. Managing the business case for sustainability:
The integration of social, environmental and economic performance. Routledge.
• Stewart, B. and et. al., 2018. Sport management: principles and applications. Routledge.
• Walls, J. L., Berrone, P. and Phan, P. H., 2012. Corporate governance and environmental
performance: Is there really a link?. Strategic Management Journal. 33(8). pp.885-913.
• Wu, S. I. and Lu, C. L., 2012. The relationship between CRM, RM, and business
performance: A study of the hotel industry in Taiwan. International Journal of
Hospitality Management. 31(1). pp.276-285.
References

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