Management Report: Analyzing the Impact of Social Trends on L'Oreal

This report examines how social trends and the environment influence L'Oreal's operations. It begins with a profile of the company, highlighting its mission to lead in the beauty and skincare industry. The analysis section explores macro-environmental factors, with a focus on social trends, including consumer behavior, beliefs, values, and cultural impacts on purchasing decisions. The report suggests L'Oreal conduct market research, SWOT, and PESTLE analyses to manage these trends effectively. It emphasizes focusing on customer needs and expectations to adapt to changing social dynamics. The conclusion reinforces the significant impact of the social environment on L'Oreal's performance and competitiveness in the global market. The report references key academic sources to support its findings.

Running head: Management

Management
Table of Contents
Introduction.................................................................................................................................................3
Profile of the company................................................................................................................................3
Analysis.......................................................................................................................................................3
Social trends................................................................................................................................................3
Recommendations/Suggestions...................................................................................................................4
Conclusion...................................................................................................................................................4
References...................................................................................................................................................5
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Introduction
The main aim of this task is to explain that how social trends and environment may influence the
functioning and operations of the company. The success and growth of the organization is
dependent on the effective and dynamic business environment. It is stated that rules and policies
that are made by the companies often influence the operations and activities of the firm. The
environment puts ample of impacts on the growth and profitability of the firm. More detail of the
task has been detailed below.
Profile of the company
L’Oreal S.A is a French personal care company having headquartered is situated in Clichy, Hauts
De Seine. The company was established in 30 June 1909. It is one of the biggest cosmetic
companies in the world. It provides cosmetics and beauty products to the customers across the
world as it also focuses on the hair, skin care, make up and sun protection. The firm is well
known for its high quality of products and services (Lorealparisusa, 2018). The main mission of
the company is to become a global leader in beauty and skin care industry.
Analysis
It is stated that business operations and activities of the firm is influenced by ample of macro
environment factors including economic, legal, political, environment, social and technological
factors. These factors affect the business of the firm directly as well as indirectly. The business
environment is classified in there categories including micro environment, macro environment
and operational environment.
Social trends
The social environment factors could affect the business of the company. The social factors
include beliefs, values, culture, languages and attitudes of the people that have direct impact on
the sustainability of the organization. The social factors affect the buying behavior of the
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consumers as it also influences the demands and needs of the customers in the global market.
The decision making process is also affected by social trends. The social factors such as change
in the consumer’s demands and income level of consumers could have direct impact on L’Oreal
success and functionality. These are the factors that can increase and decline the demands and
requirements of the products.
Recommendations/Suggestions
There are some recommendations to control and manage the social factors that have been
detailed below.
 It is noted that L’Oreal should conduct marketing search and survey to analyze and
evaluate the marketing trends and choices of the customers.
 The organization should conduct SWOT analysis to analyze the opportunities and threats
of the market as it also helps in identifying the strengths and weaknesses of the company.
 Pestle analysis shall be done by the firm to analyze and evaluate the threats and
challenges of the market place. Furthermore, it also provides information about the socio-
cultural factors of the environment.
 L’Oreal should focus on the expectations, needs and wants of the customers to manage
and control on the social trends of the market.
Conclusion
From the above mentioned analysis, it is concluded that social trends and environment could
affect the performance and productivity of L’Oreal Company in a large extent. By focusing on
the social environment, the company can cope up and strive with competitors in the international
market.
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References
Benton, T. and Redclift, M., 2013. Social theory and the global environment. Routledge.
Carter, I., 2013. Human behavior in the social environment. AldineTransaction.
Loreal.2018. Our mission[Online], Available from
https://www.loreal.com/group/who-we-are/our-mission, [Accessed as on 27th May 2018].
Lorealparisusa.2018. About L’Oreal Paris[Online], Available from
https://www.lorealparisusa.com/about-loreal-paris.aspx, [Accessed as on 27th May 2018].
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