Business Strategy


Business strategy refers to the decisions or course of action undertaken by an enterprise in order to achieve their long term goals and objectives. Such actions and strategies are aimed at grabbing the attention of customers, gaining strategic edge over rivals, strengthening business performance and attaining high stake in market. The mission and vision of an enterprise serve as the basis upon which the strategy and planning of business is done (Brewster, 2017). The present report is based upon L`oreal which is a French brand dealing in personal care products, headquartered in Clichy, France. It includes PESTLE and SWOT analysis to gain knowledge of organisational capabilities. Also, Porter Five Force analysis is done to gain an insight into firm's competitive environment. Besides this, evaluation of various types of strategic directions available to company is included. Lastly, recommendations have been provided for growth strategies along with a strategic management plan.

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PESTLE and SWOT analysis for organization's capabilities

Strategic planning refers to the process of defining the future plans of an entity which are necessary for accomplishing organisational goals and objectives. It comprises of sequence of steps which are essential for an enterprise to align the behaviour and performance of overall organisation towards the vision and long term goals of company. Basically, it is a long term plan which is made for a time period of 3-5 years in a strategic manner so as to gain an edge in market and enhance the profitability and growth of business. The primary objective here is to provide a relevant and adequate guidance to organisational leaders in order to assist them in making decisions associated with operations, workforce, utilisation of resources and stakeholders. This helps the entity in ensuring that the functioning of company is in accordance with the desired results.

L'oreal is one of leading brands in cosmetics, hair, make-up and skin care products. Being a company with outlets spread across the globe, it is highly significant that strategic planning is done by the enterprise in order to gain knowledge of the internal and external business environment (Cavusgil and et. al., 2014). In today's world, competition is rising at a rapid pace which enhances the scope as well as need for L`oreal to come up with effective business strategies and plans in order to maintain the position and goodwill of organisation in marketplace. New companies are constantly entering into the personal care and cosmetics industry in UK which further raises the standards of this sector. Thus, this enterprise takes into account the internal as well as external factors that affect the operations and functioning of business in the long run. myssignmenthelp Australia

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