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Strategic Analysis of L Oreal in China

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Strategic Analysis of L Oreal in China
Table of Contents
EXECUTIVE SUMMARY
1. INTRODUCTION
1.1. Organization Overview
1.2. Mission
1.3. Goals
1.4. Current Strategy adopted by company
1.5. Previous Strategy adopted by company
1.6. Assignment Objectives
1.7. Assignment title
2. STRATEGIC ANALYSIS
2.1. External Environment Analysis
2.1.1. PESTEL Analysis
2.2. Industry Analysis
2.2.1. Porter’s Five Forces
2.2.2. Conclusion of Porter’s Five Forces
2.3. Key Factors of Success
2.4. Internal Environment Analysis
2.4.1. Core Competence
2.4.2. Synergy
2.4.3. Corporate Culture
2.4.4. SWOT Analysis
2.4.5. Conclusion of SWOT
2.5. Internal Resources Analysis
2.5.1. Tangible Resources
2.5.2. Intangible Resources
3. STRATEGY FORMULATION
3.1. Corporate Strategy
3.2. Business Strategy
4. STRATEGIC OPTIONS
4.1. Identify the Strategic Options available to Company
5. STRATEGIC CHOICES
5.1. Selected our strategic choice
6. IMPLEMENTATION
7. RECOMMENDATION
8. CONCLUSIONS

EXECUTIVE SUMMARY
The paper gives an overview of L’Oréal: its short history, the current and previous strategy adopted by the company, the strategy analysis of its external and internal environment, its strategy formulation and the possible options. The French company has strong financial base, 45 factories and 18 research facilities worldwide. It is a market leader in the cosmetics industry with 28 international brands, operating in over 130 countries. The company could use their existing research facilities and production capacities under the strong global brands name to implement the propose new strategy to grow their business revenue.

1. INTRODUCTION
With the growing competition in the cosmetics industry and the saturation of domestic markets, companies are forced to exploit international new markets by internationalize their operations for the intention of growing the business besides surviving (Souvik, 2006).
1.1. Organization Overview
L’Oréal, headquartered in Clichy, France is a global cosmetics manufacturing company. It offers a range of



Bibliography: chemlinked, 2014. China Outlines Cosmetics Animal Testing Policy. [Online] Available at: http://www.reach24h.com/en2/NewsAndEvents/Regulation_News/China_regulation/169_ChinaOutlinesCosmeticsAnimalTestingPolicy.html Economics, T., 2014. China GDP Growth Rate. [Online] Available at: http://www.tradingeconomics.com/china/gdp-growth Euromonitor, 2012. L 'Oreal Company Profile - SWOT Analysis, s.l.: Euromonitor International. Euromonitor, 2014. L 'Oreal China in Beauty and Personal Care (China), s.l.: Euromonitor International. L’Oréal, 2014. Annual Results 2013. [Online] Available at: http://www.loreal-finance.com/_docs/fichiers_contenu/0000000786/LOREAL_Results_2013_GB_10_02_2014.pdf L’Oréal, 2014. Key Figures. [Online] Available at: http://www.loreal.com/group/our-activities/key-figures.aspx Macmillan, H. &. T. M., 2000. Strategic Management. New York: Oxford University Press. Marketline, 2014. Make-Up Industry Profile: China, s.l.: s.n. Sharma, A., 2012. PESTLE Analysis of China. [Online] Available at: http://www.slideshare.net/iamankitsharma/china-pestl-analysis Souvik, D., 2006. Case Studies on Market Entry Strategies - Vol. 1. [Online] Available at: http://www.ibscdc.org/businesscasebookspdfs/Market%20Entry%20Strategies%20Vol.%201.pdf Statistics, W. P., 2014. Population of China 2014. [Online] Available at: http://www.worldpopulationstatistics.com/population-of-china-2014/ Yuksel, I., 2012. Developing a Multi-Criteria Decision Making Model for PESTEL Analysis. International Journal of Business and Management, Vol 7, No: 24, pp. pp52-53.

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