Business Analysis Of LOréal

Business Analysis Of LOrà ©al LOreal is the worlds largest French based cosmetic company which is running successfully and globally in Northern America, Western Europe, Latin America, Eastern Europe, Asia, Africa, Orient, Pacific and some other countries for the marketing business. Later, in Africa. They also offer the best for all the consumer beauty in many distribution channels like ( In Hair Salons, In Mass Market Outlets, In Perfumes and Department Stores, Through Pharmacies and Dermatologistics and In The Body Shop Stores as well). Cosmetics group is being able to focus in prices, for all the lifestyle, in many different regions globally. They are wondering that what is going to happen to their products from the same company which might take a huge turn over to complete or compitet against them. They also marked there 100 years would be defined with 100 different projects to give them a good support with their citizen projects and would involve the employers all over the world in a tangible and effective way. They also made a calculation reduction for their goals during (2005-2015). There Goals is to achieve 50% through the greenhouse gas emission 50% with the waste generations per finished products and 50% of water consumption per finished products. As LOreal is more considered into Making the World Beauty Universally for everyone in this whole world. INTRODUCTION LOreal company was invented in (1907) by Eugene Schueller the young French Chemist, who took a first move by creating the first hair dyes and started his sales by selling them to the French hairdressers. This move made him focus and concentrate on researching, starting for his investment to achieve the beauty for consumers and to look forward with the name LOreal. LOreal is a listed company, as Liliane Bettencourt and the Swiss food company Nestle are the founders as each of them are controlling 30% (percent) of the shares. In (1988-2000) the director and the chairman Lindsay Owen-Jones in (2006) started the company with the cosmetic marketing. Therefore today LOreal is the 1st Cosmetic group worldwide it has 27 International brands which is running globally in almost 130 Countries with à ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ã‚ ¬20.3 Billion Euros with more than 68,900 Employees. LOreal company has a setup of 5 key division and activities which is related with LOreal LUXE, CONSUMER Products, PROFESSIONAL Products, ACTIVE Cosmetics and The BODY SHOP. There are some products which contains the highest growth rates like LancÃÆ' ´me, Giorgio Armani, Kiehls, Kerastase, Maybelline New York and La Roche-Posay contains a range of exceptionally high quality products that are globally recognized all over the world. Therefore, this success accomplished under his leadership Sir Lindsay who have recognized to help the consumers individually by desiring them or getting them to be beautiful, his mission was to achieve to create the effective growth strategy for their brands in order for companies success. PESTEL Analysis It stands for Political, Economic, Social, Technological, Environmental and Legal analysis. It is a part of the external analysis when conducting a strategic analysis or doing market research and gives a certain overview of the different macro environmental factors that the company has to take into consideration. Political factors The political challenges is that LOreal must try to change all the political leadership styles in many different countries where they are operating it with. Or how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide. Also, LOreal is getting effected by the legislation for advertising (demerit goods or merit bads). LOreal is producing almost all the safe products which doesnt contain any harmful substance or any kind of effectiveness. Furthermore, governments have great influence on the health, education, and infrastructure of a nation. Economic factors include economic growth, interest rates, exchange rates and the inflation rate in all the countries which they are operating in. For example in (2004), LOreal was been affected by the continues weakness of the dollar and other currencies. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firms cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy. Social factors Because LOreals business in exactly at the centre of the people all over. It is closely involved in the life of the communities where they are located and it also includes the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a companys products and how that company operates. Technological factors It includes the ecological and environmental aspects, such as RD activity, automation, technology incentives and the rate of technological change. (Eugene Schelleur) who founded the scientist researches. LOreal has embraced the technological innovation in many ways. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation. Environmental factors The main factor includes weather, climate, and climate change, which is especially affects the industries such as tourism, farming, and insurance. Furthermore, growing awareness to climate change is affecting how companies operate and the products they offerit is both creating new markets and diminishing or destroying existing ones. Legal factors That include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products. PORTER FIVE FORCES It exists with the intensity of the following Rivalries, Threat of Substitutes, Threat of new competitors, Bargaining power of Suppliers, and Bargaining power of Customers. It is essential to understand the many different risk and rewards of an industry. Bargaining Power of Suppliers (Internal) Suppliers is the business that supply materials and other products into the industry .if suppliers have a high range of bargaining power then the company gets less attraction. It has a high power when many buyers and few dominators supply not differentiated. High valued products (Switching cost Substitute products are unavailable in the market place. For Example: Raw Materials Packaging Point of Sales Equipments So that mean LOreal has many suppliers in producing their products. So therefore, their bargaining power is low. Bargaining Power of Customers (Internal) When buyers are less sensitive to prices, prices can increase and buyers will still buy the product. Inelastic demand positively affects LOreal Paris. When there are large numbers of customers, no one customer tends to have bargaining leverage. Limited bargaining leverage helps LOreal Paris. Intensity of Existing Rivalry (External) Government policies and regulations can dictate the level of competition within the industry and will have a long term negative impact on this entity, which subtracts from the entity value. Threat of Substitutes (External) Threat for substitute products refer to produce in other industries. It exists when a product demand is affected by the price change of a substitute product there are number of chemicals in shampoo and other bath and body products which is frightening. As essentially, whatever toxics to put or use in your mouth toxics on your skin as well. Threat of New Competitors (External) The important entry is for the Barriers quality, pricing and marketing which can overcome with the barriers in many different ways. Also new firms sometimes is easy to enter the industries because of high-quality products, lower price and substantial marketing resources. LOreals main competitors are the cover girls, Avon, Revlon etc. The main Threats for LOreal is their products are luxuries which could be hurt by an economic downturn however they are able to be global and act locally. Also it may affect their distribution system. VIRIN Analysis It stands for Valuable, Rare, Inimitable and Non-substitutable LOreal corporate reputation is a type of retailing which enables a brand KIELHS and THE BODY SHOP which are the free standing store and developing. This is an invaluable way of getting the consumers by measuring the success of products and advertising them in a real time. In LOreal rare is an auto regenerating flower which is known as Haberlea Rhodopensis which is global anti ageing skincare that produces to protect and revitalise the skin. SWOT Analysis The word SWOT is an acronym meaning: S Strengths W Weakness O Opportunities T Threats The main act of SWOT analysis is that The importance of performing a SWOT analysis is that, no business should take a high risk strategy if there are any significant weaknesses foreseen. Performing a SWOT analysis may consider in, What are the weak/strong products, divisions, attitudes etc.? Are there any gaps/opportunities? Are we strong in the right way to exploit the opportunity? Considering the above facts a SWOT analysis has taken place to mark the right opportunity. Strengths: Generally high profit margins Well known worldwide High RD skills in Headquarters Product Innovation Consistent quality Workplace safety and environmental concern (image) Local product production and loyal customers Online growth Weakness: Bad communication High Failure rate of new cosmetics Low profit margins may be subject to seasonal variations such as (Valentines, Mothers Day and Christmas). Opportunities: Acquisitions natural product awareness. High quality products will become prevalent. Financial markets (raise money through debt, etc) Emerging new market segments and expansion abroad. Product and services expansion Asian, African and South American markets are growing. Threats: High competition from foreign brands. Low cost of switching may encourage consumers to trail new products. Economic downturn has a result in the reduction of spending on luxury goods. Conclusion Based on this analysis LOreal is trying to focus on the photonics to enhance the cosmetics colours, with the shop shelves where there are trying to show the world as the first cosmetic. LOreal sales margin in yearly bases is more than 4.6 billion individually as ever purchase of any consumers choice product like ( beauty salon ). This is the main reason why the consumer are satisfied and look forward to their products. Là ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢Oreal seems to give it competitive advantage over its rivals. They are a dominant player in the market and probably the leading seller of the beauty products. They also have many opportunities to open them and they should also take advantage of their strengths in the market they operate with. In short, the main fact behind their success is to reach out to the consumers with many different countries of the global by different cultural patterns and different income ranges. That is the main reason behind their success of brand LOreal.

The Beauty Industry in China :: essays research papers

Within 21 years, from 1983 to 2004, the sales volume of China's beauty businesses has increased 260 times, according to the country's first annual report on the beauty sector, recently released by Chinese economists. While the traditional beauty sector in China refers mainly to such services as hairdressing, massage and face-lifts by medical means, the modern beauty sector expands to cover the areas of beauty-related education and marketing, the production and research of cosmetics and related instruments, and even includes ornaments, packaging materials as well personal image consultation. With a 15 per cent annual growth, the beauty sector is turning into another huge money-maker after the boom in the real estate, auto, electronics and tourism sectors. Moreover, the revenue of the sector is expected to reach 176.2 billion yuan (US$21.3 billion) this year and double in the next five years. From the perspective of cosmetics, a similar track is visible: The annual average spending of Chinese on cosmetics, in the early 1980s, was about one yuan (12 US cents), the figure rose to five yuan (60 US cents) in the early 1990s, and 25 yuan (US$3) at the end of 2000. In big cities like Beijing and Shanghai, the annual average spending on cosmetics has reached 80-100 yuan (US$9.6-12), although still much lower than the figures for many developed countries, roughly US$35-70. China is currently home to 1.54 million beauty parlors and nearly 3,800 cosmetic companies, and almost 8 million people are actually working in beauty-related businesses, plus another 4 million whose jobs are connected to the sector. A survey of five major cities in China: Beijing, Shanghai, Guangzhou, Chengdu and Wuhan, shows that the most popular beauty items include SPAs, stone massages, Yoga, foot massages and nail treatments. Despite the huge advances witnessed over the past two decades, "huge gaps still exist between China's beauty sector and its counterparts in developed countries," said the vice-president of the Beauty and Cosmetics Association of Central China's Henan Province. "Compared with overseas beauty and cosmetics rivals, the domestic companies lack competitive advantages and are markedly overshadowed in such aspects as management, talent and brands," he said. Statistics from the annual report show only 11.72 per cent of the practitioners have a two-year college or higher educational background, while the practitioners who have a junior middle-school or an even lower education, and those who have a senior middle-school or secondary technical school education account for 38 per cent and 50.

Extracurricular Activities in School Essay

An ideal school gives to students the scope and the spirit of healthy competition — to excel at all levels. Class work and the home work given by teachers have their academic importance; in this also one who excels wins the praise and appreciation from the teachers. But academic distinctions alone do not fulfill all the purpose for which the school exists. A school is the workshop of life-building in which the raw material is the nascent young pupils. The Principal, the teachers are molders of this raw material into the ideal mold. For this process, many more activities, other than vroom ones are needed to fulfill the purpose. A young pupil might have the potential and the natural Lent to excel in games and sports and he needs to go to play field and the sports ground for the purpose. There can be students whose natural bent of mind is towards creative art and the art room is his field where he needs to be given the chance to exhibit his potential. Even little children of the nursery or the primary classes can draw such lines and make such figures which may amaze an on-looker and may be led to exclaim —’What an idea, how could he imagine this?’ One cannot and does not know how much talent in what direction lies in a child’s brain. This can only come out when he or she is given that opportunity. The school has to provide such chances and explore out the pearls from the sea-depths of the young mind. Art competitions of different level of students are activities that need to be arranged and the excellence in that to be rewarded and encouraged. There are boys and girls who have a knack of oration. They have in them an amount of self-confidence that they can face spectators and audience. Elocution contests and debates offer them the chance to exhibit this latent talent of theirs. Such inter-class or inter-school competitions should regularly be held which would further them to become good debaters — who knows, they may one day become parliamentarians and what they have gained during their school days may place them in good stead in that field. Cultural shows; dramatics performances, mono- acting’s are events which schools generally hold and it so necessary for schools to hold them. That is also at of total education. Taking part in such events gives children a sense of self-confidence and embellishes their accomplishments which they possess or can even develop. Anything, any activity which helps in the development of the total personality of young boy or girl is a part of  education and competitions, the effort to excel from others, is an incentive which must be provided to a young mind. Such an opportunity is offered to them only through such cultural and extra-curricular activities Opening up of personality; developing the latent talents- promotion of the intellectual effort and an opportunity of healthy competition — all these are factors which an educational institution should always encourage — only when it does this, it fulfills its role in the total education of the young.

Macroeconomics Project - 6761 Words

MBA 6410 Project Part 1 The Financial Accelerator and the Flight to Quality One puzzle that has long plagued business cycle analysis is the existence of large fluctuations in aggregate economic activity that arise from what seem to be small shocks. This anomaly is what motivated the research into the financial accelerator. The financial accelerator is a possible explanation for these disproportional fluctuations. Changes in the credit market amplify and spread the initial shocks. This is explanation fits particularly well when firms and households are overextended or highly leveraged. This credit-market amplification of economic shocks is the result of reduced access to borrowed funds. Using the principal-agent approach to credit†¦show more content†¦The flight to quality also affects the real economy. Investment is very sensitive to cash flow for firms that are most likely to be credit constrained. Studies have also shown that, for firms subject to credit-market constraints, employment, RD spending, and inventory investment are affected by an economic downturn. The primary principle of the financial accelerator suggests two main ideas. First, borrowers facing relatively high agency costs in credit markets will bear the brunt of economic downturns (flight to quality). And second, reduced spending, production, and investment by borrowers with high agency costs will worsen the effects of recessionary shocks. The Financial Accelerator in a Quantitative Business Cycle Framework Economic authors as far back as Fisher and Keynes have posited that credit-market conditions play a central role in the transmission of cyclical economic fluctuations. According to this theory, deteriorating credit-market conditions – marked by increases in insolvency and bankruptcy, rising debt burdens, falling asset prices, and bank failures – are not merely a reflection of the real economy. 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