Strategic Review of LOreal External Environment

Strategic Review of LOreal External Environment This essay firstly introduce LOreal and their main operations in recent years, and then emphasize to analysis their external environment, such as P.E.S.T analysis, five forces analysis, sector level analysis and product life cycles analysis. And in the end analysis the opportunities and threats which the company faces over next 3-5 years 2. Company and Product Overview The LOREAL Group is the worlds largest cosmetics and beauty company and it headquartered in the Paris suburb of Clichy, France. LOREAL has developed activities in the field of cosmetics, concentrating on hair color, skin care, sun protection, make-up, perfumes and hair care. LOREAL is active in the dermatological and pharmaceutical fields. LOREAL is also the top nanotechnology patent-holder in the United States. à ¯Ã‚ ¼Ã‹â€ http://en.wikipedia.org/wiki/L%E2%80%99Orealà ¯Ã‚ ¼Ã¢â‚¬ ° It operates in over 130 countries. It markets 18 brands through two divisions, cosmetics and dermatology. The cosmetics division of LOREAL has four segments: professional products, consumer products, luxury products and active cosmetics. The dermatology segment includes dermatological and pharmaceutical activities of the company. LOREAL got its start in the hair-color business, but the company soon branched out into other cleansing and beauty products. LOREAL now markets over 500 brands and many thousands of individual products in all sectors of the beauty business: hair color, permanents, styling aids, body and skin care, cleansers and fragrances. They are found in all distribution channels, from hair salons and perfumeries to hyper and supermarkets, health/beauty outlets, pharmacies and direct mail. (http://en.wikipedia.org/wiki/L%27Oreal) 3. External environmental analysis 3.1 P.E.S.T Analysis PEST analysis stands for Political, Economic, Social, and Technological analysis and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. 3.1.1 Political and Legal Forces The political challenge is that LOreal should conform to all the different government leadership styles in various countries it operates within. LOreal faced a decline in the dermatology branch led by its Galderma brand due to new legislations governing drugs (Euromonitor, 2005). The EU law affects LOreal. LOreal is restricted in their use of certain kinds of chemicals, such as Phthalates which is carcinogenic (The Rules Governing Cosmetic Products in the European Union). LOreal is obligated to produce safe products that do not contain any harmful substances. Also, legislation for advertising is also affecting LOreal. LOreal has to follow the rules set by Advertising Standards Authority. For example, advertisements cannot be misleading that over-exaggerating the functions of a product (The Control of Misleading Advertisements Regulations 1988). Recent policy developments in the European Union (EU), that is the safety of cosmetics is directed standards. Seventh Amendment cosmetics directive finally approved by the European Parliament and the Council of the European Union, It is expected an immediate ban on animal testing products and a total ban on animal testing of cosmetics raw materials, no later than six years to implement the directive. (Anonymous,http://www.jrc.ec.europa.eu/more_information/download/ecvam2.pdfà ¯Ã‚ ¼Ã¢â‚¬ ° In addition, It needs an immediate ban on new cosmetics sales (of finished products and raw materials) and the experimental animal alternative methods have been tested in ecvam and accept the existence of the ban on the sale of cosmetics, on human health affected to a certain extent. It is thought that LOreal should fully understand these policies, and to avoid a violation of these policies and regulations, strictly control chemical products and related banned substances content 3.1.2 Economic Environment Analysis LOreal should adapt to all the different economic environments and problems in all countries it operates in. For example in 2004, LOreal was affected by the continued weakness of the dollar and other currencies. Economic crisis is a bad news for LOreal, The world GDP is fall sharply from 2007 to 2009, The economic downturn will be a great chanllege for the development of LOreal Although the growth last year is below that in 2008 due to the financial crisis, it is fortunate that it still met the target, said Paolo Gasparrini, president of LOreal China, at the 6th China Young Women in Science Fellowship Award Ceremony sponsored by LOreal in Beijing Tuesday. In the first three quarters of 2009, LOreals total gross sales increased 0.7 percent compared to last year, of which growth in Asia, where the Chinese market is a large contributor, totaled 21.2 percent, he said. (http://msn.huanqiu.com/bizchina/2010-01/700911.html) 3.1.3 Social Environment Analysis The culture of countries in which a business operates can be of particular importance. The culture of a country consists of the values, attitudes and beliefs of its people. (David Campbell, George Stonehouse and Bill Houston: 119). For example, with modern standard of living continues to improve and the level education get higher and higher, the social increasingly recognize the external image, and people are increasingly focusing on the image appearance, the demand of quality and effectiveness of cosmetic and related skin care products become higher and higher. 3.14 Technological Environment Analysis Changes in technology affect the products available to consumers and business, the quality of the products and their functionality. (David Campbell, George Stonehouse and Bill Houston. 124). Todays society is constantly changing, technology updates means that the product updates, cosmetic update speed, short product life cycles, a cosmetics market, we should immediately prepare for the next period. As the technology develops, people can be more channels to purchase products, business and customer contacts more and more ordinary. So technology is the enterprise competitive advantage. Along with the development of science and technologyà ¯Ã‚ ¼Ã…’ the latest scientific and technological achievements and advanced technologies rapidly apply in cosmetics industries, particularly biotechnology, nanometer technology, information technology, electronics technology, which provide a lot of opportunities for the development of cosmetics industry. LOreal has strong research and development (RD) capability, According to new technological development, the company registered 529 patents related to cosmetics and dermatology in 2005. (http://dbic.datamonitor.com/companies/company ) 3.2 Five Forces Analysis According to Porters five forces which determine the nature of competition within an industry. The five forces are: The threat of new entrants to the industry; The threat of substitute products; The power of buyers or customers; The power of suppliers; (to business in the industry) Rivalry among businesses in the industry. Force 1: It is thought that because cosmetic industry needs products quality inspection for safety, and large investments which including technology and a great deal of capital, it is difficult to enter the cosmetic industry. However, at present, there is few entrants can threat LOREAL. Force 2: By reason of many personal cosmetics may contain a series of potentially toxic compounds, including artificial membrane. One research found cosmetics containing some spices and xylene which easily lead to the abortion of pregnant women. Many facial cream are also contain compounds which similar with the role of female hormones. So the threat of substitutes is using pure natural products. Force 3: According to a survey commissioned by New Woman magazine and published in April 2006, the average woman is estimated to spend a staggering  £182,528 on beauty products between the ages of 18 and 80. 5,000 women were questioned, (Anonymous, http://www.keynote.co.uk/kn2k1) eight in ten of whom said they wore make-up every day and almost half of whom admitted that they would not leave the house without it. So the power of buyers is very strong, which is very favorable to LOREAL. Force 4: LOREAL products were sold in many large department stores or supermarkets. The suppliers are all have strong bargaining power. So LOrà ©al should develop a close partnership with suppliers, in order to sell products better. Force 5: The global cosmetics business is intensely competitive, with a few big corporations and a large number of small companies vying for market share. The company competes against global companies such as Avon, Està ©e Lauder, Procter Gamble, Revlon, and a number of smaller companies as well. Of late, those bigger companies sharpened their focus on the market of beauty and personal care products. Increased competition may lead LOrà ©al to price reductions, reduced profit margins and loss of market share. 3.3 Strategic Space/Group Analysis A business can rarely confine its analysis to the level of the industry and markets in which it operates. It must also pay particular attention to its closest competitors who are known as its strategic group. PRICE BRANDING INTENSITY LOW HIGH LOW HIGH Està ©e Lauder Avon Revlon P G LOrà ©al From the strategy groups above, it is obviously that LOrà ©al has a high branding intensity and medium price, therefore compare with other competitor LOrà ©al has competitive advantage. 3.4 Life Cycles Analysis Generally speaking, cosmetic products are in the maturity period of the product life cycle. In this period users tend to saturation and users repeat purchase reliance. In competitive condition competitor fight to maintain market share, but it is difficulty in gaining market share. All competitors emphasis on low cost (efficiency). LOrà ©al should pay attention to the quality of products and improve the packing, in order to keep old customers and attract new customers. 4. Opportunity and threat analysis over next 3-5 years 4.1 Opportunities It is thought that LOrà ©al faces the following opportunities and threats, these main changes will influence the companys planning over the next 3-5years. First of all, it is thought that the opportunity of LOREAL is aging population. The most developed countries are already highly aging society, aged 60 or older in the proportion of the population is above 15%, and for example the percentage of the US population who are over 55 years is forecast to increase from 20% in 2007 to 33% in 2027. (Anonymous, http://dbic.datamonitor.com/companies/company ) This is likely to increase demand for anti-aging products. LOREAL successfully launched many anti-aging products in 2007, including RevitaLift Double Lifting, Collagen Filler, and Lancomes Renergie Morpholift. As aging baby boomers attempt to preserve their looks through anti-aging products, LOREAL will not be short of opportunities. The second opportunity is proposed acquisition of Body Shop. As the rapidly growing of personal care products market, demand for the products is rising as consumers shift to products which are safer and more eco-friendly. The natural personal care products market is expected to grow at an annual rate of 12% a year, to reach an estimated $1 billion in 2010. (Anonymous, http://dbic.datamonitor.com/companies/company) The proposed acquisition of the UK-based Body Shop International, a company founded by Anita Roddick that uses primarily organically-derived ingredients, would allow LOREAL to capitalize on the growing demand for natural personal care products. Thirdly, the growth of India and China. LOREAL could offset weak performance in Western Europe by expanding its presence in fast-growing markets such as India and China. The company already has a presence in these two countries, whose economies are forecasted to grow at a high rate in the coming years. In 2007, the companys sales in China grew by 27% while sales in India expanded by 46%. (Anonymous,http://dbic.datamonitor.com/companies/company)Further expansion in China and India may help LOREAL overcome sluggish growth in Western Europe. 4.2 Threats Howeverà ¯Ã‚ ¼Ã…’it is thought that there are three main threats which will influence LOREAL. Firstly, Economic crisis is a bad news for LOreal, The economic downturn will be a great chanllege for the development of LOreal The secondly, the competition is intense in the market. The global cosmetics business is intensely competitive, with a few big corporations and a large number of small companies vying for market share. The company competes against global companies such as Revlon, Estee Lauder and Procter Gamble, (Anonymous, http://dbic.datamonitor.com/companies/company ) in addition to a number of smaller companies. Recently, some big companies have sharpened their focus on beauty and personal care products market, as well as emerging markets. Increased competition could result in price reductions, reduced profit margins and loss of market share. The third one are new regulations. Several consumer protection groups are voicing concerns over the presence of harmful chemical ingredients in cosmetic products. A recent study showed that about one-third of cosmetic products contain known carcinogens. (http://dbic.datamonitor.com/companies/company ) Due to increasing public pressure, in US the Food and Drug Administration (FDA) is expected to impose stringent quality norms on cosmetic products. (Anonymous, http://dbic.datamonitor.com/companies/company ) New regulations may delay the launch of new products and result in higher product development expenditure, not to mention the possible effects of the adverse publicity generated by the new regulations. The last one is counterfeiting. The counterfeiting of popular cosmetic products has increased in recent years. Increasing sales of counterfeit products negatively impact the companys sale. Low quality counterfeits also reduce consumer confidence in the products of a company. More important, the companys key differentiator, exclusivity, is damaged by counterfeiting operations. Widespread counterfeits reduce the exclusiveness of the companys brands. Counterfeit products not only deprive the company of revenues, but also dilute the reputation of the brand. 5. Conclusion According the discuss above, it is conclusion that among LOrà ©als external environment, it is thought that the competition of cosmetic and fragrance market become more and more drastic, especially faced with strong competitors, and it is thought that there are opportunities and threats to LOrà ©al, the company should take advantage of these opportunities and to etain its status as the leader of cosmetic and fragrance industry. Word :1779

Poetry Questions Essay

In Ralph Waldo Emerson’s work, â€Å"Nature†, the speaker forces the reader to analyze their core beliefs and values. The speaker asks, â€Å"why should we grope among the dry bones of the past, or put the living generation into masquerade out of its faded wardrobe? The sun shines today also†. By asking this simple question, the speaker is essentially asking the audience why they should accept the beliefs and traditions handed down to them through their ancestors instead of creating their own. This question is furthered when the speaker states, â€Å"There are new lands, new men, new thoughts. Let us demand our own works and laws and worship†. The speaker is making a call to his readers for a change in society. Rather than blindly accept the laws and beliefs from long gone ancestors, the speaker is challenging his audience to be independent thinkers, and follow their own path of discovery, rather than continue to be force fed hundred year old traditions. In the poem, â€Å"Apparently With No Surprise†, the speaker is admiring a flower and suddenly it dies. Through the language in the poem, it seems as though the speaker is questioning whether God oversees life and death within nature. In this poem, nature is portrayed as a brutal assassin, taking the life from an innocent and blooming flower. The Frost is named the murderer, but the speaker says that it has done so in â€Å"accidental power† while at play. The speaker proceeds to question whether there is a God that controls nature’s violent tendancies. In the last few lines of the poem, the speaker answers her own questions, by noting that God is approving of nature’s order, which is reflected in the line that reads, â€Å"The Sun proceeds unmoved to measure off another Day for an Approving God†. The tone of the poem suggests that the speaker things that God is just as malevolent as nature for allowing nature to take its course. 3. The most important characteristic of the landscape in â€Å"Desert Places† is the snow. Frost notes that the ground is â€Å"almost covered smooth in snow†, which gives the reader a sense of coldness and expansive nothingness in an environment that is typically warm and inviting. It seems as though Frost is comparing this desert to himself. By stating that the desert is a â€Å"blanker whiteness of benighted snow with no expression†, Frost gives the reader a sense of emptiness that not only is a characteristic of the snow, but also of how empty and emotionless he feels. Frost ties together the desert and his own emotions in the last few lines of the poem. Frost ties the description of a vast and barren desert with the feelings of emptiness and lack of emotion that he feels about his own life. By ending the poem with the line, â€Å"to scare myself with my own desert places†, Frost displays his fear at his absolute lack of emotion and emptiness. â€Å"Kitchenette Building† uses many terms to explain how life in this urban society feels. Gwendolyn Brooks uses the term â€Å"involuntary plan† to describe the situation that the black speaker is currently in. The â€Å"involuntary plan† describes shady real estate deals that created small, cramped apartments for black tenants from what were previously spacious apartments in white neighborhoods. The speaker is showing the reader how the slum lords have exploited the black tenants in this urban society. The speaker makes reference to the â€Å"garbage ripening in the hall†, which is another way in which the exploitation of the black tenant is made apparent – the simple maintenance of disposing of the trash is ignored by these shady landlords. The speaker also notes that â€Å"we wonder. But not well! Not for a minute!†, which indicates that she doesn’t have the time or the energy to meditate on the problem of exploitation, or any wa y to attempt to change it. As soon as the fifth member of the family emerges from the bathroom, her thoughts shift to more practical things, such as a warm bath. 5. In Allen Ginsberg’s work, â€Å"Howl†, he makes reference to Moloch in an attempt to criticize the society of 1950s America. Moloch refers to a biblical idol to which sacrifices of children were brought. By comparing 1950s American society to this bloodthirsty idol, Ginsberg is painting a clear picture of his view of the era that America had entered into at that time. Ginsberg paints prisons, apartments, and industries as all that is evil with society with the line that reads, â€Å"Moloch! Moloch! Robot apartments! invisible suburbs! skeleton treasuries! blind capitals! Demonic industries!†   Ginsberg is making the point that with the new industrialization of society, the forgotten artists, musicians, and creative thoughts are forgotten, and even given a negative connotation. Ginsberg makes it clear that he believes that the industry with their factories and warehouses only create more of a diversion from the artistic world of colors and music. This point is made though the line that reads, â€Å"Moloch whose factories dream and croak in the fog! Moloch whose smokestacks and antennae crown the cities!† As an artist himself, Ginsberg is forcing society to recognize the apparent evils of the industrialization of his society.6. In Sarah Orne Jewett’s work, â€Å"A White Heron†, the main character, Sylvia is a young girl, who has a love for animals. She is befriended by a hunter, who is tracking a white heron that he intends to kill and add to his collection of stuffed birds. Sylvia perches in a giant pine tree very early in the morning, searching for the heron to make her new friend happy. Sylvia finds the bird nested on a branch not far from where she sits. The bird flies away and Sylvia runs home to tell the hunter where the bird is. Upon returning to her house, however, she has a change of heart and realizes that she cannot tell the hunter where the heron has gone. Though Sylvia obviously has a crush on the hunter, she allows him to go on his way without giving him the location of the heron. Though she is only a child, Sylvia has made a very adult-like choice by electing to save the life of the white heron, and not allowing herself to be coerced into confessing the bird’s whereabouts to the attractive man. Even though the hunter offered Sylvia a $10.00 reward for helping him find the heron, she still chooses to keep silent about the heron’s location. Sylvia realizes that she values life more than any reward she could receive. In William Cullen Bryant’s work, â€Å"To A Waterfowl†, the speaker views a bird in flight and seems to feel an almost spiritual connection with the bird. The speaker admires the bird’s ability to continue on its way, day or night, even with the threat of being hunted by man. The speaker says that, â€Å"All day thy wings have fann’d at that far height, the cold thin atmosphere: Yet stoop not, weary, to the welcome land, though the dark night is near†. In this line, that speaker is almost admiring the bird’s dedication to continuing on its path until it reaches its destination, without stopping because it is tired. This gives the speaker a sense of pushing forward even when things seem hard or one is weary. The speaker watches the bird and imagines it reaching its destination and finding a â€Å"summer home, and rest†, which is the bird’s reward for its dedication. The bird disappears into the sky, and the speaker feels that the bird has been cared for by God. This thought makes the speaker realize that if God can care and provide for a bird, God can certainly guide the path of the speaker.

The Basics of Candide Essay Topics

The Basics of Candide Essay Topics Pay attention that the subject of your paper is supposed to be exhausted enough to demonstrate the readers what they are likely to meet inside. Whether it's necessary to make an essay on the most recent scientific findings in your area of study or over your interpretation of a bit of classic literature, you must have the proper facts and data along with the ability to write content that engages and commands attention. Besides general knowledge you have regarding the subject, you won't mind dedicating some opportunity to research, writing procedure, and other aspects essential for the high-quality essay. In order in order to construct and pursue the interest of the graduate essay vividly, it's also wise to select a topic with source materials readily offered. Your very first idea is nearly always very likely to be too significant. The matter may have scientific relevance, or it may be technically sound or could be related to certain social aspects of daily life. Opt for a distinctive topic that others may not think of, and whatever you select, make certain you know a lot about it! When you're picking your topic, bear in mind that it's much simpler to write about something which you presently have interest ineven in case you don't know a great deal about it. Nobody really wishes to compose an essay. The essay isn't the simplest task to master. 1 important thing which you should do when writing your essay is to allow it to be personal. Narrative essay topics Narrative essay is somewhat different from different types. Whatever college essay topic you select or are assigned, the trick is to compose a very good stand-out essay. Knowing the Essay Topics The principal focus of the way to compose a research essay is essentially the issue to be researched upon. Quite frequently, the very best topic is one which you truly care about, but you also will need to get well prepared to research it. Whether you are searching for good narrative essay topics or aren't certain how to decide on the most appropriate one from the list of good descriptive essay topics, make sure to examine our topics' selection as we guarantee you will definitely find something to meet your requirements. You always intuitively understand as soon as an intriguing essay idea is really the ideal idea for you. In circumstances when you get to pick the topic for an argumentative essay, you need to be wise and locate a title that will intrigue a reader. Once you have decided on a topic that appeals to you, you should concentrate on essay writing. It's important to select debatable argumentative essay topics as you need opposing points you may counter to your own points. An argumentative essay requires you to choose a topic and have a position on it. It is a particular type of academic writing. Argumentative essay topics are so important since they are debatableand it's critical to at all times be critically contemplating the world around us. Moral argumentative essay topics are a few of the simplest to get carried away with. Candide Essay Topics Help! The college essay is among the most crucial elements of your college application. SATs ought to be eliminated. Banking essays can be real fun to play with if you've got an exhaustive understanding about the discipline and have keen interest in writing, so should you believe that you cannot write decent banking essays than again you're mistaken. Colleges are not searching for perfect folks.

Outline Of A Advanced Healthcare Directive Essay - 705 Words

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