BU470 Assignment 04 NEW
The questions in Part A refer to the material discussed in Lesson 1 of this course. Respond to the following.
- Describe the strategic management process. What does it mean to manage strategically?
- Apply what you have learned in this lesson by reading the brief below and answer the questions that follow.
As the world’s largest beauty products company, L’Oréal SA creates cosmetics, perfume, and hair and skin care items. However, as the global economy continued down a fluctuating and uncertain path, the French company found itself with stagnating sales. According to company officials, one contributing factor was higher raw materials costs that have hit many companies, including L’Oréal, which uses oil in its products and packaging. However, weak consumer demand and currency fluctuations played a major role in the sales slowdown. In an effort to reduce its dependence on mature consumer markets such as Europe and the United States, L’Oréal’s strategy is to recruit millions of new consumers in emerging markets from Africa to Asia.
Sources: Based on C. Passariello, “Heiress Loses L’Oréal Family Fight,” Wall Street Journal, October 18, 2011, p. B8; C. Passariello and NoémieBisserbe, “Uncertainty Colors L’Oréal,” Wall Street Journal, August 31, 2011, p. B4; and C. Passariello, “Sales Stagnate at L’Oréal,” Wall Street Journal, July 13, 2011, p. B4.
a. What do you think of L’Oréal’s strategies in light of today’s environment?
b. How might strategic management be useful?
The questions in Part B refer to the material discussed in Lesson 2 of this course. Respond to the following.
1. Describe the three major driving forces of the business environment.
2. Explain the four major implications of these driving forces.
3. Discuss the three critical factors for succeeding in the business environment.
4. Apply what you have learned in this lesson by reading the brief below and answer the questions that follow.