Using your current work organization (or an organization of interest) and a second organization in the same industry as the subject matter, research the elements of business, compare and contrast the two selected organizations, and prepare an APA formatted paper that:
Analyzes the basic legal, social, and economic environment in which the organizations operate
Analyzes the managerial, operational, and financial issues impacting the organizations including:
Company Culture and Performance
Strategic Decisions Making
Use of SWOT Tool
Operations Strategy Framework
Assesses how the overall management teams perform in terms of the four functions of management.
Identifies and explains the strong points of the managers.
Identifies and explains areas in which improvements are needed.
Be sure to use a minimum of 5 external sources to support your analysis.
Avon versus L’Oréal Business Environments
Avon is a leading cosmetic company based in the United States. The company mainly deals in lotions, body creams, perfumes, makeup among others. Being an international company, there are many environmental factors that affect how the business operates and the management. This is a review of the business environment at Avon and management practices. I will also be reviewing L’Oréal, a top company based in France that is in the same business as Avon.
In a bid to increase the company’s wealth and for economic growth, Avon has expanded their service coverage to multiple companies. This has greatly increased the company’s financial independence. However, with the political differences existing between these countries, the corporate strategy at Avon has been greatly influenced. Thus the company has had to keep making legal adjustments for each country that it ventures in. Economically, Avon has been greatly affected by the currency fluctuations rates from country to country. This has required the company to have representatives all over the countries where it is based in a bid to create a free and active market for their cosmetics. Socially, the buying power and preferences of the consumers has been varying over time. Countries in varying environments tend to vouch for their preferred cosmetics, which keeps Avon at its toes in a bid to match up.
As an international company, the economic element is a vital aspect of L’Oréal and it affecting the overall functioning of the company. Since the economy tends to grow and shrink over time, it is the responsibility of managers to predict how the economy will perform in the future. One way that the managers at L’Oréal have done a good job at predicting future economic performance is seen in the company’s purchase of the China-based Magic Holding International Ltd, as the Chinese economy is set to keep growing over the years. This step is also set to help increase the company’s customer base. L’Oréal has also committed to re...