L Oreal Company Case Study

According to David (2013), IFE matrix implies Internal Factor Evaluation Matrix which is a famous strategic management device for inspecting or assessing major internal strengths and internal weakness in functional areas of an organization or a business. Apart from that, it also provides a basis for identifying and evaluating relationships among those areas.

The purpose of identifying the industries inside environment is to diagnose an organization’s internal strengths and weaknesses. The factors which should be considered in this regard include: 1- management and its structure, 2- sales and marketing, 3- finance and accounting, 4- research and development, 5- competitive forces, and 6- manpower. Table (1) demonstrates the L’Oreal Company’s strengths and weaknesses for evaluation. They were found after summarizing the questionnaires and then weighted during discussion sessions. As can be seen, the company’s appropriate

L’Oreal Company can give more focus, come out with new strategy and plan and make some improvements on their weakness. In order to survive in market competition, L’Oreal must do the action and do not hesitate to change and solve the problem. By doing these, L’Oreal Company can exceed customer needs and wants and that will lead to higher profit and more development of company. When L’Oreal Company uses this type of strategy they can be more specific in recognizing and identifying their problem. For instance, for L’Oreal main weak point that score 0.12, it shows that there is some issues on management of L’Oreal company where L’Oreal Company use decentralized structure and as they are many subdivision make them hard to control and operate. Thus, company level productions become more slow and inefficient. In simple, when L’Oreal Company had identified their weakness on the management, they can restructure the organization and encounter the