Sanofi Aventis Swot Analysis

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November 2012

The Business Environment

“ Sanofi-Aventis, between innovation and acquisition”

Wafi Djebbar

Table of Contents

Executive Summary3
1. Introduction3
2.Sanofi Description and Background......…………………………………………………………………………………….......4
3. Sanofi Business Environment4
3.1. Political Factors4
3.2. Economic Factors5
3.3. Social Factors7
3.4. Technological Factors7
3.5. Environmental Factors8
3.6. Legal Factors……………………………………………………………………………………………………………………………8 4. SWOT ANALYSIS……………………………………………………………………………………………………………………………9
5.Strategy 9
6. Recommendations9
7. References10

Executive summary
To conceive a business we must first of all understand its environment which depends on factors that are used in the PESTEL analysis.Companies are out of the control of the environment. Those factors are likely to be an opportunity or a risk of market. Consequently, that’s why a business must understand how the environment exercise an influence. As a part of their strategy, companies use a tool “PESTEL” in order to analyse the factors present in the environment. In this paper , an analysis will be conducted on Sanofi to understand the strategic decisions made by the company in the last 2 years. Introduction

As it was mentioned in the introduction, the company cannot be conceived as an isolated entity. The role of the environment is crucial in business activity and this insofar as it determines the strategy development and therefore even for survival. Business environment distinguish two distinct categories : -The Micro-environment: It is composed of actors in the immediate environment of business: competitors ;suppliers, intermediaries, customers; condition and various types of publics. The ultimate goal of any enterprise is to sell, which is why it must satisfy a set of needs perceived by the consumer. It must develop a network of relationships with suppliers and intermediaries which give access to customers. In order to understand the business environment companies resort to various analyses to state precise locations of its market opportunities and threats. It allows to analyse its internal strengths and weaknesses (SWOT analysis) -The Macro-environment : it consists of external factors that may be either political , composed of external conditions and for an organization: Government regulations, The political climate, lobbies groups ,which may set limits on the conduct of business and individuals in a society; economic, it consists of conditions external to an organization relating to: goods production (natural resources, labour, capital), the movement of capital (money, credit, exchange), the allocation of resources (employment, power purchase), consumer products (lifestyles, purchase behaviours), collective wealth, which are likely to affect the marketing of products ; social: the evolution of the consumer lifestyle and social values​​, tastes and needs ; the technological environment is subject to constant monitoring. Innovation has become an essential component of the competitiveness of the business and we can even say, to a certain extent, that innovation is the most "cruel" competition insofar as it can lead to the disappearance some companies. In this area many changes can affect the business both manufacturing (implementation of new processes) than on management (development of management information systems in all areas) ;environment include the weather and...
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