Strategic Management Report: L'Occitane En Provence

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Strategic Management Report

Assessment Task 3

Executive summary

This report has been made in order to have a better understanding of L’Occitane en Provence Company. In 1976, Olivier Baussan created the company L'Occitane. The company manufactures well-being and beauty products and markets them worldwide through a network of 950 shops.

The first part of this report will be the overview of the company. This part will introduce the company, with the size of the company, the performance, the type of products sold and finally the different locations of the firm in the world.

The next part will provide the vision, mission, goals and objectives of the Occitane en Provence.
Then the life cycle of the firm’s industry will be seen.
The Political, Legal, Economic, Social, Cultural, Technological, Demographic data…of the company will be analysed to see if any changes in the macro environment of The Occitane will have an impact on competitiveness or not.

The Occitane en Provence’s competitors will be presented by a strategic group map, of the most relevant industry, like Body Shop.
The SWOT analysis will reveal if there are lot of barriers or not, that is to say if Occitane en Provence is in danger in front of possible competitors.
As a contribution to the analysis, further strategic management framework will be provided for an in-depth competitiveness analysis.
Finally, recommendations will be made according to the strategy analysed, to know what L’Occitane should be doing to be more efficient on the market.

Table of contents
Executive summary2
Purpose, limitations, Scope5
I. Overview of the Occitane en Provence6
1. Who is the Occitane en provence6
2. Size of the company6
3. Performance8
4. Types of products9
* Packaging10
5. Location11
II. Firm’s vision, mission, goals and objectives12 1. Vision12
2. Mission12
3. Goals12
4. Objectives12
III. Stages of the life’s cycle industries13
IV. The Macro environmental analysis14
1. Sociaux cultural factors14
2. Demographics factors15
3. General economic condition16
4. Technological factors17
5. Political trends and legal issues17
6. Environmental factors18
V. Competitions18
1. Mains competitors18
2. Strategy group map20
I. SWOT analysis and TOWS matrix21
1. SWOT analysis21
2. TOWS matrix22
VII. Strategy management framework23
1. Five force’s model23
VIII. Recommendations24

List of references26

Olivier Baussan, an environmental activist fascinated by Provence and its scents, created "l'Occitane"in 1976. Mr Baussan engages in the production of natural shampoos, bubble baths and essential oils. Year after year he declines and creates different products for the body, products which sublimate our body and make us feel free in our mind. But also candles, perfumes… All of L’Occitane products are made in the respect of the environment, and with natural plants.

In 1980, the first store opens at Volx, a small town in Haute-Provence, in France. L'Occitane has built a plant in Manosque, which is still the only production site in the world. In 1996, to emphasize the origin of the brand, the term "en Provence" was added to the original name "L'Occitane" and an international network was developed.

L'Occitane has almost doubled its industrial park abroad since 2005, and in 2007, the company boasted 950 shops. With its 950 shops scattered across the world, it is a bit of Provence that L'Occitane exports with its products, to the United States,...
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