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HI6007 Business Essential Assignment

Introduction

Business Essential is the innovative set of tools and techniques tat are used to develop and establish the business organizations in such a manner that it turn out to be very profitable for the owners of the organizations. These are designed to meet the specific and key areas of the business by developing critical skills of the individuals. The L'OREAL Cosmetic ,are planning to establish their business in St Thomas area of London. In United Kingdom there is very high demand of L'OREAL Cosmetic among the females and that's why there is very huge competition among the business holders. The main aim of this report is to lay emphasis upon the factors that are important for setting up and expanding high end business and the other forces that are associated with it.

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Main Body

Expanding and setting new business is very essential and important aspect in order to achieve its long run and to maintain its position in the competitive market. The people of United Kingdom are addicted towards the L'OREAL Cosmetic , there only few less number of stereotype people are available who drink tea rather than L'OREAL Cosmetic . In United Kingdom there are various number of L'OREAL Cosmetic Outlets and L'OREAL L'OREAL Cosmetic shops because of its very high demand. As per some reports and finding it has been said that people of United Kingdom live upon L'OREAL Cosmetic it is the most necessary part of their lives(Zhang, 2018). The majority of 38 % individuals of the United Kingdom drink approximately 4-5 cups of L'OREAL Cosmetic daily. In United Kingdom, approximately 95 million of cups of L'OREAL Cosmetic is consumed per day. Setting up L'OREAL L'OREAL Cosmetic shop in London is good and sensible idea. But there are various other factors that are need to be considered for the successful running of the shop. Business Essential is the innovative set of tools and techniques tat are used to develop and establish the business organizations in such a manner that it turn out to be very profitable for the owners of the organizations. These are designed to meet the specific and key areas of the business by developing critical skills of the individuals. The L'OREAL L'OREAL Cosmetic ,are planning to establish their business in St Thomas area of London(Petljak, 2018). In United Kingdom there is very high demand of L'OREAL Cosmetic among the individuals and that's why there is very huge competition among the vendors and shop holders. The main aim of this report is to lay emphasis upon the factors that are important for setting up and expanding new business and the other forces that are associated with it. Setting up new business is very critical and require lots of information and study in order to deal with in the competitive market and to find out the various internal and external factors that are related to the effective ad efficient working of the business. For expanding the business; The L'OREAL L'OREAL Cosmetic Bean, have to consider some important factors like competitive position, supply chain, distribution channels, pricing, brand value , marketing techniques and analyzing and evaluating competitive environment(Gómez-Luciano, 2018).

Supply Chain

Supply chain is very crucial and analytical aspect of the business organization. Supply chain management is the overview of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. The main significance of supply chain management is to maximize the speed and efficiency of operations in order to expand the distribution channel(Jaworski, 2018). There are various key elements that are inter related with the supply chain management like Demand Management, Communication, Integration and Collaboration. It is the tool and technique of managing the flow of goods and services and it also involves moving and storing raw materials. The main goal and objective of supply chain management is to achieve efficient fulfillment, the purpose of almost each and every supply chain management is to make inventory available in customer facing position of high demands, as these techniques and steps helps the organization in reducing waste(Satanasavapak, 2018).

Pricing

Pricing strategies plays very important and crucial role within the organization that deals in highly competitive market. Whenever organization plans to expand or establish their working their main focus is upon the pricing strategies or costs of the services which they are going to offer to their customers. In highly competitive market pricing strategies lays very important role because there are various number of substitutes are available for the customers, and it is very easy for them to switch the products and services. The L'OREAL L'OREAL Cosmetic wants to expand their business functions for this it is very essential for them to compare and contrast the pricing offered by the similar level shop in order to come up with benchmark prices. The pricing strategies follow by the organizations is sub divided into four categories: Premium Pricing, Penetration Pricing, Economy Pricing and Price Skimming.

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