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2021年02月23日 15:38
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2021年2月23日发(作者:布拉格广场伴奏)


REPORT ON L'ORÉAL GROUP



1.



Introduction


This report focuses on a successful international company in China - theL'Oré


al


Group. The topics covered include


“The basic information”, “


Should the company use


e-


commerce


as


the


main


distribution


channel?”



and


“Suggestions


under


the


current


macroeconomic situation in China”.



2.



The basic information


Primarily,


the


form


of


L'Oré


al


Group


is


corporation.


It


operates


in


many


countries in the world and has many successful subsidiaries. Two of the best known


are


Lancô


me and The Body Shop.


As a


corporation


the company has


some distinct


features. Firstly L'Oré


al Group is a separate legal entity and secondly, the owners of


L'Oré


al Group are shareholders. Currently the major shareholders arethe Bettencourt


family,


Nestlé


,


international


institutional


investors,French


institutional


investors,


individual


shareholders,


treasury


stock


and


er


with


other


shareholders, they own theL'Oré


al Group but have only limited liabilities.


1)



Undesirabledisadvantages



As


a


corporation


is


that


it


pays


income


taxes


twice.


Firstly,


the


company


is


required to pay income tax forthecompany earnings. When it distributes dividends to


its


shareholders,


the


shareholders


need


to


pay


individual


income


taxes


for


the


dividends.



As a transnational corporation, the board of directors and officers comprise the


management of L'Oré


al top manager of L'Oré


al is Jean-Paul Agon, who is


the chairman and chief executive officer of the corporation.



In


terms


of


what


products


or


services


provided,


L'Oré


al


is


the


world


largestcosmetics


company


concentrating


on


hair


color,


skin


care,


sun


protection,


make-up,


perfume


and


hair


care


as


well


as


toxicology, tissue


engineering,


and biopharmaceutical research


fields.


Besides,


the


products


it


provides


can


be


categorized as mass, professional, luxury and active cosmetics markets. Respectively,


the


mass


cosmetics


brands


are


L'Oré


al


Paris,


MaybellineNY


and


Garnier.


The


professional


are


L'Oré


alProfessional,Kerastase


and


Matrix.


The


luxury


brands


are


Lancô


me, YSL, Giorgio Armani,


Kiel’s


, The Body Shop, and Shu active


cosmetics


brands


arecosmeceuticals,


such as


Vichy,La Roche- posay, Skin


Ceuticals,


and INNEOV


.



2)



Four major distribution channels



Retailing, franchising and e-commerce. These distribution channels have theirmerits


and


shortcomings.


First,


retailing


has


small


transaction


size


but


high


transaction


frequency.


Additionally,


retail


sale


is


largely


influenced


by


consumer


buying


behaviors.


Second,


franchising


has


its


own


merits.


The


franchise


owners


can


use


franchising


to


make


large-scale


sale


and


achieve


low-cost


expansion,


but


franchise


can only focus on one area, and can't be a strategic victory in every market. The third


is


e-commerce.


The


upside


is


that


using


e-commerce


as


a


distribution


channel


is


convenient, time saving and costs reducing. But on the other hand, for customers to


buy products


online, especially


cosmetics,


takes


risk


because they cannot check the


quality of the products as they do in a physical store.


3)



L'Oréal should use e-commerce


As every distribution channel has its merits and demerits, it needs to be finding


out


if


L'Oré


al


should


use


e-commerce


as


the


main


distribution


onic


commerce makes it possible to sell commodities in a cheap, efficient, easy and global


way. In accordance with the operation and saling situation of L'Oré


al, e-commerce is


an


optimal


distribution


channel.


For


one


thing,


L'Oré


al


sellsmass


cosmetics


brands


products,


the


target


customers


of


mass


cosmetics


products


are


ordinary


or


middle

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