• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

External Factors influences and impact on The Body Shop

Extracts from this document...

Introduction

The External Factor's influences and impact on The Body Shop The external environment is categorized into seven actors: sociological, technological, economic, environmental, political, legal and ethical. These different aspects can have a huge influence on a businesses' objective and strategies. The 'STEEPLE' analysis is a useful way to assess the impact of the external environment and the opportunities and threats that lies within it. Thus, it allows the company to align positively with the powerful forces of changes in the environment when setting a framework for future development. I chose the body shop because is the second largest cosmetic franchises in the world and I like they way in which they encourage others to be environmental friendly. There motto is very inspiring, 'natural's way is to beautiful' and it creates a very positive image for the company. The business is known for its cosmetic products that are naturally made and environmentally-friendly which serves as a competitive advantage. The body shop has always been aware of the changing external environment and has always been focused on the ethical, environmental factors. Many changes have occurred in society in the last few decades, such as Attitudes, value, lifestyle, buying habits, household and age-profile. ...read more.

Middle

The downfall of the economy recently has brought a positive and a negative effect to The Body Shop. The falling interest rate plays as a favor of the company's franchising policy as a growth strategy. However, the collapse of banking institutions and the economy has affected business sales and profits in general as people are less willing to trade. Furthermore, the exchange rate depreciation indicates that the business's cost has increased a lot as the fall of pounds indicates that they have to pay higher prices for imported ingredients and products which created a decrease in the profit made. With the increasing globalization of business, society has been more concern with the degradation of the environment and concern for the benefit of the employees and the public in general. The society has call for attention to industries for social responsibilities. The body shop hopes to have a positive corporative image, therefore they run campaigns, encouraging people to care for the environment and work for the world's wild life. They have formed an alliance with 'Friends of the earth.' What they have done to raise awareness is to change to sustainable green packaging, recycle by-products, hoping to bring a better future. ...read more.

Conclusion

The Body Shop foundation is the charitable arm of the company and is funded by the company as well as other fundraising measures. They have continued to raise awareness for Women across the world affected by domestic violence in 2008. They gain free publicity due to the frequent media exposure. Through the STEEPLE analysis, we can see that The Body Shop is definitely very successful in fulfilling the moral obligations and creating brand loyalty and assurance to the consumers. However they would have to make changes to their objectives and add to their unique selling point in order to make further improvements and to be aware of the external factors, such as the sociological factor and the technological factor. For example, they can make further improvements and advertise their company through the use of the internet and improve online channels of distribution and incorporate new machines into the company, utilise resources of the host countries to minimize production cost. Also, they should be up the front and produce cosmetics which will satisfy the wants and needs of the customer and be aware of the changing trends and attitudes to be ahead in competition and grasp every opportunity. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Business Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Business Studies essays

  1. A Corporate Governance Review of Toyota

    This has of course led to intense attention from the Toyota Corporation, with the establishment of several related procedures to avoid future situations. Furthermore the Toyota has been forced to publish more information about these recalls, this is done on their webpage at toyota.com/recall.

  2. Thai Tuan Textile Company, Vietnam - Marketing Strategies

    still play an important role in Vietnamese daily life. For example, traditional sales cover about 68% -70% of the total sales of food products. That is the reason why a major percentage of Vietnamese go to community traditional market ("cho")

  1. Analysing Job sectors in Canada. Identify trends in employment and occupational demand patterns for ...

    With the facts shown above, dentistry is a field you can really sink your teeth into, whether you've got the stamina to stick it out through three years of undergrad university studies plus four to five years of dentistry school or want to get working in this field sooner by becoming a dental hygienist.

  2. AVCE Unit-3 Marketing

    chosen, where the product should be launched at lowest price and as the sale increases the price can be increased gradually. The pricing on their competitor's products is too high Cadbury's could lose sales if a competitor was to launch a new product to rival Cadbury's best sellers.

  1. The Business Environment of Coca Cola

    Mixed economy The mixed economy has the elements of both the market and the planned economy in one cohesive system. It means to form this type of economy certain features from both economic systems are taken. In a mixed economy there is flexibility in some areas and government control in others.

  2. Ford Company Analysis - corporate structure and financial analysis

    With the By-Laws of the Company, a director will not be nominated for election to the Board after his or her 72nd birthday, although a waiver of this limitation may be granted by the full Board. 1.8.3 Independence of Directors A majority of the directors must be independent directors under the New York Stock Exchange (NYSE).

  1. Dividend policy at Linear Technology

    absence of any prospective projects as it reduces the tax burden of the company, and is especially favorable in view of the proposed Bill. Assuming perfect capital markets, the return of cash via stock repurchases or dividends would have identical effects should the Bill be passed.

  2. Questions on Globalisation and International Trade

    Discuss the possible implications of such a development for(1) The world trading system.(2)The world monetary system.(3)The business strategy of today's European and U.S. based global corporations. (4)Global commodity prices. Answer: The world trading system would clearly be affected by such a development.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work