External Factors influences and impact on The Body Shop
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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.
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