The Body Shop is part of a franchise and therefore has not been directly affected by general increase of the price of raw materials, although because the company works internationally they do lose out when the price of a raw material in one country is cheaper in another, because the finished product becomes slightly more expensive, but they have to sell it at the same price (as close as possible) as the cheaper country.
The body Shop has been affected by exchange rates because in the last few years it has become an international business. This has affected the business because if customers were to buy one product in England, they may find that the same product may be slightly cheaper or more expensive in another country. The Body Shop says that this cannot be helped and so they do not class it as a problem.
The Body Shop has made such a large turnover in the past few years that it no longer is affected by interest rates.
There are no environmental constraints on the business because the activities of the business do not have any damaging effect on the environment. The business is in fact careful not to harm the earth, or our environment, and once had a recycling campaign to preserve the earth’s natural resources.
The business competes with its with its main competitors by making sure that they preserve natural wildlife, they do not damage the earth, they keep their prices as low as possible, and achieve a high level of personal customer satisfaction.
The business is dealing with economic and environmental constraints by informing customers of the reasons why products may be slightly different prices in different countries. The body shop say that the customers are the most important thing to the business, and they will be lost if the business creates more problems for itself. The owners say that they understand what is going on therefore it is their responsibility to give others the opportunity to understand and respect it too.
The location of the business does not really give it any advantages or disadvantages to dealing with these external influences.
I think the business has responded very well to competition because it has built a customer trust, the customers know that what they are buying is actually what it says it is, the contents are all natural, and none of the products have been tested on animals. I think the location has been an important factor in responding to competition because in the Cornmill shopping centre there are no other health, beauty or cosmetic stores which makes it convenient for people who are only planning to go in there, and on rainy days people may want to stay inside the mall.
