Impact of COVID-19 on The Body Shop: A PEST Analysis and Skills Required for Entrepreneurs

Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PEST analysis .............................................................................................................................1
Skills and Traits required for entrepreneurs................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business environment is described as sum of all the extrinsic components of companies
that greatly influence their functioning. Macro environmental factors covers all the forces such as
social, political, cultural, customers and many more (Teece, 2018). Entrepreneurship is defined
as the development of business by an individual who takes every risk and challenges to establish
a venture. In the following report the discussion about hoe COVID-19 has influenced the macro
environmental factors of The Body Shop in UK. The respective company is a British cosmetic,
perfume and skin care company which was founded by Dame Anita Roddick in the year 1976.
The company has its headquarter in London, UK and the macro environmental factors analysis
has been done through PEST framework. Furthermore, the report also explain what skills and
traits are required by entrepreneurs to successfully launch a business in UK.
MAIN BODY
PEST analysis
This is a marketing tool which aids companies to evaluate their macro environmental
factors which could influence their working activities. This tool consist of components which
includes political, economic, social and technological factors (Dana, 2018). The following PEST
analysis has been done on the UK along with The Body Shop due to COVID-19.
Political factor: These factors of PEST analysis helps in explaining components related
to government control and policies that influence business activities. In case of UK, it is
considered as one of the most powerful nation in the world. The political environment of the
country get highly disturbed due to COVID-19 as cases were increasing which pressurised
government to take measures to protect citizens. The government implemented lock-down
restriction under which people were not allowed to move around the country unnecessary. This
also restricted companies to operate their business operations on online platform rather than
opening physical stores. This lock-down restriction impacted business functions of The Body
Shop which had to run its trading activities from various online channels. The company had to
follow all the policies and regulations executed by government in order to help it in overcoming
problems raised due to this pandemic.
Economic factor: These components of respective framework assist in describing how
financial situations of country could directly impact on long-term prospects of companies in
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