Business & Environment: Structure, Size, Scope of The Body Shop

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This report provides a comprehensive analysis of The Body Shop's business environment, covering aspects such as organizational structure, size, scope, and the interplay between different organizational functions. It delves into the public and private sectors, examining various organizational types like sole traders, partnerships, companies, joint ventures, franchising, and licensing. The report also explores the voluntary sector, including NGOs and NPOs. Furthermore, it applies PESTEL and SWOT analyses to assess the macro and micro environmental factors influencing The Body Shop, highlighting the impact of these factors on business objectives and decision-making. The document also explains the relationship between different organizational functions and how they link to organizational objectives and structure.
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ASSIGNMENT SUBMISSION FORM
This sheet must be submitted with your assignment. Failure to complete, sign and
submit this form will result in a mark of ‘0’ for the assignment.
Student Name
Student ID
Assessor Name
Qualification Pearson BTEC Level 5 HND Diploma Business
(Management)
Unit Number & Unit
Title
Unit 1 BUSINESS AND BUSINESS ENVIRONMENT
Assignment Title The Body Shop
Date of Submission July 30th 2018
Signature: …… Date: _____18/09/2018__________
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Table of Contents
Task 1.........................................................................................................................................3
1.0Introduction.......................................................................................................................3
1.1Analyze how the structure, size, and scope of different organizations link to the
business objectives and product and services offered by the organization.........................3
2.0 Scope of an organization..................................................................................................5
2.1Scope of different organizations....................................................................................5
2.2An analysis of how structure, size, and scope of organizations affect their objectives
and the products and services they offer (M1)...................................................................6
3.0 Organisational functions...................................................................................................7
3.1 An explanation of the relationship between different organizational functions and
how they link to organizational objectives and structure (P3)............................................9
3.2 An analysis of the advantages and disadvantages of interrelationships between
organizational functions and the impact that can have on organizational structure (M2)
..........................................................................................................................................10
3.3 A critical analysis of the complexities of different types of business structures and
the interrelationships of the different organizational functions (D1)...............................11
4.0 MACRO Environment....................................................................................................11
4.1 PESTEL Analysis (P4)...............................................................................................11
4.2 Application of the PESTLE model on a detailed analysis of the macro environment
of The Body Shop (M3)....................................................................................................14
5.0 Micro Environment........................................................................................................17
5.1 SWOT Analysis (P5)..................................................................................................17
5.2 An explanation of how strengths and weaknesses interrelate with external macro
factors (P6)........................................................................................................................18
5.3 Application of SWOT analysis and justification of its influence on decision-making
(M4)..................................................................................................................................19
5.4 A critical evaluation of the impacts that both macro and micro factors have on
business objectives and decision-making (D2).................................................................19
Bibliography.............................................................................................................................21
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Task 1
1.0 Introduction
There are different features of an organisation such as structure, authority and responsibility,
relationships, processes, behaviour of individuals and groups, and performance.
1.1Analyze how the structure, size, and scope of different organizations link to the business
objectives and product and services offered by the organization
1.1 Public Sectors Organisations
Public sector is defined as government-owned companies and government provided facilities.
Public organizations could consider many basic characteristics named Rights, powers and
responsibilities, Lack of equity ownership, budget importance, resources nature, financial
structure, and nature resources. Moreover, state ownership is known as the public ownership.
Moreover, ownership of the organization, industry, and enterprise is given by the public
party. Moreover, it is examined that economics condition of the country could be controlled
by state government. It leads to obtain higher competitive benefits. Furthermore, the public
accountability is hallmark of modern democratic authority. It is practised for making decision
in the favour of organization. Moreover, the public enterprise own is responsible to collect
fund from the public by considering many sources named ministers, committees, and
alternative specialised agencies. Furthermore, public enterprise could consider all areas
across the county to make higher profit.
Goals
The main goal of public sector organisations is to offer significant services to
underpriviledged and huge amount of the society member.
Legal form of public organisations
There are certain legal form of public organisations partnership, Limited Liability, Limited
Partnership, Sole trader, and Corporation.
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1.2 Private sector organisations
Private sector is defined as an organisation that is not government owned and the goods and
services offered by companies outside of a government.
Objectives and goals
Types of private sectors organisation
Sole traders
The sole trading company is a kind of organization that wholly privately owned and kept by
an individual and that person is accountable for all of the loss and profit1.
Objectives and goals
To make planning for sustain in the marketplace in future
To make financial independent
T make flexibility in the business process
Legal status of a sole trader
The sole traders could consider many factors as a legal status like business license, payment
of taxes, business name, and self-employment tax.
Partnership
Two or more individual is involved in the own partnership company and they distributed all
of the profit and losses. There are two kinds of partnership named general and limited
liability partnership. The general partnership could consider many characteristics named
more than two people, and partners are liable to bear upcoming liability. Besides this, limited
liability partnership could consider other features named separate legal entity, minimum
number of members, no need of minimum capital, and no obligation of audit.
Legal status of general and Limited Liability Partnership
1Martin Charter, Greener marketing: A responsible approach to business (Routledge 2017). 105
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In the general partnership, the law doesn’t deliver responsibility to everyone like debts and
loss. The limited liability partnership facilitates firm to make one manager who manage each
activity of the business.
Objectives/Purpose of partnerships
To share networks, inventory, and other resources
Working with each other at same goal.
Companies
A limited company is that type of company in which the owner could be easily allocated and
it is owned by the board of directors. There are two kinds of companies that are operated in
the marketplace named public and private sector. The public sector company concentrates on
the making social relationship with people rather than wealth maximization. The private
sector organizations are focusing on wealth maximization.
Objectives of companies
The main objective of company is to deliver reliable services to the society for making higher
profit.
Legal status of a company
There are many company statuses who reflect the legal situation of the organization Sole
trader, Limited company, and partnerships.
Joint ventures
A joint venture is defined as business entity that is generated by two or more parties and
generally categorised by shared ownership, shared governance, and returns and risks.
Objectives/Purpose of joint ventures
To decline the risk factor for huge amount of the investment
To increase economics of scale
To accomplish synergy
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Legal status of a joint venture
There are certain activities that are considered in the joint venture named contracts, hire
employees, and own tax liabilities. These activities could be managed by co-venturers and
regulated by contract law.
Franchising
The size of the body shop is developed over 2,600+ franchised stores in more than
60 countries where, more than 17,000 employees are employed. Moreover, their revenue is
US$ 1.4 billion in 2017. The scope of their company is to deliver their products and services
to national with international customers with a different segment of business such as
Skincare, cosmetics, and fragrances.
Objectives of franchise
To deliver real value to their consumers in expected place
To offers Added services to potential consumers
Legal status of a franchise
Franchise law considers rules and regulation that is associated with the operating, making,
and ending franchise relationships.
Licensing
It is a procedure of generating and organising contracts amid the owner of brand and
individual who want to exercise the brand in association with product for an agreed period of
time and within agreed territory.
Objectives of licensing
To prevent the disorders and crime
To improve the public safety rules
To protect children from harm
Legal status of licensing
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Section 4, 2003 act permits the organization to have services of licensing due to managing the
corporate functions and reach at the reliable conclusion.
1.3 Voluntary sector organisations
The voluntary sector contains different companies whose intention is to create benefits and
develops society without making profits with no intervention of government.
Objectives
To make investment in social activities rather than focusing on making profit.
To make environmental and social projects.
Types of voluntary organisations
NGOs
The NGO is defined as the non-governmental company. This company raise the fund by the
government; however it keeps a non-governmental position with no requirement for a council
of government.
The size of the body Lush UK is 4,057 employees in the UK together with 13,652 employees
internationally. Their scope of work is to serve different kinds of the cosmetic company to the
national customers and earns a large number of earnings from them2.
NPOs (Non-profit organization)
It is committed to furthering a specific social cause and advocating for a shared viewpoint.
NPOs could be charities, voluntary organizations, cooperatives, educational, professional,
religious, and public service objectives. Moreover, they offered many services to the society
member without making their own profit.
2.0 Scope of an organization
The scope is defined as the required procedure and resources for completing a project and
producing a product.
2Stefan Schaltegger, Florian Lüdeke-Freund, and Erik G. Hansen, ‘Business models for sustainability:
A co-evolutionary analysis of sustainable entrepreneurship, innovation, and transformation,’ (2016)
29 Organization & Environment 264.
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Factors that determine the size of an organisation
Size of any company are connecting with the objectives and the products and services offered
by the Body shop. It is assessed that the company determines a huge target as their objective
will be attained only while they have a good organizational structure. When the company has
few people in their organizational structure and no one has an understanding about their
subordinate and role, then it would not be possible for them to arrive at the target due to less
clarity in their role. In contrast to this, any business company develops their objective as per
their size. Hence, when the size of the company is enormous and invests the large amount
then, they set their big target according to business objectives3.
Small and medium sized enterprises
Small and medium-sized enterprises (SMEs) are non-subsidiary and independent companies
that employ less than a given number of workforces.
2.1: Scope of different organizations
There are different types of companies like local, national, international, multinational and
global company.
Local company
Scope of local company is to gain the awareness about the needs, wants and desire of
community and then the body shop can supplies its goods and services to that citizen of
community who can buy.
National company
The major scope of national company is to increase the understanding about the culture of
nation and produces products and services to satisfy its market.
International Company
3Stephen Fineman, The business of greening: an introduction (Routledge, 2017). 120
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International company could be importers and exporters that they have no investment outside
of their habitat nation. The scope of international company is performed their business
activities in more than one nation.
Multinational Company
It has been pointed out that multinational company is directly managed by multi-national
entities4. In this way, it is assessed that the operation of Body shop runs in different countries.
Global company
The global company is related to ownership and controlling the organization. It is forced by
global individuals or group. The intention of this type of company is to make large amount of
profit. The Lush UK is considered as one of the key private global company.
2.2An analysis of how structure, size, and scope of organizations affect their objectives and
the products and services they offer (M1)
Every company has certain common objectives, which serves customers and makes
customers. However, the profit level fluctuates with the size. For instance, the body shop will
set small target according to their objectives but Lush UK will set the high target as per their
objectives. Companies develop their business objectives by assessing their business scope.
When the scope of any company is to serve national customers, then they will develop the
business objectives consequently. In contrast to this, when a company deals with international
customers the then it develops their business objectives accordingly5. Along with this, the
scope of any products with services is vast only when an organization has massive
4Robert Isaak, The making of the ecopreneur (Routledge, 2016). 63
5Bob Doppelt, Leading change toward sustainability: A change-management guide for business,
government, and civil society (Routledge, 2017). 205
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organization size with generates a high scaope, otherwise, the scope of products and services
will be for the small sized company.
3.0 Organisational functions
The function of the body shop relies on different functions like sales and marketing, human
resources, research and development, customer service, production and operations,
administration, IT, and finance and accounts. In this way, marketing is entailed as the bridge
of association with the market in order to satisfy the consumers. The marketing procedure is
advantageous for both suppliers and customers. The marketing helps the business such as the
body shop to deliver the customer’s information for building the new products. It would
support the quality life of the consumers6. It has been noticed that the body shop has gained
competitive benefits due to its competitive pricing strategy. The company has built a product
distribution system that permits the customers convenient access to product and services. The
increasing demand of the body shop products enables the company to grow and enlarge its
operation and gather more profits from the UK market. It has been observed that the company
provided the awareness message like or HIV and AIDS awareness as well as engaged in
developing carbon neutral and trusts in ethical trading. It contributes to developing awareness
among society7.
Finance is another function that is related to expenditure and practices of organizational
resources for a different process. The financial function offers valuable reports on financial
performance and position with respect to the business plan. The company has allocated the
funds to different parts of the company in budget allocation and assessing the practice of
6Bocken Nancy MP, Samuel W. Short, PadmakshiRana, and Steve Evans, ‘A literature and practice review to
develop sustainable business model archetypes’ (2014) 65 Journal of cleaner production 42.
7Chan W. Kim, and Renée A. Mauborgne, Blue ocean strategy, expanded edition: How to create uncontested
market space and make the competition irrelevant’ (2014) Harvard business review Press, 3.
10
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financial resources in against the performance budget. For managing the cash flow of
business, the body shop ensures that there are adequate funds to attain business needs. The
financial performance of every team is assessed by the internal auditors. The finance of large
corporation was entailed in the investment of excess funds. It has been pointed out that
different corporations have generated the treasury fund to look after the business of the
company. Hence, the company can acquire the best return and declines the uncertainty from
the investment. Moreover, resources are entailed as a risk by different finance departments
such as cost improvement project, additional production lines, purchasing new technology to
assist quality and efficiency. It has been assessed that the financial report of the body shop
makes sure that the company attains the higher needs of UK8.
Accounting is another function of an organization such as the body shop will be tracking all
daily transaction of the sales, purchases, and utilizing the business resources externally and
internally to the company. The cash flow in the body shop makes sure that the company pays
adequate funds for maintaining their business liabilities while it needs to pay. It is evaluated
that the finance team is held accountable for sourcing the additional funding from different
sources in order to expand the business9.
The body shop has also entailed the role of the human resource management department to
take care of workforces by the company. The convex of the human resource management
department is used to manage the workforces for attaining 100% efficiency and good
performance. The human resource management department also creates an issue about the
policies and legislation. There are the different roles of human resource management in
practices of the body shop. These roles are job design, recruitment, employee relation,
8Samuel W., Short, Nancy MP Bocken, Claire Y. Barlow, and Marian R. Chertow, ‘From refining sugar to
growing tomatoes: Industrial ecology and business model evolution’ (2014) 18 Journal of Industrial
Ecology 603.
9RomanaRauter, Jan Jonker, and Rupert J. Baumgartner, ‘Going one's own way: drivers in developing
business models for sustainability’ (2017) 140 Journal of Cleaner Production 144.
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maintaining employment law, administration, and training and development of employee’s
skills10.
3.1 An explanation of the relationship between different organizational functions and how
they link to organizational objectives and structure (P3)
Organizational structure is depending on the business function of the body shop as a company
always makes their objectives and an organizational structure based on the role they provide
to the customers. The body shop creates objective to gain productivity in an organization and
creates an effective organizational assembly for maintaining the respectable movement of
command in their organization. Business function of the body shop is to provide their
products and services to the customers with upholding the uniformity and controlling the
organization11. Stability could be maintained in the body shop through the actual amount of
control and company can monitor their operating business via the structural structure. The
body shop can attain better functionality when everyone connected with any project that has a
great understanding regarding his or her role. Hence, real objectives and organizational
10AngappaGunasekaran, Yahaya Y. Yusuf, Ezekiel O. Adeleye, and Thanos Papadopoulos.‘Agile
manufacturing practices: the role of big data and business analytics with multiple case studies’ (2018)
56 International Journal of Production Research 385.
11James P. Neelankavil, International business research (Routledge 2015). 59
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structure could be developed effectively that can help the body shop to attain the function of
an organization and enables the workforces for performing their role in business12.
The vision of the body shop is to emphasize on excellent retailer and offering the customer's
prestige products at a valuable rate with outstanding customer services. By the commitment
of quality, constant innovation, and respect for the globe, the aim of the body shop is to
exceed expectations and be rewarded with a smile. The company will meet the goals by
engaging the passion of people, and talent who believe to make a better way13.
3.2 An analysis of the advantages and disadvantages of interrelationships between
organizational functions and the impact that can have on organizational structure (M2)
Advantages:
The inter-workforce relationship between different organizational function supports
the business of the body shop to keep cooperation among team members
The body shop can expand in developing the relationship between employees and
gains the effectiveness in the organization14
Disadvantages:
Every individual from different branch understands the other’s job accountability and
operations of another branch so the body shop can utilize these data to damage that
branch.
12Wojciech M Budzianowski, ‘High-value low-volume bioproducts coupled to bioenergies with the
potential to enhance the business development of sustainable biorefineries’ (2017) 70 Renewable
and Sustainable Energy Reviews 793.
13NurSuhailiRamli. ‘Immigrant entrepreneurs on the world's successful global brands in the cosmetic industry’
(2015) 195 Procedia-Social and Behavioral Sciences 113.
14Isabelle Aoun, and Laurent Tournois, ‘Building holistic brands: an exploratory study of Halal cosmetics’
(2015) 6 Journal of Islamic Marketing109.
13
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3.3 A critical analysis of the complexities of different types of business structures and the
interrelationships of the different organizational functions (D1)
When the organizational culture and structure is centralized or rigid then the performance of
workforces would be average and normal. Because the rigid structure does not permit the
workforces involvement and freedom in the business operation, which can de-motivates the
workforces hence they are not competent to achieve well. In contrast to this, the decentralized
structure permits the workforces to interact and participate in the decision making procedure.
It also highly encourages the workforces to perform effectively and stay loyal to the
company15.
Task 2
4.0 MACRO Environment
Introduction
The macro environment is defined as the circumstances of the economy of any company in a
specific nation. It has been pointed out that the macro environment involves the trend of
GDP, monetary, spending, inflection and fiscal policy. It has been analyzed that macro
environment controls different external and uncontrollable factors that can impact on the
decision making the procedure of the body shop.
4.1 PESTEL Analysis (P4)
Political
1. Political inconsistency in major markets create threat
2. Agreement of free trade agreement generates the opportunity
3. Governmental support for eco-friendly products create the opportunity
15SharmilaPudaruth, Thanika Devi Juwaheer, and Yogini Devi Seewoo, ‘Gender-based differences in
understanding the purchasing patterns of eco-friendly cosmetics and beauty care products in Mauritius: a
study of female customers’ (2015) 11 Social Responsibility Journal 179.
14
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Positive impact
Expand the business into cosmetic industry
Negative impact
Political inconsistency may have adverse impact on business growth
Economic
Strong Yen vs. U.K. dollar creates the threat
The gradual expansion of the U.K. economy generates the opportunity
Prompt development in developing nation may create the opportunity 16
Positive impact
Expand the business into UK cosmetic industry
Negative impact
Strong Yen vs. U.K. dollar may have adverse impact on business growth
Social
Gaining interest in cosmetic products generates the opportunity
Boosting interest in skin care products and services develop the opportunities
Widening wealth gap may create the threat for the company
Positive impact
Gaining interest in cosmetic products helps to expand the business into UK cosmetic industry
Negative impact
Widening wealth gap may have adverse impact on business growth
Technological
Increasing practice of e-commerce may generate the opportunity
Trends in mobile technology may develop the opportunity
16Lila Skountridaki, ‘Barriers to business relations between medical tourism facilitators and medical
professionals’ (2017) 59 Tourism Management 254.
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Cybercrime may create a threat for the company.17
Positive impact
Increasing practice of e-commerce helps to expand the business into UK cosmetic industry
Negative impact
Cybercrime may have adverse impact on business growth
Ecological
Transformation in climate
Declining international oil reserves
Increasing focus on the sustainability of the business
Positive impact
Increasing focus on the sustainability of the business helps to expand the business into UK
cosmetic industry
Negative impact
Transformation in climate may have adverse impact on business growth
Legal factors
Enhancing the intellectual property law may generate the opportunity
Gaining rigid environmental regulation may create threat for business
Boosting complex consumer regulation may create the opportunity for a corporation
Positive impact
Enhancing the intellectual property law helps to expand the business into UK cosmetic
industry
Negative impact
17Stephen J. Page, Heather Hartwell, Nick Johns, Alan Fyall, Adele Ladkin, and Ann Hemingway, ‘Case study:
Wellness, tourism and small business development in a UK coastal resort: Public engagement in practice’
(2017) 60 Tourism Management 466.
16
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Gaining rigid environmental regulation may have adverse impact on business growth
4.2 Application of the PESTLE model on a detailed analysis of the macro environment of
The Body Shop (M3).
Political factor Political instability creates the threat for the
body shop to grow their business to in the
UK cosmetic industry with high political
stress. In contrast to this, free trade
agreement in the UK and other nations help
the body shop to deal with their business and
get the opportunities for enhancing market
penetration. In contrast to this, governmental
provision associated with eco-friendly
products generates the opportunity for a
company to enhance their products18. It has
been pointed out that eco-friendly products
get to satisfy the customers who are more
environmentally conscious.
18Kai-Ingo Voigt, OanaBuliga, and Kathrin Michl, Business Model Pioneers (Springer International Publishing,
2017). 134
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Economic factor The body shop has created the opportunity to
enhance the exporting business or
organization from the UK. But, the value of
currency generates a disadvantageous for the
company. The body shop has already
established the second largest market in the
UK. Instead of this, the prompt enhancement
of building economies generates the chances
for the body shop to enhance revenues in the
upcoming period19.
19Timothy Kiessling, Lars Isaksson, and BurzeYasar, ‘Market orientation and CSR: Performance implications’
(2016) 137 Journal of Business Ethics 269.
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Socio-cultural factors The body shop can get the chance to offer
more products that satisfy the interest of
customers towards their skin care.
But, the company has critically perceived the
widening gap in wealth. It is considered as a
threat because there are few numbers of the
middle class. Though, the middle class is the
key source of revenue for the body shop20.
20Pierre-Yves Donzé and Rika Fujioka, ‘European luxury big business and emerging Asian market’, (2015) 57
Business History 822.
19
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Technological factors The body shop can get the opportunity to
enhance its e-commerce competencies. It is
addressed that the organization created the
contract with the third party e-commerce
service providers to sell certain products like
skincare product of the cosmetic industry.
Moreover, the body shop has built the
strategy to get the opportunity of increasing
the demand via mobile apps. In addition,
mobile application service can increase the
loyalty and engagement among customers. In
current time, the body shop focuses on the
threat of cybercrime like corporate cyber-
espionage21.
Ecological factors It has been perceived that the body shop can
get the chances to develop more
environment-friendly products like herbal
skin protection products. The company can
get the benefits of environmental protection
law as well as influences the consumers22.
21Stewart Lockie, Jose Travero, and RebekaTennent, ‘Private food standards, regulatory gaps, and plantation
agriculture: social and environmental (in) responsibility in the Philippine export banana industry’ (2015) 107
Journal of Cleaner Production 122.
22Pierre-Yves Donzé and Rika Fujioka, ‘European luxury big business and emerging Asian market’, (2015) 57
Business History 822.
20
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Legal factors It has been observed that the body shop can
attain the opportunity to grow with less
concern for violation of its intellectual
property right.
The company has observed that the
government is enhancing intellectual
property protection. The body shop can
deliver the finest quality products to their
customers to satisfy their extended needs.
5.0 Micro Environment
Introduction
The microenvironment is defined as the condition of a particular company within the
industry. It could be measured by the SWOT analysis. It is mainly used for evaluate the
internal situation of the firm in least time and get reliable outcome. Through this,
organization will be capable to operate their business in a systematic matter that leads to get
higher competitive benefits.
5.1 SWOT Analysis (P5)
SWOT Factors The Body Shop (NGOs) Lush UK (Private limited
company)
Strengths Huge franchisee network such as
more than 2600 franchised stores
in over 60 nations
The expenses of packaging are
reserved at a minimum. It is the
largest part of the cosmetic sector.
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Weaknesses There is little promotion of its
products.
Advertising is not very
demonstrative and effective as
compared to international
competitors.
Opportunities With the gaining awareness of
eco-friendly and natural products,
there are chances of potential
growth.
Increasing zeal towards healthy
and fresh products for body and
skin care.
Threats The product of body shop uses
some delicate raw material from
across the globe. Hence, rules and
regulation of some countries may
affect the trade and suppliers, and
ultimately adverse impact on its
operations23.
Customers may select the
traditional over responsible
products due to ease of use.
5.2 An explanation of how strengths and weaknesses interrelate with external macro factors
(P6)
Strength and weaknesses of the body shop have direct contact with the business and it may
directly influence the business. In contrast to this, macro environmental factors may influence
the decision making strategy, performance, and working on the business. Moreover, strength
and weaknesses may affect the nearby atmosphere where a company deals, but the macro
23Stephen J. Page, Heather Hartwell, Nick Johns, Alan Fyall, Adele Ladkin, and Ann Hemingway, ‘Case study:
Wellness, tourism and small business development in a UK coastal resort: Public engagement in practice’
(2017) 60 Tourism Management 466.
22
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factor may affect the entire geographic location where a company deals. Furthermore, if the
body shop does not perform well in the host nation, then they may face different complexity
in terms of attaining globally24. Hence, a company should make they're internationalized
approach by assessing their strength and weaknesses.
5.3 Application of SWOT analysis and justification of its influence on decision-making (M4)
SWOT assessment entails in the pattern of the objectives that help to address the internal with
external factors. It could be favorable and unfavorable for accomplishing the objectives of the
Body shop. SWOT evaluation could be practiced as one of the business technique that can aid
the body shop to take benefits of one’s capacities, talents, and opportunities. This assessment
can support the body shop to summarise and clarify the key concern with opportunities about
business and helps it to make the prompt decision for attaining the new objectives25.
5.4 A critical evaluation of the impacts that both macro and micro factors have on business
objectives and decision-making (D2)
From the internal and external factors, I have noticed that the body shop has a strong strategic
position and has a high amount of loyal customers so it helps the body shop to penetrate into
the new market. On the other hand, I have also observed that the body shop has few numbers
of loyal employees and low switching rate between employees hence, a company can expand
their organization into the different geographical sector. It is also noticed that body shop uses
a differentiation strategy that helps to pull the attention of customers not only from the UK
24SharmilaPudaruth, Thanika Devi Juwaheer, and Yogini Devi Seewoo, ‘Gender-based differences in
understanding the purchasing patterns of eco-friendly cosmetics and beauty care products in Mauritius: a study
of female customers’ (2015) 11 Social Responsibility Journal 179.
25AngappaGunasekaran, Yahaya Y. Yusuf, Ezekiel O. Adeleye, and Thanos Papadopoulos.‘Agile
manufacturing practices: the role of big data and business analytics with multiple case studies’ (2018) 56
International Journal of Production Research 385.
23
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but also from different companies26. In contrast to this, I have identified that at the time of
operation in different nations, the body shop has faced a high range of rivalry from other
nation. Along with, a political and legislative factor of those nations may affect the business
of the body shop at a higher extent.
Conclusion
From the above interpretation, it can be concluded that the PESTLE assessment is used to
assess the external impact of the company. It can be also summarized that the body shop has
assessed the internal strength and weakness, and external weakness and strength of the
company.
26Chan W. Kim, and Renée A. Mauborgne, Blue ocean strategy, expanded edition: How to create uncontested
market space and make the competition irrelevant’ (2014) Harvard business review Press, 3.
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