This report provides an in-depth analysis of The Body Shop's business environment, focusing on both internal and external factors. The introduction emphasizes the importance of understanding the business environment, highlighting the influence of internal and external factors on business operations. Internal factors discussed include the management of operations, the quality of human resources, and technological advancements. External factors such as political, economic, social, technological, legal, and environmental factors are examined in detail, illustrating their impact on the company's decision-making and overall performance. The conclusion summarizes the importance of both internal and external factors for the smooth running and growth of The Body Shop, emphasizing their influence on product pricing and sales. The report references relevant academic sources to support its analysis.