External Environment in Which The Body Shop Operates Research Paper - 2

External Environment in Which The Body Shop Operates - Research Paper Example Resources utilized for this project were gathered utilizing a wide variety of secondary source materials, including the theoretical professional perspectives in books, journals, and community reports highlighting strategic activities and analyses of reputable firms which recognize the importance of macro-level assessments. Research literature regarding The Body Shop, from a wide variety of community and internal perspectives, was compared to the tangible 2006 The Body Shop Annual Report so as to provide an accurate snapshot of the current state of long-term business strategy within the company. No primary data was gathered for this report in the form of observations or questionnaires due to researcher limitations.  Because of sales declines in the United Kingdom, The Body Shop must come to understand all of the macro-environmental factors which potentially hinder continued growth and business sustainability. In order to fully address these factors, this section highlights the busin ess environment of The Body Shop, including a detailed PEST analysis which divides the external business forces into four specific environmental categories. This format is designed to assist the reader in understanding how the aforementioned categories directly impact current performance and future longevity at the firm.  The Body Shop maintains an employee population of just over 7,500 (The Body Shop Annual Report, 2006). The Body Shop UK is a division of The Body Shop International, Plc. owned by the L’Oreal family of brands and experienced a one percent drop in sales from 2005 to 2006 (BSAR, 2006) Though this is not a tremendous sales decline, it does tend to illustrate that the firm is currently losing momentum in its European market. The Body Shop offers products which appeal to the upscale consumer, consisting of naturally inspired ingredients and the company guarantees the quality of its somewhat organic product line.