Strategic Company Analysis on The Body Shop Research Paper - 2

Strategic Company Analysis on The Body Shop - Research Paper Example The Body Shop works in a clean environment where they have managed to keep their competitive edge. They work is a diverse environment and they also aim to encourage a healthy environment in the world by working against torture of any kind to humans and animals.  Marketing activities are influenced by several factors inside and outside the business firm. These factors or forces influencing marketing decision-making are collectively called the marketing environment. It comprises all these factors, which have an impact on the market and marketing efforts of the Body Shop.  Macro environment refers to those factors, which are external forces in the company’s activities and do not concern the immediate environment. The macro environment is uncontrollable factors, which indirectly affect the concerns ability to operate in the market effectively.  Forces in an organization’s general environment have profound effects on its task environment. In fact, managers must constan tly analyze forces in the general environment because these affect long term decision-making.  PEST analysis for the general environment are including economic forces; social, cultural, demographic and environmental forces; political, government, and legal forces; technological forces; competitive forces; and Global forces.  Michael Porter created the Five Forces Model to help managers identify forces in the environment that are potential threats. According to Porter, the nature of competitiveness in a given industry can be viewed as a composite of five forces.