This is a business report about the Internal and external analysis of The Body Shops strategies in the cosmetics industry

Essay by asha1University, Bachelor'sB, December 2003

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Executive summary

After carrying out an internal and external analysis of The Body Shop, it is evident to see that the Body Shop is currently the market leader in its positioning of the niche market, of uncommon skin product using natural ingredients.

However, with the recent issues with its franchising stores in United Kingdom and in the United State of America, The Body Shop's position is under threat.

The Pest analysis has indicated that the macro-environment in which The Body Shop operates is ever changing due to lifestyles changing and physical appearance's appeal.

The Five forces analysis established that the Body shop is in a highly competitive industry, with high barriers to entry. Porter's Five Forces also determined that the buyer had the power.

The Integrated Responsiveness Grid shows that The Body Shop brand easily integrated into the global market

The Seven 'S' Framework indicates that the internal functions operated within The Body Shop concentrate on producing exceptional customer service.

This is due to the inherent knowledge supplied by the Body shop on their product origins.

Financial analysis has shown that over the past 5 the company have not had a positive net cash flow, although turnover as being quite steady. Ratio analysis shows that the company does not have any short-term liquidity problems, however due to large investment they may face long-term liquidity issues.

The SWOT model summarises the key issues, which arose from the above analytical tools. This helped HAP to formulate a recommendation for The Body Shop, of further control of their stores and franchisees worldwide.