1.

Introduction

1.1 Body shop Background

The Body Shop International PLC is a standout amongst England's best retailers of beauty care
products and individual consideration items, with more than 1,100 stores in 45 nations and it has
providers in more than 20 nations around the globe, sourcing the best crude fixings and
conventional abilities from around the planet – profiting nearby networks consequently. The
organization is best known for spearheading the regular fixing beautifying agents advertise and
setting up social obligation as an indispensable piece of organization activities. Actually, The Body
Shop has gotten more consideration for its moral positions, for example, its refusal to utilize fixings
that are tried on creatures, its money related gifts to the networks in which it works, and its business
associations with creating nations, than for its items. The organization makes more than 400 items;
its most well-known incorporate its Colourings beautifying agents, the Mother and Baby product
offering, and it's Mostly Men items (Referenceforbusiness.com, 2019).

Fig 1.1: body shop Logo

(Source: Oxford Urban Retail, 2016)

Anita Roddick, founder of the company, has built this phenomenal success by flouting industry
conventions. In 1991, Business Week quoted this cosmetic industry leader as saying: "We loathe
the cosmetic industry with a passion. It's run by men who create needs that don't exist. “But in
2006, the L'Oreal group bought The Body Shop, for £ 652.3 million, which sparked controversy
over The Body Shop's antithesis of Nestlé's ownership of L'Oreal in part, especially after the
corrupt quality scandal for baby milk sold by Nestle in Third world, (Chesters, 2019).

In 2017, body shop found a new partnership with at Natura and Aesop. We're now part of Natura
&Co, a global cosmetics group committed to cruelty-free beauty and ethical business. Their goals
is to work together to make beauty a force for good (Thebodyshop.com, 2019).

1.2 Body shop values

 Support Community Fair Trade

It owns a fair trade program independently verified, which was created to assist the Marginalized
communities that is helping to improve their lives and alleviate poverty, as well as purchasing
more than 3 million kilograms of community fair trade components and worked with 25,000
products and trade product in fair trade in 21 countries (Thebodyshop.com, 2019).

 Activate self esteem

its running a business base on customer satisfaction by using their products, also as an ethical
beauty brand that values who customer are and what they do, and not just how they look. Each
poster they display in the store and every image on the website is produced with the following
guidelines, for instance: not change size or body shape of our models, natural products
(Clicksgroup.co.za, 2019).
 Defend Human Rights
Since long years, The Body Shop has use a global presence to campaign for human rights in
the media, stores, and also work with their suppliers to expand ethical trade practices that
respect workers’ right (Borgen, C, 2015)
 against Animal Testing
All The Body Shop products are herbal and free of cruelty to animals, also in 2008 won award
from the RSPCA (UK Royal Society for the Prevention of Cruelty to Animals)
(Shortyawards.com,2019).

2. PEST analysis:

2.1 Political factors

Different factors in the external environment of Body Shop continue to affect its market
operations. Most of these factors are beyond the control of this company, as it has less influence
on its external environment. Two major political factors have affected the production and sale of
beauty and cosmetic products by this company. First, political instability in Guatemala limits the
company’s production of beauty products. Guatemala produces Aloe Vera used in manufacture
of beauty products by the Body Shop. Political instability destabilizes major business processes
and business transactions with foreign countries. Secondly, Peru is also faced with political
instability, yet it is the major producer of the Brazil nut oil, used in manufacture of beauty
products.

2.2 Economic factor

Monetary variables influence the cosmetic industry by having an effect on pay and request which
incorporate, for example, acquiring force, expansion and cash rate. Malaysia's economy
development in 2018 expanded by 4.7 % (The Edge Markets, 2019). With the enhanced
monetary execution, Malaysian clients who have higher wages will in general spend more on
cosmetic products, due of the two largest markets on the world like China and Brazil are growing
their economies drastically which cause the world markets should be increasingly dynamic . At
the point when there is an expanding in client and business utilization in Malaysia, it generally
raises request of the beauty products known by an increasing the order in palm oil which used to
produce the cosmetic products (Azuizkulov, D., 2013).
3.2 Social factors

Malaysia is consider a multicultural society ,and According to The Star online (2014), in 2010
have been mentioned the majority of Malaysian is Malay (67.4%), Chinese (24.6%) and followed
by Indians (7.3%), As resulting a big number of Muslims in the country, Halal beauty products
will be more important in the cosmetic industry because of this , the body shop will provide Halal
products for Muslims that help to increase their profits, their market shares (Kaur et al., 2014).

as we know the Body Shop is having a wide range of halal products which consist of hygiene
products, and skin care products, make up products and accessories that is really suitable for the
Malaysian which led to build strong relationship on customer satisfaction that can keep for long
term, as we know difficult to restore customers once they switch to another a brand. As a result,
due to the big number of the Muslims, Obviously the body shop is going to focus more on the halal
products. in addition , nowadays are there some people in Malaysia are who’s really more concern
about design, quality, method, reputation of companies and products that help them to make
decisions before they purchase a product.

4.2 Technological factors

Innovation is the fourth condition of the outer condition. Innovation is vital gear that encourages
the organizations to rapidly achievement in efficiency and it makes new items and purchaser's
needs to the organizations (importance of technology, 2019).

The online registration system is being by The National Pharmaceutical Control Bureau for
manufacturers to register products that need to produce by display details before their productivity
(Zakaria et at., 2016).

According to Zakaria (2016) said the advantages of this new system, its faster than the original
system which causes more suit to the firms and the organization, but the safety , quality of products
are going to be the same and the customers can consider more beauty products for their choices.
From hence, The Body Shop can affected by these advantages of this new online system which is
not only convenient but also a chance to gain more customers because they can easily find products
they want through this system.
Reference

Chesters, A. (2019). A brief history of The Body Shop. [Online] the Guardian. Available at:
https://www.theguardian.com/fashion/fashion-blog/2019/nov/21/brief-history-of-body-shop
[Accessed 22 Jan. 2019].

Thebodyshop.com. (2019). About Us | the Body Shop. [Online] Available at:

https://www.thebodyshop.com/en-gb/about-us [Accessed 22 Jan. 2019].

Referenceforbusiness.com. (2019). The Body Shop International PLC - Company Profile,

Information, Business Description, History, Background Information on The Body Shop
International PLC. [Online] Available at:
https://www.referenceforbusiness.com/history2/44/The-Body-Shop-International-PLC.html
[Accessed 22 Jan. 2019].

Clicksgroup.co.za. (2019). Corporate Sustainability - The body Shop. [online] Available at:
https://www.clicksgroup.co.za/corporate-sustainability/body-shop.html [Accessed 12 Feb. 2019].

Borgen, C. (2015). The Body Shop Foundation: Supporting Human Rights - TBP. [online] The
Borgen Project. Available at: https://borgenproject.org/the-body-shop-foundation/ [Accessed 12
Feb. 2019].
Shortyawards.com. (2019). The Body Shop – Forever Against Animal Testing - The Shorty
Awards. [online] Available at: https://shortyawards.com/2nd-socialgood/the-body-shop-forever-
against-animal-testing [Accessed 12 Feb. 2019].

The body shop (2019). The Body Shop UK - Are your products vegetarian?. [online] Available
at: https://www.thebodyshop.com/en-gb/help/products-and-services/vegetarian [Accessed 23
Jan. 2019].

(Azuizkulov, D., 2013). Country of origin and brand loyalty on cosmetic products among
University Utara Malaysia students. Atlantic Review of Economics, 2

The Edge Markets. (2019). Malaysia GDP growth to slow to 4.6% in 2020, says World Bank.
[online] Available at: http://www.theedgemarkets.com/article/malaysia-gdp-growth-slow-46-
2020-says-world-bank [Accessed 12 Feb. 2019].

Kaur, K., Osman, S. and Maziha, S., 2014. Predicting working women purchasing behaviour of
Malaysian Halal cosmetic products by using theory of planned behaviour. International
Academic Research Journal od Business and Management, 3(1), pp.1-7

Importance of technology. (2019). The Importance of technology - importance of technology.

[online] Available at: http://eimportanceoftechnology.com/ [Accessed 13 Feb. 2019].

Othman, M.B.H., Khan, A., Ahmad, Z., Zakaria, M.R., Ullah, F. and Akil, H.M., 2016. Kinetic
investigation and lifetime prediction of Cs–NIPAM–MBA-based thermo-responsive hydrogel