Internal environment and micro environment

Internal Environment

We've learned that internal environment contains eight factors which are from  inside of a corporation, connect closely and influence the compony as well. There is a short story about my sister's experience : My sister had an interview of both french and japanese firms. After that, she said she'd rather go to the french compony, because the rules of the japanese one are very strict. For instance, the employees are not allowed to late even 1 minute. On the contrary, french people are more flexible. They do have a long lunch break for afternoon tea. So I think those giant managing styles are caused by different cultures. Different structural styles may influence the link of people, such as people's motivation, the liquidity of employees, etr. People will directly impact on the finance, the profit.

Micro Environment

Porter's Five Forces is a key point of the micro environment. Companies nowadays are not only influenced by the competitors but also be affected by suppliers, customers, substitutes and new entrants. I'd like to make an analysis about THE BODY SHOP.

Analysis of The Body Shop

The threat of new entrants is not very high. Actually, I found almost all the products of body shop are from nature : nature green tea hand protector, ginger shampoo, body butter,etc. I think the awareness of environment and nature products idea make it unique. On the other hand, the reputation of body shop is quite good by advocating fair community trade to cut the costs of raw materials. So I think it's hard for new entrants to build a good reputation, form a mature product concept and have a strong loyalty of buyers in a short-term.
The rivalry and the threat of substitutes are both high. Apart from body shop, Bath & Body, Garden Botanika are produced similar products, too. They are competitors with source of customers and their products are substitutes as well.
The bargaining of buyers is really strong. Every time I visit body shop, I discover discount about 40%-50% off. The firm uses those kind of selling strategy to attractive customer. Besides, an E-commerse model was launched to regain the losing market share.
However, the bargaining power of suppliers is low. Because the major suppliers are from third world country. The price of raw material is not very high and there is no monopolistic situation happened. 

Tips For Managers

Overall, the both two layers of environment are incline to be increasingly significant for Business companies. From my perspective, managers need to analyze the five forces of their marketing conditions first and then reshape organizational structure for marketing share and profit.

                                  The Body Shop-- A Symbol of Nature