Free «Business Environmental Analysis» Essay Sample

Business Environmental Analysis


Body alive is a company that was founded by David McCabe, Tony Little and Jim Livingstone in 2007 with main focus on healthy living, wealth creation and freedom of work to individuals. It is a home based business with several international leads where potential representatives check the business directory through safe leads and can post their marketing content. It involves multilevel marketing of healthy products, skills and ideas where the marketers are paid for the products they sell individually and also for the earnings from the people they recruit into the system. Body Alive is part of Yoga Studio that offer produce and distribute quality physical education and health products that include yoga mats,  yoga equipment, prAna yoga clothing, ECO yoga mats,  Pilates equipment, yoga music cds, yoga dvd,  yoga supplies, , yoga books, and yoga kits that are used by people in their  yoga practice. Yoga Studio also supplies yoga mats and yoga equipment to yoga instructors and teachers, schools their retail outlets at wholesale and retail prices ( 2011). Body Alive in conjunction with Yoga Studio offer lessons on physical fitness to the customers for people with back and any kind of muscle pains. One factor that has made Yoga remain competitive is the ability to conceptualize their business idea and has been able to pursue their vision and mission in their quest for expansion.

Remember! This is just a sample
You can get your custom paper by one of our expert writers
Get custom essay

Environmental Analysis

Business environmental analysis is done through analysis of remote environment, that consist of Political, Economic, Sociological and Technological environment, industry environment and operation environment  which are  internal factors that Yoga is operating in (Harrison 2010).

1) Remote environment

Economic factors; these factors concern the conditions under which Yoga operates. Due to increase in demand for Yoga products and trainings, the income and growth of revenue has been on the rise since 2007, the capital base has risen and has led to the regional expansion to establish its presence in more states and countries.  Growth of revenue collection also  provides opportunity for future business growth thus, Yoga can continue with the expansion program into regions not yet exploited and can as well invest in new product development to continue cementing their market base.

Social environment; this  include Beliefs, lifestyles ,values and opinions that the company hold on the society it serves in ensuring that they give back to the society. Body alive under Yoga  believe in good lifestyle and values and since 2007, Body Alive  has been involved in nutrition and activity programs that ensure that there is efficiencies and balance in nutritious food stuffs and physical exercises, using Yoga Refresh Project initiative of donating to schools to construct fitness rooms ( 2011). Currently Yoga companies have exhibited the best credentials in in corporate social responsibility. This has made the company be well received in their business environment, for their sustainable investment in healthier future of the people, a fact that has given them strength over other competitors. The company has also embarked on packaging their products in environment friendly packages in a bid to ensure that the environment is well maintained, also known as ecological factors.

We will write
a custom essay
specifically for you
Get your first paper with
15% OFF
Learn More

Political environment; these factors are concerned with the legal and government regulations that control the operations of firms. Having that Yoga is a multinational firm, it experiences different regulations depending on the country as far as multi-level marketing of the products and the delivery of the products is concerned. They therefore have to comply with all the stipulated directions to operate smoothly in these settings. For example, Yoga has maintained the quality of the products to acceptable level. Without compliance to legislation like free trade agreements, tax programs, pollution, and tax operation, licenses can be withdrawn hence terminating the production (Muralidaran 2007).

Technological factors; every company needs to adopt the new technological changes to be competitive in the market. This includes production, product differentiation that ensures that best healthy products and lessons are released to the market as exhibited by Yoga. Currently the company utilizes a new technology of internet marketing, product order and the concept of people marketing where members recruit marketers under their hierarchy ( 2011). This latter strategy helps Yoga reduces the cost of advertisement and marketing of the firm and eventually maximize on profits.

2) Industry environment 

Competition ; Body Alive  operates in very many substitute goods and products that give substantial competition to the Yoga Practice products that include  prAna yoga clothing, ECO yoga mats,  Pilates equipment, yoga music cds, yoga dvd,  , yoga books, and yoga kits ( 2011). These alternative products reduce the demand of the wares with some being pirated like the Yoga music CDs is states where anti-piracy laws are not fully implemented. Yoga must therefore determine the products of the rivals to be competitive and to determine the threat of being substituted from that market.

We will write a custom essay on your topic
0 writers online
Learn More

Suppliers and Buyers bargaining power; the company needs to identify and maintain suppliers and buyers to ensure that the supplies are always provided and customer loyalty it developed   depending on their level disposable income, a factor necessary in price setting.

Economies of Scale; this is a concept that explains that the higher the number of sales the higher the revenue and profit respectively (Harrison 2010).Yoga through product differentiation by having over 10 brands in the market surving the different customer interests. The capital investment has been necessitated by the growth in the last decade. The company however needs to review costs of the products that are commensurate to the sizes and increase the distribution channels to the untapped markets around the world. The company must also comply with the government health policies regulating the physical fitness.

3) Operating environment

This involves the factors that influence competitiveness and success of a firm.  It includes competitive position of the company, reliability, and composition of the customer base, suppliers, and creditors, ability to attract and retain qualified employees.  It also involves internal analysis that include availability of the firm’s industry resources like necessary tangible and intangible assets, firms SWOT analysis to identify the threats and weaknesses that need to be revamped and the organizational structure that efficiently and effectively manage the forms operation to profitability (Muralidaran 2007).

Changes to have major Impacts

Marketing; marketing techniques usually play a very important role in the success of sales in every firm. In the next 10 years, Body Alive under Yoga Studio  should employ new technology that include internet marketing, iPhone, You tube , social chart engines like Facebook and twitter that reach more people at ago worldwide and the use of people marketing. Product positioning remains important in building customer loyalty Market segmentation also needs to be done to clearly identify the target market for particular training and classes. The types of physical fitness lesson usually vary with age of the clients with elderly clients being introduced slowly while younger clients with their swiftness able to perform complex and intense activities. This can be done in line with age, brand taste, and purchasing power to enable the form manufacture customized products that meet specific needs for particular segment (Muralidaran 2007).

3 hour!
The minimum time our certified writers need to deliver a 100% original paper
Learn More

Technological: Yoga needs to be open to the technological advancement that takes place almost every day to be able to adopt cheaper, efficient, and differentiated technologies in the next ten years to be able to compete and sustain steady production of the practice products.

Demographic changes; Body alive needs include brands that are healthier and children sensitive. Obesity in children, arthritis, diabetic and heart related health complications is currently global challenge with major causes being lifestyle. This therefore a great business opportunity for Yoga Studio and its affiliate companies including Body Alive to extend their classes, workshops, seminars on physical education and practices to its target market prevent or contain such health related conditions among the world populations. This wills create a big impact in the next 10 years.

How Body Alive meet customer needs

Body Alive under Yoga Studio concentrates on relaxing stressed out and tired people by giving them gentle and nurturing class lessons that can help them restore your energy. The company has created differentiated lessons depending on the needs and comfort of the clients like level 1, intermediate classes, better Backs, Restorative Yoga, Hartha Yoga for strengthening muscles and Private class.

Yoga studios also provide quality product necessary for the physical lessons and practices like Yoga equipment, kits, and books for reference, music, and cds that guide the clients even in their homes.

Body alive and Yoga student should however open more outlets in the respective countries for easy access by the clients without online order. This is because many clients may not have the knowledge to order the items online.

Body Alive long -term objectives

  • To be a leading physical fitness products provider and trainer in the world by 2020
  • To double  revenue collection on physical fitness products  by 2015


The success of Y Company depends on the Business environment around the firm. In is therefore imperative for environmental analysis to be done comprehensively before and during the operation of the firm. The major factors to consider include the remote environment that involve economic, political, social, and technological, the industrial environment, and the operational environment. When these finding are fully implemented, Pepsi customers will be fully satisfied as well as the company having steady growth.