...I. STATEMENT OF THE PROBLEM Body Shop has been so successful while defying industry norms. It is now questionable for the business to survive as it enters the highly competitive market with its different kind of retailing approach. II. STATEMENT OF OBJECTIVES a. To defend itself against the wave of new competitions b. To maintain the growth, as well as the profitability of the business III. AREAS OF CONSIDERATIONS STRENGHT Brand Innovative products High brand loyalty Successful leadership skills Opportunities Growth in men's skin care products Increasing number of online buyers Aging population Weaknesses Declining stage. Lack of advertising. Losing trust from different stakeholders. Threats No marketing department and no advertising department. Environmental management system is not certified to an efficient standard. Improve operational efficiency Reduce inventory holding cost IV. ALTERNATIVE COURSES OF ACTION 1. Improve the brand image of the business • ADVANTAGE: A. Will attract more consumes and investors. B. Will gain the trust of the public. • DISADVANTAGE: A. It will incur cost. B. It will gain more responsibility to the public. 2. Enhance operational efficiency • ADVANTAGE: A. It will reduce product cost B. It will inventory holding cost C. Achieve reduction in overhead cost. • DISADVANTAGE: a. It creates shortage in their inventory b. It could affect the quality of the product. c. Productivity...
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...CORPORATE STRATEGY EXECUTIVE ANALYSIS THE BODY SHOP The following analysis investigates how the organization assesses its own business whilst taking into account its different key stakeholders and their various interests and expectations by looking deep into a case study of The Body Shop. On the final note, it will determine what learning benefit the case of The Body Shop provides as well as whether its principles can apply to other situations. Introduction: The Body Shop In 1976, The Body Shop was established in Brighton by Dame Anita Roddick. The Body Shop International now has over 2,900 stores across 63 markets with a range of over 1200 products. The Body Shop story is not only of an eminently successful market-oriented manufacturer and retailer of toiletries and cosmetics. Like its founder, the whole organization is committed to issues such as respect for human rights, animal and environmental protection. The organization has arranged and supported national and international campaigns on animal testing in the cosmetic industry and women’s rights. All business organizations need to make a profit to survive but the emphasis at The Body Shop is on profit with a wider social responsibility. The Body Shop Mission Statement * “Dedicate our business to the pursuit of social and environmental change. * Creatively balance the financial and human needs of our stakeholders employees, franchisees, customers, suppliers and shareholders. * Courageously ensure that...
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...on is Body Shop International PLC (and will be referred to as Body Shop in this case study). I will be writing on Body Shop’s background, their campaign against both animal testing and sex trafficking with an emphasis on sex trafficking. Body Shop has not faced any problems that I could find information on. Also, there is not much that I would do different then Body Shop. The company I chose to do my case study on is Body Shop International PLC (and will be referred to as Body Shop in this case study). Body Shop calls there selves “the original, natural and ethical beauty brand”[1]. They have over 2,500 stores in 60 markets worldwide. This company intrigued me due to the fact that they hold their self at a high accountability not only to the community around them but the world as a whole. Anita Roddick, human activist and founder of Body Shop said “The business of business should not be about money, it should be about responsibility. It should be about public good not private greed.”[2] Anita Roddick died in 2007 but Body Shop has continued to uphold her vision in there everyday business practices. To quote their website “people are the heart and soul of our business” and so is the environment. Body Shop seeks and sustains natural materials and ingredients as they feel “using all our planet’s resources wisely” guides their approach to business[3]. Body Shop was one of the first to take a stand against animal testing in the cosmetic industry. As such, Body Shop continues...
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...Teaching Case ______________________________ Journal of Applied Case Research Sponsored by the Southwest Case Research Association “BUSINESS AS UNUSUAL”: A CASE STUDY ON THE BODY SHOP Subhadip Roy ICFAI University, India Lopamudra Ghosh ICFAI University, India © Journal of Applied Case Research Accepted: September 2008 2 “BUSINESS AS UNUSUAL 1 ”: A CASE STUDY ON THE BODY SHOP “The business has existed for one reason only – to allow us to use our success to act as a force of change, to continue the education and consciousness-raising of our staff, to assist development in the Third World and above all, to help protect the environment. What we are trying to do is to create a new business paradigm, simply showing that business can have a human face and a social conscience”. - Anita Roddick (1991) 2 ANITA RODDICK STEPPED DOWN AS THE BODY SHOP CHAIRPERSON February 2002, the founder of one of the biggest cosmetics companies in the world, Anita Roddick (Anita) stepped down as the chairperson of the Body Shop along with husband Gordon Roddick (Gordon), who was a co-chair along with her. A number of controversies in the mid and end 1990’s had badly affected the company’s image as doing “business with a human face” as opined by Anita in the quote given above. Periods of losses, coupled with poorly motivated shareholders, de-motivated franchisees, unsuccessful restructuring attempts and public propaganda against the company was proving to be too strong for the company...
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...The Body Shop in Malaysia Introduction Background of the Body Shop The Body Shop International PLC（Public Limited Company）, known as The Body Shop, has a range consisting of 1,200 products, including cosmetics and make-up in its 2,500 franchised stores in 60 countries. The company, which has its international headquarters in Littlehampton, West Sussex, England, was founded in 1976 by Anita Roddick and is now part owned by L'Oréal.From its first launch in the UK in 1976, The Body Shop experienced rapid growth, expanding at a rate of 50 percent annually. The Western Malaysian operation includes more than 64 stores and is operated by a The Body Shop Franchisee, Rampai-Niaga Sdn Bhd, under license by The Body Shop International plc. Corporate Culture and the Valves Five core values.Support Community Fair Trade, Defend Human Rights, Against Animal Testing, Activate Self-Esteem, and Protect Our Planet. Against animal testing.the Body Shop web site explains that the organisation does not sell or use either finished products or ingredients that were tested on animals after 31 December 1990. Trading fairly. The body shop set up their own fair trade programme, called Community Fai Trade.Community Fair Trade now works with over 30 suppliers in more than 20 countries, providing over 25,000 people across the globe with essential income to build their futures. Most of our products contain Community Trade ingredients. Social activism.Over time, Roddick blossomed into...
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...The body shop international: An Introduction to financial modeling The body Shop Case study Question 1: Base Case Assumptions In order to derive this forecast, ‘percent-of-sales’ forecasting was used, which involves initially forecasting sales and then forecasting other financial statement accounts based on their direct relationship with sales. This method of forecasting was used due to the lack of information available (only the last three years of financial statements). As a result, every account in the pro forma financial statements are based on one or more key assumptions about their relationship with sales: Sales: It is assumed that sales turnover will continue to grow at a rate of 11% every year. This figure is the historical average of growth (change) in the last 3 years and reiterates Patrick Gournay’s plans to increase sales. It is unlikely that the firm will be able to achieve 20% growth again as the firm has reached its ‘maturity phase’ in the business cycle (further discussed in 3). COGS: A historical average was taken to get an initial percentage of 40% and then it was assumed that this would decrease at rate to the power of 1.05. The reason for this assumption is because Gournay stated that he aimed to specifically target and reduce costs. However, change is often initially met by resistance, so there may be considerable time lag for large-scale changes to occur. For this reason it is assumed that COGS would decrease at an exponential rate to the power...
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...The Body Shop International PLC 2001: An Introduction to Financial Modeling Written Case Analysis Mitchell Bredberg-(12205176) Mitchell Sovis-(12156556) Jake Rux-(12159615) Zach Dorer-(12171436) Finance 465-001 11/10/15 I. Executive Summary Anita Roddick was the founder of The Body Shop International PLC. Despite growing a successful business, the company recently ran downhill after losing revenue growth starting in the late 1990s. One of the major problems was intense competition. This unexpected phenomenon caused The Body Shop to lose its image of being the “go to” place in Great Britain’s many shopping venues. Later on, a new CEO, Patrick Gournay, took charge and was faced with a declining pretax profit of twenty-one percent. Facing a dilemma, Gournay’s recommended plan of action included a focused product strategy of increased investment. He was confident this strategy would produce improved results. To be effective, this strategy incorporated a reduction in product and inventory costs as well as a reinforced stakeholder culture. To justify the course of action with this strategy, we will prepare a three-year financial forecast to help predict The Body Shop’s future earnings and financial needs. This forecast will be based on The Body Shop’s historical financial statements to create the best possible financial model going forward. II. Statement of the Problem When Anita Roddick was still CEO, the main problem affecting The Body Shop was not being...
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...The Body Shop Stakeholder Panel Review 31 August 2008 Mission Statement ‘Dedicate our business to the pursuit of social and environmental change. Creatively balance the financial and human needs of our stakeholders: employees, customers, franchisees, suppliers and shareholders. Courageously ensure that our business is ecologically sustainable, meeting the needs of the present without compromising the future. Meaningfully contribute to local, national and international communities in which we trade by adopting a code of conduct that ensures care, honesty, fairness and respect. Passionately campaign for the protection of the environment, human and civil rights, and against animal testing within the cosmetics industry. Tirelessly work to narrow the gap between principle and practice, whilst making fun, passion and care, part of our daily lives.’ The Mission Statement of The Body Shop requires us to run our business in a way that balances economic, social and environmental needs. As well as assessing ourselves against our Mission Statement we also ask for comment from those outside the business with whom we share common objectives. In June 2008,The Body Shop International held a stakeholder panel review meeting The aim of the panel was to invite NGO’s to comment on current social and environmental performance within the business and help shape the future of The Body Shop sustainable development agenda. The 2008 stakeholder panel consisted of representatives from the British Union...
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...Words: 1586 Explain the relevance of the Marketing Concept to the 21st Century business of your choice? This essay will explain the relevance of the Marketing Concept to the 21st century business the Body Shop International plc. As well this will observe how Anita Roddick successfully adapted marketing concept to the Body Shop by creating satisfied happy customers and company goal achievement. There have been a growing number of companies over the years which influenced the increasing density of the business, different marketing concept have used to boost the businesses. Many of authors have found different ways to customise marketing concepts and one of the earliest famous people suggested, that the defining characteristic “the marketing concept holds that achieving organisational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do” (Kotler and Armstrong 2010, p.34) The above term shows that without customers, there is no sale. Without satisfied customers, there is no profit. Without delighted customers, there is no repeat business, as “companies achieve their profit and other objectives by satisfying (even delighting) customers” (Jobber 2007, p. 4) To apply this concept, three conditions should be met: 1. Company activities should be focused upon providing customer satisfaction rather than, for example, producer convenience. 2. The achievement of customer satisfaction relies on integrated...
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...The Body Shop International Case Study The Creator- When one read the words The Body Shop one would think of working on cars. Not for Mrs. Anita Roddick, she thought of The Body Shop as a way to give women what they had been looking for in cosmetics. Mrs. Anita Roddick was born in England in 1942, to Italian immigrants. She was a human rights activist and an environmental campaigner; she was also the founder The Body Shop. The Body Shop was a cosmetics company that produces and sold beauty products. The Body Shop was the first company to prohibit its ingredients on animals and one of the first to encourage fair trade in other third world countries. Mrs. Anita intention of creating this company was to make money for her daughters and herself while her husband travels the world instead the company became a multi-billion company. The Body Shop had 1980 stores serving over 70 million customers all over the world by 2004. In 2006 Mrs. Anita sold her multi-billion company to L’Oreal, which caused problems. The problem came because Mrs. Anita would let her company use animals as test subjects and L’Oreal did. She was very active with charity for children and other works. Sales from The Body Shop went down south. The Beginning- Mrs. Anita had several jobs before she decided to create The Body Shop. In 1976 Mrs. Anita founded The Body Shop and it grew rapidly over the years. After being the CEO of her company in May 1998, Anita Roddick stepped down and appointed Patrick Gournay as...
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...Introduction The Body Shop is the second largest cosmetic franchise in the world and a global manufacturer as well as retailer of naturally inspired. It has 2,400 stores which are located in 61 countries all around the world. The registered name of The Body Shop is called The Body Shop International plc and it’s headquarter is placed in Littlehampton, West Sussex, England. The Body Shop is well known for its cosmetic products such as Body Butter, Peppermint Foot Lotion and Hemp which are manufactured by natural ingredients. The Body Shop instituted pioneering social responsibilities and ethical stances as their key branding strategy which emphasized on “Natural” and “Environmentally Friendly”. For example all their ingredients used to produce their products are not tested on animals; they give monetary donations to the communities and they had business partnership with developing countries, compared to its products. From the view on the history of Body Shop, Anita Roddick and her husband Gordon Roddick were enthused to company a beauty products store after seeing a store called ‘The Body Shop’ in Berkeley, California during their visit to United States in 1970. The shop sold cosmetics products ranging from shampoos, lotions, and body creams in small plastic containers. On the 27 March 1976, Anita and Gordon opened a copycat version at 22 Kensington Gardens, Brighton, England, also calling their new store “The Body Shop”. Besides, they also copied the green color scheme as well...
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...The Body Shop Cosmetics: Evaluating The Influence of Social Media in the Business of Socially Conscious Cosmetics Mbalia Albatul Kamara CAPELLA UNIVERSITY MBA60004 Introduction The cosmetics industry persists because of the female demographics’ need for and quest for a youthful appearance. Thus the use of the Internet to advertise a company’s products and share information with its consumers has made the business industry very accessible to people around the globe. And it has also influenced the means to which companies market their products and communicate with their customers. As such there is no truer industry where digital communications and social media interactions between the customers and their preferred brand is of utmost importance than within the cosmetic industry. According to Richardson, Gosnay and Carroll (2010), E-marketing allows companies to more specifically attract new customers, to adapt to the needs of their customers and most importantly strengthen their brand and reinforce the relationships with existing and new customers. Therefore access to social networks such as YouTube, Facebook and twitter has broaden the scope for digital interactions; these networks allow companies to build their own fan pages for customer interactions where they can ask questions, give feedback, and comment on the company’s activities (Schmidt & Birkhoff, 2013). This paper will examine the cosmetic company: The Body Shop (TBS) and explore the efficacy of...
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...The Body Shop International plc, known as The Body Shop, founded in the UK in 1976 by Dame Anita Roddick. The Body Shop is a global manufacturer and retailer of naturally inspired, ethically produced beauty and cosmetics products. It is the second largest cosmetic franchise in the world. Its carries a wide range of products for the body, face, hair and home with a range of over 1,200 products, all animal cruelty free, and many with fairly traded natural ingredients. The Body Shop has emphasized its support for a wide range of issues around the globe. Its core values are: Against Animal Testing, Support Community Trade, and Activate Self Esteem, and Defend Human Rights, and Protect Our Planet. The Body Shop spans over 50 countries and 21 languages and employs more than 6,000 people in company stores, regional offices, and the UK-based Service Centre. Now have over 2,100 stores in 55 countries. Such a big international company is not easy to manage it, but The Body Shop has done it well in its administrative. Specializing of labour Management realized that specializing of employees encourages continuous improvement in skills and the development of improvements in methods and specializing leads increases the efficiency of labour, so that The Body Shop establish a global ‘Centre of Excellence’ for learning and development of retail employees that identifies and delivers best in class customer service . All employees are invited to attend an induction program within three months...
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...summary Body Shop International (Body Shop) is a multinational company which is mainly producing ecological skin and hair products. Their products are solely based on natural ingredients and manufactured according to an ethical code which is opposed to animal testing. The cosmetics franchise is considered to be one of the biggest around the globe with a well established reputation in 54 countries. L’Oreal, the dominant company in the beauty industry, acquired Body shop in 2006. Although Body Shop has become a subsidiary of L’Oreal S.A it still acts according to its own policy, values and ethical code. The acquisition has solved Body Shop’s financial problems and has provided the means for expansion to a bigger market share. Introduction This report will be a SWOT analysis of Body Shop’s retail outlet in Canada Water. It will mainly focus on: • Strength, weaknesses, opportunities and threats of the particular retail outlet. • What was the effect of the acquisition on the particular branch. Findings Strengths • Brand Loyalty – Body Shop is greatly dependent on its brand reputation which is a critical factor in sales. Due to its unique products, it has come out to be seen as one of the most environmentally friendly retailers. • L’Oreal’s support – By being a subsidiary of L’Oreal, Body Shop appears to have an increase in sales. Furthermore, L’Oreal’s experience in advertisement and marketing can boost overall sales. • Niche marketing – Body Shop targets...
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...Roddick began to write the fabulous history of The Body Shop from a small boutique in Brighton, UK, starting out with a simple but totally new idea: ‘companies have the power to change the world’. Today, with sales of more than £1bn, The Body Shop brings innovative products and ground breaking values campaigns to customers all around the world. The Body Shop Values The five core Values of The Body Shop are as relevant today as they were when Anita Roddick first set them out: the brand is always looking for new ways to bring them to life. The Body Shop teams believe that these Values are at the heart of the brand’s commercial success and that they are the key to growing the business. As going forward, more creativity is always needed to bring this message to consumers in search for brands with principles that they can trust. A retail business model With more than 2,600 stores in 65 countries and territories, The Body Shop is a worldwide player in the single-brand retail based sector of the beauty industry. The store is the single biggest point of contact with the brand today and provides a great opportunity to experience the brand, engage customers and build support with the Love Your Body customer loyalty programme. The Body Shop focuses on offering friendly and personal services around storytelling, while creating a stronger sense of theatre to give customers a consistently memorable experience. For several years now, The Body Shop has opened the majority of its new stores in new...
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