Executive Summary The Body Shop International PLC has been facing a myriad of issues in the late 1990s. At its creation‚ the body shop has seen tremendous growth and success. The company thrived to bring a new revolutionary business model and was extremely successful. But after those successful years in the early 1990s‚ the competition became fierce as new entrants came and absorbed parts of the market. This led to declining sales and profits for the company as they were not able to differentiate
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paper forecasts next three-year earnings and financial needs of The Body Shop. Due to lack of information‚ this forecast based on some key assumptions about the relationship between sales and other accounting ratios‚ firstly forecast sales then forecast other ratios in financial statements. Sales: It is assumed that sales growth ratio will maintain at 11% next three years due to the need of increasing revenue of The Body Shop. This figure is the average growth rate from 1999 to 2001. COGS: The
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founder‚ The Body Shop International In the late 1990s‚ The Body Shop International PLC‚ previously one of the fastest growing manufacturer-retailers in the world‚ ran aground. Although the firm had an annual revenue growth rate of 20% in the early to middle 1990s‚ by the late 1990s‚ revenue growth slowed to around 8%. New retailers of the naturally based skin- and hair-care products entered the market‚ bringing intense competition for The Body Shop. Amidst the competition‚ The Body Shop failed to
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THE BODY SHOP RETAIL STRATEGY INTRODUCTION The Body Shop International plc‚ known as The Body Shop‚ has 2‚400 stores in 61 countries‚ and is the second largest cosmetic franchise in the world‚ following O Boticario‚ a Brazilian company. The Body Shop is headquartered in Little Hampton‚ West Sussex‚ and England‚ was founded in 1976 by the late Dame Anita Roddick and is now part of the L’Oreal corporate group. The Body Shop is a manufacturer and retailer of skin and hair care products based
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a. Where in the value chain is the organisation creating value for their customers? Primary: Value chain activity Yes/No How does The Body Shop create value for the customer? Inbound Logistics No Not imperative to creating value to the customer. Operations Yes Operations and technological development are covered in the The Body Shops stance on animal testing (one of their values). Testing comes under operations and technological development as they have had to think of innovative ways to test
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July 2006‚ L’Oréal welcomed The Body Shop to its family of brands. L’Oréal places great value on The Body Shop’s exceptional emphasis on being a sustainable and ethical business. It intend that close co-operation between their businesses will result in shared best practice and the identification of opportunities for improving L’Oréal sustainability performance. For example‚ in December 2006‚ L’Oréal joined the Round Table on Sustainable Palm Oil‚ partly due to The Body Shop’s experience on this issue
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that soften the learning effect (such as Japan and Germany). And in situations where the risk is high and sales are low‚ where the cost of building its own stores is very high‚ acting through franchising (Middle East and Scandinavia). PESTLE Review PESTLE describes six
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For this task I am required to identify my chosen organisations objectives and aims. My chosen organisation is The Body Shop‚ its objectives and aims are diverse compared to other businesses that are on the markets for expansion and profitability. In this task I am going to consider the most common objectives and aims‚ in doing so‚ I will compare its objectives and aims to other businesses. Business objectives are the stated‚ measurable targets of how to achieve business aims. For instance‚ we want
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The Body Shop Jamie Drozdz Jennifer Smith-Izzo The Art Institute of Phoenix The Body Shop was first introduced in the 1970’s by Anita Roddick. It all started when Anita walked into a shop located in Berkeley‚ California by the name of The Body Shop and there they sold naturally scented soaps and lotions. This inspired Anita to open her own shop in the UK. She purchased the original naming rights then launched her first shop on March 26th 1976 in Brighton‚ England. The
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The Body Shop Based on our projections for the years 2002-2004‚ the biggest driver that effects debt is the company’s operating expenses. Based on the history of the upward trend of operating expenses‚ our recommendation is that The Body Shop needs to concentrate on lowering the operating expenses‚ and keeping those expenses around 45% or lower in order to avoid borrowing money. Our 45% recommendation includes a safety net which will prevent having The Body Shop borrowing cash if sale do not continue
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