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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SUMMARY OF THE BODY SHOP INTERNATIONAL With a £4‚000 bank loan‚ Roddick developed a line of 25 skin and hair care products based on natural ingredients. Sourcing exotic ingredients like jojoba oil and rhassoul mud from a local herbalist‚ she prepared the first product batches on her kitchen stove and packaged them in the cheapest containers-urine sample bottles. Handwritten labels provided detailed information about the ingredients and their properties. A local art student designed the logo for
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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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The Body Shop International CASE ISSUES: Market Saturation/Loss of Sales (CI#1) - Growth Strategy is no longer working for The Body Shop. Their store growth has diminished since the mid-1990s‚ and by 2002 the company’s profit was shrinking‚ and sales were not growing proportionally to the rapid expansion of stores. Having entered a retrenchment phase‚ they need to focus on profitability without rapid expansion. Is Anita Gone? (CI#2) - Though Anita Roddick stepped down as CEO in 1998‚ and resigned
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Porter’s 5 Forces Analysis of French Automobile Industry and Extent of each competitive force The five forces are environmental forces that impact on a company’s ability to compete in a given market. The purpose of five-forces analysis is to diagnose the principal competitive pressures in a market and assess how strong and important each one is. Threat of new entrants | small It’s true that the average person can’t come along and start manufacturing automobiles. There are substantial commercial
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consolidation with the fittest carriers surviving and the rest being acquired or going out of business. Analysis of the airline industry To determine the profitability of the airline industry‚ we will do an industry analysis using Porter’s five-forces framework. This industry analysis will help us in understanding the size of the Potential Industry Earnings (PIE)‚ and how much of this the different participants can extract. Rivalry among competitors There is intense rivalry among different
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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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Case Analysis The Body Shop MBA 223 Social Responsibility and Good Governance CASE STUDY No. 1 1. VIEWPOINT The Body Shop faced lots of criticisms and challenges. There were periods of losses‚ poorly motivated shareholders‚ de-motivated franchisees‚ unsuccessful restructuring attempts and negative public propaganda against the company‚ proving to be too strong for the company to cope up. The main reasons behind the success of
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channel-specialty stores The Body Shop in Macau doesn’t set any retailers. It has three specialty stores. The distribution channel of specialty stores help The Body Shop gain advantages when enhances its brand equity. The three specialty stores of The Body Shop are all locates at downtown district of Macau. The big green eye-catching logo of The Body Shop will attach many passably and build very strong brand awareness to customer. And at the same time‚ the professional facade of the shop makes the brand image
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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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