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 International PLC 2001: An Introduction to Financial Modeling The following graph presents the forecast for the Body Shop’s income statement and balance sheet in 2002 to 2004: How did you derive your forecast? Why did you choose the “base case” assumptions that you did? The forecast takes into considerations the stated business objectives of the Body Shop as well as trends or patterns in the historical financial statement in exhibit 8. Further information on the calculations and
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Executive Summary The Body Shop International PLC was once one of the fastest growing manufacturer-retailers‚ but in a decade’s time their revenue growth slowed from 20% to nearly 8%. These types of results were not uncommon in companies who are experiencing rapid growth but this was a dramatic decrease and‚ needless to say‚ a wake up call to management. Competition was increasing and The Body Shop had failed to establish a brand presence during its expansion. Anita Roddick‚ founder and CEO‚ attempted
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The Body Shop International PLC Watersmead Littlehampton West Sussex BN17 6LS‚ United Kingdom Phone: +44-1903-731-500 Fax: +44-1903-726-250 Primary US Office: Subscribers Only http://www.the-body-shop.com Hoover’s coverage by Alex Biesada Overview Promoting beauty in the customer’s eye instead of the beholder’s‚ The Body Shop International sells skin and hair care products so natural they sound edible (Peppermint Foot Lotion‚ Banana Shampoo). The company combines activism with marketing
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The Body Shop was one of the fastest growing manufacturer- retailers in the late 1990s. However‚ throughout the years‚ they failed to maintain its brand image by becoming something of a mass-market line. Anita Roddick‚ the shops founder and Patrick Gournay‚ CEO are looking for assistance in short and long-term planning for The Body Shop. The goal is to yield practical insights while being straightforward. To get started‚ we assumed the growth rate for sales is 13%; the cost of goods sold percent
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The Body Shop International Case Study 1. The assumptions that were used to derive the numbers in this forecast were found by taking the averages of the historical data that was given for 1999-2001. Instead of using the assumptions that were given by The Body Shop‚ I thought it would be more practical to use the trends shown in the historical data since that is more relevant to what might happen‚ rather than what The Body Shop wants to see happen. Of course it is possible to take reducing
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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
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The Body Shop International In this case‚ the key is to understand and study the conditions and circumstances of how revenue grew by 13 percent and the decline in pretax profit of 21 percent in 2001. The underlying factor that caused this‚ would be the company’s lack of forecasting‚ which would be the usage of the financial modeling. The financial model gives a better forecast prior to the project as well as a good monitor during the project. For the forecast‚ we only had financial statements from
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Assumptions We are going to show a three years forecast for The Body Shop International; it consists of three main objectives: • To enhance The Body Shop brand through a focused product strategy and increased investments in stores; • To achieve operational efficiencies in the supply chain by reducing product and inventory costs; • To reinforce the stakeholders culture. We extrapolate each account using the percentage of sales of year 2001 to have a first look on the evolution
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History of The Body Shop International In the early to mid 90’s‚ the revenue growth for The Body Shop was at least 20% each year. The Body Shop was able to grow at a fast pace early in the decade because of the lack of competition. Over the course of the decade‚ competition grew fierce‚ and‚ by the end of the decade‚ revenue growth fell to 8%. Another reason for the slow growth in the late 90’s was the over expansion in the previous years. The Body Shop was in almost every mall in America (and
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