The body shop was the first international cosmetics company to sign up to the Humane Cosmetics Standard, supported by leading international animal protection groups. The Body Shop Values Reports are recognized (1995 & 1997) as trailblazing by United Nations Environmental Program and Sustainability, and ranked highest in their review of International Corporate Environmental Reports. The Body Shop is the first global retailer to join the Board of the Roundtable for Sustainable Palm Oil, working with NGOs and plantations to protect tropical rainforests and improve the human rights of workers and indigenous people. The Body Shop is the winner of PETA's Proggy (progress) awards for its ongoing commitment to avoid animal testing. During 2005 The Body Shop was awarded for achieving higher standards of animal welfare in the cosmetic category at the first annual awards of the Royal Society of Prevention of Cruelty to Animals in the UK(3***************)
Corporate & Social responsibility
Corporate social responsibility (CSR) or corporate citizenship entails companies behaving in a socially responsible manner, and dealing with other business parties who do the same.It imlpies: An obligation, beyond that required by the law and economics, for a firm to pursue long term goals that are good for society The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as that of the local community and society at large About how a company manages its business process to produce an overall positive impact on society. The Body Shop is a manufacturer and retailer of naturally inspired, ethically produced beauty and cosmetics products. According to The Body Shop Corporate Social Responsibility website, "If business comes with no moral sympathy or honorable code of behaviors, then God help us all." is The Body Shop's mantra. Let's discuss few examples to see how does it is applied at Body Shop. a)Sustainable Supply Chain Strategy The Body Shop works with its suppliers to promote socially responsible practices in its supply chain as part of its supply chain strategy. This is part of its wider Framework for Corporate Social Responsibility . The Body Shop launched Community Trade. It is a targeted supply chain strategy to purchase natural ingredients and accessories from socially or economically marginalized communities around the world. It gives these producers access to a market that would otherwise be out of reach and provides a fair and reliable income, as well as a commitment to creating a sustainable business. For example, The Body Shop's moisturizing socks produced by a Community Trade Supplier, Craft Aid in Mauritius, provides employment to 160 people, 40% of which have disabilities. b)Engaging the Community through Community-based Projects One approach to engaging in corporate social responsibility is through community-based development projects. An example The Body Shop's launch of the 2008 Stop Violence in the Home campaign on the theme of friendship. By providing practical tools to empower women to provide support to friends in need, the campaign aimed to be a source of inspiration and support for millions of women around the world. . The Stop Violence in the Home campaign also raised £1.9 million by 2008 and reached 56 markets. In each market, all the funds raised were donated to the chosen non-profit charity organization, to help fund vital projects of prevention, support, and protection for women and children. 4) Body Shop and Compaigns The campaign for UK-wide ban on animal testing of cosmetic products and ingredients started in November 1998, and the largest ever petition (four million signatures) being delivered to the European Commission in 1996. Homeless people: The Big issue paper for homeless people began as a The Body Shop Foundation project launching in 1991. Awareness of HIV and AIDS amongst young people: In 2007 The Body Shop joined hands with MTV to raise funds and awareness about HIV and AIDS amongst young people.
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Ethical Marketing
As a cosmetic retailer, The Body Shop defied most accepted marketing practices. In an industry where 30 cents on every dollar of sales was typically devoted to advertising, the company had no marketing or advertising department. They operate according to criteria, which places more emphasis on human values than on strictly commercial considerations.A Anita Roddick spends most of her time doing the marketing activities such as campaigns and conferences. The Body Shop never advertised in newspapers or magazines because this type of promotion would increase the cost of the product. For The Body Shop, the most effective and useful way of advertising is to use its shops and its staff, as well as using issues awareness, such as "Activate Self-Esteem". Example The Body Shop launched a campaign using the "Ruby Doll" - a realistic looking doll to promote real women. They used it in their stores, hosted debates, funded research, and held conferences all related to self-esteem, all activities that point back to The Body Shop. Anita Roddick said about advertisement "There's no example of anyone doing what we're doing in America and making it workA¢â‚¬A¦"
source (7) Organization values "Business organization are not just for the profit -their resources can be used to promote wider purposes .the inspiration and the set of values associated guide the trading principles of body shop management, which are : They aim to ensure that human and civil rights, as set out in the universal declaration of human rights, are respected throughout their business activities. They will support ling term, sustainable relationship with communities in need. They will use environmentally sustainable resources wherever technically and economically viable They will promote animal protection throughout their business activities and in many ways The overall corporate culture and marketing stategies of Body Shop support these ethical values. Body Shop organizational structure and global expansion The Body Shop operates within a regional divisional structure. Centralized head offices in the United Kingdom (London and Littlehampton) maintain global corporate and support functions. The company is then divided into four regions: UK and the Republic of Ireland (ROI), the Americas, Europe, the Middle East, and South Africa, and Asia Pacific. Within each region are both company-owned stores and franchises as outlined. The divisional nature of the structure allows regional managers to "focus efforts on improving operations in the (regions) for which they are responsible and the corporate officers can devote their time to overall strategic issues for the entire corporation" (Dess G., 2006, p. 297). . This structure helps to accommodate rapid expansion . Within the divisional structure and critical to TBS's international expansion strategy is master franchising, "whereby the franchisor (TBS) grants the master franchisee (the regional division) the right to franchise the franchisor's concept to others within an exclusive territory, creating a tripartite agreement." (Doherty, 1999) "By appointing a head franchisee in each major national market,Roddick was able to concentrate on the development of new productlines and the company's global vision, rather than worry about the complexities of administration or personnel management" (HBR p. 4). Under this structure, there is a free-flow of information between headquarters and regions, however the regional divisions become responsible for providing information and monitoring the sub-franchisees. It also allows Body Shop head office to focus on corporate strategic issues. (8)(1***************) Stakeholder culture Its stakeholder culture is its core competence. This culture includes everything from commitment to the community, to the environment and to the protection of animals. The use of stakeholder consultation in combination with public reporting is a great way to assure that that organization is maintaining their commitment of delivering value to the stakeholders. 9) (1***************) Task 5 Discuss entrepreneurship and leadership style of founder,Anita Roderick. 500 Words Anita roddick- entrepreneur An entrepreneur is one who organizes, manages, and assumes the risks of a business or enterprise. Entrepreneurs live in the future. They have creative personalities, are innovative, and thrive on change. Anita Roddick is certainly a great entrepreneur. Everything that embodies her exploits involves education and change.()----definition. Entrepreneurs have a vision of something new and they want to see how far it can go. Entrepreneurs find the best way of pushing ideas along. Entrepreneurs use money to oil the wheels of success. Entrepreneurship has three parts, the person, the idea and the resources For example her "trade not aid" has invaluable consequences for nations and people around the world. But that is what entrepreneurs do! Entrepreneurs make change. Lets discuss few qualities of Anita as an entrepreneur. control Factor She prefered environments where they have maximum authority and responsibility and do not work well in traditionally structured organizations. Like Entrepreneurs she had a need to create and achieve by having control over events.it is important as it helps demonstrate the self-determination of an organisation, which helps determine a higher rate of entrepreneur activity. Risk Taking Entrepreneurs are determined to engage in risky actions in order to come up with new prospects.Likewise she has the courage and the persistence to engage in her venture, even without the assurance of succeeding.. It may look like she is taking high risks, but in actuality she had assessed the risks thoroughly. Entrepreneur's value system The third personal factor is the entrepreneur's value system, which entails examination, understanding of one's place in the society, and the individual's idea about persons and things . They have a never-ending sense of urgency to do something. This corresponds with a high energy level.This includes the perception and the achievement motivations of the entrepreneur, for their values determine their attitude towards their dedication with their work. Entrepreneur's problem solving style Innovation and problem solving capabilities are expected to be the core of the entrepreneurial capability of an entrepreneur, for they are faced with a number of challenges as they try to implement new ideas and solve problems, so their innovativeness counts. This helps entrepreneurs identify relationships in complex situations. Chaos does not bother them because they can conceptualize order. Problems are quickly identified and solutions offered. Employees/Environment ''Most businesses focus all the time on profits, profits, profitsA¢â‚¬A¦I have to say I think that is deeply boring.I want to create an electricity and passion that bonds people to the company''.(Anita Roddick) she always strived hard to provide and maintain healthy cultures, where employees felt the belief that they are part of an exciting future.They come to work with a fire inside them, a result of clearly stated leadership and business practices that everyone explicitly understands.Every person in the company knows how to individually contribute to its future.As an great entrpreneur Anita Selected Staff that Support the Vision of the Corporation. Corporate Governance-Anita's Decision -making As part of the efficient qualities of Roddick entrepreneurship, the Body Shop is actually considering the concept of effective corporate governance as their competitive advantage.Anita Roddick, as head of the decision-making body of the company, created a good system not only in selling their products but also in maintaining expressive relationship to their overall stakeholders. The Board of Body Shop has been able to attain complete control of all matters regarding the company. Their self-perseverance and obligation to their duties and finally, their obedience to the company laws all contribute to the development of the corporation. The Board's authority is clearly recognised within the company. And because of this, it is able to have a solid grip on the corporation's actual operations, stakeholders and its financial concerns. Clearly, these facts prove the strength of the company's corporate governance structure which is actually reflection of entrepreneur skills of Anita Roddick. External factors culture, role models, work experience, education, and environment also contribute to make great entrepreneur. .Anita Roddick's educational and professional career is fine instance in this regard. These factors determine the success in business ventures by its interaction and interrelation, which brings good effects to the company . Continous Strategic growth and strong brand name of body shop is clear example of Anita 's skills as an entrepreneur.(10) Conclusion Dame Anita Roddick deserves the praises for her exemplary performance as an entrepreneur. She has become successful because of the clear goals that she wants her Body Shop to have and attain. In her case, risk undertaking, creativity and being innovative, and beliefs, are the factors that made her a successful entrepreneur. The first step is not to succeed in the marketplace, but to enter the marketplace with a strong identity. The Body Shop is just somebody's body shop. Now, it is everybody else's "body shop." " From product development to human resource management, The Body Shop has been described as "innovative," "daring," and even "radical". But there is no question it was successful." (HBR p. 4) Task6 A discussion on Body shop's position in contemporary era-(discuss in relation to globalisation,emerging management theories,significant internal changes and emerging roles of free market. 800 words. Body Shop has various competitors in cosmetic industry such as Proctor and Gamble, Unilever, Shiseido, L'Oreal, Avon , Revlon Boots ,Nectar ,Bath & Body Works, Origins, and Aveda etc. Let's use follwing competitive business model to analyse Body Shop's competitive environment as general view. Please see Appendex for Porter's Five Forces Industry Competitive Analysis 6.1)SWOT Analysis The SWOT analysis helps to identify major factors in the internal and external environment of a company. A SWOT analysis of Body Shop identifies areas on which the company needs to focus on in order to improve company performance, so that we analysis and see the various stages of the SWOT analysis. 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 - L'Oreal's experience in advertisement,global brand development,investment capital and marketing can boost overall sales. Community Trade -TBS sources low-cost raw material from disadvantaged communities worldwide. As commitment to this program increase, the company will be able to capitalize on these cost savings and value creating activities. Global Position -TBS is located in 55 countries worldwide, reducing its exposure to market risks in one region. Due to this company in a good position and take advantages of growth opportunities in and around these region while increased global awareness of the company. Niche marketing - Body Shop targets a niche market. By stating that it is not testing its products on animals and by appearing to have an ecological profile, it has appealed to customers with ethical issues. Being the only shop in the shopping centre that sells ecological products, has given it advantage in the local market. Charity support - Body Shop provides financial aid in charities by giving small amount of money. Management-it has very focused management and staff due to effective corporate culture. Weaknesses Operation Cost- A decline in profitability was experienced in 2006, due to inefficient inventory supply management and increasing operating costs as a result of reorganization and franchise. Given the growth of the organization and its recent restructuring, it is critical for The Body Shop to focus on improving operational efficiency.A Reducing inventory holdings and improving efficiencies within the supply chain are a great place to start in the context. Untrust on L'Oreal- Body Shop ,unlike L'Oreal, has very strict policy on no animal testing for cosmetic products whci create potential environment of mistrust about new policy of L'Oreal after its acquiring of Body Shop. This indicated a loss of market share within this strategic regions. this decline is likely to be the backlash of TBS'loyal consumers to the change in ownership. That is the weakness in future.Body Shop has to make sure it values and environmental policies should be observed along with L'Oreal. Opportunities Expanding market - Emerging market in developing countries with the increase in consumers spending in developing countries, large markets with high population are emerging in the Russian and Jordanian markets and can now focus on other growing markets in countries such as Pakistan, China and India. The growth potential of these markets is what is driving the growth of entire industry. Male Segmentation- with the growing number of men interested in health and beauty productsthere is expanding tendency for Male grooming products . For example In 2006 the total market for male grooming products reached to $3 billion .This segment has a great potential if the trends continue. They increase products access to customers, increasing awareness, sales.and profits. Internet Channel- As consumers become more engaged on the internet and with direct sales, L'Oreal has the opportunity to expand these channels to their fullest capacity through introducing them in new and emerging markets. Threats L'Oreal different values-As a top performer in C&T industry, L'Oreal is known to support various activities that are not in-line with TBS's values, such as using ingredients tested on animals. The takeover of TBS by L'Oreal has cause some supporters to feel that TBS's values no longer represents their own and they will therefore not support the company anymore. This causes a backlash and resulted in declined sales and profit. Price- Market may become price sensitive.if price is major driving factor for consumer buying behaviour then Body Shop has to revise its pricing strategy to stay in competition because its product prices are comaparatively higher . More Competition-Market segment growth could attract major competion.the wider competition is in the market is always threat to Body Shop both domestically and internationally.so it has to stay one step ahead of its competitors in terms of product design and customer satisfaction. (11)(1***************)
Management Styles at Body Shop
Staff Motivation "Most businesses focus all the time on profits, profits, profitsA¢â‚¬A¦I have to say I think that is deeply boring. I want to create an electricity and passion that bonds people to the company"Anita Roddick (HBR p. 6) The Body Shop has healthy culture,its employees aren't kept in the dark; rather they are supported in the belief that they are part of an exciting future. They come to work with a fire inside them, a result of clearly stated leadership and business practices that everyone explicitly understands. Every person in the company knows how to individually contribute to its future. It has the environment where management encourage staff to ask questions to find better working methods, encourage debate. It is always supportive of new ideas which th keeps people interested and innovative. Such culture involve staff in decision making and it make heroes of employees who personify what company wants to see. It encourages to promote 2 way assessments staff to managers and managers to staff. And it helps to ensure staff that they are not a lone voice. Allow them to grow. Hiring Staff The Body Shop select Staff that Support the Vision of the Corporation .It looks for people who have energy and curiosity. They should be able to take information and run with it. It always aims to employ "big" people with big thinking and big ideas. Employ people that will fit in. General environment at Body Shop Guiding people to the source of their own power. Creating a commitment to common goals and shared values. Weaving social and environmental dimensions into the fabric of the company. There is a tangible sense of euphoria. There is a sense of real energy about the place. There is a sense of joyful amateurism and fun. There is a sense of caring, family and community. (12) Such management styles and healthy corporate culture transform and motivate employees to produce best individual results which contibute to organisational growth and success.they are no more ordinary staff and people ;they are passionate and highly charge team-members contributing organisational sucess,both locally and globally.So,we see from a single shop opening in Brighton in 1976 has sprung hundreds of franchises throughout the world. Anita sees the responsibility of business as being supportive to the community both locally and globally. References 1) 2) 3) 4)Corporate responsibility available on, https://social-corporate-responsibility.suite101.com/article.cfm/corporate-social-responsibility-at- the-body-shop(accessed on 8th june 2010) ( 5)Free market available on https://www.economicsonline.co.uk/Competitive_markets/Economic_systems.html https://www.economywatch.com/market-economy/advantages-market-economy.html https://www.economywatch.com/world_economy/world-economic-indicators/mixed- economy.htm https://www.blurtit.com/q917361.html (accessed on 8th june 2010) (6)Organisational structure on, https://www.provenmodels.com/22((accessed on 18th june 2010) 7) 8) 9) 10)Entrepreneur's Hall of Fame: Anita Roddick, https://www.ltbn.com/hall_of_fame/Roddick.html https://www.mission-coach.co.uk/pages/belief_model_leadership_anita_roddick.asp Roddick, Anita. Interview. The Entrepreneurial Mindset. 04 Sept. 2007 <https://www.cwerty.com/members.asp>. (accessed on 6th june 2010) 11) 12)Leadership styles available on, https://www.mission-coach.co.uk/pages/belief_model_leadership_anita_roddick.asp Hamm, John. "The Five Messages Leaders Must Manage." Harvard Business Review (2006): 1-9. (accessed on 26th May 2010) Source: Henry Mintzberg, Structure in Five: Designing effective organization, Page 279; Book Organizational Theory (Third edition) Stephen P. Robbins "Anita Roddick." Business the Ultimate Resource. Cambridge: Perseus, 2002. 1134-1135. Bateman, Thomas S., and Scott Snell. Management Leading and Collaborating in a Competitive World. Boston: McGraw Hill, 2007. Roddick, Anita. Business as Unusual. Chichester: Anita Roddick Books, 2005. Roddick, Anita. Interview. The Power of the Story. 04 Sept. 2007 <https://www.cwerty.com/members.asp>. https://news.bbc.co.uk/l/hi/business/4815776.stm https://www.ltbn.com/hall_of_fame/Roddick.html https://www.thebodyshop.com/companycasestudy/naomaarron https://ivythesis.typepad.com/term_paper_topics/the_body_shop/ https://www.bodyshop.com/global/index.aspA https://social-corporate-responsibility.suite101.com/article.cfm/corporate-social-responsibility-at-the-body-shop
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The Body Shop International Case Study Business Essay. (2017, Jun 26).
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