The body Shop strategic analysis

The Body Shop International

CASE ISSUES:

Market Saturation/Loss of Sales (CI#1) - harvest-feast Strategy is no longer working for The Body Shop. Their computer storage gain has diminished since the mid-1990s, and by 2002 the companys profit was shrinking, and gross changes were non growing proportionally to the rapid expansion of stores. Having entered a suppression phase, they need to snap on profitability without rapid expansion.

Is Anita foregone? (CI#2) - Though Anita Roddick stepped down as CEO in 1998, and resigned as Executive Chairman in 2002, it is unclear how much form she has on day-to-day operations and strategy.

Core Values (CI#3) - By changing top management and governance, The Body Shop runs the risk of losing their individuation and their core values. Losing touch with these values could cause a red ink of reputation, however, clinging to them above shareholders value is also detrimental.

Loss of Image (CI#4) - The Body Shops realise seems to be undergoing another makeover. With Anita Roddick being at least a less visible member of the organization, The Body shop no longer practices eccentricity for eccentricitys sake. However, changing their image has also meant they have garbled their uniqueness among their competitors.

I.         CURRENT SITUATION

A.         CURRENT PERFORMANCE

The Body Shop achieved an overall solid performance for the year 2004 especially with strong sales in the USA (+ 4%), the Middle East (+4%), the Nordic countries (+4%) and most part of Asia pacific (+2%).



However, these encouraging numbers were offset by weak sale in the United Kingdom (-13%), Canada (-10%) and parts of Europe (-7%).

This growth occurred while the growth of stores slowed. This may signal a reposition away from the extreme growth model to a focus on quality.

B.         STRATEGIC POSTURE

Missions

Ø         To dedicate their business to the pursuit of social and environmental...

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