Weaknesses: 1) The marketing department Anita Roddick spends most of her time on activities such as campaigns and conferences. 2) No advertising activities to create Awareness and Sales in the US and Asia as it does not have a strong culture in protecting animals and the environment. 3) Adopt high pricing compared to competition. 4) Operating expenses on company owned stores are high. Treats: The single largest increase in cost are involved on mail order business and Body Shop direct. a) Major renowned global cosmetics and toiletries company such as Proctor & Gamble; Unilever; Shiseido; L'Oreal; Avon and Revlon are Very strong on market presence and market share and in US.
b) Competition from Rivals copycats who discounts. Strengths: - 1) Body Shop strong branding and brand loyalty. 2) Body Shop strong "selling points" on using original natural materials, "earth-friendly." 3) Distinctive Body Shop layout; products packaging and merchandising. 4) Loyal consumer support of natural "earth friendly" products. 5) Strong stakeholders support on company involvement with "world community." 6) Organisation strong and active participation on campaigns and events that are "earth-friendly." 7) Anita Roddick reputation. Opportunities: - 1) Global toiletries and cosmetics market growing with annual rate of 3%.
2) To develop further on market such as UK and Ireland test marketing thru "Home Selling", a new channel. 3) US market are planning to have 15 new stores and 30 existing Stores to be refurbished. 4) Europe and Middle East: - 48 new stores opening across the region. 5) Asia Pacific: - Korea and Hong Kong shows strong growth. Question 3 The strategic factors facing the Body Shop. It focuses on medium and long term results to increase value for all Stakeholders.
The 3 principal objectives are: 1) To enhance the Body Shop brand value. 2) To improve operational efficiency. 3) To reinforce Stakeholder culture. Question 4 The Body Shop core competencies are: 1) A strong and distinctive culture includes everything from commitment to community to the environment and the protection of animals. The use of stakeholder consultation in combining with public reporting is vital that Body Shop is committed in delivering the value to Stakeholder. 2) Body Shop strong brand name.
It has strong loyal customers and World Wide recognition for its commitment to the environment and its superior products. Question 6 Anita Roddick's tenure as CEO was phenomenal. She is a Leader and Visionary. Having founded Body Shop in 1976 from a humble beginning by selling cosmetics in cheap bottles till today with the following achievement: . Publicly Limited on London Stock Exchange. 1900 stores in 47 countries; 40 distribution centers, 6000 employees worldwide.
Question 10 The Body shop's franchising strategy was effective for its growth Definitely. To be able to arrive at: a) 1900 stores worldwide. b) $500 million in every region c) represented in Europe, Middle East, America and Asia However the next phase for Body Shop is to further expand and Reach new and existing consumer Body Shop and experimenting new Channel of distribution such as Home Sales and Niche Marketing. Question 12 The Body Shop's strategic planning has been very effective.
This is largely due to the organization Core Value as answer can be found on question 4. This is especially so among European as they are very conscious about protecting the Environment and Animals. It hits home the individual European core values. Question 13 The Body Shop should advertise in the US. Three key reasons to support the case. 1) The average individual American are not as conscious as the Europeans in caring for the Environment and Animals.
2) Geographically the US is big and well represented by big Names American company in the field of cosmetic and toiletries. 3) Body Shop origin from the UK does not have a strong brand presence due largely as British based product. DIFFERENCE BETWEEN DR BEN CHAN NOTES AND FACTS FROM WEB. 1) Pg 6 Internal Environment: Management Team From Web From Notes Anita L. Roddick Non - Exe Director Co - Chairman T.
Gordon Roddick Non - Exe Director Co - Chairman CEO Peter Sounders Patrick Gournay Adrian D. P. Bellamy Executive Director Non Exe Director Alastair S N Murray Group Finance Director Not Listed Jack Keenan Non - Exe Director Not Listed Irene Miller Non - Exe Director Not Listed Ronald De Waal Non - Exe Director Not Listed 2) Pg 10 Distribution Channel From Web: The shop listing and profile and statistics are by blocks or continent. From Notes: Shop listing by individual countries.
The figures are not the same. 3) Mission Statement: Additional point on web not found on notes... To dedicate our business to the pursuit of social and environment change. 4) Brief write up about Anita and Gordon Roddick from youth to marriage was not mentioned from the write up from web.
5) A time line of Body Shop starting from 1976 to 1998 total 18 awards and recognition reflected from the notes. However there were only 5 being mentioned as the Body Shop "kudos" from the web. 6) Board of Directors scope of responsibilities, salaries, benefits and shareholding were reflected on the notes only.