The Body Shop

Topics: Strategic management, Strategic planning, Loyalty program Pages: 22 (3850 words) Published: November 23, 2012
The Body Shop

Table of contents

Introduction :2

Section A3

A comprehensive strategic analysis of the industry :3

Question 13

1)The external strategic analysis of The Body Shop3

1.1° Synopsis of the beauty industry: Macroenvironement and trends3 1.2° The competition: immediate industry and competitive environment5 1.3°The key success factors of the beauty industry and The Body Shop7 1.4) The SW(OT) analysis of The Body Shop8

Question 2:8
Applicability and effectiveness of new CEO Patrick Gournay’s strategies8


Question 3:10
Vision and Mission10

Question 4:11
Financial and strategic objectives:11

Question 5:12
Corporate and business strategies12

Question 615
Balanced scorecard for The Body Shop15



The cosmetic industry is one of the biggest industries in the world. The worldwide annual expenditures for cosmetics is estimated at U.S. $18 billion. There is a strong competition in this industry all over the world. To compete and obtain a competitive advantage, companies have to invest a lot. They always have to innovate, to invest in advertising campaign in order to be known and to be successful. The Body Shop decided to be different, their products are natural, it is an ethical organisation, associated with environmental friendliness. But how The Body Shop takes part in the cosmetic industry? What are their vision and mission and what strategic directions should be recommended to the Body Shop in order to perform successfully in this industry?

Section A

A comprehensive strategic analysis of the industry
Question 1

The cosmetic industry is a very aggressive and challenging market, in order to be more competitive and to gain market shares and customer loyalty, companies as The Body Shop have to understand their environment.

After analysing the external environment (major trends of the industry, competitors and driving forces), the key success factors as well as the strategic issues will be evaluate, in order to provide a SWOT analysis.

1) The external strategic analysis of The Body Shop

1.1° Synopsis of the beauty industry: Macroenvironement and trends

The PEST model in as interesting tool to understand and study all the components and trends that affect the beauty industry. This environment analysis permits us to understand the strategy of beauty brands as The Body Shop. To identify the importance of each components of the industry, it is necessary to quantify them. In the last column, O will represents “opportunity” however T will represent “threats”. Moreover, a number will be associated to see the impact of each element.

PESTE model for the Body Shop

| |Importance of the regulations concerning the launching of new |T 5 | |Political environment (legislation and |products in the markets: (allergies…) | | |regulations) | | | | | | | | | | | | |Globalisation (driving force) |T8 | | | | | | |Strong local and foreign competition |T9 | | |...
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