The Body Shop

Topics: Strategic management, Porter five forces analysis, Cosmetics Pages: 12 (3884 words) Published: April 2, 2011

Table of Content

I. Executive Summary of The Body Shop

II. Introduction

III. SWOT Analysis of The Body Shop

IV. PEST Analysis of The Body Shop

V. Porter’s Five Forces

VI. EVR Congruence

VII. Recommendation

VIII. Conclusion

IX. References

I. Executive Summary

The Body Shop International PLC (Body Shop) is one of the largest cosmetics companies in the world with 2,400 stores in 61 countries and is the second largest cosmetic franchise in the world, following O Boticario, a Brazilian company. It operates a chain of cosmetic stores specializing in skin and hair care products made from natural ingredients. The company offers its products under various categories, which include skin care, bath and body, hair care, products for men, make up and home fragrance products. The Body Shop’s headquartered are located in Littlehampton, England, and was founded by the late Dame Anita Roddick. The Body Shop is now part of the L'Oréal corporate group since March 2006. The Body Shop is well known for its social and environmental values and campaigns. An example is the community trade reflecting its avowed practice of trading with communities in need and giving them a fair price for natural ingredients or handcrafts they purchase from these often marginalized communities. The chain uses its influence and profits for programs such as Trade Not Aid, aimed at enacting fair labor practices, safe working environments and pay equality. The company produces a wide range of products for the body, hair face, and home. The Body Shop is constantly producing innovative products and improving current products for customer safety and satisfaction.

II. Introduction

The Body Shop is one of the largest cosmetics companies in the world with a presence in over 60 countries spread on all continents. The Body Shop is well known for its social mission, environmental values and campaigns. The company sells nature based cosmetics products, in partnership with third world countries ‘impoverished communities. Through this coming work, a SWOT Analysis will be carried out to analyse internal strength and weaknesses of the organization and external opportunities and threats facing the organisation. PEST Analysis will then be carried out to grasp a clearer picture of the environment in which the company operates and how it could influence the company’s sales and market shares. PEST analysis will also help us identify the challenges the company is facing. Porters Five forces will be used in order to examine the industry in which The Body Shop operates. The cosmetic industry has many players and the competition is particularly tense in that multi-billion dollars industry. We will examine the company’s position within that industry vis-à-vis the competitors. EVR congruence is another effective model that implies congruence between an organization’s environment, its resources and its values and culture. Finally, after using these tools and models to better understand the corporate strategy of The Body Shop, a recommendation will be made on where the company can improve its performances and global strategies.

III. SWOT Analysis

The SWOT analysis is a simple framework for generating strategic alternatives from a situation analysis. It is an important tool used to analyze internal strength and weaknesses of an organization and external opportunities and threats facing the organisation. The SWOT analysis helps limit the flow of information into manageable quantity of key issues. An important part of a SWOT analysis involves listing and evaluating the firms strengths, weaknesses, opportunities, and threats.

The SWOT analysis of The Body Shop will help grasp better understanding of the resource strengths and weaknesses and its external opportunities and threats to provide a good overview of whether the firm...
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