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Body Shop Canada

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Body Shop Canada
The Body Shop Canada – Case Study

Alexander Mutter-Taylor
Jennifer Tinkess
Kevin Vo
Michael Ciminelli
Peter Stojanov
Business Policy – Ross Geddes
Key Events / Case Synopsis

The Body Shop Canada is a retail store that only sells proprietary products in prime retail locations either on main shopping arteries or in mall stores. Body Shop has positioned itself as a champion of social responsibility/activism and, in the 14 years since its funding, the store has grown from one to 450 stores worldwide with 72 shops in Canada (56 franchised, 16 corporate-owned). Volume at the London location had increased 66 percent since its relocation while the Sarnia location projected sales up 33 percent over the previous year.

Richard Paul is a potential franchisee looking to obtain a franchise, or two, in Body Shops. He has a background in the MBA program at Ivey School of Business, Western University, and seven years in retail management. Confident of his abilities in the field of marketing and human resources, he believes he could hold two franchised stores in London, Ontario and Sarnia, Ontario in partnership with two separate business colleagues. Mr. Paul is looking for a way to convince Mr. Robertson (head office) to give him two franchises according to numbers projected on a pro forma financial statement.

Problem Statement

Richard Paul is looking to convince Mr. Robertson about acquiring two franchises as a first time franchisee while coming up with a financial plan that can accommodate and convince Mr. Robertson of this.

Objectives
Mr. Paul wants to generate enough money quickly to get out of any debt from bank loans
After feeling so confident about his plan for one franchise, he wants to now own two
Mr. Paul’s colleagues are keenly looking to join in on this operation of his and are willing to give up on their own career, readily
Looking at United States Border areas around Sarnia to expand
Mr. Robertson’s view is to get Mr. Paul experienced in one

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