...The Body Shop International PLC 2001: An Introduction to Financial Modeling Written Case Analysis Mitchell Bredberg-(12205176) Mitchell Sovis-(12156556) Jake Rux-(12159615) Zach Dorer-(12171436) Finance 465-001 11/10/15 I. Executive Summary Anita Roddick was the founder of The Body Shop International PLC. Despite growing a successful business, the company recently ran downhill after losing revenue growth starting in the late 1990s. One of the major problems was intense competition. This unexpected phenomenon caused The Body Shop to lose its image of being the “go to” place in Great Britain’s many shopping venues. Later on, a new CEO, Patrick Gournay, took charge and was faced with a declining pretax profit of twenty-one percent. Facing a dilemma, Gournay’s recommended plan of action included a focused product strategy of increased investment. He was confident this strategy would produce improved results. To be effective, this strategy incorporated a reduction in product and inventory costs as well as a reinforced stakeholder culture. To justify the course of action with this strategy, we will prepare a three-year financial forecast to help predict The Body Shop’s future earnings and financial needs. This forecast will be based on The Body Shop’s historical financial statements to create the best possible financial model going forward. II. Statement of the Problem When Anita Roddick was still CEO, the main problem affecting The Body Shop was not being...
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...companies’ opinions, reader discretion is advised. Beauty and Personal Care Baby and ChildSpecific Products Bath and Shower Colour Cosmetics Deodorants Depilatories Fragrances Hair Care Men's Grooming Oral Care Skin Care L'Oréal has performed well thanks to a segmented portfolio lending it the flexibility to address diverse consumer groups across the world. However, competitive intensity is increasing, which L'Oréal needs to heed to retain its market position in the long run. Sun Care Set/Kits Premium Cosmetics Mass Cosmetics © Euromonitor International BEAUTY AND PERSONAL CARE: L'ORÉAL GROUPE PASSPORT 2 STRATEGIC EVALUATION COMPETITIVE POSITIONING MARKET ASSESSMENT GEOGRAPHIC AND CATEGORY OPPORTUNITIES BRAND STRATEGY OPERATIONS RECOMMENDATIONS STRATEGIC EVALUATION Key company facts L'Oréal Groupe Headquarters: Regional involvement: France Global Skin care, colour cosmetics, Category involvement: hair care, fragrances, men’s grooming, sun care World BPC share 2011: 9.7% World BPC value 4.8% growth 2011:...
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...companies’ opinions, reader discretion is advised. Beauty and Personal Care Baby and ChildSpecific Products Bath and Shower Colour Cosmetics Deodorants Depilatories Fragrances Hair Care Men's Grooming Oral Care Skin Care L'Oréal has performed well thanks to a segmented portfolio lending it the flexibility to address diverse consumer groups across the world. However, competitive intensity is increasing, which L'Oréal needs to heed to retain its market position in the long run. Sun Care Set/Kits Premium Cosmetics Mass Cosmetics © Euromonitor International BEAUTY AND PERSONAL CARE: L'ORÉAL GROUPE PASSPORT 2 STRATEGIC EVALUATION COMPETITIVE POSITIONING MARKET ASSESSMENT GEOGRAPHIC AND CATEGORY OPPORTUNITIES BRAND STRATEGY OPERATIONS RECOMMENDATIONS STRATEGIC EVALUATION Key company facts L'Oréal Groupe Headquarters: Regional involvement: France Global Skin care, colour cosmetics, Category involvement: hair care, fragrances, men’s grooming, sun care World BPC share 2011: 9.7% World BPC value 4.8% growth 2011: ...
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...WESTERN GOVERNORS UNIVERSITY E-BUSINESS JBT Task 1 CJ’S AUTO BODY Internet Business Expansion Strategy Angie M. Roman WESTERN GOVERNORS UNIVERSITY E-BUSINESS JBT Task 1 This report outlines the business expansion strategy for CJ’s Auto Body in Lewisburg, Ohio. The company was founded in 2004 at its present location in Lewisburg. The company currently has a very limited online presence with no products available for purchase and only one page; there are no active links or details of the business showing. This marketing strategy is targeted at increasing1 the customer base through targeted advertising and new product sales. Viability of Product or Service. CJ’s Auto Body is primarily a service provider and not an online retailer or “brick and mortar” store. The Company would greatly benefit by having an online presence. The Company does not have a very strong on-line foothold and has dedicated very few resources towards marketing; primarily the business is sustained locally by word of mouth. Increasing the online presence will allow the Company to better compete with similar service providers in the Indianapolis and surrounding areas. “Super Cool Media” recently published an article that said a website can generate revenue increases of 5% to 40%. A 5% increase in revenue would easily cover the cost of creating a stronger web presence. One major factor included in this revenue increase and expanded web presence is the customers’ ability to find CJ’s on-line...
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...firm that markets premium kiwifruits that have been subject to several quality standards to ensure consumer’s satisfaction; its product line is limited to only four products. Its expansion can be derived by targeting and engaging in emerging markets like Iran, building its presence through was such as engaging in community outreach, as well as strategic partnerships in different markets in different countries. The decision is based on the fact that there are many uses and benefits of the kiwifruit, and it has the potential and rewards that appeal to certain markets that it does not have a presence in. One potential for expansion in Canada and the United States and markets that have not yet been touched in Europe, and in emerging markets like India and Indonesia is through their juice and smoothie markets, and enhanced flavor water with Kiwifruit flavor. The juice and Smoothie Bars industry has been steadily growing as a relatively new niche industry yielding revenues of $2.4 billion in the American market(http://planetsmoothiefranchise.com/learn-planet-smoothie/big-smoothie-industry/); it still shows capacity to grow. A way to enter that industry is to use smoothie bars, or incline themselves with established organizations like Tim Hortons and Starbucks. These are area restaurants and café bake shops chain situated across Canada and the United States. They offer in summer smoothies made up of a mix of different fruits that meet the need of health conscious North Americans and...
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...Management Organizational Structure The Fashion Royalties partners will be encouraged to work within their creative, physical, and intellectual boundaries. All duties will be divided and delegated according to strengths and weaknesses. At Fashion Royalties, we will expect a high degree of customer service skills and personality as this is essential to our success. We, partners, who expects to fill multiple roles in the business will assess the productivity and perform informal employees evaluations of all employees every six months. These bi-annual evaluations are conducive to the continued growth of our small business. Fashion Royalties, having a partnership structured business formed by six close related business partners namely; Darren Danielle Delos Santos, Ma. Blessilda Trinidad Balio, Jennan Bautista, Lanie Limbag, Mario Limbago and Earl John Louie Rubio, is a starting-up business in the fashion industry. All partners are acting as a general manager, in line with its lower level staffs who helps them in the operation of the business. Each assisting partners are engaged through Fashion designing, merchandising and styling that helps them throughout achieving the business’ goals. All decisions are made in-line with the company objectives. Each partners’ tasks are delegated based upon their level of expertise, creativity, strengths and weaknesses. Darren Danielle Delos Santos, co-owner and one of the general managers will be responsible for fashion designing and styling...
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...THE BODY SHOP Strategic Implementation Plan Table of Content Introduction 3 Section I Strategic Management Practices 4 1.1 The Body Shop’s Strategic Management Practices 4 1.2 Limitations and Alternative Approaches 6 1.3 Strategy proposed 7 Section II Corporate Governance 8 2.1 Evaluation of Governance structure 8 2.2 What is the stakeholder’s role? 9 2.2.1 Keep satisfied 10 2.2.2 Keep Informed 11 2.2.3 Key players 11 Section III Hard Changes in the Body Shop 13 3.1 Existing Value Chain 13 3.2 Adjustment 14 3.3 What strategy method should Body Shop undertake? 15 Section IV Culture and Leadership Changes 17 4.1 Strategic Change through Culture 17 4.1.1 Control Systems 19 4.1.2 Organisation and Power Structures 19 4.2 Strategic Change through Leadership 20 Section V Implementation Plan 21 5.1 Preliminary Activities to enter China 22 5.2 Procedure of starting a Business in China 23 5.3 Setting up the First Store 23 Conclusion 24 References 25 Introduction L’Oreal Group is the world’s largest cosmetic and beauty company, headquartered in France. It offers a vast amount of products and services across the cosmetic field, concentrating on make-up, hair care, skin care, perfumes and sun protection. L’Oreal divides its brand portfolio into five divisions, Professional products, L’Oreal Luxe, Consumer Products, Active cosmetics and The Body Shop, which covers different the lines to...
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...NATURA COSMETICS: From Brazil to United States INTRODUCTION TO THE COUNTRIES: BRAZIL AND UNITED STATES Brazil, one of the fastest growing emerging markets in the world is the “country of the moment” as many called. Low cost manufacturing, develop infrastructure, government incentives, and increase of income levels has set Brazil as hot stop for investor and a secure place for international expansions. Not only a hot stop for investor, but also a homeland of many entrepreneurs going out of the national barriers and growing internationally in a remarkable way. With rising of wages, a stability of inflation, Brazilian population is getting richer. In the last couple years, that was increase of the wealth population and a significant improvement of the middle and low class purchase power, resulting in growing of the country and putting new challenges for local business thinking of going to other countries. Not surprising, Brazilians are spending more in many different market segments, one of them cosmetics, fragrances, and personal hygiene. In 2010, with an impressive 12% growing of the cosmetic market, Brazil became the second largest consumer of cosmetics in the world just behind United States. According the ABIHPEC, Brazilian Association of cosmetics, fragrances, and personal hygiene, the market of these products has grown substantially over the past 15 years. Exports grew 17.8% in 2010, reaching $ 693 million, versus $ 588 million in 2009. Imports of these...
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...CSR by using The Body Shop as the main focus of the report. The Body Shop was regarded as one among the first companies in the cosmetic industry to publish a report on its social responsibility commitment. The Body Shop has been using Corporate Social Responsibility (CSR) successfully established itself as leader in the arena of social responsibility, and increasing awareness of its name and product ranges. One of the company strategies is providing extensive programs aimed at educating its consumers about corporate actions and using Anita’s philosophy related to the Environment, Human and Animal rights and Fair Trading program for the selling point. The Body Shop went through the tough time later with the criticisms from the activist groups campaigning for consumer to ban The Body Shop. As these activist group accused the company of misleading the information and abusing the CSR for the benefits of the company. 1. The Body Shop History The Body Shop was founded in 1976 by Anita Roddick, selling natural soap and lotion products, in Brighton, UK (Van, Nijhof and Jeurissen, 2009), She was inspired to set up the shop after seeing a store called ‘The Body Shop’ in Berkeley, California, USA, that sold cosmetic like shampoos, lotions and body creams (Purkayastha, 2006). Also, having worked as a United Nations researcher in the 1960s, Anita was aware that men and women in Africa, Asia and Australia used locally grown plant extracts to care for their bodies (Van, Nijhof and...
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...Webinars We will have an online webinar with Caffè Vergnano on September 18. You will have a chance to meet the company manager(s), learn more about the company, and ask your questions. You will receive an email with the date and time of the webinar and the instructions for how to attend it. About the Company 2014 Turnover: 72.200.000 € Employees: 124 Production lines: 24 Factory surface: 13.500 mq Italian retail clients: 300 Italian clients HORECA: 5000 Export Countries: over 70 Coffee Shops 1882: 80 Caffè Vergnano was founded way back in 1882 and it’s Italy’s most ancient coffee marker. The company began as a small grocery shop in Chieri, a small town just below the Turin hills. It was set up by the current owners’ grandfather, Domenico Vergnano. The Vergnano family’s true vocation soon became clear - within a few years, that small shop mastered all the secrets of roasting and selling coffee. The company grew at an astonishing rate, and the first three Italian coffee shops were opened in Turin, Alba and Chieri. But the true leap forward happened...
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...( Ryka, INC.: Lightweight Athletic Shoes for Women Business and Industry Analysis) Ryka is doing business of athletic shoes for women, which are made on the shape of a woman’s foot, and are designed and developed considering women’s unique fit needs. It is the only athletic footwear company, which is exclusively for women, by women, and now supporting women. Because a woman’s needs in a comfortable, attractive, high performance athletic shoes that are attractive, comfortable, and well suited for exercise and physical fitness programs are different from a man’s. Therefore, it places Ryka shoes among the highest rated in the industry. The athletic footwear industry was divided into various submarkets by end-use specialization. Ryka competed in only three segments: aerobic, walking, and cross-training shoes. Ryka had focused on performance rather than fashion because Poe believed that fashion-athletic footwear was susceptible to faddish trends and to ups and downs in the economy, whereas the demand for performance shoes was based on the ongoing need of women to protect their physical well-being. Ryka cut back on its product line and began to focus primarily on aerobic shoes and secondarily on walking shoes. Poe did not believe that Ryka had to become an industry giant to succeed. SWOT Analysis Strength: Poe’s image and profile were the most critical components in Ryka’s marketing strategy. Poe had successfully worked the female angle: she appealed to contemporary working women...
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...Franchises & Business Plans What is a franchise? Using examples from the real world, explain three advantages to the franchiser and to the franchisee. A franchise is where a business with a well-known brand name (the franchisor) lets a person (the franchisee) or a group of people set up their own business using that brand. This is in exchange for an initial fee and continuing royalty payments (a certain percentage of turnover or profit) for as long as the franchise lasts. A franchise is not a type of legal structure in itself. The liability for the person using the franchise depends on the how the business is established. A franchisee can choose which legal structure to adopt, although the franchisor may recommend a type. They have unlimited liability if they are in business as a sole trader or partnership but have limited liability if they set up the franchise as a company. Advantages for the franchiser: * The firm does not have to spend a large amount of money in order to expand * The products necessary for the franchise to operate are under the franchisers direct control * Issuing franchises should generate a continuous stream of revenue from franchisees who are determined to succeed Disadvantages for the franchiser: * The control it has over the product is not as great as if the business sold the product itself, bad publicity from a franchisee could affect the brand image * Franchisers have to offer continuous support, training and development and...
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...CASE STUDIES Starbucks case study Utilizing brand assets and capturing consumer trends in the Japanese RTD coffee market Reference Code: CSCM0242 Publication Date: March 2009 DATAMONITOR VIEW CATALYST Starbucks has established itself not only as a coffee shop chain, but also as a provider of ready-to-drink coffee drinks. Its partnership with Suntory in Japan has seen the success of the chilled cup coffee drink Discoveries, and the experience could provide insights on how the company can succeed in expanding into the growing global RTD coffee market. SUMMARY • Starbucks has been offering the “Starbucks experience” beyond coffee based drinks. Its brand image has helped the launch of its first bottled ready to drink coffee drink, Frappuccinos, in the US through the partnership with PepsiCo. During the economic downturn, offering Starbucks-branded drinks and products via multiple retail channels could help the company capture more consumption occasions and increase its revenue. • Starbucks teamed up with Suntory to launch the Discoveries series in the cut-throat RTD coffee market in Japan. First launched in 2005 and positioned as a premium chilled cup coffee drink, the series is ranked second in the sector, holding an 18% market share after three years. • Right positioning and product design that effectively reflect the positioning are key factors contributing to the achievement of the Discoveries series. Suntory’s know-how of the market, plus its marketing and distribution...
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...FOUNDATION EXAMINATION Exam Bank 007 – December 2013 Business Studies 1 MARK SCHEME BELLERBYS COLLEGE FOUNDATION EXAMINATION SECTION A – SHORT ANSWER QUESTIONS Answer ALL questions in this section. 1. Name two things that should be present in a good business plan. Executive summary, location, marketing, finance, financial forecasts, personnel Any other reasonable answer should be accepted. 1 mark per relevant point given. (2 marks) 2. Using an example for each point, identify and explain one reason for business success and one different reason for failure. Note: the reason for success should not be repeated as a reason for failure, for example, good entrepreneurial skills (reason for success) bad entrepreneurial skills (reason for failure). Possible answers include: Reasons for success: Excellent entrepreneurial skills Good business plan Marketable products Good budgeting skills Reasons for failure: Poor planning Inexperience Harsh external economic climate Fierce competition Lack of cash flow Any reasonable answer should be awarded marks. 1 mark for identification, 2 marks for a reasonable/good explanation and the full 3 marks given for an excellent explanation with relevant examples. (6 marks) Questions continued on next page Business1-JP-L-007 Page 2 of 15 BELLERBYS COLLEGE FOUNDATION EXAMINATION 3. Give one example of a good SMART objective. For example, to increase market share by 15% by January 2015. 1 mark for a partial example...
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...MARKETING ASSIGNMENT REPORT WRITING ON LUSH COSMETICS EXECUTIVE SUMMARY: This report is on LUSH cosmetics – a sustainable brand in cosmetic industry. This report will describe about marketing history, company ethics and current market position of LUSH. This report also deals how LUSH is making their products with sustainability and what marketing strategy they are following. We will discuss about marketing mix of LUSH, How they are doing ethical business and their position in competitive market. We will also do SWOT analysis and LUSH position mapping with other brands. This report also concentrates how LUSH can improve its marketing strategy. Keywords: Organic, Cosmetic, Sustainability, Product Portfolio, Marketing mix, Customer, Social Media, Competitive. TABLE OF CONTENTS 1. INTRODUCTION: ..…………………………………………………………………………...5 1.1 MARKETING BACKGROUND OF LUSH: ………………………………………………...6 1.2 COMPANY PROFILE: ……………………………………….……………………………...7 2 LUSH AND SUSTAINABILITY:……………………….……………………………………8 2.1 LUSH AND GREEN SUPPLY CHAIN: ……………………………………………………8 2.2 LUSH AND SOCIAL INFLUENCE: ……………………………………………………….9 3 LUSH PRODUCT ANALYSIS: ……………………………………………………………..10 3.1 LUSH PRODUCTS: ……………………………………………………………………….10 3.2 PRODUCT PORTFOLIO: ………………………………………………………………….11 3.3 LUSH SERVICES: ……………………………………………………………………….…11 3.4 LUSH AND THEIR SUPPLIER: ………………………………………………………..…11 3.5 LUSH AND THEIR CUSTOMERS: …………………………………………….…………12 4 MARKETING STRATEGY OF LUSH: …………………………………………………...
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