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The Body Shop

Strategic Business Management

Term Paper 2003 14 Pages

Business economics - Company formation, Business Plans

Excerpt

Table of contents

1. Introduction

2. The Body Shop International plc
2.1. The company in brief
2.2. Strategy and values
2.3. Mission statement
2.4. Vision
2.6. Goals and objectives

3. Stakeholders

4. Influences on the Body Shop’s future success

5 . Bibliography

1. Introduction

This assignment is concerned with the strategic planning process of a chosen organisation which is The Body Shop International plc. In the first part, the assignment focuses on the mission, vision, values and the objectives of this company. In the second part, the assignment will look at The Body Shop’s key stakeholders and analyse their influence on the organisation’s strategy. Last but not least, the third part of the assignment will assess the main influences on the future success of The Body Shop.

2. The Body Shop International plc

2.1. The company in brief

The Body Shop International plc is a high quality skin and body care retail company founded by Anita and Gordon Roddick in 1976. Today, The Body Shop operates in over 2000 stores across 51 countries with annual retail sales of £ 697 million and a range of over 600 products and 400 accessories. Having organised several worldwide campaigns, The Body Shop has established a reputation as a socially and environmentally responsible company.

2.2. Strategy and values

The Body Shop’s strategy is based on the core principles of the founders; therefore it is a value-based strategy. The company does business according to its five core principles/guidelines, which can be considered as the company’s values:

- Protect our Planet
- Defend Human Rights
- Support Community Trade
- Activate Self-Esteem
- Against Animal Testing

“The Company believes that its values are consistent with strong and sustained financial performance and that profits with principles must be achieved in order to sustain the long-term future of the Company.”

(Annual Report 2003, Performance Review)

Like all other information found about The Body Shop, this quotation clearly emphasises the importance of not only doing self-centred business but also acting according to its values, thus acting environmentally and socially responsible.

2.3. Mission statement

“The overall aim of the organizational mission is to encapsulate the whole purpose and philosophy of the organization, as well as to provide broad indications of direction.”

(Greenley, G.E., 1989, p.147)

The Body Shop’s mission statement

“A company with a difference”

“Our reason for being is:

- to dedicate our business to the pursuit of social and environmental change.
- to creatively balance the financial and human needs of our stakeholders: employees, customers, franchisees, suppliers and shareholders.
- to courageously ensure that our business is ecologically sustainable: meeting the needs of the present without compromising the future.
- to meaningfully contribute to local, national and international communities in which we trade, by adopting a code of conduct which ensures care, honesty, fairness and respect.
- to passionately campaign for the protection of the environment, human and civil rights, and against animal testing within the cosmetics and toiletries industry.
- to tirelessly work to narrow the gap between principle and practice, whilst making fun, passion and care part of our daily lives.”

In order to give itself and its stakeholders a clear direction, the organisation’s mission statement should encompass its raison d´être and fulfil the three key criteria, such as distinctiveness, longevity and brevity.

The Body Shop’s key slogan itself “A company with a difference” is brief, distinct but not profound. However, the company’s reason for being delivers a sensible explanation to the slogan. Putting emphasis on social and environmental issues, The Body Shop sets itself apart from its competitors by campaigning against animal testing in the cosmetic industry and violation of human rights. The criteria longevity is met due to the fact that the company does business with ecological sustainability, thus looks into the future. Moreover, the mission statement gives a broad indication of direction, namely that The Body Shop wants to do business with social and environmental impact.

2.4. Vision

“A vision or strategic intent is the desired future state of the organisation.”

(Johnson, G. and Scholes, K., 2002, p.13)

The Body Shop does not explicitly state its vision. However, its focus on the customers could be considered as part of its vision.

“Our predominant focus is on being a world-class retailer, offering our customers prestige products at value-prices, with excellent customer-service.

(Annual Report 2003)

As this statement is only customer-based, we would like to suggest a vision, which is directed to all the stakeholders and includes The Body Shop’s philosophy.

Our suggestion:

Intensified interaction with our key stakeholders as well as increased environmental and social activism will strengthen our position as a world-class retailer with a difference.

2.5. Goals and Objectives

Goal “means a general aim in line with the mission. It may well be qualitative in nature. […] An objective is more likely to be quantified, or at least to be a more precise aim in line with the goal.”

(Johnson, G. and Scholes, K., 1999, p.13)

[...]

Details

Pages
14
Year
2003
ISBN (eBook)
9783640788873
ISBN (Book)
9783640789153
File size
454 KB
Language
English
Catalog Number
v163567
Institution / College
New College Durham – Business School
Grade
2,1
Tags
Strategy Mission Statement values key stakeholders Vision The Body Shop

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Title: The Body Shop