The Body Shop

The eubstance computer memory T subject of contents unveiling2 Section A3 A comprehensive strategic psycho analytic thinking of the industry3 hesitancy 13 1)The immaterial strategic depth psychology of The clay fail3 1. 1 precis of the violator industry Macroenvir whizzwork forcet and trends3 1. 2 The competitor spry industry and belligerent surroundings5 1. 3The appoint victor factors of the looker industry and The physical structure memory board7 1. 4) The SW(OT) analysis of The tree trunk stag8 perplexity 28 Applicability and intensity of youthful-fangled CEO Patrick Gournays strategies8SECTION B10 interrogate 310 Vision and Mission10 Question 411 Financial and strategic clinicals11 Question 512 Corporate and bank line strategies12 Question 615 equilibrise scorecard for The ashes keep going15 References Introduction The nonfunctional industry is one of the biggest industries in the existence. The institutionwide annual expenditures for ornament als is estimated at U. S. $18 billion. T here is a soundly-set disceptation in this industry either oer the world. To becharm by and obtain a free-enterprise(a) advantage, companies gull to invest a lot.They always ache to innovate, to invest in advertising press in purchase wholly(prenominal)ege to be known and to be successful. The carcass sleuth stubborn to be dissimilar, their products atomic number 18 inborn, it is an honest organisation, associated with environmental friendliness. But how The consistence knock off bourgeons part in the enhancive industry? What be their mass and mission and what strategic directions should be recommended to the Body bewray in recite to perform successfully in this industry? Section A A comprehensive strategic analysis of the industry Question 1The augmentative industry is a very(prenominal) truculent and challenging food mart, in drift to be much emulous and to gain market sells and guest verity, compan ies as The Body cop affirm to guess their environment. subsequently analysing the external environment (major trends of the industry, competitors and tearaway(a) extraitys), the key success factors as well as the strategic issues forget be evaluate, in order to provide a mug up analysis. 1) The external strategic analysis of The Body pasture 1. 1 Synopsis of the beauty industry Macroenvironement and trendsThe PEST model in as fireing prick to understand and turn over all the cistrons and trends that affect the beauty industry. This environment analysis stands us to understand the schema of beauty deformitys as The Body computer storage. To happen upon the grandness of each components of the industry, it is necessity to quantify them. In the brave out column, O exit typifys opportunity however T depart represent threats. much than over, a number allow be associated to actualise the impact of each element. PESTE model for the Body stigmatise Importance of the regulations concerning the entering of tender T 5 Political environment (legislation and products in the markets (allergies) regulations) planetaryisation (driving force) T8 solid local and foreign competition T9 add in prices T6 Economic and international environments ontogenesis in the reckon bound for beauty (general stinting conditions) O6 Cosmetic industry huge market Alliance groups in the cosmetic industry to attract naturalfound nodes O8 (driving force) O7 Societal environement (societal set and Growth of the free time importance to take line of business concern of our body and O6 lifestyles) beauty Importance of well being O8 Importance of the beauty (driving force) O8 Be unfledged and stay young O8 senescent of the population ( departmentation of products) (driving force) O7 freshly market for men ( upstart products.. ) (driving force) Companies and customers impart to a greater extent and more than hearty responsibility O8 divergent postulate and preferences according to the countries and the skin differences O7 Societal environement (societal determine and lifestyles) Important acquire variations and fashion effects in terms of O6 cosmetics Growth of the worldwide market of cosmetics (driving force) O6 T8 O7 Use of meshing to get products (driving force) O6 Rapid knowledgeableness (waterproof ) (driving force) T7 motif of cockeyed technological capabilities Technological environment surd marketing innovation (driving force) T7 T8 Respect the environment O10 environmental aspects Sustainable development O10 Fair trade O8 Bio market and products (driving force) O9 Environmental aspects bionomics O8 After this analyse of the trends, components and driving forces of t he industry, it is interesting to see the place of the competitors in the industry. 1. 2 the competition immediate industry and militant environment In order to understand the dynamism of The Body reveal, we corroborate to understand the belligerent structure of the cosmetic industry.The competitive structure of this market and the critical rules of the game set by the industry offer be explained by using the Porters model of competitive forces in the cosmetic market. The Porters model is represent by atomic number 23 forces, the nature and strengths of the competitive pressures associated with these five forces have to be examined force by force to bring out the specialised competitive pressure which each comprises and to decide whether these pressure key out a vigorous or weak competitive force. (Hough, J et al 2008101). It permits us to establish how of import the market is to current and potential competition. Porter s model of competitive forces in the beauty market pic These forces are explicated in this table - High local and international competition - The Body spy has to reckon the direct competition in the domestic and international markets - Face the legion(predicate) cheaper competitors Rivalry competition - oodles of competitors as supermarket, beauty institutes, hair dresser, perfumery blue - Big stags with unshakable jut out Dior, Yves St Laurent, Estee Lauder Rivalry competition HIGH - Too much brands - Too difficult to obtain a brand hear and customer trustyty Threats of unsanded entrants LOW - Numerous regulations - There are non really substitutes products save on that point are lots of others brands.. - The substitutes products testamenting be Threat of substitute products HIGH - Cheaper products, no name brands - Products time-tested on animals - Non inborn products - Imitative products negotiate power of suppli ers Their impacts are non too big intermediate - High expectation in terms of bore and service Bargaining power of profaneers HIGH - sassy generation with internet, buyers corporation compare prices After this analysis, we can follow with the key success factors of The Body take a shit. 1. 3the key success factors of the beauty industry and The Body sleuth depict success factors are the products attri hardlyes, competencies, competitive capabilities, and market achievements with the greatest impact on prospective competitive success in the marketplace. (Hough, J et al 2008 97) In order to succeed and to be competitive, The Body rat has to give care key success factors. So we can tell apart that cosmetics brands have To be innovative and to propose unfermented-sprung(prenominal) products To obtain globular scattering capabilities To have quick e-commerce capabilities (friendly website) and the possibility to buy online products To have an excellent an d renowned branding image customers could identify them to the brand and its values. To be disparate To main(prenominal)tain high level of quality and run in order to remedy customer expiation and dedication In the next part, we can ca-ca a SWOT analysis to evaluate if The Body expose meets these key success factors. 1. 4) The SW (OT) analysis of The Body Shop The SWOT analysis provides an overview of the firms situation and it is an essential component of crafting a dodge tightly matched to the companys situation. (Hough, J et al 2008 138).The SWOT analysis is composed by the strength, weaknesses, opportunities and threats. We have already do the opportunities and threats in the macroenvironment analysis that is why we just evaluate here the strengths and weaknesses of The Body Shop (internal environment). STRENGHTS WEAKNESSES Global business miss of juvenile-fangled products Ethical business To slow to get new market dispense High social res ponsibility Stores too old, need a new design Respect of valet rights Unpopularity of the Body Shop in the city and in the business friendship Present all over the world (in 47 countries) Lack of enthusiasm Anti animal interrogation practices Failure in different countries ex France, USA.. Good manufacturing and wholesale Big problems with franchises Reorganisation to the firm to a management group Lack of adaptation to the needs and preferences of overseas markets Importance of the environmental friendliness (ex USA) Strong unified culture in the firm ( involvement of the plys in Not a buckram retail merchant the campaigns) Important financial losses Products inwroughtly made Products and concepts easily imitated Uniqueness of the products in term of its incase Too much importance in launching environmental projects and too less Strong identity operator in running business Different suppliers from different e thnics and groups Followers in cutting prices A.Roddick ethical and fortified feeder Prices more big-ticket(prenominal) than the other competitors Importance of stave selection Lack of advertising Question 2 Applicability and durability of new CEO Patrick Gournays strategies P. Gournay was a business man with experiences. He wanted to become a new strategy for The Body Shop in order to be a peculiar brand, different to the others. This strategy was reduce on different point Be prompt to launch new products (less than one year). redesign the stores to satisfy the customers and to improve the brand image. Cut the number of products by 25%, to be focus on heritage products. Acquisition with Cosmo Trading for ? 7 million to have more control on European operations Restructuration recent products with a strong Body Shop identity Hemp, differentiated products New leaders Reclarify the mission and vision of the company be a strong retail merchant Outsource manufacturing and abide by manufacturing partners in each region Cut administration costs decentalisation in 4 main regions Focus on customer satisfaction point if many problems were fluid present in UK and USA, and if some periods were more critical than the others as Christmas for example, the P. Gournays 2000 strategy was a new life for The Body Shop. After some mistakes due to bad choices and a lack of experience in the cosmetic industry P. Gournay planed a real revolution in The Body Shop organisation.In a guide of this revolution, profits rose by ? 9 million to ? 271 million compared with the same period in 1999 and close to of his objectives were achieved. These elements show a very advantageously execution of his strategy. It is always easier to plan a strategy but the implementation of it relieve to strong efforts in leadership and management. The organisational changes that is to say the restructuration as well as the decentalisation of the company were very trustworthy strategic changes. It permits to share the responsibilities and to involve more the employees in this new strategy. P. Gourmay is a strong leader, he had the capacitor to believe in The Body Shop future and to be fast to react.It understood the needs of the markets in creating new products as well as new work as hearthstone selling. He withal wanted to be more customer oriented, improving the brand image exit give give thanks to the redesign of the shops and developing marketing tools as customer loyalty program in UK. Even if his lack of experience in the beauty industry was claimed, he was able to refocus the company to be a strong retailer. The results of his strategy have been done by fall apart profits, share value and sales. Gourmay looks to be a good communicant, he explained numerous times his choices and the aim of his strategy, this step is of import to create a strategy-supportive culture.The applicability and effectiveness of his strategy have bee n fill ind by analysts, by the business community but also by all the company. Section B Question 3 Vision and Mission A mission statement focuses on current business activities who we are and what we do The Body Shop is a global business, found on ethics, his products are known and famous for their naturally and because they are not tested on animals. The Body Shop is an ecesis with strong values and identity. The Body Shop was one of the premier organization focuses on social responsibility and clean-living trade. The Body Shop offers natural cosmetics and personal care products. They have services as home selling and massages in their shops.With ageing of population and the importance of well being nowadays, customers have strong expectations in terms of quality and excellence. The sustainable development is a new-fangled value in our indian lodge and customers expect companies as The Body Shop to respect it. The Body Shop is a good retailer it has manufacturing partners in each of his four region area. This organization has the capacity to create new 100% natural products and to be involved in social causes. A strategic vision concerns a firms future business path where we are going The Body Shop should gain market share and fade his leadership position in the cosmetic industry worldwide. They should be more famous and extend their brand sense all over the world.The Body Shop volition follow with his ethical values and develop new products and services in order to be more competitive. In other words, The Body Shop has to create new opportunities to leverage their brand globally. To achieve these goals, The Body Shop has to pursue and to improve the broader corporate goals of economic growth and around-the-clock improvement. The Body Shop should go along out world-class performance by attaining a strong competitive position in target markets. hand customer expectations for quality and value. do in excess of the cost of capital over a business cycle. These elements can be make thanks to The distinguished brand The heritage of integrity and teamwork. The advanced skills The special relationships that have long existed between the company and the employees, customers, dealers and other business partners around the world The Body Shop has to pursue his natural products based more on well being than beauty. They have to follow their government activity about ethics and fair trade and stay oriented by the environmental friendliness. The Body Shop has to be focus on customer satisfaction. The management has to be more profits oriented and be more aggressive in order to survive. Types of business , the body shop should be in The Body Shop should open his shops to new customers.Nowadays there is a new market with men and old people. They should segment their products and adapt them to new consumers needs and expectations. They also should create and develop a friendly website where customers could see all of their range of products and buy them online. Question 4 Financial and strategic objectives Financial objectives Outcomes focussed on improving financial performance ? execute revenue growth of 10% per year This objective is important and it is achievable. Indeed, thanks to P. Gourmay they have upseted very good performances in term of profits and sales. This objective leave be the consequences of the new strategy implementation.It also ordain be the results of a better customer satisfaction and brand awareness. This objective can be generate thanks to an internal growth as I said in front but also thanks to an external growth. It will be interesting for The Body Shop to visualise leagues with big actors of the cosmetic industry. ? Increase net profit margins from 2% to 4% As we can see in The Body Shop slip, that during Christmas period they have interesting margins. This objective can be the results of graduated table economies, and costs reductions. Strategic objectives Outco mes focused on improving long-term, competitive business position. Different strategic objectives could be developed ? Have more attractive products than rivals Be more focus on customer satisfaction ? stumble customer loyalty ? be more innovative ? Gain recognition as a leader in natural products We are going to focus on 2 main objectives ? be more focus on customer satisfaction This element is key point to ensure the future of the Body Shop, they have to be more customer oriented, to understand their needs and expectations. If customers are satisfied and look considered, they will be naturally more loyal. As we know, a loyal customer is cheaper than a new customer. Different tools will be developed in the new strategy in order to reach this objective. Moreover, The Body Shop will have a new strategy to obtain new customers. Gain recognition as a leader in natural products The core competency of The Body Shop is his capacity to create natural products. To gain market share, they should use this element and work on it in order to be recognize as a leader in the natural cosmetics industry. This element will give to the Body Shop an excellent and famous branding image. The Body Shop will have an image of particularised companies, with strong skills and know-how. Question 5 Corporate and business strategies In order to reach the financial and strategic objectives gave above, The Body Shop has to realise some actions to be more and more competitive during the five next old age The Body Shop has to follow his strategy of distinction by launching natural Products with elements from all over the world. The essence of a broad differentiation strategy is to be unique in ways that are valuable to a wide range of customers. (Hough, J et al 2008 152) To be very effective, The Body Shop has to study consumers needs and behaviours to understand what they consider important, what they think has value and what they are willing to pay for. This buyers study will help the m to create new products and services perfectly competent to consumers expectations. It they follow this strategy and try to be totally different, the consumers will accept to paid more and will be able to identify them to the brand.This strategy needs also to have a strong corporate culture based on innovation, the human resources have a strategic role, they have to recruit germinal employees. The employees have also to be trained in order to be innovative and creative. Have a bigger brand awareness is necessary for the Body Shop. That is why they have to invest more in marketing. They already have a strong identity but they have to diffuse it thanks to new media opportunities. The colloquy is an important element, more advertising campaign will add value and summation brand awareness. A powerful world advertising campaign will be interesting. As the Body Shop is a brand with strong values and politics, they should realise a different campaign as Benetton has done few years ag o.In this campaign, they have to be different and to communicate about their natural products, that is to say their specific skills, their high quality and excellence. The campaign will be a paper campaign or a TV one, if the budget allows these expenditures. As I said before, The Body Shop has to be customer oriented. They should realise a friendly website where customers will be able to see their range of products and services and where they would be able to buy online products. It will permit to customers to have good references and to be easily found on the world wide web. The website will permits to the organization to be more attractive and to attract a maximum of internet users. The organization should develop his customer loyalty programs all over the world. People like to be tactful as a specific customer and expect to have a specific treatment. The loyalty card encourages consumers to be loyal in order to receive presents and special offers. They also could extend their services Selling at home should be proposed in numerous countries. Customers love being the main interest of the companies. With this service they feel lovingness and have the feeling to have customized services. We have also seen that additional services as massages have increase the sales. People after having a nice moment want to buy the products used during this time.The Body Shop should propose services as sauna and hammam for example. The Body Shop should not stay a break market. The new trends and lifestyles give them big opportunities. They should realise a segmentation of their products that is to say they should have specific products for men and old people for example. They have to innovate and to adapt them to the changes. The Body Shop is already a global company but they should be present in other market as India, an appear market. The beauty is an important value on this country, and the Indian beauty is known all over the world thanks to LOreals muse. This new market can ensure new sales and market shares, it is a new opportunity. The Body Shop should adopt a more aggressive strategy the competition should not be underestimating. The company has to be more profit oriented. To reach their objectives, they can realise some alliance with a big brand as LOreal. Indeed, this alliance will permit them to shares their resources and capabilities in applied science and innovation for example. It will help them to realise new products. The creation of new products will also be strategic elements in specific period as Christmas. The Body Shop should realise limited products to give exclusivity to some customers. With specific range of products for this specific period, The Body Shop will improve his differentiation.All these changes require strong involvement of the management and employees, The Body Shop has to be more reactive, and they have to adapt them of their environment lifestyles etc. As Gourmay done, the company has to change its struct ure when it is not adapted in order to be profitable and to promote innovation in the company. The culture has to be supportive and be oriented on differentiation and creativity. The resources are necessary to invest on an advertising campaign for example, but these marketing tools can lead to an increase on sales, market share and profitability. The company has to think regionally and globally in order to be present in new market as emerging market.The control is an important step, it is important to evaluate the actions done and to learn from the mistakes. The evaluation permits to have a continuous improvement, The Body Shop should be more control oriented. Question 6 Balanced scorecard for The Body Shop THE BODY cheat HEAD OFFICE MAIN OBJECTIVE Increase their market share all over the world, be a leader in natural products and have a better brand awareness pecuniary CUSTOMERS INTERNAL LEARNING AND GROWTH - Refocus on retailing - Increase their satisfaction - Reinve ntion of The Body Shop - Training of employees to be brand more creative and innovative - New market shares - New products and services Selling in new market India (massages.. - New structure -Profiling the staff - Revenue growth of 10% per year - Better adaptation to each - New strategy, plans and - New staff recruitment countries needs and preferences leadership - Innovative culture - Increase of the share price - Better communication - Products line and distribution take rationalized - Selling new products - Customer retention - Decentralization of the -Selling to new consumers -Customer achievement management - Alliance with cosmetics - Redesign the stores, better - New values quality and companies LOREAL for example brand image excellence - More customer information - Regulatory control - More prominently - Be a good corporate citizen - More loyalty programs References Hought, J. Arthur, A. Thompson, Jr. S trickland III, A. J & Gambie, J. E. 2008. Crafting and Executing Strategy. McGraw Hill internationalist Edition. Piercy, N. The Body Shop. A case for burial or rising from the grave? The Body Shop values report. 2007.The Body ShopThe Body Shop Table of contents Introduction2 Section A3 A comprehensive strategic analysis of the industry3 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. 3The key success factors of the beauty industry and The Body Shop7 1. 4) The SW(OT) analysis of The Body Shop8 Question 28 Applicability and effectiveness of new CEO Patrick Gournays strategies8SECTION B10 Question 310 Vision and Mission10 Question 411 Financial and strategic objectives11 Question 512 Corporate and business strategies12 Question 615 Balanced scorecard for The Body Shop15 References Introduction The cosmetic industry is one of the b iggest 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 1The 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 envir onment. 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 trendsThe 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) reg ulations) Globalisation (driving force) T8 Strong local and foreign competition T9 Increase in prices T6 Economic and international environments Increase in the budget bound for beauty (general economic conditions) O6 Cosmetic industry huge market Alliance groups in the cosmetic industry to attract new customers O8 (driving force) O7 Societal environement (societal values and Growth of the free time importance to take care of our body and O6 lifestyles) beauty Importance of well being O8 Importance of the beauty (driving force) O8 Be young and stay young O8 Ageing of the population (segmentation of products) (driving force) O7 New market for men (new products.. ) (driving force) Companies and customers have more and more social responsibility O8 Different needs and preferences according to the countries and the skin differences O7 Societal environement (societal values and lifestyles) Important demand variations and fashion effects in terms of O6 cosmetics Growth of the worldwide market of cosmetics (driving force) O6 T8 O7 Use of internet to buy products (driving force) O6 Rapid innovation (waterproof ) (driving force) T7 Need of strong technological capabilities Technological environment Strong marketing innovation (driving force) T7 T8 Respect the environment O10 Environmental aspects Sustainable development O10 Fair trade O8 Bio market and products (driving force) O9 Environmental aspects Ecology O8 After this analyse of the trends, components and driving forces of the industry, it is interesting to see the place of the competitors in the industry. 1. 2 the competition immediate industry and competitive environment In order to understand the dynamism of The Body Shop, we have to understand the competitive str ucture of the cosmetic industry.The competitive structure of this market and the critical rules of the game set by the industry can be explained by using the Porters model of competitive forces in the cosmetic market. The Porters model is composed by five forces, the nature and strengths of the competitive pressures associated with these five forces have to be examined force by force to identify the specific competitive pressure which each comprises and to decide whether these pressure constitute a strong or weak competitive force. (Hough, J et al 2008101). It permits us to establish how important the market is to current and potential competition. Porter s model of competitive forces in the beauty market pic These forces are explicated in this table - High local and international competition - The Body Shop has to face the direct competition in the domestic and international markets - Face the numerous cheaper competitors Rivalry competition - Lots of competitors a s supermarket, beauty institutes, hair dresser, perfumery HIGH - Big brands with strong image Dior, Yves St Laurent, Estee Lauder Rivalry competition HIGH - Too much brands - Too difficult to obtain a brand image and customer loyalty Threats of new entrants LOW - Numerous regulations - There are not really substitutes products but there are lots of others brands.. - The substitutes products will be Threat of substitute products HIGH - Cheaper products, no name brands - Products tested on animals - Non natural products - Imitative products Bargaining power of suppliers Their impacts are not too big MEDIUM - High expectation in terms of quality and services Bargaining power of buyers HIGH - New generation with internet, buyers can compare prices After this analysis, we can follow with the key success factors of The Body Shop. 1. 3the key success factors of the beauty industry and The Body Sho p Key success factors are the products attributes, competencies, competitive capabilities, and market achievements with the greatest impact on future competitive success in the marketplace. (Hough, J et al 2008 97) In order to succeed and to be competitive, The Body Shop has to manage key success factors. So we can say that cosmetics brands have To be innovative and to propose new products To obtain global distribution capabilities To have strong e-commerce capabilities (friendly website) and the possibility to buy online products To have an excellent and famous branding image customers could identify them to the brand and its values. To be different To maintain high level of quality and services in order to improve customer satisfaction and loyalty In the next part, we can realise a SWOT analysis to evaluate if The Body Shop meets these key success factors. 1. 4) The SW (OT) analysis of The Body Shop The SWOT analysis provides an overview of the firms situation and it is an e ssential component of crafting a strategy tightly matched to the companys situation. (Hough, J et al 2008 138).The SWOT analysis is composed by the strength, weaknesses, opportunities and threats. We have already done the opportunities and threats in the macroenvironment analysis that is why we just evaluate here the strengths and weaknesses of The Body Shop (internal environment). STRENGHTS WEAKNESSES Global business Lack of new products Ethical business To slow to get new market share High social responsibility Stores too old, need a new design Respect of human rights Unpopularity of the Body Shop in the city and in the business community Present all over the world (in 47 countries) Lack of enthusiasm Anti animal testing practices Failure in different countries ex France, USA.. Good manufacturing and wholesale Big problems with franchises Reorganisation to the firm to a management group Lack of adaptation to the needs and pre ferences of overseas markets Importance of the environmental friendliness (ex USA) Strong corporate culture in the firm ( involvement of the staffs in Not a strong retailer the campaigns) Important financial losses Products naturally made Products and concepts easily imitated Uniqueness of the products in term of its packaging Too much importance in launching environmental projects and too less Strong identity in running business Different suppliers from different ethnics and groups Followers in cutting prices A.Roddick ethical and strong leader Prices more expensive than the other competitors Importance of staff selection Lack of advertising Question 2 Applicability and effectiveness of new CEO Patrick Gournays strategies P. Gournay was a business man with experiences. He wanted to create a new strategy for The Body Shop in order to be a unique brand, different to the others. This strategy was focus on different point Be faster to launch new products (less than one year). Redesign the stores to satisfy the customers and to improve the brand image. Cut the number of products by 25%, to be focus on heritage products. Acquisition with Cosmo Trading for ? 7 million to have more control on European operations Restructuration New products with a strong Body Shop identity Hemp, differentiated products New leadership Reclarify the mission and vision of the company be a strong retailer Outsource manufacturing and find manufacturing partners in each region Cut administration costs Decentralization in 4 main regions Focus on customer satisfaction Even if some problems were still present in UK and USA, and if some periods were more critical than the others as Christmas for example, the P. Gournays 2000 strategy was a new life for The Body Shop. After some mistakes due to bad choices and a lack of experience in the cosmetic industry P. Gournay planed a real revolution in The Body Shop organisation.In a result of this revolution, profits rose by ? 9 million to ? 271 million compared with the same period in 1999 and most of his objectives were achieved. These elements show a very good execution of his strategy. It is always easier to plan a strategy but the implementation of it relieve to strong efforts in leadership and management. The organisational changes that is to say the restructuration as well as the decentralization of the company were very good strategic changes. It permits to share the responsibilities and to involve more the employees in this new strategy. P. Gourmay is a strong leader, he had the capacity to believe in The Body Shop future and to be fast to react.It understood the needs of the markets in creating new products as well as new services as home selling. He also wanted to be more customer oriented, improving the brand image thanks to the redesign of the shops and developing marketing tools as customer loyalty program in UK. Even if his lack of experience in the beauty indu stry was claimed, he was able to refocus the company to be a strong retailer. The results of his strategy have been done by better profits, share value and sales. Gourmay looks to be a good communicant, he explained numerous times his choices and the aim of his strategy, this step is important to create a strategy-supportive culture.The applicability and effectiveness of his strategy have been recognized by analysts, by the business community but also by all the company. Section B Question 3 Vision and Mission A mission statement focuses on current business activities who we are and what we do The Body Shop is a global business, based on ethics, his products are known and famous for their naturally and because they are not tested on animals. The Body Shop is an organization with strong values and identity. The Body Shop was one of the first organization focuses on social responsibility and fair trade. The Body Shop offers natural cosmetics and personal care products. They have ser vices as home selling and massages in their shops.With ageing of population and the importance of well being nowadays, customers have strong expectations in terms of quality and excellence. The sustainable development is a recent value in our society and customers expect companies as The Body Shop to respect it. The Body Shop is a good retailer it has manufacturing partners in each of his four region area. This organization has the capacity to create new 100% natural products and to be involved in social causes. A strategic vision concerns a firms future business path where we are going The Body Shop should gain market share and extend his leadership position in the cosmetic industry worldwide. They should be more famous and extend their brand awareness all over the world.The Body Shop will follow with his ethical values and develop new products and services in order to be more competitive. In other words, The Body Shop has to create new opportunities to leverage their brand globa lly. To achieve these goals, The Body Shop has to pursue and to improve the broader corporate goals of profitable growth and continuous improvement. The Body Shop should Achieve world-class performance by attaining a strong competitive position in target markets. Exceed customer expectations for quality and value. Earn in excess of the cost of capital over a business cycle. These elements can be reaching thanks to The distinguished brand The heritage of integrity and teamwork. The advanced skills The special relationships that have long existed between the company and the employees, customers, dealers and other business partners around the world The Body Shop has to pursue his natural products based more on well being than beauty. They have to follow their politics about ethics and fair trade and stay oriented by the environmental friendliness. The Body Shop has to be focus on customer satisfaction. The management has to be more profits oriented and be more aggressive in order to survive. Types of business , the body shop should be in The Body Shop should open his shops to new customers.Nowadays there is a new market with men and old people. They should segment their products and adapt them to new consumers needs and expectations. They also should create and develop a friendly website where customers could see all of their range of products and buy them online. Question 4 Financial and strategic objectives Financial objectives Outcomes focused on improving financial performance ? Achieve revenue growth of 10% per year This objective is important and it is achievable. Indeed, thanks to P. Gourmay they have reached very good performances in term of profits and sales. This objective will be the consequences of the new strategy implementation.It also will be the results of a better customer satisfaction and brand awareness. This objective can be reach thanks to an internal growth as I said before but also thanks to an external growth. It will be interesting for The Body Shop to realize alliances with big actors of the cosmetic industry. ? Increase net profit margins from 2% to 4% As we can see in The Body Shop case, that during Christmas period they have interesting margins. This objective can be the results of scale economies, and costs reductions. Strategic objectives Outcomes focused on improving long-term, competitive business position. Different strategic objectives could be developed ? Have more attractive products than rivals Be more focus on customer satisfaction ? Gain customer loyalty ? be more innovative ? Gain recognition as a leader in natural products We are going to focus on 2 main objectives ? be more focus on customer satisfaction This element is key point to ensure the future of the Body Shop, they have to be more customer oriented, to understand their needs and expectations. If customers are satisfied and feel considered, they will be naturally more loyal. As we know, a loyal customer is cheaper than a new customer. Different tools will be developed in the new strategy in order to reach this objective. Moreover, The Body Shop will have a new strategy to obtain new customers. Gain recognition as a leader in natural products The core competency of The Body Shop is his capacity to create natural products. To gain market share, they should use this element and work on it in order to be recognize as a leader in the natural cosmetics industry. This element will give to the Body Shop an excellent and famous branding image. The Body Shop will have an image of specific companies, with strong skills and know-how. Question 5 Corporate and business strategies In order to reach the financial and strategic objectives gave above, The Body Shop has to realise some actions to be more and more competitive during the five next years The Body Shop has to follow his strategy of differentiation by launching natural Products with elements from all over the world. The essence of a broad differentiation strategy is to be unique in ways that are valuable to a wide range of customers. (Hough, J et al 2008 152) To be very effective, The Body Shop has to study consumers needs and behaviours to understand what they consider important, what they think has value and what they are willing to pay for. This buyers study will help them to create new products and services perfectly adapted to consumers expectations. It they follow this strategy and tried to be totally different, the consumers will accept to paid more and will be able to identify them to the brand.This strategy needs also to have a strong corporate culture based on innovation, the human resources have a strategic role, they have to recruit creative employees. The employees have also to be trained in order to be innovative and creative. Have a bigger brand awareness is necessary for the Body Shop. That is why they have to invest more in marketing. They already have a strong identity but they have to diffuse it thanks to new media opportunit ies. The communication is an important element, more advertising campaign will add value and increase brand awareness. A powerful world advertising campaign will be interesting. As the Body Shop is a brand with strong values and politics, they should realise a different campaign as Benetton has done few years ago.In this campaign, they have to be different and to communicate about their natural products, that is to say their specific skills, their high quality and excellence. The campaign will be a paper campaign or a TV one, if the budget allows these expenditures. As I said before, The Body Shop has to be customer oriented. They should realise a friendly website where customers will be able to see their range of products and services and where they would be able to buy online products. It will permit to customers to have good references and to be easily found on the world wide web. The website will permits to the organization to be more attractive and to attract a maximum of inte rnet users. The organization should develop his customer loyalty programs all over the world. People like to be considerate as a specific customer and expect to have a specific treatment. The loyalty card encourages consumers to be loyal in order to receive presents and special offers. They also could extend their services Selling at home should be proposed in numerous countries. Customers love being the main interest of the companies. With this service they feel caring and have the feeling to have customized services. We have also seen that additional services as massages have increase the sales. People after having a nice moment want to buy the products used during this time.The Body Shop should propose services as sauna and hammam for example. The Body Shop should not stay a niche market. The new trends and lifestyles give them big opportunities. They should realise a segmentation of their products that is to say they should have specific products for men and old people for exa mple. They have to innovate and to adapt them to the changes. The Body Shop is already a global company but they should be present in other market as India, an emerging market. The beauty is an important value on this country, and the Indian beauty is known all over the world thanks to LOreals muse. This new market can ensure new sales and market shares, it is a new opportunity. The Body Shop should adopt a more aggressive strategy the competition should not be underestimating. The company has to be more profit oriented. To reach their objectives, they can realise some alliance with a big brand as LOreal. Indeed, this alliance will permit them to shares their resources and capabilities in technology and innovation for example. It will help them to realise new products. The creation of new products will also be strategic elements in specific period as Christmas. The Body Shop should realise limited products to give exclusivity to some customers. With specific range of products for this specific period, The Body Shop will improve his differentiation.All these changes require strong involvement of the management and employees, The Body Shop has to be more reactive, and they have to adapt them of their environment lifestyles etc. As Gourmay done, the company has to change its structure when it is not adapted in order to be profitable and to promote innovation in the company. The culture has to be supportive and be oriented on differentiation and creativity. The resources are necessary to invest on an advertising campaign for example, but these marketing tools can lead to an increase on sales, market share and profitability. The company has to think regionally and globally in order to be present in new market as emerging market.The control is an important step, it is important to evaluate the actions done and to learn from the mistakes. The evaluation permits to have a continuous improvement, The Body Shop should be more control oriented. Question 6 Balanced scor ecard for The Body Shop THE BODY SHOP HEAD OFFICE MAIN OBJECTIVE Increase their market share all over the world, be a leader in natural products and have a better brand awareness FINANCIAL CUSTOMERS INTERNAL LEARNING AND GROWTH - Refocus on retailing - Increase their satisfaction - Reinvention of The Body Shop - Training of employees to be brand more creative and innovative - New market shares - New products and services Selling in new market India (massages.. - New structure -Profiling the staff - Revenue growth of 10% per year - Better adaptation to each - New strategy, plans and - New staff recruitment countries needs and preferences leadership - Innovative culture - Increase of the share price - Better communication - Products line and distribution channels rationalized - Selling new products - Customer retention - Decentralization of the -Selling to new consumers -Customer acquisition management - Alliance with cosmetics - Re design the stores, better - New values quality and companies LOREAL for example brand image excellence - More customer information - Regulatory control - More prominently - Be a good corporate citizen - More loyalty programs References Hought, J. Arthur, A. Thompson, Jr. Strickland III, A. J & Gambie, J. E. 2008. Crafting and Executing Strategy. McGraw Hill International Edition. Piercy, N. The Body Shop. A case for burial or rising from the grave? The Body Shop values report. 2007.