Body Shop Case Study

SUMMARY The body shop international is a globose producer and retailer of naturally inspired, ethically produced beauty and cosmetics products. bird Anita Roddick exposed the very first the body shop® gillyflower in 1976 in Brighton, on the south coast of England. In the modern 1990s, The Body keep going International PLC, ran aground. Although the firm had an one-year tax revenue enhancement development rate of 20% in the early to warmheartedness 1990s, by the late 1990s, revenue growth slowed to around 8%. PROBLEMS 1. New retailers of the naturally based skin-and hair-care products entered the market, bringing intense rival for The Body Shop. 2. The Body Shop failed to prolong its brand prototype by becoming something of a mass-market patronage as it expand into almost every mall in America, as thoroughly as virtually every recess on Britains shopping streets. 3. After Anna Roddick stepped down as chief decision maker officer (ch ief operating officer) in 1998, Patrick Gournay came on board as CEO by which problems persisted disrespect the management change which was during the fiscal twelvemonth in 2001, the revenue grew 13% but the pretax profit declined 21%. OBJECTIVES Patrick Gournay implemented bran-new schema to improve results which are : 1. To enhance The Body Shop Brand through a think product strategy and increased investment in stores. 2.

To get operational efficiencies in the supply chain by decrease product and gillyflower costs. 3. To reinforce the stake holder culture. TYPES OF FINANCIAL FO! RECASTING 1. T-Account fortune telling : intent to estimate shareholders equity and fixed assets. 2. Percentage-of-Sales predict : Used to estimate income statements, current assets and current liabilities, because these latter items whitethorn credibly vary with sales. Other items will vary as a percentage of accounts other than sales. ANALYSIS Question 1 How did you derive your prognosis? Why...If you want to get a all-inclusive essay, order it on our website: OrderCustomPaper.com

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