ipl-logo

Business Strategy Case Study: The Body Shop

1251 Words6 Pages

The company’s stated strategies of brand enhancement through a “focused product strategy and increased investment in stores; achieve operational efficiencies in our supply chain by reducing product and inventory costs; reinforce our stakeholder culture”. We have prepared a few base case assumptions to project the Body Shop profitability in a more competitive market space given the trending increase in operational costs. The company has used percentage of sales to determine the external financial needs. Our forecast suggest that the Body Shop will need additional financing of £44.4, £41.1 & £36.3 million for 2002, 2003 & 2004 respectively (Exhibit 1). The company’s growth is declining and losing market share in the interim. A new strategy should be implement while still maintaining stakeholder value to effective complete new market entrant and established companies. We believe of forecast assumptions will guide the Body Shop through a new capital structure and its expansionary strategies. The projected assumptions derived from the analysis of historical financial information provided from the company financial statement. The forecasting method used is the Percentage-of-sales forecasted on a Pro Forma basis for 2002-2004. This method was …show more content…

Firstly, the financial analysis shows that Excess Cash entries netted zero in the projected years, meaning company will need to take on some debt to finance its growth. Secondly, Long-term Liabilities is trending downward during the same 3 years. Our assumption is that Body Shop will not issue new shares, the downward trend of debt means the company have a higher free cash flow that comes from the increase in revenue and cost reductions, which verified that the valuations would make the company financially secure going

Show More
Related

  • Target Corporation Business Strategy

    328 Words  | 2 Pages

    Target Corporation (NYSE:TGT) is one of the most recognized discount retailer that provides upscale, trendy merchandise at affordable prices. The company was founded by Draper Dayton in 1902. The first store was opened in Roseville, Minnesota during 1962. As a result of Target’s continued success, its parent company, The Dayton Hudson Corporation was renamed to Target Corporation in 2000. Currently, Target is the second largest retailer and mass merchandiser in the United States.

    Read More

  • Calaveras Vineyard Case Study Solution

    1061 Words  | 5 Pages

    The total value of the firm has been calculated with the help of PV of cash flows and the continuing value and it shows an amount of

    Read More

  • Business Planning Activities Case Study

    1112 Words  | 5 Pages

    Business Planning Activity – Notes Only Document (Please answer each question thoroughly and retain a copy of this information for your records) 1. Describe your vision for building your practice at Edward Jones. How do you plan to add value to the clients and communities you will serve? My vision for building my practice at Edward Jones is to provide the best financial service and knowledge to those in my community.

    Read More

  • Analysis Of Chipotle's Sensitivity Analysis

    1385 Words  | 6 Pages

    Sensitivity Analysis The sensitivity analysis focuses on examining how Chipotle’s valuation changes when some key inputs vary. Two of the most important inputs of the valuation are the weighted average cost of capital (WACC) and the perpetuity growth rate. In this thesis, it is assumed that Chipotle would have a WACC of 6.65% and a perpetuity growth rate of 2.84%, which would result in a share price of $443.90 for Chipotle.

    Read More

  • Business Strategy Case Study: Under Armour

    795 Words  | 4 Pages

    Under Armour faces a twofold challenge, in the product and market area. Their heritage product category was compression Heat-Gear, and Nike the major competitor, was planning to take control of the new customers generations by creating a whole new line called Nike’s Pro Combat. Besides that, the marketing side was also having struggles. Since Nike created a strategy in which a strong emotional connection with customers was developed. This would have as repercussion the displacement of the Under Armour brand and therefore the slow decline of the company.

    Read More

  • Mdelic Wasatch Outerwear Case

    1376 Words  | 6 Pages

    Sales projections are incredibly difficult to predict for a new company but, considering the above analysis of the financial statements, we can tell that Mdelic Wasatch Outerwear should improve their current financial position but it is still in a favorable position and we can expect positive results. I also think that we need to keep improvinging and I have a few suggestions: 1) Explore new markets We should start exploring new markets for our business and take the time to plan how we can expand our existing market. We can look for ways to improve our marketing, whether by winning easy publicity or preparing direct mails. 2) Have a Limited-Time Sale or Promotion

    Read More

  • Marketing Strategy: Trader Joe's Business Strategy

    1120 Words  | 5 Pages

    For the business-level, Trader Joe’s adopted a differentiation focus strategy. According to our textbook with this strategy, Trader Joe’s seeks to differentiate in its target market. They rely on providing better service than broad-based competitors. Specifically, they focus on the special needs of the buyer in other segments (Dess, Page 159). Joe’s differentiates its self from other grocers by providing a unique shopping experience fortified with their private label goods and great service from their crew members.

    Read More

  • Stakeholder Analysis Body Shop

    941 Words  | 4 Pages

    Introduction This case study explores the acquisition of the Body Shop, which is one of the largest franchise cosmetics companies in the world, by L’Oreal. The main concentration of the case study aims at investigating the impact on business ethics and corporate social responsibility by the concentricity of the Body Shop and L’Oreal and how the general attitude and buying behaviour is distorted in the course of this acquisition. L‘Oreal being the big conglomerate in the cosmetics industry acquired the Body Shop International which is comparably small but having iconic brand of environmental and socially responsible concerns, on 17 March 2006, through a covenant of $1.2 billion. The combination of two brands in a newly formed conglomerate implies a combination of values, principles and associations that might affect a company’s appeal. The verity that L 'Oreal 's acquisition of the Body Shop provides plenty of potential growth opportunities is undeniable; nevertheless the question of how well the acquisition sits in the group of the world 's largest cosmetics company is another matter.

    Read More

  • Primark Case Study

    939 Words  | 4 Pages

    HR Practices of Primark Primark is clothing retailer from Ireland which has operations in Austria, Belgium, France, Germany, Ireland, Portugal, Spain, Netherlands, United Kingdom and soon the United States. The company was founded and has its headquarters in Dublin, Ireland. It has around 51,250 employees worldwide as per the latest estimates. HR Management in the 21st Century: Challenges for the Future Recruitment and development: One of the most important challenges facing global organizations in the 21st century is building the ability to attract, recruit and retain the best talents amidst huge competition with competing organizations. In order to do so the company must create an environment where everybody enjoys working and using their

    Read More

  • Ll Bean Case Study

    1854 Words  | 8 Pages

    L.L. Bean. Inc Item Forecasting and Inventory Management Executive Summary L.L.Bean, Inc. has been a trusted source for quality apparel, reliable outdoor equipment and expert advice for over 100 years. Founded in 1912 by Leon Leonwood Bean, the company began as one-man operation. With L. L.'s firm belief in keeping customers satisfied as a guiding principle, the company eventually grew to a global organization with annual sales of $1.56 billion. The company headquarters are in Freeport, Maine, just down the road from the original store.

    Read More

  • Advantages And Disadvantages Of Henry Mintzberg's Prescriptive Schools Of Strategy

    1331 Words  | 6 Pages

    Firstly, the Boston Consulting Group (BCG) matrix that concentrate the market position of different products. Secondly, the experience curve and the Profit Impact of Market Strategies model which identified a number of strategic variables. Furthermore, competitive advantages model (Porter, 1985) which focus on five different forces in environment of organization, but suit with only stable market. Generic strategy was developed strategies under this school, especially it can identify position in the market. Advantages: -Provide content in a systematic way to the existing way of looking at strategy -Particularly useful in early stage of strategy development, when date is analyzed -This school emphasis on analysis and calculation can be a very strong support to the strategy development process -This strategy suit with big businesses or organization which have ability for operate effective market research in the environment

    Read More

  • PESTLE Analysis Of Zapp's Potato Chips

    746 Words  | 3 Pages

    The biggest financial worry is the presence of its challengers in the business. Also, the company has to research the goods, business approaches, and other characteristics of all possible

    Read More

  • Marks And Spencer Competitive Analysis

    1614 Words  | 7 Pages

    Similarly, it is also essential to assess the feasibility of the constructed business strategy to determine whether it can be implemented to new product concept development successfully or not. It depicts that for Marks and Spencer the proposed business strategies in reference to new product development must be scaled. This process is started while idea generation and financial planning as well as continue to the process of implementation. Here there are number of aspects that are necessary to take in consideration such as company should make sure can the developed business strategy be funded, organisation have the capability to meet the required level of performance in terms of products quality, store services and other. At the same time, it is also essential for Marks and Spencer to determine the marketing and management capabilities needed to maintain the achieved market and competitive position.

    Read More

  • Pet Food Marketing Plan

    2648 Words  | 11 Pages

    Table of Contents 1.0) Executive Summary 3 1.1) Objectives 3 1.2) Mission 3 1.3) Keys to success 3 2.0) Product and Services 4 2.1) Sourcing 5 2.2) Technology 5 3.0) Market Analysis Summary 5 3.1) Market Segmentation 6 3.2) Target Market Segment Strategy 7 3.2.1) Market Trends 7 3.2.2) Market Needs 8 3.2.4) Market growth 8 4.0)

    Read More

  • Case Study Of Ajinomoto (Malaysia) Berhad

    1437 Words  | 6 Pages

    In addition, the net profit margin of the Ajinomoto Berhad is increasing. I recommend that the investor can invest in the Ajinomoto Berhad as the profit can be made through the investment in the Ajinomoto

    Read More

More about Business Strategy Case Study: The Body Shop

Open Document