Body Shop Essay

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The Body Shop Case Recommendation Our recommendation for The Body Shop to fulfill its financing needs they will need to borrow 82.4 million GBP for 2002, 106.5 million GBP for 2003, and 132.9 million GBP for 2004. This financing need will be relatively high we believe, thus we would advise that The Body Shop cut back on unnecessary expenses, discontinue product lines that don't sell well, close stores that not make good revenue, expand more in ecommerce, and increase profit margins accordingly for a better net profit. For better growth of the company we suggest The Body Shop look more closely in to making products that have a lower cost to produce and create more new products that would differentiate them from its competitors. Also seeing that The Body Shop doesn’t have a marketing or advertising department we recommend they look more into possibility creating one to increase its presence. Company Background The Body Shop opened its first store on March 26th 1976 in Brighton England. Selling cosmetic products made from quality, locally sourced ingredients, the company gained popularity and began to grow. Expanding by opening corporate stores and by franchising, the first international store opened in 1978 in Brussels. By 1982, the company continued its success and was expanding at roughly two stores per month. The impressive performance lead the company’s founder, Anita Roddick, to turn The Body Shop public in 1985. International expansion hit the US market in 1989 and by 1990 there were over 2500 franchise applications worldwide. Complementing the store experience, The Body Shop At Home, a direct selling arm of the company launched in 1994 in the UK, in Canada in 1995 and in the US in 2001. To the continued success of their international franchises, in 1999 four new business units were opened in the Americas, the UK, Europe and Asia shifting both

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