Body Shop Case Study

SUMMARY The body shop international is a world-wide producer and retailer of naturally inspired, ethically produced beauty and cosmetics products. noblewoman Anita Roddick exposed the very first the body shop® broth in 1976 in Brighton, on the south coast of England. In the modern 1990s, The Body discover International PLC, ran aground. Although the firm had an one-year tax receipts 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, speech intense rival for The Body Shop. 2. The Body Shop failed to put forward its brand prototype by becoming something of a mass-market blood line as it expand into almost every mall in America, as thoroughly as virtually every boxwood on Britains shopping streets. 3. After Anna Roddick stepped down as chief decision maker officer (chief op erating officer) in 1998, Patrick Gournay came on board as CEO by which problems persisted in spite of 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 smart scheme 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 register costs. 3. To reinforce the stakeholder culture. TYPES OF FINANCIAL FORECASTING 1. T-Account fortune telling : utilization to estimate shareholders equity and fixed assets. 2. Percentage-of-Sales forecasting : Used to estimate income statements, current assets and current liabilities, because these latter items may credibly vary with sales. Other items will vary as a percentage of account s other than sales. ! ANALYSIS Question 1 How did you derive your prognosis? Why...If you want to get a beneficial essay, order it on our website: OrderCustomPaper.com

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