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Question 1 Anita Roddick and the Body Shop In 1976 Anita Roddick opened her first Body Shop store in Brighton England with 4000 in borrowed funds from a bank She began by selling a small range of skin and hair care products made from natural ingredients Roddick 1991 pp 19 76 In the beginning Roddick did not possess the skills necessary to run a large organization This can be seen when the Body Shop International BST at first had no business plan and no job descriptions As a result of this when the company expanded it became difficult to retain managers who sought to run the organization more professionally Hill and Jones 2004 p C178 Roddick thought that financial are not unimportant but to concentrate only on them in her view was a dumb thing to do Hill and Jones 2004 p C179 The companys troubles in the US market highlighted top managements lack of retail and marketing know - how Hill and Jones 2004 p C186 Wheelen and Hunger 2000 p 26 - 9 said that unsuccessful managers too many product lines copycat rivals who discount and too few products created specifically for the US consumer were of the biggest problems Besides that many of the US stores were located in expensive major cities that led to high real estate costs Due to lack of advertising the turnover in the Body Shop US leadership and low brand recognition contributed to the problem as well Wheelen and Hunger 2000 p 26 - 9 Another situation where Roddick showed that she did not possess the skills needed to run a large organization was when the BSTs rapid expansion began to create difficulties Instead of patiently learning the unique characteristics of the US market and perfecting sales in its existing shops the company charged into the top malls to which it was not accustomed to in hopes of beating its competitors Moreover Roddicks relationship
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