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The Body Shop International CASE ISSUES Market SaturationLoss of Sales CI1 - Growth Strategy is no longer working for The Body Shop Their store growth has diminished since the mid-1990s and by 2002 the companys profit was shrinking and sales were not growing proportionally to the rapid expansion of stores Having entered a retrenchment phase they need to focus on profitability without rapid expansion Is Anita Gone CI2 - Though Anita Roddick stepped down as CEO in 1998 and resigned as Executive Chairman in 2002 it is unclear how much influence she has on day-to-day operations and strategy Core Values CI3 - By changing top management and governance The Body Shop runs the risk of losing their identity and their core values Losing touch with these values could cause a loss of reputation however clinging to them above shareholders value is also detrimental Loss of Image CI4 - The Body Shops image seems to be undergoing another makeover With Anita Roddick being at least a less visible member of the organization The Body shop no longer practices eccentricity for eccentricitys sake However changing their image has also meant they have lost their uniqueness among their competitors ICURRENT SITUATION ACURRENT PERFORMANCE The Body Shop achieved an overall solid performance for the year 2004 especially with strong sales in the USA 4 the Middle East 4 the Nordic countries 4 and most part of Asia pacific 2 However these encouraging numbers were offset by weak sale in the United Kingdom -13 Canada -10 and parts of Europe -7 This growth occurred while the growth of stores slowed This may signal a shift away from the extreme growth model to a focus on quality BSTRATEGIC POSTURE Missions To dedicate their business to the pursuit of social and environmental change To balance the financial and human needs of their stakeholders employees customers franchisees suppliers and shareholders To ensure that their
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