STRATEGIC ANALYSES

Strategic Analyses

Tamara Pogosian

Professor Osgood

Strategic Analyses

1. The Body Shop: what went wrong in the U.S.

Market Saturation/Loss of Sales (CI#1) - Growth Strategy is no longer working for The Body Shop. Their store growth has diminished since the mid-1990s? and by 2002 the company's 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? - 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. (Boulton? 1997? 12) "Our strategy is to move the brand to a 'masstige' positioning by developing innovative and credible products for our customers at affordable prices. Major developments during the year included two ingredient-led? technically advanced product ranges: a complete performance-driven Sun Care range that combines 100% mineral sunscreens with advanced antioxidant and moisturizing benefits; and a new Hair Care range (containing six Community Trade ingredients? including beeswax and honey from Zambia? and sesame oil from Nicaragua) that has been expertly formulated to deliver outstanding results. (Boulton? 1997? 12) “New products are a necessity in this industry. Product R&D seems to be a priority for The Body Shop. (Boulton? 1997? 12) New products are not always a success? though. The Body Shop's make-up line was rolled out twice unsuccessfully. This may be due to The Body Shop's focus on well-being and not beauty. (Charles et al? 2006)

1.1 Recommendations

"The Body Shop At Home business? in which agents sell products directly through parties? saw sales growth of 28 per cent in the ten week Christmas period? with sales up 34 per cent for the year to date." An operation is one area where The Body Shop's "Social Custodian" attitude both hurts and helps them. The Body Shop's Community Trade program contributes to the company's image. (Wartick? 1985? 766) By sourcing from third-world countries? they have a good image of helping underprivileged communities. (CI#4) While they do have a fairly spotless record in dealing with these communities? dealing with low-infrastructure suppliers presents potential logistics problems. (Committee? 1971? 12) HRM at the Body Shop is largely above reproach. The question that nags? however? is: To what degree must employees subscribe to the company's (Anita's) social agendas? In the early days of the company? Anita personally interviewed and judged the worthiness of each franchise applicant. (Charles et al? 2006) The degree to which this attitude filters to the employee level will be discussed in the next section.

2. Eli Lilly Strategic Analysis

The origins of the modern pharmaceutical industry can be traced to the late 19th century? whendyestuffs were found to have antiseptic properties. Roche? Ciba-Geigy? and Sandoz all started outas family dyestuff companies based near the Rhine in Basel? Switzerland. Slowly but steadily manychemical companies moved into synthetic pharmaceuticals and eventually became global players.Penicillin was a major discovery for the emergent industry during the 1940s. (Charles et al? 2006) Throughout that decadeand ...