Critically Evaluate Business Growth Opportunities Outside Of The Home Market: Case Study Analysis Of The Body Shop

Critically evaluate business growth opportunities that are available outside of the business’ home market; 
Apply knowledge of business management concepts and techniques to enhance abilities to discover and develop a business opportunity;
Critically evaluate how planning, organising and control activities impact on performance in a new overseas market; 
Exercise judgement in developing strategic decisions to utilise business opportunities internationally;
Coordinate and integrate planning organising and control activities to develop an international business opportunity;
Analyse data and information in order to make informed investment and management decisions when developing an international business opportunity.

Why Body Shop has been so successful?

Introduction

Body Shop is a British skin care, cosmetic and perfume company. Dame Anita Roddick founded it in the year 1976. It has approx. 3,049 franchised and owned stores internationally in 66 countries. Previously the company claimed for testing its 50% of the products on animal so it took an initiate for it that was against the animal testing. The main core value of Body Shop is against the animal testing. Various campaigns and policies were started by Body Shop (Crawford-Spencer and Cantatore, 2016). The founder Anita also participated in the campaign that held for protecting the habitats in Nigeria. In the first section of the report, case study questions have been answered by using various theories regarding that. The discussion has been done on how Body shop has been successful and what initiates were taken by Body Shop in order to beat competition. Besides this, there are various issues also attached with the personal branding. The discussion is also done on the dangers of having the brand so linked to the entrepreneur. By applying various management concepts and theories, all the questions asked are tackled. The implication of the concepts and theories helped in answering the questions in best way. In this research, the analysis is done based on given case study on Body Shop.

In today’s time, Body shop is one of the most successful cosmetic companies of the World. Due to various initiatives taken by the company, it has become successful. The main reasons behind the success of Body Shop are “stop animal testing on products” mission (Edwards, 2014). Besides this, it also started the campaign that is against the human rights abuse, socially uplifting activities, and environmental protection. It is also essential for the companies to fulfil the corporate social responsibility (Wickert, Vaccaro and Cornelissen, 2017). Therefore, by fulfilling the social activities, it is most popular among the customers. Several new policies are also implemented by Body Shop that helps the company in getting success. Besides this, it has segmented the market in a better way by targeting the customers in various geographical areas.

Franchise was one of the best decisions that helped the body shop to achieve the initial success. It became the most essential part in the body shop. It has received the regular visit on the part of company representative that provide the sales promotion, assistance with display and training. The overseas expansion also followed this pattern in UK. Therefore, it is clear that proper planning, organizing, and controlling activities help the organization in smooth functioning of the organization. Initially, Roddicks has also decided not to manufacture the products and even invest in system of distribution. The initial decision of concentrating more on the franchise formula has helped the company in its initial success. It has taken this decision, as there are many opportunities lying outside the home market also. Entry mode theory assisted the body Shop to expand its wings in various parts of the country and work globally.

Strategic decision that contributed most to its initial success

It is true that body shop has been growing well now days. Company has taken the decision for stopping the manufacturing of products as well as for distribution system. It has taken this decision in order to concentrate or more focus on the franchisee business. It has taken this decision in order to develop its brand and protect the brand from copycats. By stopping this, it has started its own warehouse as well as distribution network that is based on the stock control system that is too sophisticated. By doing this, it assured the product delivery within the 24 hours. By doing this, it can satisfy the customers and get the strong brand image (Abdeen, Rajah and Gaur, 2016). This also assists the organization in getting various business opportunities that are lying outside. The manufacturing of many of the cosmetic is also started by Body Shop in UK. Most of the ingredients that will help in making the final product came from the overseas. Therefore, by the proper market research about the opportunities available outside the home country will help it in expanding its wings internationally also.

It is true that personal brand have several disadvantages. Risk is one of the most important factors associated with having the brand linked with entrepreneur. When it is self-managed, it will come with the risk (Harris and Rae, 2011). However, in case of professionalism, brand can work in favour of the company.  In the given study also, Body Shop has faced various controversies that has badly affected the Body Shop image. It also leads to poorly motivated shareholder, unsuccessful attempts of restructuring, as well as demotivated franchisee. Besides this, it is also true that branding takes a lot of energy as well as time whether it is large corporation or just an individual. In a personal branding, if firm fails to keep it up-to-date or being consistent, then it will definitely suffer the negative outcomes from it.

Yes, body Shop company is linked well with the values and vision of its founders. For example- testing any ingredients on animal is considered immoral as well as scientifically exposed. In recent time also, Body Shop has took an initiative against the animal testing. For this, various well-known celebrities have also signed the petition for it (Brunk, 2017). The core values made by the company in the starting are followed until now. It is protecting the environment in a better way by fulfilling its corporate social responsibility. It is one of the main reasons behind the success of the business by protesting against the animal testing as well as environmental protection. In addition to this, it is also one of the core values of the company to every individual in a better way. It is following this vision until now by offering the products and services in a better way. By following all its values and vision in an effective way, it is manage its business in various countries.

It is true that fulfilling the Corporate Social responsibility is essential in today’s time. Besides this, it has also segmented the market by targeting the people from most of the geographical areas. It is true that prices should also be low to attract the more and more customers toward the brand. In this regard (Popescu and Iosim, 2015) stated that low prices are the key to success of business enterprise. However, prices of body shop are this much high that a middle level customer has to think about it before purchasing the product.

The decision of the company to stop distribution and manufacturing

Conclusion

In the limelight of above discussion, it can be conclude that Body Shop is growing well in various parts of the country. Due to its diversified products and wide variety of services, it is growing at larger scale. Protest against animal testing is one of the most successful campaigns of the body Shop. In spite of its various failures in its initial phase, it is one of the most successful companies of the world. It is true that proper planning plays an essential role in the organization while expanding its business internationally. It helps the organization to set its goals in advance and work according to that.

International entrepreneurship plays an essential role in every organization. It is the process taken by the entrepreneur for conducting the business activity across various countries that may consists of licensing, exporting, or taking franchisee. The subject is important as it helps me in understanding how firms can succeed by expanding their wings in various countries. Body Shop has taken the franchisee and opened its shops in various countries. It is essential for the organization in order to turn their dreams into the reality (The Body Shop, 2017). It is done by applying various theories and concepts of management. In the reflective essay, I have explained the various aspects that I have learnt form the case study regarding the international entrepreneurship.

According to me, international entrepreneurship is something when any entrepreneur effectively uses the skills to understand the international environment and expand its business. By identifying the opportunities in cross-culture, firms turn them into the value-creating initiative. Expansion strategy helps the organization to expand its wings internationally (Fernhaber, Gilbert and McDougall, 2014). For an entrepreneur who is thinking to move further is required to expand its market. As per my understanding, it increases the sales in the current market, becomes easy, and risk free expanding. However, it requires location that is more appropriate, various pricing strategies, and marketing technique in order to become successful. Same in the case study, Body Shop has expanded the market by taking franchisees. I have learnt that a franchise is also a good step taken by the international entrepreneur for increasing its market share as well as customer base. In my understanding, it requires the great patience on the part of entrepreneur. In addition to this, corporate social responsibilities also hold a strong position for international entrepreneur (Singh, 2016). As per my understanding, utilitarian theory also states that a best action is that which produces the best thing and that is in the wellbeing of most of the people. For assuring the best possible output, it is also necessary for the entrepreneur to take several steps for protecting the environment. I have seen that various entrepreneurs are successful like body Shop by taking several necessary actions for its organization (Türkel, Uzuno?lu, Kaplan and Vural, 2016). In recent time, protest against animal testing has become popular due to increasing threats on the environment species. In this regard, firms are required to understand the concept of utilitarian theory for expanding their wings in the international market (Kahane, Everett, Earp, Farias and Savulescu, 2015).

Dangers of having the brand so linked to the entrepreneur

In today’s time, it is significant for the firms to work in wellbeing of greatest number of people. I noticed that government has also taken various useful steps for the firms so that they will more indulge in ethical practices (Misani, 2010). Therefore, it will work in best interest of the people. International entrepreneurship is successful when you are serving the customers as per their needs and wants. I have also observed that innovation plays an essential part in any organization who wants to move further. Besides this, a global entrepreneur should also establish a clear vision that can be understand by customers as well as employees. According to me, global entrepreneur is very optimistic who is always positive and assumes that everything is possible. Besides this, employees should also feel that are significant in the global organization and are taken as important asset. Employees play an active role in the organization and they should feel their value and importance whenever any decision is taken by the organization. In the case study, I have observed that Body Shop has made the clear vision for its organization. Due to its clear vision, and short-term goals, it is one of the most successful brands in the whole world. For a global entrepreneur, it is important to focus on the wellbeing of the employees. Entrepreneur is required to put emphasis on her or his employees by building and inspiring them.

I have observed that competition is increasing largely in today’s hypercompetitive global economy. Political, cultural, economy, and legal environment differ from country to country. Therefore, the entrepreneur requires a proper research to properly know the condition as well as demand of customers in that country. It is true that there are various risks attached with the personal brand that requires the appropriate research by the organization. Above all the things, I think that planning, organising, and controlling are as much important for the international entrepreneur. Planning becomes essential due to increasing uncertainty as well as continuous changes. For an international entrepreneur, I think that planning provides a direction to the employees in the organization and they become more focused toward the particular goal (Chun, 2016). It also helps in minimising the wasteful activities that will negatively affect the organization growth. Due to assigned target, every employee comes to know what he or she has to done. Coordination also established among all the members of the organization. When any entrepreneur is planning to expand its business internationally, then in this case proper planning holds a significant position. Without proper planning, money can be spending less or more than the requirement.

From the case study, I have learnt that for succeeding in the competitive world, you require the innovative idea. For turning the idea into reality, it requires various efforts on the part of organization. As per my understanding, it is better to manufacture the product rather than taking it from other firms. It only requires the initial funding on the part of organization but after that, firms start getting return from that. It also helps the organization in getting the final product at very low cost due to manufacturing. It is also necessary for the organization to stick with its vision and follow that. It will help the organization to work in way that is more productive.

Conclusion

In conclusion, it can be stated that proper understanding of all the business concepts is necessary to start any business. It leads the organization in more productive path. Entry mode can be taken in various aspects. Franchisee is a good step that was taken by the Body Shop. It helps the organization in increasing its business at larger scale. Body Shop has also taken franchisee by which it is able to one various outlets in almost all the countries. Besides this, success depends in the organization on various other factors. Among all the factors, fulfilling social responsibility and environmental protection is essential. In today’s time, it becomes important for every organization to work in interest of the society as well as environment.

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