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Body Shop - Essay Example
Author : shadprohaska
Pages 8 (2008 words)
The Body Shop was founded in 1976 by Anita Roddick.1 (One of the funny side notes is that it's first shop opened right next to an undertakers office). For the most of it's early existence it had a local feel to it, A Family owned store In January 1986 The Body Shop company went to the London Stock Exchange Market…
It is said that, despite this huge change in ownership, "Anita Roddick's baby" will "retain its existing identity and values and operate independently within the L'Oral group, led by the current management team." Time will show the truth. The body shop continuously was on a rapid growth path right from the beginning , it encountered some turbulence during the end of the last decade. This paper will analyse the Historical data of the Body Shop and do a SWOT analysis on it's strengths and weaknesses review it's annual accounts over the period of 1999-2006. How it became an outstanding success despite defying the Industry norms. And finally how sustainable that success is. Based on the above a base case for 2007-09 will be prepared
A brief analysis of the historical data reveals that Financially The Body Shop is on a sound footing financially and was so until the purchase by L'Oreal. There is a healthy growth in the Turnover averaging around 8%. The cost of sales rarely exceed 40% leaving a fairly healthy margin to work with. That margin is again reflected in the fact that the gross profit is consistently around the 60% mark. ...