Company Strategy

652. Week 3
A.  Please submit a computer-generated strategy schematic (e.g., PowerPoint, word, excel) that includes needs, activity fits, measures and an activity list.  As indicated on the syllabus, you may develop an activity list in a small group if you find that helpful. 
Aside from the activity list, the remainder of the schematic must be your own individual work.

Further schematic creation guidance (step by step):

1. Map needs across the top of the document since these are the drivers of strategy.  Be sure to distinguish each as primary, secondary & required.
2. Draw arrows in red to convey conflict potential between needs.
3. Map activity fits & associated measures in the middle of the document.
4. Draw arrows of synergy/support in blue to convey that an activity fit supports a need.
5. List activities that support each activity fit beneath the measure for each activity fit.
6. Draw arrows in red to convey that an activity fit potentially conflicts with a need.
7. List activities in red if they conflict with an activity fit.

B.   Also, please provide justification (from case data) supporting your prioritization of needs (primary, secondary, required, ignored).  Justify from Body Shop's perspective why you identified needs as primary versus secondary, etc.  This can just be a few sentences for each need.   

The Body shop Customer need assessment
Required needs

• Affordable price.

Products price that target customers could afford.

• Variety of products offering.

Customers tend to buy products that could achieve objectives and available. Each person having various quality valuation such as preferences, tastes or budgets. The company offer variation to meet those needs.

• Accessible.

Customers tend to buy products from the place that easy to access. It could be difficult to buy products or services from the place that hard to find.

Primary needs

• The best quality products from natural ingredients.

Customers prefer products that safe for their life. Natural ingredients are claim that do no harm is one of the things that all people want. The Body Shop products made from all-natural plant-based ingredients that has been using for centuries, which could assure the risk of injury that could occur during the use of consumer products will be less to almost zero.

• The company with highest social and environmental responsibility.

Customers tend to buy products from the company that they can trust. The company mission to be as the company that accepted the responsibility that came with company’s economic power and become engines of social change. The Body Shop social and environment acts improve customers trust, most people are willing to pay for products and services from companies that are committed to creating a positive impact on society and the environment.

Secondary needs

• Well trained staffs, knowledgeable, and convey the product information to customers.

Customers experience the good products and services through the clearly information and friendly atmosphere. The sales staffs are the most important agents who directly influence to the customers. The company create the training session in order to assure that our sales staffs and the franchisees understand the product’s information clearly and be able to convey the products information to educate customers. More than that, the company also reassure that the staffs have to be well trained to be friendly with customers as well.

• In-store experience.

Customers who are impressed and happy with the experience in the shop is much more likely to come back and buy products. The company make sure to provide customer with a relaxing, honest and enjoyable shopping experience with our products and services in our shop. Customers also want to know the ingredient and benefit of the product before making decision. The Body Shop has displayed product information in the clear simple label, card and stand around the shop to generate the confidence for customers.

Ignore needs

• Advertising marketing strategy.

Customers likely buy products that they feel familiar. Products advertising speaks for products and convey the information to customers through various channels. The Body Shop would not do the advertising and marketing, the company does not elaborate claims or promotions rather prefer to illustrate strong personalities behind the brand and lets products speak for themselves.

• Chemical ingredients.
  Customers do not want to buy the products that contain dangerous chemical, due to the personal safety and try to avoid using them as possible. The Body Shop company practice is to refuse on using the chemical ingredients which is do harm for our customers.

Activities fit:

1.Constantly sourcing new effective natural ingredients from around the world. => / product development report / Staff volunteers

2. Develop products quality พัฒนาสินค้าให้มีคุณภาพ , ปลอดภัย เพื่อความ satisfy ของลูกค้า => Lab Test/ R&D / Cust feedback

3Control products and services quality => store visiting and assessment reportคัดเลือกเฟรนชาย เยี่ยม สตอร์ บ่อย  / employee report/ customer feedback

4Displaying clear and simple products information to customers throughout the store’s display and products themselves ให้ข้อมูลที่เป็นจริงกับลูกค้าด้วยความซื่อตรง => customer feedback

5+pay back เพื่อสังคม ++ การสร้างงานให้กับ ผู้ที่ด้อยโอกาส => company report

6 Encourage Staffs’ innovation กระตุ้นให้พนักงาน คิดนวัตกรรมใหม่ เพื่อไปใช้พัฒนาสินค้าและบริการ และเปิดช่องสื่อสารถึงฝ่ายบริหารระดับสูงได้ง่ายดาย => employee report/

+การที่เราดำเนินธุรกิจไปพร้อมกับการยึดถือความซื่อสัตย์ต่อทั้งพนักงานของเราเอง และซื่อตรงต่อลูกค้าในด้านการบริการและคุณภาพของผลิตภัณฑ์ รวมถึงพาร์ทเนอร์หรือคู่ค้าในโครงการการค้าชุมชน ยึดถือเรื่องความเสมอภาคเท่าเทียมของผู้คน นำมาสู่แคมเปญการรณรงค์ต่างๆ ของเราเป็นต้น

8 encourage shop owner and employees ให้ take action at local level => franchise response

The Body shop Activities List:

1. Using natural ingredients plant-based as the substances for products.
2. The company offer service to refill the produce in recyclable containers serve as the 15% discount. This service attracted more of the new generation as environmentally-conscious consumers.
3. Loaning £4,000 Euro from bank to develop business.
4. Developed line of skin products and hair care products from exotic ingredients which natural ingredient.
5. Anita Roddick prepared the first product batches on her kitchen stove, packaged in plain plastic bottles.
6. Customers mentioned that the products are less irritating to sensitive skin.
7. The products labels provided detailed information about the ingredients and their properties.
8. Hired local art student to create company logo £25.
9. The company promote the relax and honest shop environment.
10. Anita Roddick formulated new products and constantly tried to draw attention to her business.
11. Opening a second store by amount of fund of £4,000 from a local businessman with by exchanged of a half share in the fledgling business.
12. In April 1977, Mr. Gordon discover the idea of franchising to expansion company with limited capital.
13. First two franchisees launched in nearby towns.
14. The products label contains the information that intended to clarify the unfamiliar ingredients to customers.
15. Roddick, create a unique environment in stores toward promote the honesty, excitement and fun rather than overly sophisticated.
16. Self-service perfume bar in order to allow customer engagement.
17. The company experienced growth through the 1980s expanding at a rate of 50% annually.
18. The company’s stock was given name as “the shares that defy gravity”, as the price increased more than 300% after a full listing on the London Stock Exchange.
19. Both of the products and the stores had developed, however continue with the original concepts and continue in the same identity of the company.
20. Customers will experience the identity of the Body Shop store as has the bright light spaces, trimmed in dark-green, with a black-and white tiled floor.
21. The display products in stores including the cards in front of each display that contain the simple and descriptive information about products. As well as the stacks of pamphlets provided information on a range of topics. And a giant Product Information Manual that describe each product in detail in one corner of the store.
22. The whole experience in the Body Shop store as, “theater, pure and simple” as Roddick’s visualize.
23. Product prices are in the middle range between cosmetics in exclusive department stores with the mass merchandised cosmetics.
24. Train sales staffs to be friendly and knowledgeable.
25. In early 1991, there was 586 of the Body Shop stores worldwide.
26. From most of 90% of 586 stores worldwide are franchises.
27. The company’s important role is to testing new products and marketing concepts, and sensing customer interests and trend.
28. The company appointing a head franchisee in each major national market to responsible to administration.
29. The franchise contract was for 5-10 years and become profitable in 2-3 years.
30. Roddick strictly examines and filters franchise candidates to get only people who are appreciated the same value of the products and the idea of the company.
31. The extensive training on product knowledgeable, merchandising and store operations for the franchisees.
32. Roddick spent two to four months annually, researching new natural ingredients around the world with her anthropologist.
33. Roddick always enthusiastic researching about personal care habits, in order to acquire the information of the affection from the natural ingredients around daily life.
34. The Body Shop acquire customer ideas and feedback through widely used suggestion boxes located in each outlet.
35. Roddick had worked with herbalist since the startup.
36. The staffs volunteer to test products themselves. (because they trust that these could be really safe due to the used of the ingredients for a long time and the risks might be small).
37. The company employed an outside academic to test toxicity and effectiveness.
38. In 1990, the company established a formal research department.
39. In 1990, received the Animalia Award for animal protection.
40. By over 70% of Body Shop products were supplied by outside contractors.
41. The company desire to increase its in-house manufacturing from 30%-50% by early 1990s.
42. The company acknowledged using some synthetic preservatives, ingredients derived from petrochemicals, and artificial colors.
43. The company had no marketing or advertising department.
44. The company made no elaborate claims or promotions.
45. The Body Shop’s products never be on “sale” priced.
46. In 1980, the company hired a PR consultant to push free publicity rather than regular marketing, advertising agency.
47. Roddick strictly control over layout, literature, window displays including operating style through regular visit regional managers.
48. The company’s Write Stuff Department which including five writers, six graphic designers, created and constantly changing brochures and displays.
49. Roddick visit stores regularly and maintain the enthusiasm and commitment of employees by constantly worked at communications within the company.
50. Roddick encourage employee to be more creative and incentivize with bonuses to innovative suggestions.
51. The information of what Roddick has been discussing even the reports of her last trip and the new products information were communicate through the bulletin board, a fax machine and video player, the in-house video production company, a monthly multi-lingual video magazine, the Talking Shop, the training tapes and documentaries on social campaigns.
52. Roddick encouraged upward communication through a suggestion scheme to DODGE (the Department of Damned Good ideas) system, regular meeting of cross section of staff, her home and a “Red Letter” system that let any employee to directly communicate with a director.
53.  Roddick introduced a system of two-way assessment by asking staff to evaluate their manager’s effectiveness.
54. The company built a day care facility day care facility at its Littlehampton headquarters. The charge for a day care service was staggered by salary level.
55. The company offered a free day care slots to social service organizations.
56. In 1986, a training center in London offering courses on the company’s products and philosophy, problem hair and skin care and customer services.
57. The company also offered free course for any employee of the company or franchisees, which are the session on topics as sociology, urban survival, aging and AIDS.
58.  The Body Shop went public since 1984.
59. Roddick entered into an alliance with Greenpeace, began campaigning through the shops to “save the whales”.
60. Roddick turn the primary alliance to be with Friend of Earth instead of Greenpeace because of some disagreements.
61. Roddick create the campaign to urge the awareness on acid rain, recycling and ozone layer depletion.
62. Roddick turned over display windows to posters, and distributed literature through the shops
63. Roddick set up a fore person Environmental Projects Department, to coordinate the campaign and ensure that the company’s own products and practices were environmentally sound.

The company using biodegradable packaging and refilling 2 million containers annually as well as expanded its use of recycled paper, substituted reusable cases for cardboard shipping boxed, and offered refunds on returned packaging. The company also banned smoking in all its offices and shops and provide bicycles at low prices to over 350 headquarters employees.

1. In 1987, the company implement its own environmental and social campaigns.
2. Roddick set up a Community Care Department and talking to franchisees about having every shop commit to a local need, and supporting it by allowing staff time off to work on the project.
3. The shops worldwide were response to the community.
4. Roddick makes sure that the franchisees who do not participate to response to the community as her encouraged them to do so, will not be able to acquire another shop.
5. Roddick launched “Trade Not Aid” policy in 1987, with the objective of “creating trade to help people in the Third World utilize their resources to meet their own needs”.
6. In 1987, Roddick make Boys Town in southern India which is the primary supplier of Footsie Rollers- the Body Shop foot massagers. Retail profits from these products funded the boy’s healthcare and education.
7. In 1989, Roddick raised the money to open a new village in India is The Body Shop Boy’s Town, with facilities to house and employ 85 boys to produce soap bags, woven baskets, Christmas cards and silk-screened T-shirts. Over three years 3,000 jobs were created as the impact of the program’s spread into surrounding communities.
8. Roddick apply “Trade Not Aid” to in Nepal as found that all the entire villages unemployed as a result of a government limit on the harvest of the traditional source of material for their handmade paper. From expertise who suggest alternative sources of paper fiber and the company decide to committed to order bags, notebooks and scented drawer liners that allowed a large family paper factory to convert to the new production. In 1989, the company bought the land for another papermaking factory and employed 37 people. A portion of the profits were used to replant the area and other ten percent went to the Nepal Women’s Association.
9. The company cancel the Boy Town due to issue with the sub-contract middle man. And other project in Bangladesh, with the various supply problems.
10. In 1989, the company locate a new 33,000 square foot soap factory in Glasgow suburb of Easterhouse with £1 million.
11. The Soapwork, was expected to provide a third of The Body Shop’s worldwide soap needs. 25% of the after-tax profits from this factory were to be put in a charitable trust for the benefiting the community.
12. Roddick attend a rally protesting the construction of a dam which would flood 15 million acres of rainforest in Brazil, she took action after returned to England and raised £200,000 from meeting franchisee. With the initiation of “Stop the Burning” poster campaign, and organized a petition which contain the collection of 1 million signatures in four weeks.
13. Roddick and 250 of her staff marched on the Brazilian Embassy in London in an attempt to deliver the sacks of protest letters to the Ambassadors.
14. The company associate with several other organization such Amnesty International and FREEZE, the anti-nuclear weapons group.
15. In 1988, the Body Shop has stores over 200 in 33 countries. In this year the company established in the U.S. cosmetics market with 50,000 square foot production and warehouse facility in Morristown, New Jersey. The British expatriate is the director, who was previously the president of Unilever’s fragrance subsidiary, twelve company-owned shops were opened on the East Coast.
16. In 1990, the company in the U.S. began franchising with the end of the year had an amount of total shops of 37. The total sales were £5.8 million, or 7% of total revenues.
17. The Body Shop in the U.S. do not advertise.
18. In 1990, the company experiencing the challenge of operation loss in the U.S.
19. In 1991, the company’s sales in the United Kingdom was 67% of the company’s total, consider grown by 1%.