Essay The Body Shop International Plc

Words: 4868
Pages: 20
Open Document
Finance bored the pants off me. I fell asleep more times than not.1

—Anita Roddick, founder, The Body Shop International

In the late 1990s, The Body Shop International PLC, previously one of the fastest growing manufacturer-retailers in the world, ran aground. Although the firm had an annual revenue growth rate of 20% in the early to middle 1990s, by the late 1990s, revenue growth slowed to around 8%. New retailers of the naturally based skin- and hair-care products entered the market, bringing intense competition for The Body Shop. Amidst the competition, The Body Shop failed to maintain its brand image by becoming something of a mass-market line as it
1 2

Anita Roddick, Body and Soul (London: Ebury Press, 1991), 105. Jean …show more content…
In either case, you are preparing a pro forma, or projected, income statement and balance sheet for The Body Shop for 2002 (income statement for the entire year and balance sheet for year-end). All values should be in British pounds (GBP). Use the following assumptions as a guide:

Do

Sales:

Cost of goods sold (COGS): 38% of sales Operating expenses: Interest expense: 50% of sales 6% of debt (about the current interest rate)

Copying or posting is an infringement of copyright. Permissions@hbsp.harvard.edu or 617-783-7860.

No tC

The most widely used approach is a hybrid of these two. For instance, T-accounts are used to estimate shareholders’ equity and fixed assets. Percentage-of-sales is used to estimate income statements, current assets, and current liabilities, because these latter items may credibly vary with sales. Other items will vary as a percentage of accounts other than sales. Tax expense will usually be a percentage of pretax income, while dividends will vary with after-tax income, and depreciation will usually vary with gross fixed assets.

GBP422.733 million (a 13% increase over 2001)

op

Percentage-of-sales forecasting: This method starts with a forecast of sales and then estimates other financial statement accounts based on some presumed relationship between sales and that account. While simple to execute, this technique is easily misused. For instance, some naive analysts may
Show More

Related Documents: Essay The Body Shop International Plc

Body Shop International Plc 2001 Case Study Essay

The Body Shop International PLC 2001: An Introduction to Financial Modeling The following graph presents the forecast for the Body Shop’s income statement and balance sheet in 2002 to 2004: How did you derive your forecast? Why did you choose the “base case” assumptions that you did? The forecast takes into considerations the stated business objectives of the Body Shop as well as trends or patterns in the historical financial statement in exhibit 8. Further information on the calculations and…

Words 1667 - Pages 7

Retail Marketing Case Study - the Body Shop in Hong Kong Essay

Date: 06-01-2011 Word Count: 3710 Bachelor of Business (Marketing) Program Table of Contents Executive Summary 1. Literature Review 1.1 Sustainability 1.2 Store Design 1.3 Sustainable Store Design 2. Introduction of The Body Shop 3. Case Study: The Body Shop 3.1 Current Store Design 3.1.1 Store Infrastructure 3.1.2 Store Layout 3.1.3 Merchandise spatial planning 3.1.4 Visual Merchandising 4. Recommendation 5. Conclusion 6. References 1 2 2 3 6 7 8 8 9 11 12 13 14 23 24 Appendices…

Words 5588 - Pages 23

business environtment Essay

knowledge and operational expertise that are available from a range of industries to build successful and exciting companies. The company employs more than 50,000 people in 34 countries and has global branded revenues of £13billion in 2011 [1]. Tesco’s PLC- Tesco is a public limited company that has more than 530,000 employees in 12 markets. They serve more than a million customers each week. The vision of the group is used to guide the direction and decisions that the organizations take. Tesco has…

Words 3941 - Pages 16

Brand Management 1 Essays

Appendix 20 1. Introduction 1.1. Purpose The main purpose of this report is to discuss the branding of The Body Shop, focusing on the techniques and strategies used to build up the brand. Moreover, this report will evaluate the success of Body Shop base on their dimensions of performance. Also, there are recommendations are given which may help Body Shop boost their brand performance. 1.2. Background Brands play an important role in marketing area and it is considered as complex…

Words 3972 - Pages 16

Essay on Brand Audit

TABLE OF CONTENTS 1. Executive Summary………………………………………………… 2 2. Introduction………………………………………………………….. 3 2.1 History…………………………………………………………… 3 2.2 General information………………………………………. 3 2.3 News/Articles………………………………………………… 3 3. Main body……………………………………………………………….4 3.1 External Factors………………………………………………4 3.1.1 Market Structure……………………………………….. 4 3.1.2 Competitors………………………………………………. 4 3.1.3 Potential for Growth…………………………………..4 3.1.4 Other Factors……………………………………………… 5 3.2 Internal Factors…………………………………………………

Words 3407 - Pages 14

The Body Shop Essay

THE BODY SHOP GLOBAL STRATEGIES AND RECOMMENDATIONS ON HOW TO IMPROVE THEM Table of Content I. Executive Summary of The Body Shop II. Introduction III. SWOT Analysis of The Body Shop IV. PEST Analysis of The Body Shop V. Porter’s Five Forces VI. EVR Congruence VII. Recommendation VIII. Conclusion IX. References I. Executive Summary The Body Shop International PLC (Body Shop) is one of the largest cosmetics companies in the world…

Words 3874 - Pages 16

Essay on Tesco - International Strategy

EXECUTIVE SUMMARY After years and years of pursuing Sainsbury as the United Kingdom’s largest retailer, Tesco PLC broke through in 1995 and has become not only the largest retailer in the UK, but also the world’s 4th largest retailer, trailing only Wal-Mart, Carrefour and Germany’s Metro AG. Originally, Tesco’s soul focus was the retail grocery market. As of February 2010, the grocery market continues to be Tesco’s largest source of revenue and it has accounted for more than 50% of Tesco’s £…

Words 4062 - Pages 17

Swot Analysis Fist Draft Essay

Marks and spencer: Weakness: Firstly, Marks and Spencer PLC is one of the UK’s leading retailers, selling a variety of products including clothing, home furnishings and food, which may not have the flexibility of some of its more focused competitors. Those different products lines need differnet departments in which there is a lack of expertise that may result in their business not doing so well. Besides, M &S is also the World’s largest retailer which may lead to the weakness in some areas due to…

Words 1177 - Pages 5

Tata Group and Takeover Value Integration Essay

Edexcel (UK) Pearson PLC is both the largest education company and the largest book publisher in the world. In 2010, Pearson’s sales were £5.7bn, achieving a profit of £857 million. Pearson provides educational materials, technologies, assessments and related services to teachers and students of all ages. Edexcel is one of England, Wales and Northern Ireland's five main educational examination boards, and is wholly owned by the privatesector Pearson PLC making it the UK's only privately…

Words 6185 - Pages 25

Essay on Kingston upon Thames and Sports Www .Jjb . Co . Uk /Jobs Click

agencies……………………………....9 Local general vacancies…………………………………..11 Other useful websites (general)………………………….14 General part-time/full-time vacancies August 2014 Please note that not all companies advertise vacancies in their shop or in newspapers – you need to look on company websites to check for vacancies. A lot of companies also want applicants to apply on-line. Job Vacancies - It is important that you have product knowledge of the companies, so always check the…

Words 2082 - Pages 9