Introduction The Body Shop International used to be one of the most successful a

Question

Introduction The Body Shop International used to be one of the most successful and fastest growing international cosmetics brands. Founded in 1976, The Body Shop spread across the world and ended up being in most malls across America and every corner in Britain's shopping streets. With every company that can find success at the rate that The Body Shop has, there has to be problems. With that being said, The Body Shop ran aground in the late 1990s and their growth rate, which was consistently around 20%, dropped to 8%. Competition and brand image were some of the major problems that the company is facing. Background The Body Shop International was founded in 1976 by Anita Roddick in a small store in Brighton, South England. Anita Roddick was born in 1942 in Litwchumpo, England and married Gordon Roddick in 1970. Anita, while her husband was riding a horse from Buenos Aires, Argentina to New York, decided to open her first Body Shop to sustain herself in her husband's absence. The first shop that was opened only sold 25 products, all of which were made from natural ingredients, were ethically sourced and were cruelty-free. The company is now selling over 300 products and have more than 2500 stores worldwide. During the early and mid-1990s the growth rate for the company was consistently 20% and towards the end of the 1990s the growth rate had fallen to 8%. This drop directed Anita Roddick into trying numerous times to reinvent the company in order to turn things around, but they were all unsuccessful. This

Explanation / Answer

Answer) On the basis on work and explanation of the case , the major problem with the company Body Shop interantional is to devlope its brand and increase its market share. Although company had good reach in America and UK market , but company should spread their presence in other near by market .

Company require fresh capital for expansion , it may create from external or interanl sources , but at the growing stage the external should be prefered , so company should acquire debt to improve SGR.

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