1. HBR Case Study: The Body Shop International
Case Facilitation
Janssen Anderson
Staci Brandt
Heather Gunther
Jonathan May
Michele Moore
Debbie Nguyen
“Business people have got to be the instigators of change. They have the money and the power to make a difference. A company that makes a profit from society has a responsibility to return something to that society.”
Anita Roddick, Founder of The Body Shop

2. Agenda II. The Brains Behind The Body Shop Building The Body Shop
Janssen Anderson
II. The Brains Behind The Body Shop
Heather Gunther
III. The Body Shop Best Practices
Staci Brandt
The Body Shop Balance
Jonathan May
V. The Real Beauty Behind the Body Shop
Michele Moore
VI. The Body Shop Now
Debbie Nguyen

3. Building The Body Shop
Janssen Anderson

4. Brief History
The first store was started in 1976 by Anita Roddick in Brighton, England
Franchises were granted in 1977 and the first overseas franchise opened in Brussels in 1978
The Body Shop saw considerable growth in the 1980’s and shops were opening at a rate of two per month
1985 -The Body Shop went public on the UK unlisted securities market
Anita is selected with as the Veuve Cliquot
Business Women of the Year

5. Brief History con’t
Became officially involved with Greenpeace and in 1986 The Body Shop created an Environmental Projects Department with “Save the Whales” as it’s first official campaign
1987 “Friends of the Earth” campaign was launched
1988 Anita Roddick is awarded the Order of the British Empire by the Queen of England
Opens first store in the US in NY
1990 The Body Shop Foundation was
Established which funds human rights and environmental protection groups

6. Brief History con’t 1990 AGAINST ANIMAL TESTING campaign is launched
First shop opens in Tokyo
1991 has 586 stores in 38 different countries
2001 opens first shop in South Africa
2003 Anita is appointed as a Dame of the British Empire
New stores opened in Estonia and Turkey
2005 The Body Shop comes to Jordan and Russia
2006 The Body Shop turned 30 and is acquired by L’Oreal
Today The Body Shop has over 2,000 stores in 54 countries and has over 1,200 products

7. Competitors Bath and Body Works Origins Burt’s Bee’s Aveda
What others can you think of?

8. How has the Body Shop been so successful while defying industry norms?
What are important components of the success of the Body Shop?

9. Leadership Anita Roddick-”ethical leader” VISION COMMITMENT
PHILANTHROPY

10. Products Natural ingredients (honestly!) No animal testing Fair trade
“We wanted to be honest about the products we sold and the benefits we promised. We wanted to go in the opposite direction than the rest of the cosmetics industry. I would give that advice to anyone: “Focus on what the competition doesn’t have and promote that.” -Anita Roddick
No animal testing
Fair trade

11. Employees/Environment
Passionate
Simple
Fun
Knowledgable
Commited

12. The Brains Behind The Body Shop Heather Gunther

13. Brains Behind The Body Shop Anita Roddick
Parents were entrepreneurs
Trained in education
Library researcher in Paris
Geneva to work with Women’s Rights issues
Traveled throughout South Pacific and Africa

14. Brains Behind The Body Shop Anita Roddick
“Entrepreneurial Mindset” video

15. Brains Behind The Body Shop Anita Roddick
How important are Anita Roddick’s
qualities to her management style?

16. Brains Behind The Body Shop Anita Roddick
What are some interesting decisions that Anita Roddick made as a manager?

17. Brains Behind The Body Shop Anita Roddick
How would you evaluate how Anita Roddick makes decisions as a manager?
How did Anita Roddick deal with the following characteristics of managerial decision making?
Risk
Uncertainty
Conflict
Lack of Structure

18. Brains Behind The Body Shop Anita Roddick
How important was Anita Roddick’s role in ongoing management?
Decisions that she made
Interviews with franchisees

19. Brains Behind The Body Shop Anita Roddick
What would be some of the pros and cons of working as a franchisee under Anita Roddick?
How might management decision making change as a result of management succession?

20. The Body Shop Best Practices
Staci Brandt

21. The Body Shop Best Practices
“As she built her business, Roddick developed most of The Body Shop’s unique operating practices and management policies to respond to opportunities she perceived. From product development to human resource management, The Body Shop has been described as “innovative,” “daring,” and even “radical”. But there is no question it was successful.”
(HBR p. 4)

22. The Body Shop Best Practices
What were some unique managerial
decisions that allowed The Body Shop to
achieve some of its greatest “best practices,”
practices that differentiated them from others in the cosmetic industry?

23. The Body Shop Best Practices
What are some unique managerial
decisions in regard to:
Pricing
Franchising
Product Development and Production
Marketing and Advertising
Organization and Human Resources

24. The Body Shop Best Practices
Pricing
“Products were priced more expensively than mass merchandised cosmetics, but well under exclusive department store lines” (HBR p. 3)
“Sales”
..made no elaborate claims or promotions. And the products still packaged in plain plastic bottles were never “sale” priced.”

25. The Body Shop Best Practices
Franchising
Global Franchising
“By appointing a head franchisee in each major national market,
Roddick was able to concentrate on the development of new product
lines and the company’s global vision, rather than worry about the
complexities of administration or personnel management” (HBR p. 4).
Selection of Franchisees
“openly acknowledged a preference for women as franchisees” Calling it “The Body Shop’s secret ingredient”
Management of Franchises
“Roddick kept strict control over the franchising process…”
“Her objective was to ensure that The Body Shop image and the principles it was based on, were not diluted through franchising”

26. The Body Shop Best Practices
Product Development and Production
“Initially, product development had been derived by samples brought back in Anita’s back pack, and the creativity of the herbalist she had worked with since the startup” (HBR p. 5).
“Although over 70% of They Body Shop products were supplied by outside contractors, the company hoped to increase its in-house manufacturing from 30% to 50% by the early 1990s.

27. The Body Shop Best Practices
Marketing and Advertising
Advertising
“Noticeably lacking, for a cosmetics retail company, were any photographs of models with beautiful hair and perfect skin” (HBR p. 3)
“Roddick was fond of saying that her concept of beauty was Mother Theresa not some bimbo” (HBR p.3)
Marketing
“As a cosmetic retailer, The Body Shop defied most accepted marketing practices. In an industry where 30 cents on every dollar of sales was typically devoted to advertising, the company had no marketing or advertising department.

28. The Body Shop Best Practices
Organization and Human Resources
“Most businesses focus all the time on profits, profits, profits…I have to say I think that is deeply boring. I want to create an electricity and passion that bonds people to the company” (HBR p. 6).

29. The Body Shop Best Practices
What lessons can be learned from
The Body Shop as a corporation and from Anita with respect to managerial decision making?

30. The Body Shop Best Practices
What are some lessons that can be
learned from The Body Shop successes?

31. The Body Shop Best Practices
Lessons learned from The Body Shop’s success
Authenticity Adds Value
The Importance of Staff Selection
Globalization Can Lead to Greater Success.

32. The Body Shop Best Practices
The Secret of Authenticity
“Leadership demands the expression of an authentic self”
Managing Authenticity
“If business is managed from the heart, great things can happen”
Anita Roddick

33. The Body Shop Best Practices
Select Staff that Support the Vision of the Corporation
“We were searching for employees, but people turned up instead”
Anita Roddick
“In companies with healthy cultures, employees aren’t kept in the dark; rather they are supported in the belief that they are part of an exciting future. They come to work with a fire inside them, a result of clearly stated leadership and business practices that everyone explicitly understands. Every person in the company knows how to individually contribute to its future”
John Hamm

34. The Body Shop Best Practices
Go Global the Right Way
Exposure to World Markets through previous travels.
Passions for global humanitarian efforts afforded her the ability to build relationships with members of the international marketplace.
Roddick’s strong focus on communications.
“Communication is the key for any global business”
Anita Roddick

35. The Body Shop Best Practices
What are some lessons that can be
learned from The Body Shop failures?

36. The Body Shop Best Practices
Lessons learned from The Body Shop Failures
Don’t Confuse Your Personal Strategies with Business Strategies
Advertising and Marketing Add Value
Do Not Underestimate Your Competition

37. The Body Shop Best Practices
Keep your strategies clear
“Entrepreneurs are far more likely than corporate managers to
intertwine their business and personal lives”
Marketing News
“You can get as political as you like, but it should be remembered
that this company is essentially a shampoo outfit. People come to
work here mainly to get by in life-they should not need to support a
pile of political pressures in their day-to-day humdrum of work life.
The politics should come out into the open and let the shampoo
company make shampoo”
Written by an anonymous employee of The Body Shop

38. The Body Shop Best Practices
Let Advertising and Marketing Add Value
“In the rush to expand, we didn’t pay sufficient attention to marketing details.”
Anita Roddick

39. The Body Shop Best Practices
Competition can be fierce.
“What we didn’t have was a strategy to cope with competition that was so fast and furious. We had not thought of what might happen if a big retailer like Wexner, who rents an enormous amount of retail space in the malls in America, suddenly decided to turn one unit in each mall into a copycat of The Body Shop. Immediately, we had 500 shops competing with us. We never thought like that”
Anita Roddick

40. The Body Shop Best Practices
To what extent are these things
unique to The Body Shop and to what
extent might they generalize to other
businesses?

41. The Body Shop Best Practices
Video clip
Anita Roddick
“The Power of the Story”

42. The Body Shop Balance
Jonathan May

43. The Body Shop Balance How sustainable is the success of The Body Shop?
In particular, what should be
done about the emerging problems and
expected difficulties with operating the
business in the United States?

44. The Body Shop Balance The U.S. Market Challenge
“It was Gordon’s view that while the United States offered The Body Shop the greatest potential for growth, it also represents the greatest potential for disaster.” - Anita Roddick

45. The Body Shop Balance Challenges of the U.S. Market
The Body Shop image
Food and Drug Administration
Resistance to Advertising
Competition

46. The Body Shop Balance Should they advertise?
“It’s very hard to cultivate awareness and familiarity among consumers here without media advertising.” – David Altschiller
“There’s no example of anyone doing what we’re doing in America and making it work…” Anita Roddick

47. The Body Shop Balance What is the measurement of success?
Should The Body Shop compromise some of their values in the name of profit in the U.S. market?

48. The Real Beauty Behind The Body Shop
Michele Moore

49. The Real Beauty Behind The Body Shop
Anita claims that part of her goal is not just to create a successful business but also serve as a model for other businesses. Should businesses follow her model of social activism?

50. Role Model LOCAL TRADE RECYCLABLE PACKAGING GREEN PEACE
SAVE THE WHALES
FRIENDS OF THE EARTH
BODY SHOP FOUNDATION
AGAINST ANIMAL TESTING
A model for other businesses to follow?

51. Role Model 4 SOCIAL RESPONSIBILITY VALUES COMMUNITY AND GIVING
ENVIRONMENT
PARTNERSHIPS
FAIR LABOR PRACTICES
4 Social Responsibility Values
Doing What is Right – for associates, customers and investors
Being inclusive – in our thoughts and behaviors
Working for the greater good – of the enterprise and the communities in which we operate
Pursuing Excellence – in all we do
Community and Giving
Win the Susan G. Komen team challenge awards for the most participants in Columbus and Rio Rancho
Involved with
United Way
Tutoring Program
Giving Tree – Adopted moms during Mother’s Day and the Holidays
Associates for Associates Emergency Fund – for associcates who were victims of the hurricanes in 2005
Community Connections
Placed 140 Business leaders in community leadership roles and service on over 155 boards of directors of various non-profit agencies
Environment
Partnership with ForestEthics
To raise environmental standards in the catalog industry.
Ensure pulp used in catalogs is not from an endangered forest.
Minimize waste reduction
Conserve enrgy and preserve natural resources
Promote the increased use of recylced content paper
Select and partner with environmentally responsible suppliers
Forge relationships with environmental agencies and non-governmental organizations
Hold themselves accountable for environmental stewardship efforts
Natural Resources
Focused on reducing energy consumption in stores by increasing the energy efficienty of our ligting.
Catalogs made with either 10% PCW or FSC mixed-source content
Waste Management
2005 – significantly increased recycling efforts and reduced the amount of waste disposed of via landfill and other means
2005 – recycled nearly 8200 tons of paper and cardboard
Recycle close to 75% of all materials identified for disposal.
Efficient packaging
Made with PET, the most widely used plastic in consumer packing, that is readily recycled and made in an environmentally-friendly way
Efficient Transportation
Maximize use of ocean-going vessels and train to conserve fossil fuels
Partnerships: Currently have relationship with:
US EPA – Waste Wise Program
US EPA Smartway Program
Keep Franklin Beautiful Waste-Not Center
Ohio Association of Recyclers
National Recycling Coalition
Sustainability Roundtable of Central Ohio

52. Role Model NATURAL PRODUCTS NO ANIMAL TESTING ENVIRONMENTAL
HOLISTIC APPROACH

53. Role Model NATURAL PRODUCTS ENVIRONMENTALLY FRIENDLY
HUMANITARIAN EFFORTS
COMMUNITY EFFORTS:
AmeriCares
The Campaign for Safe Cosmetics
Coalition for Consumer Information on Cosmetics (CCIC)
The Conservation Alliance
Habitat for Humanity
Institute of Packaging Professionals
Lifestyles of Health and Sustainability (LOHAS)
The National Arbor Day Foundation
Natural Products Association
NC Green Power
Net Impact
North Carolina Sustainable Business Council
Piedmont Biofuels
Renewable Choice Energy
Sustainable Packaging Coalition (SPC)
University of North Carolina Kenan-Flagler Business School
U.S. Green Building Council

54. Role Model RECYCLABLE PACKAGING FAIR TRADE NATURAL PRODUCTS
ENVIRONMENTAL SUSTAINABILITY
GREEN ENERGY
EARTH MONTH

55. The Body Shop Now
Debbie Nguyen

56. The Body Shop Now ! The Body Shop was purchased in 2006 by L'Oreal.
Even though it had changed the ownership but the value of The Body Shop maintain the same.

57. Anita Roddick
Anita Roddick retained a role as consultant after L'Oreal bought the firm.
Anita Roddick is not only the founder of “The Body Work” but she’s also an author of many books.

58. Books wrote by Anita Roddick

59. Anita Roddick Anita Roddick cares passionately - Social responsiveness
- Human rights
- Environment
- Animal protection
Therefore, all her books are based on her passions and dedications to the World.

60. Anita Roddick cont.
Few years ago, she found out that she had hepatitis C infection.
“I want to use the last years I have to get my hands dirty working for civil change. I want to be able to see the positive difference that money can make by giving away what I have.”
In 2004, Roddick donated $1.8 million to Amnesty International, the human rights organization.

61. Anita Roddick
Feb. 2007, she revealed of being diagnosed with Hepatitis C.
August 2007, she appeared on live television program called “Doctor, Doctor” in UK as a special guest to talk about Hepatitis C.
Anita Roddick passed away on Sept. 10th 2007 at St. Richard’s Hospital.

62. Please give a minute to remember Anita Roddick, the founder of The Body Shop.

63. References
04 Sept <
04 Sept <
"Anita Roddick." Business the Ultimate Resource. Cambridge: Perseus,
Bateman, Thomas S., and Scott Snell. Management Leading and Collaborating in a Competitive World. Boston: McGraw Hill, 2007.
Goffee, Rob, and Gareth Jones. "Managing Authenticity." Harvard Business Review (2005).
Hamm, John. "The Five Messages Leaders Must Manage." Harvard Business Review (2006): 1-9.
Roddick, Anita. Business as Unusual. Chichester: Anita Roddick Books, 2005.
Roddick, Anita. Interview. The Entrepreneurial Mindset. 04 Sept <
Roddick, Anita. Interview. The Power of the Story. 04 Sept <
Saunders, Peter. Interview. A Welcome Message From Our CEO Sept <
Sullivan, Patrica. "Anita Roddick, 64; Founder of Activist Cosmetics Firm." Washington Post 11 Sept Washington Post. 11 Sept