Small Business going global1 Contents A Case study analysis.................................................................................................................2 Introduction to case................................................................................................................2 The reason for body shop success..........................................................................................2 Strategic decision of the company in initial success..............................................................3 Reason for stoping distribution and manufacturing...............................................................4 Danger of brand and entrepreneurs linkage...........................................................................5 Role of vision of founders for company survival...................................................................5 Conclusion..............................................................................................................................5 B Reflection...............................................................................................................................7 Introduction............................................................................................................................7 Case study reflection..............................................................................................................7 Conclusion............................................................................................................................10 References................................................................................................................................11
Small Business going global2 A Case study analysis Introduction to case Going global can act as an opportunity or challenge for an organization. The report will consider the body shop case to analyse and understand the cause for success and challenges, and force of change for an organisation in international market. The purpose of the report is to assess the case and understand the social conscience and human aspect behind conduct of a business(Bruns, 2017). The body shop case reflected that the chairperson of body shop Company that is Anita Roddick has founded the company in 2002 and is considered to be one of the largest cosmetics companies across the globe. The company case included various initial success, challenges and controversies. The case reflected that the company has been conducting business with the human face that is the values and vision of the founder is the major aspect of the company which has led to various controversies in mid-1990’s. Moreover other major controversiesagainstthecompanyincludedthatthecompanyhavepoorlymotivated stakeholders,periodsoflosses,demotivatedfranchisees,publicpropaganda,and unsuccessful restructuring attempts by the company(researchgate, 2019). The reason for body shop success The company has been very successful initially for various reasons, where one of the major reasons is vision of Anita Roddick by evolving in small outlet in south England. The company has increased the existence in 50 nations and initiated more than two thousand outlets. Moreover the case suggest that the key reason for success of the company also included that the social causes considered by the company for positioning brand globally. The company has been working towards protesting against the social causes like testing the
Small Business going global3 products on animals. This was one of the reasons for the brand popularity and has gained attention in the competitive industry. The company claim to not testing the products on animals as part of the vision and values of the company and founder(Ahlin, 2014). Other than this, the reason also included human right campaigns by the company as the company believe in the human capability and the human capital of the company. The third reason for the initial success of the company is natural products, the company initiated to promote use of natural ingredients in order to keep the cosmetic section free of chemicals and help the customers to keep their skin healthy(Huggins & Thompson, 2015). Forth reason that has been identified for the success of the company initially is environmental protection,thecompanysustainablegoalsincludedenvironmentalprotection,thatid considered while procurement of the raw materials, packaging and ingredients used by the company(Amabile & Rigolizzo, 2015). Strategic decision of the company in initial success The strategic decision of Ms Anita that seems to be contributing towards the initial success of the brand is the mission of the company that reflects that the strategic direction of the company is not only to sell the cosmetics products, but the company will be working towards something different. The key to the success included the innovative ideas of the company like use of ingredients like Jojoba oil, aloe Vera, and cocoa butter that reflect the natural ingredient use in the cosmetic product to protect the customers from harmful chemicals. Moreover the strategic direction of the company also reflected through the policies and procedures of the company. The company has initiated the Greenpeace alliance to promote save the whales campaign. Thus it can be said that the company strategic direction was focused more towards gaining customer attention through environmental sustainability and social responsibility as part of the strategy of the company(Miao et al., 2017).
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Small Business going global4 Other than this the political involvement of the company and fighting for the human right in World trade organization by Anita is another direction that has gain attention in the global marketplace. Moreover the political involvement also included alliance and partnership with as a commitment towards sustainable development and human rights(Okpara, 2017). Reason for stoping distribution and manufacturing There have been various criticism identified for the company. Some of these criticisms were found to be the key reasons for stoping distribution and manufacturing as the change was expected and needed. The criticism included use of chemicals. The company initially claim to use natural ingredients in the product manufacturing process; however, it was found that the company was not using the natural ingredients only. The auditing found that the company has included chemicals in the products, and the transparency was also not maintained by the company as the company has not included this information through labelling. Thus the company was accused for misguide the customers which eventually become the reason was stoping distribution of the existing products with chemical salts and manufacturing with such process and ingredients. Moreover, the contaminated banana shampoo was identified for 151 batch products according to food and drug administration in 1993(hbr, 2019). Moreover,thecompanyclaimstoprotectenvironmentastheapartofenvironment sustainabilityplan,whichhasbeenalsoaccused,tomisleadthecustomersasthe investigating partners has identified the misleading claims by the company. The company was not found to use the environment efficient process and management system which reflected that the company need to change the process and found to be the reason for stoping distribution and manufacturing as volunteered by “European Union Eco Managements and audit regulation”(Dewald & Osiyevskyy, 2015).
Small Business going global5 Danger of brand and entrepreneurs linkage The case of body shop reflected that the strategic direction of body shop has defined and shadowed by its founder. The reasons being the values and vision of Anita has been implied through the strategic direction of body shop, which could be pros and challenging for the company. The reason being change in entrepreneurs may impact the business success; thus, the case evident that the company has been worked as per the entrepreneur. The case reflects the controversies of the company of “business with human face” have impacted badly on the company. The unsuccessful attempts by the entrepreneur has been affected poorly to the company as the company has been largely depended on the vision directed by Anita and Gordon, which could be danger for the company. This link of the company with the entrepreneurs that is the human face can be danger for the company(Bruns, 2013). Role of vision of founders for company survival The case reflected the major role of human capital, and entrepreneurs and the vision of the entrepreneurs have impacted the business majorly. For instance the innovative vision of founders and entrepreneurs has been responsible for innovative activities and strategy of the company. The company seems to be largely involved and depended on the entrepreneurs that may reflect after the exit of such entrepreneurs. For instance the strategic direction, and the innovative business ideas and innovation through product development is largely reflected through vision of entrepreneurs. Thus, the survival of the company could be in danger in case of exit of such entrepreneurs from body shop(Baron & Mueller, 2016). Conclusion From the case analysis, it can be concluded that the body shop case reflected various initial success, challenges and controversies. Company has been conducting business with the
Small Business going global6 human face which has led to various controversies. The key reason for success of the company included company been working towards protesting against the social causes. The key to the success included the innovative ideas of the company like use of ingredients like Jojoba oil, aloe Vera, and cocoa butter that reflect the natural ingredient. However, it was found that the company was not using the natural ingredients only.
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Small Business going global7 B Reflection Introduction Reflection is one of the ways to learn from experience of oneself and others. Case analysis is one of the ways to understand others experience in order to learn mistakes on positive actions taken by others so as to take corrective action in near future. This analysis of body shop has provided an opportunity for me to learn various terminologies and strategic actions to be taken in regard to international entrepreneurship(Gilson et al., 2015). Case study reflection The case study during the course reflected a major learning for me as from the experience it can be said that the term international entrepreneur, could reflect positive as well as challenging situation that will eventually be a major learning for me. As the case analysis initiated I was not aware if this could lead to any learning or could be helpful for me in future. However, as the experience initiated I realise that case from an entrepreneur could provide various aspects and few points which may be neglected(Koryak, 2015). From this experience, the major learning included Impact of entrepreneur vision and values over brand and brand image across the globe. The body shop case study included various success factors and strategies that have been used by an entrepreneur to make the brand successful across the globe. For instance, innovation is one of the major learning as a part of strategy for success of the company in today’s competitive world. An entrepreneur needs to consider continues change and innovation as the key aspect through business idea and strategic direction provided to the organisation and other employs or team within the organisation(Baron & Mueller, 2016).
Small Business going global8 Another learning that has gained attention from the case study included role of environmental sustainability within the business and impact on brand image. Environment is one of the majoraspectswhichisinvolvedinbusinesseitherinformofusingresourcesfrom environment by the business or providing the resources to the environment. Therefore, the case study of body shop reflects the role of environment in brand image and brand positioning in marketplace. This also included corporate social responsibility of the company as part of strategic direction, which could be a major learning for any other organisation to create position within the industry and gain customer attraction(Nyberg et al., 2016). One of the most important learning through the case study is “action reflects better than words.” This phrase has been used as one of the major challenge that has been identified from the case for Body shop organisation was that the company was found guilty or accused for not doing what it has been claiming for. For instance, the case included acquisition on the company for not using natural ingredients which the company claims initially. As it was found that the company was using chemical as part of ingredients while manufacturing the cosmetic products. Other than this the company also claims to use efficient manufacturing system and environmental sustainability goals, However it was found that the company was not acknowledging efficient system, processes and operations(Dosser & Nicol, 2016). From the key study analysis, some of the positive aspect included that the case provide a great learning of entrepreneurial success and actions or plants to be considered while conducting a business in order to expand the business across the globe. However there have been some negative aspects from this experience as well, like Case analysis did not provide solution that the company has used in order to gain or re-structure the brand. Therefore, I believe that other than challenges the restructuring of the company that is how the company has resolve that issue has not been provided in detail, which could be a major learning if available through the case(Bruns, 2017).
Small Business going global9 From the case and learning, the action that I would prefer to take in near future would include Innovation and change, one of the learning actions that I will be taking in near future in case of similar situation or being an international entrepreneur is considering innovation and change as the major strategic direction. From the case learning, I have believed that innovation is very important in any business as competition has increased to greater level which reflects that it is important to create differentiation or unique approach to product or services offer to the customer. Moreover, the environment has been changing rapidly which reflect that change is very important in business today.The change may be required due to rapid environmental changes or due to requirement of updating process, technology and approach(Fook, 2018). Another action that will be considered by me in near future in case, I will be in similar situationasapartofinternationalentrepreneurisconsideringstrategicviabilityand evaluation. From the learning it has been analysed that it is important to check the viability of the strategy is created for the organisation. In case the strategy seems to be unattainable or not people as per the current scenario, it must be updated or changed as per the requirement. I will prefer to provide strategic direction that will be based on the viability and must be reliable as per the current situation so that it is attainable for the organisation and employs working as a team. For this, I will be considered strategic evaluation on timely basis, So as to understand is the strategy created has been implied effectively and the results are similar to what is planned. In case of any deviations found, I will prefer to change the process or strategy according to the audit and evaluation(Okpara, 2017). Another action that I would prefer to take in near future after major learning from the case analysis is use of ethical approach. It has been identified that it is important for the company or entrepreneur to be ethical and use ethical approach while conducting business and taking strategic decisions. The reason being in long term it is important to be ethical so as to avoid
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Small Business going global10 majorchallengesandcontroversiesagainstthebusiness.Throughethicalmeansan entrepreneur could gain success or Profit for the company after a long time but the learning reflect that this approach will lead to success factor for the company in long run. This could be one of the major reasons for me to consider ethical approach while conducting business in near future as part of my action plan(Nyberg et al., 2016). Conclusion Therefore, from the reflection it can be concluded that the experience from the study analysis was integration of positive as well as negative aspects. The learning from the case study was affective and could be useful in near future for me. For instance using article approach, innovation and change, and vital strategic decisions are some of the major learning’s and action that I will prefer to consider in near future.
Small Business going global11 References Ahlin, B., 2014. Entrepreneurs’ creativity and firm innovation: the moderating role of entrepreneurial self-efficacy.Small Business Economics, 43(1), p.101. Amabile, T. & Rigolizzo, M., 2015. Entrepreneurial creativity: The role of learning processes andworkenvironmentsupports.TheOxfordhandbookofcreativity,innovation,and entrepreneurship, p.61. Baron, R.A. & Mueller, B.A., 2016. Self-efficacy and entrepreneurs' adoption of unattainable goals: The restraining effects of self-control.Journal of Business Venturing, 31(1), p.55. Bruns,P.,2013.CorporateEntrepreneurship:InnovationandStrategyinlarge organisations. 3rd ed. london: Palgrave MacMillan. Bruns, P., 2017.New venture creation: a framework for entrepreneurial start-ups. 2nd ed. Palgrave. Dewald, J. & Osiyevskyy, O., 2015. Explorative versus exploitative business model change: thecognitiveantecedentsoffirm‐levelresponsestodisruptiveinnovation.Strategic Entrepreneurship Journal, p.58. Dosser, I. & Nicol, J., 2016. Understanding reflective practice.Nursing Standard, 30(36). Fook,J.,2018.REFLECTIVEMODELSANDFRAMEWORKSINPRACTICE. Methodologies for Practice Research: Approaches for Professional Doctorates, 1, p.57. Gilson, P.W., Lim, H.S. & Gilson, L.L., 2015. 11 Creativity in Teams: A Key Building Block for Innovation and Entrepreneurship.The Oxford handbook of creativity, innovation, and entrepreneurship, p.177.
Small Business going global12 hbr,2019.the-dark-side-of-entrepreneurship.[Online]Availableat: https://hbr.org/1985/11/the-dark-side-of-entrepreneurship. Huggins, R. & Thompson, P., 2015. Entrepreneurship, innovation and regional growth: a network theory.Small Business Economics, p.103. Koryak, O., 2015. Entrepreneurial leadership, capabilities and firm growth.International Small Business Journal, 33(1), pp.89-105. Miao, Q., Eva, N. & Newman, A., 2017. CEO entrepreneurial leadership and performance outcomes of top management teams in entrepreneurial ventures: The mediating effects of psychological safety.Journal of Small Business Management. Nyberg, T., Dentchev, N. & Van Hoof, B., 2016. Embracing the variety of sustainable business models: social entrepreneurship, corporate intrapreneurship, creativity, innovation, and other approaches to sustainability challenges.Journal of Cleaner Production, p.1. Okpara, F.O., 2017. The value of creativity and innovation in entrepreneurship.Journal of Asia Entrepreneurship and sustainability, p.1. researchgate,2019. Revisiting_a_classic_case_study_Anita_Roddick_and_the_Body_Shop_Internationa. [Online]Availableat: https://www.researchgate.net/publication/242339079_Revisiting_a_classic_case_study_Anita _Roddick_and_the_Body_Shop_International/citation/download[Accessed 2009].
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