The body shop international is a global producer and retailer of naturally inspired, ethically produced beauty and cosmetics products. Dame Anita Roddick exposed the very first the body shop® store in 1976 in Brighton, on the south coast of England.
In the modern 1990s, The Body Shop International PLC, ran aground. Although the firm had an annual tax revenue growth rate of 20% in the early to warmheartedness 1990s, by the late 1990s, revenue growth slowed to around 8%.
PROBLEMS
1. New retailers of the naturally based skin-and hair-care products entered the market, bringing intense rival for The Body Shop.
2. The Body Shop failed to maintain its brand prototype by becoming something of a mass-market line as it expand into almost every mall in America, as thoroughly as virtually every corner on Britains shopping streets.
3. After Anna Roddick stepped down as chief decision maker officer (chief operating officer) in 1998, Patrick Gournay came on board as CEO by which problems persisted despite the management change which was during the fiscal twelvemonth in 2001, the revenue grew 13% but the pretax profit declined 21%.
OBJECTIVES
Patrick Gournay implemented new strategy to improve results which are :
1. To enhance The Body Shop Brand through a think product strategy and increased investment in stores.
2.
To get operational efficiencies in the supply chain by decrease product and inventory costs.
3. To reinforce the stakeholder culture.
TYPES OF FINANCIAL FORECASTING
1. T-Account fortune telling : use to estimate shareholders equity and fixed assets.
2. Percentage-of-Sales Forecasting : 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.
ANALYSIS
Question 1
How did you derive your prognosis? Why...If you want to get a full essay, order it on our website: Ordercustompaper.com
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