Summary The Body Shop started in 1976 by Anita Roddick, it is a great success and an icon to many business in the

world. They have over 2,400 stores worldwide, 2nd largest cosmetic franchise in the world. The Body Shop sells unique personal-care products that are naturally made and effective at the same time. In 2006, LOreal took over The Body Shop with an agreement up to $652.3million, now the duo holds up to 20-25% market share of the market for sale of all cosmetic. Anita Roddick stated that I just want the Body Shop to the best, most breathlessly exciting company and one that changes the way business is carried out. That is my vision. Rather than focusing only on profit, the Body Shop make sure they are socially responsible and ecologically sustainable. The Body Shop became popular because the products they developed are unique and has different functions. The products are composed of ingredients that come from different countries. For example, The Body Shop Honey Moisturizing Shampoo is a shampoo made out of honey, coconut acid, brazil nut oil, olive oil and etc. The shampoo serves to treat dry damaged and chemically-treated hair. An online review rated the product to be 5/5 and moisturizes very well without any side-effects. Key success of The Body Shop is how it operates in its own culture. Question 1 Describe the culture of The Body Shop. Introduction As known, Body shop is one of the famous international cosmetics brand. It is not just one's ordinary shop for body or hair care. It is extraordinary just as its pioneer. Body shop is an organisation that has strong beliefs in its culture. Body The term culture is the shared attitudes and behaviour that are features of a particular social group. In the same way within an organisation, societies build up on their own identity so people working within the organisations develop their own culture. The culture that The Body Shop has been practising over the past 35 years is Organisational Culture. Organisational culture, also known as corporate culture, is a system of shared beliefs and values that develops within an

organisation and guides the behaviour of its member. This strong culture organisation commit their members to do things that are in the best interests of the organisation and reinforce the good habits. In this case, the body shop has strong culture that concentrated on performance-oriented. Instead of maximising the profits like other companies would do, The Body Shop is more interested in giving the best product and service to the customer along with their main concept, concern for the environment. The founder of The Body Shop, Dame Roddick, once said, If I wanted to maximize my profits, which is supposed to be this country's duty of business, I would have to lie and sell anti-aging cream, which is one of the greatest, most insidious lies out there. I am not intending to do that even though it is one of the most profitable products in the beauty industry. If I wanted to maximize my profits I would take the two or three months that we do campaigning, which comes to about 3-4 million quid, and put it into keeping the shareholders happy. But I am not interested in maximizing the wealth of shareholders; I am interested in keeping my company breathlessly alive and socially active and yes, we get great dividends. Next, The Body Shop is also an organisation which has strong culture, believe in emphasising teamwork. One of the stuffs claimed that she is happy with her job because The Body Shop places an emphasis on teamwork so staff work happily as a team. Besides, allow for risk taking is also one of the cultures that The Body Shop has been practising. Opening a shop that satisfies the need of nurturing the body out of indigenous science refers to the risks that dame Roddick has taken. Last but not the least, The Body Shop does practice encourage innovation. For example during christmas last year, upon launching a new product, a strong christmas gift range and improving customer services, operating profits from division boosted to 17% to 11.7 million (Geart, 2005). Lastly, they also practice culture, value the well-being of people. The company encourages the employees to learn new skills. By funding a range of training courses, events and health treatments, the organisation aim to enhance staff's sense of wellbeing. On the other hand, organisational culture is usually described from the perspective of two levels which are observable culture and core culture. Observable culture is what one sees and hears when walking around an organisation while core culture is the core values that influence behaviour and give rise to observable culture. Visible aspects is what one observes from The Body Shop. Firstly,, the structure of the store and the colour theme. Throughtout the store, the

colour green is publicised and this represents the image of nature. Second, Body Shop uses natural ingredients in their products to enhance natural beauty. Also, as soon as you step into the shop, a fresh satisfying aroma can be noticed which again give the sense of natural feeling which portrays the body shop image. The staffs are very approachable and knowledgeable about their products. As for the hidden aspects, can be found in the five core values that The Body Shop strongly believes in. The Body Shop has always believed passionately that animals should not be used for cosmetic testing. They have never tested our products on animals. Similarly, they insist that all their suppliers have not tested their ingredients on animals for cosmetic purposes. Their policy and standards in this area were praised by the BUAV in 2008. In the same year The Body Shop won the RSPCA Good Business Award for a second time, for their commitment to animal welfare. The body shop also run campaigns to against animal testing and abuse like Stop violence in the Home. They managed to increase the number of markets who run the campaign to 50 and raised 7 million per year for NGOs working on this issue. In 1987, The Body Shop launched Community Trade. One of the first examples of fair trade, Body Shop realised Community Trade has numerous benefits for the company, customers and their suppliers. Through trading suppliers able to have a stable, long-term income while they can access some of nature's finest ingredients, which are grown and harvested by expert local farmers. Many of these ingredients are grown using time-honoured techniques, helping to preserve a traditional way of life. In the process, Community Trade allows the suppliers to build better futures for themselves and their communities. Besides, The Body Shop will only deal with the supplier who agree to sign the Code of Conduct which supports our Ethical Trade Programme, developed to improve conditions for all workers in the supply chain and to uphold their human rights. This code is strictly enforced and monitored to ensure standards are met regarding child labor, discrimination, and employee pay, hours and working conditions. Next, The Body Shop also concerns about activating self-esteem. The Body Shop believes that true beauty comes from confidence, vitality and inner wellbeing. They strive to use imagery that doesn't play on women's insecurities, and to bring the customers products that enhance the natural beauty and express their unique personality. The body shop creates highlevel ownership of and engagement in the campaign among all employees globally.

The Body Shop always remain dedicated to its mission to campaign for human and civil rights and environmental protection across the globe. Since 1993 they've been campaigning and raising awareness of the issues and taboos surrounding HIV and AIDS. In the last two years, they've helped raise $1.7m for the Staying Alive Foundation, a grassroots youth-awareness project which aims to educate at-risk communities on safe sex, HIV and living with AIDS. Other campaigns support the fight against human trafficking. Their current Stop The Trafficking of Children and Young People campaign is raising awareness and funds, and offers support for victims, or those at risk. Lastly, the body shop is very particular about this value, protect our planet. As a global business, the founder of The Body Shop strongly feel the need to be proactive in the battle against climate change. The body shop is constantly seeking new ways to improve their business practices and reduce our carbon footprint. In many of their stores, refits are rolling out that will improve the energy efficiency. New lighting, including store signs that have been successfully trialled, will help to reduce the energy use. They have also introduced energyawareness training for all the store staff and have also reduced our air travel. As long-term advocates for reducing waste, they are now introducing plastic bottles made from 100 per cent recycled material. The aim is to make all the PET (polyethylene terephthalate) bottles from this plastic - a staggering 30m bottles a year. Conclusion As we all know, Body Shop is an organization which strongly believes in their own cultures and their aim is to deliver the values and concerns on the environment through their products. The founder of the Body Shop, Anita Roddick once said, If we are going to tell people about global warming and what they should be doing, we should take the lead.

Question 2 What specific forces that created this culture? Whats maintains it? Introduction Body shops mission embodies social and environmental charter, which concerns about the protection of environmental issues as well as human and civil rights. Body Shop is open system which must relate to their environment in order to deliver the products or services that valued by customers. Therefore, it creates a force that causes to Body Shops culture. Organizational environments are everything beyond the boundaries of organizations that can directly or indirectly affect the performance and outcomes. It is basically being divided into two, general environment and specific environment. General environment influenced the organization based on the economic conditions, socio-cultural conditions, legal-political conditions, technological conditions as well as natural environment conditions. Specific environment or task environment affects an organization through the roles of customers, suppliers, competitors and regulators. The Body Shop is committed to social and environmental justice on a local and global level. This goes way beyond "corporate social responsibility". They strive to continually improve and live out their values every day. Body The Body Shops culture is affected by the external forces of socio-cultural conditions under general environment. It consists of customs, lifestyles, and values that characterize the society in which the firm operates. Socio-cultural components of the environment influence the ability of the firm to obtain resources, make its goods and services, and function within the society .Population demographics, rising educational levels, norms and values, and attitudes toward social responsibility are examples of socio-cultural variables. For example, one of The Body Shops employees Carmelia Safrone, has twice been involved in the companys Children on the Edge programme. She joins volunteers from the company, coming from 20 different countries, with the companys support. This shows that the Body Shop has a strong sense of social responsibility as well as respecting and encouraging their employees to pursue the work they passion since they support those employees who pursuing community work by allowing them come and go from the company when they need to. Moreover, the body shop focused on

both work and lifestyle. As we know, there are more and more women are working. Besides, workers are increasingly from non-traditional families such as single parents. As such, the body shops culture seems to be able to adapt to this diversifying socio-cultural environment. When the shop closes at 6pm, employees are basically free from their work as they are free from requests for overtime as well as out-of-hours phone calls or call-backs. These enable their employees to spend time with their families as well as taking care of their children. That is why the body shops employees are commitment and loyal to the company. The Body Shop maintains their culture by launching many campaigns continuously. For example, the latest campaign they launched is the campaign of preventing sex trafficking of children and young people. This is aimed to raise public awareness towards human trafficking and it has shown that The Body Shops efforts in maintaining their responsibility towards society. Besides, by working with Malaysian Aids Foundation and Womens Aid Organization, The Body Shop not only maintains but also maximizes its corporate social responsibility (CSR) on womens right and HIV/AIDS. Furthermore, The Body Shop has also launched a customer reward programme called Love Your Body, customers are rewarded by 10% off their purchase, free gifts and also birthday present. Thus, it has proved that The Body Shop do care about their customers, too. Moving on, the body shop is also affected by the natural environment conditions which aware of the threats and opportunities associated in the natural environment such as the shortage of raw material, increased cost of energy and the increased levels of pollution. As the raw ingredients come from the nature, it is important to take care about the natural environment. Besides, they foresees the importance of go green products since people nowadays are more likely to buy products that are made up naturally instead of chemically. As a global business, the Body Shop knows that they need to take initiative in the battle against climate change. They are constantly seeking new ways to improve their business practices as well as reducing the carbon footprint. Furthermore, they put many efforts on reducing the usage of energy too. For example, they changed their stores lighting system to improve the energy efficiency as well as help to reduce the energy used. They also introduced energy-awareness training for all their store staff and reduce their air travel since the reduction in usage of energy is indeed useful to minimize the production impacts on the environment.

The Body Shop not only maintains but also maximizes its corporate social responsibility (CSR) on its positive environmental practices. The body shop maintains this condition by continuously reduce and renew the energy used. . During 2002, the Body Shop runs a global campaign with Greenpeace International on promoting renewable energy. They are now switching to Ecotricity, providing them with energy from renewable sources. There are number of The Body Shop stores have now converted to green electricity. They further their commitment to environmental sustainability through investment in renewable energy, funding of energy efficiency projects in the developing world, and incorporating post-consumer recycled into their packaging. Furthermore, Body Shop is aware of the amount of rubbish it generates and has taken every effort to reduce the impact of waste on the environment. They maintain their purpose by carry out some activities which can educate and invite the public to play a part in conserving and protecting the mother earth. For example, they launched the bottle-recycled campaign which encourages their customers to return those cosmetics bottles that have been used to them so that it could be recycled. This largely reduces the usage of plastic bags which are non-recyclable and harmful to our environment. At the same time, The Body Shop also practices societal marketing concept, one of the marketing management philosophies that focus on finding the balance between satisfying demands, meeting human welfare and achieving organizational goals. Conclusion In a nutshell, sociocultural condition and natural environment condition are the two main forces that created the culture of Body Shop. In this case, sociocultural condition has concerned about resources and goods and services within the society. On the other hand, natural environment is taken into account as the raw ingredients come from the nature, it is important to take care about the natural environment. It can be seen that the Body Shop not only maintains but also maximizes its corporate social responsibility to society as well as its positive environmental practices.

Question 3 Describe the culture that the competitors of The Body Shop have. Introduction Each competitor has their own core values and cultures. These cultures and core values are what distinguish each company from another. The competitors that is chosen for The Body Shop is Loccitane and Kiehls. Body Loccitane stands for the women from Occitania. It was founded by Olivier Baussan in 1976. L'occitane was originally from France. There are 3 values Loccitane upholds which is respect which can be defined as the will to live in harmony with others in respect of their culture and their environment, with the support of long projects to allow the autonomy and the lasting of the programs. Next is authenticity. Loccitane supports true concrete projects expressed with simplicity and preserving the authenticity of the traditions, the knowledge to make the economic and social balance. Lastly is sensitivity by choosing to support projects taking into account nature and the environment. Loccitane is more socially responsible compare to Bodyshop. Loccitane supports the visually impaired people. They help one of the most underserved countries in the world for eye care which is West Africa since 2000, the community will soon benefit from ORBIS improving their eye care thanks to Loccitane funding. Furthermore, Loccitane creates a new product of daily planner 2011 for RM15 per book. They managed to raise RM 25,000 and it was donated to the Malaysian Association of the Blind to upgrade the computer and screen reader software facilities. Loccitane is also active in helping the economic emancipation of women in poor countries. The first partner is Faa I Tuora. The foundation contributes 50% of the purchase of bikes and help 136 women owns one. The next partnership is Aide et Action Association. Loccitane support and follow the literacy projects of 8 associations in Burkina Faso. This has help almost 400 women learn to read and write. On the environmental side, Loccitane did not participate as much environmental activities compare to Bodyshop. Loccitane has 4 main environment action. Firstly is the garden

of knowledge. This foundation supports are for researches, conservation, education. Secondly would be the Maison de la Biodiversit. The Foundation supports the implementation of a rural orchard network with the cultivators of the park in the Thomassine estate. The subsidy will enable to buy old fruit species. Thirdly is where the foundation in supporting the shared of gardens of Montaigne to develop the oil production from olive groves. Last but not least, the foundation team up with Musum national d'Histoire naturelle to create the website reference on plants. On prices, Loccitane is twice as pricey compare to Bodyshop. For example, a facial care product costs within RM 35-50 in Bodyshop whereas RM80-95 in Loccitane. Although the product in Loccitane is better than Bodyshop, their price range does not meet the requirements of average people which give Bodyshop more sales. However Bodyshop still have a certain standard. Last but not least, the workforce in Loccitane is tougher than Bodyshop. Loccitane set unrealistic high expectations, irrelevant and non-logical monthly sales target. They provide low product training which makes it harder for the employees to do sales. Due to the no commission for every sales goal, the workers dont drive to work achieve target. Whereas Bodyshop employees are friendly and they show teamwork spirit in assisting the customers. They have motivation to achieve monthly goals as theyre given commission. As one of the main competitors, Keihl started in 1851 in New York. Their main products are usually natural hair and skin care product subsidiaries of the French cosmetic giant LOreal. This particular company was built from scratch by three generations of the Morse family. The original store is located at the New York's Lower East Side neighborhood, which is the site of a 19th century old apothecary. The employees there make the store into a really unique store by having an assortment of photographs and pictures of various people as well as a collection of vintage motorcycles. Without spending much on marketing, they are able to attract quite a bit of attention, mostly from unsolicited testimonials by various celebrities and hairdressers. The rest one can say is history. Keihls began its policy in giving out large amount of samples was Aaron Morse idea. The idea was more of a reflection of him than a business policy since he is interested in making friends

than a sale. Aaron made it a point in the mission statement a worthwhile firm must have a purpose for its existence. Not only the everyday work-a-day purpose to just earn a profit, but beyond that, to improve in some way the quality of the community to which it is committed. Each firmas should each personcontributes to those around it; and by dint of its day-to-day efforts, the message it thereby imparts is a revelation of the quality standard at which its lifes work is conducted. Kiehlsproducts are all made from biodegradable materials, such as carbon and oxygen. This is to help minimize the amount of the global carbon footprint as the products are biodegradable, they would decompose in to the two basic forms of elements and return to earth itself. These products are thoroughly investigated and research to prevent any harmful effects to affect any person who uses it. It is also guaranteed that the formulas will biodegrades back into the earth within 28 days. Kiehls also began having a foundation to help those people in need. One such foundation would be the AIDS foundation. They started off by partnering with Magic Johnson on the creation of Magics Elixir, a body cleanser, which all profits are sent to Magic and Cookie Johnson AIDS foundation. From then on, Kiehls has been actively participating in all other forms of AIDS research and development. However, there is one thing that is lacking from Kiehls. That is the sense of community that The Body Shop has. Each employee in The Body Shop often works overtime even when the shop has closed. Kiehls employees however only work till the shop closes. This means that Kiehls workers only pursue charitable events when required. Conclusion In conclusion, both competitors are able to distinguish themselves against The Body shops culture. However, The Body Shop still reign ahead of all the other competitors is due to the relentless approach to provide help to the needy and the dedication of the employees that are able to make The Body Shop the major choice for skin care products.

Question 4 Do you think The Body Shop will succeed or fail in the future with this culture? Why? Introduction The Body Shop will be success in the future, because the core values and marketing concept of The Body Shop is different with other organizations. In The Body Shop, it has realized that a more complete, cohesive approach that goes beyond traditional applications of the marketing concept is keys to succeed. On the other hand, ethics can be defined as the code of moral principles that sets standard of good or bad, or right or wrong in a persons conduct. Ethical behaviour is that which is accepted as good or right as opposed to bad or wrong. Simply because an action is not illegal does not necessarily make it ethical in a given situation. There are four views of ethical behaviour which are utilitarian view, individualism view, moralrights view and justice view.

Body This approach using by The Body Shop is Societal Marketing Concept, which determine the needs, wants and interests of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumers and the societys well-being. In the Societal Marketing Concept, The Body Shop core values are Oppose Animal Testing, Protect Our Planet, Support Community Service, Active Self Esteem and Defend Human Rights. With the adopting and practicing a form of the Societal Marketing Concept, The Body Shop will achieve notable sales and profit gains, moreover, it also as an opportunity to raise brand awareness, enhance the company repxutation, increase customer loyalty, and increase press coverage. First of all, with the core value, Oppose Animal Testing, we can see that The Body Shop has practicing oppose animal testing for both cosmetic products and ingredients by development of alternative testing methods. Following by is Protect Our Planet, in this core value, The Body Shop is a larger consumer of plants and florets, but at the same time, it is a protector. All the products of The Body Shop are advocated the use of recyclable source, recyclable materials and naturally ingredients. With these two core values, it can reduce the damage of waste to our planet,

reduce pollution, and the increase of profit because The Body Shop manufactured products naturally, and which are no harm to human being. Second are Support Community Service and Activate Self-esteem. The Body Shop had done many of charity campaign, program, event and promotion to raise fund and resources to help communities in need. Moreover, it organized the first campaign against domestic violence for women, because it never neglected protecting womens rights, its main customers and employees in The Body Shop. In other words, with the community service and activate selfesteem by The Body Shop, it not only increase its sales, but also raise brand awareness, enhance the company reputation, and increase press coverage. Lastly is Defend Human Right. As the employee of The Body Shop, they can have a balance life style by no call back, overtime, and out-of-hours phone call after work, is their own life begin. This is one of the reasons why the turnover rate of The Body Shop is low. The Body Shop with the low turnover rate, it can incur less cost to hire recruit and use the budget for employees training program, which could improve the skills of employees and help the company earning more profit. On the other hand, moral-rights view considers ethical behaviour as that which respects and protects the fundamental rights of people. This concept extends to ensuring that employees are always protected in their rights to privacy, due process, free speech, free consent, health and safety, and freedom of conscience. For the right of health and safety, the Body Shop values its employees. It stresses a balance between lifestyle and work. When the shop closes at 6pm, employees are free from requests for overtime and out-of-hours phone calls or call-backs. Employees are having minimum work pressure. The Body Shop also protects their employees in their rights to freedom of conscience. Employees are encouraged to pursue their own issues and interests with the same passion in the company shows in pursuing its social and environmental issues. When there is an overlap, the company will support their choice. Justice view considers ethical behaviour as that which treats people impartially and fairly according to guiding rules and standard. This approach evaluates the ethical aspects of any decision on the basis of whether it is equitable for everyone affected. Three justice issues are

procedural justice, distributive justice and interactional justice. Procedural justice is the degree to which policies and rules are fairly administered. According to the policy of donation of the Body Shop, the company set out their commitments and the actions they will take to further these commitments. Charitable contributions in cash or kind must always support the aims of these principles, and no donations can be made to organizations or causes which conflict with these aims. In addition, donations made direct to charities and causes by individual markets and donations in kind are not always publicly reported, but are monitored internally to ensure compliance with this policy. Distributive justice is the degree to which others are treated the same regardless of individual characteristics. As a global business, the Body Shop respect local, cultural and political differences. Volunteers from the company have been involved in the Companys Children on the Edge programme. They travelled to Romania to help socialize and uplift groups of abandoned children in the former communist country. Interactional justice is the degree to which others are treated with dignity and respect. The companys mission statement embodies its social and environmental charter, stating clearly that it aims to campaign passionately for the protection of environmental issues as well as human and civil rights. The company always insists that the business activities adhere to basic human rights. Conclusion The Body Shop will succeed in the future with this culture because of the core values, marketing concept, ethical behaviour and social responsibility. The company is clear about its aim to develop sustained care for the community. It hopes to awaken in its employees, and the community at large, the spirit of contribution and commitments to others and the environment. The Body Shop ensured their business activities will always contribute to the wellbeing and aspirations of their current stakeholders without compromising the needs of future generations. The company applied the best practice throughout the business activities and take on a leadership role in areas where they can make a difference and set an example to the industry. The Body Shop is committed to being an environmentally responsible retailer. The Body Shop will achieve notable sales and profit gains, moreover, it also as an opportunity to raise brand awareness, enhance the company reputation, increase customer loyalty, and increase press coverage.

Conclusion In a nut shell, the body shop has a great culture that would lead them to be more successful in the future. The Body Shop maintained their culture really well, at the same time they are also different from other competitors in a good way. These are key points that would make The Body Shop succeed in the future with its own culture.