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Organizational Behavior : Part I The Macro
Side
Professor Jim Lincoln
Week 6: Discussion
The Body Shop International
p.1
The Body Shop
Agenda:
1. Project Teams 9 and 10 will each make 15 minute
presentations on the case
2. The class will critique the presentations by Teams 5 and 6 and
complete the analysis
p.2
Session objectives
• Understand the role of strong core values in shaping the strategy,
organization, and performance of an international retail business
• Examine Anita Roddick’s leadership qualities and style and what made her
effective
– Was she a “developmental” or “heroic” leader?
• Analyze Roddick’s active management of The Body Shop’s culture and
examine her goals in doing so
• Consider the extent to which strong culture in creating a distinctive Body
Shop brand and in marketing that brand.
• Discuss the degree to which business organizations can and should be
major agents of social change
• Consider the idea the idea that the active participation in business by
people who are hostile to mainstream business practices and culture can be
a source of creativity and innovation in business
Source: Appex teaching note
p.3
What was Anita Roddick like? What
motivated her?
– Do her style and personality provide any clues about the
sincerity of her idealism?
– What were her strengths and weaknesses as a leader?
• Was there ever more to The Body Shop’s culture than her
and Gordon’s personal idealism and energetic pursuit of it?
p.4
When is it good business strategy to set yourself up
as an alternative to or the antithesis of the dominant
business model in an industry?
• Did the Roddicks’ general naivete about and distaste for
the cosmetics industry and business in general prove to be
a business advantage?
p.5
• Dissect the culture of The Body Shop
– How would you do a “culture audit” of it?
– Would a full understand of TBS’ culture require more
information than what’s in the case? If so, what?
p.6
• How did the Roddicks’ infuse their products, their
shops, and the shopping experience with TBS’
corporate culture
p.7
What kind of leader was Anita Roddick?
• Salty, charismatic, colorful, gutsy, pushy, indefatigable
• Loved to travel
• High energy
p.8
What kind of relationship did TBS build
with its customers?
• To what degree they share TBS’s culture?
• Did Anita deliberately manage the socialization of
customers in TBS’s culture
– Customer participation (suggestion boxes)
• Marketing strategy
– Treat customers as intelligent
– Educate them
– Stores as marketing
p.9
p.10
How did the business of The Body Shop
benefit from its strong progressive values
and activist agenda?
• Differentiate the product
• Standardize the retail experience
• No conventional marketing but aggressive pursuit of
publicity
– Ben and Jerry’s in the news
– Apple always in the news
– Also Sony and Honda
p.11
How was The Body Shop organized and
managed?
• How difficult is it to maintain a strong culture in a global
franchise operation?
– Head franchisee in each major market
– Regular visits by regional managers
– Anita bombarded shops with information
• Criticism of cosmetics industry to make them feel special
p.12
How did Anita work to assure that her
employees and her franchisers would share
TBS’s values and were generally good fits
to its culture?
• Franchisee as women without business experience
• Women-- concerned with social values. Gender gap in politics. Less
inclined to accept the notion that business is just about making money
• She constantly managing culture
– Reinforce sense of being different
– Think frivolously and break rules (except TBS’s
rules)
– Forced people to stand in meetings
• Was she an autocrat
p.13
How did Anita work to assure that her
employees and her franchisers would share
TBS’s values and were generally good fits
to its culture?
• Franchisee as women without business experience
• Women-- concerned with social values. Gender gap in politics. Less
inclined to accept the notion that business is just about making money
• She constantly managing culture
– Reinforce sense of being different
– Think frivolously and break rules (except TBS’s
rules)
– Forced people to stand in meetings
• How did she fit people into the culture
– Socialization-- day care and training
– Motivation
– Selection
p.14
d
• What was the significance of TBS going public for
its culture?
– Constrained by analysts’ expectations?
– Some private companies-- Levi’s keep strong
culture
– Historic watershed-- be force for social change,
protect environment (use new capitalization)
– Were all her cultural activities successful in raising
the bottom line?
p.15
What was the significance of TBS
going public for its culture?
• Constrained by analysts’ expectations?
• Some private companies-- Levi’s keep strong
culture
• Historic watershed-- be force for social change,
protect environment (use new capitalization)
• Were all her cultural activities successful in
raising the bottom line?
p.16
Was strong culture a “good fit” (in a
congruence sense) to The Body Shop’s
global organization and strategy?
• Did it help to standardize the shop climate and coordinate
across shops and regions?
• Advantage of franchise model-- enabled her to focus on
visions
• No obsession with �beauty’ in the conventional cosmetics
sense
p.17
How did The Body Shop do in the U. S.
market?
• Was there something distinctively “European” about its
culture that complicated the transfer to the U. S.?
p.18
p.19
• 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. You can educate people by their passions,
especially young people You have to find ways to grab
their imagination. You want them to feel that they are
doing something important.. I’d never get that kind of
motivation if we were just selling shampoo and body
lotion.
p.20
p.21
What was the significance of TBS
going public for its culture?
• Constrained by analysts’ expectations?
• Some private companies-- Levi’s keep strong
culture
• Historic watershed-- be force for social change,
protect environment (use new capitalization)
• Were all her cultural activities successful in
raising the bottom line?
p.22
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