Assignment on Critically evaluate the charter, vision, and mission statement of the Body Shop Company using academic literature on well-crated vision and mission statements.

Ans. the mission statement of the Body Shop explains its purposes and scope of work. The company’s mission is to explore new ways for social and environmental change. It maintains the sustainability of the business by managing the need of all the stakeholders belong to the company and they're managing their financial needs. The company's mission is to promote the code of conduct through respect, fairness, honesty, and care through its activities and products. So the company wants to explore new ways of business through developing a strong relationship with the environment and its customers and manage them according to their specifications and needs.

The vision of the company explains that company main target to provide its all customers that best product according to their requirement and with the best quality they provide excellent customer care service that ensure that company is loyal and caring about its customers and take care of them from all the dimensions.  

Company mission and vision are belonging to the trading between the company and customers and their relationship. The company also wants to keep the environment free from any kind of harmful effects and manage all the issues without creating many major problems. The company wants to provide maximum satisfaction to all those who are connected to the company. The core value of the company is to take care of the rights of every person and also the environment-friendly activities that never affect the environment adversely. The company gives more focus on the profitability of the company and this company considers all the elements that can affect the profit and reputation of the company in the market. The performance of the company is improving its operations and its business is going to expand all over the world. Its products are considering the best product because it offers high quality with the best ingredients related to cosmetics.

Company mission and vision explain at its every activity and it enhances the support of the company through its stakeholders and all the people who are part of the company. The company focus on developing long term relationship with its customers and society due to take special care of them according to their needs and requirements and provide the best services that develop their links more strong and reliable. The company focuses on such activities that protect the environment, humans, and its products. So the profitability of the company rapidly increases due to its effective business techniques and manages them according to changing requirements.

Task 2:

Using relevant academic literature elaborate on the types and expectations stakeholders and critically evaluate the body shop’s stakeholders auditing  and position using Mendelow Matrix of stakeholder’s mapping

Stakeholders:

 stakeholders are the major part of the company because stakeholders include any individual or group that sow its interest in the decision or activity of the company. All those who affect the operations, activities, and decisions of the organization, all included in the stakeholder’s list. A company includes lots of stakeholders that are suppliers, internal staff, members, customers, regulators, and local and regional communities. It is very important to analyze the stakeholders to better understand their role and responsibilities and also manage their interests. The stakeholders who are responsible for every activity of the business have to understand the business and its core operations and manage them in their best way to generate maximum profit and make the strong position of the business in the market. (Landau, 2017)

Type of stakeholders: The stakeholders are the major part of the organization but it includes lots of stakeholders in which some belong to internal affairs of the organization and some are related to external affairs. So according to this criterion, the type of stakeholders includes employees, customers, suppliers, shareholders, communities, and governments. Customers are the major part of every company as the purpose of business to serve its products for the customers. Product quality and its value depend on the customers and their requirements. Employees are directly responsible for all the actions of the company and they earn their income and get many benefits against their services and efforts from the company. Inventors are the financial portion of the company that invests their money in the business to earn income in return. Suppliers and vendors are performing their part of the products and services distribution and generate revenue for the company. Communities have impacted the business according to health, safety, and economic development point of view. The government is the regulation parties that issue rules and regulations for performing business operations. (Corporate Finance Institute, 2019)

Stakeholders’ expectations:

Stakeholders are the major portion of the company so they have some expectations and requirements according to their performance and role. The company has to manage the stakeholders and their requirements according to their concerns by meeting their goals, resolving conflict situations, addressing issues, and manage their needs according to changing requirements. Managers of the company are responsible for meeting the expectation of the stakeholders. When the stakeholders’ expectations are managed actively than the chances for the success of business increase. Management considers the efforts to maintain the project and expectations according to desirable outcomes. Stakeholders engage with all the activities of the company and get awareness about the current status of the performance of the company. stakehlders provide maximum support to all the levels of the organization and all the operations perform according to expectation.  Management of the organization also manages the concerns and get assess the risk and threats related to stakeholders and manage all the conflicts and issues most effectively.

Stakeholders of the company want to earn income and profit from every dimension so they want to make smooth activities and make the operation of the company more active and run most effectively. Different stakeholders have different expectations or return from the company and for meeting their expectation level they put their complete efforts to make the company more successful and profitable according to changing requirements. The basic target of the stakeholders to run all the activities and operations of the business to move in the path of success and generate income without any disturbance. (My Management Guide, 2019)

Mendelow Matrix of stakeholders:

According to the body shop, stakeholders are a very major and important part of the business. for making the business more successful, it is very important to manage the stakeholders effectively. It is also important to determine the resources, time, and money inefficient way to check the performance of the business. There is a Matrix, named Mendelow’s Matrix that helps to analyze the performance of stakeholders and their interests.

According to this matrix, the stakeholders can be analyzed according to interest (in the success of the business) and power( the ability to affect the resource or strategy of the business). There are some misconceptions that all the stakeholders have the same interest but this is not true. Some stakeholders have more power and less interest but some stakeholders have less power and more interest in the business and its success.

The grip map of the stakeholders is based on the power and interest of the stakeholders that identify for the stakeholders how much they put their interest and power to manage the success of the business. Those stakeholders who invest a lot of time and resources having high interest and power in the organization. In terms of time and money, stakeholders have lower power and low interest has less monitor and efforts in the business. Remaining quadrants prominent those stakeholders that need proper satisfaction having low interest and high power and some stakeholders need more information that has less power and high interest.

On the grid, the different situations of the stakeholders explain different actions in the company. Those stakeholders who have high power and highly interested people have to manage closely with the company. They making great efforts to satisfy and engage fully with the management of the company. Stakeholders how have high power and less interest keep satisfied with the organization. In this category, management has more effort to satisfy such stakeholders because of their high influence. Stakeholders who have highly interested and low power have to keep informed with the company. For these stakeholders, more information provided to those stakeholders and discusses with them all the major issues. they also point out all the areas that need more attention and can be improved. Stakeholders that have lower power and also less interest must be monitor by the management of the company. Such stakeholders have less communication with the management of the company.

In the body shop company, different stakeholders can fall into different quadrants according to their power and interest. They can move from one quadrant to another according to their changing interest and power and having different control levels on the management of the company. (Blog, 2020)

The company has to manage all stakeholders according to their interests and power and consider their roles and responsibilities in the management of the company. The company has different operations and activities that need to manage according to its mission and vision. Matrix helps the stakeholders to manage their actions according to interest and power inmost effective way

Task 3:

Elaborate on the porter’s generic strategies using academic literature and choose a suitable strategy for the body shop to gain sustainable competitive advantages.

Competitive advantages:

Competitive advantages are the beneficial aspect of the company that makes it's prominent as compare to other competitors. Body Shop Company obtains a competitive advantage because of its product quality and its ingredients and develops a strong and long term relationship with its all customers. For taking the competitive advantages the company has to consider three basic elements for the successful business. Benefits, target market, and competition. Benefits mean that the company has to estimate how much it wants to earn and how it get benefits from its product from the market and its customers. The target market means that the company has to consider what is targeted by the company with its product and how to capture maximum customers from the specific market according to their requirements. And manage all the competition environment according to the demand of the market. Many other companies also offer the same product type but the main thing is that what makes the company different from others and how they manage their productivity according to current market demand and compete with its competitors. (AMADEO, 2019)

Source of competitive advantages:

Competitive advantage is the resource or ability that allows one company to compete with others in the same product range. There are six sources that the company utilizes to get a maximum competitive advantage from its competitors that include people, organizational culture and structure, process and practices, product and intellectual property, capital and natural resources, and technology. This all-source may not utilize by the company to get the maximum competitive advantage but some source is the key area of the company that makes it more prominent and high light as compare to other companies. The company makes its strong position in the market due to its competitive advantage get the maximum attention of customers. The body shop company's major competitive advantage is its product and its strategies that make it different from others. (Anna Mar, 2013)

Porter’s Generic strategies and its advantages:

Body Shop Company obtains lots of competitive advantages due to its effective strategies and it also follows Porter’s generic strategies related to its main features and productivity. These generic strategies help to explain the direction of the company according to different directions. The body shop company uses on the strategy that explains the working direction of the company and manages all the operations according to these strategies.

Four strategies of the Porter include; cost leadership, differentiation, cost focus, and differentiation focus. Cost leadership means the company focuses on managing the cost most effectively and tries to get maximum market share beneficially. Differentiation means the product or services have different features and unique abilities as compare to others and having a unique product with attractive features. Cost focus means that the company gives more attention to its costs and manages its prices at the lower possible level. It manages the prices according to customers' level and provides the best product at most reasonable prices. Differentiation focus means the competition is less in the market and due to different features of the product, the company can manage its position as a strong brand and also stay in the competition. (Tools Hero, 2019)

Reference of Critically evaluate the charter, vision, and mission statement of the Body Shop Company using academic literature on well-crated vision and mission statements.:

AMADEO, K. (2019, December 14). What Is Competitive Advantage? Three Strategies That       Work. Retrieved from https://www.thebalance.com/what-is-competitive-advantage-3-      strategies-that-work-3305828

Anna Mar. (2013, April 29). 6 Sources of Competitive Advantage. Retrieved from             https://business.simplicable.com/business/new/6-sources-of-competitive-advantage

Blog. (2020). What Is Mendelow’s Matrix And How Is It Useful. Retrieved from                                        https://blog.oxfordcollegeofmarketing.com/2018/04/23/what-is-mendelows-matrix-and-    how-is-it-useful/

Corporate Finance Institute. (2019). What is a Stakeholder? Retrieved from             https://corporatefinanceinstitute.com/resources/knowledge/finance/stakeholder/

Landau, P. (2017, June 13 ). What is a Stakeholder? Retrieved from                                                           https://www.projectmanager.com/blog/what-is-a-stakeholder

My Management Guide. (2019). MANAGING STAKEHOLDER EXPECTATIONS. Retrieved                  from https://mymanagementguide.com/guidelines/project-management/communications-            management/managing-stakeholder-expectations/

Tools Hero. (2019). Porter’s Generic Strategies. Retrieved from             https://www.toolshero.com/strategy/porters-generic-strategies/