Table of Contents

Task 1. 3

Charter. 3

Vision and mission statement. 3

Vision. 3

Mission. 3

Task 2. 4

Who is stakeholder?. 4

Types of Stakeholder – Internal and External Stakeholders. 4

Stakeholders’ expectations. 6

Explain Mendolows matrix of stakeholder mapping by using appropriate diagram and discuss the power and interest matrix of different categories. 6

Task 3. 8

What is competitive advantage?. 8

What are the sources of Competitive Advantage?. 9

Cost advantages. 9

Differentiate Advantage. 9

Explain the Porter’s Generic Strategies and its advantages. 9

References

Charter: The Body shop trading charter is , aim is to obtained the commercial success through the customers meeting and it is also requires by the provision of the high quality , good value products by the exceptional services as well as also have the relevant information that is enables to the customer which is also create and informed the responsible choices. The trading relationship which is the type by customer, suppliers, franchises and it would also viable and mutually beneficial of trust and respect.

Vision and mission statement of Foundation to Business Strategy         

Vision: The Body shop vision statement is “the predominant focus which is being world class retailer, offering the customer prestige product at the value prices by the excellent customer services.

Mission: Body Shop also face criticism from the different organization to get those high quality beans that grown and market with special conditions and the economic recessions also affect the sales and revenue of the company. The mission statement of the Body Shop also explain its environmental needs as in all facets of our business, the Body Shop is committed to a role of environmental leadership. Company also follows the principles of environmental effects are measuring and monitor the progress and encourage all partners to share the mission of the company, as a corporate value instilling environmental responsibilities, recognizing the fiscal responsibilities, focus on selling, use and buy the environmental friendly products, sharing all information with partners, develop flexible and innovative solution and clearly understand the environmental issues.   To increase more profit and serve more customers in few minutes’ company is going to replace the labor operated machine with automatic machine and by using new and latest technology the more customers going to attract towards the organization.   

Task 2

Using  a relevant academic literature elaborate on the types and expectations stakeholder and critically evaluate the Body Shop’s Stakeholders auditing and position using Mendelow (Power x Interest) Matrix of stakeholder’s mapping.

Who is stakeholder?

The Body Shop Stakeholders are;

·         Employees

·         Franchisees

·         Customer

·         Shareholders

·         Supplier (Studies, 2019)

Types of Stakeholder – Internal and External Stakeholders

The types of the stakeholder in the Body shop is External stakeholder

Body Shop stakeholders are the legal owners because it’s the Public Limited Company. People and foundations purchase shares so as to make an arrival on their venture. While that stakeholder may perceive a significance of social as well as ecological issues, an offer value stays significant share price is falling can clear a huge number of pounds off an estimation of a Body Shop. A Body Shop is focused on their statement of purpose as it was thirty years prior. As referenced before, the Body Shop means to shape a world in a positive manner by their business as well as wore to balance out a requests, (for example, money related requirements) of a Body Shop stakeholders without modifying a business’ standards. A Body Shop, by extraordinary pride as well as energy, continually bolsters crusades along with  causes identifying by saving our planet, supporting social liberties as well as forestalling creature testing along with the passionately add to a minimized pieces of a world through network exchange, in this manner verifying that genuineness as well as reasonableness is illustrated. Being purchased over by L'Oreal, numerous stakeholders feel that a Body Shop isn't recognizing its qualities as well as morals.

This is on the grounds that L'Oreal is known to test their items on creatures. Consequently, these partners may lose trust in A Body Shop as well as give negative analysis about an organization, influencing their business along with the picture. A Body Shop doesn't possess. On the off chance that there is an absence of authentic accreditations, it is more diligently for stakeholders and purchasers to confide in an organization without lawful authority confirmation. By their official sites, there are likewise no certificated logos of guidelines it has equipped for. Thus it is more enthusiastically for partners as well as any individual who needs legitimate proof of its quality assistance and need to peruse stakeholders numerous official discharges to be refreshed with their norms (Shaafiu.files, 2019).

Stakeholders’ expectations: In the global market, Body shop is known as the oldest product company and modifies them into lasting brands, differentiated and value laden. Manu product of the Body shop is going to become different from others because of low cost that offers a sustainable competitive advantage and source of potential. To overcome external environment changes, the low cost of producing the imitable differentiated products make the Body shop famous in the international market. The company has to use proper implementation strategies to enter in the international market because already many strong competitors present in the market and people are very much interested in the existing brands so company has to follow the strategy related to marketing mix strategy to move at global level. These strategies include following points like client satisfaction, brand marketing, perfect and innovative coffee cup, third place, smart partnership and the creation of Body shop communities. Body shop gives more attention on the global business expansion mission and proper planning and study must be done before starting the business (Sillanpää, 1998).

Explain Mendolows matrix of stakeholder mapping by using appropriate diagram and discuss the power and interest matrix of different categories.

In the below figure Mendolows matrix of stakeholder mapping by using appropriate diagram and power and interest matrix of different categories;

A first step is to outline into the stakeholder interest matrix. Some of have highest power and highest influence where relationship to focused on.

•           Category A: Low interest; low power: Keep in contact by this quadrant now as well as again yet don't go squandering an excess of vitality on them.

•           Category B: low Power High interest: These folks can turn into an interruption. Keep them educated yet don't demonstrate a lot of consideration regarding them or, in all likelihood chance their turning into a squandered exertion that is probably not going to hold up under much by method of results.

•           Category C: Low interest High power: The thought is to keep these stakeholder fulfilled however don't bother them to an extreme. Their low interest levels imply that they could immediately get exhausted with you or your business.

•           Category D: High interest High power: These stakeholders merit a most consideration. Your point is to keep these folks completely connected with your business achievement relies upon them (Startuptuition.com, 2019) 

Task 3

Elaborate on the porter’s generic strategies using academic literature and choose the suitable strategy for the Body Shop to gain sustainable competitive advantage. Justify your answer.   

What is competitive advantage?

However, in order to maintain a current rate of the expansion in the market to diversify the strategies which are stay to gain the competitive advantage in the market to innovate the grocery market in UK and Europe. Body Shop has continued to diversify its business in order to gain competitive advantages from its inception, which is originally created to provide high end coffee products. In a global market, Body Shop is known as the oldest product company and modifies them into lasting brands, differentiated, and value has laden. Many products of the Body Shop are going to become different from others because of low cost that offers a sustainable competitive advantage and source of potential ( Liao, 2013).

There are many competitive rivalries present in the same product market of Body Shop  but the main thing is that it has maintain its taste and its way of present the product so its customers also get satisfaction with the services and product quality of the company. In the competitive environment there are many threats face by the company but with them also many opportunities face by the organization to improve its performance and its revenue growth. Its opportunities and threats are defined with the help of SWOT analysis. When the firm is going to start multiple businesses within its boundaries then it is going to implement the diversification strategy. Body Shop has continued to diversify their business in order to gain competitive advantages from its inception, which is originally created to provide high end cosmetic and skin care product (tsolerka, 2008).

What are the sources of Competitive Advantage?

In this section discuss the potential operation competitive advantage of the “Body Shop Company; whereas the competitive advantages will be further divided as;

Cost advantages of Foundation to Business Strategy

·         Production cost is low

·         The huge expenditure on raw material

·         Online manufacturing process

Differentiate Advantage of Foundation to Business Strategy

·         With fuel efficiency production of smarts cars

·         Centralized decisions making

·         Increased market share ; (Bhasin, 2019)

Explain the Porter’s Generic Strategies and its advantages

To maintain the position in the new market, Body shop Company applied the different market strategies for some current products. There are the following strategies which are discussing in detail;

·         Differentiation

·         Cost Leadership

·         Focus (Edexcel, 2019)

There are three general types of strategies given by the porter that are very much helpful in obtaining in competitive advantages of the company. The sustainable competitive advantages include focus, differentiation and cost leadership. The strategy of differentiation describes as the product quality and services that are going to deliver must be unique and valuable for the customers. To gain a sustainable competitive advantage the product differentiation is the basic strategy of Body Shop. The focus is also very important in this regard because company main focus the actual requirement of the customer because when they are going to deal with their requirement then they have to obtain the trust of the customers. The cost leadership of the organization is also very important because there are many factors determine by the organization to handle the cost effectiveness of the organization.

Company is also used that same generic strategy that issue by the porter because there are following the same strategies for their product development and success of business. The three generic principles support the working of the organization and also enhance its credibility. Through excellent customer experience and quality cosmetic the body shop offers such differentiation. With its trained staff and the location and view of stores is design very well so the experience of Body shop is achieved. A compare to independent perfume houses the Body shop stores provide a more welcoming décor with friendlier baristas.

The basic outline for the general strategies of the porter’s model is product differentiation, cost leadership, and cost focus which could be gain through 7P’s analysis and throughout it is adopted by the Body Shop which are perusing by a strategies of selling a product in different environment of a market taking in view the competitors analysis with new as well as existing competitors along with the bargaining of supplier and buyers.