Assignment Scam: An Investigation into The Body Shop HR and Financial Strategies


Assignment Scam: An Investigation into The Body Shop HR and Financial Strategies :Financial resources and human resource management are the two pillars of organizational success. Human resource management ensures a skilled and motivated workforce, while financial resource management improves resource allocation and financial performance. Effective management of both sectors leads to productivity, profitability, and long-term sustainability (Ragupathi, D, 2013). Understand the value of managing human resources and financial resources in an organization to become such a large company body shop. This report includes the human resources of the company Body Shop as well as the pressure resource strategies that help them to achieve great success in the market. Also, it includes a SWOT analysis based on the comparison of human resources and financial management in the organization which helps to find out the strengths and weaknesses of both the departments in the company.


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Company background

The Body Shop, a popular British cosmetics and skincare company, was started in 1976 by environmental and social activist Anita Roddick. Known for its commitment to ethical and environmentally sustainable practices, The Body Shop quickly gained popularity for its cruelty-free and natural beauty products. The company operates in the retail sector, focusing on skincare, body care, and fragrance products. Over the years, The Body Shop has expanded its reach globally with many stores in different countries. The company had approximately 3,000 stores in more than 70 countries, employing thousands of people worldwide. One of the key aspects that sets The Body Shop apart is its dedication to social and environmental responsibility. The company has been a leader in promoting fair trade, using sustainably sourced ingredients, and advocating against animal testing in the beauty industry. The Body Shop has actively participated in community trade, sourcing ingredients from marginalized communities to economically empower them. Additionally, the brand has consistently expressed its stance on various social and environmental issues by aligning its business practices with its values. The Body Shop’s commitment to ethical business is reflected in its campaigns and initiatives, such as the “Always Against Animal Testing” campaign, which aimed to ban animal testing in cosmetics globally. Additionally, the company has taken steps to reduce its environmental impact by promoting renewable packaging and reducing its carbon footprint (Pless, N. M, 2007). The Body Shop’s leadership in ethical business extends beyond its products. It reflects a holistic approach to corporate social responsibility that includes supply chain transparency, fair labor practices, and advocacy for social justice. The Body Shop has not only built a successful global brand but also inspired other companies to adopt more sustainable and ethical business practices, making a lasting impact on the beauty industry and beyond (Rippin, A, 2013).

Key Facts about the Body Shop

  • Founded in 1976 by Anita Roddick
  • Over 3,000 stores in over 60 countries
  • Employs over 20,000 people
  • The Community Trade program sources ingredients from over 30 communities around the world
  • All products are vegetarian and over 60% are vegan
  • Committed to animal welfare and environmental protection

Human resource strategy of Body shop

Human resource strategy helps an organization to grow their human resource and manage them in proper manner. It contains various steps which ensure that human resource in the organization is properly managed. All these steps are given below:

Recruitment Strategy

Recruitment strategies refer to the formal plan of action of an organization which involves steps like identification of recruitment and higher of high-quality candidates in the organization with the purpose of filling vacant positions. There are several strategies that are used by the body shop company to recruit high-quality candidates such as creating compelling job descriptions, making use of sponsored jobs, checking of resumes is which are posted online, and many more. All these steps help the company to attract the most talented candidates for the company so that they can develop them for the betterment of the company. The talented employees who are recruited for the company will help the company to provide excellent product and services to their customers which will help the company to grow their business (Hartman, C. L., & Beck-Dudley, C. L, 1999). It is previously well known to everyone that talented employees can change the complete scenario and these human resources work as a backbone of the company. In order to grow their business in the market it is essential for the Body Shop International Company to use various recruitment strategies which will further help them to get more talent for the company (Fauziah, P., & Mulyana, M, 2018).

Training and development strategy

Training and development strategies refer to those strategies of the organization that are involved in educational activities in the company to enhance the knowledge and skills of employees regarding effective and better performance for a specific task. After recruiting an employee in the organization it is essential for any organization to make them familiar with the business in which the company deals and the process they need to follow further in the future. This requires proper training and development to be provided to them within a strategic approach to decrease the uncertainty that can happen related to the training and development of those employees (Jones, D. R, 1998). As Body Shop is a Cosmetic company it needs to follow a proper process in manufacturing its product which needs to be known to the Employees who are recruited in the organization. In order to make them understand the whole process that is associated with the development and process of a product it is required to provide them with proper training and development programs in the organization (Wen, Y., & Zhang, L, 2011). For this purpose, a company formulates a proper strategy in advance to provide better training and development programs to their newly recruited employees and for the development of existing ones.


Providing rewards to the customer is the best strategy that can be used by the company Body Shop to motivate their employees in the organization. Rewards are the best factor that is used by various organizations all over the world to motivate their employees to effectively working in the organization (Thanarajah, S. E., DiFeliceantonio, A. G., Albus, K., Kuzmanovic, B., Rigoux, L., Iglesias, S., … & Small, D. M, 2023). In a similar way body shops also use the reward strategy to motivate their employees by providing several awards to them. These rewards can be given by the company in cash or in types of Appraisal which helps to accomplish the basic needs of the employees and help their family to survive.


Financial Management Strategies

Finance is the backbone of any company which helps an organization to manage their day-to-day expenses and operations of the business. Formulating an effective strategy for financial management is important as it will help the company to manage finances effectively. Body Shop Friendship Statements provide good financial management in the organization. The increase in the revenue of the organization from the year 2015 to 2022 helps to ensure that the company has a good financial management strategy that helps them to achieve maximum value in the organization (Ora, C. P., & Immawati, S. A, 2023). As shown in the net income which was growing in the early years of 2015 to 2018 but later on at a sharp decline. This indicates that the costs of the company are increasing and there are fewer driving uses for the company. The company needs to focus on increasing the net income of the company as they are the main income of the company.

Financial Statements

A financial statement contains two important statements of an organization that help to secure the company’s financial conditions and management strategies. The financial statements which are the income statement and balance sheet of the company Body Shop are given below which help in determining effective financial management strategies in the company:

Income Statement

GBP FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY


FY 2022
Revenue 428.1m 754.0m 797.0m 806.0m 845.3m 789.2m 815.5m 832.1m
Revenue growth, % 6% 6% 1% 5% -7% 3% 2%
Cost of goods sold 206.1m 228.0m 240.0m 194.0m 206.1m 191.3m 204.1m 201.2m
Gross profit 222.0m 526.0m 557.0m 612.0m 639.2m 597.9m 611.4m 630.9m
Gross profit Margin, % 52% 70% 70% 76% 75% 76% 75% 76%
Operating expense total 505.0m 530.0m 530.0m 505.0m 522.0m 511.0m 509.0m 513.0m
Depreciation and amortization 8.7m 22.0m 22.0m 22.0m 25.0m 27.0m 27.0m 27.0m
EBIT 34.0m 23.0m 29.0m 24.0m 26.2m 26.6m 35.4m 40.9m
EBIT margin, % 8% 3% 4% 3% 3% 3% 4% 5%
Interest expense 1.4m 4.0m 2.0m 4.0m 4.0m 5.0m 4.0m 4.0m
Interest income 6.7m
Pre-tax profit 39.3m 19.0m 27.0m 20.0m 22.2m 21.6m 31.4m 36.9m
Income tax expense 8.6m 5.0m 10.0m (4.0)m 6.7m 6.4m 9.4m 11.1m
Net Income 30.7m 14.0m 17.0m 24.0m 15.5m 15.2m 22.0m 25.8m


Balance sheet

GBP Million FY 2015 FY






FY 2019 FY




FY 2022
Cash 26 32 18.6 13.8 59 57 106 832.1
Accounts Receivable 27.4 30.9 77.7 80.2 54 55 41 201.2
Inventories 65.9 63.4 66.5 68 90 85 83 204.1
Current Assets 147.4 171.1 169.3 165.9 249 229 261 630.9
PP&E 48 44.2 42.8 44 91 93 77 77
Goodwill 124 121
Total Assets 413.4 520 502 531 531 502 531 832.1
Accounts Payable 25.9 25.8 26.1 87 78 83 83 83
Short-term debt 3.7 91 5 0 0
Current Liabilities 69.7 86 111.4 96.3 245 218 163 163
Long-term debt 7.7 8 7 7 7
Non-Current Liabilities 10.9 9.3 9.4 13 12 17 17 17
Total Debt 12 103 24 24 24
Total Liabilities 105.7 180 180 185 348 295 187 187
Common Stock 11.3 11.3 11.3 11.3 11 11 12 12
Additional Paid-in Capital 75 75 75 75 75 75
Retained Earnings 192.3 185 185 152 220 258
Total Equity 280 286.3 294.1 351 262 238 307 345


SWOT analysis


  • Strong brand reputation: The Body Shop is known for its commitment to natural and ethical products, which has earned it a loyal customer base.
  • Global presence: The Body Shop has a strong global presence with over 3,000 stores in over 60 countries.
  • Wide product range: The Body Shop offers a wide range of products for the face, body, hair, and home.
  • Commitment to sustainability: The Body Shop is committed to sustainability and has a number of initiatives in place to reduce its environmental impact.


  • Limited marketing: The Body Shop spends relatively little on advertising compared to its competitors.
  • Franchisee-based business model: The Body Shop’s franchisee-based business model can make it difficult to control brand consistency and quality.
  • Price sensitivity: The Body Shop’s products are priced at a premium, which can make them less affordable for some consumers.
  • Product innovation: The Body Shop has been criticized for not being as innovative as some of its competitors.


  • Growing demand for natural and ethical products: The demand for natural and ethical products is growing, which is a positive trend for The Body Shop.
  • Expansion into new markets: The Body Shop has the opportunity to expand into new markets, particularly in developing countries.
  • Growth of e-commerce: The growth of e-commerce is another opportunity for The Body Shop to reach new customers.


  • Increased competition: The Body Shop faces increased competition from a number of other brands, including L’Oréal, Unilever, and Procter & Gamble.
  • Changing consumer trends: Consumer trends are constantly changing, and The Body Shop needs to be able to adapt to these changes in order to remain competitive.
  • Rising costs: The Body Shop is facing rising costs for raw materials and labor, which could put pressure on its profits.


  • The Body Shop should increase its marketing spend in order to reach a wider audience and raise brand awareness
  • The Body Shop should develop stronger controls and support systems for its franchisees to ensure brand consistency and quality across all locations.
  • The Body Shop needs to stay ahead of the competition by introducing new and innovative products that appeal to consumers’ changing needs and preferences.
  • The Body Shop should focus on expanding its presence in emerging markets, where there is a growing demand for natural and ethical products.
  • The Body Shop should continue to invest in its e-commerce platform to make it easier for customers to shop online.


It is clear from the discussion above that effective financial and human resource management techniques are critical to the expansion of any company. The company’s human resource strategies, including effective recruitment, training, and reward systems, contribute to a skilled and motivated workforce. Financial management strategies, reflected in the income statement and balance sheet, showcase the company’s resilience and global growth. The Body Shop should focus on increased marketing, stronger franchisee support, product innovation, expansion into emerging markets, and ongoing investment in e-commerce. These techniques are also employed by multinational corporations such as Body Shop in order to improve their market share and grow their business through franchises.


Fauziah, P., & Mulyana, M. (2018). Formulation of The Green Marketing Development Strategy for the Body Shop . International Conference On Accounting And Management Science, 171-181.

Hartman, C. L., & Beck-Dudley, C. L. (1999). Marketing strategies and the search for virtue: A case analysis of the body shop, international. Journal of Business Ethics, 249-263.

Jones, D. R. (1998). Cultural development strategies and sustainability: a case study of the Body Shop. Sustainability Strategfes for Industry. The F uture of C orporate P ractice, 127-144.

Ora, C. P., & Immawati, S. A. (2023). Price Determination and Self-actualization on Purchase Decisions of Go Green the Body Shop Products at Tangcity Mall. INCOSHA, 43-48.

Pless, N. M. (2007). Understanding responsible leadership: Role identity and motivational drivers: The case of Dame Anita Roddick, founder of the Body Shop. Journal of Business Ethics, 437-456.

Ragupathi, D. (2013). The Financial and Human resource Management Strategies to Develop the Organisation. Research Journal of Management Sciences.

Rippin, A. (2013). Putting the Body Shop in its place: A studio-based investigation into the new sites and sights of organization as experience. Organization Studies, 1551-1562.

Thanarajah, S. E., DiFeliceantonio, A. G., Albus, K., Kuzmanovic, B., Rigoux, L., Iglesias, S., … & Small, D. M. (2023). Habitual daily intake of a sweet and fatty snack modulates reward processing in humans. Cell Metabolism, 571-584.

Wen, Y., & Zhang, L. (2011). Market Feasibility Research in China And Strategy Design:The Case of THE BODY SHOP. Journal of management.


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