Introduction
The Body Shop Cosmetics Company is an international retailer of cosmetics, skin and hair care products, fragrances, and body and home care products. Founded in 1976 in the UK by the late Anita Roddick, it has since grown to become a global leader in natural and ethical beauty, with over 3,000 stores in 65 countries (Siti Jahroh, 2019). The Body Shop Cosmetics Company is a successful business that has achieved success through a variety of strategies. The Body Shop’s success is largely attributable to its strong commitment to ethical business practices and its focus on environmental sustainability. From its commitment to ethical business practices to its focus on product innovation and financial management, the company has strategically positioned itself to be a leader in the cosmetics industry. This essay will explore the role of HR, the strengths and weaknesses of the Body Shop Cosmetics Company, and how its financial management strategies have contributed to its success.
Roles and Strategies of HR
The role of HR in the Body Shop is to ensure that the company has a happy, productive, and motivated workforce. This means that they are responsible for recruiting the right people for the right job, training and developing employees to the best of their abilities and providing rewards and recognition for good performance. The Body Shop has a strict recruitment policy that is designed to ensure the company hires the right people for the right job (Ganatra et al., 2021). HR professionals are responsible for designing and implementing a recruitment strategy that involves interviewing and testing potential candidates to ensure they are the right fit for the organization. They also ensure that the job advertisements are attractive and targeted to the right audience. One strategy used to gather the most qualified personnel is the use of social media and other platforms to conduct background checks and verify references of potential workers.
Furthermore, HR professionals play the role of designing and executing an effective training and development program for the employees (Ganatra et al., 2021). This includes HR strategies like providing on-the-job training and formal workshops to teach them the necessary skills to do their jobs well. They also organize seminars and conferences to keep employees up to date with the latest industry trends. They use assessment tools to measure the progress and effectiveness of the training and development program. HR professionals are also responsible for designing and implementing a reward system to recognize and reward employees for their outstanding performance. This can include bonuses, promotions, and other forms of recognition. They also work with the management team to establish a fair and transparent system of performance reviews and appraisals. The reward system should be tailored to the individual needs of each employee and should be used to motivate and inspire them to give their best.
Strengths and Weaknesses
The first strength of the HR department at the Body Shop Cosmetics Company is its commitment to ethical business practices. The company has a long-standing commitment to sourcing natural and cruelty-free ingredients, ensuring that all of its products are made from sustainable and renewable sources (Ganatra et al., 2021). Furthermore, the company has a strong emphasis on corporate social responsibility, to minimize its environmental footprint and promote social justice. This commitment to ethical business practices is reflected in the HR policies and practices of the company (Siti Jahroh, 2019). A second strength of the HR department is its commitment to employee development and engagement. The company actively invests in employee development, providing employees with a range of learning and development opportunities (Ganatra et al., 2021). It also provides employees with a range of benefits and perks, such as flexible working arrangements, health insurance, and a generous maternity leave policy.
Furthermore, the company encourages employee engagement, with regular employee surveys and focus groups designed to ensure that employees feel valued and respected. Lastly, the company shows a commitment to diversity and inclusion (Paterson, 2015). The company has a range of policies in place to ensure that all employees are treated with respect and dignity, regardless of their gender, race, age, or sexual orientation. Furthermore, the company has a strong commitment to equal pay, with a commitment to ensuring that all employees are paid fairly for their work.
Despite these strengths, there are some weaknesses of the HR department at the Body Shop Cosmetics Company. One such weakness is the lack of transparency in the recruitment and selection process. The company does not provide detailed information about the selection process, making it difficult for candidates to understand the criteria for selection (Paterson, 2015). Furthermore, there is no mechanism for feedback on the recruitment process, making it difficult for applicants to understand why they were unsuccessful.
Another weakness is the lack of communication between the HR department and other departments within the company. The HR department is often seen as a separate entity, with no connection to the other departments (Paterson, 2015). This can result in a lack of collaboration between the HR department and other departments, leading to inefficiencies and delays in decision-making. Finally, the HR department of the Body Shop Cosmetics Company lacks adequate resources. The company is often under-resourced, with a limited budget and staff. This can lead to a lack of efficiency and effectiveness, as the HR department is unable to adequately support the needs of the company.
Financial Management Strategies
The first financial management strategy employed by the Body Shop Cosmetics Company is its focus on controlling costs. The company actively monitors their costs, ensuring that they are kept at a minimum without compromising the quality of its products or services (Vincensia, 2021). This is evident in their profit and loss statements, which show that the company’s expenses are lower than the industry average. This strategy helps the company to maximize profits and maximize the value of its products. Another technique is the company’s engagement in customer loyalty and retention. The company actively invests in customer loyalty initiatives, such as customer rewards programs, customer feedback surveys, and customer loyalty discounts (Vincensia, 2021). This is evident in their balance sheets, which show that the company is investing in long-term customer relationships. This strategy helps the company to increase customer loyalty and ensure customer satisfaction.
Moreover, the company actively invests in research and development, ensuring that its products remain competitive in the market. This is evident in their profit and loss statements, which show that the company is investing in research and development activities. This strategy helps the company to stay ahead of the competition and remain competitive in the market. Finally, the Body Shop Cosmetics Company also employs a variety of debt management strategies (Ganatra et al., 2021). The company actively monitors their debt, ensuring that it is kept to a minimum and that its debt levels are manageable. This is evident in their balance sheets, which show that the company is actively managing its debt levels. This strategy helps the company to ensure that its debt levels are manageable and that it can meet its financial obligations.
The latest profit & loss report for the Body Shop Cosmetics Company provides insight into the company’s strategies. The report shows that the company has experienced an increase in revenue from the previous year, with net sales increasing by 8.2% (Petruzzi, 2022). This increase in revenue can be attributed to the company’s focus on product innovation, with the introduction of new products such as facial oils and vegan makeup. Furthermore, the company has also experienced an increase in gross margin, indicating that the company has been successful in controlling costs.
Furthermore, the balance sheet for the Body Shop Cosmetics Company also provides insight into the company’s strategies. The report shows that the company has a strong balance sheet, with a healthy ratio of current assets to current liabilities (Petruzzi, 2022). This indicates that the company can meet its short-term obligations and is financially stable. Furthermore, the company has also experienced a decrease in long-term debt, indicating that the company is managing its finances efficiently.
Conclusion
All of the company’s strategies, such as ethical business practices, product innovation, and financial management, have played a role in its success. However, if I had to choose one strategy that has contributed most to the company’s success, it would be its commitment to marketing and corporate social responsibility (CSR). The Body Shop Cosmetics Company has a strong focus on marketing and CSR. The company has a strong presence on social media, with a focus on engaging with customers and promoting its products. Furthermore, the company has also implemented a range of CSR initiatives, such as its ‘Enrich Not Exploit’ campaign, which focuses on environmental sustainability and human rights. These initiatives have helped to increase brand awareness and further strengthen the company’s reputation as a leader in ethical and sustainable beauty.
Reference List
Ganatra, V. et al. (2021) ‘The Body Shop ‘Forever Against Animal Testing’, International Journal of Applied Business and International Management, 6(1), pp. 90–100. Web.
Paterson, J. (2015) The Body Shop Launches Global HR Brand, Employee Benefits. Web.
Petruzzi, D. (2022) The Body Shop: Total Revenue 2016-2021, Statista. Web.
Siti Jahroh, S.S. (2019) ‘How important is Green Marketing Mix for consumer? Lesson from the body shop’, Jurnal Manajemen, 23(2), p. 321. Web.
Vincensia, S. (2021) Body shop retail strategy, Global Business Marketing. Web.