Founded in 1976 by Anita Roddick, The Body Shop International plc, known as The Body Shop, has 2,400 stores in 61 countries and is the second-largest cosmetic franchise globally. The Body Shop is headquartered in England and is now part of the L'Oréal corporate group. The Body Shop International plc is a global manufacturer and retailer of naturally‐inspired, ethically‐produced beauty and cosmetics products. In an interview, Anita Roddick stated that “for nearly twenty years, we never had an organizational chart.” She also said that they had no systems or procedures, job descriptions, or functional departments like marketing or operations. These ceased when the company restructured and formalized aspects of work. As a result of growth, Anita Roddick (The Body Shop) turned to management consultants for help with reorganization but claimed it resulted in disaster. Roddick described the proposed organizational chart as “a Lego set from hell.” Anita Roddick suggests that consultancies have their way of doing things and try to force companies to fit their mold. They fail to appreciate the company culture (“fluidity”, “non-hierarchical management”). The Body Shop found they could not work with the consultants who were too hierarchical. Roddick stated that she learned that the bigger you get; the hierarchy sneaks up on you. It creates more rules and regulations (formalization – bureaucracy). As a consequence, creativity is stifled. Founded in 1976 by Anita Roddick, The Body Shop International plc, known as The Body Shop, has 2,400 stores in 61 countries and is the second-largest cosmetic franchise globally. The Body Shop is headquartered in England and is now part of the L'Oréal corporate group. The Body Shop International plc is a global manufacturer and retailer of naturally‐inspired, ethically‐produced beauty and cosmetics products. In an interview, Anita Roddick stated that “for nearly twenty years, we never had an organizational chart.” She also said that they had no systems or procedures, job descriptions, or functional departments like marketing or operations. These ceased when the company restructured and formalized aspects of work. As a result of growth, Anita Roddick (The Body Shop) turned to management consultants for help with reorganization but claimed it resulted in disaster. Roddick described the proposed organizational chart as “a Lego set from hell.” Anita Roddick suggests that consultancies have their way of doing things and try to force companies to fit their mold. They fail to appreciate the company culture (“fluidity”, “non-hierarchical management”). The Body Shop found they could not work with the consultants who were too hierarchical. Roddick stated that she learned that the bigger you get; the hierarchy sneaks up on you. It creates more rules and regulations (formalization – bureaucracy). As a consequence, creativity is stifled. QUESTION: Discuss the changing internal environment at the Body Shop (associated with growth) and the consequences and challenges for organization design; in particular, comment on the dual challenge of, on the one hand making an organization more efficient (integrated) and on the other, making it more creative (different).

Principles Of Marketing
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ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
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Founded in 1976 by Anita Roddick, The Body Shop International plc, known as The Body Shop, has 2,400 stores in 61 countries and is the second-largest cosmetic franchise globally. The Body Shop is headquartered in England and is now part of the L'Oréal corporate group. The Body Shop International plc is a global manufacturer and retailer of naturally‐inspired, ethically‐produced beauty and cosmetics products. In an interview, Anita Roddick stated that “for nearly twenty years, we never had an organizational chart.” She also said that they had no systems or procedures, job descriptions, or functional departments like marketing or operations. These ceased when the company restructured and formalized aspects of work. As a result of growth, Anita Roddick (The Body Shop) turned to management consultants for help with reorganization but claimed it resulted in disaster. Roddick described the proposed organizational chart as “a Lego set from hell.” Anita Roddick suggests that consultancies have their way of doing things and try to force companies to fit their mold. They fail to appreciate the company culture (“fluidity”, “non-hierarchical management”). The Body Shop found they could not work with the consultants who were too hierarchical. Roddick stated that she learned that the bigger you get; the hierarchy sneaks up on you. It creates more rules and regulations (formalization – bureaucracy). As a consequence, creativity is stifled.

Founded in 1976 by Anita Roddick, The Body Shop International plc, known as The Body Shop, has 2,400 stores in 61 countries and is the second-largest cosmetic franchise globally. The Body Shop is headquartered in England and is now part of the L'Oréal corporate group. The Body Shop International plc is a global manufacturer and retailer of naturally‐inspired, ethically‐produced beauty and cosmetics products. In an interview, Anita Roddick stated that “for nearly twenty years, we never had an organizational chart.” She also said that they had no systems or procedures, job descriptions, or functional departments like marketing or operations. These ceased when the company restructured and formalized aspects of work. As a result of growth, Anita Roddick (The Body Shop) turned to management consultants for help with reorganization but claimed it resulted in disaster. Roddick described the proposed organizational chart as “a Lego set from hell.” Anita Roddick suggests that consultancies have their way of doing things and try to force companies to fit their mold. They fail to appreciate the company culture (“fluidity”, “non-hierarchical management”). The Body Shop found they could not work with the consultants who were too hierarchical. Roddick stated that she learned that the bigger you get; the hierarchy sneaks up on you. It creates more rules and regulations (formalization – bureaucracy). As a consequence, creativity is stifled.

QUESTION:

Discuss the changing internal environment at the Body Shop (associated with growth) and the consequences and challenges for organization design; in particular, comment on the dual challenge of, on the one hand making an organization more efficient (integrated) and on the other, making it more creative (different).

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