3. 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). 4. Critically evaluate and propose which organizational model (Chandler, Greiner, and Mintzberg) would allow the Body Shop to avoid hierarchy and remain creative. 5. Decide on the most applicable management style (strategic planning, financial control, strategic control) that will allow the headquarters of the Body Shop to add value to its business units.
3. 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). 4. Critically evaluate and propose which organizational model (Chandler, Greiner, and Mintzberg) would allow the Body Shop to avoid hierarchy and remain creative. 5. Decide on the most applicable management style (strategic planning, financial control, strategic control) that will allow the headquarters of the Body Shop to add value to its business units.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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3. 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).
4. Critically evaluate and propose which organizational model (Chandler, Greiner, and Mintzberg) would allow the Body Shop to avoid hierarchy and remain creative.
5. Decide on the most applicable management style (strategic planning, financial control, strategic control) that will allow the headquarters of the Body Shop to add value to its business units.
Transcribed Image Text:The Body Shop (Cengage, 2009)
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.
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