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. Based on the case facts and supplementary research, answer the following items: 1. “Organization structure is more than boxes on a chart.” - Compare this statement to how Anita Roddick described the proposed organizational chart for her company after its reorganization. Analyze the two (2) statements and consider what organization structure/design includes. What are the tools typically used to structure organizations? 2. Assess what is meant by organizational hierarchy and its impacts upon the organization.
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.
Based on the case facts and supplementary research, answer the following items:
1. “Organization structure is more than boxes on a chart.” - Compare this statement to how Anita
Roddick described the proposed organizational chart for her company after its reorganization. Analyze
the two (2) statements and consider what organization structure/design includes. What are the tools
typically used to structure organizations?
2. Assess what is meant by organizational hierarchy and its impacts upon the organization.
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