The Body Shop
Essay by shahid0309 • March 7, 2018 • Essay • 744 Words (3 Pages) • 776 Views
The Body Shop
Case Study
By:
Mh.Shahid Shaikh
Student ID#991463743
Situation Analysis
Richard Paul is a prospective business person who is looking forward to invest and start his own business after a long tenure in working for others, marketing and Human Resources are two of his main strengths after coming across The Body Shop franchise advertisement he has been researching and meeting with the franchisor to startup.
SWOT Analysis (Strengths/Weaknesses)
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SWOT Analysis (Full SWOT Analysis)
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Actions:
Action 1: To opt for single The Body Shop franchise.
Action 2: To opt for two franchises in partnership.
Action 3: Opt to buy an existing location in city A.
Action 4: Opt to buy an existing location in city B.
Action 5: Opt to buy both existing location in City A and City B in partnership.
Recommendation:
I would recommend Action 2, to opt for two franchises in partnership, this is more feasible option because as per Pro Forma, Mr. Paul needs a loan ranging from $227,900 to $277,900 and based on Paul’s loan eligibility amount he is eligible to get 80% on fixtures plus 50% on inventory which will amount to $252,000 and this is the loan amount needed by Mr. Paul. Although in the meeting the franchisor mentioned that The Body Shop doesn’t grant multiple franchises to the new franchisee but as per meeting conversation if the partners are ready to work for operations and if the franchisor has the discretion to amend the agreement between partners, company can grant multiple franchises also the partners are enthusiasts so they would readily agree for any amendment in the agreement.
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