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Essay / Research Paper Abstract
This 3 page paper looks at the Body Shop as an example of a company that has worked with employees and local communities in other countries in order to make use of comparative advantage. The paper looks at how the company has developed the relationships with local communities, the short and long term costs and benefits and whether this is an approach that may be transferred to other companies. The bibliography cites 4 sources.
Page Count:
3 pages (~225 words per page)
File: TS14_TEBodSpCm.rtf
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Unformatted sample text from the term paper:
with active management of the activities in foreign host countries, both up stream and downstream, that the company has managed to gain a strong market position at the same time
as taking advantage of comparative advantages and creating competitive advantages with the strong reputation for ethical products. The Body Shop now has shops in 25 countries and originates in
supplies in 35 countries across the globe. Looking first at the sourcing go the good that are sold the company has a Community Trade programme. The aim of this programme
is for goods to be sourced from disadvantages communities, but under a fair trade approach, where the suppliers are paid a fair price for their goods so that all costs
are covered as well sufficient to pay fair wages and allow for future investment (Body Shop, 2007). The company emphasize that it is
more than simply paying a fair price, it is also the way a relationship is developed with the relationship based in respect and trust and the alignment of social and
economic goals (Body Shop, 2007). The model may be seen as altruistic, and the aims of the Body Shop have often been seen in mixed lights. There is little
doubt that whatever approach is adopted there has been the creation of profit, this was demonstrated recently with the purchase of The Body Shop by LOreal for a total of
$1.14 billion (Vitorocich, 2006). This may be seen as indicating that the ethical policies and working with the communities in the developing world is merely a publicity tool, used to
create a differentiated image (Hall, 2007). However, with the targeting of disadvantaged communities there is a benefit crated that can help create sustainable development (Chyssides and Kaler, 1998). This
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