Comparative Analysis of the Entrepreneurial Journey of The Body Shop and Genentech - Essay Example

Comparative Analysis of the Entrepreneurial Journey of The Body Shop and Genentech By al Affiliation> September 14, 2016 Introduction Establishing an entrepreneurial venture is tedious and challenging. Careful planning through conducting a comprehensive market research needs to be entailed. The proliferation of global organizations has added complexity in the international market for product and services that could be availed by a wider range of clientele. As such, ventures that have been successful are commendable and their entrepreneurial journeys are worth exploring. In this regard, the current discourse aims to present an exploration and comparative analysis of the entrepreneurial journeys of The Body Shop and Genentech. A brief company overview of both organizations would initially be presented to contain relevant highlights pertaining to the organization’s successful performance. The comparative analysis section would evaluate distinct facets in terms of strengths and core competencies that enabled these organizations to succeed in their respective endeavors. The Body Shop 1. Brief Historical Overview The founder of The Body Shop, Dame Anita Roddick, stated the philosophical essence of the enterprise when she averred that “the business of business should not just be about money, it should be about responsibility. It should be about public good, not private greed (The Body Shop, 2014, p. 1). The origin of the first The Body Shop store was traced in March 26, 1976 in Brighton, England (The Body Shop, 2014). In its 38 years of existence, The Body Shop International has reportedly expanded to more than 2,500 stores in 60 international markets globally (The Body Shop, 2014). The Body Shop has been revealed to be a subsidiary of L’Oreal since 2006 (LOreal, n.d.). In 2013, the number of stores increased by as much as 82 stores from the exact number of 2,837 in 2012; bringing the total number of stores to 2,919 (LOreal, n.d.). The timeline of milestones for The Body Shop is shown as Figure 1, below: Figure 1: Timeline of The Body Shop Source: Preceden, n.d. 2. Products The products of the organization are diverse and categorized according to bath and body care, hand care, make-up, men’s products, skincare, and fragrance. Likewise, aside from the retail stores established in strategic locations, these products could be availed through the online medium. 3. Financial Highlights The retail sales of The Body Shop according to stores in Western Europe, North America, and the new markets are shown in Table 1, below: From the figures, it could be deduced that the total retail sales have actually declined in 2013; where all markets contributed marked decreases in retail sales from the comparative period in 2012. Table 1: Retail Sales of The Body Shop, 2011 to 2013 Source: LOreal, n.d. 4. Strengths and Core Competencies One of the strengths of The Body Shop is its affiliation with an established and renowned brand, L’Oreal. From the official website, it is reported that The Body Shop intends to venture into Brazil as a global expansion (LOreal n.d.). Its share price as of December 5, 2014 was reported to be €139.10, representing an increase of 2.58 % (LOreal n.d.). Genentech 1. Brief Historical Overview Genentech was reported to be founded by “venture capitalist Robert Swanson and biochemist Dr. Herbert Boyer…on April 7, 1976” (Genentech, 2013, p. 1). Genentech focuses on biotechnology to deliver products that aim to cure diseases. For the past 35 years, the organization was reported to “use human genetic information to discover, develop, manufacture and commercialize medicines to treat patients with serious or life-threatening medical conditions” (Genentech, 2014, p. 1). The organization is reported to be a member of the Roche Group since 2009 (Genentech, 2014). The milestones and historical landmarks for Genentech’s and Roche’s products are shown in Figure 2 below. From the timeline, it could be observed that the company has undertaken rigorous efforts for research and development on a continuing and consistent basis to come up with product that would be instrumental to the improvement of health and treatment of serious diseases. Figure 2: Approvals Timeline for Genentech’s and Roche’s Products Source: (Genentech 2014) 2. Products The products manufactured by Genentech were revealed to be developed for serious or life-threatening medical conditions (Genentech,2014). The products are listed as Annex A. 3. Financial Highlight Since the Company is already a subsidiary of the Roche Group, the financial highlights of the group as 2013 are shown as Table 3: Table 3: Finance Report, Roche Group 2012 - 2013 Source: Roche, 2013 The financial highlights revealed that the Roche Group exhibited robust growth from 2012 to 2013 with sales, operating profit, and net income in increasing patterns. Likewise, the core results also reported growths in research and development, operating profit, and the core earnings per share (EPS) for the period under review. 4. Strengths and Core Competencies For 2014 alone, Genentech has revealed that it is a recipient of 15 awards (Genentech, 2014). Among the recognition received, majority focused on the “overall performance as a company, our dynamic workplace culture, our contributions to the community and our patient advocacy” (Genentech, 2014, p. 1). Since 2010, the organization had been awarded with 32 distinctions in the areas of scientific, corporate, as well as diversity and inclusion categories. Comparative Analysis 1. Similarities From the information gathered for both organizations, it could be deduced that they share similarities in terms of the time frame within which they started in their respective industries. Both The Body Shop and Genentech were founded in 1976. They have produced products that aimed to serve greater benefits for the consumers, more than generating profits for the organizations. Likewise, in recent years, these companies both partnered with world renowned organizations in similar fields of endeavor. The Body Shop became an affiliate of L’Oreal in 2006; while Genentech became a member of the Roche Group in 2009. 2. Disparities There are marked differences in these organizations’ entrepreneurial journeys. At the simplest level, their corporate headquarters are diversely located. The Body Shop’s corporate headquarters is in New City Court, 20 St Thomas Street, London, SE1 9RG, United Kingdom (Company Overview of The Body Shop International plc 2014), while Genentech’s corporate headquarters is located in 1 DNA Way, South San Francisco, CA 94080-4990, United States (Company Overview of Genentech, Inc. 2014). Concurrently, The Body Shop promoted five (5) core values: “Support Community Fair Trade, Defend Human Rights, Against Animal Testing, Activate Self-Esteem, and Protect Our Planet” (The Body Shop, 2014, p. 1); while the values of Genentech were revealed to focus on integrity, courage and passion (Genentech, 2014). Thus, the identification of core values for The Body Shop was more detailed and specific; while those for Genentech were generalized. In terms of product description and features, the products produced by The Body Shop focus on improving the physical qualities of the consumers – more on aethetic value. In contrast, the products manufactured by Genentech are designed to treat serious illnesses. For The Body Shop, from the information gathered and reviewed, it could be deduced that the organization expanded through geographic expansion, meaning, retaining most of the product lines, they ventured into other markets through the establishment of additional stores. Likewise, The Body Shop was reported to venture into the Brazil market through the acquisition of the Emporio Body Store (LOreal, 2013). According to the 2013 Annual Report of L’Oreal, “The Body Shop has finalised its acquisition of a majority stake in Emporio Body Store, which markets cosmetics ranges in Brazil through a franchise network. This growth relay enables The Body Shop to offer its products to Brazilian consumers looking for naturally-inspired sensorial products” (p. 22). On the other hand, Genentech continued to pursue research and development into discovering new products that aim to solve unmet medical needs (Genentech, 2014). As such, the organization is expanding through vertical means through product development. As emphasized, “Genentechs development pipeline continues to grow, with multiple promising projects in the following therapeutic focus areas: Oncology, Immunology, Neuroscience, Metabolism, and Infectious Disease. Our clinical development pipeline includes monoclonal antibodies, small molecules, and antibody drug conjugates that address serious unmet medical needs” (Genentech: Pipeline, 2013, par. 1). From an analysis of the organizations products, it could be observed that the products of The Body Shop are being offered to similar target markets or clientele of L’Oreal, which also produce and manufacture and sell their own lines of products in different brands: Lancome, Giorgio Armani, Yves Saint Laurent, Biotherm, among others (LOreal n.d.). As such, in a way, the products of The Body Shop technically compete with products of L’Oreal. This could be one of the reasons why the retail sales of The Body Shop had exhibited declining trends for the periods 2012 to 2013 (LOreal n.d.). In fact, according to news report which analyzed the financial performance of The Body Shop, “the very fact that the company was bought by L’Oreal may also have alienated a number of its loyal followers” (Bird, 2009, p. 1). The integration with L’Oreal diffused focus of its loyal clientele to other products that are being carried and offered by the parent company. In contrast, Genentech’s products do not share any similarities in features or properties with Roche’s previously manufactured and distributed products. As emphasized, “Genentech became a member of the Roche Group in March of 2009. As part of their merger agreement, Roche and Genentech combined their pharmaceutical operations in the United States” (Genentech, 2014, p. 1). Therefore, their products do not compete directly with products of Roche. Conclusion In sum, the current discourse successfully achieved it objective of presenting comparative analyses of the entrepreneurial journeys of The Body Shop and Genentech. Through initially presenting separate information on the organizations covering their historical framework, products, financial highlights, as well as strengths and core competencies, appropriate data was collected as a prerequisite for presenting more in-depth comparative details. Overall, although there were similarities shared by these organizations in terms of date of founding and eventual venturing as affiliates for larger organizations in similar fields of endeavors, these organizations exhibited greater disparities. There are differences exhibited in the areas of core values, product features and ultimate benefits to the clientele, the plans for future expansion, as well as financial performance. Overall, the presentation of the comparative analysis of the entrepreneurial journeys of these organizations affirmed that depending on the strategies employed by their parent companies, these organizations’ continued exhibiting of success or failure in financial performances and entrenchment in their respective industries would be affected. The Body Shop’s future plans through venture in the Brazilian market are aimed to improve their financial condition. On the other hand, the continued research and development plans of Genentech could generate more accolades and recognition for their innovativeness and potentials to meet health needs of compromised clientele. The future rests in their hands. Annex A: List of Products Manufactured by Genentech Avastin® (bevacizumab) in Metastatic Colorectal Cancer Avastin Proposed Mechanism of Action Avastin® (bevacizumab) Plus Interferon Alfa In First-Line Metastatic Kidney Cancer Avastin® (bevacizumab) in Lung Cancer Erivedge® (vismodegib) Capsule in Advanced Basal Cell Carcinoma Erivedge® (vismodegib) Development Timeline Gazyva® (obinutuzumab) Injection in Chronic Lymphocytic Leukemia Gazyva® (obinutuzumab) Proposed Mechanism of Action Herceptin® (trastuzumab) Development Timeline Herceptin® (trastuzumab) in Early-Stage and Advanced Breast Cancer Herceptin® (Trastuzumab) Plus Chemotherapy in HER2-positive Metastatic Stomach (Gastric) Cancer Herceptin Proposed Mechanism of Action HER2 Testing Kadcyla™ (ado-trastuzumab emtansine) Proposed Mechanism of Action Lucentis® (ranibizumab injection) Pegasys® (peginterferon alfa-2a) in Hepatitis C Perjeta® (pertuzumab) in HER2-Positive Metastatic Breast Cancer Rituxan®(rituximab) In Non-Hodgkin’s Lymphoma And Chronic Lymphocytic Leukemia Roles of the HER2 Family Medicines Tamiflu® (oseltamivir phosphate) Tarceva (erlotinib) in Non-Small Cell Lung Cancer Xolair® (omalizumab) for Subcutaneous Use Zelboraf® (vemurafenib) in Metastatic Melanoma Source: Genentech, 2014 Reference List Bird, K. 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