Project Summary Organizational Background

 

 

 

Capstone Project Summary
Falan Fountain
12/01/2021
MBA-FPX5910
Professor Cheryl Bann

Capstone Project Summary
Organizational Background
Opened in 1990 in New Albany, Ohio, Bath and Body Works LLC is a multinational retail chain specializing in toiletry products, including soaps, shower gels, body creams, fragrances, candles, and lotions. The company operates nearly 2,000 stores in six different continents, including Saudi Arabia, making it one of the largest retail stores within the health and body care industry (Bath and Body Works, 2021). Bath and Body Works also has more than 20,000 employees throughout its facilities globally. It is highly successful, posting positive revenue figures, including more than $12 billion in 2019 (Bath and Body Works, 2021). This figure increased in 2020 due to the COVID-19 pandemics effect on peoples purchasing behavior. Nonetheless, the organization faces stiff competition from other health and body care firms, including Procter and Gamble, Dove, SVR, Avon Products Inc, Lush, and The Body Shop. Bath and Body Works has survived by positioning itself strategically as a desirable mall brand despite the high competition and market saturation.
Business Problem
Before 2021, it was part of the Limited Brands umbrella with other notable brands, such as Victorias Secret. However, as of March 2021, a strategic split has established the company as Bath and Body Works Inc, operating under the ticker (BBWI). This split also established Victorias Secret as an independent company operating as Victorias Secret & Co. and operating under the ticker (VSCO). This split could have occurred in 2020 as Limited Brands wanted to sell a controlling stake of the struggling Victorias Secret line a controlling stake to Sycamore Partners (Thomas, 2021). However, the deal fell through due to the COVID-19 pandemic.
The split of Limited Brands into two separate firms introduces unique challenges to both firms (Burgelman et al., 2021). Specifically, Bath and Body Works has experienced a good run of operations in recent years and is planning to grow further its market share, revenue, and profits in the future. The management and operational disruptions of the slip could stall or even reverse the firms growth. Resultantly, the firm needs to introduce practical strategies to manage the turbulence of the strategic split and ensure the companys sustained growth. This capstone project seeks to develop recommendations for Bath and Body Works Inc.s management to assist them in sustaining the companys growth by managing the effects of the firms split from Limited Brands. The project will address all vital business components, including management approach, ethics, and organizational strategies moving forward.
Data Accessibility
Achieving the capstone projects objectives will require access to pertinent organizational and industry data. The Bath and Body Works Inc. website has a considerable amount of information that could answer the researchs questions. Also, the organizations financial performance data is available through their filings with the SEC. This information will contextualize the organizations performance before and after the split and help identify the business most affected areas. Also, it will allow more specific and accurate recommendations that align with the organizations needs based on available performance data. Available peer-reviewed literature regarding the companys split from Limited Brands will be necessary for this research. A literature search in Google Scholar and other literature databases will help identify relevant studies relating to the problem. Finally, previous case studies of such splits within other organizations can help provide critical information about the expected challenges following such strategies and how to address them effectively (Fujikawa & Landers, 2021).. This data is easily accessible through a simple Google Search. Overall, all the information necessary to complete the research is readily available through primary and secondary data sources without significant risks or limitations.
Relation to MBA Outcomes
Apply foundational knowledge and an understanding of business systems, processes, and technology within and across core disciplines. The researchs main objective is to provide recommendations for Bath and Body Works Inc. following its split from Limited Brands. Answering this question requires understanding business systems and processes and how they affect firm profitability and growth. The research will also include the application of business theories and models to solve arising problems.
Integrate information across disciplines and from differing perspectives. The research will integrate data from different sources and disciplines and apply it to Bath and Body Works Inc. This process requires an understanding of varying perspectives both individually and holistically.
Think critically and analytically and to business challenges and opportunities. The research identifies a specific potential challenge facing Bath and Body Works Inc. It will use qualitative and quantitative data to develop and justify the recommendations. Specifically, it will rely on from reputable journals.
Apply innovative, strategic, and sustainable approaches to business practice and planning. The research aims to develop innovative, strategic, and sustainable recommendations. This process requires an understanding of best business practices and the role of planning in ensuring business success.
Lead and collaborate in virtual, global, and culturally diverse environments. A central focus is developing recommendations for the organizations managementthe international nature of Bath and Body Works Inc. means it has a high level of cultural diversity. This objective will require an understanding of leadership principles and their application in global environments.
Integrate principles of ethics and integrity into business decisions. The recommendations will encompass ethical issues surrounding the company. Achieving this objective will require a critical understanding of business ethics and their role in business decisions.

References
Burgelman, R. A., Snihur, Y., & Thomas, L. D. W. (2021). Why Multibusiness Corporations Split: CEO Strategizing as the Ecosystem Evolves. Journal of Management, 014920632110276. https://doi.org/10.1177/01492063211027623
Bath and Body Works, Inc. (2021). About Us. Bath & Body Works, Inc. https://www.bbwinc.us
Megumi Fujikawa, & Landers, P. (2021, November 12). Toshiba, Like GE, Plans to Split Into Three Units. WSJ; The Wall Street Journal. https://www.wsj.

 

 


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