The Body Shop International PLC 2001: An Introduction to Financial Modeling

1. Follow the directions in the case study to make a three year forecast, and prepare responses the questions at the end of the case.

NEED CASE STUDY SOLUTION!!! 3 Year Forecast done correctly on excel!!!

End of Case Questions:

1. How did you derive your forecast? Why did you choose the base case assumptions that you did?

2. Based on your pro forma projections, how much additional financing will The Body Shop need during this period?

3. What are the three or four most important assumptions or key drivers in this forecast? What is the effect on the financing need of varying each of these assumptions up or down from the base case? Intuitively, why are these assumptions so important?

4. Why are your findings relevant to a general manager like Roddick? What are the implications of these findings for her? What action should she take based on your analysis?