Table of contents
Executive Summary 3
The mission 6
SWOT analysis 7
PESTLE analysis 10
Ansoff’s Matrix 13
Leadership Model 14
This report is mainly targeting one of Headmasters salon in London situated in the south west London in Fulham Broadway. The purpose of this report is firstly, to identify the external and internal factors that contribute to the success or failure of Headmasters in Fulham Broadway. Secondly, to portray a clear strategic plan to improve the business in competition with its competitors and existing leading hair salons. This will be in the form of PESTLE, SWOT, Ansoff Matrix and Leadership models. Finally, since it is a service based sector, why the employees and customer’s contribution towards to success/failure of the company is crucial.
Headmasters is a hairdressing company that has salons mainly all around London, almost conquering United Kingdom and have opened their first international salon in Norway. Their first salon opened in Wimbledon in1982, with just one stylist and one assistant. With their passion, dedication and love for hairdressing they have grown to be one of the most popular salons in the United Kingdom, targeting a very unique audience.
This dedication to giving their clientele beautiful, confidence boosting hair means Headmasters have stood a test of time and are lucky enough to have an extremely loyal customer base. Their salons are based in some of the most exclusive parts of the country, from Bath to Wybridge, and from Mayfair to Richmond. Without exception all Headmasters branches around United Kingdom carry the same atmosphere of contemporary elegance and uniformity. In 2010, value sales of hair care grew by 2% to reach £1.4 billion. Following the recession, the numbers of visits to the salon in a year decreases but clients never cease to cut and colour their hair and spend their time grooming themselves. Clients did not stop going to the hairdressers, but the time gap between each visit increased. This is part of the growing popularity of being ‘perfect’ in the society where the outer appearance is crucial in order to be accepted. The increasing pressure to be perfect and look like photo-shop models are rising and this plays a big successful part in the growing hair and beauty industry even though it is a vague thought.
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Headmasters cater to a range of clients starting from the lower to the upper class market. They have a universal price range in all their salons but they vary according to the stylist of your choice.
As you can identify that the prices above are not very expensive for the potential clients that reside in the Chelsea area. Hence, this attracts more clients from the middle class.
Location: 12- 14 Fulham Broadway
Headmasters in Fulham Broadway is situated right in the midst of Chelsea on one side and Hammersmith on the other side. This gives them an advantage to attract clients from both classes. Keeping in mind, TONI&GUY who is just around the corner furnish to the upper class clients. This will in turn lead to opportunity growths in the sales from the middle class clients.
The Mission: Headmasters in Fulham Broadway have just experienced a change in manager since March 2012. The new manager has fresh ideas and a new perspective towards achieving a target every month. At the moment the salon has not been even breaking even with their monthly target i.e. £16,000 exclusive sales of retail products. Our main goal is to
* have 80 clients a week per stylist
Establishing and Maintaining Good Client Relations Total Quality Management, customer satisfaction index, zero defects, client service - all are buzzwords of management in the 1990s. Yet what is all this about anyway? After all, lawyers and law firms successfully made it through the '80s without all the commotion about quality and service. Why all the fuss now? Is this just another fad, some ...
* employ 20 stylists
* maintain loyal clients
* attract new clients
* hit our weekly target of £ 1200
* build a strong loyal team
* reduce the high level of turn over
* create a better working environment in terms of facilities available to the staff
The time period to achieve these goals would be 6 months starting from March 2012. And to ensure that the process of achieving these set goals, monitoring the staff’s performance and having a personal feedback session every month with the manager would be essential.
Our mission will be achievable with the assistance of having a clear and transparent view of all our targets, where each member of staff will be aware of. This will be carried out with a strategic planning of the SWOT analysis, Ansoff Matrix, PEST analysis and Leadership models.
Strengths * Location * Brand recognition * Investors * Sufficient funds * Great working area /sq.ft * 21 professional stylist (currently 2012) * Loyal staff = loyal clients * Variety of product offer * Comfortable environment * Good customer service * Great deals and offers available * Professional hair advice offered * Education programmes * Strong team | Weakness * High turn-over * Concentrates on quantity rather than quality * Too many offers and deals |
Opportunities * Broadening market segment * Potential partnerships with existing businesses * Global impact * Improve educational programmes * Increase no. of franchises * Increase awareness through marketing * Offers and deals | Threats * Competitors like TONI&GUY, RUSH, etc. * Lifestyle * New ‘home care’ products available on the high streets * Mobile hairdressers * New entrants |
* Strengths: Headmasters have been in the hairdressing industry for 30years. They have 42 salons in U.K and currently branched out into Europe with their first salon in Norway. People recognize the brand and recommend their service around London. The salon located in Fulham Broadway is one of the biggest salons (30 seats) they have in Southwest London, hence giving them an advantage to acquire more clients than a normal size salon (10-15 seats).
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With such a great salon floor comes with a big team of stylist and assistants. They are trained to offer a professional and friendly service to each and every client. Headmasters offer a variety of deals such as half price cut and colour for new clients, £99 for a full head of colour and cut on Mondays, HM club card, £106 for half head of colour and cut on Tuesdays, half price cut voucher, online discounts, etc. This encourages clients to visit the salon more often even when the economic crisis hit. Finally, Headmasters offers in-house professional assistant training for aspiring hairdressing of the future. They also give the opportunity to have regular sessions at their academy.
* Weakness: Headmasters in Fulham Broadway have so much space to generate profits and for that reason recruitment of new staff is constant. With a strict rule of 45minutes per appointment, this time limit does not apply to clients with long hair, thick hair and sometimes fussy clients. Since these clients require more time and patience, the importance to give them a professional service is not always successful. This leads to unhappy clients who lead to unhappy staff; therefore, results in a high turnover. If there is no attention given to the internal factors of the business the consequences are portrayed externally, which is not a healthy image. Great offers and deals easily obtained by the customer results in habit to always pay less whenever they visit the salon. This attracts the wrong type of clientele which does not contribute to the progress of the salon. With the offers thrown at the clients, employees do not hit their targets in order to get a commission; this also leads to unhappy staff.
* Opportunities: Headmasters have a great opportunity to expand their business globally either by opening new salons or by franchising. Currently, they have 8 new salons open in U.K. In order to generate a corporate image, Headmasters have the opportunity to collaborate with their competitors in order to get a higher market share. For instance, uniting with Paul Mitchell to raise funds for children at the Great Ormond Street Hospital. Creative Head (hair magazine) has awarded Headmasters as ‘The Most Wanted Website of the year 2012’. This gives them great advantage to spread their wings into the social media for marketing and PR. Even though the offers and deals available to customers do not boost the profits of the business but on the other hand it can be a breakthrough with the recession.
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* Threats: Headmaster have been in the hairdressing industry for only 30years compared to their long-lasting competitors Vidal Sassoon (50 +years) and TONI&GUY (49 years).
With the economic condition being so unstable at the moment, the demands for more ‘home care’ products like colourants are increasing drastically. Mobile hairdressers tend to offer a cheaper price at the comfort of your own home with the expectation of the same professionalism in the salons. New entrants can provide with advanced hair equipments, fresh ideas and can prove to change the existing trend swiftly.
Our main goal is to pick up the growth of sales in Headmasters Fulham Broadway and ensure that it has a positive and continuous consistency in its profits. To examine the different external factors that could affect the business is important because trends are dynamic in nature and it is prone to constant transformation. Especially in the fashion industry trends always come back but it is crucial to have a strong foundation of the new current trends and the most popular hairstyles.
Political factors: the political factors that affect hairdressing in general would be the government legislations and policies. Hairdressing is a type of business where skills are developed at a young age of 13 years and constant training and hardworking hours are a necessity. The restrictions on child employment in the UK allow them to work only a maximum of 12 hours per week during term time and during school holidays only 25 hours per week. This poses to be a slight disadvantage in intensive training which requires 8 hours a day per week including assisting in the salon. The national minimum wage which is £2.60 for apprenticeship and £3.68 for 16- 17 years old is not well deserved for a job that requires constant activity within a salon environment. And this factor creates a huge discouragement for the hard working young assistants. Hence creates a shortage of assistants, which leads to unhappy stylist and clients, resulting in low monthly income.
To tackle this issue, awareness should be developed at a young age in the minds of aspiring hairdressers and encouragement in every aspect should be showered at them. A strong education team will generate a strong future hairdressing career. Headmasters should participate in having a weekly in-house training, where the assistants do not have to attend hairdressing school. But instead have them trained 2 days in a week in the salons where they can experience the reality and the atmospheric pressure within the salon. Having a hands-on approach in the practical world would help them grow as better hairdressers.
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Economic factors: with regards to the economic impact on the hairdressing industry, key areas of concern would be inflation rates, interest rates and general economic conditions. Hair-care is usually categorized as a luxury product; therefore, when there is an economic downfall, the number of clients is likely to reduce. Where individuals have less disposable income due to high inflation levels, they will be less inclined to spend money on luxuries. But on the other hand, every individual needs to get their hair cut at some point. The number of visits to the salon would reduce but it will not cease them from visiting the salons. At this time of recession, offers and deals are at a high rise to entice them to visit the salons and pay for the same premium service but at a lower price.
As seen in graph 1: in the period of November- December – January, the sales are the highest since it is Christmas time, a time for presents and giving. More money is spent on retail as gifts and with the Christmas holidays and getaways, customers visit often to get the fresh cut and colour. With New Years in the corner, the demand for women to get their hair put up in a fashionable hairdo and prepping for the event is very high.
Therefore, concentrating more on the weaker months of the year which are mid January- February- March where discounts of services are offered. Keeping in mind that every client is advised to come every 6 weeks for a haircut and 8 weeks for a colour, so if most of their visit is in mid December their next visit should be mid January. You can predict their visiting patterns which are similar in general. In order to get new clients in quieter months, half price vouchers should be distributed to new clients and their new recommended friends.
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Socio-cultural factors: the area of socio-cultural factors presents a much more positive outlook in the hairdressing industry. The analysis considers demographics such as age, gender and income as well as general interest in always looking immaculate. The hairdressing industry in this area is blooming. With the increase pressure and craving lucrative careers, women want to look perfect. Not only does the pressure lie in young women but now men have started adapting to colouring their mane and grooming themselves every 4-6 weeks. These changes have lead to substantial diversification and new opportunities within the hairdressing industry.
Headmasters Fulham Broadway took a general survey of frequent visits to the HM website and the results are shown in Exhibit 1.
Technological factors: technology developments may not appear to be quite relevant in the hairdressing industry. The only essential tools and equipment needed are a good pair of scissors, hairdryer, brushes and clips. But as established earlier, clients are becoming more image conscious and keep up to fashion trends. They become more experimental with their hair colour and styles. As such, there is a growing need for hair salons to have the latest technologies and equipment to ensure and meet clients unexpected needs. However, it becomes clear that hairdressing is a clearly a skilled job and the required tools are related to the high level of expertise.
Legal factors: health and safety regulations are both plentiful and restrictive in the hairdressing industry. It is necessary for all hairdressers and hairdressing salons to comply with the basic health and safety regulations. All hairdressers have to be suitably qualified to work with a pair of scissors before they can even deal with a client.
Insurance will have to be maintained and all necessary employment law provisions complied with.
Environmental factors: this area can lead to the success or failure of any hairdressing salon. In this case, all dangerous equipment should not be left on the salon floor and should be kept somewhere safe, for instance, colourants, electrical equipments, sharp objects, hair shavings should be swept off immediately, salon floor should be clean and tidy to avoid any mishaps, spillages should be cleaned immediately and clean towels should be supplied and available at all times.
A clean and safe environment for customers portrays a lot about the business as a whole.
Service/ProductMarket | Existing | New |
Existing | Market Penetration * Increase sales to the existing loyal clients * Penetrate deeper by recommending new techniques and services they have never done before. * For instance, if a client has been visiting the salon only for cuts for the past 5 years, recommend her to have a colour or a treatment. | Service/Product Development * New services with the changes in trends should be informed to existing clients. * Always keeping the staff informed and updated to all the latest trends and colours for the season. |
New | Market Development * Entice existing clients to recommend their friends who haven’t been to Headmasters before. | Diversification * New services to cater to new clients. * For instance, have a booklet of the different hair cut and colours that are available in the salon for men. * Have special deals for Tourists who visit. Since Headmaster is situated right next to Chelsea Football stadium, plenty of tourists hover around the vicinity. |
Headmasters has been in the hairdressing industry for 30 years, they has been profitably growing within the U.K. as well as internationally. Since they are dispersed around Europe it is fairly difficult to have one leader for the entire organization. Hence they have allocated salon consultants and managers for each salon.
Headmasters in Fulham Broadway has had a loyal manager for the past 7 years until March 2012. Samantha has a clear view of what the salon should be like in the next 6 months from March 2012- September 2012.
* Her Vision: to build a strong loyal team within the existing staff
* Create a healthy and happy environment for the staff
* Seeking for the basic needs and ambitions of the staff
* Ensuring constant compliments on good work and encouragement
* Building a transparent rapport with each and every staff member
* Standing at the same level of understanding with employees
* Avoiding to create a ‘manager’s barrier’ with the staff
* Setting weekly targets and rewarding them for their efforts
* Her operational process in achieving these goals: creating an atmosphere with the staff where she is a friend and not a manager, but making you aware of the fine line between the two.
* Spending time with the staff after hours every Saturday, just to get to know the staff better. She has noticed when the staff unwinds; they become more honest and feel free to express themselves more. In this way she would know what their issues or ambitions are in order to grow and build their skills as a hairdresser.
* Monthly personal appraisals are booked in advanced. To evaluate your progressing within the salon and the different ways to help you hit your targets, get promoted and get paid more.
* Reward systems work very well with the staff. This boosts their confidence and they try even harder to achieve set goals.
* Sam ensures that she is always available when anyone wants help with their client or on a personal reason. She makes it very easy to talk to her about anything. This is so important to build with a staff of 17.
* She guarantees that everyone will be promoted in 6 months. She tries very hard to push and motivate the team constantly.
These are all the values a leader should have. These are all the values that the previous manager lacked and therefore resulted in poor profits.
Since Sam started as a manger in Fulham Broad way, from an employee’s point of view the staffs are much happier than they were a few months ago.
She combines her confident spirit as an individual with the team that lacked motivation and drive to succeed and turned their expectations around positively. With her constant perseverance and positivity, the team including new staff members is uplifted and performs better.
Quote from an employee in Headmasters Fulham Broadway, Giammarco Amoroso says, ‘She inspires me daily and I look forward to working in the presence of her every day. If I ever become a manager I would want to possess similar qualities that of Sam.’
Quote from a loyal client of 5 years, (preferred not to be mentioned) says, ‘Since Sam started managing this place, I have noticed a face lift in each and every staff member’s face. This is a great place to come and chill out.’
With the aid of all the above strategic models, the goal to hit the monthly target and the process to continue to build a strong foundation for the team, Headmasters Fulham Broadway would stand out from their local competitors. This would result in high profits, a loyal team, lower percentage of turnover, a better client base and higher levels of loyalty in the client. With the assistance of Sam’s dedication and commitment towards the progress of the salon, the employees are happier, the clients have a great degree of satisfaction with every service and the shareholders are pleased.
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