Section A

Resource and facilities management

For the effective stock and inventory control, the spa and salon must have a store room within facility. The inventory that arrived should be stored in that room. Along with this, when a product has taken out of the store room then employee name and the product quantity should be recorded by the management of the salon. This can be done by the use of software which can also be beneficial for the future. Software can keep the details of the products and also check out the automatically the level of expected products for the store room. The information of the products can be used at the time of monthly audits of the store room. Store manager is responsible for all the items which are checked-in and out. This enables the manager and the owner to hold the inventory level for the future (Lymbersky, 2009). Through the software, the, manager will be able to generate projected inventory level for the store room that were checked in or checked out of the store room. This will provide a practical method to the management of salon to track the movement of the inventory. The inventory software will insure the right amount of product which was used for the service performed in the month. This will provide a baseline of the inventory and this method should be used to order more stock of inventory or stop the salon and spa from ordering extra stock of inventory (Glowik & Smyczek, 2011). Along with this, in every month, an audit should be performed in the salon to check the inventory management system. This audit process will provide the data to the manager to address the issues related to the inventory. By measuring actual expense and the projected expense, the owner will be able to monitor inventory very quickly in the salon (Schnaars, 2010).

Section B

People management

There is the responsibility of a manager in the salon to monitor the operations of the salon on the regular basis by measuring the progress report of the salon. If there are any issues found in the management of the salon then corrective actions should be implemented by the manager. The main of the manager is to identify the key member in the salon. After that, roles and responsibility of the employees will be given to them. The board of directors will be responsible to take the major decisions in the salon and they need to look after of the finance part of the company too (Lee, 2009). The general management of the salon will be take care the responsibility of analyzing the business problem during the business operations. They have the responsibility of finding proper solution of those problems. They will also be accountable for controlling and directing the employees of the salon for future development and preparation of the reports (Dentchev, 2009). The role of receptionist will be to keep record of customer information, take payments from the customers, receive clients with cheerful smile and sell the package properly, and attract the customers through telephonic conversation (Marcer, 2012). The aim of the salon will be to deliver the best services to the customers with friendly environment. Professionally experts will provide best spa and salon treatment to the customers. The spa technician will be appointed and they should be able to guide the customers related to the best treatment that will suit them. The organization structure of the spa should be in hierarchy that will attract the customers. The hierarchy of the spa and salon is described in the figure that will depict the organizational structure of the company (Farahmand, 2011). The figure is given below:

Figure 1: organizational structure

(Source: Farahmand, 2011)

Section C

Salon revenue

It is assumed that the spa and salon is new in the market so, it will try to keep the cost low for the customers. The salon will try to penetrate the market through its pricing strategies. In the pricing services, the salon will provide discount and offers to the customers. It will be helpful to attract new customers. But, soon the salon will increase its prices to reach at the breakeven point as soon as possible (Payne & Holt, 2008). The salon will categorized the list of expected cost incurred in the daily activities. The estimated cost will be helpful in for the salon to maintain the flow of the fund. The fund in the salon will used to pay in renovation, construction of room, carpeting, sales counter, décor, display fixtures, lightening and painting. The salon will also buy inventory, cash registers, computers and inventory management system. The administrative cost will include the salary of the employees and the office expenses along with the electricity and water expenses for the salon (Gruca & Rego, 2009).

It is important to monitor the status of the performance of the salon for the future growth and revenue. The monthly review and records should be done on the monthly basis. The salon is based on the assumption of the habit of spending of customers; grow of the population in country and the economy of the country (Joshi, 2009). It is expected that the suppliers will always supply the inventories to the spa in future at the fair prices to maintain the current margin of the salon. There is one more important thing for the salon that salon should hire the professional hair experts at fair and reasonable salary (Hoskisson, 2009).

Summary of findings and recommendations

Hair and beauty salon is a very important part of the industry across the world. It is expected that this industry will grow in the future in this sector. Now, there is hair expert in this industry. So, the industry is continuously growing in the last two decades and will grow continuously in future. Planning is very important to keep record off inventory, to provide roles and responsibilities, and to estimate the cost that is to be incurred during the operations. Management planning enables the manager and the owner to hold the inventory level for the future. This provides a practical method to the management of salon to track the movement of the inventory. It is important to review the management policies time to time for development and innovation in the services. There should be audit in every month and that audit process will provide the data to the manager to address the issues related to the inventory. In the part of people management, the role and responsibilities should be defined clearly by the managers. The general management of the salon will be take care the responsibility of analyzing the business problem during the business operations. They have the responsibility of finding proper solution of those problems. The aim of the salon should be to deliver the best services to the customers with friendly environment. The employees should be accountable for controlling and directing the operations of the salon for future development and preparation of the reports. Along with this, the salon should focus on penetration in the pricing strategy to attract the customers. The salon should categorize the list of expected cost incurred in the daily activities. The estimated cost will be helpful in for the salon to maintain the flow of the fund.

References

Dentchev, N., (2009), Corporate Social Performance as a Business Strategy, Journal of Business Ethics, 55(4), pg. 397 – 412

Farahmand, N. F., (2011), Organizational marketing planning by management educated managers, African Journal of Marketing Management,  3(8), pp. 178-187

Glowik, M. & Smyczek, S., (2011), International Marketing Management: Strategies, Concepts and Cases in Europe, Page 301, (4^th), New York: Physica-Verlag

Gruca, T. S. & Rego, L. L., (2009), “Customer Satisfaction, Cash Flow and Shareholder Value,” Journal of Marketing, 69, 115–30

Hoskisson, R., (2009), Business strategy: theory and cases. (6^th), UK: John Murray

Joshi, A. W., (2009), Continuous supplier performance improvement: Effects of collaborative communication and control: Journal of Marketing, 73(1), 133–150

Lee, G. K., (2009), Relevance of organizational capabilities and its dynamics: What to learn from entrants’ product portfolios about the determinants of entry timing? Strategic Management Journal, 29, 1257–1280

Lymbersky, C. (2009), Market Entry Strategies: Text, Cases and Readings in Market Entry Management, (5^th) Australia: Christoph Lymbersky

Marcer, D., (2012), Marketing strategy: the challenge of the external environment. (5^th) London, Washington: Sage Publications

Payne, A., & Holt, S., (2008), Diagnosing Customer Value: Integrating the Value Process and Relationship Marketing: British Journal of Management, 12 (2), pp 159 – 182

Schnaars, S., (2010), Marketing strategy: a customer-driven approach, (5^th) Huntington, New York: Free Press

Own management and communication style

žI have honesty in my characteristics and that can be measured by degree of consistency which is present in my actions.

žI have the ability inspire the employees in the organization and to communicate to them about the vision and mission to achieve the set goals for the organization.

žI have the ability to provide them the information about the required resources to improve the performance in the business

Factors influencing working relationships

žThe factors that influencing the relationship of works are as follows:

ØThe culture of the company which relates the manager to the employees.

ØCommunication which influences the relations of the employees with the managers.

ØWages provided by the company at the industry standards.

ØUnions by which employees do not bargain on their own behalf

Role and responsibilities

žThe board of directors will be responsible to take the major decisions in the salon and they need to look after of the finance part of the company too.

žThe general management of the salon will be take care the responsibility of analyzing the business problem during the business operations.

žThe role of receptionist will be to keep record of customer information, take payments from the customers, receive clients with cheerful smile and sell the package properly, and attract the customers through telephonic conversation.

Objectives

žThe aim of the salon will be to deliver the best services to the customers with friendly environment.

žProfessionally experts will provide best spa and salon treatment to the customers. The spa technician will be appointed and they should be able to guide the customers related to the best treatment that will suit them.

Strategies

žPenetrate the market through its pricing strategies.

žProvide discount and offers to the customers.

žUse of inventory software to keep the details of the products and also check out the automatically the level of expected products for the store room.

žThe inventory software will insure the right amount of product which was used for the service performed in the month.

Conclusion

žBy the own reflection, the strategies of using inventory and penetration strategy, salon will get success in the future.

žIn conclusion, It is important to review the management policies time to time for development and innovation in the services.

žPlanning is very important to keep record off inventory, to provide roles and responsibilities, and to estimate the cost that is to be incurred during the operations.

žThe employees should be accountable for controlling and directing the operations of the salon for future development and preparation of the reports.