Spectrum Pallette Business Plan Analysis

This assignment analyzes a business plan for a new beauty salon called Spectrum Pallette. It examines the prepared budget, highlighting expenses like rent, equipment, advertising, and employee costs. The analysis also emphasizes the importance of market research, understanding current trends, and complying with equality and diversity laws in the competitive beauty industry.

Business case Study

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
The way in which business is going to be operated.....................................................................1
Name of the business...................................................................................................................2
Visual identity..............................................................................................................................2
Values for Promotion...................................................................................................................2
TASK 2............................................................................................................................................3
Reason to conduct primary research............................................................................................3
Reason to conduct secondary research........................................................................................4
Reason to collect quantitative research........................................................................................4
Reasons to collect qualitative research........................................................................................4
TASK 3............................................................................................................................................5
Resolution of dilemma and its justification.................................................................................5
TASK 4............................................................................................................................................5
The way in which equality and diversity is going to be complied while selecting employees.. .5
Rights of new employees.............................................................................................................6
TASK 5............................................................................................................................................6
Assets, liabilities, gains and expenditures of the business...........................................................6
Budget to avoid cash flow problems............................................................................................7
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Setting up small business is done after a proper business planning for execution of the
business to achieve success (Gilding, Gregory and Cosson, 2015.. ). All the entrepreneurs
formulates proper business plan in appropriate manner by considering all the factors to attain all
the targets and position its image in the competitive market. This business report is based on new
business which is on process to established at Notting Hill Gate, London, UK. The new start up
is Spectrum Pallette which is a Salon to be introduced in the city of London.
This business report includes various topics such as set up of small business, market
research to develop business, ethical dilemmas faced regarding the business, equality and
diversity laws. It further includes the assets, liabilities, expenses, incomes and budget required
for conducting market research is also discussed.
TASK 1
The way in which business is going to be operated
A Salon is going to provide its services at Notting Hill Gate, London, UK. It is a type of
beauty salon. The objective of such business is to provide experienced services by attracting
maximum clients and achieve a competitive share in the dynamic market place. This kind of
business is concerned with providing relaxing services to various customers (Chang, 2015). As it
is a start up it has targeted the small segment of middle and high class clients as clients in
locality of London to deliver the exceptional, relaxing and rewarding services through various
technical skills. Business canvas model of the start up business is as follows:
Consumer segment
 Small
segment of
middle and
high class
clients of all
age groups.
Key activities
 Relaxing,
rewarding,
rewarding
services by
technical
skills.
Cost Structure
 Marketing,
advertisement
costs
 Hiring new
employees
 Purchasing
salon
equipments
Revenue streams
 Provide attractive
packages and
services to
generate revenue
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Key Partners
 Investors
 Hairstylists
Key resources
 Funds for
capital costs
Channels
 Online
marketing
 Advertisements
 Pamphlets
Customer relationships
 Personal
assistance
 Automated
services
Name of the business
The name selected for the Salon is Spectrum Pallette which provides the exceptional,
relaxing and rewarding services through various technical skills according to the preference of
the customers. Various kinds of services are offered to different type of customers as per their
preferences. This business will provide services related to the beauty care.
Visual identity
The logo of the Spectrum Pallette is as follows:
The logo shows the identity to the salon which provides distinct beauty services with attractive
packages.
Values for Promotion
The owner of Spectrum Pallette formulates values for future which help him to promote
its business in the competitive market (Hawking and Sellitto, 2015). For the new start up
business it is very essential to create values for building a positive and good image in the market
and can change the perception of various customers. The values which Spectrum Pallette is
willing to formulate includes:
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 Social: This type of value plays crucial function for the society. A new start up works to
comply the values, beliefs as well as values of the locality where they plan to launch the
business. It helps in building a good image by attracting large number of people. The
Spectrum Pallette plans various strategies to adopt the culture of Notting Hill Gate for the
purpose of promoting business.
 Environmental: All the businesses needs to understand the environmental factors. For
start up business it is mandatory to follow the environmental compliances related to save
water, air, electricity, etc. Spectrum Pallette has planned its strategies for contributing
some proportion of its profits for environment safety. Such step will help to successfully
establish the business in the selected locality.
 Equality and diversity: Such terms are used for defining values in the society. These
helps in promoting equality and defining diversity to sustain in the dynamic market. The
Spectrum Pallette is creating them by ensuring that all the employees are equal for
promoting opportunity and positive values are diversed to promote the human rights.
TASK 2
To plan the practices of the start up business it is very necessary to conduct market
research for the purpose of collecting the appropriate required information to formulate the
future plans effectively (Kranz, Hanelt and Kolbe, 2016.). Different types of research are to be
conducted to develop the business. Some are the following:
Reason to conduct primary research
Primary research helps in collection of information according to the researchers
requirements. It focuses on the current problems. It is collected for the first time and not been
used by any other person. For conducting the primary research, Spectrum Pallette prepares the
questionnaire for the purpose of collecting accurate information. Such research is used by the
start up to collect and analyse the perception of its customers. It includes following questions:
Questionnaire
Name:
Age:
Contact No.:
Email Id:
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Q1. How frequently do you visit a beauty salon?
A. 1-2 Times a month ( )
B. Several times in month ( )
C. On special occasions ( )
Q2. Are you aware of Spectrum Pallette a beauty salon?
A. Yes ( )
B. No ( )
Q3. Which service do you prefer most ?
A. Hair care services ( )
B. Beauty services ( )
Q4. Do you think the start up can sustain in competitive market?
A. Yes ( )
B. No ( )
Reason to conduct secondary research
Secondary research provide information on the basis of data gathered by any other
researcher for different purpose. Secondary research uses different kinds of articles, websites
newspapers and Journals. Spectrum Pallette will consider secondary research to understand and
analyse the current trends in the market, customers preferences towards distinct services and
competitors strategies to sustain in the market.
Reason to collect quantitative research
Quantitative research helps in providing the relationship between two elements. The one
element is dependent while the another is independent. Such type of research is used by
Spectrum Pallette to analyse the numerical data for uncovering the thoughts, opinions and trends
for solving various problems (Lerch and Gotsch, 2015).
Reasons to collect qualitative research
Qualitative research is used to explore the interactions, processes, practices and systems.
Such type of research helps in understanding factors related to opinions as well as motivations of
customers. Spectrum Pallette conducts such research for analysing the actual and accurate data
for managing day to day situations.
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TASK 3
Resolution of dilemma and its justification
Spectrum Pallette is a new start up business and works to enhance its visualisation.
Promotional technique using website is used as an opportunity to the entity through which it will
promote its operations with discounted rate. But due to some negative points it has been accused
of treating its employees badly. Such mode is selected to increase the popularity within targeted
market but it can affects the brand image and demotivate its employees. The start up has selected
the promotional technique of website to promote its operations and formulated strategies to deal
with the dilemma in appropriate way.
Justification: Such option is selected as it helps in increasing the visualisation to
performing activities such as taking appointments online for enhancing the popularity among the
targetted customers. Case relevant to such situation is as follows:
Case: Mahogany Hairdressing is an organisation where some of the employees are found
guilty for charging the amount for the services not provided. Such organisation provides services
by taking online appointments and home services. Some of the employees were charging high
prices from different customers for different services. The owner was having no information
about it. It was an ethical dilemma for the owners as the competent employees were fired out
who were providing home services and it becomes difficult for the organisation to execute the
further home services for business (Mann, 2018).
Decision: When the employees who were involved in fraud case were fired out, the
company has started giving training to its other employees for providing home services. It was
the great decision taken by owner which set the example in front of competitors and other
employees so that they do not make such mistake in future. Spectrum Pallette owner has taken a
strong decision to follow the social, environmental, ethical and diversity values for promoting its
business.
TASK 4
The way in which equality and diversity is going to be complied while selecting employees
Spectrum Pallette is now a well developed business and has build an image in the
competitive market. It has the ability to employ two of its staff members on zero hour contract.
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The managers of the start up are complying with equality and diversity laws while selecting
employees.
According to Equality act 2010, all the employees are treated equally and get same
opportunities for showing their abilities. The employees are protected from any discrimination at
workplace. Owner of Spectrum Pallette complies with such law to provide equal chances to new
employees for proving their skills.
According to diversity law, it is the duty of the manager to recognise, value as well as
respect difference between employees and should be treated like human beings not as machines.
Spectrum Pallette is working to comply with such law through establishing relationships with
new applicants along with treating them properly at workplace.
For an example, Google is highly concerned with providing good environments and concerned
with equality and diversity values (Schaltegger and Wagner, 2017). The owner of the start up
plans to implement its values alike the Google for providing good working place to its new
employees.
Rights of new employees
Various rights of new employees of Spectrum Pallette are as follows:
 A new employee has the right to get detailed information related to job profile.
 New employee has the right to afford privacy for performing operations according to
their potentiality and skills.
 New employee has the right to get bonus along with incentives as per the employment
contract or agreement.
 New employee has the right to get the fair compensation for the work performed without
any discrimination at work place.
TASK 5
Assets, liabilities, gains and expenditures of the business
To launch a hew start up business in the competitive market it is important for the owner
to acquire the required funds for performing operations as per the planned manner. The owner of
Spectrum Pallette focuses of various elements to operate the business successfully. The elements
are as follows:
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 Assets: Being Spectrum Pallette a new business, it acquires the required assets such as
cash in hand (fees paid by customers in cash), cash at bank ( fees paid through paytm),
equipments, buildings, debtors and many more.
 Liabilities: Spectrum Pallette performs its operations to build an image in the market. Its
liabilities are certain debts which are to be paid in the future time period. Share capital,
creditors are some of its liabilities.
 Gains: Various relaxing and rewarding services are provided to different customers
which helps in acquiring gains in form of fees.
 Expenditures: Advertisement expenses, promotional expenses, maintenance expenses,
salaries to employees and experts are some of the expenditures faced by the Spectrum
Pallette.
Budget to avoid cash flow problems
To launch a new start up business, it is compulsory for the owners to prepare a budget
plan to avoid cash flow problems. The budget prepared by the owners of Spectrum Pallette is as
follows:
Particulars Amount ( In GBP)
Rent of building 5000
Equipments 2000
Furniture 5500
Advertisement expenses 4500
Hiring employees and experts 3000
Total 20000
The above budget plan is prepared by the Owners of Spectrum Pallette for the purpose of
ignoring issues which might be faced by beauty salon in future (Young, 2015).
CONCLUSION
As per the business report it can be concluded that at a time of launching a start up
business, the owners must carefully analyse and understand the current market trends to
formulate a effective business plan. Proper research must be conducted by using the primary,
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secondary, qualitative and quantitative methods. The laws related to equality and diversity values
must be complied by the owners to successfully implement the business operations in
competitive market. Assets, liabilities, gains and expenditures of the business must described
properly and budgets must be prepared to avoid cash flow problems.
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REFERENCES
Books and Journals
Chang, V., 2015. A proposed cloud computing business framework. Nova Science Publisher.
Gilding, M., Gregory, S. and Cosson, B., 2015. Motives and outcomes in family business
succession planning. Entrepreneurship Theory and Practice. 39(2). pp.299-312.
Hawking, P. and Sellitto, C., 2015. Business intelligence strategy: a utilities company case study.
International Journal of Enterprise Information Systems (IJEIS).11(1). pp.1-12.
Kranz, J.J., Hanelt, A. and Kolbe, L.M., 2016. Understanding the influence of absorptive
capacity and ambidexterity on the process of business model change–the case of on‐
premise and cloud‐computing software. Information Systems Journal. 26(5). pp.477-
517.
Lerch, C. and Gotsch, M., 2015. Digitalized product-service systems in manufacturing firms: A
case study analysis. Research-Technology Management.58(5). pp.45-52.
Mann, J., 2018. Beijing Jeep: A case study of western business in China. Routledge.
Schaltegger, S. and Wagner, M., 2017. Managing the business case for sustainability: The
integration of social, environmental and economic performance. Routledge.
Young, S., 2015. Private business and economic reform in China. Routledge.
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