Business Investigation Report

A business analyst prepares this report to discuss about how Sui Hair Salon in Melbourne can implement new technologies that will benefit the salon’s business.

Running head: BUSINESS INVESTIGATION REPORT
Business investigation report
Name of the Student
Name of the University
Author Note

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Table of Contents
Executive summary....................................................................................................................2
Introduction................................................................................................................................3
Business opportunity..................................................................................................................5
Technology Solution..................................................................................................................8
Current System Integration........................................................................................................9
References................................................................................................................................12
Appendix - A............................................................................................................................14

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Executive summary
A business analyst prepares this report to discuss about how Sui Hair Salon in
Melbourne can implement new technologies that will benefit the salon’s business. The
management of the salon has missed to identify the salon’s absence on the digital world. The
existence of Sui Hair Salon on the digital world will hugely increase the revenue of the salon.
Sui Hair salon lacks a proper digital interface and market for client interaction. The website
of the salon provides an overview of the services available of the salon. The website of the
salon is not an interactive platform. The salon lacks potential followers on its social media
handles. The salon needs an exclusive scheme to promote itself on the digital world to draw
more customers and to gain national exposure. The solution suggested to Sui Hair salon is to
launch an online app for the salon. The app will enhance user interaction and help expand its
business beyond the locality. Offers and schemes will attract new customers and will help in
retaining loyal customers. Such a platform will encourage users of all age. Working
individual will benefit from the application. The Su Hair Salon, Melbourne can rapidly
increase its customer base size, customer satisfaction and company revenue.

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Introduction
The rapidly aging demographic and the internet has opened a huge market for the
beauty service industry. In Australia, the industry has expanded over the past five years. Hair
dressing services under beauty services includes a wide range of services like hair-trimming
and cutting, hair coloring, styling and grooming of facial hair. The number of hairdresser as
of the year 2017 May is 54,400 and the number is expected to grow to nearly 58,200 by 2022
May (aisc, 2019). The current employee analysis shows an upward trend for growing number
of hairdressers. Hairdressers cover 58% of the total number of professionals in the beauty
service industry. The global market in the year 2016 had a value of USD 160 Billion. Data
report by WHO shows an expected rise of 16% in 2050 from a 7% recorded in 2000
(Grandview, 2019). From such records, it is clear that the hairdressing sector of beauty
service industry is a booming sector in recent times and will continue to expand in the future,
in Australia as well as globally. Your business Sui Hair Salon Russell has the competitive
edge because of your pricing policy and unisex customers. The ambience of the salon plays
an advantage too. The locations of the salon helps in drawing customers. Products used by
your salon is of the market standard. The various kinds of hair services provided by your
salon is well appreciated by the customer. The average age of the customers visiting your
salon is of 30 years. Customer service plans by your salon needs to be modified. Senior
customers, those above the age of 50s faces problems of visiting the salon. Improvement in
service for such customers should be considered by your salon. A technological solution for
the current problem will expand the customer base of your salon. Thus, the salon will see rise
in revenue.

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Figure: 1.
Source: (Created by Author)

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Business opportunity
The expanding market for beauty services in Australia provides your salon with
multifold opportunities to grow its business. SWOT analysis of Sui Hair Salon.
Strength
 Strong unisex clientele of the salon
increases the salon’s popularity.
 Plethora of hair service choices for
customers to choose from.
 Moderate pricing.
 Central location of the salon draws
high volume of customer.
 Exclusive products.
 Well trained staffs to cater to the
customers.
 Open all through the week with
extended hours on Friday.
 Immaculate appearance and
excellent staff behaviour.
 Multiple store location across the
city.
Weakness
 Ineffective staff management.
 Less number of young staffs
compared to older ones.
 Agility issues of the old staffs.
 No new business model.
 Inefficient use of social media.
 Poor marketing strategies.
 Inadaptability of older staffs with
new machines to provide services.
 Appointments only through calls.
 No online facility.
 No national exposure and present.

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 New promotion schemes and offers
for unique customers.
Opportunities
 Implementation of new hair trends
and hair-styling techniques.
 Introduction of new product lines.
 Introduction of eponymous product
to attract new clients.
 Introduction of more stores in other
locations.
 Using local celebrity for promotion.
 Increasing fan base on social media.
 Business partnership.
Threat
 New salons in the vicinity.
 Home services provided by other
salons and independent apps.
 Discounting offered by other salons.
 Heavy cost for well trained
technicians.
 Easy to replace business model
which will lead to opening of new
services.
 Negative customer reviews.

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Table 1.
Source: (Created by author)
The SWOT analysis identified availability of multiple opportunities for your business.
There is a major opportunity for your salon to invest in digital marketing. As the salon has
occupied a minimum place in the digital market, work and expansion need to be done in the
digital sector to attract customers from all spheres. It will increase the customer base and a
larger audience can be targeted. All the salons use one particular website. On analysis of its
social media handles, it can be said that the follower base is less and the official handle of the
salon is not being able to attract good amount of regular active followers (Rosemann and vom
Brocke 2015). The website of the salon is handy but provides no platform for customer
interaction. An interactive platform will enable better customer service and satisfaction
(Ascarza 2018). The ratings and reviews will gradually increase. The competitors in the
market are well equipped with such schemes, so to compete in the market certain changes and
improvement needs to be incorporated.

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Figure: 2.
Source: (Created by Author)
The fishbone analysis shows that the problems faced by the salon is because of the inefficient
use of digital technology. The problems can be addressed by implementation of new
technologies.
Technology Solution
The salon needs to invest in technology. The other competitors in the market is well
versed with technology. The beauty service sector is constantly expanding and exploring
fields in technology. Your company to match up with its competitor needs to implement
changes in some of its approaches.
I recommend that your salon should change its marketing strategy. To expand the
business and attract more customers, the management should start investing in the digital
market. Introducing the market in the digital space will enhance its popularity and expand the

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customer base (Dong et al 2015). Launching an app of your Sui Salon which runs all through
the day will be beneficial. The app should be well designed and user friendly. Options like
home salon service, priority booking, appointment booking and online market or selling any
hair care products (Tseng 2016). The house salon service will tremendously increase
consumer base because customers above the age of fifty can easily avail such services (Kim
and 2018). New services can also be included for house salon. Your salon on launching its
own line of products can easily brand and market the products on its app. The online app will
your salon a leader in the market. The salon will get national exposure. Proper advertising of
the app on social networking platform will help increase its user base (Chang 2016). Loyal
customers can be given special benefits. Cashback and coupons can be introduced. The app
can launch and host advertisements to earn extra revenue. These will lead to change and
alteration of activities. Customers staying on the outskirts of the city, aged individuals will
be added to the customer base increasing the number of customers. Customer user experience
will be altered. The customers can easily book and cancel appointments. They can easily
select the services they want to experience. The process will be smooth and easy. Customer
satisfaction level will greatly impacted by such a service. The hospitality and customer
attendance will remain the same.
Current System Integration
The part of your business our recommendation addresses is the implementation of an
app for your salon. The app will provide details for all the salons of Sui Salon. Easy
appointment booking and cancel will create to hassle for the customer. The diagram below
indicates the way your business will benefit. The customer can indulge in house salon
services. Credit points, cashback offers, discount offers on the app will attract a huge number
of customer. Customer service activities will be highly impacted by implementation of the

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app. Your salon will be able to generate huge profits. An online shop on the app will gain a
lot of attention (Uhl and Gollenia 2016). Your salon needs to market the app on social media
platforms. The social media handles of your salon should be regularly updated. The clients
using the salons services can be asked to promote the app and credit points can be awarded to
such customers (Noe et al. 2017). Customer experience will change completely and number
of loyal customers will increase (Hill and Alexander 2017). In this process manual booking
and cancelation of order will be eliminated. The entire process will be automated. Number of
staffs and services will not change. Your salon will be a better performer in the market.

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Figure: 3
Source: (Created by Author)

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References
aisc (2019). Hairdressing. [online] National Industry Insights Report. Available at:
https://nationalindustryinsights.aisc.net.au/industries/personal-services/hairdressing
[Accessed 3 Apr. 2019].
Andreassen, T.W., Kristensson, P., Lervik-Olsen, L., Parasuraman, A., McColl-Kennedy,
J.R., Edvardsson, B. and Colurcio, M., 2016. Linking service design to value creation and
service research. Journal of Service Management, 27(1), pp.21-29.
Ascarza, E., Neslin, S.A., Netzer, O., Anderson, Z., Fader, P.S., Gupta, S., Hardie, B.G.,
Lemmens, A., Libai, B., Neal, D. and Provost, F., 2018. In pursuit of enhanced customer
retention management: Review, key issues, and future directions. Customer Needs and
Solutions, 5(1-2), pp.65-81.
Chang, J.F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
Dong, Y., Liao, H., Chuang, A., Zhou, J. and Campbell, E.M., 2015. Fostering employee
service creativity: Joint effects of customer empowering behaviors and supervisory
empowering leadership. Journal of Applied Psychology, 100(5), p.1364.
grandview (2019). Hair Care Market Size, Share | Global Industry Trend Report 2018-2025.
[online] Grandviewresearch.com. Available at:
https://www.grandviewresearch.com/industry-analysis/hair-care-market [Accessed 3 Apr.
2019].

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Hill, N. and Alexander, J., 2017. The handbook of customer satisfaction and loyalty
measurement. Routledge.
Kim, T.Y. and Lee, S.N., 2018. The Mediating Effect of Job Satisfaction on the Relationship
between Internal Marketing and the Customer Orientation of Employees in the Beauty
Service Industry. Asian Journal of Beauty and Cosmetology, 16(4), pp.555-567.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Rosemann, M. and vom Brocke, J., 2015. The six core elements of business process
management. In Handbook on business process management 1 (pp. 105-122). Springer,
Berlin, Heidelberg.
Tseng, S.M., 2016. Knowledge management capability, customer relationship management,
and service quality. Journal of enterprise information management, 29(2), pp.202-221.
Uhl, A. and Gollenia, L.A. eds., 2016. A handbook of business transformation management
methodology. Routledge.

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Appendix - A