Business Analysis and Risk Management

This assignment explores the importance of business analysis before starting a venture. It highlights the significance of primary and secondary research in identifying potential risks and developing mitigation strategies. The document emphasizes that neglecting analysis can lead to resource wastage, employee dissatisfaction, and ultimately, business failure. It stresses the need for proactive risk management through effective cash flow control, expense management, and strategic planning.

CONTEMPORARY
THEMES

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
A). Summarising the business in terms of industry, location and target customers...................3
B).Name of the business.............................................................................................................4
C).Visual identity........................................................................................................................4
D).Creating Value.......................................................................................................................4
TASK 2 ...........................................................................................................................................5
TASK 3 ...........................................................................................................................................6
TASK 4 ...........................................................................................................................................6
TASK 5............................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Small business is the organisation where less employees work together to achieve a
common goal and objective. This type of business can be introduced after analysing the market
conditions. This analysis can be done by comparing the present and past situations prevailing in
the market. The identification of the business opportunity is to be done after knowing the needs
and demand of the potential customers. This report will consist of all the necessary topics related
to commencing a new business, factors which can affect the working of the business, type of
research and the various laws which will govern the rights of the employees(Baden-Fuller and
Morgan, 2010).
TASK 1
A). Summarising the business in terms of industry, location and target customers.
The new business organisation which is going to be introduced in the market is the Hair
Salon plan. The new business plan will help the customer in providing higher satisfaction to the
customer. As the business plan will deal in good quality products and services, suitable and
appropriate atmosphere at affordable price. It is seen that the health and beauty industry is at the

rapid growth stage. So introducing this type of business will be good opportunity for the
entrepreneur or owner of the business(Wong ed., 2013).
Industry- The business plan for the heath and beauty industry is very much in demand
by many of the young female customer's. For introducing the new business fund, employees,
knowledge regarding customer needs will be required. Business plan will be introduced in Perth
city which is in UK. The city has approx 47,190 citizens the focus will be on serving the
customers in the best possible manner. Marketing and other strategies will be applied to know
more about the preferences of the customer(Chua and Rahman,2011). The decided location will
be very much suitable for this type of business as the city has a good population of middle and
high income class people. Before commencing the business a deep study of the market will be
done using the canvas model of business. As this will help in providing framework for
continuous learning and also for brainstorming. This model will also help in making the services
and products of the salon at affordable prices for the customers.
B).Name of the business
Name for the business will be Expert Hub Beauty Salon. As the salon will have experts
and professionals which will serve the customers. Using this name of the business will create a
good and positive image in the mind of the customer's. Expert Hub salon will be provide
desirable services to its customer's and will also increase the satisfaction level of its valuable and
potential customers(Collins, 2012).
C).Visual identity
The visual identity of the business can be created by using proper advertisement
techniques. The need of the potential customers can be known by gathering relevant and
appropriate information. The benefits and usefulness of the products and services can be easily
known by the customer with the help of adequate promotional strategies. The visual identity will
help Expert Hub in attracting more and more customers.
D).Creating Value
Price and services provide to the customer will help in creating value in the mind of the
customer. The products and services given to the customer will include – hair cuts, hair colour,
curling, manicure, polish, European facial etc. including all these services there will also be
products for enhancing the beauty of the customers. New business idea will definitely help in

creating value for its customer as the plan is made after analysing the demand of the customer's.
By doing this Expert Hub will be able to get positive feedback from its happy customers. This
will directly help in attracting more and more customers for Expert Hub Salon. There are some
tips which can be used by Expert Hub for creating and improving the customer value-
Social Value- This value can be created by giving proper attention to the customer and greeting
them with a smile. Healthy relationship with the customer can also be build up by the employees
of Expert Hub(Haas III and et. al., 2015).
Environmental- By providing good services and products to the customer brand image can be
formed. Proper use of resources can be done to keep environment neat and clean.
Equality- Every type of customer can be treated in the appropriate manner irrespective of its
paying capacity.
TASK 2
Market research- Market research for Expert Hub will be helpful in building a good
competitive environment in the market. As the competitors strategy will be easily known by the
organisation. After doing market research the satisfaction level of the customer can be
increased(Williams, 2011).
Primary research- This type of research generally involves investigating the demand of
the market by doing field survey and interview. In context to Expert Hub Salon primary research
will be very much beneficial as with the help of this exact need and demand of the customer will
known. This will make Expert Hub different from its competitors as the place for introducing the
business plan can also be known.
Secondary research- The past data can also be used by Expert Hub for analysing and
interpreting various things. Using this type of research will save the time and cost of the
organisation. As the information can be easily gathered from some other sources(Mason, C.M.
and Harrison, 2015).
Qualitative research- Qualitative research will be done using pictures, words and will
help in knowing the behaviour of human and society. So Expert Hub can commence a new
business with the motive of attracting a large group of customers. As this type of research will
focus on understanding the social values and beliefs of the customers. This can be done by
conducting interview of the potential customers. The customer satisfaction can be increased in
the optimum and efficient manner.

Quantitative research- This type of data involves statistical and mathematical data
collection methods. In this data is collected by observing various facts and figures and final
conclusion can be drawn by Expert Hub Salon. If the new business needs to know the exact
number of potential customers than quantitative research can be used before starting a new
business. The income capacity and the interest of the customers can also be known.
So Expert Hub can make use of primary research for knowing the need and interest of the
customers. This research will provide more accurate answers to the problem. The level of
competition can also be faced by Expert Hub Salon and competitive advantage can be achieved.
TASK 3
Equality law- According to this law organisations are not allowed to discriminate their
employees in the basis of age, disability, gender, race, etc. This law helps in safeguarding the
interest of the employees working in the organisation. The chances of discrimination and using
unfair means for conducting the work of the organisation can be reduced. The employees of
Expert Hub Salon can take this law into consideration and problem of favouritism can be solved.
Equality law will be beneficial in providing equal rights and opportunities to the employees of
Expert Hub. If this right is not taken into consideration than the employees will get demotivated
and their productivity will get affected(Rossi,2010).
Diversity law- This law will help the organisation in coping up with difficult and
challenging situation at the workplace. Diversity law will also help in making use of new and
innovative techniques for improving and enhancing the business. By using this law the chances
of risk and errors can be reduced. Level of risk and uncertainty can also be overcome this is
because better plans can be made by the organisation for the future and goal will be easily
achieved.
Expert Hub can focus on selecting qualified and trained employees for its business.
Selecting these type of employees will lead to the growth of the business and employees will be
able to serve their customers well. As these employees will have special skills and talent to
satisfy their customers in the best possible manner. For growing the business of Expert Hub the
focus can be on selecting experienced and skilled employees. As the cost and time of the
organisation can be saved in the appropriate manner and organisation also needs to take into
consideration the rights of its employees. Using diversity law the competition level can be

handled by the new business. Expert hub will be able to make new plans to increase the market
share and to attract more and more customer's(Selart and Johansen,2011).
TASK 4
Ethical dilemma is the problem faced by the organisation in the process of decision
making. In some cases organisations faces a dilemma in choosing between what is right and what
is wrong. If wrong decisions are taken by the organisation than it will directly cause loss to the
company. It is seen that the organisation is facing some internal issues which is affecting the
work of the company. The major issue is that employees are facing discrimination and
harassment by the management of the organisation. Due to this employees are not willing to
work and their productivity is getting affected. Since the company has a good opportunity to
promote its business on a bigger platform. This opportunity will save the cost of the organisation
as the promotion will be done at discounted rate.
This dilemma can be solved by motivating the employees and solving the problem of
discrimination and bullying. To overcome this problem company can make us of various laws
which will protect the rights and interest of the employees. Management can make new plans and
polices to safeguard the interest of the employees and the disputes and conflicts among the
superior and subordinate can be solved in the effective and efficient manner. Value can be
created in the mind of customers and employees by managing each and every task of the
organisation(Storey,2016).
Equality law must be followed by the organisation as by using this law the employees
will have a sense of belongingness towards the organisation and towards their work as well. If
the employees are satisfied with the work than they will directly help improving the performance
of the employee. Since the company is having a very good opportunity to enhance its business is
employees will help in doing so. As risk will be less because the employees will be satisfied with
their work and will contribute in the success of the organisation. Employees can be given
monetary incentives so that they perform well. Doing this the customer will be satisfied and the
organisation will be successful in creating the value in the mind of customers in appropriate and
desirable manner.

TASK 5
Business assets- These are the property and equipment of the business. Assets can
include machinery, plant and any other thing which is tangible and has a market value. Business
assets are generally purchased to get the work done in the organisation in sequential and proper
order. In context to Expert Hub its assets will be the tools and machines used for doing the hair
cut, manicure or using the beauty products(Suri, 2011).
Business liabilities- These are the financial value of the business in the market. This
include money and other financial debts raised by the organisation during the financial period.
Liabilities for Expert Hub will its debt transactions done by the company.
Expenses and gains- These are the money incurred by the organisation and the profit
received by the organisation from its customers. Expenses for Expert Hub will be the installation
and setting up cost which is done at the initial stage or before introducing the business in the
market. On the other hand gains will be the money received by satisfying the customer and by
increasing the number of customers. Gains can also be increased by providing discounts to the
potential customers.
Plans to avoid the problems of cash flow for the business can be fixed and variable
expenses can be managed by Expert Hub. This will lead to managing the cash of the
organisation. The transactions of the company can be managed by the experienced person or
accountant of the organisation. This will help the organisation in making better plans for the
future and the expense can be saved(Weber and McGivern, 2010).
CONCLUSION
From the above discussed report it can be concluded that if prior analysis in not done
before starting a business than there are high chances of failure of the business. The resources of
the organisation will be wasted and the employees will also not be able to give their best at the
workplace. So for analysing the business primary and secondary research can be done by the
owner of the business. By doing this the effects of risk in the business can be overcomed in the
effective manner.

REFERENCES
Books and journals
Baden-Fuller, C. and Morgan, M.S., 2010. Business models as models. Long range planning.
43(2-3). pp.156-171.
Chua, F. and Rahman, A., 2011. Institutional pressures and ethical reckoning by business
corporations. Journal of Business Ethics. 98(2). pp.307-329.
Collins, D., 2012. Business ethics: How to design and manage ethical organizations. Hoboken^
eNJ NJ: Wiley.
Haas III, W.M., and et. al., 2015. Labor and Employment Law. Mercer L. Rev.67. p.91.
Mason, C.M. and Harrison, R.T., 2015. Business angel investment activity in the financial crisis:
UK evidence and policy implications. Environment and Planning C: Government and
Policy. 33(1). pp.43-60.
Rossi, C.L., 2010. Compliance: an over-looked business strategy. International Journal of Social
Economics. 37(10). pp.816-831.
Selart, M. and Johansen, S.T., 2011. Ethical decision making in organizations: The role of
leadership stress. Journal of Business Ethics. 99(2). pp.129-143.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Suri, H., 2011. Purposeful sampling in qualitative research synthesis. Qualitative research
journal. 11(2). pp.63-75.
Weber, J. and McGivern, E., 2010. A new methodological approach for studying moral
reasoning among managers in business settings. Journal of Business Ethics. 92(1).
pp.149-166.
Williams, S.L., 2011. Engaging values in international business practice. Business
Horizons.54(4). pp.315-324.
Wong, P.T. ed., 2013. The human quest for meaning: Theories, research, and applications.
Routledge.