Business Analysis Report: Kalika Hair and Beauty Salon Ltd - WBL

This report presents a comprehensive analysis of Kalika Hair and Beauty Salon Ltd, focusing on its business environment and management practices. The report begins with an introduction to work-based learning and the salon's background, including its founding and services. Task 1 delves into the business environment, employing PESTLE, SWOT, and Porter's Five Forces analyses to assess political, economic, social, technological, legal, and environmental factors impacting the salon. The SWOT analysis identifies strengths, weaknesses, opportunities, and threats, while Porter's Five Forces examines the competitive landscape. Task 2 explores two key management practices: reward systems and training and development, and their impact on employee performance. The report concludes with a summary of the findings and a list of references.

Work Based
Learning

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
I. Produce a report by including business environment of Kalika Hair and Beauty Salon Ltd. 1
a. PESTLE Analysis....................................................................................................................1
b. SWOT Analysis......................................................................................................................3
c. Porter's five forces...................................................................................................................4
II. Two management management practices within Kalika Hair and Beauty Salon Ltd which
creates impact on performance of employee...............................................................................5
Task 2...............................................................................................................................................6
I. Personal development..............................................................................................................6
II. Professional development.......................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
Work based learning refers to educational strategy which renders students with real time
work experiences where they can apply different academic as well as technical skills for
development of employability (Aha, 2013). Basically, it is a educational course which combines
school and university curriculum with workplace for creation of various learning paradigms.
This report is based on Kalika Hair and Beauty Salon Ltd, which was founded in May 1, 2008
and has been providing their services from last 11 years. They deals in hairdressing and other
beauty treatment. It is micro organisation with around ten employees and around £2 million
turnover. This report comprises of PESTLE, SWOT and Porter's five force analysis along with
two management practices. Furthermore, personal as well as professional development audit is
carried out to acknowledge what is expected.
Task 1
I. Produce a report by including business environment of Kalika Hair and Beauty Salon Ltd.
a. PESTLE Analysis
It is one of the most effective method which is used for analysis of external
macroeconomic factors which creates impact on business within peculiar industry. By making
use pestle analysis along with other factors Kalika Hair and Beauty Salon Ltd can build strategic
management plan which will maximise the opportunity towards growth.
Political factors: It comprises of factors which are derived from government and are in
the form of regulations as well as policies. With respect to Kalika Hair and Beauty Salon Ltd.,
stylists needs to fulfil the licensing requirements. Government is altering rules and regulations
for businesses which makes it difficult for small sectors to make profit and carry out their
operations. Furthermore, government has introduced high taxes for businesses like taxes for
banners and cutouts, this creates negative impact on businesses.
Economic factors: The beauty industry is resistant to economic recessions. They
includes interest rates, inflation rates and general economic conditions (Billett, Harteis and
Gruber, 2014). As Kalika Hair and Beauty Salon Ltd makes use of luxury products which makes
their prices high which leads to economic downturn which results is decrease of number of
customers. Individuals have less disposable income due to intensified inflation levels, they are
less inclined towards spending more money on luxury products. Management of Kalika Hair
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and Beauty Salon Ltd needs to minimise the cost with respect to part time employees and render
effectual services to their customers.
Social factors: With respect to Kalika Hair and Beauty Salon socio-culture presents
affirmative outlook. In this section demographics like wealth and age are taken into
consideration as well as career aspirations. At present scenario young women are opting for
lucrative careers and for this they need to have outstanding looks and they opt for beauty and
hair treatments (Boud and Feletti, 2013). Apart from young generation, older people are also
more tempted to the services rendered by salons. These demand leads to substantial
diversification and renders new opportunities to Kalika Hair and Beauty Salon Ltd like they can
make have health spa, Unisex services and many others.
Technological factors: The beauty industry has been revolutionized by usage of internet.
Any tool can brought through online medium which will enhance the working of employees.
Kalika Hair and Beauty Salon Ltd. Can make use of laser treatments for removing pimples,
galvanic tools can be used for facial treatment, hair iron for hair dressing, head massage and
many other tools and treatments can be provided to customers by which they can attract more
number of customers as well as can provide within sometime only. Apart from this, they can
provide a means to their customers to make appointments by online mediums and also promote
their salon.
Legal factors: Ingredients which are being used within beauty industry must be chemical
free. They must be FDA regulated. Kalika Hair and Beauty Salon Ltd needs to adhere to certain
laws they include Drug and Cosmetic Act (FD&C Act), The Federal Food and many others.
Apart from this, they need to ensure that they follow basic health and safety regulations when
they are treating their customers. There employees must be well educated and must possess
relevant experience. Apart from this, insurance must be maintained as well as essential major
employment provisions must be followed and also need to pay taxes & accomplish complete
paperwork.
Environmental factors:Practically, weather do not create impact on business salon. With
respect to, Kalika Hair and Beauty Salon Ltd, they might use the harmful substances like
cleaning chemicals and massage oils (Boud, 2013). It will bring large opportunities to salon with
emerging needs of natural and organic products. It has been observed that people are ready to
pay extra amount if natural products are being used.
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b. SWOT Analysis
SWOT analysis is considered as a method whereby company or team undertakes analysis
of their Strengths, Weaknesses, Opportunities and Threats. This aids businesses such as hair and
beauty salons to find out the areas where they are more proficient while classifying area which
needs adjustments and developments (Brown, G.A., Bull, J. and Pendlebury, 2013). Therefore,
SWOT analysis of Kalika Hair and Beauty Salon Ltd. Are mentioned below:
Strengths:
 Kalika Hair and Beauty Salon Ltd are using the standard quality products in their salon.
 It has more proficient staff that provides effective hair regaining treatments to clients.
 Also, it have attractive structures and looks into traffic locations.
 They are facilitating extra hour services on Sunday.
Weaknesses:
 Kalika Hair and Beauty Salon Ltd are lack of appropriate hair stylist training and not
good customer care which hinder its profitability.
 Not sufficient number of staff and equipment are available to provide services to
consumers.
 It is situated in traffic location but do not have enough space to for parking.
Opportunities:
 Kalika Hair and Beauty Salon Ltd can introduces new hair styles and beauty treatments in
their salon.
 They can also launch new product lines as well as brands into inventory of the salon's
through which it can expand their business globally. As currently hair colouring trends is brooming so they also facilitates more option and
effective quality of hair colour (Conboy and Morgan, 2011).
Threats:
 If any new salon's can be entered into that area and existing competitors are threats for
the Kalika Hair and Beauty Salon Ltd.
 Salons that facilitates low cost services.
c. Porter's five forces
Porter's five forces were introduced through Porter as well as it examine the external and internal
factors that effect the competitiveness of a industry or products. It involves threats of new entry,
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threats of substitutes, bargaining power of buyers, bargaining power of suppliers and competitive
rivalry. These factors are identified and used to beauty and hair salon industry are mentioned
below: Threats of new entrants: This factors examine the ease through that company enter into
sector. Hair and beauty industry are competitive sectors and hence attract new entrants
effort to obtain market share (Falchikov, 2013). It leads to drop into profit of existing
firms. There are various entry barriers in this sector. There are high scale of economies
through existing players. Threats of new entrants is high. Bargaining power of buyers: This factors examine the power that customers has
regarding changing prices into industry. The hair and beauty salon have high bargaining
power of consumers. It is because of enhance rivals and variety of products and services
from various products producers and salon service provider. Thus, these services has low
substitutes, then this is not possible for clients to minimise prices. So, the bargaining
power of buyers are low. Bargaining power of suppliers: It is the factors that examine the power that suppliers has
about changing in the making price for the products they are using. The hair and beauty
salon sector have low bargaining power of suppliers. Because of more numbers of market
players as well as large supply of various beauty and hair related products and
equipments that are used in salon. There are several services that are provided by small
and large salon. Threats of substitutes: Threats of substitutes raise when there are same product or
services created and provided through rivals that satisfy the requirements of the markets.
Within hair and beauty industry, there are various rivals. Thus, there is high threats of
substitutes services or products (Jensen, Lahn and Nerland, 2012). In nay another salon
give services at higher prices or services are not up to the mark then clients can use the
substitutes such as it may use some salon services which do not use cosmetic products,
they utilise natural things like rose water, turmeric, herbal mehandi rather than hair
colour etc. from another rivals who give these services in the market.
 Competitive rivalry: The competition degree amongst competitors in this sectors is high.
Rivals involves like HUSH hair &beauty salon, Neville hair & beauty salon. There are
various salons that provide hair and beauty related services into the market. Therefore,
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provider are more than users. So, there are several equipments and products that are
utilise through various salons.
II. Two management management practices within Kalika Hair and Beauty Salon Ltd which
creates impact on performance of employee.
 Reward System:
Standards, rules and procedures which are associated with allocation of benefits
and compensation to employees is referred to as reward system. They can be either intrinsic or
extrinsic. Intrinsic rewards are motivators or factors which motivates employees like giving them
challenging tasks, giving higher rank in hierarchy, involving them in decision making, etc.
Extrinsic rewards comprises of accomplishment of hygiene factors like bonuses, pay rise, annual
recreational plans, paid leaves, etc. These both factors enhances the performance of employees
by motivating them (Moon, 2013). These factors act as major driving forces which motivates
employees. When they are motivated they can perform their duties up to their complete potential.
Within Kalika Hair and Beauty Salon Ltd, the management have opted to make use of both these
rewards system. As technology is growing, it is a challenge for people to learn them and acquire
them within working structure. Apart from this, by involving employees in process of decision
making they feel valued and sense of belongingness is generated. Furthermore, by giving them
paid leaves and bonuses their performance can be increased. As their basic requirements can be
accomplished and they will be motivated to work more, their zeal to work will be increased
which will result in enhanced profitability of Kalika Hair and Beauty Salon Ltd. Training and development:
Training and development is considered as one of the essential management
practices. These are refers as the learning process that includes acquiring more knowledge, skills
sharpening, attitude changing in order to maximise the employees performance (Ryan and et.
Al, 2013). In order to improve the skills, knowledge and capabilities of staff and to perform
effectually so Kalika Hair and Beauty Salon Ltd. Should facilitates appropriate training and
development programmes to their workers. This may also affect the commitment and motivation
level of its workers. This allows them to deal with uncertain situations which enhance the
performance of employees. When staff know its organisational interests by offering training
events they give their best efforts to accomplish the objectives of respective firm as well as
shows the effective performance on job. Training may impact the employees performance as this
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fill up the gaps among current and expected performance. This not only improves staff
performance but also assists Kalika Hair and Beauty Salon Ltd. To utilise their human resources
in context of obtaining competitive advantages. Moreover, training can be provided through
various procedures like mentoring, employees participation etc as team work all them to involve
in various activities and generates effective outcomes thus, it improve the performance of the
firms (Schwartz, P., 2013).
Task 2
I. Personal development
It is a lifelong process in which people access their qualities, skills and take into
consideration their aims and formulate their gaols accordingly. Basically, it tracks the
performance and skills which are attained either formally or informally. It is referred to as
portfolio documentation for development of professionals. Individuals are involved in process of
developing skills, technologies and innovations by which they can have enhanced employability
options. This process comprises of recording as well as measuring skills of an individual. Skills
audit is carried out for acknowledgement of existing skills as well as knowledge which is
required by organisation. The personal skills are shown below:
Very good Good Adequate Little or no
experience
Technology
Know basic
concepts of latest
techniques
√
Use specialist
software
√
Knowledge about
internet
√
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Very good Good Adequate Little or no
experience
Communication
Skills
Drafting emails √
Taking notes of
hearings
√
Write reports √
Build
presentations
√
Verbal skills √
Resolving of
conflicts/disputes
√
Very good Good Adequate Little or no
experience
Problem solving
skills
Make good use of
verbal reasoning
skills
√
Able to manage
complex data and
make use of
information
√
Explore more √
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than one solution
in order to solve a
problem
From above mentioned skill audit, it has been clear that there are certain skills which
individual needs possess. This will assist me to me improvise my skills and gain knowledge
associated with this. By this overall productivity can be enhanced. According to the above
results, problem solving as well as communication skills are major weaknesses. They creates a
negative impact on overall performance (Smith, 2016). By improving these skills I can change
my personality as well as it will provide confident to speak up in front of people and handle the
different problems by making use of innovative techniques.
II. Professional development
For addressing the above mentioned weaknesses, the professional development plan can
be used. This plan has been presented below:
OBJECTIVES: Resources
required
Issues faced at
the time of
achieving
objectives
Success criteria Target dates
Professional
development plan
Communication
skill
For this the
resources which
can be used are
public speaking,
coaching and
debates.
Confidence level
goes down when
speaking in public
due to the lack of
appropriate
interactive skills.
This assists to
interact
effectually by
enhancing skills
and
communicating
with people
(Conboy and
Morgan, 2011).
15th May to 30th
May
Problem solving The major Creativity as well It is critical solve 31st May to 15th
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skill resource in this is
advice from
experts and be a
part of group
discussion.
as new ideas
cannot be
identified
instantly.
issues by
innovative
methods.
June
By above mentioned table, it is clear that lack these skills is not healthy and will lead to
various problems in future. Thereby, it is necessary to possess those skills and they can be
acquired by different methods. This will have affirmative impact on performance of individual
(Sweet and Michaelsen, 2012).
CONCLUSION
From above mentioned report, it can be concluded that work based learning creates a
positive impact as it is an educational strategy which provides real life experience along with
academic as well as technical skills. Pestle analysis will assist to analyse the macro environment
and Swot is used to depict internal environment. Furthermore, Porter's five force will help the
organisation to analyse competition within market. Training & development and reward system
creates a strong impact on performance of employees. Apart from this, personal and professional
skill audit will help to identify the skills which must be enhanced.
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