Close Cut Case Study: Analyzing Business Problems and Solutions

The Close Cut case study examines the business challenges faced by a barber shop, particularly focusing on management issues, workforce allocation, and market dynamics. The analysis highlights problems such as poor management leading to customer loss and financial underperformance. Proposed solutions include rescheduling hairdresser availability based on customer demand, increasing the workforce during peak hours, and implementing a dedicated client scheduling system. The study also touches on the importance of market analysis, supply and demand concepts, cost analysis, and strategic positioning. Furthermore, the case study covers various aspects of business strategy, including market analysis, supply and demand, and cost analysis, to maximize profit and improve overall business performance.

CLOSE CUT
CASE STUDY 1
Introduction
Hair maintenance is one of the most
profitable businesses in the United
States of America and the United
Kingdom. As per the case study the
hair maintenance industry fetches
around $US 85 billion in a year
globally. The same analysis states that
only men’s grooming industry
estimated to reach $US 26 billion by
2020.
Explanation
• As per the case study the salons in
United States of America and the
United Kingdom receives numerous
customers especially in weekdays.
• It is also evident that these salons
have to offer many types of haircuts
like Crew cut, Undercut and many
more. In spite of having such
resurgence in the hair salons in
United States of America, the industry
still faces some serious problems.
Problems
• The main problem that can be
highlighted from the case study is the
absence of proper management.
• Due to the bad sales of these salons
hit pretty hard because of the bad
management. These salons loose
potential customers due to the bad
management. customers at a time.
• As per the author the salons faces
less workforce due to which the salon
cannot accommodate or entertain
every
• The loosing of customers heavily
affects the financial performance of
the salon. Thus, to mitigate such
problems the salon not only needs to
increase the working space, but they
should also increase the workforce.
Managing Processes
• Plan: In order to improve the
profitability of the barber shop the
management of the of the shop
needs to reschedule the availability
of hairdressers based on the
customer availability.
• Organizing: In weekdays the
number of hairdresser should be
increase from 3 to 4 people. On
Monday to Thursday the hairdresser
availability should remain
unchanged. In this way the barber
shop can avail every customers.
• Leading: The barber shop can hire
a dedicated person who will be
responsible to take care about the
client and their scheduling.
• Controlling: The barber shop will
controlled by the owner himself.
Owner will take the report from the
manager about the profit and
scheduling during the day end.
Managing People
• There is 100min available to process
one client with one hairdresser. This is
enough time taking into consideration
15min time to finish cutting one client
• During this off peak hours one
hairdresser has a maximum capacity
of 20 client that can be cut but due to
waiting time it can be less.
• This slot need to be promoted to
make it busy perhaps utilised at least
50% of the capacity
• If the demand increase at this off peak
hours the number of hairdresser
should be increased to 4 since there
is 4 chairs. clients Hourrs Hairdresser Available time per client Number of clients for 3hrs per 15min
per client excluding waiting time
0
2
4
6
8
10
12
14
16
18
MANAGING PEOPLE
Thu Fri Sat