Business Growth Planning and Analysis Report for Josanna Hair Paradise

This report focuses on the growth planning for Josanna Hair Paradise, a salon business. It begins with an introduction to growth planning and its importance in business. The report then analyzes key considerations for growth opportunities, including the use of the Ansoff Matrix to evaluate market penetration, market development, product development, and diversification strategies. Analytical tools such as SWOT and PESTLE analyses are employed to assess the company's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, and technological factors affecting the business. The report also evaluates growth opportunities with associated risks, concluding that a combination of market development and cost leadership strategies can benefit the company. References to relevant literature are provided, and the report emphasizes the importance of strategic planning for sustainable business growth.

Planning for Growth

Table of Content
Introduction
Analysis of key considerations for growth opportunities
Consideration of analytical tools for growth opportunities
Evaluation of Opportunities of growth with Risk associated
Conclusion
References

INTRODUCTION
Growth Planning is strategic plan for business activity that enables business owners
to plan and record the growth in revenue of company. The company chosen for this
presentation is Josanna Hair Paradise. It is situated in United Kingdom.

Analysis of key considerations for growth
opportunities
Leaders understand that if the organization
has to grow in long term, they can stick to a
business with usual mindset, even when the
things are well. So leader of Josanna Hair
Paradise needs to find new ways to increase
profits and reach out new customers. For this
leader can use approach like Ansoff Matrix to
think about the risk of each option and devise
the most suitable plan for all situation.

Ansoff matrix provides the following different growth strategies
Market Penetration
Market Development
Product Development
Diversification
Continued...

Consideration of analytical tools for growth
opportunities
When the primary determinant of firm’s profitability is attractiveness in the industry
in which it operates, its secondary determinant is its position within the industry. Airdir
Ltd can position itself by leveraging the strengths by arguing the strengths of Michael
Porter.

The strengths in either a broad or narrow scope three generic strategies –
Cost leadership
Differentiation
Focus
Continued...

Strengths
•Josanna Hair Paradise has strong
beauty digital engagement to its
customers.
• It has employees with 5+ years of
experience who work with
effectiveness.
Weakness
•As the store is locates in off- mall
shopping area it is difficult to get high
customer footfall.
•Josanna Hair Paradise has high
maintenance expenses.
Opportunities
•The beauty products and salon services
are growing; it has opportunity to
expand its business.
•Company can create personalized
digital experiences all across touch
points.
Threats
•There is huge competition in the beauty
industry, by which the services needs to
be up to the point.
•Impact of covid-19 on the working of
salons.
SWOT Analysis

PEST Analysis
Every company that sells cosmetics can follow strict rules, so following is the
PESTLE analysis of Josanna Hair Paradise that has deeply immersed in these
facts.
•Political- Product safety is a concern of people in UK. Since the products are
designed for skin-to-skin contact, they are more widely considered part of the beauty
industry. A bill called the Personal Care Product Safety Act gives the FDA more
"practical" access to ensuring product safety. Josanna Hair Paradise need to write
component statements, create reminders, and register manufacturers so that salon do
not have to face any concisions.
•Economical- Unlike many other industries, the beauty industry is fiercely opposed
to the luxury economy. Sure, consumers are becoming more price conscious, and
decide to buy only what they need for life, but that's it. At is way the chosen
company needs to focus on its prices of salon services.

Continued...
•Social- Hairdressing, skin care, nail salons, hairdressing salons massage parlours,
and perfume bottles all these are related to the cosmetics industry. Consumers can
find dozens of brands offering almost the same product. Josanna Hair Paradise needs
to have some unique techniques which make the company stand out from its
competition.
•Technological- Many salons sell directly through their website (e-commerce), and
have no intention of ever putting their products in stores (and it has expenses and
extremely difficult to get a place on the shelves). Big brands are well known and
have a better chance of retaining their customer base thanks to their brand loyalty. So
to compete in market Josanna Hair Paradise by stepping in ecommerce activities.

Evaluation of Opportunities of growth with Risk
associated
Looking at the growth
planning of Josanna Hair Paradise
the company has opportunity to
grow in the market with Market
Development strategies in which
company can enter in new market
using its existing products.

CONCLUSION
From the above presentation is can be concluded that Growth planning is a activity
that ensures that owner of company makes plan and track the growth associated to
companies revenue. Analysis for growth opportunities of company can use ansoff
matrix which majorly defines strategies like market penetration, market development,
product development and diversification. For increasing profitability the company has
option to adopt cost leadership, differentiation and focus. With the combination of
market development and cost leadership strategies the company can be benefited at it’s
highest.

REFERENCES
Gumel, B.I., 2019. The Impact of Strategic Planning on Growth of Small Businesses
in Nigeria. SEISENSE Journal of Management. 2(1). pp.69-84.
Hu, R., 2016. Planning for growth: Urban and regional planning in China.
Burns, P., 2011. Entrepreneurship and Small Business. London UK.
Moore, G.A., 2014. Crossing the chasm. Harper business.

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