A Comprehensive Situational Analysis of Maria Style’s Hairdresser

This case study presents a situational analysis of Maria Style’s Hairdresser, a unisex hair salon, focusing on its internal capabilities, competitive landscape, and macro-environmental factors. The analysis employs various frameworks, including internal analysis to assess the salon's strengths and weaknesses, Porter's Competitor Analysis to evaluate Kolova Unisex Hair Salon, PESTLE analysis to examine the external environment, and SWOT analysis to synthesize internal and external factors. The study identifies key strengths such as specialized human resources and diverse styling options, weaknesses including lack of experience and short staffing, opportunities arising from the favorable economic conditions in the UK and technological advancements, and threats such as increasing competition and customer switching. The report concludes with recommendations for the salon, including hiring experienced employees, investing in technical equipment, and organizing training sessions to enhance service quality and customer satisfaction. This document is available on Desklib, where students can find a wide range of solved assignments and past papers.

Situation Analysis of Maria
Style’s Hairdresser

Internal Analysis
Internal analysis can be defined as the process of identifying and analyzing an organization’s specific
characteristics which consist of resources and capabilities. Herein, internal analysis of Maria Style’s
Hairdresser a unisex hair salon assist in providing good sense of firm’s competencies and the capability
of improving as per the needs and wants of customers.
The cited salon provides hair styling for the whole family which consist of:
 Haircuts for Men and Women
 Hair coloring for Women
 Haircuts for Children
The key to success for Maria’s Style Hairdresser Salon is to maintain:
 Professionalism
 Convenience
 Customer attention

Competitor Analysis
Michael Porter presented a framework for analyzing the competitors which is termed as
Competitor Analysis Framework. However., the main purpose of this framework is to
evaluate each and every aspect of business in order to understand the actual and current
position. According to the present given scenario, owners of Maria’s Style Hairdresser Salon
requires to carry out competitor analysis to identify their art rivals as well as their strategies
and tactics to sustain in the market. The major competitor of cited salon is Kolova Unisex
Hair Salon and it can be analyzed at four key aspects:
 Competitor’s objectives
 Competitor’s assumptions
 Competitor’s strategy
 Competitor’s capabilities

Contd..
 Competitor’s objectives: The main purpose for the existence of Kolova Hair salon is to
provide quality of hair related services for all three male, female and children.
 Competitor’s assumptions: Constantly bringing innovation and creativity within the
services to ensure higher satisfaction for the customers.
 Competitor’s Strategy: The strategy employed by Kolova Hair Salon is to provide combo
packs to its customers so that they can enjoy two different services at a time for instance:
hair cut and facial massage.
 Competitor’s capabilities: Cited hair salon have the professional human resource who are
specialized in different prospects of the hair salon operations.

Macro Environment
External analysis can be defined as the process of scanning and evaluating the macro factors
to determine positive and negative trends that can affect the performance of business
enterprise. Herein, owner of Maria’s Style Hairdresser requires to analyze the external
environment so as to evaluate all the risks and uncertainties associated with the business. In
order to analyze the macro environment, Pestle analysis has been used which is as follows:
 Political: According to HABIA (the Hair and Beauty Industry Authority), owner have
comply with the riles and regulation of disposal of waste. Further, it is important to
recycle all the where possible. In addition to it, owner have to focus on the different
polices framed by the authority and accordingly carry out the operations.
 Economical: Economic condition is UK is favorable which indeed enhances the spending
power of people. however, charging affordable prices with varied combos, cited hair salon
can generate higher revenue and establish its position within the market.

Contd..
 Social: In UK, corporate environment leads to hectic schedule for the people
thus, providing relaxing treatment at salon will help in pampering the people.
Herein, people need to de-stress, slow down and take time to enjoy themselves.
 Technological: Nowadays, there are several technological advancement taking
place which plays significant role in satisfying the needs and wants of customers.
Salon uses smartphone to social media to promote their business and to train
employees so that to generate desired results and satisfy the expectations of
customers.

SWOT Analysis
SWOT analysis in general can be defined as the internal analysis of an organization by covering
its four different prospects which are strength, weaknesses, opportunities and threats. Through the
means of this analysis owner can easily identify the capability of salon in meeting the
expectations of target market as well as sustain in the market for long term. Furthermore, in order
to carry out the operations of salon in the best possible manner it is important for the individual to
understand the salon’s business vitality and accordingly develop strategies and tactics to enhance
the functioning in near future. Following the SWOT analysis of Maria’s Style Hairdresser.
 Strength
 Weaknesses
 Opportunities
 Threats

Contd..

Contd..
 Strength: In general the strength of an hair solon is anything that allows it to outdo its
competition. Considering Maria’s Style Hairdresser salon there are several strengths of the
business which assist in carrying out its operations in the best possible manner. Looking at
the human resource how possess special knowledge surrounding specific hair treatments or
conditions. Along with this, offering wide style options to the customers helps in
maintaining long term relationship. Sound financial background has supported the technical
aspects of business which allows them to offer superior quality of services and relaxing time
to the customers.
 Weaknesses: In general, weaknesses can be defined as the areas where firm is outperformed
by its competitors. One of the major weaknesses that Maria’s Style Hairdresser is lack of
experience in its human resource. Despite of having specialized employee lack of
experience is the biggest drawback of the firm. Along with this, short staff increases the
waiting time for customers which is another major problem for the firm.

Contd..
 Opportunity: It is an external situation that assist the firm to get benefits from the internal
capability. Looking at the present economic condition of UK, establishing salon provides
several opportunities as people are higher caring about their skins and for which they are
ready to spend high money. Further, constantly changing technology will help the course of
company to enhance its level of offering services as well as improve the overall level of
satisfaction for the customers.
 Threats: Increasing competition is one of the biggest threat that Maria’s Style Hairdresser
salon can face because there are several other salon in the target market that are offering
similar services as well as making tons of efforts to provide superior quality of services to
the customers so that they retain them. Further, higher competition also increases the threat
of customer switching as there is very low switching costs owners of Maria’s Style
Hairdresser salon have to focus on maintaining the better quality and services to the
customers.

Conclusion
In conclusion to the above report it has been evaluated that, salon industry is showing positive
signs for the firms operating in it to carry out their operations in effective and efficient
manner. Further, study entails the situational analysis of Maria’s Style Hairdresser salon in
which internal analysis has been carried out which illustrates the capabilities and
competencies of the salon. Along with this, through the help of Michael Porter Framework
competitor analysis has been carried out that assist in understanding different aspects about
Kolova Unisex Hair Salon. Thereafter, Pest analysis has been carried out to evaluate the
macro environment of salon industry and lastly, through SWOT analysis, internal capabilities
of Maria’s Style Hairdresser salon has been identified and evaluated.

Recommendations
On the basis of above study, various aspects about Maria’s Style Hairdresser salon has been
analyzed on the basis of which certain recommendations are presented to the senior authority of
Unisex salon so that future functioning can be enhanced and desired results and outcomes can be
generated.
 Owner of Maria’s Style Hairdresser salon should hire experience employees for the job so
that they can meet out the expectations of customers in the best possible manner.
 Salon is recommended to indulge technical equipment's to enhance the level of customer
services.
 Owner should focus on organizing training and development sessions for the employees so
that they can bring innovation and creativity within their approaches and serve the customers
in the best possible manner.