Small Business Enterprise Analysis: The Case of Tangle Teezer Ltd

This report provides a comprehensive analysis of Tangle Teezer Limited as a small business enterprise, examining its background, activities, strengths, and weaknesses. It compares Tangle Teezer's financial performance and business strategies with similar companies, highlighting its superior performance and enthusiastic board members. The report also delves into the reasons for Tangle Teezer's rejection from Dragon's Den and proposes strategic marketing plans, including SWOT/TOWS analysis, skilled worker recruitment, and brand awareness campaigns, to overcome weaknesses and improve financial resources. Furthermore, it emphasizes the importance of upgraded technology for manufacturing high-quality hair brushes, strengthening customer relationships, and improving workflow. The report concludes by outlining strategies to enhance the company's performance through Search Engine Optimization, social media marketing, and maintaining a better product life cycle, as well as analyzing competitive forces using Porter's Five Forces model.

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SMALL BUSINESS ENTERPRISE
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SMALL BUSINESS ENTERPRISE
Contents
TASK-1:......................................................................................................................................................3
Introduction:................................................................................................................................................3
Comparison of Tangle Teezer Limited with a similar industry:...............................................................6
Task 2..........................................................................................................................................................7
Task 3........................................................................................................................................................10
Task 4........................................................................................................................................................14
References:................................................................................................................................................18
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TASK-1:
Introduction:
To analyze and make a report of a small business enterprise, one must follow the Dragon Den
Series. The name of the selected company is Tangle Teezer Limited. The CEO of the company is
Shawn Pulfrey. As both the creator and CEO of Opus Recruitment Solutions, Shawn represents
upon more than twelve years’ industrial familiarity and thirteen years’ staffing experience to lead
both the business and every individual advisor on the path to victory. One of the directors of the
company is Mr. Matthew Paul Lumb; Shawn Pulfrey is the Managing Director of the company.
Mr. Stephen Charles Stewart is the mutual director of the company.
Background of Tangle Teezer Limited:
Tangle Teezer’s initiator, Shaun Pulfrey, started a profession in 1978 as a hair colourist. Right
through his career, he was employed at Pierre Alexandre, Richard Ward, Nicky Clarke and
Toni&Guy salons (Cowling, Liu, and Ledger, 2012). In 2002, Pulfrey unconfined ‘I Wanna Be
Blonde,' a book putting his insider fashion guidelines. Pulfrey started to make inquiries and build
up the proposal for Tangle Teezer brushes, with the aspiration of forming the world’s foremost
specialized detangling device, in 2003. In 2005, he remortgaged his house to sponsor the
manufactured goods launch. Pulfrey came out in 2007 on Dragons’ Den. Plunging to Peter Jones,
James Caan, Duncan Bannatyne, and Deborah Meaden; he presented 15% of the Tangle Teezer
product for $80,000, however, was discarded by the series. Jones categorized the brushes as a
very low-quality product; Caan said that the products were not time worthy and Bannatyne
showed extreme anger towards the product. Nevertheless, when the event came out, the Tangle
Teezer website stopped as a consequence of public requirement, with 1,500 orders cited. In
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2008, Boots commenced supplying the brushes, and in 2009, the product had earned a profit and
began to develop into an international market (Cooper and Burke, 2011).
Activities:
Tangle Teezer Limited is a company which provides hair brushes. They make world's first
detangling hairbrushes (Tricker, 2011). Their brushes are famous worldwide, in fact, some
famous Hollywood celebrities also use their products. It is a small company with high ambitions.
Their group activities are behind their qualitative products. At present, the company has 22
employees who work very hard to maintain the quality of the product (Cahn and Donald, 2010).
Business Locations:
Opus Recruitment Solutions have expanded their business in New York, London, England,
Amsterdam, Wales, Brixton, etc.
Strengths and Weaknesses of Tangle Teezer Limited:
 Strengths:
1- One of the strengths of the company is that it is a small business so that it can benefit
the local people and the local market.
2- Their products are very innovative and fashionable, which attracts customers.
3- They promise that the hair brushes detangle hairs gently and in a painless way. The
female customers are very much attracted towards their products (Zhulina and
Rubinstein, 2012).
4- The look of the brushes is quite simple and elegant, and it gives some silky talk.
5- The brushes are very easy to clean, and it takes less time to clean.
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6- Their packaging is unyielding, and the brushes will also fit in small handbags so that
the customers can easily carry the product with them (Koch and Lockwood, 2010).
7- The product is suitable for all types of hair, and their brushes take good care of hair.
8- Other than hair brushes, they also provide their customer's different types of hair
styling kits.
9- Customers find the company more trustworthy than other similar companies. Because
of their reputation, most of the Hollywood actresses use this product, and they gave a
positive review about the product.
 Weaknesses:
1- The company did not have a good financial backup plan at first. There were no proper
strategies about the company's financial future (Anon Higon and Driffield, 2011).
2- The physical assets of the company are not so good. Their main product is hair brush,
which demands that it detangles hair gently. But some customers complained that the
products of the company were not up to the mark. The conditions of the equipment
are also not so good.
3- It is a small business, and so it can hire only a limited amount of employees. The
workload of the company is a lot more than their human resources, and because of
this reason the work process becomes very slow (Tangle Teezer Limited, 2012).
4- The workflow of the company is not better than other similar companies.
5- Because of employment issues, the market position of the company is also indigent.
6- Dragon’s Den rejected their patents, which put their intellectual property in jeopardy.
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7- All these issues ultimately affect the company's growth. The extreme competition
also sabotages the company's potential growth.
Comparison of Tangle Teezer Limited with a similar industry:
Incorporate
d
Net
Worth
Turnove
r
Employees
Tangle
Teezer
Limited:
17th March
2005
$6.05m 23.18m 22
Auraley
Limited:
20th July 2011 $86.96k 17.24m 56
From the above annual chart, it is shown that Tangle Teezer Limited’s financial performance is
better than another company or similar industry. Apart from these statistics, Tangle is also way
more superior in its business locations. The board members of the company are more
enthusiastic, and they make great strategies to strengthen their company's reputation and
achievements. Their use of technologies is more modern than other agencies. They not only
depend on the product’s quality but personally take tests of their employees’ capabilities. Tangle
has a reputation of earning 24.56m, which is a lot more than other hair brush companies. Their
group performances are quite famous among their customers and other peoples. Their strategic
plans play a crucial role in the competitive market and place them in the highest position. Thus,
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in a way, it can be said that Tangle Teezer Limited is a great hair brush company in comparison
with similar companies.
Task 2
2.1 Dragon’s Den has rejected Tangle teezer limited from entering into the list of safe cosmetics
and hair brush companies. The main reason behind it is bad quality of products, a low reputation
of the company, bad financial resources, and inadequate market position and so on. Therefore,
Tangle teezer limited needs some strategic marketing plans to overcome their weakness
(McKinney, 2003).
For building strength and minimizing the workforce of the organization, SWOT/TOWS analysis
must be conducted. Apart from it, hiring and recruiting of skilled workers are important for the
business. The organization must spread awareness of their brand among people so that that
people who are interested to work can join the company after going through some interview
rounds.
At first, the company needs to look after the improvement of financial resources and for that the
organization should regularly monitor the progress of the business. Moreover, Tangle teezer
must ensure that the customer pays on time. Based on the bad quality of products, the
organization must use upgraded technology for manufacturing high-quality hair brushes. High-
quality technology will help the customers to take care of their long locks.
Additionally, the market position can be increased using innovation, smart hiring prices as well
as strengthening the relationships with the customers. Smart hiring of prices are be performed by
writing better job descriptions, embracing digital trends and social media, focusing on soft skills
as well as checking social media profiles. Customer relationship can be strengthened by regular
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monitoring of customer behaviour and prioritizing them by knowing who needs company’s
immediate attention. The market position can also be improved by acquiring competitors. The
organization can implement merger and acquisition method with their competitors and
strengthen the market position. As a result, higher market share puts the companies at a
competitive advantage (Johnson, 2004). At the same time, the poor workflow can be improved
by breaking the work procedure down into as many distinct steps as possible.
The human resource manager must recruit experienced individuals who could handle modern
and upgraded technology for manufacturing the products and be capable growing the company.
The company should improve work efficiency, for example, by a process review. The main thing
is that the corporation must follow these above strategies to satisfy the customers. The customer
satisfaction will lead to the increase of the brand value of the enterprise. If the company able to
increase the brand value, then they can improve the reputation (Gallagher, 2014). It is very
crucial to maintain a high profile of the company to the customers. The customers may vary from
normal individuals to celebrities. Poor workflow can be improved by identifying the root
problems. Once the problems are identified, solutions can be derived according to the cause.
Aside from that, the brand value of the product can be increased by maintaining high standards
for designs. People are influenced by looks. The products should be made in such a way that
customers are attracted by the looks.
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Source: https://www.google.co.in/url?
sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwie6I6An4XSA
hXHPo8KHd04A0cQjRwIBw&url=http%3A%2F%2Fwww.med.upenn.edu
%2Fhbhe4%2Fpart2-ch4-integrated-behavior-model.shtml&psig=AFQjCNHMho2-
GngRyKfwD1jrech4fRyHjQ&ust=1486806189324267
2.2 Tangle teezer must follow some significant ways to improve and strengthen the current
performance of the company. A good Search Engine Optimization is necessary for every field. A
good SEO enables the company to rank higher in the search and to appear on the first page. On
the other hand, it can represent twenty to ninety percent of the traffic website. The cosmetic
industry is a field where there is full of innovation. In this area, the competition is fierce. The
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organization needs to mark the customer’s mind and therefore creating buzz is very efficient and
effective (Jones, 2008). Apart from it, social media is very useful for companies such as Tangle
teezer for promoting the products to every corner of the world. For example, the company can
launch products with high definition images and catalogs in Facebook Fan page as well as on
Instagram. Many blogs and forum now take the social media as the primary source of
information instead of traditional media. Besides that, contests enable the organization to acquire
current and new customers as well as increase the loyalty of the current consumers (Evans,
2008). Moreover, it is a good way to incite users for providing the company with the information
of the consuming habits.
Product Life Cycle
Source: https://www.google.co.in/url?
sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0a
hUKEwjf3YmvoYXSAhXBso8KHVojDdwQjRwIBw&url=http%3A%2F
%2Fwww.quickmba.com%2Fmarketing%2Fproduct%2Flifecycle
%2F&psig=AFQjCNHb8TPwoAfwYcS28HFBS-
cI57l0fg&ust=1486806873129657
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When a new product progresses through a sequence of stages from introduction to maturity,
decline as well as growth is known product life cycle. The organization must maintain a better
product life cycle. At introduction stage, branding and quality level is established and consumers
show acceptance of the product. At growth stage, product quality is maintained and additional
features and support services are added. Promotion is aimed at a broader audience. At the
maturity stage, promotion emphasises product differentiation. Here, product features are
enhanced to differentiate the product from that of competitors. Pricing is lower due to
competition. In the last stage that is at decline stage the product is maintained by adding new
features and finding new uses.
Porter’s Five force Analysis
Source: https://www.google.co.in/url?
sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0a
hUKEwi3ztbvkIXSAhXIRI8KHcaqAxcQjRwIBw&url=http%3A%2F
%2Fwww.notesdesk.com%2Fnotes%2Fstrategy%2Fporters-five-forces-
model-porters-model
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%2F&bvm=bv.146496531,d.c2I&psig=AFQjCNFppAFfozeERYPm6vOI
ND1FGESgig&ust=1486802443777110
Threats of New Entrants: In small scale industry, the threats of new entrants is very high. The
growing economy as well as the increasing buying power of the customer has made each and
every player of small scale industries to grab the opportunities such as buying new products.
Threats of Substitutes: The presence of products outside of the realm of the common product
boundaries upsurges the inclination of customers to switch to replacements.
Bargaining Power of Suppliers: The providers for this industry incorporate the supply of crude
materials like steel and a considerable measure of segments are included in the Value chain
prepare. Besides that, steel which is a remarkable crude material for this industry is continually
expanding in cost because of abundance request and accessibility.
Bargaining Power of Buyers: the bargaining power of customers is described as the market
outputs. It is the ability of the customers to put the firm under pressure and it also impact on the
customer’s sensivity to the change of price.
Competitive Rivalry: Internationally, the craze for new product are growing and people are
incoming millions of dollars and buying products. Therefore, the company needs to make such
products which will be unique from others. In this way, they can achieve competitive advantage.
Resources, strategies and plans are required by the organization accomplish their objectives of
the competition market.
Employee performance is very crucial for the enterprise. It is the responsibility of a human
resource manager to recruit skilled workers who can control innovative and upgraded
technology. An excellent customer interaction is important, and for that, a good speaker is
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