Business Development: Growth Planning Report for Josanna Hair Paradise

This report presents a comprehensive growth plan for Josanna Hair Paradise, a hair salon located in Hackney, East London. It begins with an introduction to growth planning and its strategic importance, followed by an analysis of key considerations for growth opportunities. The report employs various analytical tools, including the Ansoff Matrix, Porter's Five Forces, SWOT analysis, PESTLE analysis, and the BCG Matrix, to evaluate market penetration, market development, product development, and diversification strategies. The report assesses the risks associated with each growth opportunity and concludes with recommendations for leveraging market development and cost leadership strategies to maximize profitability. The document provides insights into how Josanna Hair Paradise can achieve sustainable growth in a competitive market, considering factors like political, economic, social, and technological influences. This report offers a detailed overview of strategic planning for business expansion.

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 Hackney East London, 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.
Josanna Hair Paradise 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.

BCG Matrix
BCG matrix can be defined as tool which is used for corporate planning, which can help
company in building its brand portfolio. Four elements of BCG Matrix are dogs
which hold low market share with low market growth rate. Then comes the cash cows
which has induced growth but maintains market share. The third element is stars
which has high growth rate with high market share. The last is question marks which
hold low share in market with fast growing markets. Josanna Hair Paradise must
focus on its star products by which it can capture high share in market and get high
growth rate in market.