Advanced Diploma of Management - Strategic Planning Assessment 1

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This document presents the solutions to Assessment 1 of an Advanced Diploma of Management/Leadership and Management unit focusing on developing and implementing strategic plans. The assessment comprises theory-based questions covering core concepts such as the differences between strategic and business planning, the importance of strategic plans, and the meaning of organizational culture. It also explores how organizational culture is communicated in the workplace. Furthermore, the assignment delves into SWOT and PEST analyses, detailing internal and external factors organizations must consider. The document addresses the sources of supporting information for research accuracy, potential risks of joint ventures, and essential considerations for establishing due diligence in partnerships. It provides a comprehensive overview of key strategic planning principles and their practical application in a business context.
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ASSESSMENT COVER SHEET
QUALIFICATION: Advanced Diploma of Management/Advanced Diploma of Leadership
and Management
UNIT NAME: Develop and implement strategic plans
UNIT NAME: Develop and implement a business plan
:
ASSESSOR to
complete this section
RESULT IN EACH ASSESSMENT ITEM C
o
m
m
e
n
t
s
Satisfactory Unsatisfactory Did not submit
Assessment 1
Assessment 2 – Part A
Assessment 2 – Part B
Assessment 3
Assessment 4
ASSESSOR to
complete this section
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ASSESSMENT GUIDELINES FOR STUDENTS
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You need to achieve a ‘Satisfactory’ grade in ALL the assessments items to be granted a
‘Competent’ grade in the unit.
In case you are not able to achieve a ‘Satisfactory’ grade in any assessment task, you will be given
three (3) attempts to resubmit your assessment. Your trainer will be available to assist you in any areas of
difficulty. Please discuss the assessment with your trainer to seek advice on how you can achieve
competency in the unit.
Where relevant, oral questions may be asked to gather more information on your knowledge,
skills and competence in the unit.
A holistic approach is used to assess your skills relevant to this qualification. The skills are
assessed across the different units offered within this qualification. Where a skill relevant to this unit is
not assessed within this assessment pack, please note that the skill will be assessed in another unit.
Additional guide to this assessment pack:
You need to demonstrate your competence so do not copy from the case study; reword the answers in
your own words.
Assessment Guide: Some questions will be theory based, others will require you to apply the theory to
the case study, and finally you may need to demonstrate a practical application of the theory:
Theory questions – you need to demonstrate that you understand the theory. Review your
PowerPoint handout and explain the theory in your own words.
Applying the theory to the case study – Review the theory in your PowerPoint handout
and read the case study. Your answer needs to show your ability to find the information from the
case study for example: What are the economic factors that Hair At home need to consider?
o The theory is…the economic climate at a local, national and international level. Can the
economy be described as being in a period of growth or in recession, consider things such as the
unemployment rate, interest rates and consumer confidence.
o To apply the theory your answer would look like….The current economic climate has been
slow over the past 12 months but Hair At Home has been able to maintain strong consumer
confidence. However there still is the potential for regular customers to reduce how frequently
they have their hair done if they find their family budget is under stress.
Practical application of the theory: Review the theory in your PowerPoint handout and
read the case study. Your answer needs to show your ability to use the theory and the case study to
form your answer for example: If you have identified that Jane wants to improve her profits,
what course of action can or strategy can you recommend?
o The theory is… think about how I can achieve my objective or goal. Identify if there is
more than one way to do this, what are the scenarios, what results can I picture, what resources
do I have or need and will it fit with the current economic climate?
o The practical application will look like this…Jane could improve her profits by increasing
retail sales or upselling hairdressing services this would give her additional income from the
same number of clients with very little additional expenses. Another option could be to review her
travel patterns between clients to see if she is traveling the least amount of distance in a day
saving her both travel time and motor vehicle expenses and petrol.
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Assessment 1: Theory Questions
Please indicate whether the statements below are True or False
1. True or False
Write True or False
below
a) A sole trader is also known as a single proprietor TRUE
b) A partnership can have a maximum of 5 people FALSE
c) A partnership is a separate legal entity FALSE
d) A company must be registered under the Corporations Act 2001 TRUE
e) ACN stands for Australian Company Name FALSE
f) A Licensee/Distributor/Franchisee can be a sole trader TRUE
g) A Licensee/Distributor/Franchisee does not have any trading
restrictions
FALSE
2. What is the difference between strategic planning and business planning?
Strategic Plan It is a long term planning which has a set of different stages to
attain the business goal (Bryson, 2011). most of the organizations
are using strategic planning for a particular years which can help to
them to attain their desired target.
Business Plan It is necessary for every business enterprise to identify their
mission, vision, goals and objectives. Company is able to gain
competitive and sustainable advantage over other rival challengers
with the help of business plan. A situational analysis has to be done
in the business plan which can help to the company to draft a plan
according to the organizational strengths, and to work on the
weakness and other loopholes of the company.
3. Why is it important for organization to have a strategic plan?
It is necessary for every organization to make strategic plans which help for achieve goals
and objectives in long time of period. With the help of this strategic plan, manager is able to
participate in decision making process. They can convert their ideas into reality and earn more
profitability and productivity in long run.
4. Explain the meaning of ‘Organization Culture’.
Organization culture is a system of share attitude, values, believes and behavior that can
help person how they can behave in working environment. It is known as corporate culture and
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examine the organization productivity and profitability. Every organization is differed in its
culture and religion. Business is able to produce better quality products and deliver valuable
services so that it can help to attract large number of customers (Van Dooren Bouckaert and
Halligan, 2015).
5. How is ‘Organizational Culture’ communicated in the workplace?
Communication play very crucial role for organization productivity and success.
Manager has responsibility to maintain strong communication with their workers so it can help to
increase the motivation and efficiency level of employee. Worker has to perform with full
efficiency and effectiveness. Workplace communication helps to increase the satisfaction level
of worker so employee can work with their best capacity and potential. Organizational culture is
communicated by the behaviors of the subordinates which can help to them to work accordingly.
6. What is a SWOT analysis?
It is necessary for every business organization to analyze their internal and external
environment factors which help to identify strengths, weaknesses, opportunities and threats.
Company analyze their internal and external environment with the help of SWOT. So, company
is able to modify their existing products and services and innovate new goods (Moutinho, 2011).
Strength and weakness are internal factors of organization while opportunities and threats are
external factors of an organization.
7. What is a PEST Analysis?
PEST stands for political, economic, social and technological factors. Company analyzes
their external environment factors which help to conduct proper research and development
program. The factors are mentioned below:
Political: These factors largely affect the company profitability and productivity.
Government has right to impose various rules and legislation in workplace.
Economic: These factors help in development and improvement of economy. It includes
inflation rate, interest rate, taxes, and tariff that can affect the economic growth (Macfadyen and
Dawson,2012).
Social: These factors mainly affect the welfare of society. It includes the purchasing
power of consumer, disposable income and major events.
Technological: Company has used new technology software that can help to innovate
various products and services so it can attract the large number of customer.
PEST also known as PESTLE, it includes two factors such as:
Legal: There are various legal factors that can affect the company’s productivity and
growth. Government has responsibility to make various laws and legislation that can influence
the company.
Environmental: The climatic condition and atmosphere also affect the organization’s
profitability and productivity.
8. What are the external and internal factors that an organisation needs to consider?
External Factors Internal Factors
1. Organization largely consider the
market fluctuation rates which
helps in their production and
distribution.
2. Company consider the interest rate,
Company has mainly focus for
their culture. This can help
workers how to act in workplace.
It is system of shared attitude,
norms, behavior. Culture also
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inflation rate and credit availability,
this can help to continuity their
business (Carlström and Ekman,
2012).
3. Company has produce their
products and deliver services as per
the customer need and want.
4. Economy creates a huge impact on
the company which has to
considered by the company every
time.
help company to maintain the
balance of cost and efficiency.
Company has mainly considered
human resource management.
This can help to achieve goals
and objective of organization. It
is a responsibility of human
resource manager to solve all
conflicts that exist in workplace.
Organizational culture has a huge
impact on the performance of the
company.
Employees also has to be
considered by the company
management.
9. When considering the internal and external environment for an organization, who can you get
supporting information from to make sure of the accuracy of your research?
Company has largely analyzed their records which they are maintain on daily basis. This
is the most important reliable source that can help to give all information which exist in
organization. Company get various reliable and accurate information from various sources.
These are external sources which help to provide all data and information. Accounts and
financial data can be used as a source for the company to analyze the internal factors impacts on
the company's performance.
10. What are the potential risks of joint ventures?
There are various problems that largely affect the company’s profitability and growth, are
as follows:
Different partner come from organization with different goals, this can affect the
company productivity and profitability. (Gupta, 2013).
Sometimes the partners are not able to communicate all information to others so it arises
grievances
Different person are coming from different culture, religion, caste, creed, so it can affect
the productivity and profitability of organization.
11. What things do you need to think about when establishing due diligence with any
partnerships you form?
I will largely focus for those data and information which are helpful for make
partnership. We can develop list of goals and objectives so all partner are working together in
order for accomplish goals and objective of organization. . I will consider various resources like
financial, human resource etc. This can help to gain more productivity and profitability.
Company has worked under various marketing strategies so the organization is able to face all
challenges which are prevail in enterprise. Performance and history of the partner is considered
in the partnership to pursue the partnership process to further step.
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Assessment 2: Case Study Applying the Theory
Part A - Case Study – Hair at Home
Introduction to Hair at Home
Hair at Home is a franchise organisation currently operating a mobile hairdressing service in
South East QLD from the Gold Coast to the Sunshine Coast and as far west as Toowoomba. The
current organisational goal is to expand into Central and North QLD next year and Sydney and
Melbourne two years later.
Hair at Home’s current market position is well established with a strong and stable clientele. The
current strategies are continuing to see expansion in both the company owned and franchise vans
with the coverage of Brisbane, the Gold Coast, Sunshine Coast and Toowoomba providing solid
income and profits for the staff, franchisee’s and Directors. It has allowed Hair at Home to
remain competitive and prosperous during hard financial times.
Hair at Home is now positioned for growth and has the capacity support the hairdressers working
for them. The structure and procedures for franchisees have been established and the only
limitation is regulation restrictions that occur in each city council for the operation of mobile
hairdressing. The parent company supports its franchisees in their initial set up and marketing
into any new region.
Hair at Home provides an extensive service range including:
Complete range of hairdressings to the elderly, housebound and disabled individuals.
Complete range of hairdressing to age care facilities, nursing homes, independent living
facilities and respite centers for the elderly and disabled.
Full hairdressing services to busy executives, families and individuals.
Office and executive at work customized range of services.
Specializing in wedding and formal hair and makeup services.
History of Hair at Home
Hair at Home was established as a company on 2/8/1990. The purpose was to provide
hairdressing services to an increasing ageing population in Brisbane and surrounding regions.
Over two years the operations increased to a level where the capacity of one mobile van was not
coping with the demand and a strategic objective was developed to handle the expansion of the
business.
In 1992 the organisational framework moved to established itself as a franchisee. Setting up the
structure to meet franchising requirements and establishing the appropriate supporting
procedures took 12 months. By 1994 there were 1 company owned van and 2 independent
franchise vans on the road.
Current Ownership & Structure
Hair at Home has 9 company owned vans and 12 Franchise vans in South East QLD and
provides a supportive structure for all its franchisees. A brief overview is supplied in the
organisational chart below.
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Organisational Chart
Hair at Home Core Values
Hair at Home is selective in its staff and franchise recruitment process. This is so that a culture
can be established in all regions to ensure that clients are receiving consistent services and the
highest quality of hairdressing and makeup care. The culture is based on a set of values including
genuine compassion for elderly people, a caring and supportive attitude, and the ability to remain
professional in even the most trying of environments.
Additional training is provided quarterly to ensure all industry trends and the latest product
releases are communicated and consistent within the Hair at Home Team. Last year Hair at
Home held its first staff training conference in Bali as a reward to the fine efforts of the whole
team with another conference due in October in Fiji.
Vision
“To be the premier mobile hairdressing franchise network in Australia”
The Hair at Home team embraces the belief that we are building ourselves to be the best. We do
this by providing best care for our clients, listening to their needs, solving their hair woes and
remaining price competitive in the market place. Our finest achievement is the ability to rise
above the consumer image of “mobile hairdressing is not professional”
Mission
Our mission is “to deliver the highest quality professional hairdressing and wedding make-up
service with convenience, compassion and full value for money”
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We do this by ensuring our franchisees are selected from the finest hairdressers the industry has
to offer. We provide ongoing training and operational support and assist with all aspects of
business management where needed. Our structures and procedures mean that our staff can get
on with doing what they do best....hair, makeup and keeping clients happy.
Franchise Support Plan
Hair at Home has structure support plan which gives the best opportunity for success no matter
whether you are:
1. Employed in a company owned vehicles or as an apprentice
2. Self employed as a franchisee
The recruitment process has allowed Hair at Home to ensure the right fit to the business, the
geographical area and the client demographic in each area is achieved.
The key strategies to support employees and franchisees include:
1. A clear recruitment process so that the right person can be placed in the right area
2. Comprehensive induction training
3. Ongoing industry updates, training and conferencesCentralized client booking
management system with iPad immediate updates and notifications
4. Staff support in the case of illness and holidays
Initial Induction Training includes:
1. A mentor day on the road with an experience franchisee so the candidate can assess if the
role is what they are looking for and they will fit into our culture and expectations. This
is done before any commitment is made to working with Hair at Home or buying a
franchise.
2. Induction and operating a van on the road for one month preferably in the desired area.
This provides the opportunity to assess whether you do want to make the long-term
commitment prior to financial investment.
3. Monthly review process which is two way. This is the opportunity to discuss what has
worked and if any challenges or issues have occurred. We have the opportunity to
evaluate client feedback, administration feedback and feedback from the Quality and
Training Manager as to identify their suitability to the role. Offer of company area or
franchise area if the month is successful.
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Introducing the Regional Franchise Case Study
The Springwood Region Franchise was purchased by Jane Smith 3 years ago.
Based on a team training session 12 months ago Jane has started to look at developing a strategic
plan for her expansion strategies. At the team training the franchisees were able to identify their
individual goals, strengths, the market segmentation they find key to their individual areas and to
come up with some ideas for moving forward.
Hairdressing Regulations:
The only political consideration is the requirements of individual councils. In some areas, the
vans are required to have hot and cold running water to meet health regulations whereas in other
areas there are minimal requirements to get a license to operate a mobile hairdressing business.
All the franchisees agreed at this session that the Hair at Home mission, vision and values were
relevant for each individual operator and meant there was consistency for the company as a
whole. They then completed individual SWOT Analysis. Jane came up with some important
points for her region including:
StrengthsThe strong skill and knowledge is
necessary for hairdresser.
Good relationships with clients
Good management skills
Great time management
Ability to create word of mouth client
generation
WeaknessesSometime the organization has
booked their client in term of emotionally.
Can work excessive hours at times.
Taking time off and holidays (bit of a
workaholic)
Not strong at on- selling retail product
Opportunities
Wedding and formal market is growing
To develop networks that will increase
word of mouth and referral business
Support from the company which has
mechanisms in place to help franchisees
take time off or fill in for them when sick.
New Wedding and Conference Centre
opening later in the year.
Threats
Area is becoming too busy for one operator
Travel time can impact on number of clients
seen per day if planning is poor.
Risk of putting on another hairdresser and
maintaining current quality of service.
New Salons opening in Franchise Area.
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Part A – Analysis; Hair at Home
1. Describe Hair at Home’s company ownership and structure.
Hair at home is the leading organization that provide the hairdressing services in South
east. The company ownership is that they have 9 owned vans and 12 franchise vans in the south
east QLD. They also generate various structure that provided their franchises. In an organization
hierarchy, the three level are existed that is top level, middle level, and low level. The top level
of manger consists the director and operation manager, they have right to give instruction and
advice to middle level of manager which include the finance manager and sales and marketing
manager. The work of finance manager is to maintain and control the record in book keeping.
2. Based on the organisational structure who are the key stakeholders for Jane, who runs the Hair
at Home Springwood Franchise.
On the basis of organization structure, the key stakeholder of Jane are quality and training
manager and other employees.
3. Summarize the history of the Hair at Home Parent Company.
Hair at home is leading company that was founded in 2 august in 1990. The main goal
and objective of this company is to provide better hairdressing services to large number of
people in Brisbane. In 1992, The company has established structures that can help to meet the
requirement of franchisees. In 1994, the company ownership is that they have 1 company owned
van and 2 independent franchisees van.
4. What are the Hair at Home values?
Hair at home largely works on recruitment and selection procedure that can help to
recruit competent and capable applicant in their organization. They can able to provide better
services to their target customers. They generate the training and development program in their
premises that can help to increase the knowledge and skill of employees.
5.What is Hair at Home’s mission statement?
The mission of the hair at home is that they can largely work to provide the better-quality
hairdressing and wedding make up services to large number of customer. So, company provide
the training facilities to their workers so it can help to workers be able to give their best potential
and effort for provide better services to their target client.
6. What is Hair at Home’s vision statement?
The vision of the hair at home is that they provide better quality services to their clients.
They can work for meet the needs and want of customer. They also establish reasonable prices so
it can attract more customers.
7. Explain how Hair at Home Parent Company has developed a culture of shared value buy in.
The company has work for their organisation culture so they can establish training and
development program it can help to increase the skill and knowledge of workers. They also use
various communication style in their premises so employee can easily convey their messages and
ideas in front of top level of manager.
Research Activity 1 - Analyse the External Environment
As a manager, you will need to be able to complete a number of different tasks. One skill
essential to management is the ability to research.
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The following activity can be completed on your own or in a group.
To help you with your research use the following links:
IBIS Report - http://www.ibisworld.com.au/industry/default.aspx?indid=677
RAPS Report - http://rapstc.com.au/wp-content/uploads/2011/12/Hairdressing-Environmental-
Scan-2013.pdf
Industry factors:
8. Using both reports; look at the summary and overview of Industry to help describe the types of
businesses that make up the Australian Hairdressing Industry.
With the help of both report, the hairdressing industry is established by the small
and medium enterprise. This type of business are established by partners. This report
states that enterprise employ less than 20 or more person which comes under the
partnership business. They largely provide various employment opportunities to large
number of people so it can help to improve their standard of living.
9. Using both reports describe the competitiveness of the hairdressing industry.
According to report, the hairdressing industry are most competitive in nature. Today
people are so conscious about their beauty and makeup element. Men also boost the demand
for this hairdressing industry because they can largely get treatment of their hair removal.
This type of business is more reliable to those persons who have less capital.
10. Use the Report Snapshot on from Ibis World
http://www.ibisworld.com.au/industry/default.aspx?indid=677 to answer the following:
What industry revenue do they predict? $5bn
They have given and annual growth for the period 11-15,
what is it?
2.00%
What is the total number of staff employed? 85338
What is the total number of businesses operating? 21949
PEST Analysis
Political Factors:
Using the Raps Report:
11. Read the Regulatory Requirements and explain what regulations hairdressing salons need to
follow.
The hairdressing salons must be registered in regulation act 1972. This consist the health
and hygienic procedures and policies that can help to protect the infectious disease. They largely
follow the self-regulation act where it is necessary for organization to establish training and
development program that can help to increase the skill and knowledge of their employees and
they can give their best effort in order to achieve organization goals and objectives.
12. In the section on Impact of Government Policy/ Decision explain what the changes to cultural
diversity of both the workforce and customers means for employees.
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It is necessary for every employee to have leadership and management skill that can help
to develop and improve the Australia society and growth in cultural diversity of employee and
customer. Employers largely recruit those workers who have better communication skills.
13. Review the case study and explain the potential council requirement that may need to be
considered which Hair at Home has also identified (this is in your case study information).
The potential council requirement that may be considered and those location where the
requirement of vans are hot and cold running water that can help to meet the health regulation.
The other site are also consider which require license that can help to establish the hairdressing
business.
Economic factors:
Using the Raps Report and read the section on Economic Drivers:
14. What shift in the economy has benefited the hairdressing industry?
The hairdressing industry has benefited from shift in the economy away from goods and
services. They are able to provide employment opportunities to large number of persons so it can
help to increase the living standard of people. Today customers purchase the beauty products in
online, this can save their time and money.
15. Explain the impact that online shopping has created for hairdressing salons?
Online shopping stores are created to provide makeup products at reasonable price that
can largely impact the profitability of offline stores. Sometime some risk factor exists in online
purchasing.
16.Hairdressing salon demand is sensitive to change, there are three areas that have been
identified in the report, what are they?
Hairdressing salon demand is sensitive to change mainly in three areas that are elaborated
in this report such as household disposable income, fashion and society. The demand of hair
coloring is largely increasing in today environment.
17. What does the report say in relation to price based competition?
The salon largely generates reasonable prices so it can attract large number of customers
for using their products. This can help to accomplish company goals and objectives in long run.
Social factors:
Using the Raps Report and read the section on Social Impact:
18. What does the report say about Australia’s estimated residential population and overseas
migration?
This report states that the residential population of Australia is estimated to be 22.3
million. There was growth of 15 percent. This can help in increasing demand for workers in the
service industries. Company is able to produce better productivity so it can help to meet the
satisfaction level of customers.
19. What impact does Australian living standards have on the service sector?
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The increase of American living standard has on service sector are largely impact the
standard of living of people. Customers are largely changer their taste and preference.
20. What does the report say about skill retention and employee training?
This means that service industry is largely provide the better services to large number of
customers. This can help to gain competitive and sustainable advantage over other rival
challenger.
Technological factors:
Using the Raps Report and read the section on Technology:
21. What technology advancements in hairdressing treatments have been introduced?
The introduction of global keratin and other nanotechnology treatments.
22. What type of software and information advancements are hairdressers now using?
The software types are appointment management software and text message software.
23. What does the report identify as the biggest challenge for the industry?
Salons has ability to largely adopt the changes fashion and meet the requirement of
customers.
Identify Strengths, Weaknesses, Opportunities & Threats (SWOT Analysis)
Question Answer
24. What are Hair at Home
Springwood’s key strengths? It is necessary for hairdresser to have good management skills and
relationship with client.
25. What are Hair at Home
Springwood’s weaknesses?
Sometime worker can work in long duration.
26.What opportunities for
growth, new services or
They develop and improve network so large number of customers
are attracted.
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improved client delivery does
Hair at Home Springwood have?
27.What threats or problems is
Hair at Home Springwood
facing?
The new salons are open in franchise site.
Part B - Case Study – Hair At Home
Jane’s area has a younger demographic with families and business people being her key clients.
She finds that only about 30% of her clientele are aged pensioners. Jane has also networked with
a number of local wedding venues, marriage celebrants and event co-coordinators and this has
resulted in an extremely profitable wedding and formal market. This has helped Jane to identify
that her best opportunity for growth lay in the wedding and formal market. She could work
Saturdays and Sundays with weddings and make more money than in the rest of the week. She
plans to have Mondays and Tuesdays off, working Wednesdays to Sundays. Most of the formals
are in the early part of the year and can book her afternoons from 2.30 through to about 6.30
region.
She believes this market has the potential of returning double what it is currently and is the
reason for looking at introducing another operator to the region. Initially She has taken a second
hairdresser on to help on the weekends with the wedding market and could easily do this as the
regulations for Logan City Council are not as rigid as Brisbane and a second operator and
initially operating out of a reliable small vehicle. This has reduced her initial set up costs and
allow for her to grow the market before committing to a second van on the road.
The wedding market has proven to be very successful so Jane has also expanded by putting
another van on the road in her area. She has made the commitment to employ another hairdresser
and made the financial responsibility in fully stocking and fitting out another mobile van. To do
this she has completed a projected budget for the second van to give her an idea of the costs and
returns based on different economic results. It helps her to budget as the second van builds up the
business, giving a 12 month prediction based on a slow growth, good growth and excellent
growth. She has not included wages as the initial idea is that in a slower growth she will only
have a hairdresser start in a part time capacity and gradually work up to a full time role.
Jane realises she needs to develop some skills to increase her opportunity for profits without
having to work additional hours. She believes additional training in sales will generate potential
increased income with retail sales and up-selling her hairdressing services. She also thinks that
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doing regular client feedback surveys will also help her improve her service delivery and assist
in helping to meet client needs better.
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Part B - Identify Key Objectives
28.Explain what has Jane identified as having the greatest potential for growth?
The Jane has identified the various network with large number of local wedding venues,
marriage celebrants and coordinators that can help to gain more profitability and productivity.
29.What skills/area did Jane want to get additional training in and why is it important?
It is necessary for Jane to develop and improve the skills and knowledge that can help to
increase their profitability and productivity in a given time period. It is important because this
can increase income and turnover. They also provide better services.
30. Explain what has Jane prepared a projected budget for?
She gives an idea of cost and return that are based economic condition.
31.Based on the information you found identify any additional potential opportunities or threats
that Jane could develop strategies for.
Jane has establish the training and development program so it can help to increase they
skill and knowledge of worker, they can able to give better productivity and profitability.
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Research Activity 2 – Market Analyse
(You will need to do an internet search to evaluate other hairdressing businesses operating in the
Springwood Region)
32. How many hair dressing salons did you find in the Springwood area?
In spring wood region, 350 hair dressing salons are located.
33. What types of hairdressing services do they offer?
The company has provided various hairdressing services to their target client in term of
coloring, haircut and many other services.
34. Who are the 3 salons that you consider to be Jane’s key competitors?
Salon Name Address
Competitor # 1: Hair Oasis 6/3374 Pacific highway, spring wood
Competitor # 2: Queen of Blades hair and beauty 3368, Pacific highway, spring wood
Competitor # 3: French nails Central spring wood shop 38/34 Fitzgerald
avenue spring wood
35. What prices do they charge for the following?
Ladies Cut Child’s Cut Men’s Cut Foils Up-style
(Wedding)
Makeup
Competitor # 1: $20 $10 $20 $30 $500 $700
Competitor # 2: $10 $5 $10 $20 $400 $500
Competitor # 3: $20 $10 $10 $30 $450 $600
36.Based on the information you have found what is Hair at Home Springwood’s competitive
advantage (what do they offer or do that none of the other salons do)?
On the basis of above information, the major advantage of hair at home salon is they can
provide the hairdressing services to nursing homes and disabled people, other salons are not
providing their services.
37. Based on the information you have found describe Jane’s market competitiveness in relation
to her pricing structure.
On the basis of above information, I have found the Jane largely competitor is hair salon.
38.Considering everything you have researched in your external analysis, SWOT and market
analysis explain what new products or services you would suggest Jane might be able to include
in the future.
I would suggest Jane to largely work to maintain the relationship with existing client and
learn proper management and communication skills.
39.Who are Hair at Home Springwood’s potential customers?
potential customer are both the males and females.
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40.What is it about Hair at Home’s service that appeals to these customers (why do you think
they use this service)?
They can appeal their target clients is they can able to provide better services that can
help to meet their satisfaction level.
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Assessment 3: Planning and Implementation
Case Study – Hair At Home
The team training session also gave Jane a platform to identify and plan her goals, objectives and
strategies. It included:
Long term plans (3 to 5 years) that can be used to develop a plan of action. Firstly, Jane
established what her goal is for the long term and from this she could identify her
objective and strategies that could work. She has only just started to do this and has come
up with the following which she has now implemented:
Goal 1 To be able to have a second van operating in the area
Objective 1 Having a second operator will increase profits and expand working
capacity within the region
Strategy 1 To start by increasing profits through better operational practices, time
management. And increased sales to existing client base.
Strategy 2 Once profits are showing a stable improvement consider employing a
hairdresser part time, improve marketing and grow the wedding and
formal market without the full expense of adding a second vehicle on the
road.
Strategy 3 Once the second operator is providing stable income and meeting targets
consider the value of adding another van into the region.
Jane wants to develop at least another 2-5 strategies for her long terms goals.
She then will be able to develop timelines and specific outcomes to write a business plan.
Developing your strategies
Sales Strategies Analysis:
Price Strategy:
1. You have identified Jane has four core customer groups. Use the background information
you have gathered in your internal and external analysis to explain how sensitive each
group may be to changes in price.
Families This is most sensitive group that can help to earn large profitability
and productivity of company.
Business People This kind of person are not waste their time in salons.
Elderly This is also least sensitive group so company made their strategies
as per the customer needs.
Weddings This is most sensitive group that can help company to earn more
profits and maintain goodwill.
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Product Strategy:
2.Describe how Jane’s services are value for money.
Jane largely focus the market which help for made better marketing strategies.. The main
aim of this company is to make large profits so they can identify the need and want of customer
and according to this demand, they are able to provide services.
Place Strategy:
3. A place strategy is also about the networking channels that are used. Describe who Jane’s is
networking with the most successfully.
The most successfully network of Jane is to connect with wedding venues, event
coordinators and marriage celebrants that can help to earn profitability and productivity of
company. (Haedersdal, Beerwerth and Nash, 2011).
People Strategy:
4. Who are the key people in Hair at Home that may help Jane achieve her goals in some way
(go back and look at the organisational chart).
The key people that can help to achieve goal is employees, directors and quality and
training manager.
Developing the Strategy:
5. Jane is looking to work on her second goal and wants to increase her retail sales as well as
upselling on hairdressing services. She thinks sales training may help her achieve this goal
describe what course of action or strategy Jane could implement to make it happen?
Goal 2 Increase retail sales and hairdressing services.
Objective 2:
Identify what skills and
training may Jane may need to
make this strategy successful?
They establish the training method and expand their working
capacity this can help to make this strategy successful (Sherwin
and Jain, 2013).
Strategy 1:
What will she need to do first?
She can complete their work in given time period and largely
provide services to their existing client.
Strategy 2:
Where can Jane get extra
support to help achieve this
objective?
The marketing and advertisement factors are largely help to
achieve their objective.
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Strategy 3:
What does Jane need to do to
get the staff involved to make
this successful?
They can provide various incentives facilities, this can help the
improve the morale of worker.
Implementing the Strategy:
6. List the people you want to be involved in this strategy:
a. Who will be responsible to manage this strategy:
The second operator are responsible to manage this strategy.
b. Who do you think will be needed to support the initial steps:
I think the manager will needed to support initial step.
c. Who will be needed to be active and get out and make the strategy work in the
workplace:
Jane is active and get out and make strategy work in workplace.
7.List the ways that Jane can monitor or keep track of how well this strategy is performing?
The method that can help to Jane can easily monitor their strategies is that they can firstly
identify the need and want of their target customers and according to this demand, they can
provide their services (van Wijngaarden, Scholte and van Wijk, 2012)
8.List the type of things Jane can look at to measure the results for strategy?
They can mainly focus for time management and operational strategies that can help to
measure the result of strategy.
9.List the things Jane need to do over the next 6 months to make this strategy work?
She can largely work on Saturday and Sunday with weeding and this can help to earn
more profits.
10.Once the strategy is in place and being used in the workplace what are the other things Jane
may need to do to over the next 12 months to make this strategy work even better?
The other things that Jane may need to do over next 12 months to improve their
marketing and grow the wedding market without full expense (Gupta, 2013).
Evaluating the Strategy:
11.Explain how the strategy will be competitive and improve market opportunities for Jane.
Jane made market strategy this can help to earn better profitability and growth in long run
(Carlström and Ekman, 2012). This will help to meet the needs and want of customers.
12.Explain how Jane will be able to use this strategy over a long time to improve her market
advantage.
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Jane use this strategy that can help to improve bad develop their market advantage, they can
provide products and services so it gets competitive advantage over other.
13.What are the projected financial benefits that may result for Jane from this strategy?
Jane has able to maintain and develop their goodwill in an effective manner. This strategy
also gives tax benefit.
Plan resources and financial objectives:
The following questions will identify financial considerations for this strategy that Jane will
need to budget for:
People:
14.What will Jane need to budget for so the staff are able to achieve this strategy?
They can use the resources in an optimum manner. They can make positive environment
so it can increase the motivation level of worker.
Equipment:
15. What additional equipment or stock will Jane need to make this strategy work?
Jane has used the latest innovation machines or equipment in their workplace this can
attract to customers (Haedersdal, Beerwerth and Nash, 2011).
Other resources:
16.What else might Jane have to budget for to make this strategy work?
They can work under this strategy element and use the full utilization of resource.
(Llukani, 2013). They made operation strategies and time management that can help to achieve
large profitability.
Assessment 4: Performance Management
Case Study
Three Year Income Statement
NOTE: Year 1 & Year 2 are for Jane’s income as a single operator; Year 3 includes a new
operator where they operate part time out of their own vehicle for the first 6 months and full time
with a company van in the second 6 months.
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Projected Budget
NOTE: This projected budget is for the new van operations only
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Monitor and Measure Performance
1. Suggest to Jane how she can monitor the success of the strategy.
Jane largely focus to their strategist and achieve goals and objectives. As per the
project income statement, their profit level are continuously increasing (Pekuri, Haapasalo and
Herrala, 2011).
2. When measuring the success of the strategy what non- financial measures that could be
used?
They can able to provide services in loyal manner. So, more customer are attracted to this
salon. They can improve their credibility and identify the need and want of customer. They also
made their price strategies on the basis of their competitor prices.
3.To help measure the financial success of the strategy you will need to work out a projected
target for retail sales based on the current retail sales of $17,850 in Year 3 (the year had one
operator working 12 months and one working 6 months; these averages out to $11,900 per
operator for 12 months giving a combined total of $23,800). Use this new figure of $23,800 to
work out a projected target for retail sales for Year 4 with a 30% increase:
Ans. The projected target for retail sale for 4 years is $30940
Financial Performance Tracking
4 Review the Income Statement provided and complete the Financial Performance Measures
table below for Year 3:
Income Statement Year 3
Hairdressing services: $120,000
Retail Sales: $17,850
Cost of Goods (closing Stock): $3000
Total Expenses: $115,210
Profit & Loss: $10,690
5 Review the Projected Budget provided and complete the Financial Performance Measures
table below:
Projected Budget
Projected total income in the following markets:
Slow Market: $52,900
Good Market: $89,500
Excellent Market: $119,000
Service Fee and Stock (variable Expenses) in the following markets:
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Slow Market: $6,640
Good Market: $9,960
Excellent Market: $13,280
Total Other Expenses: $18,670
Projected Profit & Loss:
Slow Market: $27,590
Good Market: $60,870
Excellent Market: $87,050
Responding to performance data
Jane has expanded her business and put another van on the road. She has gradually built this up
to be financially viable and it was doing well for the first six months. She had established the
following targets for both the vans and tracked their monthly performance as outlined below:
6 months
Target Actual
Jan Feb Mar April May June Total
Van
A
Hairdressi
ng
Services
$
41,000.0
0
$
5,000.00
$
4,800.0
0
$5,500
.00
$
6,000.0
0
$
5,500.00
$
4,500.0
0
$
31,300.00
Retail
Sales
$
8,000.00
$
1,000.00
$
890.00
$1,500
.00
$
1,000.0
0
$
1,150.00
$
780.00
$
6,320.00
Van
B
Hairdressi
ng
Services
$
26,500.0
0
$
2,500.00
$
2,000.0
0
$3,000
.00
$
3,500.0
0
$
3,800.00
$
4,000.0
0
$
18,800.00
Retail
Sales
$
2,000.00
$
190.00
$
200.00
$
220.00
$
195.00
$
150.00
$
200.00
$
1,155.00
This section is practical application for all the questions.
6 We do not know what may have caused this so what do you recommend Jane does to try and
find out the cause of nonperformance?
I would recommend the Jane to largely focus to provide better services and products to
their existing and new customer. The main cause of their nonperformance is that they are not
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able to employ efficient and skillful workers, so it adverse effect their profitability and
productivity (Cullen and Adams, 2012).
7. What do you think Jane could do to track her business performance?
She made their project income statement and balance sheet that can help to analyze their
annual performance. This indicate that to make better performance in near future. With the help
of this statement, they can provide better products with reasonable prices so it can help to attract
large number of customer.
8. What additional support do you think Jane could give the two van operators to help improve
their performance?
Jane has launched various incentive scheme to their worker so the van operator are able
to improve and develop their performance with full efficient and potential. The also made
various marketing strategies that can help for organization productivity (Operations Planning
and Management, 2017). They provide the better hairdressing services and retail services to their
target client it can help to attract large number of customer and also increase the trust and loyalty
(Pollitt, 2013).
9. You now need to make an adjustment to help Jane get both operators back on track complete
the following to give Jane some guidance in setting a weekly goal for each operator.
Step 1: Working out the difference between the Target and Actual results:
Van A V
an
B
Hairdressing Retail Hairdressing Retail
Target $41000 $8000 $26,500 $2000
Actual $31,300 $6,320 $18,800 $1155
Differenc
e
$9700 $1680 $7700 $845
Step 2: The target for the next 6 months is the same as the last six months so we need to work
out the adjustment for the next 6 months.
Van A V
a
n
B
Hairdressing Retail Hairdressing Retail
Target $ 41,000.00 $ 8,000.00 $ 26,500.00 $ 2,000.00
Difference $9700 $1680 $7700 $845
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Adjustment $31300 $6320 $18800 $1155
Step 3: We want to make our adjustment appear realistic for our van operators so we will now
break it down into a monthly and weekly goal.
Van A V
a
n
B
Hairdressing Retail Hairdressing Retail
Adjustment $ 31300 $ 6320 $ 18800 $ 1155
Monthly (Adjustment/6) $5216.6 $1053.3 $3133.3 $192.5
Weekly (Monthly/4) $1304.25 $263.25 $783.25 $48
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REFERENCES
Books and Journal
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Operations Planning and Management. 2017. [Online]. Available through:
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[Accessed on 7th September 2017].
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