Entrepreneurship: Business Plan for Scissor & Style Salon in UK

This report presents a comprehensive business plan for a salon named 'Scissors & Style' in the UK. It begins with an introduction outlining the business idea and its market potential. The main body includes a PESTLE analysis, evaluating the political, economic, social, technological, legal, and environmental factors affecting the business. It then delves into Porter's Five Forces, assessing competitive rivalry, supplier power, buyer power, the threat of substitution, and the threat of new entry to identify the salon's competitive advantages. Furthermore, the report discusses the target market using the STP framework (Segmentation, Targeting, and Positioning), justifying the chosen demographic and outlining strategies for brand positioning. The report concludes with a summary of findings and provides references.

Starting a Business and
Fundamentals of
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Evaluation of the current external environment (PESTLE)........................................................3
Discussion about Porter's Five Forces and what will be the competitive advantage..................5
Discussion about who the target market will be and give proper justification...........................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Starting a business is primary step which is needed to be taken by the investor whenever
they thinks of involving themselves within the commercial sector. The business idea which has
been developed for this respective file is starting a Salon services in UK as demand and needed
regarding the beauty products never declines as there is huge possibility that company might earn
huge amount of profit in it. The main reason to enter in this market is just because if the
information which I have collected from different sources. This will directly help to incorporate
the business and still required of firm's have not been started due to which there is huge
possibility that aim can be fulfilled easily. The name of the firm is Scissors & Style which will
be incorporated in London as it is one of the city where people mainly focus on beauty products
which will helps to attain the goals on specific time period.
MAIN BODY
Evaluation of the current external environment (PESTLE)
PESTLE analysis is the analytical tool which can be used by business organisation for
the purpose of find the current situation of external market so that future changes can be done
accordingly. Here, PESTLE stands for Political, Economical, Social, Technological, Legal and
Environmental (Cooke, E. F., 2015). In context of Scissor & Style, it is needed to understand that
can easily determine the external factor which can affect them at the time of accomplishing their
goal. Below there is the detail explanation PESTLE in context of Scissor & Style.
Political Factor: It is the external factor which is completely related with the political
and government decision which are being taken from the house of parliament. It includes
government policies, trade restriction, corruption etc. In terms of Scissor & Style, it can be said
that company can easily perform their business activity as UK is one of the area which is itself
known for political stability where long term decision can be taken for attaining the goals of a
company.
Economical Factor: It is the factor which determinant of an economic performance
which has a direct impact on the performance of a company. Different factors which are mainly
included in it are related with economic growth, inflation rates, interest rates exchange rates etc.
In context of Scissor & Style, it is one of the factor which will have directly or indirectly have a

impact on the performance of a firm because it will increase the overall expenses due to which
profit earning may decline in a significant manner.
Social Factor: It is the factor which scrutinize the social environment of the market. It is
needed to understand for any of the company that they must work according to the needed and
cultural trend if objectives are needed to be achieved within the specific time period. Discussing
about Scissor & Style, it is needed to understand for their employees that they must adopt
changes as per the trends of a market if they want to sustain within the market. Company might
get affected because of this factor because they needed to keep update themselves and it incurs
additional expenses.
Technological Factor: This factor includes innovation and introduction of latest
technologies which customers like the most (Scanning the Environment: PESTEL Analysis,
2016). There are number of situation where this types of technologies are always helpful because
it helps to complete any of the work in short period of time due to which working condition
becomes easier and faster. While talking about Scissor & Style, it is the factor which they must
consider because it will help them to attract more number of customers towards the organisation.
In short, although it will enhance the expenses of a company but still there will be more possibly
that they can develop the brand name in short period of time by using different types of
technologies.
Legal Factor: It is needed to understand for any of the business organisation that they
must work as per the legal laws and formed by the legislative body of the government. There are
certain terms and conditions which are needed to be followed by the company in order to
accomplish the goals. In context of Scissor & Style, they are required to take decision
considering each and every guidelines mentioned in legal factor which can directly affect
working policy of a firm. It can be one of the external factor which can affect the newly
incorporated firm.
Environmental Factor: People are various conscious towards environment as they
mainly factor on this activity which doesn't affect environment (Baines and et. al., 2017). In
context of Scissor & Style, they have planned to use organic creams and beauty products within
their salon so that customers will be delighted to use the services of a company. This factor
might affect the working policies of a company if they uses different products as per the climatic
situation because in that particular situation it might react on the customers of a company.

This are some of the external factor which are needed to be focused by the business
organisation like Scissor & Style because that is the only way through which their targets can be
accomplished in specific time period.
Discussion about Porter's Five Forces and what will be the competitive advantage
It can be explained that Porter's Five Forces is one of the model which will help to
identify and even analyse five competitive forces which gives idea to company find about their
weaknesses and strength so that organisation goals can be accomplished in specific time period.
It is the tool which was proposed by Michael Porter through which profitability of a company
can be analysed (Baldelli and et. al., 2018). In context of Scissor & Style, they will be helpful
just because of this respective model because they will be able to determine that what are their
strong area and where they are needed to improve so business goals can be accomplished.
Below, there is the detail explanation about the model which will help company to understand
and improve themselves if necessary.
Competitive Rivalry: This factor mainly consider the working policies and strength of
rivalry firm which can affect in accomplishing the goals. In context of Scissor & Style, they are
needed to understand and find that how they rivalries firm are performing and what are the
services they deliveries to their customers in order to attain their goals. This will help Scissor &
Style to perform better as they will get the idea that how they need to fix the price of any of the
product while delivering any of the services.
Supply Power: In this factor, it is needed to find that what are the capabilities of supplier
for increasing the price of a product. In context of Scissor & Style, there are number of suppliers
who can provide the products at a reasonable rate. It is one of the reason that bargaining power
of suppliers is very low within this sector. This can be helpful for business organisation as they
will have the option purchase any of the product at low price which will allow company to earn
greater amount of profit after entering into the market.
Buying Power: It is directly connected within the company that what are their
capabilities of buyer to reduce the price of provide while availing the services. Here, it is mainly
seen that at what price other firm are providing the services (Skripak, 2016). In context of
Scissor & Style, there are number of other firm which is providing similar form of due to which
their customers have high potential to put pressure upon company due to which they can easily
buy any of the services at a reasonable price. The competitive advantage which Scission & Style

can take within this is related that how they can set the price where buyers can be attracted so
that goals can be accomplished.
Threat of Substitution: Whenever any of the new product meets the same basic need
but in a different style then in that situation the profitability of a company reduces significantly.
In context of Scissor & Style, they are needed to understand that there are number of other
organisation who can provide similar form of products in the market which can be of very
reasonable price due to which profitability of a company can be reduced (Cadotte, 2016). In
order to understand that company wants to perform better then they must think that how they can
bring the better products which are of better quality and even the price being charged in it is very
low which will not allows customers to switch their preferences.
Threat of New Entry: The market of beauty salon are increasing day by day due to
which competition is very high in it. While looking at the situation it can be easily said that
company have the high threats of new entrants if they start the business (Phan Jr, 2019). But, in
order to take additional advantage from the market, company must ensure that they will
introduce different and new innovative idea in working style because that can be one of the way
through which new entrants will not create any of the problem for the company.
Discussion about who the target market will be and give proper justification
Segmenting, Targeting and Positioning (STP): It is one of the broad framework which
helps in summarizing and simplifying any of the any of the process in market segmentation. In
context of Scissor and Style, it will be one of the effective framework which will help them to
prepare the plans and policies that how they are needed to perform and which market they are
needed to target so that business goals can be accomplished within the specific time period.
Below, detail information about the model has been mentioned:
Segmentation: It simply explains that business organisation must plan in systematic
manner where they will divided whole of the work in different segment which will allow them to
perform every single task as per the requirement (DeNoble and Zoller, 2017). In context of
Scissor & Style, it will be one of the cost effective way for organisation. It is necessary for them
because they will know that which area they are going to focus more for the purpose of attaining
the goals of a company.
Targeting: It is necessary for every organisation to ensure that what their main target is,
so that their goals can be accomplished. In simple word, company like Scissor & Salon will

decided who will be their main target for accomplishing the goals. The main area age group
which they will focus the most will be between 20 to 50 years where people mainly like to give
preference to their looks and presenting themselves in front of others. This types of targeting can
be effective for company in accomplishing the goals.
Positioning: It is needed for Scissor & Style to ensure that they are going to build the
brand image of company within the market. In order to develop the brand image company will
give different offer which major discounts will be available on weekends where customers
mainly gets time to update themselves (Goldring, 2017). Even company will try to prepare the
logo which will help to recognise the company in market.
CONCLUSION
From the above file, it can be concluded that whenever any of the business organisation
introduces any of the new idea then they must ensure that they have carefully examined each and
every area so that business goals can be accomplished. Talking about PESTLE analysis, it is
helpful for business organisation because it helps to determine the external factor which can
affect the working policies of a company. The company can take the advantage from the existing
market only in the situation where they are able to be innovate with the help of latest
technologies. Also, the strategies of similar form of organisation must be considered because that
can create lots of issues in future period of time.

REFERENCES
Books & Journals
Baines, P. and et. al., 2017. Fundamentals of marketing. Oxford University Press.
Cooke, E. F., 2015. Marketing Literacy, A First Approximation. In Proceedings of the 1995
Academy of Marketing Science (AMS) Annual Conference (pp. 317-321). Springer,
Cham.
Baldelli, S. and et. al., 2018. Adult learners: a targeted marketing approach.
Skripak, S. J., 2016. Fundamentals of business. Virginia Tech.
Cadotte, E. R., 2016. Creating value in marketing and business simulations: An author’s
viewpoint. Journal of Marketing Education. 38(2). pp.119-129.
DeNoble, A. F. and Zoller, T. D., 2017. Is the business plan really dead and should it be?: a case
for the lean start-up approach. In The Great Debates in Entrepreneurship (pp. 21-34).
Emerald Publishing Limited.
Goldring, D., 2017. Pathways for 21st century learners: Integrating industry-based certifications
into the marketing curriculum. Journal of Higher Education Theory and Practice. 17(1).
Phan Jr, T., 2019. Starting a restaurant business in Finland: Preparing for opening a Vietnamese
restaurant in the city of Lahti.
Online
Scanning the Environment: PESTEL Analysis. 2016. [Online]. Available Through:
<https://www.business-to-you.com/scanning-the-environment-pestel-analysis/>