Essay:

Essay details:

  • Subject area(s): Marketing
  • Price: Free download
  • Published on: 14th September 2019
  • File format: Text
  • Number of pages: 2

Text preview of this essay:

This page is a preview - download the full version of this essay above.

Executive Overview:

 Eke to Chic is a full-service beauty salon dedicated to consistently providing high customer satisfaction by giving excellent service and quality products. It is not just a salon, but also incorporates retail and e-commerce to sustain an overall competitive market in the hair industry. Providing a full hair salon, as well as, the selling of hair products. The salon will provide service for hair care and consultations. Eke to Chic Studio is a sole proprietorship company founded by Krystal Waldo, CEO, in Orlando, Florida in 2010. We average 500 to 800 customers per month and sells hair products online as well. The full/part-time employees are on hourly/commission. Our chair rentals stylists pay $250 rent and $200 product fee bi-weekly. Within six years of business, it has generated an annual sale revenue of 1.2 million dollars. The company currently has 21 full-time and 19 part-time employees. That includes four main departments the retail store, full service salon, e-commerce business website and upper management office.

Mission Statement: Is to make a salon experience as unique as our clients. We are aiming consistently to give you the freshest styles and ideas. We will keep up with the current trends and constantly educating ourselves about the best practices. Our stylists support one another in their personal strengths and goals within the beauty industry and the community. It is our duty to pay close attention to the details of your service, maintain the highest standard in the cleanliness of our salon.

Vision statement:

We can only….

Improving communication

Motivating each other to achieve our goals

Advancing education on all levels

Giving back to our community

Innovating through new products and services

Never settling for less than excellence

Evolving as individuals and as a company

On the other hand, we can be it!

Philosophy on management

My philosophy on management is to have hands-on involvement within my business and I expect the same from my management staff. I will open communication with all employees, as I believe in an open door policy. Management and staff meetings led once a week to discuss any issues. Management is open to all new ideas providing it will assist in the overall goal of providing a grander product and service to our clients. My management team and I will be a positive influence to inspire the ability to "move" our employees thus encouraging a healthy work ethic between company and workforce. I believe in continuous training and education for not only management, but also my staff. I see this as being beneficial on a business and personal level. We strive to provide the staff with encouragement to become better career professionals.

Science vs. Art management

I believe management is a suitable combination of science and art because the science assembles a systematized body of knowledge and logic. That includes the use of rational, science-based techniques and mathematical models to improve decision-making and strategic planning. Management, as an art, requires everyday knowledge therefore just learning a theory is not passable. A manager is not just successful by obtaining a degree in management; they have people skills, which personalized by the level of success and quality of performance. This differs from one person to another based on knowledge, experience and personality.  Creativity is a way to aim at producing something that has never existed before which requires a combination of intelligence and imagination. Management combines human and non-human resources in a useful way to achieve desired results creatively.

Planning:

During the processes of planning a business, a SWOT analysis is useful to know the Strengths, Weaknesses, Opportunities, and Threats affecting or that may affect the business is the future.

Strengths

1. Having a well-rounded, experienced and educated management staff gives us a stable foundation and the ability to mentor our staff continuously in various situations. Employing the best people for the role will help to capitalize our business vision and mission statement. Having positive, hardworking people that strive to become better career professionals would help the business to grow stronger as one unit.

2. Giving training and continuing education service to management and staff within our business industry will keep us in a competitive state allowing improvement in areas where the company is lacking. It gives inspiration to people to be more creative and willing to participate in developing the identity of the business.

3. We have integrated technology within our services that will generate less risk and viable options for our clients. For instance, on the retail side, we market hair extensions, products and supplies where our clients have the digitally ability to view more hairstyles or information on products to help make their decision with ease. In addition, the business website will be a portal where clients can place orders, set up hair/nail appointments, seek product information, and acquire advice regarding hair and beauty.

Weaknesses

1. We are seeing that technology is helpful but very costly to maintain. Maintaining custom software and a website can be very expensive and time consuming if it goes down. Hiring additional technician staff is required to make sure all systems run smoothly. This can, at times, put a damper on our annual revenue and discourage customers from using it because it is not reliable. I still feel even with, the weaknesses described, that the interactive approach is a great asset to have to provide clients information and educate them on a current or potential future purchase.

2. We may have the best hair stylist and nail technician in town but my location is not so great. The business is located in a mild crime shopping mall area and it does give some customer a not so safe feeling especially new customer who is not familiar with the area.

3. I find it difficult to keep my hair stylists and nail technicians from competing against each other for customers. If my team can steal customers from one another then they can possibility do the same to business.

External opportunities

1. A chance to give back to the community by hiring certified cosmetology students from the community schools.  It will help give them real experience in the hair industry and grow professionally. In addition, new hires possess the knowledge on currently new hair trends, new hairstyles and styling methods. It gives employees an opportunity to introduced new product lines, brands in the salon's inventory, and contributes to attracting a new client market. This allows us to groom future entrepreneurs in this fast growing industry and provide city and state income within a growing small business community.

2. The hair and nail business is fast growing industries that also influence the social fashion world. Having completive pricing base on our geological region, we offer promotional discounts on multiple services for one transaction. Clients also have options to become club member to VIP member for a monthly fee with special benefits. In comparison with other salons in the surrounding area only may give five to ten percent off on just one service.

3. Having a social network will keep us in the loop while interacting with other business owners, stylist, customers, and venders. It can help seek venders who provide whole sell items cheaper than others do. Collaborating views, knowledge, and ideas in a worldly way.

External threats

1. Most external threat is improper training and knowledge.  That could lead to losing customers or even worse a lawsuit. It is impart that floor management and leads stay active on the salon floor and interacting with employees.

2. Neglecting to keep up with new regulated laws can hurt the business and cause economic distress in the business. This will have an adverse effect on the ability to capitalize business ventures and generate revenue. I feel that it is up to both the management team and myself to stay on top of all facets of the business and make sure all "ts'" are crossed, and "is'" are dotted!

3. High turnover rate with hair stylist and nail technician is a potential threat causing staff shortages and over workload. In addition, company trade secrets and special projects leaked by ex-employees or sub-contractors.

Three largest challenges

The three largest challenges my company faces is (1) company secrets being exposed, (2) competitive market, and (3) boosting staff morale.

1. To enforce and to protect the business confidentiality all employees and booth renters would have to agree to sign a unilateral non-disclosure and non-compete contract. Within both contracts if upon their termination or resignation from Eke to Chic a clause restricting employees' use and dissemination of company-owned confidential information.The non- compete states that employee agrees not to enter into or start a similar profession or trade in competition against the business in a five mile radius. These contracts will stay effect for the next two years after upon their termination or resignation.

2. Since this is a very fast pace industry the competitive market is aggressive. To disable the competition, get to know whom you are competing with and find their unique selling point. Thus, identify what is need to improve and to compete in a unique way that set the business apart more.

3. Towards boosting staff morale, I would add financial and social incentives to encourage better productivity and happy employees. Incentive could be bonuses, outside employee event and extra paid training. This should keep employees happy and loyal to the business.

Long Term Strategic goals

In the next three to five years, Eke to chic strategic goals is to create a service-based company whose goal is to exceed customer's expectations. Secondly, as the business grows to 2 million, we will open other venues to market, more of our business brand in wider regions as (Member Management) Limited Liability Company. Lastly, also adventure out on mergers with bigger retail markets to promote our signature hair products.

Tactical Goals

Three of our tactical goals for this fiscal year are to have our retail department increase profit margins but three percent and five present in online orders. On the salon side, need to increase marketing propaganda to create more new cliental. Overall, want to bring all department profit margin to 20 percent at the end out the 2015 year.

Organizing:

Eke to Chic Studio is adhocracy culture, ready to take risk and values flexibility. This type of culture allows us to create innovative products by being adaptable, creative, and quick to respond to changes in the marketplace. Employees are encouraged to take risks and experiment with new ways of getting things done. Ever more, I do understand that training and educating helps developing skills, improving productivity, quality of work, and building loyalty. Recognizing employees' weakness, strength, and ability to improve employee morale through training is important. Therefore, having a simple design will reflect the desires and personality of the “I.M.A.G.I.N.E” vision. The company was form as a dream and now it has a purpose to sustain our foundation to grow on. I will be heavily involved in every step it takes to keep it going and interact within the business. The only disadvantage is that I am only one person directing 50 employees and running a business at the same time. I would also have to resolve any issues that may arise with each department, which may be inefficient time management. This is where I will implement decentralized authority to level out my responsibility to my managers. This will allow them to solve their own problems within their department giving some authority to work better with the staff, increasing the organization's flexibility and efficiency. This will also prepare us in the transition of Member-Managed LLC. We will also maintain a friendly, fair, and creative work environment, which respects diversity, ideas, and hard work.

Member-Management Team and Duties

The company has assembled an experienced management team:

 Marketing Manager: John Smith, Masters International marketing, Stafford University

o In charge of all marketing and promotional projects. His main role is to build a brand, get people interested in our product and services, which in turns generate leads. He researches the market for opportunities of new products or improved services that helps support sales in that target market. All the information that is compiled also helps us stay completive with other salons.

 Financial Manager: Janna Davis, six years of experience as an account with a national firm.

o Ms. Davis is responsible for the financial health of the business. She produce reports, develop strategies and plans for the long- term financial goals of the business. She also deals with specific day-to-day cash and credit flow.

 Operational Manager: Adam Lloyd, BA Business Management, University of central Florida

o Mr. Lloyd is responsible for ensuring the business run smoothly and efficiently as possible. He also make sure product, service meet our employee, and client needs. He manages the hiring and assist with training of new employees. He monitors existing processes and analyzing their effectiveness. This would allow him to create strategies to improve productivity and efficiency.

 Training and Development Manager: JaLiha Allen, certified cosmetology, Paul Mitchel, AS business administration, seminal state college

o Ms. Allen oversees the training and development programs for employees. She helps other managers, supervisors and leads to improve their interpersonal skills in order to interact effectively with employees. She also assists with individual training plans to strengthen each department's existing skills or to teach new one.

 Retail Manager: Victor Martinez, BA Retail Management, University of Brighton

o He manages the sales team, the product inventory and the customer service management. Victor must coordinate policies and strategies with the chain management. He works closely with the advertising department to plans advertising campaigns and strategies to develop/increase the customer base.

 Salon Manager: Chelsea Figueroa, seven years of experience as an instructor cosmetology school

o Senior Hairstylist Lead: Jen Deja, certified cosmetology, Paul Mitchel

o Junior Hairstylist Lead: Chris Stulman, AS liberal arts, University of Wyoming, certified cosmetology, Paul Mitchel

Starting as a sole proprietorship organization had its advantages including easy for a starting up business with very few legal formalities, total control of management and profits. The disadvantage is that the owner assumes all personal liability for all business debts and obligations. If anything should happen within the business, I will be full responsible for it financially.

Due to the growth of the business and the demand of more managerial responsibility, it would only be right to merge into Member-Managed LLC. Member-management allows all members to share responsibility for the day-to-day running of the business. This works commonly with small businesses with limited resources and they don't need a separate management level to operate. Therefore, the organizational structure would have to change to a streamlined, without officers or boards of directors. As a result, it works for those who want to be directly involved in managing and operating their business. An operation agreement with be put in place to make sure everyone works equally. An operating agreement is a document that manages the internal operations of the business that compliments the specific needs of the business owners. Once the members sign the document, it acts as an official contract binding them to its terms.

 It also includes:

 Percentage of members' ownership

 Voting rights and responsibilities

 Powers and duties of members managers

 Distribution of profits and loses

 Holding meetings

 Buyout and buy-sell rules (procedures for transferring interest when members chose or in the event of a death)

The Advantages of Limited Liability Company in Florida:

 Pass-through taxation

o Members (owners) report their share of the LLC's profit or loss on their individual tax returns. Any tax due is then paid at the individual level. No double taxation!

 Flexibility

o No restrictions on the number of members allowed, and members have flexibility in structuring management of the company.

 Limited liability protections

o Member's personal assets are not liquidate to cover the debts or lawsuits brought against the company.

The Disadvantages of Limited Liability Company in Florida:

 Initial and ongoing fees

o LLCs are more expensive to form than sole proprietorships and general partnerships.

o profits may be subject to self-employment taxes

 Limited flexibility in ownership transfers

o Ownership is typically harder to transfer than with a corporation. The members must outline in the LLC's operating agreement whether or not ownership can be transferred and if so whether approval of the other members is required.

 Exceptions to Limited Liability Protection

o members of a LLC are not protected from liability if they commit certain actions like commit fraud, personally guarantee to repay a debt or negligently supervise the actions of an employee or another member that causes harm to a third party.

Leading:

The way I am managing this company is with managerial leadership where I can be both a manager and a leader. Managing is to facilitate how the business will run and making it clear what I expect from my employees to collectively accomplish the objective we set to succeed in growth. As a leader, I want to be an inspiration and lead good example for those who look up to me as a mentor. I want to influence my employees the reason why they should support this business. At the same time, inspire them to set their own path in the future to become better professionally. To accomplish this I would need an approach plan that brings both leadership and managerial in one.

 I believe a transformational leadership plan would work in my favor. However, I manage a business to seek profit but I also want to give back to the community. Best way to do that is to start with my employees.

...(download the rest of the essay above)

About this essay:

This essay was submitted to us by a student in order to help you with your studies.

If you use part of this page in your own work, you need to provide a citation, as follows:

Essay Sauce, . Available from:< https://www.essaysauce.com/essays/marketing/2015-12-5-1449281968.php > [Accessed 22.10.19].