Business Investigation Report for hair salon PDF

Preview

Summary

assignment...

Description

Contents Executive Summary.....................................................................................2 Introduction................................................................................................. 3 Industry background:...............................................................................3 Your company background：....................................................................5 BPMN diagram:......................................................................................... 6 BPI diagram for wash hair:.......................................................................7 Business opportunity...................................................................................7 SWOT analysis.......................................................................................... 7 Strengths:............................................................................................. 7 Weaknesses:......................................................................................... 7 Threat:.................................................................................................. 8 Opportunity:.......................................................................................... 8 SWOT analysis Table...........................................................................10 Fish bond:............................................................................................ 10 Technology solution:..................................................................................12 Old diagram:.......................................................................................12 New-diagram:...................................................................................... 12 Current System Integration.......................................................................13 References:............................................................................................... 14

Student ID：3675266 Student name： Leyan Huangfu Due to covid-19, I was unable to observe the business process of the business in Australian. so, I chose the hair salon I had an impression of.

Executive Summary This report is written by me as a business analyst, here I will do a short summary of

the whole report, in the section 2, I will briefly discuss the background of the entire hair dresser (Australian and global) and the main overview of this industry. Then I will use the BPMN diagram to depict the business process. Also, I will use the BPI diagram to expand the sub-process inside the BPMN diagram. In the section 3, I will use SWOT analysis to analyze your company's strengths and weaknesses as well as opportunities and threats from competitors. Here I will focus on opportunity, arguing whether there might be an opportunity to leverage technology or innovation to the benefit of your company. After that I will then use Visio to write a fish bond diagram to better describe the underlying problems and other minor issues. In the section 4, I will make a solution based on the problem shown in the fish bond diagram. The solution will show the specific change points in another BPMN diagram. Finally, in the section 5, I will take a small sample of business and indicate which activities will be affected by the new solution and I will specify which activities will change and which will be eliminated. In the section 6, I will list the reference of the whole report.

Introduction Industry background:

Year 200 7 200 8 200 9 201 0 201 1 201 2 201 3 201 4 201 5 201 6 201 7 201 8 201 9 202 0 202 1 202 2 202 3 202 4 202 5 202 6

Revenue ($ million)

IVA ($ million)

Establishments (Units)

Enterprises (Units)

Employment (Units)

477.4

160.0

657.0

32.0

3120.0

482.9

150.2

656.0

32.0

2950.0

512.6

145.6

660.0

31.0

3122.0

504.9

153.4

660.0

31.0

3107.0

501.3

168.4

660.0

33.0

3119.0

511.8

160.2

658.0

33.0

3066.0

502.7

156.9

657.0

33.0

3023.0

509.2

173.7

662.0

33.0

3171.0

535.4

166.5

665.0

33.0

3171.0

538.4

164.3

663.0

34.0

3144.0

505.7

158.8

655.0

34.0

3102.0

490.5

153.5

653.0

34.0

3141.0

499.4

156.3

656.0

34.0

3206.0

486.4

151.3

652.0

35.0

3189.0

489.6

152.7

655.0

36.0

3227.0

493.0

154.8

658.0

36.0

3269.0

495.6

155.1

661.0

35.0

3307.0

500.2

156.6

664.0

35.0

3307.0

502.9

157.4

667.0

34.0

3309.0

504.5

159.4

672.0

34.0

3330.0

data form: https://my-ibisworld-com.ezproxy.lib.rmit.edu.au/au/en/industryspecialized/od4114/key-statistics ( Matthew Barry , January 2020)

According to the data from IBIS world, we can see that the whole industry is facing a situation that increasing in revenue annually and slow increasing in employment. Therefore, the outlook for the industry is stable and on a gradual upward trend. Major markets of Australian industry(hair salon):

Category

Hairdressing and Barber Franchises

Women aged 45 to 64

32.6

Women aged 25 to 44

22

Men of all ages

19

Women aged 24 and under

13.4

Women aged 65 and over

13

Data from: report of

Behavior and Opinion on Salons: http://www.itandi.com/pdf/Survey%20white %20paperV6.pdf

According to this data that from IBIS world about percentage of the customers of their age and gender. We can know that what is the major customer group in Australian market. Although, your company are currently focus on Asian customers, but I believe the data could convince you to give a try in local market that can help us improve our profits obviously. Main services in Australian industry (hair salon):

According to this data that from IBIS world about normally, what the main services is Australian hair salon provide. Top 4 are hair coloring services, haircuts services, hair products selling and other hair-care services.

Your company background： In the hair cutting industry in Australia, it can actually be divided into two types, one that specializes in serving the locals, with barbers who are mostly locals and design their haircuts according to the Australian aesthetic. The other type is your company, which specializes in serving Asian students from China and China-Taiwan, South Korea, Japan and Vietnam, among other Asian countries. Thus, your employees are mostly Asian. It's a double-edged sword, although you can have a lot of Asian customers, you lose a lot of local customers. The barber shops that are your competitors will not only steal your Asian customers, but they can also have a lot of local customers as well. As a result, your profits will be split by your competitors. Moreover, your company sells high value and expensive Asian brand products, while your competitors sell affordable and reputable local skin care products. On the other hand, your company only support one payment method(card) would be a problem. Competitive advantage:

1. good location (Lot of language school around company) Thus, your company can have a great number of Asian customers. 2. Proximity to travel agencies, with which you can partner to win more potential Asian customers. 3. Experienced hairdressers and stores with a good reputation and a 10-year history. Data from web-site of YIMU hair salon. https://www.honee.com.au/v/melbourne/haircuts/yimu-salon

BPMN diagram:

BPI diagram for wash hair:

Business opportunity SWOT analysis This is the SWOT analysis for your business, Strengths: As you can see that your business have several strengths such as experienced hairdressers, free head massage and comfortable marketing approach(Take advantage of the free massage time to relax the customer to make the sale, in the case of giving free head massage the customer will not dislike this behavior!), also the good reputation(basic on long history reputation) and nice location(CBD). Weaknesses: As you can see from the process BPMN diagram, there is a waiting event as the customer have to wait for the hairdressers, thus, two hairdressers might not enough, that would decrease the rate of the customer serving, on the other hand, the hair-care products you sale in your business that is relatively expensive as you think the customer prefer Asian brand products. Moreover, your business is restricted in range of customers (prefer Asian customers) and payment method (only support payment in card). Threat: As you can see that from the SWOT analysis below, I have made

some analysis for your opponents. According to their policy, we can know that they were doing both markets (Asian markets and Local markets), so they really have experience for serving local customer, that is the reason they can have more profits than your business. On the other hand, your business imports hair-care products from Asian, but your opponent buy the goods from Local markets, not only they can have more profits, but also the products are cheaper for the customers.(as you need to pay for the tariffs and cost of the transformation fees). They also have more hairdressers than you as the local hairdressers are easier to hire than Asian hairdressers. Thus, in the waiting even, customer do not need to wait for a long time that could improve the customer services. Finally, they support various payment methods such as pay in cash, card or even Paypal pay and apple pay.

Opportunity: As I mentioned in the table below, I observe your business and find some opportunity that might improve your business for higher profits: firstly, I think you can cooperate with the travel agents where nearby, they were serving the Asian market, Because the long-time travel visitors also need a haircuts, women and girls rely on hair salon more than you can imagine! They would feeling more comfortable and may easier for communicate with Asian hairdressers as they may have language problem. On the other hand, there is a way to expand your payment methods, as you can see that in the BPMN diagram, less payment methods would really decrease the customer services, it might also make the customer consider for other salon instead. Therefore, I have fond some financial technology company they can support you for some different payment equipment for pay in card, cash, paypal and apple pay. They also support for some Chinese special payment methods such as Alipay and pay in Wechat (they can transfer the money to AUS pay to your account, it only spent 3 to 6 hours for transfer). Finally, there is a chance to improve number of customers, not only tapping into the local markets, but also there are several language schools where there are lots of international students to study in here every year from Asia.

data from: google map（location for language schools and travel agents）

according to the employment trends, we can know that, your industry can keep a stable increasing in people’s daily needs. As it is a basic demand in modern society. Therefore, don’t too worry about your business profits in future. It should be stable increasing! “ The hairdressing and beauty subsectors together generated revenue of $6.5 billion in 2018, and collectively employed 120,700 workers. It is a highly competitive sector which has been growing steadily over the past five years and is made up primarily of micro and small-to-medium sized business”. (AISC report for hairdressing)

Data from: Australian industry and skills committee. (for hairdressing industry)

SWOT analysis Table STRENGTHS 1.Experienced hairdressers 2.Free head massage 3.Comfortable marketing approach

WEAKNESSES

4.Good reputation 5.Nice location

1.Low number of hairdressers. 2.The products marketed were relatively expensive. 3.Restricted range of customers. 4. Restricted payment method.

OPPORTUNITY

THREAT

1. There are many travel agents serving the Asian market nearby. 2. Cross-border aggregated payments Financial technology companies 3. tapping into the local markets (potential customers) 4. There are many international language schools around. (potential customers)

1.opponent have more experience for serving local customer 2.opponent focus on selling Affordable local skin care products 3.opponent have advantage in the number of hairdressers (including local and Asian hairdressers) 4.support various payment methods.

Fish bond:

As you can see that the fish bond is made for describe the problems. According to the SWOT analysis I did. We can know that the main problem is not enough customers. That is due to hair-care products that are expensive (tariffs and cost of transformation) and simply think customer prefer the Asian products (wrong customer taste targeting). Secondly, due to the problem of the hairdressers as your business do not have enough number of hairdressers (customer need to spent long time wait for hairdresser finish their last customer haircuts) and only hire Asian hairdressers (do not have enough experience for serving local customer). Thirdly, there is a problem about payment methods, because your business has a outdated payment systems, so your business only support for less payment method. Finally, there is a wrong strategy in your range of customers, you are focusing on Asian markets, but your opponents were also doing a both business in Asian and local markets. Therefore, your company do not have enough experience for service local customer, result in less local customer choose your business. Thus, those problems could be figure out by strategic alignment and technology of payment system upgrade.

Technology solution: Based on the issues I raised in the last few sections and the technological

innovations involved, I'm suggesting that your company, try working with an aggregated payment technology company, which will make a big difference in the way your company will be able to pay with credit cards, cash, paypal, Apple Pay and the Chinese AliPay and WeChat Pay. This will be a key way to attract and retain more customers as it can improve the customer experiences! They can feel more convenient . According to the diagram below, we can see that there is an only one payment method (card). After your company adopt my suggestion, the diagram would upgrade like the diagram in the right side:

Old diagram:

New-diagram:

Current System Integration After the new technology involved, the business would change like

the new BPMN diagram described. The payment method task would change to a payment gateway, the customer can have more choices for make payment. Therefore, the change would appear, there is a new gateway for check if the payment method is the cash that decide if the receptionist need to find changes for customers and other task are not affected yet such as finish haircuts and receive payments.

References: 1. industry background data from: IBIS WORLD report for hairdresser industry https://my-ibisworld-com.ezproxy.lib.rmit.edu.au/au/en/industryspecialized/od4114/key-statistics ( Matthew Barry , January 2020)

2. the map data from: google map （ location for language schools and travel agents） https://www.google.com/search? sxsrf=ALeKk01noKuBdh2iZjTcTyeQtXp_bQBboQ:1598117881505&q=travel +agent+melbourne&npsic=0&rflfq=1&rlha=0&rllag=37816825,144966695,401&tbm=lcl&ved=2ahUKEwjCn4uFra_rAhVYxzgGH Y7OAwQQtgN6BAgMEAQ&rldoc=1#rlfi=hd:;si:;mv:[[37.8061042,144.9941178],[-37.850963199999995,144.9509261]];tbs:lrf:! 1m4!1u3!2m2!3m1!1e1!1m4!1u2!2m2!2m1!1e1!2m1!1e2!2m1!1e3! 3sIAE,lf:1,lf_ui:1

3.data of the industry trends and employment trend from (AISC report for hairdressing): https://nationalindustryinsights.aisc.net.au/industries/personalservices/hairdressing

4. your business data from website of YIMU hair salon. https://www.honee.com.au/v/melbourne/haircuts/yimu-salon

5. Age and gender of customer data from: report of

Behavior and Opinion on Salons: http://www.itandi.com/pdf/Survey%20white %20paperV6.pdf...