FOM Final Paper 1
FOM Final Paper 1
Submitted to:
MR. EDGAR L. CHANG, MBA
Submitted by:
BASA, JOHN PAUL A.
CASTRO, ARIELLE ROSE M.
COLCOL, DONNA MAE D.C.
DELA CRUZ, JULIAN PAUL YEOJ M.
GALLARDO, JENNYLYN B.
PATACSIL, KEZIAH DHERENCE M.
TANDIAMA, ROCELLE S.
BSBA 1A – P.A.C.E.D.
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LIST OF TABLES
Table 1: Art Angel’s Hair and Nail Salon Best Sellers 8
Table 2: Forecast Accuracy Metrics 38
Table 3: Flow Chart Process 50
Table 4: Action Programs 55
LIST OF FIGURES
Figure 1: Art Angel’s Hair and Nail Salon 5
Figure 2: Art Angel’s Product Pricing 7
Figure 3: Organizational Chart 9
Figure 4 Michael Porter’s Five Forces Evaluation 17
Figure 5 SWOT Analysis 19
Figure 6.1: Labor Productivity Formula 36
Figure 6.2: Labor Productivity Calculation 36
Figure 7: Line Graph of the Actual and Forecast Sales 39
Figure 8: Availability 40
Figure 9: Service Blueprint 41
Figure 10: Renovated Facility Layout 44
Figure 11: Tasks Needed to Complete the Operation Process 47
Figure 12: Precedence Diagram of Operational Tasks 47
Figure 13: Cycle Time 48
Figure 14: Efficiency Rate 4
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CHAPTER I
BACKGROUND OF THE STUDY
Within the dynamic and competitive landscape of the hair salon industry, proprietors
encounter several challenges in their pursuit of success. Above these challenges is keeping up
with the latest trends and styles. In today's rapidly evolving fashion milieu, staying informed and
attuned to client preferences is important. Despite time constraints, salon owners must devote
dedicated periods to online research and participation in industry events, such as hair and beauty
exhibitions, to maintain a competitive edge. By showcasing their adeptness and proficiency,
salon owners can affirm their capacity to cater to diverse clientele.
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CHAPTER II
PURPOSE OF THE STUDY
The purpose of this study is to equip Art Angel's Hair and Nail Salon with comprehensive
knowledge about the common challenges prevalent in the salon industry, both presently and in
the foreseeable future. By identifying and understanding these challenges, the salon will be better
prepared to navigate and mitigate potential obstacles that may arise, thus safeguarding its
sustainability and growth.
In addition to recognizing the challenges, this study aims to provide valuable insights and
potential solutions to address them effectively. Through thorough analysis and research, the
salon will gain actionable strategies to tackle issues such as keeping up with industry trends,
competing with neighboring brands, and attracting and retaining clients. By implementing these
solutions, Art Angel's Hair and Nail Salon can enhance its operational efficiency and
effectiveness, thereby optimizing its overall performance and positioning itself for long-term
success.
Furthermore, this study seeks to offer innovative ideas for improving the salon's overall
operations. By exploring avenues for innovation and efficiency enhancement, such as adopting
new technologies, refining marketing strategies, and optimizing customer service protocols, the
salon can further differentiate itself in the market and capitalize on opportunities for growth.
Ultimately, the purpose of this study is to empower Art Angel's Hair and Nail Salon to
proactively address industry challenges, implement strategic improvements, and achieve
sustainable business growth and success.
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CHAPTER III
COMPANY PROFILE
Figure 1: Art Angel’s Hair and Nail Salon. Image Courtesy of the Salon’s Facebook Page.
Art Angel’s Hair and Nail Salon, located along McArthur Highway in Calvario, City of
Meycauayan, Bulacan, is a hub for personalized grooming and self-care services. Established in
March 2020 by entrepreneur Camille Ninobla, the salon embodies her family's shared love for
beauty and wellness. Despite initial challenges due to the COVID-19 pandemic, the salon opened
its doors on June 18, 2020, signaling a commitment to turning their passion into a successful
business.
In its early stages, Art Angel’s received financial support from Camille's mother, Candy
Ninobla, enabling the salon to start operations. As the business grew, Camille repaid the
borrowed funds diligently. However, the salon faced staffing issues in its second year, leading to
resignations and performance concerns among key staff. To address this, Camille appointed one
of her cousins as the officer in charge, resulting in a positive turnaround.
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Operating in the competitive beauty and grooming industry, Art Angel’s specializes in
essential salon and nail spa services tailored to its customers. Their offerings include hairstyling,
nail treatments, and grooming services. Moreover, the salon caters to diverse customers, from
working professionals seeking convenience to women and men looking for personalized
grooming. Despite competition from local salons like Zaicut Salon, Nail Corner in SM Marilao,
and Artista Salon, Art Angel’s sets itself apart through personalized service and customer care.
Aligned with Republic Act No. 9501, Art Angel’s operates as a sole proprietorship,
embodying the essence of a Micro, Small, and Medium-sized Enterprise (MSME). With a
dedicated team, the salon upholds its commitment to personalized service, aiming to redefine the
grooming experience for its clients.
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rebonding, and perming. The salon also specializes in treatments such as Argan Treatment, hair
masks, and spa sessions to rejuvenate and revitalize clients' hair.
Complementing its hair services, Art Angel's provides an extensive selection of nail
treatments to enhance the beauty of clients' hands and feet. These include standard manicures
and pedicures, trendy gel polish applications, and nail extensions using polygel or acrylic,
ensuring clients leave with perfectly groomed nails and a boost in confidence. Additionally, the
salon offers indulgent treatments like foot spas, jelly spas, and hand paraffin sessions for
relaxation and rejuvenation.
Beyond hair and nail care, Art Angel's caters to various other beauty needs. Clients can
indulge in leg massages, professional waxing services, precise threading for eyebrows and legs,
and luxurious eyelash extensions. The salon's dedication to detail, use of top-notch products, and
commitment to customer satisfaction are evident throughout its services.
Figure 2: Art Angel’s Product Pricing. Image Courtesy of the Salon’s Facebook Page.
Art Angel's Hair and Nail Salon's top three best sellers exemplify the salon's commitment to
excellence, innovation, and customer satisfaction, providing clients with exceptional beauty
experiences that leave them feeling confident, glamorous, and pampered.
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Hair Rebond with Color and Keratin:
This sought-after treatment offers clients the
trifecta of sleekness, vibrancy, and strength.
Starting with a specialized rebonding solution to
tame frizz and straighten hair, it seamlessly
transitions to rich, enduring hair color
application. Finally, a nourishing keratin
infusion fortifies strands, resulting in glossy,
resilient locks that dazzle for weeks.
Hair Perming:
A go-to choice for clients yearning for effortless
curls and waves that radiate charm and style.
Beginning with a personalized consultation,
skilled stylists expertly apply a gentle perm
solution to achieve the desired look. Carefully
wrapping sections of hair around curling rods or
rollers ensures uniform results, unveiling
stunning, long-lasting curls or waves that add
depth and character to their hair.
Table 1: Art Angel’s Hair and Nail Salon Best Sellers. Image Courtesy of the Salon’s Facebook
Page
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Organizational Structure
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Wilma Parinas – Cashier
Wilma Parinas manages the financial transactions at the salon as the cashier. With proficiency in
computer skills and a keen eye for accuracy, she ensures that billing, payments, and receipts are
handled efficiently and professionally.
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The management team at Art Angel's Hair and Nail Salon collaboratively contributes to
strategic decision-making. The owner, Camille Ninobla, values input and suggestions from each
team member and encourages open communication. Decision- making is informed by a
combination of their collective expertise, industry knowledge, and research to ensure that the
salon continues to thrive and meet its goals while providing exceptional services to its clients.
Owner, Manager, Supervisor, and Cashier: These key positions receive compensation in
the form of minimum wage in Bulacan, aligning with local labor regulations. This
ensures that they receive a fair and consistent salary for their roles.
Hairstylists and Nail Technicians: The hairstylists and nail technicians operate on a
commission-based system, earning a 10% commission for each client they serve. In
addition to commissions, they receive a daily allowance of 350 pesos. This compensation
structure incentivizes productivity while providing a stable base income.
All employees, regardless of their position, receive daily free snacks and rice,
contributing to their overall well-being. Employees who have been with the salon for over a year
are entitled to benefits such as Social Security System (SSS), PhilHealth, and Pag-Ibig,
enhancing their financial security and ensuring their well-being. Salaries and allowances are
disbursed every Saturday, providing employees with a predictable and consistent source of
income.
Art Angel's Hair and Nail Salon demonstrates a proactive approach to employee
compensation. The salon recognizes the needs of its employees and acknowledges their
contributions to the business. To motivate and reward long-term employees, the salon increases
allowances based on work performance and tenure. This approach is not only a testament to the
owner's dedication to her staff but also contributes to a positive working environment where
employees are motivated to excel and contribute to the salon's success.
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The compensation structure at Art Angel's Hair and Nail Salon is designed to align with
the company's financial performance and growth objectives. By offering a commission-based
system to hairstylists and nail technicians, the salon encourages them to maximize their client
base and contribute to revenue growth. The daily allowance and additional benefits, such as SSS,
PhilHealth, and Pag-Ibig, reflect the salon's commitment to the welfare of its employees.
Art Angel's Hair and Nail Salon operates as a sole proprietorship. This ownership
structure means that the business is solely owned and operated by Camille Ninobla, the founder
and owner. This structure provides Camille with full control over business operations, decision-
making, and profits. As of now, there are no plans to change the ownership structure of the
business. Art Angel's Hair and Nail Salon remains a sole proprietorship, and there are no
intentions to bring in investors or take the company public. The owner is committed to the
current structure, which allows her to maintain full control and manage the business according to
her vision and values.
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CHAPTER IV
STATEMENT OF THE PROBLEM
Art Angel's Hair and Nail Salon, like many others in the beauty industry, grapples with
several operational challenges that impact its sustainability and growth. One primary concern is
the constant need to stay abreast of evolving trends and styles in the beauty sector. As fashion
and beauty preferences evolve, the salon must adapt its offerings and services to meet the
changing demands of its clientele. Failure to do so risks losing relevance and competitiveness in
the market.
Moreover, Art Angel's faces the ongoing challenge of retaining existing customers while
simultaneously attracting new ones. With neighboring salons vying for the same pool of
customers, the salon must implement strategies to differentiate itself and create compelling
reasons for clients to choose their services over competitors. This entails not only providing
exceptional service but also fostering strong customer relationships and loyalty.
Furthermore, the presence of nearby competitors adds another layer of complexity to Art
Angel's business landscape. In a saturated market, distinguishing oneself from competitors
becomes important. The salon must identify its unique selling points and leverage them
effectively to stand out in the crowded marketplace. This may involve offering specialized
services, implementing innovative marketing campaigns, or enhancing the overall customer
experience.
These challenges affects various aspects of the salon's operations, including marketing,
customer service, and product offerings. By developing a comprehensive understanding of its
target market and competitors, Art Angel's can devise tailored strategies to address these
challenges and position itself for long-term success in the competitive beauty industry.
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CHAPTER V
OBJECTIVES OF THE CASE
The principal objective of this case is to propose practical solutions that can help Art
Angel's Hair and Nail Salon overcome challenges and improve their business performance. To
achieve this goal, the following concerns will be addressed, along with the most effective plan
procedures:
1. Competitor Analysis: How can Art Angel's Hair and Nail Salon identify the strengths
and weaknesses of their competitors to differentiate their brand and provide additional
value? This analysis aims to help the salon stand out from the competition and attract
more customers.
2. Forecasting: How can implementing new approaches strengthen Art Angel's profitability
during downturns and improve the accuracy of their sales forecasting? This objective
focuses on developing strategies to increase revenue and ensure consistency in sales
projections.
3. Service Design: How can Art Angel's maximize the reliability and effectiveness of their
service design by addressing customer concerns and leveraging them as opportunities for
improvement? This objective aims to enhance the quality of services offered by the salon
to meet customer expectations.
4. Process Selection and Facility Layout: What is the most effective process service plan
for Art Angel's to ensure safety while maximizing operational efficiency and achieving
their goals? This objective focuses on optimizing salon operations to deliver quality
services in a safe and productive environment.
5. Work Design and Measurement: How can Art Angel's establish effective procedures
and standards to ensure customer satisfaction and support staff well-being? This objective
aims to create a positive work environment that fosters employee satisfaction and
enhances service delivery.
By addressing these objectives, Art Angel's Hair and Nail Salon aims to improve its
competitiveness, profitability, and overall business performance in the beauty industry.
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CHAPTER VI
DELIMITATIONS, ASSUMPTIONS, AND LIMITATIONS
Delimitations
This study’s geographic scope is delimited to Art Angel’s Hair and Nail Salon located in
McArthur Highway, Calvario, City of Meycauayan, Bulacan, Philippines. Findings and
recommendations are tailored specifically to this salon and may not be applicable to
establishments in different geographical areas. Additionally, the study focuses on the period from
March 2020 to the present, limiting its analysis to challenges and solutions encountered within
this timeframe. Events occurring outside of this period are not considered in the study. Finally,
the research is specific to the hair and nail salon industry, and findings may not be generalizable
to other sectors within the beauty and grooming industry or other industries.
Assumptions
This study operates under the assumption that customer preferences and behaviors remain
relatively stable during the study period. It also assumes a stable economic environment and
consistent staffing levels and management practices at Art Angel's Hair and Nail Salon. These
assumptions provide a foundation for analyzing the challenges and proposing solutions to the
salon's operations and growth.
Limitations
Despite efforts to gather accurate and comprehensive data, this study is limited by the
availability and accuracy of information provided by Art Angel's Hair and Nail Salon and their
few customers during the interview of the researchers. Incomplete or inaccurate data may impact
the validity of the analysis and recommendations. Furthermore, external factors such as
government regulations, industry trends, and competitive actions may influence the salon's
performance, introducing variables beyond the study's control. Additionally, the study's
conclusions are based on qualitative analysis and subjective judgments, which may introduce
bias or limitations in interpretation.
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CHAPTER VII
COMPETITIVE ANALYSIS
Art Angel's Hair and Nail Salon operates in a competitive market within the beauty and
grooming industry. To understand its position relative to competitors, a comprehensive
competitive analysis is essential. The analysis involves identifying key competitors, evaluating
their strengths and weaknesses, and assessing their strategies to gain market share and attract
customers.
Competitor Analysis
1. Artista Salon: Located 140 meters away in Meycauayan, is a direct competitor to Art
Angel’s, offering both hair and nail services. Despite having a similar price range, Artista
Salon operates with a smaller space and a team of only six staff members. However, it
experiences heavy foot traffic due to its location, potentially attracting more walk-in
clients. Art Angel’s could leverage its larger space and possibly superior customer
service to differentiate itself from Artista Salon and attract customers seeking a more
personalized experience. Additionally, addressing any negative feedback about Artista
Salon's service quality could further enhance Art Angel’s competitive position.
2. Zaicut Salon: Located just 30 meters away from Art Angel’s Hair and Nail Salon, was
founded in 2018 and boasts a slightly wider space. Despite its proximity, Zaicut Salon
lacks advanced nail services such as polygel nail extensions and operates with only four
staff members. While it may pose some competition in terms of location and space, Art
Angel’s may have an edge with its more extensive range of services and possibly a larger
team.
3. Nail Corner: Situated 1.5 km away in from Art Angel’s Hair and Nail Salon, Nail Corner
specializes exclusively in nail services and is renowned for its advanced nail care options.
Unlike Art Angel’s, Nail Corner does not offer hair services. Although their space is
larger and they offer a wider range of nail treatments, their pricing tends to be higher,
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which may be a deterrent for price-conscious customers. However, Art Angel’s may need
to consider enhancing its nail services to compete effectively in this aspect.
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Bargaining Power of Suppliers (Moderate):
Suppliers in the salon industry, including those providing haircare products, nail polish,
and salon equipment, have moderate bargaining power. While there are multiple suppliers
available, switching costs can be significant, particularly for specialized products or equipment.
Additionally, the quality and reliability of suppliers can impact the salon's ability to deliver high-
quality services.
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well-positioned to maintain its position as a leading provider of salon services in the local
market.
SWOT Analysis
Strengths:
Prime Location: Art Angel's is conveniently situated in a busy commercial area, ensuring
good visibility and customer traffic.
Wide Range of Services: The salon offers a variety of hair and nail services to meet
diverse grooming needs.
Personalized Care: Art Angel's provides tailored consultations and treatments, boosting
customer satisfaction.
Skilled Staff: The salon boasts a team of experienced stylists and technicians, ensuring
top-notch service.
Strong Reputation: Art Angel's has built a solid brand known for its quality and
customer-focused approach.
Weaknesses:
Limited Marketing: The salon could benefit from more marketing efforts to increase
brand awareness.
Pricing Competitiveness: Art Angel's prices may need adjustment to stay competitive.
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Staffing Issues: Challenges with turnover and training could affect service consistency.
Weak Online Presence: Improving digital marketing and social media engagement could
attract more customers.
Lack of Advanced Services: Introducing more modern treatments could attract new
clients.
Opportunities:
Expansion Possibilities: Opening new branches in strategic locations could grow the
customer base.
Advanced Treatments: Introducing newer services could attract a wider clientele.
Enhanced Marketing: Investing in online marketing could reach more potential
customers.
Partnerships: Collaborating with influencers or local businesses could boost visibility.
Loyalty Programs: Offering incentives for repeat business could build customer loyalty.
Threats:
Competition: Facing rivals in the area and new entrants in the market.
Economic Challenges: Downturns could affect spending on luxury services.
Changing Trends: Shifts in consumer preferences may require adjustments.
Regulatory Compliance: Meeting legal standards could pose challenges.
External Disruptions: Events like disasters or health crises could disrupt operations.
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Social, Cultural, Demographic, and Environmental Forces
Art Angel's Hair and Nail Salon pays close attention to the factors like society, culture,
people's characteristics, and the environment that affect how it runs it business. These factors are
very important for the salon's success and its ability to adjust to changes in the market.
Art Angel's Hair and Nail Salon strategically caters to a discerning target market that
places high value on fashion and contemporary trends. This aligns seamlessly with broader social
and cultural shifts, where individuals increasingly prioritize personal grooming and embrace self-
care and aesthetics as integral components of their lifestyles. This cultural metamorphosis
towards self-presentation and aesthetics has undoubtedly played a vital role in the salon's
enduring success.
The demographic landscape serves as a significant boon for the salon's business
endeavors. The locale boasts a substantial population of women within Meycauayan City,
providing a robust customer base. Recognizing the evolving demographic dynamics, the salon
has adeptly expanded its services to include men, skillfully adapting to the changing market
composition.
Environmental factors hold a notable sway over the salon's operations. During adverse
weather conditions, such as storms leading to flooding, the salon faces temporary closures,
impacting its business continuity. To address this vulnerability and align with contemporary
environmental concerns, there exists an opportunity for the salon to explore and implement eco-
friendly practices. Such measures not only bolster the salon's long-term appeal but also
contribute to its resilience in the face of environmental challenges.
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The salon operates under the purview of a complex web of local and national regulations
governing various aspects of its business. These encompass not only general business guidelines
but also specific industry-related mandates. Compliance with these regulations is not merely a
formality but a fundamental necessity for the salon's day-to-day operations. Adherence to
employment laws, health and safety standards, and taxation requirements ensures that the salon
operates within the bounds of the law, mitigating risks associated with non-compliance.
The salon benefits immensely from the prevailing political stability in the region.
Political stability fosters a secure and predictable environment in which businesses can thrive. It
reduces uncertainties associated with abrupt policy changes or political unrest, allowing the salon
to focus on delivering quality services to its clientele.
The legal environment exerts a substantial influence on various facets of the salon's
operations. The acquisition and maintenance of licenses and permits are legal prerequisites for
the salon's continued operation. The salon ensures that these documents remain up-to-date for
regulatory compliance. Legal provisions governing labor rights, employment contracts, working
hours, and wage rates impact the salon's human resource management. Art Angel’s Hair and Nail
salon ensures adherence to labor laws to maintain a harmonious working environment and avoids
legal complications.
Taxation laws and regulations directly affect the salon's financial planning and
obligations. The salon’s accurate and timely tax compliance is essential to avoid legal penalties
and maintain financial transparency.
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Economic Forces
The Art Angel's Hair and Nail Salon operates within a marketplace that is significantly
influenced by the local economy. This influence is not a singular or isolated factor but rather a
complex interplay of various elements, all of which converge to shape the current market
conditions for the salon. Among these crucial elements, income levels and employment rates
stand out prominently as they wield a substantial sway over the purchasing capacity of the
salon's primary customer base.
In recent years, the salon has been fortunate to operate within a local economic landscape
characterized by a welcomed and reassuring constancy. This economic stability has been
instrumental in contributing to the salon's sustained patronage and the overarching stability
observed in the market.
One of the most noticeable ways in which these economic forces exert their influence on
the salon is through their direct impact on the spending capacity of their customer. The income
levels of the target market are a linchpin in determining both their willingness and ability to
indulge in the beauty and grooming services offered by the salon. When individuals enjoy higher
disposable incomes, they are naturally more inclined to allocate a portion of their earnings
towards self-care and aesthetic enhancements, which are at the core of the salon's offerings.
Recent years have witnessed a consistent and predictable trajectory in the economic
landscape, marked by a notable absence of volatility and turbulence. This economic stability,
parallel to a dependable foundation, has allowed the salon to anchor its operations, forecasts, and
strategic decisions securely. In such an economic climate, both the salon and its customers derive
considerable benefits, including the assurance of business continuity and financial security.
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The intricate interplay of economic forces stands as a pivotal and foundational element
within the Art Angel's Hair and Nail Salon's current market situation. These forces, which
encompass income levels, economic stability, and their potent influence on consumer behavior,
exercise a direct impact on the salon's day-to-day operations, pricing decisions, and overall
business sustainability. An astute awareness of these economic dynamics empowers the salon to
navigate the market with foresight and precision, ensuring its continued success and resilience.
Technological Forces
The salon operates in a dynamic landscape where technological forces are increasingly
influential. These forces have ushered in both opportunities and challenges for the salon's
operations, ultimately shaping its current market situation.
In recent years, technology has emerged as an important tool for marketing and
communication, revolutionizing how businesses interact with their target market. Art Angel's
Hair and Nail Salon has adeptly harnessed these digital channels to engage with its audience
effectively. Through the strategic utilization of online platforms, social media, and digital
advertising, the salon has extended its reach and visibility, thereby connecting with a broader
clientele.
Within the salon industry, technological forces have propelled advancements in service
offerings, catalyzing transformative service enhancements. Art Angel's Hair and Nail Salon has
diligently embraced these technological innovations to bolster its portfolio of services, enriching
the overall customer experience.
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A notable example of such service evolution lies in the realm of digital perming and nail
art. Technological innovations have facilitated the delivery of these services with precision and
finesse, offering customers the opportunity to explore cutting-edge aesthetic possibilities. These
advancements have not only augmented the salon's service menu but also resonated positively
with its discerning clientele, further solidifying its market position.
In essence, technological forces are a dual-edged element of Art Angel's Hair and Nail
Salon's current market situation. They enable the salon to expand its reach and enhance services
but also necessitate astute strategies to navigate the competitive digital landscape. By harnessing
technology effectively and continuously innovating its service offerings, the salon is well-
positioned to thrive in an era defined by technological transformation.
B. Microeconomic Forces
Microeconomic forces are specific economic factors that directly influence individual
businesses and industries rather than the overall economy. These forces encompass elements
such as suppliers, marketing intermediaries, competitors, publics, and customers, offering
insights into the intricacies of business operations and market dynamics for Art Angel's Hair and
Nail Salon.
Suppliers
Art Angel's Hair and Nail Salon relies on a network of suppliers to source essential
resources for its services. These suppliers include distributors of professional beauty products,
manufacturers of salon equipment and materials, and vendors offering consumables like hair care
products and nail polishes sourced from Korea and Japan. Nurturing strong relationships with
these suppliers is crucial to ensure a consistent and reliable supply of quality products and
materials that meet the salon's standards of excellence.
Marketing Intermediaries
Marketing intermediaries play a pivotal role in facilitating Art Angel's business activities.
These intermediaries encompass advertising platforms utilized for promoting the salon's services,
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social media channels that amplify the salon's online presence, and payment processing services
like mobile banking and GCash for efficient transaction handling. Leveraging these
intermediaries enhances the salon's marketing efforts, outreach initiatives, and customer
engagement strategies.
Publics
Art Angel's Hair and Nail Salon interacts with various publics, including customers,
employees, and the local community. Customers constitute the primary public and are
instrumental in driving business growth and sustainability. Employees represent an internal
public, and their satisfaction and dedication are paramount for maintaining service quality.
Additionally, the salon actively engages with the local community through initiatives such as
charitable donations during Christmas, fostering goodwill and bolstering its positive brand
image.
Customers
The salon caters to a diverse yet specific demographic of customers, primarily
comprising women aged 25 to 50 with above-average lifestyles and monthly incomes ranging
from 20,000 to 25,000 pesos. These customers seek high-quality grooming and self-care services
with a keen interest in fashion and trends. Art Angel's Hair and Nail Salon has tailored its service
offerings to align with customer preferences, providing a comprehensive range of services from
basic haircuts to advanced aesthetic treatments.
Competitors
In the fiercely competitive beauty and grooming industry, Art Angel's Hair and Nail
Salon contends with several local competitors, including Zaicut Salon, Nail Corner, and Artista
Salon. These competitors offer similar services and amenities, targeting the same demographic.
It is imperative for Art Angel's to closely monitor competitors' strategies, service offerings, and
pricing structures to maintain a competitive edge and differentiate itself in the market landscape.
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Managing internal factors is vital for Art Angel's Hair and Nail Salon's success. From
human resources to technology, these factors impact the salon's operations and competitiveness.
This overview highlights how Art Angel's strategically handles its internal elements to excel in
the beauty and grooming industry.
Human Resources
Art Angel's Hair and Nail Salon places significant emphasis on effectively managing its
human resources to ensure a skilled and motivated workforce. The salon employs a meticulous
hiring process to select candidates who align with its values and standards, followed by
comprehensive training programs to equip staff with the necessary skills and knowledge. Regular
feedback sessions, recognition programs, and team-building activities are organized to foster
employee engagement and boost morale, contributing to higher retention rates and a positive
work environment conducive to productivity and customer satisfaction.
Financial Resources
Art Angel's implements sound financial management practices to optimize the allocation
of its financial resources and ensure sustainable growth and profitability. This includes
developing detailed budgets and financial plans that accurately forecast revenue, track expenses,
and identify opportunities for cost savings. The salon carefully evaluates potential investments
such as marketing campaigns, staff training programs, and facility upgrades to prioritize
initiatives that offer the greatest return on investment and align with its long-term business
objectives.
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Product and Services
Art Angel's continuously seeks to enhance its products and services to meet the changing
preferences and demands of its customers. Through regular market research and customer
feedback analysis, the salon identifies emerging trends and opportunities to introduce new
services or improve existing ones. The salon encourages creativity and innovation among its staff
members, empowering them to develop unique and appealing services that set Art Angel's apart
from competitors and cater to the diverse needs of its clientele.
Technology
Art Angel's embraces technology as a strategic enabler to streamline its operations and
enhance the customer experience. The salon leverages digital tools and platforms such as social
media marketing and digital payment solutions to improve efficiency, convenience, and
accessibility for clients. Staff members receive training and support to ensure proficiency in
using these technologies effectively, enabling them to deliver personalized and high-quality
service while staying abreast of the latest industry trends and advancements.
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CHAPTER VIII
COMPETITIVENESS AND STRATEGY
Competitiveness
Art Angel's Hair and Nail Salon employs a unique approach to enhance its
competitiveness in the beauty industry. Central to its strategy is a relentless focus on product and
service design, where the salon continuously innovates to stay ahead of industry trends. By
offering cutting-edge treatments and staying updated with the latest techniques, Art Angel's
attracts clients seeking modern beauty solutions. Moreover, the salon prioritizes cost-effective
measures in its operations, including efficient resource allocation and bulk purchasing, allowing
it to offer competitive pricing without compromising profitability.
Strategically located in a prime commercial area, Art Angel's benefits from high visibility
and accessibility, drawing foot traffic and passing customers. This strategic positioning
maximizes exposure and convenience, giving the salon a competitive edge. Additionally, the
salon emphasizes quality in all aspects of its operations, maintaining high standards of excellence
to earn a reputation for reliability and customer satisfaction. By delivering superior service and
exceptional experiences, Art Angel's distinguishes itself from competitors and fosters customer
loyalty.
Prompt and efficient customer service is another key aspect of the salon's
competitiveness. Art Angel's prioritizes responsiveness to customer inquiries and feedback,
enhancing the overall experience and positioning the salon ahead of rivals. Furthermore, the
salon demonstrates adaptability by offering customizable services and scheduling options to
accommodate diverse client needs and preferences. This flexibility enhances its appeal and
competitiveness in the market.
Effective inventory and supply chain management practices ensure that Art Angel's
maintains optimal stock levels and receives timely deliveries of materials and products. By
optimizing its supply chain, the salon minimizes disruptions and ensures consistent service
quality. Moreover, Art Angel's invests in staff training and development to cultivate a skilled and
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motivated workforce capable of delivering superior service. Competent managers and workers
play a pivotal role in driving organizational growth and maintaining a competitive advantage.
Incorporating these operational strategies enables Art Angel's Hair and Nail Salon to
sustain its competitive position in the beauty industry. By continuously innovating, prioritizing
quality, and delivering exceptional service, the salon attracts and retains customers while
achieving long-term business success.
Hierarchical Planning
Mission
Art Angel’s Hair and Nail Salon’s Mission:
" Art Angel's Hair and Nail Salon is dedicated to enhancing the beauty and confidence of our
clientele through personalized grooming services. Our mission is to provide a sanctuary where
clients can indulge in luxurious treatments, expertly delivered by our skilled team of
professionals. We strive to exceed expectations by offering innovative hair and nail solutions
tailored to individual preferences, ensuring that every visit leaves our clients feeling rejuvenated
and radiant. At Art Angel's, we are committed to fostering a welcoming and inclusive
environment, where beauty meets exceptional service, and every client leaves feeling more
beautiful inside and out.”
Art Angel's Hair and Nail Salon's mission defines its fundamental purpose and values,
highlighting its dedication to providing outstanding grooming services tailored to each client's
needs. The mission emphasizes the salon's goal of offering a sanctuary where customers can
relax and revitalize themselves. Art Angel's aims to go beyond meeting expectations by offering
innovative solutions that cater to individual preferences, ensuring every visit leaves a lasting
impression. Moreover, the salon prioritizes inclusivity and hospitality, aiming to create a friendly
environment where every client feels valued and empowered. In essence, the mission
underscores Art Angel's commitment to excellence and integrity in the beauty industry, striving
to exceed customer expectations at every opportunity.
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Goals
Art Angel's Hair and Nail Salon is committed to providing exceptional beauty and
grooming services to its clientele. To further this mission, the salon has set several strategic goals
aimed at enhancing various aspects of its operations. Firstly, the salon aims to enhance customer
satisfaction by ensuring that each client leaves feeling pampered and delighted with their
experience. This goal includes achieving a customer satisfaction rating of 95% within the next
year, reflecting the salon's dedication to providing personalized care.
Additionally, Art Angel's seeks to expand its service offerings to cater to diverse
grooming needs and stay ahead of industry trends. The salon plans to introduce at least three new
advanced aesthetic treatments, such as diode laser hair removal and hydra facials, within the next
six months. By continuously innovating its services, the salon aims to meet evolving customer
demands and maintain its position as a leader in the industry.
Furthermore, the salon is focused on increasing its market presence by opening a second
branch in a strategic location within the next two years. This expansion will enable Art Angel's
to extend its services to a broader clientele and solidify its reputation as a premier destination for
beauty and self-care.
In line with its commitment to providing personalized care, Art Angel's also prioritizes
employee development. The salon plans to invest in ongoing training and development programs
for its staff, aiming to increase employee satisfaction and expertise. By nurturing its team, Art
Angel's aims to improve service quality and ultimately enhance customer satisfaction.
Lastly, recognizing the importance of digital platforms in today's market, Art Angel's
aims to enhance its online presence. The salon plans to revamp its website and increase social
media engagement, with the goal of doubling its online followers and website traffic within the
next year. This initiative will help boost brand visibility and attract new customers to the salon.
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These strategic goals serve as a roadmap for Art Angel's Hair and Nail Salon to achieve
its mission of providing exceptional beauty and grooming services while remaining competitive
and responsive to customer needs.
Organizational Strategies
Art Angel's Hair and Nail Salon has articulated organizational strategies aimed at guiding
the entire establishment towards achieving its overarching goals. Central to these strategies is the
salon's commitment to customer satisfaction, achieved through personalized care and attention to
detail. By prioritizing high-quality service delivery, soliciting and acting upon customer
feedback, and continuously refining service standards, the salon endeavors to ensure that each
client receives an exceptional experience.
Additionally, the salon seeks to expand its market presence by identifying opportunities
for geographic expansion. Through strategic analysis of potential locations and thorough
understanding of local customer preferences, Art Angel's aims to establish new branches in areas
where demand for its services is high. By staying attuned to emerging trends and maintaining
flexibility in its offerings, the salon aims to differentiate itself from competitors and maintain a
prominent position in the market.
Moreover, the salon maintains state-of-the-art facilities and equipment to provide clients
with a comfortable and modern salon experience. Regular maintenance and upgrades are
conducted to uphold the highest standards of quality and safety. Sound financial management
practices are also implemented to support growth and sustainability, including budgeting, cost
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control measures, and strategic investments to optimize financial resources and maximize
profitability.
In terms of product and services, Art Angel's continuously innovates its offerings to meet
evolving customer needs and preferences. Market research, product development, and service
enhancements are integral to ensuring that the salon remains at the forefront of industry trends.
Additionally, the salon leverages technology to streamline operations and enhance customer
experiences, adopting salon management software, online booking systems, and digital
marketing tools to increase efficiency and reach new customers.
On the other hand, operations refer to the tangible activities and processes involved in
carrying out the salon's day-to-day functions. This encompasses everything from scheduling
appointments, providing hair and nail services, managing inventory, to maintaining cleanliness
and hygiene standards within the salon premises. Operations constitute the actual "doing" part of
the process, representing the hands-on execution of tactics and strategies formulated to achieve
the salon's mission and goals.
Core Competencies
Art Angel's Hair and Nail Salon possesses several core competencies that contribute to its
competitive edge in the beauty industry. Firstly, the salon is known for its creative styling
techniques, thanks to a team of skilled stylists and technicians who stay abreast of the latest
trends and adeptly implement them to suit individual client preferences. This commitment to
innovation sets Art Angel's apart from its competitors, ensuring that clients receive unique and
trendy hair and nail services.
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Moreover, the salon excels in providing personalized customer service, offering tailored
consultations and services to meet the specific needs of each client. By fostering strong
relationships and enhancing customer loyalty through personalized attention, Art Angel's
maintains a loyal clientele base. Additionally, the salon emphasizes the selection of high-quality
products, ensuring superior results and customer satisfaction with every service.
Collectively, these core competencies enable Art Angel's Hair and Nail Salon to deliver
exceptional beauty services, build strong customer relationships, and sustain long-term success
in the competitive salon industry.
Operations Strategy
The operations strategy of Art Angel's Hair and Nail Salon is designed to align with the
overall organizational objectives while optimizing the efficiency and effectiveness of its
operations function. Firstly, the salon emphasizes customer-centricity by prioritizing
personalized service delivery and tailored consultations, ensuring that every client receives
individualized attention and satisfaction. This approach not only enhances customer experience
but also fosters loyalty and repeat business.
Moreover, Art Angel's focuses on maintaining high standards of quality across all its
services, from haircuts to nail treatments, by utilizing premium products and implementing
rigorous quality control measures. By consistently delivering top-notch service, the salon
differentiates itself from competitors and builds a reputation for excellence in the industry.
Additionally, the salon emphasizes continuous improvement and innovation by staying updated
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on the latest trends, techniques, and technologies in the beauty industry. This proactive approach
enables Art Angel's to adapt to changing customer preferences and market dynamics effectively.
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CHAPTER IX
PRODUCTIVITY
Productivity at Art Angel's Hair and Nail Salon measures how efficiently the salon
transforms input (labor hours) into output (hair and nail services). By monitoring and assessing
productivity, salon managers can gauge the effectiveness of their workforce and the overall
profitability of the business.
One method to evaluate salon productivity is by tracking the number of services provided
per hour of work. This approach remains reliable despite fluctuations in service prices or
additional services offered, providing valuable insights into the salon's operational efficiency. To
calculate this metric, the total number of services performed within a specific period is divided
by the total number of labor hours worked during that same timeframe.
Total Output
Labor Productivity = Total Input
During interviews with the salon owner, researchers gathered data on the average number
of services provided and the daily staffing levels. Based on estimations provided by the owner,
the salon produces approximately thirty (30) services per day, depending on the complexity of
each service. The salon typically employs nine (9) staff members per day, with each employee
working an eight-hour shift.
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Consequently, the analysis revealed that Art Angel’s Hair and Nail Salon achieves an
average of 0.42 service per labor hour. However, the owner cautioned that these figures are
approximations due to fluctuations in sales. On days with lower demand, the salon estimates
providing around 20 services per day with 0.28 service per labor hour
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CHAPTER X
FORECASTING
The provided data presents the actual and forecasted values for 2023 and 2024
respectively, shedding light on the accuracy and performance of a forecasting model using the
simple exponential smoothing.
The Mean Absolute Deviation (MAD) of P73,646.89 shows the average difference
between actual and forecasted sales, indicating the model's overall accuracy. In contrast, the
Mean Squared Error (MSE) of P8,727,858,677.21 measures the average size of errors,
highlighting significant discrepancies between forecasts and sales. The Mean Absolute
Percentage Error (MAPE) of 30.27% emphasizes the forecast accuracy by showing the average
percentage difference between predicted and actual values. This metric is helpful for evaluating
the forecasting model's practical implications for decision-making.
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Figure 7: Line Graph of Actual and Forecast Sales
The analysis begins in January, showing alignment between actual and forecasted values,
indicating a precise initial forecast. February sees noticeable discrepancies, hinting at
inaccuracies in the predictive model. March and April also show disparities, with the gap
widening. April highlights the challenges of predicting performance accurately. May and June
continue to show discrepancies, emphasizing the uncertainties in forecasting. The second half of
the year presents varying degrees of variance between actual and forecasted values. September
stands out with the actual value exceeding the forecast. October and November show
manageable disparities, but December presents a significant variance, showcasing the difficulties
in predicting end-of-year performance.
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CHAPTER XI
RELIABILITY
Availability
In the industry of having a salon business, availability is a percentage-based metric that
assesses Art Angel's Hair and Nail Salon's operational preparedness and capacity to serve
customers during regularly planned business hours. It captures the idea that the salon is not only
open in person but also actively and successfully running its company to provide clients with a
satisfying and reliable experience. The operating hours of Art Angel's Hair and Nail Salon are 10
a.m. to 6 p.m. This is an availability calculation:
Mean Time Between Failures: Assuming that the salon is open from 10 a.m. to 6 p.m., this is
the period that services are actively offered. That amounts to nine hours. Nine hours would also
be included if the salon is expected to be open from 10 a.m. to 7 p.m. on a standard business day.
In the context of the salon, availability entails 89% of the time Art Angel's Hair and Nail
Salon is open for business and able to serve clients. It serves as an indicator of the salon's
preparedness to assist customers during regular business hours.
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CHAPTER XII
SERVICE BLUEPRINT
The service blueprint of Art Angel's Hair and Nail Salon provides a visual representation
of the customer journey and the underlying operational processes involved in delivering its
services. It outlines the sequence of interactions between customers and salon staff, highlighting
touchpoints such as booking appointments, consultations, hair and nail treatments, and payment
processes. Additionally, it delineates the backstage processes, including inventory management,
staff training, and equipment maintenance, necessary to support the front-stage service delivery.
This blueprint serves as a valuable tool for identifying opportunities for improvement, enhancing
service efficiency, and ensuring consistent service quality across all customer interactions.
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Moreover, efficiency and prompt customer service play a vital role in enhancing satisfaction and
loyalty, as clients expect timely services without long waiting times. By consistently delivering
exceptional service quality, Art Angel's can cultivate trust and loyalty among its clientele,
thereby gaining a competitive edge in the market.
The salon must also prioritize the quality of its services, ensuring that each client receives
top-notch hair and nail treatments. Partnering with trusted suppliers for high-quality beauty
products and ensuring strict quality control measures will further enhance the salon's reputation
for excellence. Additionally, managing inventory effectively to prevent wastage and maintain
optimal stock levels is essential to minimize costs and maximize profitability.
Controlling the volume of appointments and services offered is crucial to maintaining the
freshness and quality of treatments, especially when using perishable beauty products. Art
Angel's should strike a balance between meeting customer demand and ensuring that each
service is delivered using fresh and high-quality ingredients or materials. Flexibility is key for
the salon to adapt to changing market dynamics, emerging trends, and technological
advancements. By remaining agile and responsive to industry shifts, Art Angel's can stay ahead
of the competition and continuously improve its offerings, marketing strategies, and overall
customer experience.
Facility Layout
Based on the observation of Art Angel's Hair and Nail Salon, the facility layout is
designed to accommodate various services and ensure a seamless experience for customers. The
salon comprises dedicated areas for different services, including a stock room, coloring area,
shampoo area, dryers’ area, spa area, manicure area, pedicure area, styling/haircut area, reception
area, waiting room, and comfort room. Each area is strategically organized to optimize workflow
and enhance customer satisfaction.
The stock room serves as a storage space for beauty products, equipment, and supplies,
ensuring that the salon is well-stocked and prepared for daily operations. Adjacent to this area is
the coloring area, where hair coloring and treatment services are performed, equipped with
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comfortable chairs and ample lighting for precision work. The shampoo area is designed for
relaxation, with reclining chairs and soothing ambiance for clients during hair washing.
Moving further into the salon, the dryers’ area features modern hair dryers and styling
stations for customers to complete their look after treatments. The spa area offers additional
pampering services such as facials and massages, providing a comprehensive beauty experience.
Meanwhile, the manicure and pedicure areas are equipped with nail stations and comfortable
seating for nail care services.
The styling and haircut area is the heart of the salon, where skilled stylists work their
magic to transform clients' hair. The reception area welcomes customers upon arrival, with
friendly staff ready to assist with appointments and inquiries. A designated waiting room ensures
that clients are comfortable while awaiting their turn, with amenities like magazines and
refreshments provided. Finally, the comfort room offers facilities for personal grooming and
hygiene, completing the salon's comprehensive service offerings.
Due to constraints during the visit, it's important to note that the owner of Art Angel's
Hair and Nail Salon did not provide a photo of their facility layout. Additionally, the researchers
were unable to take photos during the visit due to the high volume of customers on that particular
day. Therefore, the description provided is based solely on observations made during the visit
and may not include visual representations of the salon's layout.
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Need for Layout Planning
Hair and nail salons are a fundamental part of the beauty industry, there is a need for
layout planning to guarantee that the facility will actually be able to accommodate more clients
even in their busiest hours, offering a wide range of services to clients that seek for grooming
and pampering experiences. There has been an increased spotlight on enhancing the customer
experience and working on functional efficiency within salon spaces. Effective management and
segregation of tasks across the facilities of the salon may likewise be seen with these
improvements. Additionally, it extends the comfortable experience for customers and a one-of-a-
kind experience in the salon. A very much planned facility design assumes an essential part in
accomplishing these goals by optimizing space utilization, further developing the work process,
and creating a pleasant atmosphere for both customers and staff.
The following sections on the renovated facility plan of Art Angel’s Hair and Nail salon
may not be focused on the salon's real proportions and measurements of its current facilities,
however, it estimates the ideal features of the actual area in order to cater additional customers, it
is subjected to the changes that have been made. The focus and main subject for changes are the
additional stations, more strategic arrangements, and more space for the staff to swiftly execute
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the service for their customers. Art Angel Hair and Nail Salon is located on a national highway
for reference. The performance, productivity, efficiency, and faster service are the intentions of
the changes provided on the plan, to eliminate longer queue time, inconvenience, and
inefficiency of alternate usage of the equipment per client that happens most of the time.
Experience and relaxation is one of the key-points and highlights that the clients expect
when they go to a salon. That’s why the space that the company occupies plays a special role in
order to effectively function and provide its service to their clients, that makes the layout
planning a necessary factor in being able to improve the facilities and the employee’s access to a
wider workplace and the best quality of service for the customers. One of the benefits of making
a layout plan is first, the company will be able to cater more clients swiftly with more space, that
will make the workflow convenient and possibly reduce the time process of each service. The
ability to give the customer a stress free environment while providing pampering services will
give the customer an excellent experience in the salon that will potentially make them come back
for another appointment.
The newly renovated mockup of Art Angel’s Hair and Nail salon above is strategically
updated on its arrangements and placement of stations. Advertisements, posters, promotions, lists
of services and its prices are posted outside the store in order to let people know the services and
offerings they provide, additionally it encourages people to inquire and try their services and
offerings. The customers will be greeted by the receptionists when they enter the store, that is
also where the people will have their payment after service. The reception desk is positioned to
provide a clear view of the salon floor, allowing receptionists to greet customers promptly and
manage appointments efficiently. After setting an appointment and consultations in the
receptionist, there are sofas provided as a waiting area for the customers and their companions,
to queue comfortably before they get assisted to their allotted stations on where the crew will
provide its service.
There are different sections inside the functional area of the facility, The styling area is
the heart of the salon, where hair cutting, styling, and other hair-related services are performed.
styling stations are strategically arranged to optimize space and facilitate easy movement for
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both stylists and customers. Along with the styling area, the shampoo area is also dedicated for
hair care treatment where hair washing and conditioning are being performed. The pedicure area
is dedicated to providing nail care services including pedicure and nail care treatments. The
manicure area is where the treatment and styling of fingernails will be provided. Manicure
stations are equipped with comfortable seating and adequate lighting to facilitate nail care
procedures. The spa area is designed to provide additional pampering services such as facials,
massages, and waxing. Private treatment rooms are available for customers seeking a more
intimate and relaxing spa experience. The dryers’ area is dedicated to hair drying services,
including blowouts and styling. Dryer stations are equipped with comfortable seating and
overhead dryers to ensure efficient and comfortable hair drying experiences. The coloring area is
dedicated to hair coloring services, including dyeing and highlighting.
Top-notch salon and nail spa services is one of the missions of Art Angel’s Hair and Nail
services, that caters to the customers to enhance beauty, confidence, and their well-being.
Providing the best quality of space and environment, relaxation and customer experience is
highly valued and observed. The missions and values are achieved through warmth, and
exceptional grooming and self-care that the company provides.
In this situation, Art Angel’s Hair and Nail salon can benefit by conducting this
operational planning workflow that can boost and process their estimated output to get more
efficiency and a swift working process for the employees. With this process, efficiency and
productivity is centered in being able to maintain and manage the number of output and
productivity per day. In addition, with this process of planning the business owners can identify
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future problems and solve inconveniences of the working process that makes the business less
productive.
Figure 11 shows the list of tasks needed in order to complete an option process for the
business. It is gathered and analyzed through the service blueprint that has been previously
provided.
Tasks needed to complete the operations process for Art Angel’s Hair and Nail Salon
Figure 12 below shows a precedence diagram where it represents the actual work flow of
different stations inside the salon, the figure is provided to establish better understanding of the
sequence of tasks.
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The two figures above is directly related to each other as they shows the precedence
diagram of the tasks needed to complete the operation process and minutes of how long a task
can be done. Meanhile, shown in the Figure 13 below is the computation of the cycle time per
production, in other words, the result of the computation shall be the total time of processing and
the end time of each service provided. Given the formula, operating time per day, which is
represented the working hours per day or 8 hours that is equivalent to 480 minutes, and the
desired output per day of 50 paying customers in a day gives us a cycle time of 9.6 minutes.
480 minutes
-----------------------------------
50 Customers per day
5 + 1 + 3 + 180 + 90 + 40 + 40 + 1 + 5
= -------------------------------------------------------
39 x 9.6
365
= ------------------
374.4
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Figure 14 above shows the formula and computation of how efficient is the productivity
of the company with the tasks that are needed to be done to complete a process of service and the
number of stations that the business has. Given the formula, the total task time which is the sum
of all duration of tasks provided in the recent figures is needed in able to get conclusions of our
efficiency rate which summed up to 365 minutes, and the product of number of stations and
cycle time, which is 374.4. The results showed that the efficiency rate of Art Angel’s Hair and
Nail Salon resulted in a quotient of 97.49%.
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Work Design and Measurement
Movement
Inspection
Operation
Storage
Delay
Flow Process Chart: Art Angel’s Hair
and Nail Salon
DETAILS IN METHOD
The client enters the salon and approaches
the receptionist
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A brief delay occurs during the payment
process
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CHAPTER XIII
CONCLUSION
The detailed analysis of Art Angel's Hair and Nail Salon presented by the researchers
sheds light into the operational intricacies of Art Angel's Hair and Nail Salon, offering a
comprehensive understanding of its strategies, practices, and customer-centric approach within
the competitive beauty industry landscape. In addressing the multifaceted statement of the
problem, we have scrutinized each aspect of the salon's operations across twelve chapters,
providing nuanced insights and actionable recommendations to overcome challenges and
optimize performance.
Firstly, the pursuit of competitiveness was explored through Art Angel's unique approach
to product and service innovation, strategic positioning, and uncompromising commitment to
quality. By staying abreast of industry trends, offering cutting-edge treatments, and prioritizing
customer satisfaction, the salon has successfully distinguished itself in the market, attracting and
retaining a loyal clientele. However, sustaining this competitive edge requires ongoing
innovation, strategic marketing, and a relentless focus on service excellence.
Secondly, the quest for productivity enhancement was addressed through methods such
as tracking service output per labor hour, optimizing resource allocation, and leveraging
technology. By streamlining operational processes, investing in staff training, and embracing
digital tools, Art Angel's has achieved significant productivity gains while maintaining service
quality and customer satisfaction. Nevertheless, continuous monitoring and improvement are
essential to sustain and further enhance productivity levels amidst evolving market dynamics.
Thirdly, forecasting accuracy was scrutinized through the evaluation of forecast accuracy
metrics, enabling the salon to make informed decisions and minimize discrepancies between
predicted and actual sales. By refining forecasting models, leveraging data analytics, and
monitoring market trends, Art Angel's can anticipate customer demand more accurately,
optimize inventory management, and enhance profitability. However, ongoing refinement of
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forecasting methodologies and adaptability to changing market conditions are critical for
maintaining forecasting accuracy over time.
Fourthly, reliability was ensured through availability metrics, demonstrating the salon's
readiness to serve customers during regular business hours and uphold its reputation for
professionalism and service excellence. By maintaining high availability, operational
preparedness, and customer-centric service delivery, Art Angel's instills confidence and trust
among its clientele, fostering long-term relationships and loyalty. Nonetheless, continuous
monitoring of operational performance and proactive management of service disruptions are
essential to ensure sustained reliability and customer satisfaction.
Finally, the optimization of the service blueprint and facility layout was examined to
provide a seamless and satisfying customer experience. Through meticulous planning of
customer interactions, operational processes, and facility design, Art Angel's creates a
welcoming and comfortable environment conducive to relaxation and pampering. By
strategically organizing service delivery areas, enhancing workflow efficiency, and optimizing
space utilization, the salon maximizes operational efficiency and enhances customer satisfaction.
However, ongoing refinement and adaptation of the service blueprint and facility layout are
necessary to accommodate evolving customer preferences and market trends.
In conclusion, this study has addressed the problems of the salon and offered detailed
insights to optimize performance across various operational dimensions. By embracing
innovation, prioritizing customer satisfaction, and continuously refining operational practices,
Art Angel's is well-positioned to sustain its competitive edge and achieve long-term success
within the dynamic beauty industry landscape.
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CHAPTER XIV
RECOMMENDATIONS
Art Angel's Hair and Nail Salon should embark on a comprehensive branding initiative
aimed at establishing a distinct identity and delivering a memorable salon experience. This
entails a multi-faceted approach, starting with a thorough analysis of the salon's core values,
target demographic, and competitive landscape. Through this process, the salon can identify its
unique selling points and craft a compelling brand story that resonates with its audience.
With a clear brand strategy in place, Art Angel's can proceed to implement visual
elements such as logo design, color schemes, and interior decor that reflect its brand personality
and create a cohesive salon environment. Additionally, the salon should focus on creating a
unique customer journey by offering personalized consultations, customized services, and
attentive care at every touchpoint. By consistently delivering on its brand promise and providing
an unparalleled salon experience, Art Angel's can differentiate itself from neighboring
competitors and attract a loyal customer base.
To stay ahead of the curve in an ever-evolving industry, Art Angel's should prioritize
ongoing education and training for its staff. This involves regularly updating employees on the
latest trends, techniques, and product innovations through workshops, seminars, and professional
development courses. By investing in the skill development of its team members, the salon can
ensure that it remains at the forefront of beauty trends and can offer cutting-edge services to its
clients. Additionally, providing opportunities for staff to obtain certifications and qualifications
in specialized areas can further enhance the salon's credibility and expertise.
Building brand awareness and attracting new customers requires a strategic approach to
marketing and promotion. Art Angel's should develop a comprehensive marketing plan that
leverages a mix of online and offline channels to reach its target audience effectively. This may
include creating engaging content for social media platforms, partnering with local influencers or
beauty bloggers, and running targeted advertising campaigns. The salon should also focus on
building relationships within the community by participating in local events, sponsoring charity
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initiatives, and collaborating with neighboring businesses. By consistently communicating its
unique value proposition and engaging with potential customers, Art Angel's can increase its
visibility and attract a steady stream of new clientele.
Building strong relationships with both existing and potential customers is essential for
long-term success. Art Angel's should implement a robust customer relationship management
(CRM) system to gather and analyze customer data, track preferences and purchase history, and
personalize communication. By segmenting its customer base and tailoring marketing messages
and promotions accordingly, the salon can provide a more personalized experience that resonates
with individual clients. Additionally, implementing loyalty programs, referral incentives, and
VIP perks can help incentivize repeat business and foster customer loyalty. Regularly soliciting
feedback from customers and actively addressing their concerns demonstrates a commitment to
customer satisfaction and helps strengthen the salon's reputation for exceptional service.
Action Program
Contingency
Specific Plan or
Area of Resources Time Accountable
Strategy Activities or Alternative Controls
Concern Needed Frame Persons
Tactics Course of
Action
Create a Comprehensive Conduct market
Unique Brand Branding research and Regularly
Marketing Adjust branding
Identity Initiative competitor review market
budget and 1-2 Marketing strategy based
analysis to trends and
Research months Manager on research
identify gaps and competitor
tools findings
opportunities in strategies.
the market.
Develop a brand
positioning Refine Monitor
Branding
statement and positioning customer
team and Branding
core values that 2-4 weeks based on feedback and
Creative Team
differentiate Art feedback from adjust branding
professionals
Angel's from stakeholders. accordingly.
competitors.
Design visual Graphic 1-2 Design Team Iteratively Regularly
elements such as designers and months review and assess visual
logo, color Interior refine designs consistency
palette, and decorators based on across all
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salon decor that
reflect the brand feedback. touchpoints.
identity.
Identify training
needs and
opportunities Monitor staff Regularly
Training
based on performance and evaluate staff
budget and Salon
industry trends, Ongoing adjust training performance
Industry Manager
customer programs as and skill
resources
feedback, and needed. development.
staff
assessments.
Provide access
to workshops, Evaluate
seminars, and Training effectiveness of Solicit
Continuous
Staff Skill online courses materials and training feedback from
Education
Development covering topics Access to Quarterly HR Manager programs and staff regarding
and Training
such as new educational make training
techniques and platforms adjustments as effectiveness.
product necessary.
knowledge.
Encourage staff
to obtain
Track progress Monitor
certifications and Financial
and provide certification
qualifications in incentives and Bi- Salon
support to staff attainment and
specialized areas Certification annually Manager
pursuing its impact on
through resources
certifications. service quality.
incentive
programs.
Strategic Targeted Develop a Monitor Regularly
Marketing Marketing marketing plan Marketing campaign review
and Campaigns outlining goal, budget and Marketing performance and campaign
1-2 weeks
Promotion target audience, Marketing Manager adjust strategies metrics and
channels, and tools based on adjust tactics
key messaging. analytics. accordingly.
Create engaging Social media Ongoing Social Media Regularly Monitor
content for management Manager analyze audience
social media tools and engagement engagement
platforms Content metrics and and adjust
highlighting creation tools optimize content content
salon services, based on strategy.
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promotions, and
client performance.
testimonials.
Collaborate with
local influencers Evaluate Regularly
or beauty Influencer partnership ROI assess
bloggers to partnerships, 1-2 Marketing and adjust influencer
showcase Art collaboration months Manager influencer performance
Angel's services resources strategy and impact on
and attract new accordingly. brand.
clients.
Select and
implement a
CRM system to Train staff on Regularly
centralize CRM CRM usage and review CRM
1-3
customer data, software, IT IT Manager ensure data data for
months
track support integrity and accuracy and
interactions, and security. completeness.
segment the
customer base.
Develop Regularly
personalized review customer Monitor
Marketing
communication feedback and customer
Enhance automation Marketing
Implement CRM strategies based Ongoing adjust response to
Customer tools, Manager
System on customer communication communication
Engagement customer data
segmentation strategies efforts.
and preferences. accordingly.
Launch loyalty
programs,
Monitor
referral
Loyalty program Regularly
incentives, and
program participation and assess program
VIP perks to 1-2 Salon
resources, adjust incentives participation
incentivize months Manager
incentives based on and customer
repeat business
budget effectiveness satisfaction.
and foster
and feedback.
customer
loyalty.
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The action programs outlined above provide a comprehensive strategy for addressing the
challenges faced by Art Angel's Hair and Nail Salon. By focusing on creating a unique brand
identity, continuous education and training for staff, strategic marketing and promotion, and
enhancing customer engagement through a CRM system, the salon can effectively differentiate
itself in a competitive market, stay updated with industry trends, attract new clients, and retain
existing ones. These initiatives, backed by clear objectives, specific tactics, and accountability
within the organizational structure, aim to improve overall performance, profitability, and
customer satisfaction. Regular monitoring and evaluation of the action programs will ensure
agility in adapting to changing market dynamics and maximizing the salon's success.
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Admin. (2021, July 12). Design of product layout in production and operation management.
HKT Consultant. https://phantran.net/design-of-product-layout-in-production-and-operation-
management/
Rylatt, T. (2018, March 9). Common challenges and solutions in the hair salon industry.
https://www.linkedin.com/pulse/common-challenges-solutions-hair-salon-industry-tim-rylatt
The Five Forces - Institute for Strategy and Competitiveness - Harvard Business School. (n.d.).
https://www.isc.hbs.edu/strategy/business-strategy/Pages/the-five-forces.aspx
Tim. (2024, January 30). Exponential Smoothing: Definition of simple, double and triple -
Statistics How to. Statistics How To. https://www.statisticshowto.com/exponential-smoothing/
What is a service blueprint? [Examples and templates]. (2019, November 14). Lucidchart Blog.
https://www.lucidchart.com/blog/what-is-a-service-blueprint
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