Strategy paper: BAC Salon Services

• Main Author: Choo, Bonnie Austria
• Format: text
• Language: English
• Published: Animo Repository 2004
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/4512
• Institution: De La Salle University

The beauty salon industry of the Philippines, which is part of the personal service industry, is an unregulated industry. There is practically no barrier to entry as it is very easy to go into salon or rather beauty salon business. This paper writes about the authors venture into his business on July 2002 as a franchisee of Reyes Haircutters. With an Equity of P850,000 and a P300,000 long term loan from a family friend, he opened a single proprietorship company called BAC Salon Services, a franchise owner of Reyes Haircutters. The salon outlet had a soft launch last December 2002. It started its formal commercial operation last Jan 2003. As such, the whole 2003 operations and January to November 0f 2004 can be reviewed and can be made financial projections for the rest of the duration of the 5 year franchise period. The closest competitor, Davids Salon was chosen for comparison of the companys financial performance because of very similar business strategies of Davids Salon with that of Reyes Haircutters as well as their target market/segment. Moreover, the only respectable competitor in the Divisoria near Reyes Haircutters Divisoria Branch is Davids Branch is Davids salon Ilaya branch. Analysis of some competitors Financial Statements revealed that majority of all salons was not doing well. How does BAC Salon Services perform in comparison to competitors? How will the management turn the company around if it is not doing very well? These are questions that the paper would like to answer. Strategies were crafted in the area of Human Resource Management and Marketing/Sales to address the weaknesses identified after almost two year of operation. Programs are developed to take advantage of the business opportunities available for the excellent location of the business. The resulting financial projections showed that the prospect of achieving the business objectives of BAC Salon service can be met given that strategies are successfully implemented.