SWOT Analysis for Health and Beauty Rejuvenate - Case Study Example

? BUS 475Strategic Plan, Part II: SWOTT Analysis BUS 475Strategic Plan, Part II: SWOTT Analysis Health and Beauty Rejuvenate (HBR)is a brand new and innovative spa that aims at rejuvenating and enhancing the natural beauty of its customers. HBR is immensely dedicated to providing its customers with the highest quality of wellness and beauty services. Health and Beauty Rejuvenate consists of individuals who uphold quality rather than quantity, thereby providing customers with quality services. Senses, particularly with regard to the sense of touch, are crucial in the spa business. This paper will conduct an internal and external analysis to ascertain the various factors that have a weighty brunt on the success of HBR. The paper will also encompass a SWOT analysis to determine the organization’s strengths and weaknesses along with its inherent threats and trends in the spa and hospitality industry. According to Pearce & Robinson (2009), a SWOT analysis centers on the assumption that effective strategies originate from a sound correlation between an organization’s internal resources, i.e. strengths and weaknesses, and its external environment i.e. opportunities and threats. The completion of this analysis will provide sufficient information to HBR to ascertain what they must do in order to remain successful in the hospitality industry. Strategic planning is a valuable tool, which firms use to concentrate their energy and guarantee that the workforce works towards the attainment of pre-set goals. The main aim of strategic planning is to examine and modify the firm’s direction in view of the changing environment. The tool is, therefore, necessary to ensure a firm maintains its competitive advantage, which make all the difference in successful organizations. The management of HBR appreciates the essence of strategic planning to achieve organizational standards. SWOT Analysis Conducting a SWOT analysis necessitates HBR to respond to questions crucial to assessing the strengths, weaknesses, as well as the threats and trends affecting the firm (Bohm, 2009). The examination of issues with a profound effect on the firm’s profitability is imperative to the effectiveness of the SWOT analysis. Internal factors such as resources and structures, as well as external factors such as innovation and competition impact organizational effectiveness and profitability. After ascertaining HBR’s strengths and weaknesses, the organization must pinpoint its opportunities and take advantage of them to guarantee progress. External Forces Legal and Regulatory The legal and regulatory consequences of running a spa are relatively vast. Currently, there are numerous laws and regulations a spa and any hospitality company must follow. The main element that clarifies a natural product-based spa is the use of natural products comprehensively. Since spas have an immense impact on the health and wellness of customers, they must ensure compliance with health standards such as sterilizing equipment, towels and by and large ensuring the sustenance of customers’ health. The spa must also adhere to standards established by the Fire Department, as well as the Water Management Department. Political factors, according to Pearce & Robinson (2009), define the legal environment in which firms operate. Gaining the requisite licenses is vital since otherwise the firm would be unable to operate effectively or could be penalized. Trends in the hospitality (spa) industry, for instance, shifting customer trends require firms to change their strategies continually. Therefore, keeping up with the different spa therapies customers prefer and which other organizations are using is highly beneficial. Threats will essentially emanate from other spas. It is vital for HBR to recognize these threats and remain above the curve in terms of the preferences of average spa customers. Social This trend has immense, positive effects and creates immense opportunities for HBR. This is because shifting social trends can mean additional income and profitability for HBR. The increase in population and daily stresses means many people will need relaxation services, which the spa offers. Although other forms of relaxation techniques provide vast benefits, people are increasingly requiring places where they feel pampered at affordable rates (Bohm, 2009). In addition, the technology age has also brought immense changes to the society since social networking sites provide personalized advertising and marketing opportunities to firms. Social media sites such as Google + and Facebook enable firms to market their products cheaply. Spas are increasingly gaining popularity across the age divide, especially spas that use natural products exclusively. People are rapidly appreciating the need to use natural products that do not degrade the environment. Spas provide communities with social wellness and interaction avenues. However, spas are not meant for extremely rowdy people who could distract the tranquil environment. Technological Technology in modern spas is quite outstanding since there are more high-tech devices than in the past. Bearing in mind the demand, as well as competition in the industry, this trend offers immense opportunities to HBR since technological advancements ensure HBR provides the highest quality of services to its customers. Relaxation equipment, massage devices and other necessary devices and solutions are vital components in the provision of spa services. Today, manufacturers use the latest technologies to extract natural oils and other substances from natural products used by spas. This ensures that HBR uses the best natural products to enhance its clients’ wellness and beauty. Economic This is one of the organization’s most notable threats. Economic trends are serious concerns for firms, especially with regard to revenues. This factor poses a significant concern to HBR because spa services are not essentially necessary to life. This means that people are likely to shun away from spending their limited resources on spas opting to spend money on necessities such as food, education, shelter and clothing. The current economic situation means that few people have sufficient money to afford luxuries such as spa services. However, the firm can mitigate this threat by structuring the costs of its services according to different people’s economic capabilities. For instance, HBR can establish different spa packages for people of different economic capacities thereby accommodating everyone in the community (Baye, 2009). Competitive Analysis This industry has been in existence since the mid 20th century, and there are currently more than 20,000 spas in the US. Keeping in mind the demand within this growing industry, HBR must appreciate the results of a competitive analysis. Identifying and dealing with certain key mistakes is fundamental; therefore, HBR should focus the middle-income families, which are the majority in the community and country. This force offers HBR an exceptional opportunity to evaluate the strengths and weaknesses of current and potential competitors. Internal Forces Strategy The strategy of most spas is to offer the highest quality of health and wellness services. The “never sacrifice quality” maxim is usual in the hospitality industry. Pricing strategies are vital for spas since they ensure the firms remain competitive within the industry. One of HBR’s foremost strategies is to locate its branches in places frequented by young professionals. Downtown business districts, therefore, offer immense opportunities in terms of exposure. All firms should focus on a strategy trend by appreciating customer needs, potential opportunities and emerging trends. HBR should concentrate on attaining 100% customer satisfaction by appreciating the needs and preferences of customers and surpassing customer expectations, better than its competitors (Baye, 2009). HBR will implement strategies such as ease, timeliness, reliability, convenience and quality. Processes and Systems This force is vital to the effectiveness of the firm. Processes and systems impact all company stakeholders from entrepreneurs, employees, customers and suppliers. HBR will focus on creating functional systems that guarantee that all stakeholders are aware of how to execute the firm’s vision, mission and values. Key processes and systems include finance, operations, administration and marketing. HBR will develop these processes by holding all employees responsible for uncompleted processes. HBR will strive to perform its services in an efficient and timely manner at all times (Bohm, 2009). This entails ensuring that systems and processes are the latest and current with the industry’s trends. Each month, HBR will feature a new spa service inspired by a season. SWOT Table External Forces and Trends Strengths 1. Ability to keep up with changing customer preferences. 2. Innovative services. 3. Effective strategy. 4. Successful processes and systems. Weaknesses 1. HBR does not have a strong national and global presence. 2. No economic resources for backup systems. Opportunities 1. Shifting social trends. 2. Technological advancements. Threats 1. Many regulatory hurdles. 2. Changing customer trends. 3. Immense competition. 4. Dire economic conditions. Adapting to Changes HBR will use the SWOT analysis to ensure success in its strategic planning. HBR will perform quarterly evaluations on its services, equipments and operation hours (Bohm, 2009). Reinforcing the vision, mission and value statements within HBR’s employees will be done to ensure adherence. HBR will establish a suggestion box to ensure it deals with customers’ concerns. Supply Chain Operations HBR’s supply chain operations will be quite an innovative planning system. Stock controls will always be up to date, because of many suppliers’ twenty four-hour stock turnaround for beauty products. This will enable HBR to order products at any instance to ensure constant product availability. HBR will offer quality beauty services to customers who desire optimal spa services. Issues and Opportunities HBR faces unique challenges since municipalities continually impose wastewater discharge restrictions and limit volumes of city supplied fresh water. Impact fees are also quite financially restrictive. Conversely, the spa industry and HBR have a bright future since national and local demographics show that people are continually appreciating the need to receive beauty and rejuvenation services. Moreover, recent surges in the number of working professionals craving pampering services provide immense opportunities for HBR, through additional services such as tanning services and body scrubs. Therefore, HBR can offer immense appeal to nonconventional clients. References Baye, M. (2009). Managerial economics & business strategy (7th ed.). New York: McGraw Hill/Irwin. Bohm, A. (2009). The SWOT analysis. London: GRIN Verlag oHG. Pearce, J. A., & Robinson, R. B. (2009). Strategic management: Formulation, implementation, and control (11th ed.). New York: McGraw-Hill. Read More