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Risk Analysis of Global Beauty Cosmetics Center - Essay Example

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Summary to essay on topic "Risk Analysis of Global Beauty Cosmetics Center"
GBCC will face risks shared by other companies in the competitive cosmetics industry. One risk category is its distribution and supply chain, which is how it manages the supply and demand for products and services.
GBCC's business objective is to make customers beautiful, and achieving that means providing customers with a steady flow of products like beauty aids and services like hair and body care…
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Table 1 shows a summary of the key findings of GBCC's strengths, weaknesses, opportunities, threats, and trends (SWOTT). Using the table and the categories (distribution, supply chain, social, and cultural) briefly discussed above, GBCC can better manage its risks by focusing on doing some activities well to develop its own unique competitive advantage.
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Understand customers. GBCC has to know its clients and what they want. Depending on their clientele (age range, social status, disposable income, etc.), GBCC can be more specific in offering the right types and volumes of products and services at the right price points. It can also decide where to locate its shops in the neighborhood or inside a shopping mall or office building, and select the appropriate staff and operating hours for each location.
Train its workers. Like other service companies, people play a very important role for business success. More than just training workers in hairstyling, body care, or wellness strategies, GBCC must get workers with the right chemistry that will provide customers a unique experience, making them keep on coming back and telling their friends about it. Although it is important that customers come out of the center looking and feeling beautiful, it is the relationship that they forge with GBCC workers, who must get to know their most intimate feelings, that creates value, leads to profit margins, and increased revenues from repeat services.
Understand suppliers. Costa Rica has a thriving pharmaceutical industry that services the growing cosmetics industry (CRHC, 2006). There are several competitors in the same business that source their products and services from the same suppliers. GBCC should ensure that products meet high standards.
Manage operations. Service companies deal with different types of people who come in as customers wanting to feel beautiful and leave either as friends who got what they wanted or enemies who will never return or, worse, speak badly of the ...Download file "Risk Analysis of Global Beauty Cosmetics Center" to see next pagesRead More
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