POLITICAL FORCES

Political analysis is about government change and political stability of a country. The
government usually introduces new policies and guidelines in the industry which
sometimes affects the business operations negatively. The policies may be costly and
time consuming due to the procedures and processes that must be followed during
implementation. The government has been supportive and cooperative on various
policies, in that, the government authorities and departments in charge of the industry
has been engaging all the stakeholders for talks, discussions and consultations in case
there are new guidelines and policies to be introduced. There has been no major
political challenge due to the government support but in some instances, when the
country’s leadership changes after a general election, new guidelines, and policies are
introduced and the firm is forced to represent to them, hence it may be forced to close
down if it cannot meet those requirements. These are usually directives and failure to
comply can cause the government authorities to withdraw the firms trading license.

ECONOMIC FORCES

Currently we are in a economic recession which can drastically impact the amount of
economic activity a business may have. Depending upon whether the good offered by
the business is a necessity good, a normal good or a luxury good the amount of
business could expand, exit or stay in its current situation. It is expected that a salon fits
nicely in the normal good category. This means that during recessions, business
activities may experience a light decline but one wouldn’t expect a dramatic change in
this kind of business. Most women rank getting their overall appearance done and
buying make up and other beauty products fairly high on their priority list. As such, these
goods and services are considered quit necessary. Even during tight financial times, it is
expected that most people will still get their overall appearance done and will still need
to buy make up and other beauty products. Beauty costs are generally low when
compared to an individual’s income but depending upon the services and products they
are willing to avail. Therefore it is expected that some people will cut back a little on
some of the services they buy, but in general the customers will still purchase goods
and services that is fit to their budget. Finally, there is an abundance of substitutes for
the supplies sold by our business but there is a limitation in the services we offer.
Customers could shop around at other beauty and salon businesses trying to
find a cheaper price. They may also choose to do their own hair or styling at home.
However, most people don’t have the knowledge and experience to do as good of a job
and aren’t willing to sacrifice the quality of a small amount of money they would save.
Therefore it is expected that despite the recession, most customers will continue to avail
services that our salon will offer. Due to the recession, it is possible that customers of
other salon businesses may be looking around for a better value. This current economic
downturn provides a good opportunity to attract and capture potential client. With the
possible slow-down in business, it is also important to look at non value added cost that
could be avoided. When a company cannot easily increase revenues, it should look for
ways to cut cost. This will help a company make it through the slow times. Now is a
great time to offer products that give the consumer more value. Helping consumers get
more contented for their money will help expand the current customer.

SOCIO-CULTURAL FORCES

Socio-cultural factors concern the change in taste and preferences, fashion, cultural
beliefs, norms and likes and dislikes. With salon industry, most people want what is in
fashion, that’s why salon businesses have been spreading in every major place’s here
in the Philippines. Each one wants to have a perfect physical appearance because it is
one of the factors that raise our self-esteem. Aside from this, salons provide central
place for women to tend to their appearance, enjoy the companionship of other women
and exchange information. Compared with other social institutions, such as churches,
the informal atmosphere of a salon enables women to forge bonds not only with their
stylist, but also with the salon’s clientele. The various social roles of salon can
encompass a support network, a haven from everyday life and an arena for political
change. Different people, races, tribes, gender and religions value certain overall
appearance and products, this therefore, calls for a salon business and these changing
demands have led to new opportunities for a hair salon business.

TECHNOLOGICAL FORCES

Technology is an essential part in the salon business. It affects the business crucially
considering that it change from time to time. Also, it is costly and the existing
technologies became obsolete. New machines and equipment are required to follow to
the latest fashion and trends in the beauty industry so that they can compete
advantageously to the other competitors in the market. Also, employees need to be
trained on the use of new technologies. With the help of advance technology, the
business can provide quality service and customers will get the best value from their
money.

ECOLOGICAL FORCES

Ecological factors include weather, climate and climate change, which may especially
affect industries such as tourism, farming, and insurances. Furthermore, growing
awareness to climate change is affecting how companies operate and the products they
offer, it is both creating new markets and diminishing or destroying existing ones. The
salon can come up with the ways to dispose of their products in a more eco-friendly way
by using organic and natural cosmetics. The biggest difference from between organic
and chemical salon must be in their choice of products. Organic salon often uses herbal
products instead of chemical products. But even when you’re just going out for a regular
hair cut then shampoos, conditioners and hair styling products can contain harsh
chemical that in the long run will dry out your hair and scalp and possibly give you
allergy reactions. Not to mention the fact that you would spend an hour in an
environment where workers have to take out early retirement. Having a green
environment can prevent hairdressers to retire the earliest due to work related health
issues. Sanitation will be also a consideration. The salon sets a policy regarding the
proper disposal of waste. Cleaning is important particularly in work areas because
deposit of dust, soil and microbes on surfaces can transmit infection. Contaminated
areas such as operating rooms or isolation rooms must be cleaned after each session
and spot cleaned after each case or thoroughly cleaned as necessary.

LEGAL FORCES

Operating a beauty salon isn’t as relaxing as visiting one. Many rules and regulation
apply to the industry to ensure safety, responsible business practices and compliance
with the law. The company will be responsible for any product it sell, uses or
recommends. As well as service that it is to offer. Appropriate preparations and steps
should be properly addressed every time. The company could be sued or even shut
down because of improper uses. Standing by our products and knowing that it is healthy
is an ethical issue but could become a legal issue if a situation resulted in damage to a
client. Keeping the image of the company is a critical issue. Avoiding any legal problems
by educating the employees on proper uses of every product in order that they will not
misinform customers in such a way that it results in improper use of a product is also an
important issue to be discussed and taken into considerations. Following the law is
important but even more important is to be ethical. Sanitation must be a top priority for a
beauty salon like us to meet industry and client cleanliness standards. Every product,
appliance or tool that comes in contact with a client must be disinfected and sanitized.
For example, combs and brushes must be kept in a mixture of equal parts of a
disinfectant liquid between uses. Employees must follow the basic practices such as
washing towels, cleaning sinks and floors and washing hands. Most states issue
informational documents to salon businesses to guide them in keeping their facilities
sanitary and healthy
STRENGTH

Identifying the strengths of a hair salon can, at times, be as easy as looking at the client.
A hair salon with an abundant client list is a sign of successful marketing, good
operations and strong client management. Still, a strong analysis will identify the
reasons that those strengths are strengths. Factors like a well-trained team and a high
traffic location may be the core strengths of the salon.

WEAKNESSES

Weaknesses can be lack of proper stylist training and poor customer care can hinder
the hair salon's income, but still not limit it. Identifying the hair salon's weaknesses is the
first step to making strategic improvements. It is important to take an unbiased look at
the salon while completing this section. Weaknesses can be as simple as a lack of
inventory, or as challenging as having the wrong location with limited space and
parking.

OPPORTUNITIES

While the strengths and weaknesses are internal aspects of the hair salon analysis, the
opportunities and threats portion of the SWOT evaluate the external aspects of the
salon. The ever-evolving hair trends and styles can present many opportunities for the
hair salon. Opportunities can include introducing new hair styles and styling methods,
introducing new product lines and brands in the salon's inventory and attracting a new
client market.

THREATS

A hair salon's threats are things that threaten the livelihood of the business. These can
range from new competition to changes in the industry's laws and regulations. While
many threats cannot be changed, the salon should identify threats in order to create
strategic adaptations to overcome impending challenges. For instance, the hair salon's
customer base may be threatened by a new hair salon that enters the area. Although
you cannot force the new hair salon to move, you can create new strategies to
counteract the competition, retain your customer base and bring in new customers.
These might include introducing new styles, providing new promotions and specials,
and promoting the salon's customer benefits.