Introduction
Generally, in a competitive market, the performance of a business organization is significantly influenced by the respective strategies utilized by the enterprise. It is upon the management team to determine specific plans, which, being incorporated into the business operations, have the potential of positively impacting or facilitating the growth of the corporation. The strategies range from functional, operational, financial, research and development, and human resource management to corporate social responsibility. When enterprises effectively apply a given strategy or various tactics in their activities, they are more likely to succeed in the industry where they operate. For instance, for the Zone Nail project to remain proactive, it is necessary to formulate and implement different plans to make it easier for the organization to track the progress made towards achieving its set business objectives. By having a strategic approach, the management body of Zone Nails will be able to have a clear roadmap that links various functions of the entity to its core objective. Strategic management will allow the company to focus on important areas that benefit the stakeholders and the surrounding environment. A tactical plan facilitates the ability of a firm to reshape its operations.
The Nails Zone project is a business program that is aimed at providing beauty products and services to women. The business mission is to ensure females have access to various forms of cosmetics that beautify their nails in an atmosphere suitable for relaxation. The vision of the firm is to be the leading manicure and pedicure provider in the market. To achieve the mission and vision of the business enterprise, the organizational managing team must ensure they apply a strategic management approach that will give the project a competitive advantage.
Environment Scanning
Currently, the nail care industry has become more competitive following the demand for products and services to meet the needs of women’s beauty. Understanding the internal and external factors in the market is essential for the Nail Zone project. By properly analyzing the various aspects, it will be easier for the stakeholders to have deep insight into the company and the industry as a whole. By conducting a SWOT analysis, the Nail Zone management will explore the strengths, weaknesses, opportunities, and possible threats that have a significant impact on the business operation (Phadermrod et al., 2019). Upon completing the examination, the manager will be able to formulate an effective strategic plan with the help of which the Nail Zone entity will remain effective and perform accordingly in the nail care industry. By performing environmental scanning, the Nail Zone organization will have the ability to prioritize its business plans to facilitate its productivity in the industry.
The Nail zone has adequate resources, including the employees that are organized and loyal to the firm. Similarly, it has a stable source of finances which makes it less reliant on debts to facilitate its operations. The management leadership is effective and reliable, making the overall operations run smoothly throughout various departments (Phadermrod et al., 2019). In addition, Nail Zone has invested heavily in research and development programs with other reputable research institutions to enable it to have adequate information concerning changes in consumer needs and details of upcoming products in the market.
Moreover, the staff members are well equipped with current trends in the market, making them able to provide effective manicure and pedicure services to customers accordingly hence increasing the consumer experience. The employees have proper knowledge and skills of various types of messages that can be done to the respective customer. In addition, the company has a good reputation following its excellent and reliable services that help to attract more clients. The management teams, together with the staff members, have ensured there is a standard of hygiene maintained in the areas where services are offered to make customers feel at ease and relaxed. Due to varied working hours, Nail Zone has extended working periods to accommodate its potential customers that might require its products and services during late hours. When women visit the Nail Zone, they can receive different services that meet their tastes and preference. For instance, the staff members can provide dip powder nails, UV overlays, acrylic overlays, pedicures, and manicures. Therefore, when a client requires any of the mentioned and other related services, they are guaranteed to obtain them at one point.
Despite the strengths and abilities of the Nail Zone organization, the entity is encountering several weaknesses that hinder it from performing effectively and efficiently in the nail industry. For instance, the entity does not have the digital market experience to facilitate the promotion of its services and products to the market. The enterprise does not have a proper website and other social media platforms that can be used to advertise its operations. Another common limitation facing Nail Zone is its limited capacity to accommodate the large number of clients that sometimes come at once for the services. This often results to delay as other consumers are forced to wait in line for the first few people to be served hence causing significant inconvenience to the esteemed customers. Moreover, the flexibility of specialized staff members is a challenge making the facility have difficulty offering the services, especially when specific employees are not on duty (Huynh et al., 2019). Since most clients prefer booking services online, Nail Zone is still lagging in terms of having a proper online platform that can enable customers to call for reservations before visiting the facility.
However, irrespective of the limitations faced by Nail Zone, there are several opportunities that, when utilized accordingly, the enterprise will be able to remain productive and competitive in the nail industry. Some of the areas of management can explore and take advantage of include advancements in internet services. Nail Zone can opt to invest heavily in online marketing to promote its products and services to attract more clients. It can further research and apply various nail treatment approaches to increase customers’ satisfaction. The company should consider developing an active online booking platform to enable consumers from different and distant places to make prior appointments to secure its excellent services. Moreover, the management should choose to use organic products to avoid possible damages that customers might experience from the chemicals used to make the artificial products (Fuertes et al., 2020). The nail industry is currently growing significantly hence the organization has the potential to increase its market coverage. Similarly, the corporation might choose to form a partnership with other local businesses that have a reputation in the market to enable it to promote its services effectively.
Similarly, Nail Zone is facing a significant threat that interferes with its operations in the nail sector. The key risk is the frequent entry of other nail parlors that offer similar products and services to the customer, thus increasing competition. Some of the competitors are well-established firms with adequate financial, human, and other relevant resources needed for their business activities. Moreover, the trends in nail beauty keep changing rapidly, thus making the organization spend a large number of finances to remain active in the sector. The most common threat is the cost required to employ and retain the best nail technicians in the market. Due to the increase in demand for personnel, the ability to retain them is challenging, leading to a low number of nail professionals in the firm (Huynh et al., 2019). The other emerging issue is home visits, where the majority of nail technicians go from one door to another to offer the services to clients in their home comfort, thus lowering their likelihood of visiting the saloon.
Nail Care Industry Analysis
The nail care industry is one of the best-performing sectors in the market. The projected market indicates a potential rise in revenue. The industry contains several business organizations offering related products and services to customers. The market size of nail saloons is predicted to grow by approximately 2.5% in 2025 (Reinecke & Hinshaw, 2020). This projection proves that the sector is a viable and worthwhile investment because it can generate significant profits for corporations.
Following the growth and investment in the industry, several trends have emerged in the sector. For instance, most companies have invested heavily in nail treatment products as their line of products in the industry, such as night creams (Bombiak & Marciniuk-Kluska, 2018). Similarly, the need to reduce the aspect of pollution has prompted most businesses to use cosmetics that are anti-pollutant in the industry. Another advancement in the sector includes the application of natural ingredients such as almonds, milk, turmeric, and even carrots to reduce the chemical components in nail colors.
The aspect of differentiation, innovation, quality, support services, and prices are used as the key determinants of market prices. The mentioned factors act as a ground for competitive advantage in the market. Some of the key players in nail care include Delia Cosmetics, California Chemical Specialists, Fiabila S.A, American International Industries, Creative Nail Design, and OPI Products. The nail care market is segmented in terms of the type of products which include liquid nail color, nail color, gel nail color, nail treatment, manicure, pedicure, base coat and top coat, shellac nail color, and acrylic nail color. It is further grouped based on sales that are bulk and packaged. The other significant category is the region where there are different locations, such as North America, Canada, Asia Pacific, Germany, the Rest of Europe, France, Japan, China, and India. The aspect of segmentation is essential in enabling the Nail Zone project to decide on specific strategies that can be used to increase the sales of its products and services.
The Nail Zone Mission Statement
As stated earlier, the mission of the project is to ensure consumers of the products access different types of cosmetics to beautify their nails in a more relaxing environment. By having such statement, it is clear for the organization’s stakeholders, especially its employees, to comprehend what is expected from them. Therefore, when it comes to making the decision, it will be easier for the team to decide in the direction that supports the goal of the project. Similarly, having a well-articulated mission statement, external parties such as target customers, investors, and possible partners can easily be inspired, thus increasing their likelihood of becoming associates of the project.
The Objectives of Nail Zone
The objective of the Nail Zone project is to provide nail care services that use organic products. This move is to lower the risks associated with chemicals in nail colors. Most of the compounds are not suitable and cause serious irritation to the clients’ bodies days after they are applied to the nails. Moreover, the organization is aiming at investing in nail treatment products to ensure consumers have an improved experience of their services in the market. It is further aiming to enhance consumers’ services to increase its market coverage by 10%. Nail Zone’s goal is to improve its online marketing techniques to enhance its competitive advantage in eCommerce by 15%. Following the demand for nail technicians in the industry, Nail Zone’s goal is to retain its employees and prevent them from being hired by other firms offering the same services in the industry. In addition, the Nail Zone project is geared toward reducing artificial cosmetics. The above-stated objectives are supposed to be achieved within three years of operations.
Nail Zone Project Strategies
Based on the Nail Zone goals, strengths, weaknesses, opportunities, and threats in the market, the management will apply several strategic management approaches to ensure the objectives are achieved successfully and effectively. Formulating and implementing the various procedures will allow the entity to minor and assess the progress of its business operations properly. The technique will further provide a measurable framework that can be easily evaluated in case of any shortfall in the operations.
In the case of investing in organic nail care products, the firm will apply the product development strategy. This approach will enable the Nail Zone project to develop new products for an already existing market. In addition, it will use the same items in new markets within the nail care market. To capture the attention of consumers, the company, following its good reputation in the market, will use its brand to advertise and promote the new cosmetics. Furthermore, due to the inability to reach most clients on an online platform, Nail Zone will spend on trade promotion to create awareness of the new product. On the basis of pricing, the firm will use the price skimming method before other potential and substitute commodities enter the market.
To improve consumer services, the Nail Zone will use the human resource management (HRM) strategy. By focusing on this approach, the business organization will determine whether it should hire experienced nail technicians and pay them a good salary and make them perform other nail care services within the facility. Since customer satisfaction is a key influencer on client retention, the Nail Zone project should aim at offering the best and most reliable nail care to its consumers (Boon et al., 2018). This will give the firm ability to maintain and attract more customers to secure its excellent products and services.
Furthermore, to increase its online presence and market coverage, Nail Zone will employ a marketing strategy to enable the firm to reach potential clients and make them actual customers for the business (Morgan et al., 2019). The organization will invest in the current technology to establish online platforms such as a website, Facebook and Twitter to post and advertise the nature of products and services offered by the enterprise. The approach will ensure Nail Zone develops appropriate brand messaging and efficient Omni-channel to facilitate wider market coverage.
Moreover, the Nail Zone project will develop a corporate social responsibility strategy to enable the business entity to reduce the impacts associated with using artificial cosmetics that pollutes the environment. By investing in the plan, Nail Zone will create a different image in the nail care market, where products rich in chemicals are frequently used (Orazalin & Baydauletov, 2020). The move will enable the organization to protect the customers, nail technicians, and even the surrounding environment that are more likely to be affected by the substances. When the firm implements the use of organic products, clients will be able to receive their nail care services in a relaxing ecosystem where they are not affected by chemicals.
Implementation of Nail Zone Strategic Plans
As stated above Nail Zoe have four strategic plans that should be implemented to enable it to achieve its business objectives in the industry. They include product development strategy, HRM tactic, marketing approach, and corporate social responsibility. These plans if properly and effectively implemented, will give the company a competitive advantage in the nail care sector. In order to put the plans into action, the management body must involve the stakeholders to ensure they contribute to facilitating the attainment of the set goals.
Ethical Considerations
Generally, ethical issues have the potential of creating a negative impact on the stakeholders especially employees of the organization such as lowering their morale. Therefore, the Nail Zone enterprise needs to consider addressing possible concerns and developing a proper management system that values professional conduct. To be able to work together in harmony across all the departs, the manager must ensure the code of ethics, including honesty, trust, fairness, responsibility, and respect, are cultivated and nurtured effectively within the company. These values are fundamental in creating an aspect of professionalism in the workplace which is necessary for promoting cohesion among teams in charge of undertaking projects.
In addition, another ethical issue to be considered is the conflict of interest. Since Nail Zone will hire recruits through HR strategy, some of the stakeholders might have personal preferences. However, the manager must ensure that the people involved properly understand the protocols of the organization. Furthermore, all employees must be made aware of the exact definition of the term (Ketchen Jr & Craighead, 2020). Moreover, the notion of workplace culture must be considered in the process. Since Nail Zoe comprises workers from different cultures, it is important for the manager to promote respect for employees’ beliefs and values. For instance, the marketing team must understand what the company expects from them to facilitate the aspect of inclusion needed for effective teamwork.
Responsibilities of Stakeholders
The key stakeholders of Nail Zone are customers, employees, suppliers, and the government. They all have significant roles to play in enabling the company to meet its objectives. Nail Zone workers will contribute their perception and experience about the strategies. In addition, they will ensure the line of communication is open to facilitate immediate response to any change needed to improve the plans. Workers will voice issues associated with changes being put into action. Moreover, they will seek answers to areas of concern to enhance efficiency in the processes. Employees in the HR department, marketing, research, and development to provide their expertise to facilitate the project application. The manager is responsible for providing timely and clear communication on matters involving the projects. The leader will organize, monitor, and adjust the proposed initiatives to ensure the goals are met accordingly. Furthermore, the manager will formulate policies that guide the processes involved in the strategy implementation.
For the case of marketing plan and product development strategy, the respective departmental managers will provide needed teams to facilitate the delivery of the objectives. They will source the financial support necessary to conduct advertisements online and to research organic products accordingly.
Implementation Action Plans
Table 1: Product Development Strategy Action Plan
Table 2: HRM Strategy Action Plan
Table 3: Marketing Strategy Action Plan
Implementation Evaluation Process
After predetermining the expected outcome of the various strategies, Nail Zoe’s business organization has realized a significant change in its current operations. The organic nail care products introduced into the market have gained momentum and have attracted the attention of most clients who are anti-inorganic products. The overall sales and revenue recorded increased by a positive margin implying the product development strategy is an effective and efficient project for the firm.
Similarly, the overall consumer experience and rate of satisfaction have significantly increased since the HRM strategy was implemented by the business organization. The hiring of a qualified nail technician is, therefore, fundamental to the growth of Nail Zoe. By maintaining the approach, the company will gain and retain a competitive advantage necessary to thrive in the nail care industry. The professionals have further enhanced the ability of the enterprise to offer diverse services, which makes it attract an array of clients to the shop. In addition, after the implementation of a marketing strategy that focused on online eCommerce, Nail Zoe’s organization has significantly increased its brand awareness in the market. Currently, the company is receiving more clients who have booked nail care services via its website platform. The approach is making the business enterprise gain a competitive age in e-business which is the emerging business strategy in the industry.
Conclusion
In order to effectively achieve its business mission and objectives, Nail Zoe’s business organization formulated a number of strategic management actions to enable it to increase its performance in the nail care industry. The management team, together with the stakeholders of the firm, are actively involved in implementing marketing, product development, and HRM strategies to facilitate the entity’s growth. The approach has proven significant because Nail Zoe has increased its customer satisfaction and online presence in the sector.
References
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