Final Business Plan
heaher9Running head: COSMETICS BUSINESS OPERATIONS 1
COSMETICS BUSINESS OPERATIONS 7
Cosmetics Business Operations
Heather Taylor
Kaplan
MT499: Bachelors Capstone in Management-peregrine
Prof: Angie Sokol
July 14, 2016
Cosmetics Business Operations
Part 1
The cosmetics business has the capacity to generate millions of dollars in sales. Even though multinational firms that generate revenue from the makeup business presently dominate the industry, artisan as well as independent artisan firms are emerging to grow to emerge as successful businesses. Even though starting up a cosmetics enterprise might be profitable and enjoyable, the process requires thorough understanding of the processes and procedures of the diverse business settings to provide cosmetic products and services efficiently thus result to a rise in increased profitability, competitiveness, and productivity of the business (Gaines, 2016). Hence, the paper discusses the business flow for ABC Cosmetics in serving the client base as well as the diverse organizational processes and procedures that revolve around the diverse business settings.
Business Flow
ABC Cosmetics is a firm created to provide skin care products following diverse distribution channels. As a cosmetics booth, the company plays establishing a brand that will represent quality skin care. We anticipate realizing this by acquiring our products from high-quality manufacturers as well as research, employ an innovative marketing initiative, as well as utilize a wide-ranging distribution network encompassing consumer catalogue, brick and mortar outlet, and online presence (Brown, 2014). By utilizing the diverse channels, we shall manage to position ourselves in a niche market while showing commitment to delivering superior personal care products and services in a rapid and efficient manner. This way, we shall manage to emerge as a quality body and skin care firm within the target market (Evans & Lindsay, 2016).
Our contract firm based in California will produce the body and skin care products and services we shall offer our customers. Our major product lines will comprise of skin care products. Here, we shall provide a broad range of products, comprising of cleansing creams, body lotions, eye makeup removers, and facial masks and scrubs. We shall also lay notable emphasis on the pricing strategy to make sure that it appeals to our customer base. We shall set s shelf price that will range between mid-lower quadrant of top-rated products and services. We shall realize this by undertaking a careful comparison of the market prices and adjust them to meet our packaging and customer needs. Since we believe in the potential for creating future opportunities for growing our products, only our imagination as well as capacity to attracted talented individuals who understand the branding concept will serve as the limitation (Brown, 2014).
In addition, to ensure that we gain access to our unique market base, we shall emphasize on providing specialty line of products including cosmetics and skin care. The quality and prices will also vary within the groups to allow us position ourselves as a quality brand in the marketplace. Based on the notable growth being witnessed in the cosmetics market, we shall focus on the emerging lines of cosmetics products to realize growth and profitability opportunities in the market (Gaines, 2016).
Organizational Processes and Procedures
In terms of our organizational processes and procedures, we shall direct them toward meeting the diverse needs of our customers. For instance, since we anticipate combining retail and a wholesale strategy, we shall breakdown our customers to two major groups, including the end user as well as the reseller. The target end users will comprise of individuals aged between 24 and 55 years. They will comprise of female professionals based in urban areas as well as college students. The lifestyle of this client base is active since they lay notable emphasis on the environmental and social issues surrounding them. Wellness of the body and mind is vital to them as they consider aging effects and youthful appearance maintenance as a crucial part in their lives (Evans & Lindsay, 2016). In addition, concerning the resellers, we believe they are capable of recognizing the needs of our target client base effectively. We shall embark on teaching our customers mostly about our cosmetic specialty retailers to allow them understand the value of the diverse cosmetic products we offer (Gaines, 2016).
Moreover, we anticipate to focus on strategies that will allow us realize notable growth in the market. For instance, we shall undertake research on the emerging trends in the marketplace, which have significant impact in the market place, such as fostering competition and bringing new opportunities. The trends we shall lay notable emphasis on returning to age-old natural remedies, which have been proven over time. The reason for this is that consumers are searching for more holistic as well as healing advantages associated with skin care products as well as the significant knowledge they are gaining concerning the benefits of personal care products. Thus, by laying considerable emphasis on improving the organizational processes and procedures in the diverse business activities we undertake, we shall manage to attain a competitive position in the marketplace, thereby allow us realize increased sales and revenues in our diverse business activities (Gaines, 2016).
Part 2
As the operations of ABC Cosmetics expand, we will consider outsourcing ours products and services to different countries. Here, it will be essential to consider the diverse economics, government, and laws that will affect our operations in different countries. The forces play a major role in determining whether a business can excel in the global environment based on the diverse challenges that prevail when it comes to implementing them effectively.
Economic Environment
The economic environment of a country serves as one of the major areas to consider while considering outsourcing or offshoring services. Economic forces usually influence the customers’ purchasing power. When customers demand a product from a company, the profitability of a company rises and vice versa. As such, economic forces are essential external forces to consider in the cosmetic industry (Gaines, 2016). The major economic forces to lay significant emphasis of economic growth rate, unemployment rate, and interest rate among others. When these forces are favorable, such as high growth rate, low unemployment rate, and minimal interest rates, the purchasing power of consumers is high. For instance, the luxury market, which ABC Cosmetic is based, is affected considerably since when the conditions get worse customers opt for products they can afford. If the rates of interest and unemployment rise, people lack sufficient funds to afford products. This results to declining demand and reduced profitability of a company. The same case applies for deteriorating economic growth (Evans & Lindsay, 2016). Therefore, for ABC Cosmetics to realize increased profitability, competitiveness, and sustainability when it outsources or offshores its operations to other countries, it should target the ones that portray favorable employment rates, interest rates, and economic growth.
Government
The political environment of a country is vital to consider when considering undertaking business activities in a different country. Here, it is essential to consider the extent to which the government of a certain country intervenes with its economy. The major areas to consider comprise of political stability, pricing regulations, and taxation among other duties of the government (Evans & Lindsay, 2016). In the case of ABC Cosmetics, it is essential to ensure that it complies with the diverse regulations affecting the cosmetic industry to ensure that it remains active in the market. The diverse regulations influencing the cosmetics industry comprise of safety, responsibility, product information, certain substance restriction, consumer information, market control, and implementation measures (Brown, 2014). Here, by following the diverse regulations affecting the cosmetic industry in a given country, ABC Cosmetics would manage to operate effectively without any problems with the government of the country it decides to operate.
Legal Environment
The legal environment is also a major area to consider when taking operations to a given country. The legal forces comprise of competitive regulations, employment regulations, product regulations, and health and safety regulations among others. The forces influence the way that an organization undertakes its activities in diverse ways, such as the way a company undertakes its operations, products demand, and the costs of operations. Furthermore, a firm should consider laying emphasis on the changes that take place in the legal regulations to ensure that its behaviors reflect those accepted by the legal framework of the country (Brown, 2014). Therefore, the company should make sure that it follows the right employment procedures, deal with products and services acceptable in the country, exercise best competition practices, as well as ensure that the products it deals with are healthy and safe for use by customers. Thus, by observing the diverse legal, governmental, and economic conditions that characterize particular countries effectively, ABC Cosmetics would manage to undertake its operations in diverse nations successfully to realize its growth prospects (Evans & Lindsay, 2016).
References
Brown, J. (2014). Cosmetics Logistics: The Beauty of an Optimized Supply Chain. Retrieved from http://www.inboundlogistics.com/cms/article/cosmetics-logistics-the-beauty-of-an-optimized-supply-chain/
Evans, J. R., & Lindsay, W. M. (2016). Managing for Quality and Performance Excellence. New York: Cengage Learning.
Gaines, M. (2016). How to Start a Cosmetic Business. Retrieved from http://smallbusiness.chron.com/start-cosmetic-business-811.html