Jess Salon Case Study

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Case 10: Jesua Beauty Salon: Missing You

View Point
* Jess

Statement of the Problem
* After 10 months of operations, still the business lacks demand.

Objectives
SRO: To decide whether to pursue the business or not, cutting his loses. LRO: To be able to market the business properly, generating demand.

Areas of Consideration
* The appropriateness of Jesua Beauty Salon’s location. * The location of the competitor
* Insufficiency of demand

Courses of action
1. Jess will carry on despite the current situation of the business. Pros:
* Fulfillment of his childhood dream.
* Have the chance to make the business successful.
Cons:
* Will risk losing money if unable to generate income.
* Childhood dream will be a failure.

2. Continue with the business but jess will invest money for marketing efforts. Pros:
* Will actually have a better chance of success.
* Chance to recoup and make up for the 10 months of insufficient demand. Cons:
* Jess may risk losing more money and time.

3. Cut his losses, stop the business or relocate the business and plan for the future. Pros:
* Can save the money that he may probably lose if he decided to continue the business in that situation. * Recognize the flaws of his business and learn from it.
Cons:
* Will have to accept a failure and try to move on.

Recommendation
Course of action number 3 because based on the problem and from my personal knowledge, the location of Jesua Beauty Salon is very inappropriate, to be along a national highway across an elementary school with air conditioning repair shops and automotive shop is a big marketing mistake since the market of a beauty salon differs a lot to the people who are at the current location.
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