PESTEL ANALYSIS Submitted By: Arcega, Kezziah Josh Baustista, Marianne Cama, Louisa Corpuz, Olive Rose Leoncio, Jamaica Lozada, Angeline

PESTEL ANALYSIS Submitted By: Arcega, Kezziah Josh Baustista, Marianne Cama, Louisa Corpuz, Olive Rose Leoncio, Jamaica Lozada, Angeline

POLITICAL ANALYSIS 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 cooperating 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, ideologies and policies are introduced and the firm is forced to adhere 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 firm's trading license. ECONOMIC ANALYSIS Currently we are in an 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 hair 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 hair done and buying makeup and other beauty products fairly high on their priority list. As such, these goods and services are deemed quite necessary. Even during tight financial times, it is expected that most people will still get their hair done and will still need to buy makeup 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 offered. 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 for the small amount of money they would save. Therefore it is expected that despite the recession, most customers will continue to avail services that our mobile 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 costs that could be avoided. When a company cannot easily increase revenues, it should look for ways to cut costs. 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 base. SOCIO-CULTURAL ANALYSIS Socio- cultural factors concern the change in taste and preferences, fashion, cultural beliefs, norms and likes and dislikes. With hair salon industry, most people want what is in fashion, that s why salon businesses have been spreading in every major places here in the Philippines. Each one wants to have a perfect hair because it is one of the factors that raise our self-esteem. Aside from this, Hair salons provide a 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 stylists, but also with the salon s clientele. The various social roles of a hair 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 hairstyles and products; this therefore, calls for the salon business and these changing demands have led to new opportunities for a hair salon business.

TECHNOLOGICAL 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 hairstyling 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. ENVIRONMENTAL Environmental factors include weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance. 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 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 hair salons must be in their choice of hair dyes. Organic hair salons often use herbal dyes or henna hair dyes instead of chemical dyes. But even when you re just going out for a regular hair cut the shampoos, conditioners and hair styling products can contain harsh chemicals that in the long run will dry out your hair and scalp and possibly even give you allergic 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 deposits 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 Operating a beauty salon isn't as relaxing as visiting one. Many rules and regulations apply to the industry to ensure safety, responsible business practices and compliance with the law. The company will be responsible for any product it sells uses or recommends. As well as services that it is to offer. Bleaching and other color products could be very damaging to someone s hair if not used correctly, that is why 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 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.

POLITICAL ENVIRONMENT Changing government rules & regulations for businesses. Introduce new loans for small scale businesses. Introduce new instruction programs for beauty cultural field through youth center. Government introduces higher taxes for businesses & some taxes for cutouts, and banners. It is very badly affected to businesses. Road policies to abide ECONOMIC ENVIRONMENT Decreasing interest rates for business loans. Increasing cost of cosmetics. Decreasing personal income of people. Increasing price of beauty cultural technical instruments. Increasing cost of fuel. SOCIAL ENVIRONMENT There are so many Christian people around the salon. Increasing more sales in Christmas & New Year seasons. Higher demand for trend fashions. Some times in wedding seasons most parents need traditional dressing for their young daughters. Hair salons provide a central place for women to tend to their appearance, enjoy the companionship of other women and exchange information. TECHNOLOGICAL ENVIRONMENT Use head massages, hair iron for hair dressing. Use new skin whitening creams & technical machines. Use internet to promote salon & give opportunities for customers to get appointments through online. Use of automobile to serve clients. Up to date enhancements of cosmetics (such as soap, chemical, lotion etc.) Billing system Supplier Connections ENVIRONMENTAL

Sanitation Pollution caused by automobile Proper disposal of chemical substances Some of the cosmetics will be organic and natural Produce less waste Global Warming LEGAL Corporate responsibility Licensed Employees Business License New Tariffs Basic health and safety regulations Hazardous chemical management Posting a warning sign on the equipment is pertinent for the company to avoid a lawsuit.