

University of San Carlos

Senior High School Department

Accountancy, Business and Management (ABM) Strand

______________________________

SALON DE BELLEZA

BUSINESS PLAN

________________________________

In Partial Fulfilment of the Requirements for the Course

ORGANIZATION AND MANAGEMENT (MGT 01)

ENGLISH FOR ACADEMIC AND PROFESSIONAL PURPOSES (ENGL 01)

_______________________________

Submitted by:

Cabahug, Dionne Sim Montejo, Ymel Jules

Dy, Marjorie Mae Mosqueda, Hans Gabriel

Fernandez, Alexandra Jeanne Plazo, Kate Mariah

Submitted to:

Ms. Caroline B. Borres

Teacher

Date Submitted:

November 22, 2019

1
 SALON DE BELLEZA

Beauty made especially for you—only at Salon de Belleza

Unit 02, Corner Anitas, Osmena Boulevard.

salondebelleza@gmail.com

401-1332

2
 EXECUTIVE SUMMARY

Throughout the years, people have developed misconceptions about beauty. Many

view the beauty salon industry as unprofitable and unstable, as well as salons only being

places to avail different beauty enhancements. Thus, Salon de Belleza was established—

to change the people’s view towards beauty salons.

Salon de Belleza does this by being different from other salons and making the

salon a customer’s second home through offering creative, quality products; free Wi-Fi;

free tea; and a snack bar—attracting more customers. The company also trains employees

and offers attractive benefit packages so that the employees want to continue to work and

improve with creativity and passion.

Furthermore, in running the business, Salon de Belleza applies different

management theories—Administrative Management and Human Relations Management:

Hawthorne Studies. Administrative Management theory is applied through proper

management and organization of employees, which is important in improving overall

company results; whereas, Hawthorne Studies is applied by recognizing the not only the

importance of employees but also teamwork and worker satisfaction in increasing

productivity and ensuring that workers are always satisfied with the jobs in order for the

employees to duly deliver different beauty enhancements with joy.

All in all, Salon de Belleza offers a wide range of excellent quality beauty

treatments for all people who seek to feel beautiful—whether male, female, child, or

adult. In doing so, it satisfactorily delivers contentment and redefines beauty and beauty

industry—truly living up to its tagline: “Here at Salon de Belleza, beauty is made

especially for you.”

3
 TABLE OF CONTENTS

Title Page . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-5

Chapter I: General Business Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-19

A. Business Review. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Industry Review. . . . . . . . . . . . . . . . . . . . . . . . 6-7

Opportunities & Threats Analysis. . . . . . . . . . . 8-10

B. Company Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Business History . . . . . . . . . . . . . . . . . . . . . . . . 10-12

Business Description . . . . . . . . . . . . . . . . . . . . 12-13

Business Model . . . . . . . . . . . . . . . . . . . . . . . . 14-15

Owners, Business and Organization Type . . . . 15

Mission, Vision, Values . . . . . . . . . . . . . . . . . . 16

Logo Significance. . . . . . . . . . . . . . . . . . . . . . . 16-17

Strengths & Weaknesses Analysis . . . . . . . . . . 17-19

4
 Chapter II. Management Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20-29

Organizational Chart . . . . . . . . . . . . . . . . . . . . . 20-21

Job Descriptions. . . . . . . . . . . . . . . . . . . . . . . . . 21-22

Management Theories in Practice . . . . . . . . . . . 22-29

Chapter III. Product Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30-33

Product Photos and Specifications . . . . . . . . . . . 30-32

Unique Selling Proposition . . . . . . . . . . . . . . . . . 32-33

Chapter IV. Marketing Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34-39

Target Market Profile . . . . . . . . . . . . . . . . . . . . . 34

Product Strategy . . . . . . . . . . . . . . . . . . . . . . . . . 35

Price Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Place Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Promotion Strategy . . . . . . . . . . . . . . . . . . . . . . . 38-39

Chapter V. Operation Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40-47

Business Hours and Days of Operation . . . . . . . . . . . 40

Supply Chain Management . . . . . . . . . . . . . . . . . . . . 41-42

Quality Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42-45

Waste Management . . . . . . . . . . . . . . . . . . . . . . . . . . . 45-47

Chapter VI Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 48-52

Chapter VII. References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53-59

5
 Chapter 1

GENERAL BUSINESS PLAN

Business Review

Industry Review

Eric Roth (2008) says that despite the world rapidly changing, it is never too late

to change and to learn. In fact, people have developed diverse views towards beauty,

which may have led to a lot of misconceptions and shortcomings; nevertheless, what is

universal among all cultures is how each values beauty—hence the beauty industry.

However, despite the beauty salon industry thriving in Cebu, there are a few situations to

point out. First, many businessmen view the beauty salon industry as one of the most

unstable and unprofitable businesses due to its number of competitors. Second, working

in a salon is not a stable and ideal job. Third, people only view salons as places to avail of

different beauty enhancements.

The first misconception is proven wrong by the data coming from different

statistics. John (2018) states, “Salon profit margins range from 2% to 17% depending on

how well the salon is managed.” Moreover, as reported by The Philippines Magazine

International (2016), the Philippine beauty and wellness industry is continuously growing

and is not expected to falter any time soon—with Filipinos being known as one of the

world’s most beautiful people where ‘beauty and wellness’ is a job-requirement.

The second misconception is also proven wrong by different surveys. According

to the 2015 Annual Survey of Philippine Business and Industry of the Philippine

6
Statistics Authority, beauty parlors employ the largest number of workers. Based on the

survey conducted nationwide, there are 10,065 establishments in the formal sector of the

economy that are engaged in ‘Other Service Activities’. Among the industries, beauty

parlors registered the highest number of establishments at 3,092. This was followed by

washing and dry cleaning of textile and fur products and funeral-related activities with

1,506 and 1,472 establishments, respectively. These statistics indicate that the beauty

industry is one of the thriving industries. In fact, “Beauty salons have become one of the

most profitable industries” (Youngupstarts, 2018). The industry is earning 50 billion

dollars worldwide (Wagner n.d.).

Lastly, as attested by The Philippines Magazine International (2016), the factors

that make Philippine beauty and wellness the top emerging investment opportunity are

decreasing costs of beauty services and products; increasing incomes of middle-class

markets; guaranteed flow of clientele; and a growing market for international investors. It

surpasses the real estate, food & beverage and automobile industries especially when the

risk-reward ratio is compared (The Philippines Magazine International, 2016). Truly, the

beauty industry has gone mainstream and has been democratized, allowing the masses to

partake.

Opportunities & Threats Analysis

Opportunities Threats
1. New potential markets 1. New competitors
2. Potential profits 2. Customer’s increasing standards
3. New industry trends 3. Government policy compliance

7
 Opportunities and threats can be determined using different methods. One of

these methods is the situational analysis or SWOT analysis, which stands for strengths,

weaknesses, opportunities, and threats; this assesses an organization’s internal

environment, as well as its external environment, and the ideal outcome would be to take

advantage of external opportunities and overcome the threats (Williams, 2017).

Using SWOT analysis, opportunities in the salon industry include new potential

markets, potential profits, and new industry trends. Charlton (2012) stated that despite the

increasing number of salon business in the country, consumers are also expanding

dramatically, thus beauty is a growing business in the Philippines (as cited in The

Philippine Star, 2012). In addition, The Philippines Magazine International (2016) stated

that the Philippines’ beauty and wellness industry is one of the fastest developing markets

in the world and is not expected to waver any time soon.

The Philippines Magazine International (2016) also explained that the

Philippines’ beauty and wellness industry is the top emerging investment opportunity due

to key factors of increasing incomes of the lower and middle class markets, deflation of

the cost of beauty and wellness services, and assured flow of clientele. What makes it

more appealing is the small investment capital required to launch the initial start-up of the

business, and it also has minimal risks compared to other industries like the real estate

and automobile industries. Deflation of the cost of beauty and wellness services and

products, as well as the increasing incomes of the lower and middle class markets, has

also attracted more consumers. Moreover, there is a guarantee in the flow of clientele

because “a great smile, clear skin, healthy figure, and even light-skin are required or

encouraged by most PH-based employers” (The Philippines Magazine International,

8
2016). Furthermore, salons can take advantage of all of these factors. It can also take

advantage of new hair or nail trends or even start new ones. This is the opportunity to

bring in customers who want to be part of the buzz.

Likewise, using the SWOT analysis, threats found in the salon industry are new

competitors, customer’s increasing standards, and government policy compliance. As

stated by Statista (2019), revenue in the Philippines’ hair care segment amounts to

US$1,034.0m in 2019; the market is also expected to grow annually by 2.3% (CAGR

2019-2023). As the market is growing, new competitors are expected to enter. 

The next threat is that customers’ beauty standards change—depending on what is

trending. It is important to take note of increasing beauty standards because “service

quality, customer satisfaction and customer value have become main concerns in both

manufacturing and service organizations” (as cited in Sultana, Islam, & Das, 2016). The

business must be able to cope with different issues like increasing standards in order to

stay competitive. 

Furthermore, according to the Department of Health (2016), in order for the salon

to start operating, plans on compliance with the sanitation standard in terms of water

supply, plumbing, sanitary facilities, etc., must be submitted to the local sanitary

engineer. In addition, inspections are done at least once every three months; therefore,

sanitation must be maintained. Moreover, the government’s law on minimum wage and

employee benefits also affects the business because it would increase the expenses. As

stated by the National Wages and Productivity Commission (2018), the daily minimum

wage for non-agriculture companies in Cebu City is 376 pesos, given that there are less

than 10 employees in the company.

9
 In conclusion, the opportunities in the salon industry outweigh the threats, for

“beauty is a growing industry in the Philippines despite the competition” (Charlton, 2012,

as cited in The Philippine Star, 2012).

Company Profile

Business History

Beauty care has long been born before it was ever recorded in history. In fact,

beauty care became a field wherein early Asians channeled the culture of one’s group,

and in order to achieve this, the early Asians enhanced one’s face with the use of colored

powder, where only those who were elite could afford it (Cosmetology and Beauty

Parlour Management, 2016). Moreover, according to The Philippines Magazine

International (2016), in the early days, beauty was something highly marketed directly to

the rich; it was also centered on vanity, as opposed to necessity or everyday life. Now, it

is inherent in almost all women of every culture to have one’s face enhanced with the use

of make-up paraphernalia. While the beauty industry continually evolved, people's views

about beauty has also evolved.

There are many misconceptions on people’s views on beauty. First, many

businessmen view the beauty salon industry as one of the most unstable and unprofitable

businesses due to its numbers of competitors. Second, working in a salon is not a stable

and ideal job. Third, people only view the salon as a place to avail of different beauty

enhancements. As the company focuses on those three points, it also plans to change the

people’s view about beauty salons.

Salon de Belleza plans to do this by being different among other salons on certain

aspects. The company wants to prove that the cosmetology is a stable profession. In fact,

10
based on statistics, the beauty industry is a thriving industry. With this in mind, the

company also plans to make the salon a customer’s second home. Asides from offering

creative and excellent services, the salon has a snack bar in it so that the customers do not

have to leave the establishment to enjoy good food. Instead, the customers can enjoy

selected pastries and cakes while waiting or availing the different products and services

offered by the salon. In addition, the salon offers complimentary tea and Wi-Fi so that the

customers can feel comfortable and at home. Through these, the company minimizes the

factors that make customers leave, as well as change the people’s minds of what a salon

is—fixing the third problem the company wants to fix.

The company’s course of action to face the first problem is by doing all the

aforementioned plans like the snack bar and offering creative, quality products. In doing

so, the company will show the perks of having a salon and the success that awaits a salon

entrepreneur. Next, the company’s course of action to solve the second problem is to train

employees and offer attractive benefit packages so that the employees would stay and

continually improve with creativity and passion. Lastly, the company’s course of action

to solve the third problem was already mentioned—to make the salon a second home for

the customers through innovations like the snack bar, free tea and Wi-Fi. In doing these,

the company would change the people’s views towards beauty by using the company’s

influence to promote both inner and outer beauty. In the process, it will continually

innovate its products and offer attractive packages to appeal to customers and make the

customers see true beauty.

11
Business Description

Salon de Belleza is a full-service salon that provides quality beauty care

treatments with utmost care at an affordable price; the services it offers includes haircuts,

hair coloring, manicure, pedicure, and nail art. Moreover, the company establishes its

position among others by employing trained professionals in providing the salon’s

services and using only the best materials. For the customer’s reference, here is a table of

the products and services offered by the salon:

Offered Products and Services Price Range

Haircut Php 150 – Php 200
Hair Coloring Php 1100 – Php 1600
Manicure Php 90 – Php 100
Pedicure Php 100 – Php 110
Nail Art Php 150 – Php 170
Hot Oil Treatments Php 900 – Php 1200
Hair Rebond Php 2000 – Php 2500
Hair Straightening and curling Php 600- Php 900
Other Products (Oils, Keratin, etc.) Php 200 – Php 800

All the salon employees are trained to deliver the mentioned services; however,

there are specific employees who are specially trained to deliver the services in order to

give the best to the customers.

What also makes Salon de Belleza different among other salons is that it has a

snack bar so that the customers do not have to leave the establishment to enjoy good

food. Instead, the customers can enjoy selected pastries and cakes while waiting or

availing the different products and services offered by the salon. The salon also offers

12
free tea and Wi-Fi so that the customers can feel comfortable and at home. Here is the

table of the proposed products that would be available in the salon’s snack bar:

Product Source Serving Size Price Range

Chiffon Cake Small-scale baker A slice Php 25-Php 40
Bread (preferably a new A piece Php 15- Php 25
Water baker) A bottle Php 15 – Php 20
Biscuits Supermarket (Fooda) A piece Php 10 – Php 25

Salon de Belleza supports starting and small enterprises by consigning another

company’s products in the snack bar. The company also wants to sell these products at an

affordable price.

All in all, Salon de Belleza offers a wide range of beauty treatments for both

women and men—truly becoming the affordable salon that redefines beauty and is

accessible to all. Through these, the salon stays true to its tagline which is, “Here at Salon

de Belleza, beauty is made especially for you.”

13
Insert business model table

Business Model

Salon de Belleza aims to provide creative, adaptable, reliable, and extraordinary

products and services at an affordable price. The salon does this through key activities,

which are providing beauty care services, such as haircuts, manicures, and pedicures, as

14
well as teaching and training employees. The expenses of these activities are the costs of

equipments, products, talent training, actualization, compensation, taxes, promotion, and

marketing. Next, the salon attracts customers—beauty-conscious men and women of all

ages who can afford the services—through catering these beauty services in the salon,

advertising on YouTube and Facebook, achieving customer satisfaction, and giving perks

and freebies. Furthermore, the company obtains key resources—which are trained staff,

social network, and beauty salon equipment and products—by working with key partners,

which are L’Oreal and cosmetology training centers, and acquiring revenues from service

fees and sales of beauty products and food products from the snack bar.

Owners, Business, and Organization Type

Salon de Belleza is a corporation owned by Hans Mosqueda and associates. The

company is a mechanistic type of organization that focuses on providing men and women

beauty care treatments, boosting not only one’s confidence but also satisfactorily

delivering contentment. The salon caters to men and women of all ages who can afford

the services. Whether the customer is affluent or not, salon employees are expected to

provide creative and excellent quality products at the right price. By offering products

that are patterned to the current trends in the industry and living up to its tagline, the

company sets the standards for providing beauty salon services like haircuts, hair color,

pedicure, manicure, and nail art.

Mission, Vision, Values

Salon de Belleza aims to enable all men and women, whether children, teen, or

adult, to appreciate beauty. It also aspires to be internationally known in the beauty

15
industry, not just as a typical salon. In doing so, it stays true to its core values—which is

being sensible, ambitious, loving, outstanding, and noble—by providing creative,

adaptive, reliable, and extraordinary products and services that are patterned to the

current trends in the industry. In doing so, it provides products and services like haircuts,

hair color, pedicure, manicure, and nail art with utmost care at an affordable price.

Through these, the company projects itself to be a profitable and harmonious salon for

everyone—a salon that enables one to truly appreciate beauty and is accessible to all.

Logo Significance

Salon de Belleza’s logo is inspired by the company’s name itself. “Belleza” is a

Spanish term for “beauty” in English. The company has a simple logo that is composed

of the company name, a rose and a pair of scissors that symbolizes both beauty and salon,

as well as the ‘cut’ or removal of misconception. The salon offers quality beauty

enhancements that will not only ‘cut’ or remove the current misconceptions in this

industry but also make new trends. Furthermore, although it is a simple design, it has a

deeper meaning to it. When taking a closer look at it, the rose is made up of two faces—a

female on the left side and a male on the right side. This symbolizes that Salon de Belleza

16
caters to all people, whether male or female. The colors purple and blue are also

incorporated into the background to give a touch of masculinity to contrast with the

overall femininity of the logo. It is designed that way to appeal to both male and female

customers.

Strengths and Weaknesses Analysis

Strengths Weaknesses

1) Skilled employees 1) High employee turnover

2) Adaptive services 2) High rent

3) Extensive social media influence 3) Flexibility of salon employees’

4) Good reputation working hours

5) Friendly environment 4) Poor industry ethics (gossip)

5) Unfamiliar name

Hair salons are involved in a competitive industry with diverse target markets.

With such diversity in an ever-changing industry, hair salons must have an aggressive

and strategic approach to maintain a competitive edge. The SWOT analysis is a tool for

building these strategies. SWOT stands for strengths, weaknesseses, opportunities and

threats. It helps businesses, including hair salons, to identify the areas in which it excels

at while classifying areas that require improvements and adjustments (McCormick,

2017).

Using the SWOT analysis, the company identifies its strengths: skilled

employees, adaptive services, extensive social media influence, good reputation and a

17
friendly environment. The establishment is composed of employees trained by experts. In

addition, the services offered by these employees are creative and adaptive. Moreover,

since the business has adaptive services, trained employees, and extensive social media

advertising, the business has great social media influence and good reputation. This is

important because 63% of customers actually expect companies to offer customer service

via social media channels, and 90% of social media users have already used social media

as a way to communicate with a brand or business (Hainla, 2018). Lastly, having a team

of skilled experts is important because the team is the backbone of a business (Society for

Human Resource Mangement, 2017).

Likewise, using the SWOT analysis, the company is able to identify its

weaknesses: high turnover, high rent, flexibility of staff working hours, poor industry

ethics, and limited connections. According to Corbett (2016), recruitment and retention of

employees are two of the biggest problems in the salon industry. Salon owners rely on

tryouts and references in recruiting, yet turnover remains high. High turnover affects the

salon because stylists who leave without notice disrupt staff schedules and client

appointments; it also affects sales and erodes a salon's reputation. Furthermore, the ease

with which stylists leap from one salon to another keeps hair business owners in constant

recruiting mode. Moreover, ethics problems also arise from this. These ethics problems

arise when employees steal salon products, leave without notice, and perform additional

services for free and underreport tips.To deal with high turnover and ethical problems,

the salon makes the stylists sign non-compete contracts. Lastly, the poor industry ethics

of a salon, such as gossiping, relatively affects the name and reputation of a business;

18
however, considering the culture here in the Philippines, the problem with ethics is not

actually affecting the business.

As a conclusion, although the weaknesses weigh a lot it still cannot outweigh the

benefits of a salon if properly managed.

Chapter 2

19
 MANAGEMENT PLAN

Organizational Chart

Hans Mosqueda
Owner

Marjorie Dy
Salon Manager

Alexandra Kate Plazo Ymel Montejo Dionne Cabahug

Fernandez ail Technician
Nail
Head Nail
Head Waste Management
Nail
Head Technician Technician Officer
Nail Salon
Technician
Hair Stylist Receptionist
Technician

Salon de Belleza departmentalizes according to the different management

functions within the company. These functional managements are categorized into the

owner, salon manager, head hair stylist, head nail technician, head salon receptionist and

waste management officer. In regards with the organizational structure, it allows

employees to operate in accordance with these functions for better efficiency and

integration of the processes in order to provide customers with excellent quality services.

By using this type of organizational structure, Salon de Belleza’s basic processes

are managed by highly qualified specialists. In doing so, it reduces costs by reducing

20
repetition or duplication and it creates less problems for communication and coordination

in the company.

Job Descriptions

Job Description
Hans Mosqueda The salon owner is the passion behind the business—the person
Owner with ultimate control of every aspect of business. Thus, the
owner must be creative and responsible for generating strategies
and profits, as well as branding, marketing, and hiring staff.
Marjorie Dy The salon manager oversees the overall operations—ensuring
Salon Manager that customers are satisfied, managing employees’ schedules
and performances, and budgeting and doing inventory. Salon
managers also make sure customer service needs and ideal salon
conditions in terms of appearance, cleanliness and safety are
met.
Alexandra Fernandez The salon stylist’s job involves creativity, from cutting hair to
Head Hair stylist performing scalp treatments. Typical duties include
shampooing, cutting, and styling hair, as well as doing hair
treatments which includes deep conditioning and hair coloring.
Kate Plazo The nail technician must be responsible and careful in providing
Head Nail Technician nail and hand services to customers, such as basic manicures,
nail art, nail repair, nail wraps and nail polishing. Pedicures and
the application of acrylic toenails are also performed.
Ymel Montejo The salon receptionist’s duties include greeting customers,
Head Salon answering inquiries, and referring to salon services. The salon
Receptionist receptionist also assists the owner and the manager when
necessary.

21
Dionne Cabahug The waste management officer is responsible for overseeing and
Waste Management coordinating waste disposal, refuse collection and recycling
Officer activities in an efficient and environmental-friendly manner.

Management Theories in Practice

Administrative Management: Henri Fayol

It is inherent for man to seek improvement in one’s quality of living. People

perform tasks and activities to satisfy one’s needs, and in doing so, find ways to improve

productivity; thus, the management theories. Management theories are important for all

organizations, for a business without strategies is doomed to fail. These theories help

organizations fulfill organizational goals and maximize productivity. It also helps

businesses maximize production by using human resources to the maximum potential

(Robert, 2019). Furthermore, even schools organize and put in order tasks using

management theories like the Administrative Management theory (Chaminuka, 2014).

Although the Administrative Management theory was proposed almost a century

ago, Fayol’s definition of management remains one of the most recognized in the present

day. The bedrock of this theory is the fact that it is applicable to a variety of managerial

and general organizational contexts (as cited in McLean, 2011). This means that most, if

not all, businesses can apply this theory—the theory that emphasizes that managers are

responsible for administering the affairs of the whole organization, regardless of its size

and market (as cited in McLean, 2011).

Moreover, Fayol expresses that the administrative function of an enterprise is as

important as its technical side, for it deals with the organization, selection, and

management of staff; the fact that it deals with staff makes it important for an

22
organization because an organization would fail if it is run by inefficient staff (as cited in

Wren, Bedeian, & Breeze, 2002). To prove this, Comambault, a steel company, was on

the brink of shutting down when its board of directors hired Fayol as its CEO, but the

firm’s performance increased when Fayol changed its management practices by carefully

selecting key subordinates in the departments of research, purchasing, manufacturing and

sales; obtained supplies of key resources; and transferred the company’s location near

key markets (Williams, 2017). Therefore, Salon de Belleza selects competent staff,

developed through training, to help the business run smoothly.

Furthermore, in Administrative Management, the managerial functions (planning,

organizing, leading, and controlling) are given more notice than employees’ technical

skills. Planning involves setting goals and determining a means to achieve those goals,

whereas organizing is deciding which people would do specific tasks (Williams, 2017).

Leading is inspiring and motivating employees to work hard to achieve the goals,

whereas controlling is keeping track of the progress toward goal achievement and taking

corrective action when needed (Williams, 2017).

To employ these functions at Salon de Belleza, the owner sets its goal which is to

enable customers to appreciate beauty and be internationally known by providing beauty

products and services with utmost care at an affordable price. Next, the salon assigns

specific tasks to employees—although all of the staff are trained to deliver the salon’s

services, there are specific people assigned as hair stylists, nail technicians, etc. The staff

shall also be monitored and motivated by the manager; when customers complain, the

manager will be there to help solve the problem. The manager also makes sure that the

staff do the jobs well and are motivated to do so by ensuring that the employees’ needs

23
are satisfied and that there are no distractions.

In addition, Williams (2017) states that Fayol’s 14 principles of effective

management are division of work, authority and responsibility, discipline, unity of

command, unity of direction, subordination of individual interests to the general interests,

remuneration, centralization, scalar chain, order, equity, stability of tenure of personnel,

initiative, and esprit de corps. The author explains that there should be individual tasks to

increase production; defined rules to guarantee proper behavior; one boss and one plan to

achieve each organizational objective; fair compensation and treatment in order to

achieve employee satisfaction; individual responsibility in order to avoid conflicts and

confusion; and employee initiative and unity in order to encourage combined effort.

Furthermore, Williams (2017) explains that employees must prioritize the organization’s

interest and have high tenure in the organization. In other words, employees must set

aside personal interest and have a regular and stable job in the company. Williams (2017)

also explains that managers’ authority should be proportionate with responsibility, or in

other words, the higher the managers’ authority, the higher the responsibility; and there

should be a balance in centralization depending on the situation and employees—the

employees are all under one authority.

To apply the aforementioned principles to the business, Salon de Belleza assigns

specific tasks to employees—there are qualified employees who are hairdressers, nail

artists, etc. The salon also regulates the manager’s authority and responsibility; the

salon’s manager exercises but does not abuse authority and is responsible for employee

performance. Moreover, Salon de Belleza implements discipline through employee rules

and regulations; Salon de Belleza’s company rules, such as regularly keeping the place

24
clean and consistently exhibiting proper behavior, are required to be followed at all times

and there are repercussions for those who fail to follow. Furthermore, entry-level

employees report to the head of each job, and in turn, the heads report to the manager,

who informs the employees of the objectives. The staff also puts the company’s goals

first, which is to provide not only different beauty enhancements but also satisfactorily

deliver contentment, before personal gains or interests. In addition, the company gives

fair salaries and equal treatment to employees—there is no favoritism in hiring and

giving salaries to employees since salaries are based on performance. Next, Salon de

Belleza improves the stability of tenure of personnel by making the employees sign

contracts and improving employee benefits as time passes. Therefore, the employees sign

non-compete agreements and two-year contracts which can be extended, and the longer

the employees stay, the better the pay and benefits. Lastly, the company improves

employee initiative and solidarity by informing the employees to provide only the best to

the customers; developing the employees’ ability to be able to perform well without

assistance from the manager; and encouraging teamwork among the management and

employees.

Through these management functions and principles, employees do the best to

help the salon achieve its mission—to provide beauty care treatments that would not only

boost customers’ confidence but also make the customers’ satisfied. Doing so would

attract more customers, for “happy customers are more likely to recommend the company

and its services or products to others, which acts as free advertisement for the company”

(Bergström and Leppänen, 2011, as cited in Merilyn, 2017).

Salon de Belleza understands that proper management and organization of

25
employees is important in improving overall company results. Through Administrative

Management, the business is able to deliver the best service to its customers.

Human Relations Management: Mayo’s Hawthorne Studies

Most organizations have workers that follow social norms determined by co-

workers; thus, most react not as individuals but as members of a group (Chand, 2009).

This phenomenon then influences a worker’s way of thinking and decision-making.

Workers react collectively as members of a group differently—some may choose not to

fight for one’s right, while some may choose to fight for better working conditions. In

order to find a way to resolve this issue and strengthen management-employee

relationships, the Human Relations Theory was made (Petryni, 2019).

Human Relations Management focuses on people—particularly the psychological

and social aspects of work. It holds that people’s needs are important and understands

that workers’ efforts, motivation, and performance are affected by work relationships and

the type of work that has to be done. One of the people who has greatly contributed to

this theory is Elton Mayo.

Williams (2017) states that Elton Mayo’s ideas became popular during the early

twentieth century when workers in the United States, Europe, and Asia were protesting

and highly dissatisfied. According to the author, “more than 4 million American workers

went on strike” and joined trade unions in order to get better salaries and working

conditions. Mayo’s work on Hawthorne Studies then became meaningful to businesses,

for managers wanted to find ways to step up production while satisfying the employees

(Williams, 2017).

26
 Furthermore, Williams (2017) states that during 1928, Mayo joined the

Hawthorne Studies, conducted in several stages at a Western Electric plant in Chicago

between 1924 and 1932, and played a significant role thereafter—writing about the

results in the book The Human Problems of an Industrial Civilization. The author

explained that during the experiment, the subjects’ productivity increased “whether

experimenters increased or decreased lighting, paid workers based on individual

production or group production, or increased or decreased the number and length of rest

pauses.” Williams discussed that Mayo and his colleagues concluded that the two things

that accounted for the results are: more attention was given to these workers than to those

not included in the experiment; and the group’s comments were listened to and discussed

before every change of the program, giving the workers a sense of participation.

To further explain, the Hawthorne Studies developed by Mayo and his colleagues

demonstrates that the workers need more care and attention than machines and that

financial incentives are not always the answer to employees’ motivation (Williams,

2017). hat is more important than financial incentives are working conditions and

attitudes, communications, and positive management response and encouragement, all of

which considerably affect work satisfaction and performance (Őnday, 2016). The theory

also states that the increased awareness from management and the development of a

united work group led to significantly higher levels of job satisfaction and authority

(Williams, 2017). Mayo’s Hawthorne Studies is important to the business because in

order for a company like Salon de Belleza to be successful, it must build a stable

relationship with and among its employees; after all, the management and the employees

work together.

27
 Moreover, Salon de Belleza is a full-service salon that provides quality beauty

care treatments—which includes haircut, hair color, manicure, pedicure, and nail art—

with utmost care, so it has to ensure the working conditions of its employees as well as

promote teamwork. Using this management theory, Salon de Belleza inspires the

employees to be creative and to strive more by bestowing the best working conditions—

the salon would have a calm and peaceful ambiance where each of the employees’ voices

are heard and are treated equally. The management would also give credit to employees

when it is due—to inspire and motivate the employees to continue to improve.

Additionally, increasing employees’ participation in what goes on around the

salon—in something as simple as changing the decorations or as important as getting new

tools and equipment—makes the employees feel like one with the management. This will

then lead to satisfaction and the development of a cohesive and harmonious work team.

Through Hawthorne Studies, the management can create new innovative products

together with its employees, and properly deliver the services that the company offers to

its customers; in turn, boosting the customers’ confidence and contentment in Salon de

Belleza and capturing the markets’ attention by creating a context of change for the

business.

Salon de Belleza recognizes the importance of teamwork and worker satisfaction

in increasing productivity; therefore, it ensures that workers are always satisfied with the

jobs in order for the employees to duly deliver different beauty enhancements with joy.

In conclusion, Administrative Management Theory and Hawthorne Studies may

go hand in hand. For example, the development of a socially united work group coincides

with one of Fayol’s principles of management, esprit de corps. Worker satisfaction, along
28
with other incentives such as better pay, also makes it easier for the employees to

cooperate with what the management is implementing. Therefore, Salon de Belleza

applies both, for proper management of the staff; management’s attention to the staff’s

needs and sentiments; and the development of a united work group are crucial for the

salon’s operation.

29
 Chapter 3

PRODUCT PLAN

Product Photos and Specifications

Products Description
Hair Cuts
Salon de Belleza carefully provides
haircuts that are aligned with the current
trends of the industry for customers
whether men or women.

Hair Color
Creative hair coloring services are
aligned with the current trends of the
industry for all men and women.

Manicure
Cosmetic beauty treatment for
fingernails are provided for both men
and women. There is also the option for
nail polish or nail art after.
Pedicure
Cosmetic beauty treatment for the feet
and toenails are provided for both men
and women. There is also the option for
nail polish or nail art after.

30
 Nail Art
Creative nail art services are aligned
with the current trends of the industry for
all men and women.

Other Services

Products Description
Hot oil treatments
Used to protect and nourish dry and
brittle hair are a popular option and
made from plant-based oils, like olive,
almond, and coconut, hot oil treatments
work by sealing the hair cuticle.
Hair rebond
A chemical hair treatment that makes
hair straight and shiny, or in other
words, it changes natural hair structure
and restructures hair

Hair straightening and curling

Creates a new look a special occasion—
perfect for occasions anytime, anywhere

Added Services

31
 Products Description
Snacks and beverages

Services can take up to 1-4 hours.

During that time, customers will be
thirsty and hungry; thus, the salon has a
snack bar to fulfill the needs of the
customers.
Free Wi-Fi

Nail and hair services take a

while, so while waiting, the customers
can use Wi-Fi to entertain themselves.
Free Tea

While customers are waiting for the

services, the customers can opt to drink
tea. Tea relieves stress which allows the
customers to really appreciate the
services the salon offers.

Unique Selling Proposition

Salon de Belleza carefully provides haircuts that are aligned with the current

trends of the industry for customers whether men or women. What makes Salon de

Belleza’s haircut different from the rest is that the employees make sure that the materials

used are clean and sanitary (hairbrushes and haircutting shears would be cleaned after

every use), for a salon consultant, Laila Ahmad, noted “Cebu’s salon industry in

particular does not put much weight on proper hygiene” (Dagooc, 2018). Furthermore,

32
the hairstylists are well-equipped with the necessary knowledge and experience through

different beauty trainings. This assures that clients will receive only the best service with

utmost care.

33
 Another highlighted product of the salon is nail art. Salon de Belleza creatively

provides nail art services that are aligned with the current trends of the industry, meaning

asides from plain nail polish, there is an option for creative nail designs—stars, flowers,

patterns, and even holiday-inspired designs. The salon introduces the beauty of nail art

through displays of nail stickers, a variety of polish colors and grooming kits, as well as

the employees sporting nail art designs.

34
 Chapter 4

MARKETING PLAN

Target Market

In this current generation, it is inherent for all people to be conscious of one’s

beauty. Unlike before, beauty was something only for the rich. It was also centered on

vanity, as opposed to necessity or everyday life, but now, it is inherent in almost all to

have one’s face enhanced with the use of make-up paraphernalia (The Philippines

Magazine International). Moreover, in the advent of technology, trends often change;

thus people also adapt to change. Because of this, people usually go to beauty salons

often. With this in mind, it is important to study the demographics of a place—whether it

is accessible or not.

Salon de Belleza chose to build the salon in the heart of the metropolitan area,

Osmeña Boulevard. Salon de Belleza chose this in order for it to provide excellent quality

products and services to both male and female: students, professionals and beauty-

conscious people of all ages.

The salon strives to provide versatile products that are patterned to the current

trends, behaviors and lifestyles of all generations. In doing so, it does not only leave an

excellent experience that could become an advertisement, but it would also open new

opportunities for the beauty salon industry.

35
Product Strategies

Salon de Belleza ensures that it will provide excellent quality products and

services, and in order to do this Salon de Belleza implements different methods. First, all

of the products and services of the establishment are only provided by experts. These

stylists are often the best product demonstrators and the best at choosing which product is

right for each client (Lovering, 2019). With this in mind, these stylists best knows which

fits and what a customer wants; thus, customers are pleased.

Moreover, in order to make the customers more pleased the salon must make

things accessible. This is why nail technicians who are performing manicures can work

near a display of nail stickers, a variety of polish colors and grooming kits. The proximity

of the product to the client is enough to convince some to make an impulsive purchase

(Lovering, 2019). This is also why the salon offers displays the products in workstations.

Instead of positioning the product to a distinct section of the salon space, it will be

integrated into stylists' work areas.

Asides from giving samples, the salon offers products made for the holidays—

such as candy-cane scented hand creams or heart-shaped nail stickers on Valentine's Day,

which are options for the gift-givers. Interspersing samples within full-sized bottles in a

gift basket can also get the word out about new product lines. Last and the most

important is that the salon will implement a tracking system for its customers so that the

company can develop a product strategy for the clients; it attains this by tracking client’s

36
visit and the kind of service received and suggesting products alternatives if the client

was less than satisfied (Lister, 2018).

Pricing Strategies

Salon de Belleza offers a simple list of products and services with a mark-up of

only 38% based on selling price. Although the products and services are set at a specific

price, the company will adjust the prices depending on the rate of inflation, supply and

demand, and the holidays (Staff, 2018). This way, it will minimize the risk of net loss and

it may offer more discounts to its loyal customers. What is certain is that it will always

offer products and services at an affordable price without compromising its quality.

Additionally, customers may choose from the add-ons and the offered loyalty programs.

The company takes advantage of these by emphasizing on the excellent experience, not

only on excellent service (Staff, 2018). Through these, the company can develop its

brand and influence in the industry and build a group of loyal customers.

Offered Products and Services Price Range

Haircut Php 150 – Php 200
Hair Coloring Php 1100 – Php 1600
Manicure Php 90 – Php 100
Pedicure Php 100 – Php 110
Nail Art Php 150 – Php 170
Hot Oil Treatments Php 900 – Php 1200
Hair Rebond Php 2000 – Php 2500
Hair Straightening and curling Php 600- Php 900
Other Products (Oils, Keratin, etc.) Php 200 – Php 800

37
 Packages Price Range
Mani-Pedi and Nail Art Php 150 – Php 300
Haircut and any highlights Php 1100 – Php 2000
Hair Rebond and hair cut Php 2000 – Php 2500

Place/Distribution Strategies

Salon de Belleza wants to give the best to its customers, thus it values

accessibility. With this in mind, the salon offers its products and services through its

branch located at Unit 02, Corner Anitas, Osmeña Boulevard which is a strategic area.

The salon is located in the heart of the metropolitan area where public transportation

usually passes.

Moreover, the company makes sure that the salon has an appealing atmosphere

not only for the customers but also for the employees. In doing so, the salon makes sure

that the establishment is nice and clean and has good lighting and smell. The

establishment also has appealing decorations, like little plants which may either be

cactuses and alovera. The salon aims that as customers enter the establishment, the

customers will feel relieved from the music, relaxed from the soothing smell of flowers,

and at home with the furniture and decorations that the salon has—like a second home.

Lastly, the salon keeps true to its tagline by making itself accessible, thus

customers are free to inquire about different services and its availability through the

salon’s email (salondebelleza@gmail.com), telephone number (401-1332), and through

its social media accounts like Facebook, Twitter, and Instagram accounts

(SalondeBelleza2019.ph).

38
Promotional Strategies

Salon de Belleza aims to improve its influence through different advertisements.

It will focus on advertising on the internet, specifically through Facebook, Twitter, and

Instagram. It also plans to offer services to local artists at a cheaper price with the

condition to advertise the salon. The company will then use these artists to make the

salon more known to people, especially to those unfamiliar to it. The company plans to

maintain this by creating hashtags and posting videos of local artists enjoying the

products and services the salon offers not only in Facebook, Twitter, and Instagram, but

also through YouTube (Lister, 2018). Furthermore, the company offers referral discounts

for ordinary customers (Lister, 2018). Lastly, Salon de Belleza aims to make itself a

haven for creativity and a major influencer of different trends. This is why it will launch

activities that will foster creativity and are in line with a specific holiday or event like

Halloween, Christmas, and Valentines. In doing so, it will not only lead the beauty

industry to greater heights, but it will also increase its prestige and attract a huge group of

potential customers to avail its products and services.

39
Brochure

Front

Back

40
 Chapter 5

OPERATING PLAN

Business Hours and Days of Operation

It is essential for a business to study the demographics of the place that it plans to

operate on. Studying the demographics of the area of a business’s operation is one of the

factors that will allow an establishment to clearly plan different strategies concerning a

business like a business’s hours and days of operation.

Since salons are involved in service, most of the competitors open daily

[ CITATION Kie19 \l 13321 ] . Therefore, Salon de Belleza opens daily, including holidays

because it believes that beauty should always be available. However, the business’s hours

of operation varies.

Since the salon is located in the metropolitan area, specifically along the Osme ña

Boulevard, the salon will open from 10:00am to 9:00pm on regular work days or

weekdays, 9:00am to 9:00pm during Saturdays, and 9:00am to 9:30pm during Holidays

and Sundays. The establishment chose such hours of operation because those are the

times when people are usually already awake and are still energized enough to visit a

salon [ CITATION Jen15 \l 13321 ] . This goes to show the salon’s flexibility and

commitment to provide its customers excellent service—especially for those who work

on office hours and are only available during weekends. Salon de Belleza is a salon that

truly cares for all of its customers—providing satisfaction and contentment.

41
Supply Chain Management

INFORMATION FLOW

SUPPLIER SERVICE PROVIDER CUSTOMERS

General Salon Supplier

SALON de BELLEZA All males and

females who
seek to be
Hair Equipment Supplier beautiful and
can afford it.

Nail Equipment Supplier

Reverse Product Flow

PRIMARY CASH FLOW

Payment from Supplies Payment

from Products SUPPLIER SERVICE

PROVIDER CUSTOMER

PRIMARY PRIMARY
PRODUCT PRODUCT
FLOW FLOW

42
 Supply chain management is the management of the flow of goods and services.

This includes all processes that transform raw materials into final products. It involves

the active streamlining of a business's supply-side activities to maximize customer value

and gain a competitive advantage in the marketplace. This is why it is important to know

an establishment’s supply chain management.

Salon de Belleza’s supply chain management starts from its different suppliers

namely the general salon suppliers, hair equipment suppliers and the nail equipment

suppliers. General salon suppliers provide the salon chairs, mirrors, trays, lights, oils, and

salon decorations. Hair equipment suppliers provide the salon blow dryers, hair irons,

curlers and scissors. Lastly, nail equipment suppliers provide the salon nail cutters,

nippers, cuticle oil and nail polish. All of these suppliers deliver these materials to Salon

de Belleza.

The salon’s employees will use these products in order to provide excellent

quality products in exchange of money as payment. Part of this money will include the

payment for the supplies and a part of it will be used to pay employees. As these happen,

information is being transmitted back and forth. These information includes the

customer’s preferences, the salon’s strategies, and many more information that can be

used to improve the supply chain management of the Salon de Belleza. In doing so, it

provides affordable but excellent quality services—truly living up to its standards.

Quality Control

Every business needs a quality control policy, whether it manufactures products

or provides services; however, these have to be cost effective. On the other hand, quality

43
control adds value to the products offered by an establishment. An establishment's

challenge is to balance the cost of quality control with the benefits, especially for a

service type of business, like a salon.

Salon de Belleza ensures the quality of its services by implementing different

quality control methods. It makes sure that all salon employees are trained at least every

quarter. Asides from that, all salon employees are required to have another training on

different specializations like on hair styling or nail art every quarter (Chaves, 2019).

Next, all salon employees are given a chance to experiment different styles and to be

imaginative. Hair stylists are given one hour every week to suggest different hair styles

and mingle together with fellow hair stylists. Likewise, nail technicians are also given

one hour every week to explore different ways to create nail art and mingle with fellow

nail technicians. This does not only improve creativity and allow better ideas to emerge,

but this also relieves the employees' stress and unites the team (DeMers, 2016).

Furthermore, in order for employees to do a great job, only excellent quality

materials should be used. This is why Salon de Belleza will also analyze and evaluate the

materials that it will use (Johnston, 2019). The analysis will focus on the quality and the

affordability of a certain item and whether it would be worth it to use it. This is

important because even if the salon buys expensive but excellent quality products, it is

still at risk of losing valuable customers because of the high price. Low-class earners,

which comprise a majority of the customers, will avoid the salon because it is no longer

affordable. With this in mind, Salon de Belleza does not only choose affordable but also

cost-efficient materials that have excellent quality like L’Oreal.

44
 L’Oreal is recognized to be a global beauty leader (L’Oreal USA, 2019).

Although getting materials here locally or using organic materials is a fine idea, the salon

holds on to the name of the beauty magnate and its experience within the industry. This is

because the salon is still establishing its influence within the community, and it cannot

risk its name. Moreover, in order to protect the reputation of the salon, it has stated

different policies in handling various materials. Beauty products, like L’Oreal products,

are to be labelled properly and placed on the designated cabinets (Tucker, 2019).

Additionally, when using these products, employees must use disposable items like

cotton to ensure sanitation and to make sure that diseases won't spread.

In addition to what was stated, Salon de Belleza makes sure that its services are

safe and sanitary by implementing different methods (Tucker, 2019). The salon

employees are expected to sterilize nail and hair equipments, like scissors, nail cutters,

and nippers, after every use. Aside from that, the salon will have a minor cleaning daily.

This includes sweeping the floor; washing the salon materials with boiling water then

drying it; wiping other salon equipments like the chairs; sharpening eyebrow pencils or

scissors; and checking if materials and equipments are in perfect condition. Additionally,

the salon will have a major cleaning every two months. The salon will be sanitized and

cleaned from its ceiling down to its floors using bleach and other cleaning materials. This

is important in order to ensure that the salon will not become an area where diseases like

HIV and AIDS can spread. It is also important to check if all of these policies are done

sincerely by employees.

Like what was stated, Salon de Belleza will check regularly on the outputs of the

employees. The salon manager will check if an employee’s performance has improved or

45
not. If not, the salon manager will approach the employee and talk. After this, the salon

manager will take the appropriate action. Asides from that, in order to improve

productivity, it is important for the salon to create a good atmosphere for work. In order

to achieve this, Salon de Belleza improves the employees' unity—the salon will have

team building activities once a year. After that, employees will rate fellow coworkers

through online surveys (Delforge, 2017). This is important so that the team can eliminate

bad habits that is present in other fellow employees, such as bad ethics. Furthermore, the

salon aims to unite the team so that there will be a harmony in doing different tasks.

Lastly, the salon will collect data from the customers (Gawlowski, 2016). The salon will

establish clear guidelines for customer service and routinely check customer satisfaction.

This can range from simple observations to customer surveys, as well as counting the

number of returns and complaints the salon receives.

Asides from all of these it is very important for the company to learn from other

companies (Harden, 2019). A salon can also learn from the methods other companies

employ to improve the quality of one's products by using the Total Quality Management

theory (American Society for Quality, 2019). For further explanation, the Total Quality

Management began in Japan and involves building quality into every phase of the

operation; and instead of focusing on catching mistakes, the establishment must strive to

prevent mistakes from occurring (American Society for Quality, 2019). Through this, the

management can find better ways to solve the problems the establishment faces or will

face.

Waste Management

46
 It is evident that beauty salons produce waste daily, such as hairs, bottled

shampoos, plastics, chemicals, nails, cottons, tissues, and food wastes. Salon de Belleza

aims to manage the waste that are produced by an operating cycle. In doing so, it applies

the three R’s which stands for reduce, reuse, and recycle (Vallance, 2017). To properly

implement these steps, the first thing that the salon has to do is to segregate the

biodegradable, non-biodegradable and the hazardous materials that the salon produces.

To reduce the waste in the salon environment, the salon also adapts recycling, and checks

product bottles to see if it can be recycled before disposing of the bottles. After all,

implementing good waste management practices does not only help protect the

environment but can also be beneficial to salons (Schwarzkopf Professional, 2016).

Moreover, the salon’s wastes have a huge impact on the clients, it can damage the

salon’s name and even the environment. This is why Salon de Belleza makes an effort to

minimize wastes. The best way to do this is by reducing the use of chemical and plastics;

by sweeping every after cut; and by segregating the food wastes.

In disposing of chemical wastes, the chemicals should be kept in a container so

that it will not contaminate other things. In addition, all the sinks in the salon should have

a filter that catches the chemicals so that it won’t harm the environment (Scheel, 2019).

Another way to help the environment is to properly manage plastic containers from

products such as shampoos and conditioners. These should be recycled or recovered for

reuse (Tarrant, 2015). Another thing the salon can do is to sell the plastic containers it

uses; same can be done to compost.

Composts are made from wastes like food. Although it is not in line with the

business, it can become an additional income (Paprec, n.d.). Lastly, the salon will donate
47
the hair wastes to wig manufacturers who will also donate the wigs to cancer patients.

Not only is the salon able to properly dispose hair wastes but also help those who are in

need like cancer patients.

In conclusion, Salon de Belleza aims to manage the waste it produces. No matter

how small or big a waste may be, it is important to manage it properly because not only

does the salon help the environment but also profit from doing it. After all, all people rely

on the environment.

48
APPENDICES

49
 Chapter 6

APPENDICES

Definition of Terms

Beauty is defined as a status that is inherent among all and follows a standard that is

based on culture. In the context of the Filipino culture, beauty is usually imagined as

someone who is white and has a long nose—a mestiza, in other words.

Beauty enhancements is defined as altering any part of one's physical attributes to

achieve satisfaction. In the context of beauty salon cosmetology, beauty enhancement

refers to the act of modifying one’s hair or nails in order to improve a person’s over-all

appeal. Beauty salons provide services that enhance one’s hair and nails.

Confidence is a type of feeling that relates to self-empowerment. Salon de Belleza

improves this by delivering services that will make a customer appreciate one’s beauty

more and by making the customers feel special.

Cosmetology is a thriving industry that involves beauty enhancements. It employs the

largest number of workers. Based on the survey conducted nationwide among the 10,065

establishments in the formal sector of the economy that are engaged in ‘Other Service

Activities’, beauty parlors registered the highest number of establishments at 3,092.

50
Ethics is defined as the appropriateness of action that is based on business policies and

rules. In Salon de Belleza, employees are expected to sign contracts such as noncompete

contracts before working. This is done in order to maintain order and harmony within the

establishment and to maintain business ethics.

Employee turnover is defined as the rate to which employees are changed within the

establishment. In the Philippines, cosmetologists are not highly regarded and are not

considered professionals; this is why cosmetologists usually change jobs or find salons

that have higher wages.

Minimum Wage is the lowest possible salary that could be given to the employees based

on the government’s rate. However, here in Salon de Belleza, employees enjoy attractive

benefits on top of it provided that the employees meet the salon’s standards. This is to

ensure that employees will always strive for the best.

Noncompete contract is defined as an agreement between employer and employee in

which employees conform to privacy by promising not to share anything from the

workplace and not to enter into competition with the employer during or after

employment. Therefore, Salon de Belleza requires employees to sign a noncompete

contract before working to makes sure that the employees will maintain business ethics

and that the operations within the salon will be smooth and harmonious.

Satisfaction is defined as the feeling of delight from every visit. The establishment

guarantees that customers will feel happy by making sure that its quality is great.

Furthermore, the salon has added services that can surely make the customers feel relaxed

like the snack bar, free tea, and free Wi-Fi.

51
Tenure is defined as the period an employee spends in the establishment, which could be

bound by the contracts. Salon de Belleza makes its employees sign contracts that are not

only limited to noncompete contracts but also other contracts like those that concern the

stability of tenure.

52
Personal Information:

Name (Optional): Age:

Gender: Male Female

 Monthly Income/Allowance (put a check mark inside then box of your answer):

Php 20,000 and below Php 21,000 – Php 35,000

Php 36,000 – Php 50, 000 Php 51,000 – Php 75,000

Thank you for agreeing to take part in this survey. We will be gaining your thoughts and
opinions to better serve customers in the future. We assure you that all information
gathered will be solely for research and will be kept confidential. Thank you!

Instructions: Please answer Shade the circle of the best answer.

1. Why do you to go a salon?

o To be more aesthetically pleasing
o To reinvent oneself
o To be pampered
o To heal a broken heart
o To spend money

2. How often do you go to salons?

o Monthly
o Quarterly
o Semiannually
o Annually

Others (specify):____________

3. What services do you usually avail in salons? Select all that apply.
o Haircut
o Hair Color
o Hot Oil
o Hair Rebond
o Manicure
o Pedicure
o Nail Art

Others (specify):____________

53
4. What prompts you to visit a salon more than once?
o Promos
o Discounts
o Good service
o Loyalty
o Occasions/Event

Others (specify): ____________

5. How do you usually feel after salon visits?

o Great
o Fine
o Unsatisfied
o Angry

Others (specify): ____________

6. How often do the services you get meet your needs and wants?
o Always
o Sometimes
o Occasionally
o Rarely
o Never

7. If you are satisfied with the services of a salon, would you recommend it to others?
o Yes
o Maybe
o No

8. How would you rate your satisfaction of salons within Cebu City?
o Unsatisfactory
o Satisfactory
o Excellent

9. Does your salon visit make you confident or more confident?

o Yes
o Somewhat
o No

10. Choose the information you would use to select a new hairdressing/beauty salon.
Select all that apply.
54
o Location
o Pricing
o Special offers / vouchers
o Quality of treatments
o Brand image
o Recommendation
o Customer reviews
Others (specify):

55
REFERENCES

American Society for Quality. (2019). What is total management? Retrieved November

17, 2019, from https://asq.org/quality-resources/total-quality-management

Chand, S. (2009). Human Relations: Top 8 importance of Human Relations – Explained!

Retrieved November 9, 2019, from http://www.yourarticlelibrary.com/human-

resources/human-relations-top-8-importance-of-human-relations-explained/32394

Chaves, T. (2019). What special training does a hair stylist need? Retrieved November

17, 2019, from https://work.chron.com/special-training-hair-stylist-need-

2988.html

Corbett, M. (2016). What weaknesses does a hair salon business have? Retrieved

September 24, 2019, from https://smallbusiness.chron.com/weaknesses-hair-

salon-business-have-64479.html

Dagooc, E. (2012, September 28). Salon operator: Beauty is a growing business in the

Phl. The Philippine Star. Retrieved from https://www.philstar.com/cebu-

business/2012/09/28/853812/salon-operator-beauty-growing-business-phl

Dagooc, E. (2018, April 17). Lack of proper hygiene noted in Cebu’s salons. The

Freeman. Retrieved from https://www.philstar.com/the-freeman/cebu-

business/2018/04/17/1806540/lack-proper-hygiene-noted-cebus-salons Delforge,

V. (2017, July 10). 10 need-to-know tips for the first-time salon manager.

Retrieved November 16, 2019, from https://www.phorest.com/blog/first-time-

salon-manager/

DeMers, J. (2016). 5 ways to inspire creativity in your employees. Retrieved November

17, 2019, from https://www.entrepreneur.com/article/271905

56
Department of Health. (2016). Code on sanitation of the Philippines. Retrieved from

https://www.doh.gov.ph/node/5731

Gawlowski, S. (2016). 5 ways to effectively communicate with salon clients. Retrieved

November 17, 2019, from https://www.versum.com/m/blog/effective-way-to-

communicate-with-salon-clients/

Hainla, L. (2018). 21 social media marketing statistics you need to know in 2019.

Retrieved October 24, 2019 from https://dreamgrow.com/21-social-media-

marketing-statistics/

Harden, D. (2019). 10 powerful insights I learned from starting a small business.

Retrieved November 17, 2019, from https://www.bluecompass.com/blog/10-

powerful-insights-from-starting-a-small-business

Jen. (2015). Sixty-five salon marketing ideas: The ultimate list. Retrieved November 15,

2019, from https://www.millenniumsi.com/blog/65-salon-marketing-ideas/

John. (2018, November 20). Is owning a hair salon profitable? Retrieved October 14,

2019, from https://thesalonbusiness.com/are-hair-salons-profitable/

Johnston, K. (2019). Quality control policy. Retrieved November 17, 2019, from

https://smallbusiness.chron.com/quality-control-policy-70070.html

Kuligowski, K. (2019). 10 things to do before opening a salon. Retrieved November 15,

2019, from https://www.businessnewsdaily.com/8647-opening-salon-tips.html

Lister, M. (2018). 17 hair-raising salon marketing ideas. Retrieved October 24, 2019,

from https://www.wordstream.com/blog/ws/2017/02/17/salon-marketing-ideas

L'Oréal USA. (2019). L'Oréal named to fast company's inaugural list of the 50 best

workplaces for innovators. Retrieved from https://www.prnewswire.com/news-

57
 releases/loreal-named-to-fast-companys-inaugural-list-of-the-50-best-workplaces-

for-innovators-300896395.html

Lovering, C. (2019). Salon product strategy. Retrieved October 24, 2019, from

https://smallbusiness.chron.com/salon-product-strategy-26402.html

McCormick, M. (2017). The introduction of swot analysis. Retrieved September 24,

2019, from http://smallbusiness.chron.com/introduction-swot-analysis-4745.html

McLean, J. (2011). Fayol - Standing the test of time. Manager: British Journal of

Administrative Management, 74, 32-33. https://e-

space.mmu.ac.uk/621543/1/ContentServer.pdf

Merilyn, L. (2017). Customer relationship marketing in hair and beauty salon

(Bachelor’s thesis, Laurea University of Applied Sciences, Vantaa, Finland).

Retrieved from

https://www.theseus.fi/bitstream/handle/10024/135063/ONTMerilyn%20.pdf?

sequence=1&isAllowed=y

Musingafi, M. C. C., Zebron, S., Kaseke, K. E., & Chaminuka, L. (2014). Applying

management theory into practice at secondary school in Zimbabwe: Teachers

impressions of classical management functions at Mapakomhere Day Secondary

School in Masvingo. Retrieved November 9, 2019 from

https://www.researchgate.net/publication/271522533_Applying_Management_Th

eory_into_Practice_at_Secondary_School_in_Zimbabwe_Teachers_Impressions_

of_Classical_Management_Functions_at_Mapakomhere_Day_Secondary_School

_in_Masvingo

58
National Wages and Productivity Commission. (2018). Region VII (Central Visayas).

Retrieved October 6, 2019, from

https://nwpc.dole.gov.ph/regionandwages/region-vii-central-visayas/

Őnday, O. (2016). Human resource theory: From Hawthorne experiments of Mayo to

groupthink of Janis. Global Journal of Human Resource Management,4, 95-110.

http://www.eajournals.org/wp-content/uploads/Human-Resource-Theory-From-

Hawthorne-Experiments-of-Mayo-to-Groupthink-of-Janis.pdf

Paprec Group. (n.d.). Retrieved November 18, 2019, from

https://www.paprec.com/en/understanding-recycling/recycling-plastic/selling-

plastic-materials

Petryni, M. (2019). The importance of Human Relations in the workplace. Retrieved

November 8, 2019, from https://smallbusiness.chron.com/importance-human-

relations-workplace-23061.html

Philippine Statistics Office. (2017). 2015 annual survey of Philippine business and

industry (ASPBI) - other service activities sector for all establishments: Final

results. Retrieved September 20, 2019, from https://psa.gov.ph/content/2015-

annual-survey-philippine-business-and-industry-aspbi-other-service-activities-

sector-0

Robert, C. (2019). The importance of modern management theories in managing people.

Retrieved November 8, 2019 from https://bizfluent.com/info-8419159-

importance-management-theories-managing-people.html

Roth, E. (2008). Goodreads. Retrieved from Quotes:

https://www.goodreads.com/author/quotes/80495.Eric_Roth
59
Scheel, W. (2019). How to manage hazardous waste in your salon. Retrieved November

18, 2019, from https://www.salontoday.com/603709/how-to-manage-hazardous-

waste-in-your-salon\

Schwarzkopf Professional. (2016). Ask education for hairdressers. Retrieved November

18, 2019, from http://www.schwarzkopf-

professional.co.uk/skp/uk/en/home/education/ask/business/0615/do-you-have-a-

salon-action-plan-for-waste-minimisation.html

Society for Human Resource Management. (2017). Developing and sustaining high-

performance work teams. Retrieved from

https://www.shrm.org/resourcesandtools/tools-and-

samples/toolkits/pages/developingandsustaininghigh-performanceworkteams.aspx

Staff, A. (2018). Salon pricing: How to set the correct price from the start. Retrieved

October 24, 2019 from https://wpamelia.com/salon-pricing-strategy/

Statista. (2019). Hair care: Philippines. Retrieved September 22, 2019, from

https://www.statista.com/outlook/70040000/123/hair-care/philippines

Sultana, S., Islam, T., & Das, S. (2016). Measuring customer satisfaction through

SERVQUAL model: A study on beauty parlors in Chittagong. European Journal

of Business and Management, 8(35), 97-108.

https://pdfs.semanticscholar.org/09d0/e434cf624b5efc77cc3dd3aa060f95e94e9d.

pdf

Tarrant, C. (2015). Eco hair and beauty. Retrieved November 16, 2019, from

http://ecohairandbeauty.com/salon-waste-management/

60
The Philippines Magazine International. (2016, October 11). Beauty and wellness

industry boom. The Philippines Magazine International. Retrieved from

https://thephilippinesmagazine.com/celebrities/

ThreeG Elearning FZ LLC. (2016). Cosmetology and beauty parlour management.

United Arab Emirates: 3G Elearning FZ LLC.

Tucker, K. (2019). Salon safety procedures. Retrieved November 17, 2019, from

https://l.facebook.com/l.php?u=https%3A%2F%2Fwork.chron.com%2Fsalon-

safety-procedures-6992.html%3Ffbclid%3DIwAR1wisTqjYJ1H-

Lxg6jz1raja8oH6zDRPZZ7SFfWygm8ql29hPFzu5d5sG0&h=AT1Xd-

kOQTrv7MuXTbrbc9swDapULfvBKxMnfPfSkUY3qN_rrmaL8SngDS4QAAFH

O9R9fqZYX6z20WJ5nwV4

Vallance, M. (2017). Offering the highest standard of salon consultancy, salon coaching

and skills development. Retrieved November 18, 2019, from

http://www.back2myroots.co.uk/2017/01/30/the-three-rs-for-salon-and-stylist-

success/

Wagner, N. (n.d.). Beauty salon industry analysis. Retrieved September 24, 2019, from

https://smallbusiness.chron.com/beauty-salon-industry-analysis-70660.html

Williams, C. (2017). Organization and management: Concepts and applications.

Philippines: Abiva.

Wren, D., Bedeian, A., & Breeze, J. (2002). The foundations of Henri Fayol’s

administrative theory. Management Decision, 40(9), 906-918.

http://citeseerx.ist.psu.edu/viewdoc/download?

doi=10.1.1.519.3372&rep=rep1&type=pdf

61
Youngupstarts. (2018). Most profitable businesses in this era. Retrieved from October 24,

2019, http://www.youngupstarts.com/2018/09/08/most-profitable-businesses-in-

this-era/

62