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BARBER SHOP

PEST AND SWOT ANALYSIS IN PREPARATION

FOR THE BUSINESS PLAN

OF GRADE 12 – ABM

Wella Mae D. Bonifacio

Rocella Carambacan
Aimie S. Exim
Krissa Marie B. Itabag
John Robert S. Jemina
Joolibee D Magbanua
JudithD. Mirgo
Claire G. Reboton

March 2020
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INTRODUCTION

Service industry is an industry made up of companies that primarily earn revenue

through providing intangible products and services. The service industry has been

growing consistently this is because there will always be a demand for human

intelligence. One of its example is the barber shop that offers service to its customers

through cutting/ trimming of hairs. A barbershop is one of the places where people go to

get their hair cut. To start a barber shop the owner provides men and boys with grooming

services such as haircuts and shaves. They are small shops that specialize in cutting

men’s hair and shaving the neck and face. Since the times of ancient Rome,

approximately 296 B.C. specifically, the barber shops has been known as a place to

socialize in the neighborhood. It is a place for men to network and connect with others in

the community.

The aim of this study is to provide a SWOT AND PEST analysis in the Barber

shop determining through its Internal the Strength and Weakness and its External the

Opportunities and Threats. Moreover, it is intended to propose a strategic solution to its

weaknesses to gain competitive advantage. Also, the study aimed to come up with a game

plan to withstand the threats along their way.

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HISTORY OF THE BUSINESS

Barber shops were around as early as 296 B.C as Greek men used to gather in a

market place to get their hair and beards trimmed while debating and gossiping. Barber

shops also have some history in the medical world since barbers once served as a surgeon

and dentist. Can you imagine walking into your local shop and asking for a wart removal,

a capped cavity, and a bald Caesar? The actual trade was formally introduced in the U.S.

in the 19th century, as A.B. Moler (no relations to molar opens a barber store in Chicago,

making it the first institution of its kind anywhere in the world

Describing a modern barbershop is only getting more and more difficult over the

course of the years as it continues to evolved. Once in a while, people add unique

elements to their barber shop to set it apart from others. After more than ten years living

in the Philippines, Bridgette and Fernando found themselves frustrated with the

expensive haircuts that they got. Their natural curly hair proved to be too difficult for

local Filipino barber to style succesfully. Hence, the birth of Nando Barber shop- the

first Afro- American barber shop in the Philippines. (WHENINMANILA.COM TEAM

HASHTAG)
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SWOT ANALYSIS

S W O T

STRENGTH WEAKNESS OPPORTUNITIES THREATS

1. Location - Best 1. Less number of 1. Strong market 1. Limited

site to encourage manpower. growth. availability of
customers and skilled workers.
gain profit.

2. Skillful Workers 2. Lack of advance 2. More potential 2. Competition

technologies. customers such
students,
professionals,
and etc.
3. Extended 3. Not widely 3. Business 3. Customers
opening hours known innovations such dissatisfaction
as cordless
clippers (e.g.
Panasonic GP81,
Andi Envy LI,
Wahl Magic
Clip and etc.)
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P E S T
POLITICAL ECONOMIC SOCIAL TECHNOLOGICAL

1. ENVIRONMENTAL LAWS 1. INFLATION 1. CULTURE – 1. Technological

– Employees shall not exceed – Prices of Some religions advancement –
eight (8) hours a day. tools used for have rules and Barbers can now
Exceeding eight (8) hours can barbering beliefs that used electrical
still be done provided that rises. cutting of hair equipment such as
there is an arrangement is prohibited. electric razor to
between the employer and the make their work
employee for working easier and faster.
beyond eight hours should
have a corresponding
overtime payment. ( Article
83 of the Labor Code)

2. ENVIRONMENTAL 2. INTEREST 2. GENDER – 2. Technological

REGULATIONS - employers RATE – Hairstyles obsolescence – No
are now required to comply Bank loans offered best longer using of old
with occupational safety and used for suit for men tools for barbering.
health standards including putting up only.
informing workers on all the business.
types of hazards in the
workplace.(The Occupational
Safety Health Standards Act
of the Republic Act (R.A)
11058.

PEST ANALYSIS
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SWOT ANALYSIS STRATEGIES

O T
Opportunity Threats
(external, positive) ( external, negative)

S 1. Skillful barbers Creating 1. Give promos to the

Strength unique hairstyle such as: customer such as hair

(internal, positive) Comb over clean cut, cutting with free

Barbers Cut, Short quiff washing of hair and
clean cut hair and etc. massage.
S2 O3 S2 T2
2. Increase salaries to the 2. Create a brochure with
employee. wide variety of
S3 O1 hairstyles.
S2 T3
W 1. Give accurate overtime 1. Hiring new skillful

Weakness payment to workers. employee.

( external, negative) W1 O1 W1 T1
2. Giving off flyers to 2. Using of mew
introduced the business. innovations in the barber
W2 O3 industry.
W2 T2
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CONCLUSION

Based on the analyzation of strategies, in putting up this type of business the

primary help is to have a skillful workers or barbers that can create unique hairstyle such

as Comb Over Clean Out, Barber’s Cut, Short Quiff Clean Cut, and etc. to enable for the

customers to choose to which hairstyles they likely the most. Least to make improvement

is to hire more skillful employee which is hard to find because we need to choose

workers who are expert on this field of barbering to make the business more profitable.
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RECOMMENDATION

In order to make our business succesful we recommend the following.

1. Create a brochure of different hairstyle that the customers can freely choose to avoid

customers dissatisfaction.

2. Give accurate overtime payment to workers so that they will be encouraged to work

overtime in the barber shop when there is more customers.

3. Using of new innovations in the barber industry such as cordless clippers (e.g.

Panasonic GP81, Andi Envy LI, Wahl Magic Clip and etc.) can help us to compete our

business from other competitors.

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Appendices

Using of new innovations such as cordless clippers can help our business grow

and basically we can gain more potential customers and together with these technology

advancements we’re not left behind by our competitors in the barber industry.
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