Section I – Organizational History
Manding Corporation, a lot of money 1000 firm, specializes in cosmetic salons, hair repair centers, and cosmetology education. The Company is the owner of, franchises, or holds control interests in approximately 12, 700 around the world locations (Regis Corporation, 2009).
Regis’ business and business locations run under concepts such as Supercuts, Sassoon Salon, Regis Hair salons and spas, MasterCuts, SmartStyle and Frizzy hair Club for different persons (Regis Company, 2009).
Additionally , Regis maintains an ownership interest in Provalliance, which works salons generally in Europe, under the styles of Jean John David, Franck Provost and Saint Fucus.
Regis as well maintains control interests in Empire Education Group inside the U. S. and MY OWN Style principles in Japan. System-wide, these types of and other concepts are located inside the U. T. and in above 30 various other countries in North America, South America, Europe, Africa and Asia (Regis Company, 2009).
In its nearly being unfaithful, 500 American salons, Manding offers a variety of hair care companies including haircuts, styling and coloring, in addition to a wide selection of specialist hair care items (Regis Company, 2009).
Through their ninety six Hair Club for Men and Women locations, Regis offers a comprehensive menu of locks restoration products and services (Regis Corporation, 2009).
Section II – Strengths and Weaknesses
I might consider a pair of Regis Corporation’s strengths to become their long life & brand recognition and salon geographic locations. A pair of Regis Corporation’s weaknesses are poor supervision and poor management.
Power #1- Longevity & Brand Recognition
Manding began 88 years ago as then has grown into a multi-billion dollar business. Regis Company owns many well-known brands such as SuperCuts, Master Reductions, Vidal Sassoon, and ProCuts. They also have their own complete hair-care line of products named DesignLine.
Strength #2- Salon Geographical Places
Regis strategically places all their salons in locations with high buyer traffic flow including malls, shopping centers, and Wal-Mart Supercenters. Having salons located in these areas allows for client flexibility in addition to a highly obvious location pertaining to potential walk-in clientele. Manding is also provides salons with Canada and Puerto Vasto, as well as more than 400 salons and spas operating internationally in Europe (Regis Firm, 2009).
Weak spot #1- Poor Management
Following reading various Regis worker reviews by glassdoor. com, the majority of downsides the employees detailed had to do the management. Staff described supervision as unconcerned with quality of stylists hired, unresponsive to employee’s needs and concerns, and low chance for advancement. Upper and lower level management need to be properly trained and incorporate staff empowerment consisting of employee acknowledgement, sharing management, and offering feedback (“Glassdoor. com, “).
Weakness #2- Poor Customer care
After critiquing many client reviews, many of the complaints had been centered on customer service issues. Several customers complained they were hurried through their service and there were complaints of having to await over an hour for their service even though that they had an appointment. Poor customer service is usually bad for the hair business since you not simply loose the particular one client; you additionally lose any kind of future referrals from the client and it can produce a bad standing for the salon alone (“Glassdoor. com, “).
Section III – Opportunities and Threats
Two current opportunities for Regis Corporation’s are their hair refurbishment businesses as well as the availability of real estate for new development. Two of Regis Corporation’s current threats are the downturn with the general economic environment and their current negative same-store sales.
Option #1- Locks Restoration Organization
In December 2004, Regis Corporation acquired the Hair Team for Men and Women (Regis Corporation, 2009). Currently this kind of industry is usually comprised with numerous locations domestically and internationally. By consolidating and expanding, this kind of industry would generate a great deal of revenue. Progress plans pertaining to hair refurbishment include building of a modest number of new locations in untapped market segments domestically and internationally (Regis Corporation, 2009).
Opportunity #2- Availability of Property for New Building
The availability of real estate achievable construction is usually an opportunity pertaining to Regis to continue to grow not only the modern construction of salons yet also the development of new hair restoration centers. By adding new units in convenient spots with great visibility and customer targeted traffic. The availability of real estate enables Regis to attain long-term expansion objectives (Regis Corporation, 2009).
Threat #1- Downturn of the General Economy
Downturn in the economic environment ends in customers spending less and waiting longer between coming back again visits for the salon. Standard economic factors include interest levels, recession, pumpiing, deflation, duty rates and policy, strength costs, and unemployment developments (Regis Corporation, 2009). Appointments to hair restoration centers would be greatly impacted by increases in unemployment rates and decreases in cash flow levels (Regis Corporation, 2009).
Threat #2- Negative Same-Store Sales
Same-store sales can be taking the volume of earnings generated by stores (open one year or perhaps more) on the certain period and then contrasting it for an identical period in the past. Many factors have an effect on same-store revenue such as products, competition, or maybe weather conditions. Atrodo same-store sales have decreased for the eleventh consecutive quarter to 2 . 3% (Zacks Expenditure Research, 2011). Continued diminishes in same-store sales efficiency may cause all of us to be in arrears of particular covenants in their financing preparations (Zacks Purchase Research, 2011).
Section IV – Summary
Regis can be described as well-known brand and had been in business for more than 80 years. Manding is one of the greatest companies inside the hair care market holding regarding 2% in the worldwide industry. Their hair salons and spas are easily located in malls, shopping centers, and in many cases within Wal-Mart Supercenters. They have salons located all across the usa and have extended their business to Canada, Puerto Lujoso, and Europe.
Regis should improve on their employee satisfaction in regards to managing and need to focus on bettering customer service relations.
Regis’s newly acquired locks restoration series provides a superb opportunity to consolidate and grow this sector in turn making a great deal of income. The availability of real estate for brand spanking new construction is also a great opportunity for Regis to expand in the construction of new salons and new frizzy hair restoration centers, which will enable Regis to obtain long-term development objectives.
A threat to Regis may be the downturn with the economic environment, which results in consumers spending less and waiting for a longer time between salon visits. In the event that Regis same-store sales do not begin to increase it will have a big impact on their loans arrangements.