Situation Analysis of Hair Salon

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1. Situation Analysis: a. External environment:  Macro- environment forces: • Economic forces: Economy is experiencing the recovery after the financial crisis in 2008; however, Viet Nam still has to face to numerous problems such as government debt; fluctuations of prices of necessary resources like oil, gas and electricity; and especially high inflation and the high interest rate. These current economic issues increase pressure on living standard of consumer and organizational operation. The changeable economic situation makes people tend to cut down consumption of products and services which, according to them, they are not really essential, even, being luxury in this current economic situation. In addition, because of increasing the inflation rate, most of expense costs such as electricity, renting costs and inputs like caring hair products, follow an increasing tendency. In general, all of these factors impact negatively the beauty salon, generally, and LanAnh salon specially. • Sociocultural forces: In the present age, deriving from wide promulgation of foreign cultures and lifestyles, most of Vietnamese youngsters are also influenced and adapt quickly to these. Being considered as a topic which is received the most concern of the young, hairdressing style is always driven by the foreign forces. For that reason, most of hairdressers, desiring to stand firm in the market, catch up with updated hairstyles, being critical. In addition, according to Vietnamese’s conception, the cutting hair will be avoided in the first, middle days of the month and the first days of new year, resulting in declining number of customers visiting hairdressers in those days. Consequently, this causes a challenge for the haircutters to promote sales in those days. • Technological forces: Being acknowledged as a critical factor in the present

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