Develop SFAS (Strategic Factor Analysis Summary) and SFAS Matrix with the below data.

External Factor Analysis Summary

The Black Cat Salon and Spa (TBC) has been "serving love" to the Kailua community for a decade and expanded its reach to Kaimuki in 2012.. The salon has mastered a simplified service list to help as many guests as possible and maximize revenue. However, by not offering secondary personal care, local competitors can capitalize on full-services opportunities and gain market share and persede TBC guests with little opposition from TBC. It is recommended the TBC expand its services and ultimately meet all personal care needs of its guests. It is recommended that TBC continue to recruit and develop Protege talent to increase appointment inventory and keep lower priced appointments available to guests that are price sensitive.

TBC is an Aveda concept salon (Appendix A) and cannot carry any competitor product lines or services. This allows other salons to attract guests that are not directly loyal to Aveda. To address this market concern, it is recommended that Aveda increase Hawaii specific marketing and guest education. While Aveda is a national leader from which TBC benefits from name recognition, being closely intertwined with their business poses a risk to TBC if Aveda were to fail. It is recommended the TBC develop a contingency plan if Aveda falters.

Internal Factor Analysis Summary

TBC has built a reputable brand within the local community on the island of Oahu for nearly a decade. Throughout the years, they have had a large influx of personnel changeover, but this has not deterred its loyal clients to TBC culture, which is what the salon and community takes pride in.

One of the salons primary attributes to their success is their location. Currently, the salon is located in Kailua, HI where nearly forty thousand residents resign out of Hawaii's vast population of nearly one million. Kailua is additionally home to Marine Corps Base Hawaii where close to ten thousand service members and their families inhabit; Oahu alone is ranked as the fourth largest military workforce in the United States (Biz Journals, 2015). This high of a rotating personnel permits TBC continual opportunities to reach new and potential clients with resident spans lasting up to four years.

The salon is considered "pricey" on Yelp with three out of four dollar signs assigned by previous clients. (Yelp, 2019) The salon justifies this by having some of the local areas highest skilled employees. TBC has an extensive education program that is continuous and offered to all employees; there is a three month long program fitted for new employees; then there's quarterly education course that range from intermediate to more advanced level courses. This continuous education allows the salons employees to stay fresh in their skills and trends allowing them to offer the best and most up to date services.

With having a higher price point service menu, the salon has a low percentage of employees that offer their most affordable prices. The salon currently has four levels based off of experience; level one being the most junior offering haircuts starting at fifty dollars and level four being the most senior offering haircuts starting at eighty-seven dollars. Having a low percentage of employees that offer the most affordable, makes the salon that much more unapproachable for those cost conscious clients looking for the most affordable experience.

Jentry Petzold, the salons business owner, is continually trying to perfect the business model and organizational structure to maximize profits. During his time, he has made multiple changes to the way TBC operates financially. He has gone from running the salon as booth rent, to making the salon more corporate running it as an employee based business, to his current operation of providing a Team Based Compensation method; he has gone back and forth between these three business models for the past ten years with each one having a different twist from the previous attempt. The salon constantly changing how they charge clients but also pay employees can be a major deterer for both groups. The inconsistency has been reason for both clients and employees to end their Black Cat experience and find another salon elsewhere.