PESTEL ANALYSIS

Submitted By:
Arcega, Kezziah Josh
Baustista, Marianne
Cama, Louisa
Corpuz, Olive Rose
Leoncio, Jamaica
Lozada, Angeline

POLITICAL ANALYSIS
Political analysis is about government change and political stability of a country. The
government usually introduces new policies and guidelines in the industry which sometimes
affects the business operations negatively. The policies may be costly and time consuming due to
the procedures and processes that must be followed during implementation. The government has
been supportive and cooperating on various policies; in that, the government authorities and
departments in charge of the industry has been engaging all the stakeholders for talks,
discussions and consultations in case there are new guidelines and policies to be introduced.
There has been no major political challenge due to the government support but in some
instances, when the country's leadership changes after a general election, new guidelines,
ideologies and policies are introduced and the firm is forced to adhere to them; hence it may be
forced to close down if it cannot meet those requirements. These are usually directives and
failure to comply can cause the government authorities to withdraw the firm's trading license.
ECONOMIC ANALYSIS
Currently we are in an economic recession which can drastically impact the amount of economic
activity a business may have. Depending upon whether the good offered by the business is a
necessity good, a normal good or a luxury good the amount of business could expand, exit or
stay in its current situation . It is expected that a hair salon fits nicely in the normal good
category. This means that during recessions, business activities may experience a light decline
but one wouldnt expect a dramatic change in this kind of business.
Most women rank getting their hair done and buying makeup and other beauty products fairly
high on their priority list. As such, these goods and services are deemed quite necessary. Even
during tight financial times, it is expected that most people will still get their hair done and will
still need to buy makeup and other beauty products. Beauty costs are generally low when
compared to an individuals income but depending upon the services and products they are
willing to avail. Therefore it is expected that some people will cut back a little on some of the

services they buy, but in general the customers will still purchase goods and services that is fit to
their budget.
Finally, there is an abundance of substitutes for the supplies sold by our business but there is a
limitation in the services we offered. Customers could shop around at other Beauty and Salon
businesses trying to find a cheaper price. They may also choose to do their own hair or styling at
home. However, most people dont have the knowledge and experience to do as good of a job
and arent willing to sacrifice the quality for the small amount of money they would save.
Therefore it is expected that despite the recession, most customers will continue to avail services
that our mobile salon will offer.
Due to the recession, it is possible that customers of other salon businesses may be looking
around for a better value. This current economic downturn provides a good opportunity to attract
and capture potential client. With the possible slow-down in business, it is also important to look
at non-value added costs that could be avoided. When a company cannot easily increase
revenues, it should look for ways to cut costs. This will help a company make it through the
slow times. Now is a great time to offer products that give the consumer more value. Helping
consumers get more contented for their money will help expand the current customer base.
SOCIO-CULTURAL ANALYSIS
Socio- cultural factors concern the change in taste and preferences, fashion, cultural beliefs,
norms and likes and dislikes. With hair salon industry, most people want what is in fashion, thats
why salon businesses have been spreading in every major places here in the Philippines. Each
one wants to have a perfect hair because it is one of the factors that raise our self-esteem. Aside
from this, Hair salons provide a central place for women to tend to their appearance, enjoy the
companionship of other women and exchange information. Compared with other social
institutions, such as churches, the informal atmosphere of a salon enables women to forge bonds
not only with their stylists, but also with the salons clientele. The various social roles of a hair
salon can encompass a support network, a haven from everyday life and an arena for political
change. Different people, races, tribes, gender, and religions value certain hairstyles and
products; this therefore, calls for the salon business and these changing demands have led to new
opportunities for a hair salon business.

TECHNOLOGICAL
Technology is an essential part in the salon business. It affects the business crucially considering
that it change from time to time. Also, it is costly and the existing technologies became obsolete.
New machines and equipment are required to follow to the latest fashion and trends in the
hairstyling industry so that they can compete advantageously to the other competitors in the
market. Also, employees need to be trained on the use of new technologies. With the help of
advance technology, the business can provide quality service and customers will get the best
value from their money.
ENVIRONMENTAL
Environmental factors include weather, climate, and climate change, which may especially affect
industries such as tourism, farming, and insurance. Furthermore, growing awareness to climate
change is affecting how companies operate and the products they offer--it is both creating new
markets and diminishing or destroying existing ones.
The salon can come up with ways to dispose of their products in a more eco-friendly way by
using organic and natural cosmetics. The biggest difference from between organic and chemical
hair salons must be in their choice of hair dyes. Organic hair salons often use herbal dyes or
henna hair dyes instead of chemical dyes. But even when youre just going out for a regular hair
cut the shampoos, conditioners and hair styling products can contain harsh chemicals that in the
long run will dry out your hair and scalp and possibly even give you allergic reactions. Not to
mention the fact that you would spend an hour in an environment where workers have to take out
early retirement. Having a green environment can prevent hairdressers to retire the earliest due to
work-related health issues.
Sanitation will be also a consideration. The salon sets a policy regarding the proper disposal of
waste. Cleaning is important particularly in work areas because deposits of dust, soil and
microbes on surfaces can transmit infection. Contaminated areas such as operating rooms or

isolation rooms must be cleaned after each session and spot cleaned after each case or thoroughly
cleaned as necessary.

LEGAL
Operating a beauty salon isn't as relaxing as visiting one. Many rules and regulations apply to the
industry to ensure safety, responsible business practices and compliance with the law.
The company will be responsible for any product it sells uses or recommends. As well as
services that it is to offer. Bleaching and other color products could be very damaging to
someones hair if not used correctly, that is why appropriate preparations and steps should be
properly addressed every time. The company could be sued or even shut down because of
improper uses. Standing by our products and knowing that it is healthy is an ethical issue but
could become a legal issue if a situation resulted in damage to a client. Keeping the image of the
company is a critical issue. Avoiding any legal problems by educating the employees on proper
uses of every product in order that they will not misinform customers in such a way that it results
in improper use of a product is also an important issue to be discussed and taken into
considerations. Following the law is important but even more important is to be ethical.
Sanitation must be a top priority for a beauty salon like us to meet industry and client cleanliness
standards. Every product, appliance or tool that comes in contact with a client must be
disinfected and sanitized. For example, combs and brushes must be kept in a mixture of equal
parts of a disinfectant liquid between uses. Employees must follow basic practices such as
washing towels, cleaning sinks and floors and washing hands. Most states issue informational
documents to salon businesses to guide them in keeping their facilities sanitary and healthy.

POLITICAL ENVIRONMENT

Changing government rules & regulations for businesses.

Introduce new loans for small scale businesses.
Introduce new instruction programs for beauty cultural field through youth center.
Government introduces higher taxes for businesses & some taxes for cutouts, and

banners. It is very badly affected to businesses.

Road policies to abide

ECONOMIC ENVIRONMENT

Decreasing interest rates for business loans.

Increasing cost of cosmetics.
Decreasing personal income of people.
Increasing price of beauty cultural technical instruments.
Increasing cost of fuel.

SOCIAL ENVIRONMENT

There are so many Christian people around the salon.

Increasing more sales in Christmas & New Year seasons.
Higher demand for trend fashions.
Some times in wedding seasons most parents need traditional dressing for their young

daughters.
Hair salons provide a central place for women to tend to their appearance, enjoy the
companionship of other women and exchange information.

TECHNOLOGICAL ENVIRONMENT

Use head massages, hair iron for hair dressing.

Use new skin whitening creams & technical machines.
Use internet to promote salon & give opportunities for customers to get appointments

through online.
Use of automobile to serve clients.
Up to date enhancements of cosmetics (such as soap, chemical, lotion etc.)
Billing system
Supplier Connections

ENVIRONMENTAL

Sanitation
Pollution caused by automobile
Proper disposal of chemical substances
Some of the cosmetics will be organic and natural
Produce less waste
Global Warming

LEGAL

Corporate responsibility
Licensed Employees
Business License
New Tariffs
Basic health and safety regulations
Hazardous chemical management
Posting a warning sign on the equipment is pertinent for the company to avoid a lawsuit.