Business Plan For Beauty Pacific Company: Develop A Comprehe ✓ Solved
Business Plan for Beauty Pacific Company: Develop a comprehe
Develop a comprehensive business plan for Beauty Pacific Company that documents the firm's start in 2018 in New York, current operations (160 employees, three branches), and its evolution from a sole proprietorship to a partnership.
Describe the company's history, including the initial product line, expansion into additional beauty products, and the addition of professional services such as skin consultations.
State the company's objectives: delivering value for customers, partnering with customers to improve efficiency, expanding market share and online presence, developing leadership through training, and enhancing workplace safety and legal compliance.
Explain changes to structure/ownership, including the shift to a partnership and the addition of departments like human resources.
Identify the current development stage as growth and establishment, with stable income, positive cash flow, and some challenges such as competition, revenue management, customer inflow, and workforce expansion.
Summarize achievements to date: stable customer base, active online presence, brand awareness, and revenue growth since 2018.
Highlight distinctive competence: positive organizational culture, norms, and values; emphasis on innovation; motivated employees acting as ambassadors.
Describe basic nature and activities: receiving, storing, and distributing beauty and cosmetics products (90% to retailers/wholesalers).
Primary product/service: beauty products and services including local and imported items; online ordering and door-to-door delivery; beauty consultations (skin/hair care).
Customer base: retailers and wholesalers in the state, cosmetic shops, beauty parlors, and individual customers via online orders; professional services online or in-person.
Organizational form: limited partnership with liability based on investment; certificate of partnership on file.
Industry outlook: beauty industry accounts for about 7% of total retail; stable and growing; growth expected; resilient to downturns.
Future plans: acquisition as long-term strategy to leverage assets and human capital; reduce entry barriers and boost productivity.
References: include sources cited (e.g., Chen & Ngo, Sabetova, Zorn et al.).
Paper For Above Instructions
Overview and Context
The Beauty Pacific Company case presents a mid-sized, vertically integrated beauty products distributor operating since 2018 in New York, with three branches and a current workforce of about 160 employees. The firm moved from a sole proprietorship to a limited partnership as it expanded its product lines, geographic reach, and professional services such as skin consultations. This evolution illustrates a classic growth trajectory in which initial focus on retail distribution broadens into services, partnerships, and scaled operations. A robust plan for Beauty Pacific should articulate how the firm leverages its culture, organizational capabilities, and market position to sustain growth while mitigating risks associated with competition, revenue management, and workforce expansion (Porter, 1980; Barney, 1991).)
Company History, Ownership, and Development Stage
Starting as a single-store cloth retail operation with nine employees, Beauty Pacific transitioned to a partnership within approximately 18 months, driven by expansion needs. The ownership shift coincided with the creation of new departments—most notably human resources—and the diversification into a broader line of beauty products and professional services. Today, the company operates from three branches—two in New York and one in Virginia—and maintains a stable income stream and upward cash-flow trajectory, albeit with ongoing challenges such as market competition and the management of a growing workforce. This development stage aligns with a growth-and-establishment phase, characterized by expanding assets, enhancing process efficiency, and integrating a workforce with greater specialization (Grant, 2019; Porter, 1980).
Objectives and Core Capabilities
Beauty Pacific articulates clear objectives: (1) deliver value for customers by offering high-quality products and services; (2) partner with customers to improve efficiency and productivity; (3) increase market share and strengthen online presence; (4) invest in training and development to elevate leadership; and (5) improve workplace safety and ensure legal compliance. Achieving these aims requires leveraging distinctive competencies—most notably a positive organizational culture that fosters innovation and employee engagement. A culture that supports experimentation and rapid problem-solving can translate into improved process efficiency and customer satisfaction, a connection supported in research on corporate culture as a competitive differentiator (Sabetova, 2016; Porter, 1998).
Structure, Ownership, and Governance
The firm shifted from a sole proprietorship to a limited partnership as growth necessitated broader capital and risk-sharing arrangements. This transition also supports the formalization of internal controls and the scaling of departments such as human resources. In a partnership, liability is tied to the partners’ investment, which aligns incentives for disciplined capital deployment and strategic collaboration (Chen & Ngo, 2018). This governance structure can underpin the acquisition strategy discussed later, by facilitating capital access and governance flexibility (Zorn et al., 2019).
Industry Context and Market Outlook
The beauty industry contributes roughly 7% of total retail activity and has demonstrated resilience and growth despite macroeconomic fluctuations. Market outlooks indicate sustained demand for cosmetics and personal care products, driven by consumer trends toward online shopping, premium SKUs, and service-based offerings such as skin consultations. Digital transformation and e-commerce are increasingly central to market strategy, with firms investing in omnichannel capabilities to reach retailers, wholesalers, and direct consumers (Deloitte, 2020; Kotler & Keller, 2016). This external context supports Beauty Pacific’s emphasis on expanding online presence and refining its distribution network.
Distinctive Competence and Value Proposition
Beauty Pacific’s distinctive competence rests on a strong internal culture that motivates staff and aligns values with strategic goals. A positive culture—characterized by shared norms, collaboration, and innovation—facilitates faster decision-making and more responsive service, which is critical in a competitive distribution environment. Research suggests that such organizational culture can improve labor-market competitiveness and execution effectiveness (Sabetova, 2016). The firm’s ability to train and empower staff, combined with an effective brand voice and customer-centric processes, provides a source of sustained competitive advantage (Barney, 1991; Grant, 2019).
Operations, Products, and Customer Segments
The core activities involve receiving, storing, and distributing beauty and cosmetics products, with approximately 90% of sales directed toward retailers and wholesalers. The primary product/service mix includes both local and imported beauty products and related beauty services (e.g., skin and hair consultations). Customers comprise retailers, wholesalers, cosmetic shops, beauty parlors, and individual online customers. The combination of inventory management, efficient logistics, and value-added services creates a differentiated distribution platform that supports repeat business and scale (Porter, 1985; Kotler & Keller, 2016).
Strategic Focus: Growth, Online Expansion, and Acquisition
Given the current growth trajectory, Beauty Pacific should continue expanding market share while strengthening its online channel. An acquisition strategy is identified as a long-term objective intended to leverage parent and acquired assets, reduce entry barriers, and increase productivity through asset and human-capital synergies (Zorn et al., 2019). Emphasizing strategic fit, cultural alignment, and integration capabilities will be critical to realize the anticipated benefits of any acquisition and avoid value destruction that has plagued some nested acquisitions (Zorn et al., 2019).
Implementation Plan and Risk Management
Implementation should proceed in three phases: (1) consolidate and optimize internal processes, including human resources, procurement, and logistics; (2) accelerate online sales and digital marketing to enhance reach and conversion; (3) evaluate targets for potential acquisitions, focusing on strategic fit and integration capabilities. Key risks include intensifying competition, volatility in revenue, customer demand shifts, and the challenge of absorbing a larger workforce. Mitigation strategies include robust financial modeling, scenario planning, disciplined budgeting, and a rigorous due-diligence process for any acquisitions. Strategic frameworks from Porter (1980) and Grant (2019) support structured analysis of competitive forces and scenario-based planning to guide these steps (Porter, 1980; Grant, 2019).
Conclusion
Beauty Pacific Company stands at a growth and establishment crossroads with a clear set of objectives, a strong organizational culture, and a diversified product and service portfolio. By capitalizing on its distinctive competencies, expanding its online presence, and pursuing selective acquisitions when strategically appropriate, the firm can sustain growth while maintaining strong operational discipline and customer value. The recommended approach aligns with established strategic management theories and contemporary industry analyses, providing a robust path forward for profitability and resilience in a dynamic beauty market (Porter, 1980; Kotler & Keller, 2016; Deloitte, 2020).
References
- Porter, M. E. (1980). Competitive Strategy: Techniques for Analysing Industries and Competitors. Free Press.
- Porter, M. E. (1998). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.
- Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.
- Grant, R. M. (2019). Contemporary Strategy Analysis (10th ed.). Wiley.
- Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.
- Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2017). Strategic Management: Concepts and Cases: Competitiveness and Globalization (12th ed.). Cengage.
- Chen, H., & Ngo, T. (2018). Master Limited Partnerships: Is it a Smart Investment Vehicle? Journal of Commodity Markets, 11, 22-36.
- Zorn, M. L., Sexton, J. C., Bhussar, M. S., & Lamont, B. T. (2019). Unfinished business: Nested acquisitions, managerial capacity, and firm performance. Journal of Management, 45(4).
- Sabetova, T. V. (2016). Corporate culture is a tool of a company's competability improvement within the labor market. Russian Journal of Agricultural and Socio-Economic Sciences, 55(7).
- Deloitte. (2020). Global Powers of Beauty: Transforming the industry in a digital world. Deloitte Insights.