I. Introduction
Ms. Morningstar,
My name is Kay Williams and I am a professional business consultant. From my understanding, your business is in need of a little tidying up. UMUC Haircuts already has some wonderful aspects. You already have a faithful customer base. Your customers have been using your services for a long time and they trust you. I think with a little bit of organization your business will thrive like never before!
II. Analysis
A. Buyer Power
Here you ask yourself how easy it is to drive your prices down. This is of course driven by the number of customers and the importance of each individual to your business.
The buyer power controls everything! We need to think about what the customer’s needs are. When does the customer like to schedule his/her appointment? What services does the customer utilize? What are some ways for the customer to provide feedback for what they want?

B. Supplier Power
Here we assess how easy it is for suppliers to drive up prices. This is driven by the number of suppliers of each key input, the uniqueness of their products and their strength and control over you.
There are tons of suppliers. We can choose our suppliers however we want. However, let us consider quality products. Quality doesn’t always mean the cheapest. We need to also be sensible with our selections and try not to break the bank!

C. Threat of Substitution
This is the ability of the customer to find a different way of doing what you do; an easier way perhaps.
Is there an easier way to cut your own hair? I’m sure there is. For me personally, I’m not going to try! I want to be pampered! Your customers come to you because you take care of them and make each individual feel special. My hairdresser is also my confidant and I enjoy the conversations we have while she is cutting my hair. I couldn’t get that customer experience if I tried to do it myself!

D. Threat of Entrants/Rivals(combined)
This is the ability for people to enter your market and compete for business.
Is there a threat of new entrants? Sure there is! However, you have something those new guys don’t have. You have long established relationships with your customers.

III. Generic Strategy
I think a focus strategy should be used in this situation. I feel it’s important for you to do what you do better than anybody else in the area. Be the best at what you do.
Companies that use Focus strategies concentrate on particular niche markets and, by understanding the dynamics of that market and the unique needs of customers within it, develop uniquely low-cost or well-specified products for the market. Because they serve customers in their market uniquely well, they tend to build strong loyalty amongst their customers.
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IV. Solution and Operation Effectiveness
I think we should incorporate some technology into your business. Computers can help you with scheduling, supplies inventory, customer information ect. With these new changes your business will run more smoothly. Some programs that I would like to use are : Excel ( for inventory and employee data and payroll), Access( for keeping track of customers and services) Outlook calendar ( for customer scheduling).
We may even try to incorporate a website for your business. Marketing and advertisement is key to getting your services out there.

V. Direction
Focus strategy- You already have a good clientele, we should focus on what you have to offer and being the very best in the area.
The processes we should improve – bringing in technology to help with scheduling, payroll, inventory sheets, ect.