Operations
Bella Amore will ensure that it delivers and sustains unique experience to its target customers. The firm’s management team will ensure that efficient operational activities are observed in all operations. The management team believes that this approach will enhance the firm’s competitive edge. The management team opines that the incorporation of coordinated operational practices will promote the company’s efficiency with reference to time and cost. However, in its pursuit of competitive edge, Bella Amore will focus on diverse operational activities as illustrated herein.
Production process
Bella Amore’s mission entails offering high quality organic cosmetic products to customers. The firm’s production process will ensure that the divergent tastes and preferences amongst the target customers are satisfied with reference to the cosmetic products. For example, the firm will utilize diverse natural ingredients especially extracts from plants in producing different creams, moisturizers, and skin pigmentation products. Thus, the firm will undertake extensive research on different fruits, herbs, and plants that can be used in the production of different cosmetics. The Aloe Vera is one of the core plants that will be used in the production process.
During the production process, Bella Amore will focus on sustaining the value of the extracted materials. Subsequently, the firm’s production department will ensure that the extracts from different organic materials such as plants are not subjected to intense heat. On the contrary, temperature will be regulated professionally. Moreover, the production department will ensure that the right amount of water is used in a bid to avoid the risk of diluting the extracted juices. This approach will play a fundamental role in preserving the intended value of the final product, hence delivering value to the target customer. By ensuring a high level of expertise during the production process, the firm will be in a position to address the health conscious needs amongst the target customers.
Purchasing and delivery
In an effort to promote the competitiveness of its organic cosmetic products, Bella Amore will source the necessary raw materials from different suppliers around the world. This approach will enable the firm to achieve its product diversification goal. Moreover, sourcing from different suppliers will give Bella Amore an edge with reference to producing organic products that address the target customers’ cultural factors in their purchase decision-making process.
The firm will ensure that suppliers are selected based on their ability to supply high-quality raw materials. Bella Amore will focus on attaining a high level of operational efficiency in its production process. This goal will be attained by establishing and sustaining a strong positive relationship with the suppliers. In addition to the above aspects, Bella Amore will adopt a competitive approach in selecting suppliers. One of the variables that the firm will consider entails the lead-time. The firm will assess the suppliers’ capacity to deliver raw materials within the set time limit.
Service promise
In its operation, Bella Amore will ensure that its employees are passionate about changing the target customers’ lives. Thus, the management team will make sure that all its employees are customer-focused. However, the extent to which the firm attains this goal will be subject to its commitment in developing a high level of customer orientation. Consequently, Bella Amore will ensure that its employees adhere to the organization’s customer service promise. The customer service promise will comprise a number of elements.
First, the firm will undertake extensive customer service training on all employees especially the front-line workers who interact directly with customers. The training will be aimed at ensuring a high level of courtesy and honesty during the service delivery process. Secondly, the firm will ensure that it meets and exceeds the customers’ expectations. This goal will be achieved by appreciating the prevailing diversity amongst its target customers. For example, the firm’s employees will ensure that customers are served equitably irrespective of their demographic variations.
Thirdly, the firm will ensure a high level of accessibility, which will be achieved by adopting an ‘around-the-clock’ approach in serving customers. Bella Amore will be committed to giving excellent services to customers throughout the year. In a bid to achieve this goal, the firm will maintain consistent contact with its customers through different technologies.
The firm will develop a mobile phone application that customers can use in communicating with the customer service department. The mobile application will not be solely used for interaction purposes. On the contrary, it will give customers an opportunity to pay for the firm’s products. However, Bella Amore will ensure that a high level of security is maintained in the process of making financial transactions through the mobile application. This aspect will contribute significantly towards the improvement of the level of trust amongst customers, which will be attained by entrenching confidentiality of personal information.
In addition to the above aspects, Bella Amore will maintain contact with its customers through other communication platforms such as email. By adopting different channels of communication, the firm will offer convenience to customers in interacting with the firm on different issues such as enquiries, complaints, and complements on its products. This aspect will play a fundamental role in ensuring that customers feel appreciated.
Location
Bella Amore will establish stores in all the major cities in the US. The firm will ensure that the stores are located strategically in the different cities. Consequently, customers will access the firm’s organic cosmetic products conveniently. In an effort to establish and sustain a strong customer loyalty, Bella Amore will maintain an effective store ambience. Hosseini and Jayashree emphasize that the store’s environment is a significant component in the consumers’ purchase decision-making process (65).
The firm will ensure that the store’s layout is designed effectively. Thus, services of different interior designers will be sought. The designers will ensure that the stores’ internal outlook is attractive to different customers. The firm’s management team will ensure that the stores are spacious in order to carry different cosmetic products.
Creating adequate space will provide customers with an opportunity to shop conveniently by creating ease in the search process for different product categories from the shelves. Different colors will be used in painting the stores’ interiors. Bouzaabia asserts that the integration of warm colors and music tempo stimulates the customers towards making a purchase decision (159). Moreover, the firm will ensure that the cosmetic products are presented effectively in order to arouse purchase intention amongst its customers.
The store will be fitted with different facilities such as display shelves. The display shelves will be purchased from well-established manufacturers of cosmetic display shelves. However, Bella Amore will ensure that the cosmetic display shelves are customized to meet the firm’s cosmetic display needs. The cosmetic display shelves will be of different colors in order to appeal to the customers’ emotions.
Bella Amore recognizes the existence of intense competition in the US organic cosmetic products’ market segment as a major threat to its effectiveness in developing a high competitive advantage. Despite this aspect, the firm is committed to developing a high level of customer loyalty. In a bid to achieve this goal, Bella Amore will undertake continuous improvement on its stores (Kaltcheva and Weitz 110). First, the firm will make changes to the stores’ interior designs. Bella Amore will change the display shelves and the stores interior wall painting periodically in order to reflect on the changing customer needs. Furthermore, constant change on the interior design will enable Bella Amore to communicate the premium quality of its organic cosmetic products.
General operations plan
Bella Amore’s stores will operate on a 24-hour basis in order to provide its target customers with flexibility in their shopping process. The decision to adopt a 24-hour operation system is informed by the realization of the fact that most of its target customers are generally busy, hence a limited amount of time to visit retail stores. However, the firm expects the trading hours between 7.00 am and 6.00 pm to be the most profitable.
In a bid to improve its efficiency in reaching the high-end customers, Bella Amore will adopt e-commerce technologies. Thus, the firm will provide customers with an opportunity to purchase its organic cosmetic products online. During the initial stages, Bella Amore will provide free shipping to customers located in the US. The firm intends to offer the free shipping service to other customers located in different regions around the world in the future.
The firm recognizes the existence of cybercrime as a major threat that might limit the application of the online shopping platform. Nevertheless, Bella Amore will put in place a number of administrative measures. Through its IT department, Bella Amore will implement effective security measures within its information systems infrastructure. The cyber security applications will be updated continuously in order to enhance the firm’s capacity to deal with the emerging cyber threats. The firm projects to improve the level of confidence on its online shopping platforms amongst customers by implementing administrative measures on cyber security. This move will augment the usage of the firm’s online shopping platforms.
Achieving financial sustainability is one of the primary aspects that the firm intends to pursue in the course of its operation. Bella Amore intends to entrench an effective internal governance system. One of the issues that the firm’s management team will focus on entails minimizing the likelihood of internal fraud. The firm will implement efficient accounting systems such as an internal financial management system, which will be implemented in the firm’s computer systems. Another internal control measure that Bella Amore will consider involves incorporating the concept of internal auditing. The management team expects that these control measures will entrench financial prudence and accountability.
Bella Amore will ensure that the production of organic cosmetic products is seamless. Thus, effective inventory management measures will be incorporated. First, the firm will ensure that the necessary raw materials such as fruits and herbs in addition to other materials are readily available within the firm’s warehouse. However, the firm will ensure that only the warehouse carries the necessary inventory in a bid to minimize the cost of carrying inventory. Imeokparia corroborate that a successfully “implemented inventory control program takes into account such things as purchasing goods that commensurate with the market demand, seasonal variations, changing usage patterns, and monitoring for pilferage” (24). In its inventory management, Bella Amore will ensure that the volume of inventory held is sufficient to sustain the company’s operations.
In spite of integrating the prevailing technologies, Bella Amore’s management team recognizes that the contribution of the technology and operational strategies will depend on the expertise of its human capital. Therefore, the firm will source highly qualified employees who will be charged with the responsibility of overseeing the company’s daily operations. Human capital will be sourced from the local and international labor markets in order to exploit the competitive edge associated with workforce diversity. For example, the firm will be in a position to understand the cosmetic needs of divergent customer groups. Some of the firm’s core staff will include toxicologists, environmental scientists, chemists, and biologists. These employees will ensure that the firm adheres to the requisite safety measures in its production process.
Regulatory, licenses, insurance and legal issues
Bella Amore will seek operational licenses from both the state and federal agencies in the US. One of the bodies from which the organization will seek operational license is the Food and Drug Administration [FDA]. Furthermore, the firm will comply with the laws outlined in the Food, Drug, and Cosmetic Act [FD&C]. According to the FD&C Act, all cosmetic products producers have a duty to substantiate the materials used in the production process (“Cosmetics Info” par. 2).
The firm’s commitment to adhering to the set regulatory measures will be guided by the need to ensure a high level of consumer safety. By incorporating toxicologists, environmental scientists, chemists, and biologists in its human resource base, Bella Amore will be in a position to avoid possible legal issues that might arise due to the usage of the company’s cosmetic products such as allergies and other skin related conditions.
The firm recognizes the existence of risk as a major obstacle that might affect its long-term competitiveness. For example, the firm’s employees might suffer injury in the course of executing their duties. Such risks might affect the firm’s financial performance in addition to the high cost of compensation arising from legal suits by employees. In a bid to avoid such legal issues, Bella Amore will ensure that all its employees are covered by the workers compensation policy. Besides, the firm will cover its plants and equipment from general risks such as fire and larceny.
Operating cycle
Bella Amore will focus on achieving precision with reference to determining its working capital requirements. The firm will adopt both short-term and long-term budgeting cycle. This goal will be achieved by integrating monthly and annual operating cycles. Through its monthly and annual operating cycles, Bella Amore will be in a position to review its periodic performance optimally. The firm’s decision to adopt this operating cycle is informed by the view that the customers’ cosmetic needs are seasonal. Thus, it will be possible to identify the months characterized by high and low product demands, hence gaining insight on how to plan the production process.
In an effort to sustain its competitive advantage, the firm will undertake continuous product development and improvement. The improvement will be based on the findings of the market research conducted by the firm. The firm will evaluate the performance of the new products, which have been introduced into the market, on a quarterly basis.
Works Cited
Bouzaabia, Rym. “The effect of ambient scents on consumer responses; consumer type and his accompaniment state as moderating variables.” International Journal of Marketing Studies 6.7 (2014): 155-167. Print.
Cosmetics Info: How cosmetics are regulated in the US 2014. Web.
Hosseini, Zohre, and Sreeenivasan Jayashree. “Influence of the store ambience on customers’ behavior; apparel stores in Malaysia.” International Journal of Business Management 9.10 (2014): 62-69. Print.
Imeokparia, Lawrence. “Inventory management system and performance of food and beverages companies in Nigeria.” Journal of Mathematics 6.1 (2013): 24-30. Print.
Kaltcheva, Velitchka, and Barton Weitz. “When should a retailer create an exciting store environment.” Journal of Marketing 70.5 (2006): 107-118. Print.