Herbaline Case Study

ASSIGNMENT

Summary – HerbaLine

The case find out about discusses the human resource approach of a fast-growing enterprise in the especially aggressive beauty spa enterprise in Malaysia. It examines how the founders' personal values and philosophies are expressed in the human resource insurance policies and practices and the effect of these on the company's consumer carrier shipping and carrier culture. HerbaLine's focus on extremely good consumer provider enabled the founders, Mr. Low Chee-Kwong and Ms. Liu Kim-Hwa, to function the splendour spa operator as an attainable alternative to expensive, high-end worldwide beauty chains and low-cost, no frills individually-operated splendour salons. The success of their provider method is reflected in the increase of the splendour spa operator from one outlet in 2000 to fifty five retailers in 2014. With an imaginative and prescient to make bigger HerbaLine beauty spa to each major town in Malaysia, the founders embarked on a new a profit sharing scheme for excessive performing personnel to reward performance and to maintain and develop the high degrees of employee commitment and terrific provider transport that underpinned the company's growth.

Problems

There is growing gap in service delivery from Herbaline owned outlets and the franchised outlets.   The problems in aligning franchise operators to match the Herbaline’s philosophy, principle, policy, standard, rules and regulations.  Need to meet the ability to continue profit-sharing scheme. Furthermore, it relates to the competitive pricing strategy with low-price.

Solutions

1. Low Cost Advantage
2. Profit Sharing Scheme
3. Must take these decision into account:

1. Profit maximization
2. HR best practise
3. Low operating cost
4. Less competitiveness

1. Joint Venture
2. Derive focus from Profit sharing
3. Increase international diversification
4. Hire competent employees to manage
5. Acquired by it self

The management of Herbaline should implement the proposed alternative together by focusing on its existing strategy. The company should access the market needs and competition and then decide when to open a new franchise.

Political Factors

        In regulatory practise, Beauty Spa has to manipulate diverse guidelines in a number of markets it is present in. Over the closing few years Leadership & Managing People has witnessed a growing regulatory scrutiny. While in governance system, the machine in the industry is facing challenges and Beauty Spa has to keep a close eye on the alternate in insurance policies distinctive in the case learn about. Local government plays an imperative key role in coverage placing and enterprise surroundings policies in the sector. Beauty Spa carefully display and lobby these changes. Based on data it appears that Beauty Spa has come underneath increasing world pressures to adhere to global regulations. In terms of government resources and time allocation, it is challenging to infer that there will be alternate in useful resource allocations. For tax policies, the years Beauty Spa has benefitted from lower taxation policies at some stage in the western hemisphere. It has resulted in high income and growing spending in the research and development. In the second half Beng Chong Lim, Beng Geok Wee believe that it can change.