Risks - P2 Flashcards
(5 cards)
Business Risk:
Identify and explain the business risks that might arise if Trimayr decides to launch a mobile hairdressing service to compete with tech-based salon disruptors
Key Business Risks:
- Brand Dilution: Mobile service could clash with Sheen’s premium image.
- Franchise Conflict: May be viewed as internal competition in urban areas.
- Operational Complexity: Scheduling, travel, and service control may reduce quality.
- Financial Risk: Upfront costs with uncertain demand.
Recommendations:
- Launch under Pop or new sub-brand.
- Offer pilot to select franchisees or run in non-franchise areas.
- Use BIS to monitor feedback, bookings, and quality metrics.
- Standardise mobile procedures for consistency.
Conclusion:
Pilot under the Pop brand with tight operational and brand controls to minimise strategic and reputational risk.
Operational Risk:
Evaluate the risk that Trimayr’s most experienced stylists may leave after training apprentices, and recommend how this risk could be mitigated.
Key Risks:
- Loss of Expertise: Departure of mentors affects service quality.
- Customer Loss: Clients may follow stylists elsewhere.
- Wasted Investment: Training returns are lost when mentors leave.
- Staff Morale: Overload risk for remaining mentors.
Recommendations:
- Introduce mentor recognition bonuses.
- Define a stylist development path.
- Offer retention rewards linked to training outcomes.
- Use BIS to track exits and apprentice success rates.
Conclusion:
Retention measures are needed to safeguard service quality and maximise training ROI.
Product & Reputation Risk:
Identify and evaluate the risks to Trimayr’s brand reputation from expanding the Luxora Pop treatment into lower-priced Pop salons.
Key Risks:
- Brand Dilution: Luxury image may be undermined.
- Customer Confusion: Expectations may not match Pop delivery.
- Service Inconsistency: Pop may lack equipment or training.
- Negative Feedback: Reputational risk across brands.
Recommendations:
- Tier service (e.g. “Luxora Lite”) for Pop.
- Limit rollout to high-performing salons.
- Train Pop staff through a dedicated certification module.
- Monitor feedback and BIS metrics post-launch.
Conclusion:
A tiered rollout with strict brand control is essential to protect Luxora’s value.
Contractual Risk:
Discuss the contractual risks Trimayr faces when franchisees fail to uphold brand standards, and recommend measures to reduce the likelihood and impact of this issue.
Key Risks:
- Reputational Harm: Poor performance reflects on all Trimayr salons.
- Weak Contracts: Limits ability to enforce or terminate.
- Inconsistent Quality: Damages customer trust.
- Legal Exposure: Disputes from unclear breach terms.
Recommendations:
- Update contracts with measurable standards.
- Monitor via BIS, audits, and feedback.
- Define a structured warning/escalation path.
- Provide franchise support tools and refresher training.
Conclusion:
Enforceable contracts and structured monitoring will improve compliance and protect the brand.
Risk of External Disruption:
Evaluate the risks Trimayr faces if a competitor introduces an AI-based salon app offering personalised style recommendations, and explain how those risks could be managed.
Key Risks:
- Customer Loss: Younger clients may prefer AI convenience.
- Brand Relevance: May appear outdated if we don’t match innovation.
- Revenue Loss: Reduces product sales and booking rates.
- Franchise Concerns: May lose confidence in Trimayr’s innovation pace.
Recommendations:
- Launch a Trimayr-branded app with stylist-led AI features.
- Emphasise technology that enhances—not replaces—human expertise.
- Pilot AI use in consultation and product recommendations.
- Align franchisees through shared digital revenue participation.
Conclusion:
Proactive innovation can preserve our human-centric strengths while remaining competitive.
