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Malaysia’s Herbaline Facial Spa: A Human Resource Strategy For Growing A Startup Case Solution & Answer

Malaysia’s Herbaline Facial Spa: A Human Resource Strategy For Growing A Startup Case Solution 

1.      Ambiance

              Herbaline outlets of spa have the advantage of operating unique spa in the Malaysia. It has differentiation with the services along premium price strategy. The aim of the Herbaline was to deliver stress–free environment along its services. Thus, the ambiance of the outlets was very relaxed that makes customers to feel comfortable. Moreover, the color combinations and the music were also the part of environment that can make customers relax.

2.      Positioning of Outlets

           The opening of the outlet in the mall also empowered the strategic placement of the Herbaline. The customers, thus, were at ease to arrive at Herbaline’s outlets and get rid of depression. The environment of the outlet was as relax as its all outlets. The interior designing of the outlets was also encouraging. The ambiance was outstanding and the services were also well established at the outlets that were able to grab customers’ attraction.

3.      Human Resource Practices

Herbaline is incorporated with the best human resource practices at its outlets. The staff of the Herbaline was considered as the key element of the organization.The customers of Herbaline in the mall were pleased to visit the place that has furnished with the environment of the resort. Outlets in the malls have raised the profit of Herbaline from 17% to 34% in 2013. Moreover, the employees increased to 220 by 2014. Furthermore, Herbaline continued with the efficiency of employees with the best recruitment, training and development practices.

Moreover, the initial salary of Herbaline was low for the staff however, since the staff was retained in the organization they were able to get immediate increase in their salaries and many other incentives.

4.      Innovations of Product

Herbaline has kept innovation in its products. Particularly, the 5 – Star products were critical for the Herbaline to get advancement in them. However, Herbaline did not only modify its products, but it also retrieved the traditional products of the Herbaline spa. It used to re–introduce the products with the amendment in the packaging of the product creatively in order to grab customers’ attention.

5.      Internal Franchise Scheme

Herbaline evolved the strategy of franchising to the profit sharing scheme. The scheme has further motivated employees to continue with their achievements and perform better at the workplace. The scheme offered the employees more opportunities. As the employees worked for 2 years with the organization, the employees would get 50% share of the profit of the outlet in which they were working.

Weaknesses

1.      Disclosure of the Organization’s potentials

Herbaline has endowed with the strategy of retaining its employees through the profit sharing schemeit has welcomed the participation of employees to the outlets. Moreover, the organization has built the brand reputation through the strength of its senior and loyal staff. Although the Herbaline has offered profit sharing scheme to its senior employees however, the key elements of the organization can be influenced by the employees’ disloyalty.

2.      Rise in Human Resource Issues

Herbaline has made possible efforts to sustain its employees through profit sharing scheme. The scheme has allowed the company to continue with the best alignment of its staff. Moreover, the employees are appreciated and recognizing through the franchise partnership. However, the culture of the organization that KIM and CK have maintained through their efforts can be at risk.The employees working in the outlets are not well educated and were willing to work in the outlet to maintain their lifestyle. Hence, the management’s role of the employees may not be suitable in order to operate a separate franchise.

Opportunities

            Herbaline has many opportunities on its way from which some are explained in detail…………………

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