Answer questions 4 & 7 Cutey Barber SalonCutey Barber Salon is a trendy barber salon that is located in a densely populated city called Maple.Demand for the services offered by the salon is fairly high. It offers services such as haircuts, hairstyling, scalp massaging and conditioning treatment, straight razor and wet shave, beard sculpting,facials and hair colouring. In addition to these services provided, the salon sells premium hair productsto customers. The salon has the ability to produce a maximum of 20,000 haircuts and hairstyling peryear. Demand for haircuts and hairstyling over the last five years can be seen in the following table:-Year Demand for haircutsand hairstyling201711,500201812,200201913,400202014,000202114,500Although the business does not have a written vision and mission statement, it is clear in the minds ofmanagement what they want to achieve and what they would like to be in the future.Currently, customers can walk in at anytime to be served. At times, customers have to wait in line for along time. This is creating some challenges for the operations manager. He needs to overcome thischallenge in order to utilize his resources more efficiently.Competition in the hair salon business is intensifying. New firms are rising up and existing firms areexpanding their operations. Increasing competition is gradually eating away profit margins since costsare increasing and customers are demanding lower prices for services. Management has to find someefficient way to add value to their products and to overcome the competition.QUESTIONS1. Write a vision and a mission statement for Cutey Barber Salon.2. Why is it important for the Operations Manager to forecast demand at Cutey BarberSalon?3. Use trend projection to forecast demand for haircuts and hairstyling for 2022.4. Calculate the utilisation rate at Cutey Barber Salon in 2021.5. Describe two techniques that can be used to increase the utilisation rate.6. Should Cutey Barber Salon sell hair products?7. Other than employing more staff, describe two techniques that the Operations Managercan use to reduce the waiting time for customers?8. Other than quality, explain how the Operations Manager can use two competitivepriorities to compete.9. How can status value be added at Cutey Barber Salon.

Salin business is evergreen business need skilled labour to perform the work . Many factors…

4. Calculate the utilisation rate at Cutey Barber Salon in 2021. 5. Describe two techniques that can be used to increase the utilisation rate. 6. Should Cutey Barber Salon sell hair products? 7. Other than employing more staff, describe two techniques that the Operations Manager can use to reduce the waiting time for customers?

4. Calculate the utilisation rate at Cutey Barber Salon in 2021. 5. Describe two techniques that can be used to increase the utilisation rate. 6. Should Cutey Barber Salon sell hair products? 7. Other than employing more staff, describe two techniques that the Operations Manager can use to reduce the waiting time for customers?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter17: Making Decisions With Uncertainty

Section: Chapter Questions

Problem 10MC: You are considering entry into a market in which there is currently only one producer (incumbent)....

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