Describe weakness in the business processes?

Explain the implication of each weakness and provide recommendation?

 

Julie tries to keep sales of Totally Yours products separate from esthetic products but has noticed lately that the inventory records always reflect more product on hand than what is actually on the shelf when she goes looking for items. During your meeting, Julie made the following comments: The new customer loyalty card TYI implemented a few months ago has been a huge success. Customers earn 1 point for every dollar spent. Once they have earned 1500 points customers can redeem their points for a free hair service or merchandise worth up to $50. The cash register tracks points by customer. The only customers who have not signed up for the loyalty card are walk in customers, so probably 90% of customers use the loyalty card. I'm thrilled that customer bookings have been growing at such a high rate. I'm actually kind of surprised that the bank deposits aren't higher. Given the number of appointments we have had and the amount of hair colour we are going through since the new part time staff were hired, I expected sales would be even higher. A typical lady's cut costs $50 and colour service can range from $100 to $200 depending on the length of hair and type of service. The new staff are charging $40 per cut right now to try to encourage business. It sure is working-they are busy all the time! Karen and I are booked 100% of the time during the four days each week we work. Normally we would each do five hair cuts each day and two colour services. We each have decided to work four days per week as the part time staff work 2 full days on the weekends and 3 evenings each. The two new part time staff could do the same amount of cut and colour services on the weekends as Karen and I do each day through the week, sometimes more. In the three evenings each that they work, the schedule Grace keeps shows they are very busy, doing 5 cuts most evenings and 1 colour treatment. I'm kind of surprised that we have constantly been running out of colour needed for hair dying. I used to know how much I would go through each month but the last few months I have been running out all the time, especially of a particular brand that has become popular after a celebrity started doing advertisements for the manufacturer. It's a great product but is really expensive compared to the other brands. I really should count inventory more often-it seems like it is the last thing I have time for since I have been running the store and doing all the bookkeeping myself. The salon franchise where I used to work had codes for different products and services that employees could not change at the register. I don't really want to get into that as I trust everyone who works for me. Employees can override the standard price and input the price they feel is most appropriate to charge. I want my regular clients who followed me from my last employer to be happy so I give some of them discounts for their services. Nail Art shares TYI's cash register, ringing in services and products sold by using a certain code to distinguish sales related to Nail Art as opposed to those for TYI. Julie and Emily have a verbal agreement that TYI will charge Nail Art 20% of their sales in lieu of charging Nail Art rent.