Based on the proposed business model, a decision analysis captures certain criteria to sell the makeup and skincare products. The analysis includes the Total Quality Control (TQC) method as seen on the diagram.
The diagram depicts how sales training and higher quality makeup and skincare product lead to superior customer satisfaction. Along with managed inventory, prices can be adjusted and cost-effective for the customers. The quality control check will increase sales profits and stock prices.
Current and future trends predict Ulta Beauty sales having stronger sales revenue in 2021 onto 2022. The diagram reveals that sales are rising because consumers are spending and with covid vaccinations more comfortable going to the stores.
The business model suggests that investing in the personnel and utilizing an inventory management tool would positively affect revenue and the stakeholder’s profits. A decision tree is used to determine the probability of the ultimate goal, which is customer satisfaction and retention.
The decision tree focuses on investment of employee training and incentives leading to products sold versus lack of training leading to employee frustrations and turnovers. The cost for rehiring and retention is much higher than recognizing employee talent.
The inventory management tool focuses on inventory control where products are sitting on shelves for a long period of time or wasted for lack of interest. As long as inventory is managed correctly, there is a greater demand and more efficient supply to manage cash flow and equity to debt ratios.
The outcome always points to customer satisfaction and increased following to the Ulta Beauty brand.