Executive Summary
Operations
Brief Overview
Earthly Elegance is a luxury self-care business based on sustainability, providing organic shampoos, conditioners, face and body wash, deodorants, and makeup removers at the same time affordable. We offer a line of products that incorporates natural elements together with scientific advancements for health and eco-friendliness.
Facilities
In order to have easier access to the distribution and major consumer areas, we currently operate out of a rented commercial space in one of California's industrial areas. It costs roughly $3,000 a month. Utility costs are estimated to be $75 for water and sewer, $50 for gas, $200 for electricity, and $75 for waste disposal each month. The location is suitable for operations because it is easily accessible to suppliers and other transportation networks, which minimizes the cost of obtaining raw materials and diluting production costs (Cristini et al., 2022).
Production Process/Description of Business Operations
Purchasing basic organic ingredients, making mixtures, packing goods in containers, and conducting inspections are all part of Earthly Elegance's production process. Small-scale blending and filling equipment is available, and its installation costs roughly $15,000. Our environmentally friendly and recyclable packaging costs about $800 a month. Additionally, we test batches and follow quality standards throughout the production process to ensure that the end product is of the highest quality and consistency (Alevizou, 2022The company only purchases raw materials for its operations in advance of demand, so it won't buy more than it will use in a given month. Stock control means JIT adopted, which involves avoiding the holding of excess inventories.
Personnel Needs
Eight people work for the small, low-rise company: a production manager ($5,000), a quality control specialist ($4,000), three production workers ($3,000 each), and two packers ($2,000). Additionally, we have a $4500 monthly marketing and customer service specialist who manages online orders, customer inquiries, and the company's social media accounts. The team's organizational structure is adaptable and effective for handling daily tasks and client interactions, guaranteeing that we offer our clients excellent services and high-quality products.
Earthly Elegance wants to satisfy the rising demand for environmentally friendly self-care products while keeping a small, customer-focused business by emphasizing sustainable practices and effective procedures.
References
Alevizou, P. J. (2022). Sustainability claims in the luxury beauty industry: An exploratory study of consumers’ perceptions and behavior. In Sustainable Luxury: An International Perspective (pp. 173-196). Cham: Springer International Publishing. https://doi.org/10.1007/978-3-031-06928-4_9 Links to an external site.
Cristini, H., Kauppinen-Räisänen, H., & Woodside, A. G. (2022). Broadening the concept of luxury: transformations and contributions to well-being. Journal of Macromarketing, 42(4), 673-685. https://doi.org/10.1177/02761467221116779 Links to an external site.