Beautiful_Store

Social Enterprise and Innovation – Fall 2009 | The Beautiful Store | Analysis on the Beautiful Store’s managerial strengths and business innovations | KIM Chulwung, PARK Hyunwook, LEE Sunggik, Tugrul Cirakoglu 2009-12-22 | TABLE OF CONTENTS Introduction 4 Core Values 5 Business Model: Profit generating structure Business Model: Selecting business item Brand: Securing resources using brand power Identity: Image magic of ‘a good place’ Customer satisfaction value: Providing and developing value of sharing Satisfaction: Satisfaction of participating brought by success Market & Environment 8 Customer: Resolving reluctance of participation Market: Existence of a preexisting market, products and social atmosphere Timing of business: Right business at right time. Mentor: Benchmark and learning on success model Product & New Business 11 Product: Portfolio and diversification strategy for securing items 12 Product: Securing items based on efficiency Entering new businesses: Continuous contents development Proposition 14 Distribution web: proper strategy of customer’s needs in a non-store place Finance & Cost management 15 Infra: Freeloading using social network Marketing Promotion 15 Promotion: meaning-based free promotion activity and market. Promotion: enthusiastic & unprecedented social support Promotion: Public campaign and removal of consumer block by CI and SI. Culture management 18 Management and organization culture: Change everything in the way of beautiful store. Frame of value-mixed management Business performance management: Support system based on performance appraisal and growth Human resource 19 Leader and Leadership: Model, moral, and creative leader Human resource: passionate and devoted manager Human resource: BOD, management committee, sponsoring board of director Human resource: Volunteers Human resource: employment of local citizens, women, handicapped people, and social weak Management & Innovation 22 System: support structure that increases the quality of work Innovation: Endless innovation, enhancement willingness, and learning system Innovation: SWOT, 4P, process-based thinking mechanism Professionalization (quality enhance of the business): adequate exploitation of the professionals Originality of management: individuality that does not lean to others Reference 25 Introduction The Beautiful Store is a social enterprise founded by lawyer PARK Wonsoon and opened its first store in Angook-dong, Seoul, Korea, 2002. During the start up phase of the Beautiful Store its business was only focused on collecting and re-selling donated items through refurbishing process. Increasingly the Beautiful Store expanded its business’s scope including Fair Trade, Recycle Design, fundraising drives for the children of underdeveloped worlds, and a lot of social campaigns helping the unprivileged at a domestic level. In addition to initiating new social businesses, BS achieved a dramatic success with unprecedented levels of growth rate especially in the sector of social enterprises. During the first four years its number of shops increased from one to seventy four and the size of revenue and sales is also showing steady growth accordingly. All these remarkable achievements could be attributed to PARK Wonsoon’s personal leadership and initiatives, contributory BS’s members including a number of volunteers, and BS’s achievements in innovative and efficient business practices. As of 2008, former CEO PARK Woonsoon gave his leadership position to an outsider called KIM Moonhwan, a former president of Kookmin University. The new CEO will also leave the company in the future when he believes his job is done. The Beautiful Store is still growing and living entity invigorated by endless new spirits of participants outside the company. In this paper, our team will primarily focus on the analysis of Beautiful Store’s business performance and strengths. The goal of this paper is to provide you with information about the beautiful store’s operating processes together with other meaningful insights for future social entrepreneurs who dream of setting up their own social business one day. Core Values Business Model: Profit generating structure In order to generate better profit levels the Beautiful Store (BS in short) added new features to the existing business model which was simply “procuring and selling second-handed items”. The BS procures items without costs and then sells these items on a larger scale with free labor costs in free spaces lowering operating expenses. Transforming this seemingly unprofitable business handling used items was a critical success factor in BS’s profit generating structure. Moreover, the BS utilized some of the advantages and privileges given to non-profit organizations. Those advantages include not just administrative and legal support but also utilizing freely-accessible social resources to resolve structural problems such as high costs and low production levels. Business Model: Selecting business item The fact that BS has chosen commodity items and there was already existing business boundary was very crucial to BS‘s survival in the market. The market which already has customers and is easily understandable with free access to it never fails if the business has products with distribution channels and less customers’ perceptional resistance. To pioneer a new market is very difficult but the market of used-items had relatively less such obstacles. In fact BS’s fair trade business had hard times when it started to sell handicrafts since the size of the related market was so small. But, the performance of the business became better when the company shifted its business items from handicrafts to coffee beans which already had much bigger existing market. The BS’s another business, Recycle Design, was also based on fashion industry which is easily accessible to anybody and it is ongoing expansion. For BS, the matter of picking which market to penetrate is very important and the pie of the market should be large enough to feed the company. Brand: Securing resources using brand power One of the characteristics of a non-profit business is that products are mainly purchased based on the company’s reputation or image. Trustworthiness and transparency are crucial for non-profit businesses and should be directly reflected to business performance in order to find new opportunities for the business. At the start up phase BS aggressively made use of PARK Wonsoon’s good name who was known for his great reputation in the Korean field of social activism. Most of the assets, store facilities in particular, of BS were secured without costs and media advertisements and mass donations were easily gained through utilization of PARK’s good name and social networks within the Korean society. However, these resource acquisitions were solely based on PARK’s good name and the BS had to make preparations for when Park would leave. In preparation of PARK’s leaving, BS made strategic choices to strengthen its brand. Luckily BS’s brand recognition was gradually expanding in society and after a while PARKs name was replaced with the BS’s name. About five years later after the founding of BS its reputation became solid and well known in the market. The BS had no religious and political propensity, which is a rare aspect for non-profit organizations in Korea. The lack of this religious attachment worked as a beneficial factor for the company to acquire a ‘pure and comprehensive’ brand image. BS also utilized this strength to the fullest extent to cooperate with different religious groups in securing places for stores. Another strength of BS is public confidence. It hired external accounting auditors for internal inspection and revealed all the information about income and expenditure of the business on the company’s website. Such transparent practice was kind of rare among other Korean businesses. Moreover, when it comes to internal transparency, BS has built an operational system which is designed to share work-related information among employees. All these efforts in transparency provided unlimited confidence to participants and eventually led to improved brand reputation. Identity: Image magic of ‘a good place’ The identity of BS is, no matter what it propagates, ‘a good place’ from the public’s perspective. The public recognized BS as a good place selling products to help unprivileged people of the society rather than just a business entity of selling donated used items. This perception worked as attractive to the public and eventually helped the company easily gain support, participation, and transactions from the society. To maximize these effects, BS has communicated with the public not through periodic businesses which are set based on specific time boundaries, but year-round sharing businesses with no such boundaries. Customer satisfaction value: Providing and developing value of sharing In every business, products and service should provide customer satisfaction. To meet this demand, the BS also speculated and studied various ways to satisfy customers (participants) using its products and services such as social contribution program, used-items, volunteer recruiting, and collecting donated items. In other words, as there must be incentives for participation such as donation, voluntarism, and contribution, BS had to provide something back to the participants. Although those rewards were not realized in physical or financial forms, since BS’s business and objectives were not profit-seeking but helping-oriented, it was possible to develop non-financial rewards for participants. The BS provided the media periodically with news items about its businesses and performances. In doing so, BS could provide psychological satisfaction to participants such as donators. In addition, BS studied privileges it can provide to those people under the boundary legal authority allows and moral justification which can make more donators to open their wallets. The mindset that it is shameful to gain help without providing back any relevant values or to take those help for granted, was pervasive among members of BS and it finally became a culture of the organization. Satisfaction: Satisfaction of participating brought by success Success begets another success. The image of BS was that clients could achieve success if they worked with BS. A number of businesses, programs, and events collaborated with customer businesses became successful to some degree and these successful experiences of collaboration brought about more participation and word-of-mouth effects. This practice was applied to the sectors of voluntarism, donation, and contribution. The desire to participate continuously originates from satisfaction of success and this success provides such a strong drive not only to external participants but also internal operators. Market & Environment Customer: Resolving reluctance of participation There was a social reluctance over selling used-items when BS initiated its business. Koreans thought that used-items were commodities only for the poor and this misperception was a significant obstacle to BS’s business. To resolve this problem, BS initiated various promotional campaigns to change people’s perception of donating and purchasing used-items and deployed a strategy occasionally showing transactions of celebrities, leaders, and middle-income people to achieve this. These efforts lessened customer’s suspicion of purchasing used-items and also concerns over other people’s perspective. As a result, middle class people became both a major donating group and customers. Market: Existence of a already formed market and products and social atmosphere When BS was established, there was already a social atmosphere that commoditized used items can be successful and BS was benefited from this context. People were already familiar with the concept of used-good stores, due to the Anabada movement, which is about promoting usage of used items, driven by the Green Store (Noksek Gage) in the 1990s. Moreover, the quality of the used products, which was the most crucial factor in the market, was raised to a fair level as Korean economy improved. If there were no available items with fair value or understandings of using used-items or generalization of donating culture, it would have been very difficult to launch the business or success of this business could have been realized by other organizations in later years. Timing of business: Right business at right time. People’s interest in specific businesses, products, and organizations always changes. When this interest was pointed at a certain area, businesses can take advantage of this to achieve explosive growth and expansion. Hundreds percent of growth rate is not impossible facing this kind of opportunities. The leadership of utilizing these chances effectively is also essential to the growth of businesses. The BS also experienced such an explosive growth in 2004 and 2005. During this period, there were almost more than one store opened every month. Due to this fast expansion, there were some arguments that BS should slow down its pace. People were concerned about problems such as deteriorating service quality, deepened imbalances among managerial sectors such as donation, production, and retailing, and members’ accumulated fatigue. However PARK Wonsoon, executive director, said that everything had its right time to be done so BS should remain its expansion strategy. A few years later, his argument proved right when social interest over BS was declined and so was the number of donated stores. The BS is prepared to face another golden age to make a leap forward. Mentor: Benchmark and learning on success model Following foot prints made by those who already passed the path can lessen trial-and-error and wasting costs. Despite the fact that there could be lesser degree of creativeness in following precedents’ path without questioning, at least it is very important that there is already a business model that late comers can follow. The BS did not follow the suit of the Green Store (Noksek Gage), which already existed in Korea when it started business. Although the Green Store had own strength in terms of community activities and environmental movements, the size of sale was so small and the number of participants was also trivial. Thus it could not be BS’s benchmarking model since it pursued nation-wide participation. The Salvation Army and Good Will of the US, Oxfam of the UK, and WE21 of Japan, all globally recognized, have a long history ranging from 50 to 100years and these are. When it comes to operational know-how and social impacts, the BS had a number of things to learn from those precedents. The BS has sent its selected employees to those organizations more than two times a year to learn their advanced management skills and grown listening to each director’s coach. BS’s initial warehouse design and operation system were based on those of the Salvation Army. The way to create charity culture of reusable items from small-sized stores has developed based on that of Oxfam in Britain. In addition, BS went into partnerships with foreign charity organizations with remaining sustainable relations for mutual development. Product & New Business Product: Portfolio and diversification strategy for securing items Customer’s product development is the same as securing donated items for the BS. Securing good quality and marketable donated items is life and death matter to BS. To maintain sustainable procurement process for securing items are as follows: First, BS opened event promotions such as donation ceremony. By opening events such as the Beautiful Saturday, the Beautiful day and One-day shop, BS provided external participants including corporations, government institutions, and organizations with customized event services. These events suggested a new way of social contribution and became spread to society as a fad. Second, it was building a donation infrastructure. Running item-collecting vehicles, free delivery service, and placing large boxes designed to collect donated items could be secured by corporations’ support. Third, BS has promoted donation campaign in the society. In collaboration with mass media companies, BS initiated campaigns to promote donation practices and with a real property company, it also started a donation campaign during the moving season. Celebrities’ donation relay was ongoing. Moreover, to provide satisfaction to donators, BS issued “receipts of donated items” and also sent appreciative letters to lead the next donations. At the first part of annual business plan, BS placed such phrase, “Getting donations is the only way to survive”, and tried to make all the efforts available. As a result, it was able to secure almost ten million items from donations. Product: Securing items based on efficiency One of the most important factors in business is efficiency. Farmers sows one hundreds seeds to harvest one hundreds fruits. But business is more like to sow one hundreds seeds and to gain more than ten thousands fruits. To achieve ten thousands fruits from costing one hundreds seeds, organizing human resources to make them work as much as you do is crucial in achieving the goals. This approach was also applied to securing donated items, which is the most important thing to BS’s sustainable business. A single person cannot collect more than a thousand articles even though he meets donators as many as he can. However, a single person can achieve more than that with less efforts if he collaborate with largely-populated enterprises, organizations, and institutions to raise donation. The BS performed its business primarily based on such efficiency. When establishing stores in a certain community, BS tried to utilize local community network by organizing first an operational committee composed of local figures to generate all the local resources required to do its business. As using mutually beneficial marketing strategy based on public interest, BS suggested marketing plans helpful for corporations to improve their brand image and sales performance since they indicated efforts for public interest. In return, it could achieve a remarkable success in terms of procuring donations and funds. Entering new businesses: Continuous contents development No matter what business is, interest over the business is supposed to be disappeared. To keep this interest, companies should continuously create new business models or interesting issues. When it comes to finance, entering a profitable business is core factor of sustainable management. The BS created numerous new ideas to its business portfolio thanks to PARK Wonsoon’s creative propensity. Whenever new businesses and social movements were developed, these things were introduced by media coverage and this raised public awareness of BS thus eventually worked as a factor to facilitate people’s participation. These efforts enable BS to have an image of “living” organization so worked as a driving force of social solidarity, donation, and contribution activities. Not all the attempts proved successful in terms of finance and sustainability but these new businesses helped BS increase public awareness of itself and its preexisting business. The followings are what BS started as a new business. : Donating used toner cartridges, Mearry (eco-friendly business about manufacturing and designing fashion items using recycled or used materials), the Beautiful Handicraft Shop (Gong Bang) - business of selling commodity items made of recycled materials, Aga Hong (business of selling young creator’s stuffs), auction-specialized stores, child products-only stores, and building the Nature School teaching about environment and sharing. Proposition Distribution web: proper strategy of customer’s needs in a non-store place It is necessity to acquire a plenty of stores in this retail industry than the manufacture industry, strengthening the Distribution power in terms of Distribution web and coverage expansions. In the beginning, BS can’t afford money to open another store so that it had a limitation of Distribution strategy. Interests from customers and acknowledgments of BS had positively been increasing, while desires and discontents from customers had negatively been increasing. BS had a loosen response problem of getting store’s information and buying a product that a customer wants in off-line. To solve that problem, BS launched On-line mall and moving stores by taking a concept of accessibility and mobility. Thus moving stores, called Mobile charity shop, could cover up non-store places and On-line mall could allow customers to buy their products. Mobile charity shop has been using as tools of not only moving stores but also opening big sale events outside. On-line mall also could be successful by using well-condition for the Internet network in Korea. On-line mall became the famous place to sell a luxury product that many celebrities donated to the mall. Finance & Cost management Infra: Freeloading using social network. When we first started the BS, many CEOs in Korea concluded that this business is not going to succeed. The main gist of the evaluation is that they won’t be able to overcome the cost of the investment requirement. As predicted, the store, production line, freight, gas cost are essential elements but, the costs are overwhelming. Had we procured all these at the valued price, we would have gone broke and failed miserably. BS knew that in order to survive in the business, they have to obtain these infra elements for free. Pleading, asking, blackmailing through the members of this society and contempt and badgering, nothing was obtained easily. But, everybody in the company put up their sleeves and went out to convince everybody in the industry and we were able to secure all the necessary infra within short time. During the process, we utilized the human network and connection and gained a lot of know-how. In the end, we spent budget on less than 5% of the procurements. Getting support and subsidy from municipal government and increasing the public awareness along with public participation from the community was accomplished through the humane network strategy of the BS. Marketing Promotion Promotion: meaning-based free promotion activity and market. The BS does not have separate budget for promotion. “Meaning and Material” are the things that replace the promotional budget. It thinks that “if there is clear meaning, money and resource will follow, and if there is clear material, then media would be eager to join.” BS’s own ability to change original recycle charity market into hot promotional “material” by adding keyword of ‘share and cycle’, would be one of the advantage that beautiful store had. Outcomes of such material-based strategy are following: Joong-ang daily newspaper, one of the top 4 daily newspapers in Korea, reported an article per week for a year, broadcasting company like MBC, SBS, etc., filed special program of the beautiful store. To obtain such “material’, it continuously proceed its sharing business for the poor even though there were 2 years of deficit after its foundation. Even after that, numerous media reported BS. It could continue the interest of media by creating various campaign, event, news issue, and gain the new promotion power by launching new business at the period when interest could possibly decrease. Plan of ‘free promotion,’ was gaining outside advertisement place, spot advertisement of cable TV, sheet of magazine, etc., for free by exerting its meaning as an non-profit organization, and such things, luckily, used as a source of public advertisement, and better promotional effects were gained. Real market is a best site for promotion, and also a place of business. Single visit to the market offers the opportunity of directly experience the various contents of BS, and made them to clarify the way of business by their own eyesight. Thus, ‘full force for market extension,’ which was a source of torturing every related people and seemed silly was actually the effort of building the biggest promotional infra. Promotion: enthusiastic & unprecedented social support There is no history on Korea daily newspaper business, which introduces the business of single organization one time per week for a year. It would be especially true in the case of major newspaper company like Joong-Ang Daily. BS exploited that advantage. This wonderful campaign, started by the indication of Joong Ang’s president, who was moved at the opening ceremony of beautiful store’s 1st store, can say that it created the early brand of BS. ‘World biggest flea market’ which was done in 2004, was the ceremony for financial support, but it became the real ‘world biggest’ ceremony by utmost support of Joong Ang Daily and major broadcasting firm MBC’s 2-hour live broadcast to the whole country, and it made an opportunity of gaining considerable promotional advantage by drawing more than 200,000 of visitor on Jamsil main stadium, the festival site. Help of such media made its part of increasing the comprehension and knowledge of BS which were weak at the countryside and participant’s blogging about the BS were also really helpful for promotion. SBS’s “TV Beautiful Store” in 2005 was a social support based on luck. SBS, which had to face examination for private broadcasting, needed so-called public program, and it reported special broadcast in the name of non-profit organization’s name one time per week, for a year, and it was an unprecedented event. This program, which was based on charity, stabilized beautiful store’s brand identity as a charity organization. KBS’s public advertisement (sponsored by Hyun-dai securities) in 2006 took its motive from the beautiful store, and public advertisement (sponsored by the labor department) in 2008 also took its motive from BS. The persons concerned with the manufacturing came voluntarily and gave a proposal, so this would be the best social support that was attainable by wisely managing its brand image. Promotion: Public campaign and removal of consumer block by CI and SI. National culture enhancement campaign, to beautiful store, is a purpose-driven business, and one type of promotional means. To remove the recognition to the use good, it has processed public campaign from the beginning. At the campaign which its purpose of donation culture activation, it continuously awaken the civil concept by proposing the concept of ‘purchase itself is charity, and donation itself is the help toward the poor.’ Sometimes by campaign with media, and sometimes with flyer, placard of the store, it slowly but continuously changed the recognition toward the used good in Korea into the positive way, and it was directly connected to the increase of sales and donation to BS. Interior design(Shop Identity) and CI(corporate identity) are also designed into fresh and delightful mood to enhance the negative recognition of used good, and this work has brought the effect of stress its goods and relieve the feeling of customer, though the product was used one, and it ultimately increased its sales. Culture management Management and organization culture: Change everything in the way of beautiful store. Frame of value-mixed management. BS is a non-profit corporation based on its structure, but in the way of management, it is a unique value-mixed organization that has profit and non-profit at once. Characteristic of manager is also divided. Content that is generalized in the corporation is not working here, and content that is normalized in non-profit organization is also considered inefficient here. Wisely ruling such duality is one of the core powers of BS. Anything, include consulting from outside, and system offering from outside, should be converted into the “Beautiful Store way”, and such converted goods are only apt to BS. Major management structure include POS system, intranet system, etc are also self-developed within the BS based on the thing of outside, separately designed its financial standard, and management techniques like KPI, BSC, 6SIGMA, etc., are converted based on the way and member’s characteristic of BS. Furthermore, personnel standard, and wage management also done by standard and policy that is based on separate culture compare to the corporation. Business performance management: Support system based on performance appraisal and growth Even in the BS, needs of the performance management is exceptionally high. Everyone wants to get good appraisal and fair personnel management. However, extreme performance appraisal can become a block of remove passion within the organization, by delete self-control within the organization. In the case of BS, it devoted itself for standard effort to build the structure of appraisal management system. First, it built the mission and vision of corporation, decided the core goal and project, design the performance of team and individual, and ultimately built the controlling structure step by step. However, when the characteristic of BS’s member is considered, it seemed that the performance management structure of normal corporations was not adequate, so new appraisal system, which performance appraisal and performance growth are main contents, is now considered to be built. It pursues efficiency, but convert itself in our way and pursues ‘consented efficiency,’ would be the characteristic of BS. Human resource Leader and Leadership: Model, moral, and creative leader We cannot say about beautiful store without mentioning ‘Won-soon Park.’ He had built BS, implemented own various ideas, and he is a person who brings almost 200~300 pages of business embodiment and disrupts officer, a person who has infinite effect to inside and outside of Korea, a person who shows the model of greatly caring volunteers and donators, and a person who relieve the whole fight between managers, a person who does not receive single salary, but donate some money he earn from outside to manager’s welfare, and a person with moral purity and humanity. His ability, social relationship, and model leadership would take parts of more than 90% of BS. Human resource: passionate and devoted manager BS cannot acquire best-quality worker with its exterior source of pay, welfare, working condition, etc. Small salary, excess work, and impel to have moral purity and mind as a non-profit organization’s worker, and even with work performance stress that normal corporation has, there is no doubt that such efforts of BS worker’s effort is the foundation that has built the BS of nowadays. In the early period of BS, manager who leaves his office at 10 p.m. said “I am sorry, I have to leave early.” Every worked fanatically, and works that has problem on labor law (excess work without payment, holiday work, etc) were really frequent. 7 days work per week was normal, and when chief director Won-soon proposed increase of salary for manager’s better live, manager themselves rejected such increase, this all was the condition of beautiful store. Workers who are work-holic with calling themselves as civil activist/worker, and person who feels shame when they are called as an officer, those are the person who had passion and devotion to work, and those are the person who has built the BS of nowadays. Human resource: BOD, management committee, sponsoring board of director Board of Director in Korea has different characteristic compare to the one in foreign charity organization. In the case of America, BOD is mainly consisted with the person who has the power of drawing large amount donator and donation. However, in the case of Korea, it is mainly consisted with socially renowned person who is related with the mission of the organization, so let outside the corporation’s characteristic and mission and aim for the effect of increase the confidentiality of the organization. BS tried to achieve both of goals. Initial BOD that was consisted with the person in finance, academy, politics, broadcast, civil, etc., did its main role of let public know about BS, and draw the resources. Especially, president Hong Myong hee who let the public know about beautiful store and draw significant resources, president Park Seong Joon and Yoon Pal Byeong who were the spiritual leader of manager, president Soon Sook who significantly supported for the participation of media, and others were the one who found the cornerstone of beautiful store. Furthermore, chief director Lee hae-dong, Kim moon whan and many other directors and auditors did their best in their field to support BS, and BOD that was constructed in 2008 focused on drawing more social resources, divided into divisional small committee, and doing its action structurally. Human resource: Volunteers Volunteers (action angel) are the one who performed and contributed to performance as much as managers. Their existence itself provides not only lower the cost by providing free labor, but as a main string that moves the BS. They work as a mother or father to manager, sometimes auditor to the operation, and sometimes loyal promotion manager who introduce BS to the people. They, who makes beautiful store flourish, are the owner of BS. Human resource: employment of local citizens, women, handicapped people, and social weak BS, due to its special characteristic, employ many ah-joom-ma or career-blocked woman. Currently, gender mix of beautiful store worker is man: woman = 4:6. In here, local citizens are newly employed when new store is opened on specific region. Furthermore, for the simple labor task, it employs social weak (homeless people, handicapped people, and prisoners) and converts them to the full time worker after certain period of time. In the work of low payment and simple labor, there is no applicant, and volunteers are not many, so employing them becomes great advantage to beautiful store and themselves also be benefited because they could get the stable workplace that they would not be fired unless they commit some terrible faults. BS, by actively converting part-time worker with passion and qualification into full-time worker, increase their labor willingness. (Total full-time worker that has been converted from part-time worker in 2008 are 9). Management & Innovation System: support structure that increases the quality of work BS does not maintain its business with the top labor force. Because of this reason, chief director Won-soon Park stressed ‘manual’ and ‘system’ from the beginning. He wanted that by make know-how into ‘manual’, so beginner can easily do the work more than that, and he tried to build the environment that people can work more effectively, by build various work support system within the short period. BS currently has more than 100 work manuals, and operates separately built financial, personnel, IT, knowledge information, inventory control systems. Innovation: Endless innovation, enhancement willingness, and learning system BS always appraise itself as “poorly done.” Thus, it thinks that it should always learn and enhance itself. These thinking have developed beautiful store, and it was directly connected into the performance. To success with weaker labor power compare to the corporation, it thought that it needs system building and increase of the individual’s capacity through education, and it invested highly on these two fields. BS, from the beginning of this business, secured 2% of sales as an educational fund for managers, and invest funds to foreign research study, work education, mind & leadership education, correct its manuals and file it, and build its own knowledge information system. Even though there is a lack of labor force who has knowledge on business management or related fields, it shows strategic action on its management because of such investment and self-learning. After that, it is now on the stage of internalize itself by the consulting from prominent business consulting from in and outside of Korea, and it tries to convert and adapt various business system like KPI and BSC, in the way of BS. Innovation: SWOT, 4P, process-based thinking mechanism The basic part of strategic management is external and internal environment analysis, and structural and professional correspondence against such things. Actually, most of the workers work for the non-profit organization has lack of systemic education about the structural solution of situation analysis -> problem and task lead -> purpose establishment -> task solving idea creation -> implementation -> appraisal and enhancement. It was exactly what BS was. However, continuous interest and effort for the management, it could analyze the problem by SWOT analysis, started to view its own task from the marketing perspective, and treated it efficiently. It learned various problem solving tools like 6 Sigma, Toyota way, Mckinsey way, cost reduction restructuring, etc., and tried to adapt those in the real workplace. Even though those are the tools that were not apt with the size and content of BS, and didn’t show much effect because of interior lack of interest and resistance, but worked role to inject some parts of process-based mind, cost recognition, strategic thinking mechanism through the learning process. Professionalization (quality enhance of the business): adequate exploitation of the professionals Accountants, lawyers, patent attorneys, labor attorneys, appraisers are the professionals that are definitely required to the management. In the case of BS, it employs them as a professional committee member from the “probono” viewpoint, and gets its service. Of course, it pays fee, but in overall, it brings great expense reduction. The way of viewing the BS from the exterior aspect by getting labor and service for free from exterior corporation, professional management consulting company, research companies, discover and fill the thing that needs enhancement are the way that indispensable to be equipped with efficiency and competitiveness that normal corporations have, though some of its process might be hard and difficult. Originality of management: individuality that does not lean to others Of course, almost everything of BS is constructed by donation and contribution of corporation, individuals, and public office. Acquiring donation from the corporation requires very difficult process and systemic and professional techniques. Current ability of BS was created by improving its know-how based on rivalry system, and keeping its distance from so-called easy way of government support, aid, and grant. Reference “The Beautiful Store”, Ray Horton and Hun-Joon Park, Columbia Business School, NY, 2008 “Analysis of the Beautiful Store success factors”, The Beautiful Store policy department, Seoul, Korea, 2009 www.beautifulstore.org http://www.sbs.co.kr/new/tv/tvstore/