elevator pitch - case study on starting up a recruitment company by kazim ali khan
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Case study plan for University students - Kazim Ali Khan Ma FoiTRANSCRIPT
Kazim Ali Khan
Business Planning and Component StudyBusiness Planning and Component Study
Kazim Ali Khan
““I knowI know forfor suresure””
““I see it comingI see it coming””
““I think it might happenI think it might happen””
““I have a sneaking suspicionI have a sneaking suspicion””
““II’’m totally obliviousm totally oblivious””
Breaking the Thought BarrierBreaking the Thought Barrier
Strategic anticipation is aboutStrategic anticipation is aboutsuspecting opportunities from thesuspecting opportunities from the
emerging market conditionsemerging market conditions
Kazim Ali Khan
Compelling Brand
High Profits
Low Operating
Costs
High Efficiency
GermicidalEffects
(Business Plan)
AimAim
Kazim Ali Khan
Port
folio
of S
trat
egy
Initi
ativ
es
Time
>2 yrs
2 – 5 yrs
<5 yrs
Time frameTime frame
Kazim Ali Khan
ComponentsComponents
1. Financial Modeling2. Service Portfolio3. Rise and Reach4. Building Blocks – For Growth5. Base Effect – Superior Brand Recognition
Kazim Ali Khan
Financial ModelingFinancial Modeling
Kazim Ali Khan
Lower Margins Higher Margins
Spec
ialit
yC
ore
Publication
HR Consulting
Temping
FranchiseeNeeds
Value
Service PortfolioService Portfolio
Professional
Permanent
Job Portal
Outplacement
Can BeShould Be
Kazim Ali Khan
Rise & Reach (HS model)Rise & Reach (HS model)
SCUSCU
Kazim Ali Khan
Building BlocksBuilding Blocks
Kazim Ali Khan
Base EffectBase Effect
Kazim Ali Khan
Study PlanStudy Plan
Kazim Ali Khan
Need AnalysisNeed AnalysisOpportunities Threats
Strengths
Professional Backing Existing Setup Industry Expertise Low Cost Base High returns market
Present market conditions in Indiaand ME region
No Major Professional Player ascross-border service provider
Quality Delivery is complex process
Weakness
Weak Brand Basic Presence Lack of Technology Cross –border (Corridor) movement is
Investment intensive
Present Business Volatility Recruitment activity is considered
as a contingency RoI can scramble (scathing cost of
cap) Too many operators No specific data on recruitment
industry in cross- borderrecruitment business
Kazim Ali Khan
Risk Factor AnalysisRisk Factor Analysis
Lost Revenue• Technology usage• Opportunity cost• Lost Future Revenues• Quality standards
Productivity Loss• Performance matrix• Accountability factor• Error rate manager
Damaged Reputation• Servicing clients• Contract management• Work contract payouts• Vendor payout system• Accounting & Legal practice
Delayed Collections• Accounting standards• DSO and cost control
Expense control• Travel Expenses• Temporary
Employees
Penalties• Contractual• Regulatory• Legal
Kazim Ali Khan
Size
of C
ompe
titiv
e A
dvan
tage Benefit Period Erosion PeriodBuildup Period
Strategicmovesproducecompetitiveadvantage
Moves byrivalserodecompetitiveadvantage
Size ofcompetitiveadvantageachieved
Time
Competition and Strategic PositioningCompetition and Strategic PositioningAnalysisAnalysis
>2 yrs
2 – 5 yrs
Kazim Ali Khan
Constituents
ValueCreation
ValueValueCreationCreation
Sales Volume
Pricing
Op Expenses/SG&A
COGS
Reach / access to new markets New value propositions
Creation of new product /service offerings
Brand image building Demand-supply matching
Sourcing price reduction Better price-value matching
Cost-to-serve improvement Logistics network efficiency Transaction cost reduction
Effective marketing Effective policing of company
policies
Productivity improvement Logistics network productivityimprovement
Favorable sourcingcontract negotiation
Inventory level optimization Time-to-market reduction
Technology
WorkingCapital
FixedAssets
Effective customersegmentation
Forecast accuracyimprovement
CostReduction
Asset IntensityReduction
RevenueEnhancement
LeversLevers
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Patternof ActionsThat Define
Strategy
Strengthen local presence and delivery capability
Corridor creation
Hiring talent
Risk mitigation mechanism
Functional activities
Pursue new opportunities or defend against threats
Budgeting plan
Actions to be TakenActions to be Taken
Developing Practices
(CoE)
Market presence
Lets discussLets discuss –– Path forwardPath forward(who, when, where and how(who, when, where and how –– Game plan)Game plan)
Kazim Ali Khan
MarketMarket
Kazim Ali Khan
1. Hewitt Associates (NYSE: HEW) announced it has acquired LewisCo Group (LCG)and its wholly owned subsidiary, Disability Management Alternatives. (Source:Hewitt press release, April 29, 2008)
2. TriNet announced it has acquired professional employee organization (PEO) LMCResources (Source: TriNet press release, April 16, 2008)
3. UK-based benefits management services provider Xafinity acquired Hazell Carr, aspecialist provider of pension management and administration services (Source:Hazell Carr press release, April 7, 2008)
4. Kenexa (NasdaqNM: KNXA) acquired London-based Quorum International, aprovider of recruitment process outsourcing (RPO) services in Europe, the MiddleEast, and Africa (Source: Kenexa press release, April 2, 2008)
5. Manpower (NYSE: MAN) acquired CRI Inc., a Los Angeles-based RPO servicesprovider (Source: Manpower press release, April 1, 2008)
In ObservationIn Observation –– HR TrendsHR Trends
Kazim Ali Khan
• Almost 90% of businesses in the gulf region say securing the right candidatefrom the international job market is either a struggle or entirely impossible,according to a new Poll
• A third of respondents to the latest arabianbusiness.com survey said “with thepresent exchange rates we find it almost impossible to get the right get theright people”
• More than one half (53.8%) said that attracting and retaining the talentrequired to remain competitive was a “struggle” with companies “having to offerhigher salaries than the business can really afford”
ARABIANBUSINESS.COM SURVEY 2009ARABIANBUSINESS.COM SURVEY 2009
View pointView point
Kazim Ali Khan
GCCGCC
Gulf states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UnitedArab Emirates
Investment boom backed by decades of saved petroleum revenues
To build a tax base and economic foundation before the reserves run out, theUAE's investment arms, including Abu Dhabi Investment Authority, retainover $900 billion in assets
Other regional funds also have several hundred billion dollars
IMF predicts its GDP to reach $1,112.076 billion at end of 2008 and$1,210.112 billion at end of 2009
Kazim Ali Khan
Middle EastMiddle East
The Middle East (or, formerly more common, the Near East) Armenia,
Azerbaijan (partially in Europe), Bahrain, Cyprus, Georgia, Iraq, Israel,
Jordan, Kuwait, Lebanon, Oman, Palestine not fully sovereign, Qatar, Saudi
Arabia, Syria, Turkey (partially in Europe), UAE, Yemen and Egypt
the three largest Middle Eastern economies in 2008 were Turkey ($
794,228,000,000), Saudi Arabia ($ 467,601,000,000) and Iran ($
385,143,000,000) in terms of Nominal GDP (world bank dev report 2009)
In regards to nominal GDP per capita, the highest ranking countries are
Qatar ($93,204), the UAE ($55,028), Kuwait ($45,920) and Cyprus
($32,745).Turkey ($ 1,028,897,000,000), Iran ($ 839,438,000,000) and
Saudi Arabia ($ 589,531,000,000)
Kazim Ali Khan
(PPP)-based income highest-ranking countries are Qatar ($86,008), Kuwait($39,915), the UAE ($38,894), Bahrain ($34,662) and Cyprus ($29,853)
The lowest-ranking country in Middle East, in terms of per capita income(PPP), is autonomous Palestinian Authority of Gaza and the West Bank($1,100)
Industries of the Middle Eastern region include oil and oil-relatedproducts, agriculture, cotton, cattle, dairy, textiles, leather products,surgical instruments, defence equipment (guns, ammunition, tanks,submarines, fighter jets, UAVs, and missiles)
Banking is also an important sector of the economies, especially in UAE andBahrain
Middle EastMiddle East……22
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1. high dependence on oil and the petrochemical industry
2. high dependence on foreign labor
3. a low rate of female participation in employment
4. a weak link between educational system output and the needs of the
economic sectors
5. Enhanced safeguards and protections for employees in the region
6. Wage protection system (WPS) in UAE
7. Kuwaiti government announced new labor law
Macro IndicatorsMacro Indicators
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8. expatriate professionals on rise in Dubai, Doha, Saudia Arabia
9. Countries are making it easier for employees to switch jobs, and new labor
laws have been passed into law or are under review, with much more pro-
employee stances
10. Salary growth slowed with base salary rising at an average of 6.2% over the
12 month period to August 2009, compared with 11.4% for the same period
last year
11. Oman saw the biggest average pay rise at 8.4%, followed by Qatar, Saudi
Arabia and Bahrain at around 7%
12. The UAE and Kuwait stood at the bottom with 5.5% and 4.8% respectively
Kazim Ali Khan
13. On a sector basis, accounting and audit companies saw the biggest average
rise at 7.9%, as concern about the financial health of firms boosted
demand for audit services
14. Investment firms offered the smallest pay rises this year
15. On a regional basis, Oman secured the largest average increase at 8.4%,
though still much lower than last year Qatar, Bahrain and Saudi Arabia
had similar increases of around 7%
16. Kuwait had the smallest rise at just 4.8% while professionals in the UAE
saw a pay increase of 5.5%, down sharply from 13.6% in the previous year
Kazim Ali Khan
17. Initiatives towards enhancing Bahraini nationals employability in pvt
sector has picked momentum
18. Major focus on efficiency driven exercises are underway from companies
in the region during this period of 2008 – 09
19. Among countries, the UAE ranked highest, with 16% being made
redundant Based on data from GulfTalent.com
20. Dubai’s share of advertised vacancies in the GCC fell from 48% during the
first 9 months of 2008, to just 31% during the same period in 2009
21. By contrast, Abu Dhabi, Qatar and Saudi Arabia saw their shares
increase significantly
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22. An analysis of commuting patterns reveals that, among expatriates living
in Dubai, the percentage who work in Abu Dhabi has tripled over the last
year from 1% to 3%, a trend also observed in the increased traffic on
the 120km highway connecting the two cities
23. This excludes a much larger group who have relocated their residence to
Abu Dhabi, as well as those who serve Abu Dhabi-based clients from
their offices in Dubai
24. One of the biggest developments of 2009 has been a change in
the fortunes of Dubai, from the fastest-growing hub of the
region sucking in much of the expatriate talent, to the city
experiencing the region’s most severe downturn
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25. Jordan, Egypt and Lebanon, which supply the bulk of the Arabic-speaking
expatriates to the Gulf, have also been affected by the downturn, with
previous pay pressures cooling down substantially
26. Between 2002 to 2007, the US dollar fell by 20-45% against a range of
currencies, dragging with it the value of Gulf salaries for expatriates
27. Since the beginning of 2009, however, the picture has reversed yet again,
with the dollar sinking 5-15%
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With India and more to expect..With India and more to expect..
1. India is a huge country with many opportunities
2. India has the world’s tenth largest economy and the third largest in Asia(behind Japan and China). It is predicted to become the third largest inthe world within ten years.
3. In the financial year 2006/07, the service, industrial and agriculturalsectors accounted for 54.8%, 26.3% and 18.9% of GDP respectively.Approximately 60% of the population are dependent on agriculture.
4. The Indian government is liberalizing investment in the civil aviation,telecom and insurance sectors but of 155 countries assessed by ease ofdoing business, India ranks 116th (World Bank survey).
5. Great strides have been made in knowledge-driven sectors such asinformation and communications technology (ICT), entertainment andpharmaceuticals.
6. Two-thirds of the world’s off-shore IT services are based in India, as arehalf the world’s back office processing functions (BPOs)
Kazim Ali Khan
Recruitment AgenciesRecruitment Agencies
1. Human Capital Investment2. Randstad Middle East3. Velocity Recruitment4. Select Human Resources5. Kobaltt6. Engage Selection7. Pathway Resourcing8. ND & Associates9. Darwin Recruitment10. Sommerman Skinner Associat...11. Kelly Services12. Resource Sciences Arabia L...13. Talent214. Manpower Professional15. Kawader16. Architect and Designer Rec...17. Logistics Recruitment18. ConSol Partners19. Adecco20. Eutopia Solutions21. Jerry Varghese Internation...
22. Pulse23. Blake International24. Michael Page International25. Leirus26. NSI27. Ma Foi Management Consultants28. Group Armour29. Saudi Intelligent Solution...30. SET Recruitment31. Ejadah Management Consulta...32. Iperium Consulting33. Merge Recruitment Agency34. IRM Solutions35. Redstone Associates36. Aspiriti Executive Recruit...37. KCM Recruitment38. NSR Associates39. Digby Morgan40. Mackenzie Jones
Kazim Ali Khan
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