Analysis Of The Internal Management Growth Plans

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02 Nov 2017

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Introduction 3

Analysis of the internal management growth plan 3

SMART analysis 4

PESTEL analysis 5

SWOT analysis 6

Conclusion 7

Referencing 8

Introduction

The report is primarily based on a recruitment company which hires managers, contractors and other permanent staff for big blue chip companies. There has been a considerable increase in marketing and recruitment firms over the years which have helped organizations achieve the best people from a wide poll of talented people to choose from. Matching the right candidates with the right employees is a tough task but it has become a very important business in the modern era.(Heath, 2011)

Analysis of the internal management growth plans

The internal management of the growth has been good. Its move from a mere consultant recruitment company to a talent asset management has been something to be envied upon. The business has set out a growth plan for the future by which it aims to expand in business into different areas of marketing and consultancy. The core aim of the business is to grow its turnover to a considerable extent and to become a leading marketing consultant. It aims to achieve this by creating sufficient jobs within the company to acquire a competent pool of staff. It has set out 4 objective plans which are aimed to achieve a considerable amount of growth in the future. They are as follows:

Achieving growth organically

Achieving growth with external funding

Organic growth of new products in new markets through better than good

Joint ventures, mergers and acquisitions

These plans are attainable and can be critically evaluated by the following tools:

SMART business objective plans

What are SMART business objectives?

An effective way to evaluate the business objectives is to implement the SMART objectives. A smart objective is

Specific

Measurable

Achievable

Realistic

Time scaled

Specific

A specific goal evaluates the whether the goal is clear and precise. By evaluating all the plans, the core aim of the business is to be big in stature and to increase its turnover to a considerable extent. The organic plan looks much more vivid and is more specific as compared to the plan which looks for external funding. The business aims to grow its turnover to at least £7 million by 2017 and it is only possible if it can acquire other small businesses. Along with that it aims to grow its products to new markets. Integrated with all the above plans is a merger or acquisition by a bigger and a more powerful consulting company which can help the business to achieve its aim to acquire small businesses.

Measurable

They assess whether the goals are measurable and whether they can help towards attainment of the goal. It is difficult to measure or gauge these goals as the main aim of the business is not only profitability but to be bigger in stature and to be a much more powerful brand than it currently is. It wants to be a leader in the consultancy and recruitment business and it can only be achieved if all the plans are implemented by the business with strict discipline and perseverance.

Attainable

This question evaluates whether the goals are attainable and realistic. Its expansion from a medium sized to a large consultancy and recruitment firm could be realistic if it can merge or be acquired by a powerful consulting firm which can help it to attract bigger and much more profitable contracts. Its aim to have a turnover of £7 million in 4 years time could be achieved if it can team up with the best in the market. It has to hire the most competent of people in the market and along with that it has to make sure it is able to make them perform in the most grueling and difficult situations.

Relevant

Goals that are relevant to an organization will only receive the support. They drive the team department and organization. The expansion and growth plan is surely relevant and realistic. Not only the business wants to acquire new clients but it also wants to keep hold of its existing clientele. It can only acquire new clients if it can keep its existing clientele happy. Along with that it aims to hire competent people who can help the business grow and who can withstand the pressure generated by its competitors and who can generate new ideas

Time scaled

Goals are typically time bound. A commitment to a particular deadline can help a team or an organization to focus their completion on that particular goal. A time bound goal can help to establish a sense of urgency. The business wants to achieve all this within the span of merely 4 years. Achieving this may not be an easy task as it wants to increase its total fee income from $340,105 in 2011 to $1,080,000 by 2016. As it has mentioned in its growth plan, the only obstacle to its growth is obtaining external funding. The financial hurdles can be overcome if its merger and acquisition plan is achieved and it looks possible that it can easily achieve its goal by 2016 to be a consulting powerhouse.

PESTEL analysis

Political and legal

Political and legal analysis has a huge impact on business strategy (Engelseth, 2009). Political and legal conditions affect how the organization operates with its customers, investors and other connected stakeholders. It has business operations in almost the whole of the UK and to maintain its hold it has to devise a strategic plan that can coincide with the national and legal policies and can create a win-win situation for all the connected stakeholders. There are a number of factors which it has to keep in mind and follow with strict discipline. Governmental and International laws affect the way a company is able to conduct its business and implement its business strategy. A change in taxation policy could affect its profitability plan and its expansion plan in the future. Along with that its aim to have a merger/ acquisition I the future could be hindered if there are changes in company or business laws in the near future.

Apart from the above mentioned issues matters such as Health and safety issues and labor legislation issues must be strictly monitored and closely adhered upon in regions where it has its business operations.

Social and Economical

Economical and social factors are critical for a business to survive and they include matters such as population, lifestyle, demographics and social trends. Population will play a vital role as the more densely populated areas or the areas with heavy population growth may have a huge demand for consultancy services. There has been a rapid increase in organization recruiting its staff with the help of consultancy and marketing firms and many firms have benefited from it (Accenture and BCG in particular) A big challenge, however, comes from modern innovative ideas such as outsourcing from developing or 3rd world countries such as India, Pakistan and Bangladesh which can hinder their progress in their domestic market. These issues can seriously affect the company’s future growth and can dampen its potential projects.

Technological Environment

In the modern era, Technology has been the most important factor in the development of any business. A company’s growth and success depends heavily on how effectively it’s able to utilize all the scientific and technological options it has at its disposal. (Lozano and Arenas, 2009) One of the most critical benefits technology has provided manufacturing companies is flexibility and time saving. Businesses can arrange virtual meetings whenever they feel convenient or whenever the need arises to have some important or critical discussions. Scientific and Technological Factors have played a key role in business development and have assisted with improvement towards travelling and communication.

SWOT analysis

Strengths

The organization is quality driven

It is outcome oriented

Experienced and competent staff

Weakness

It has very limited external funding available

Selecting the right people with salary budget constraints

Lack of money available to invest in employee training

Opportunities

Larger organizations looking for talented and career oriented individuals

Increase in candidate demand will improve profitability

Merging with experienced and more powerful consultancy firms

Threats

Increased competition from new and emerging companies

Failure to achieve sufficient profitability which could hamper its future progress

Competition with domestically and internationally growing recruiters

Conclusion

The recruiting and consulting company which deals with business challenges all over the world has set out quite an interesting and realistic plan. Targeting multiple markets and producing multiple products, along with that the employees working here are also from different countries and cultures with diverse backgrounds. It’s the task of the managers to understand different business challenges and pass them through to their employees so that they are prepared to face those challenges in the global market. Not only that but having a strategic alliance with fellow competitors could be a very crucial strategy as it can help this company to expand its business to a diverse but more competitive market and it has the chance to become one of the best in the business. Analyzing and assessing the competitors is crucial as they would be tough to beat and it would be interesting to see how they can match up with the growing competition in the market.



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