StilSim Personnel Strategy Formulation - Essay Example

? StilSim Personnel – Strategy Formulation Contents Contents 2 Current Industry Overview 3 Overview of the Company 3 SWOT Analysis 4 Strengths 4 Weakness 4 Opportunities 5 Threats 6 Strategies 6 Balanced Scorecard 7 BCG Matrix 8 Recommended Strategies 9 Strategic Objectives 10 Conclusions 10 References: 12 Current Industry Overview The global downturn of the year 2008, which was triggered by a financial crunch in the US has greatly impacted the mode of operating for major multinational companies as well as small and medium enterprises. Companies are increasingly moving towards a model, where there will be low overhead costs. The organizations are trying to go for a leaner look in their workforces. They are trying to adjust to the lean model by opting for temporary staffing solutions, whenever there is a huge demand for manpower in the production sites or at the shop floors. It has been found out in a research that as of todays date, around 90 % of companies based in the United States are increasingly opting for temporary staffing solutions. The trend for companies opting for various kinds of staffing solutions requires a tremendous accuracy in their demand forecasting processes and trend analysis. The temporary staffing solutions as implemented by companies today are very much and highly sensitive to the macro economic factors that affects the global economy. It has been found out by research that staffing solutions gets extremely affected when the global economy goes through a depression or downturn. Again when the global economy goes through a boom or a peak phase, the staffing solutions are highly demanded by major corporations as well as most small and medium enterprises, in order to match up to the sudden spike in the demands of various industries. Overview of the Company StilSim Personnel is a personnel staffing and recruitment company which has been founded by Bill Simmons and Rusty Stillman, about 25 years ago. The company was originally based in Capital City. After sustaining in the business for a long time, the company has moved to open offices in two new locations namely Lakeside and Mountainview. The company is dedicated to provides placements to job seekers while at the same time keeping in mind the best interests of the clients’ who require manpower. By staying in the business of staffing solutions, they are trying to match a demand supply gap for employment that exists from time to time within the economy (StilSim Personnel, 2007). SWOT Analysis Strengths StilSim Personnel has been in the staffing solutions for over 25 years. So naturally, it can be estimated that at least as of current scenario they still have some faithful and loyal customers in the market. StilSim Personnel boasts of a strong customer service, which helps them in maintaining in steady flow of returning customers. Weakness Decline in profits and monthly performance statements affecting the company’s top line growth and overall performance of the company as compared to others in the market Fighting within employees, cold tensions existing among employees thereby leading to low employee morale and affecting company motivation A strong sense of over confidence exists with the Customer Service, which the company provides to its customers Opportunities In the age of today’s fast changing business environments, big corporations are increasingly looking for temporary staffing of their variable demands. They don’t want to retain employees for the long run, when the demand for manpower is low and so is very much in favor of temporary staffing. As of today’s date, 90 % of the corporations and enterprises, big or small are looking into temporary staffing to fill up their variable short time manpower needs. Though, StilSim Personnel has a division to deal with temporary staffing, but taking the business on the internet and integrating the temporary staffing division on the worldwide web will help the company to meet the demands of big corporations, while being able to show an impressive performance in the monthly performance statements. Also, taking into account the increasing needs for temporary staffing, the StilSim Personnel should also consider opening temporary staffing divisions in the other two offices like Capital City and Lake Side besides Mountainview as well Registering and maintaining memberships with conventions like Staffing World as well as encouraging employees to go for CPC certification programs, in order to better understand and cater to the current trends and needs in this industry. Threats As mentioned and identified by Bill Simmons, the change in industry’s way of doing business in this segment. Failing to move on by keeping up with the change will pose a potential threat to the organization from other competitors. Potential competition arising from statewide companies, who are mostly operating on a local note. Competition from Don Wilson’s newly started company, specializing in healthcare positions, who was an ex-employee of StilSim Personnel. Probable competition that might arise from large internet based companies in due course of time. Strategies For implementing a learning culture and development within the organization, Grove’s Strategic Visioning Model should be implemented. Implementing this model in the organization will not lead to a change of mission and values that the organization follows, but may meet heavy resistance among the employees as most of them are complacent for getting into a learning mode. For going into direct integration of temporary staffing solutions with the internet, market development from Ansoff Matrix’s strategy should be followed. The integration of the temporary staffing solutions over the internet is very much essential as the temporary staffing solutions are mostly required by most companies and for this, the companies do not require quality employees. So this is, as a consequence, is in direct collision with the Mission that the company follows. Balanced Scorecard A balanced scorecard based on strategy comprises of an enterprise’s development through successful strategy design and implementation. It also helps in identifying the service development process efficiencies, improved values for the stakeholder and the related financial outcomes (Montgomery & Perry, 2011). A balanced scorecard generally uses four different perspectives – Financial performance, stakeholder’s perspective, organization’s core competencies and finally growth and change factors. Financial Perspective: Every business is viewed by the investors, analyst and even the owner as a mechanism for generating return on investments. So, as a matter of fact, it is very essential to hold a strong financial performance while being in the business for delivering value to the customers. In the case of StilSim Personnel, having a positive revenue flow is very essential. This point will be brought into focus through the application of strategy based balanced scorecard which will in return will to some extent benefit the financial position of the company. Stakeholder’s Perspective: Big corporations and even small and medium enterprises are all in the business of generating and delivering values to the customers by offering their products or services, either to big businesses or even to individual customers. Stakeholders, in today’s world represent the customers in a huge way as the free flow of information over the internet has finally passed on the power to the buyers’ as per Porter’s 5 forces model. So, in order to stay competitive with an increased competitive advantage in the open market, it is very essential for the company to diversify and integrate its temporary staffing solutions with the internet. Organization’s Core Competencies: This is one of the most highly important aspects of the balanced scorecard which is applicable for any business. The organization’s core competency means that the company’s business offering and solutions should be in line with its competencies. Diversifying away from its core competencies has always in most of the cases has promoted a negative impact upon the organization’s financial and operational performance. Growth and Change Perspective: This is one aspect which every organization today has to pay attention to, if they prefer to stay in the business ahead of its competitors, with a significant amount of competitive advantage. The ability to grow and change with time, as per the industry demands is one of the most key and essential factors that today’s organization needs to hold on to. In this case, the employees of the company’s employees should be more encouraged to go into a learning mode through attending of seminars and international conventions in order to acquaint themselves with the latest happenings and trends and patterns in the industry. BCG Matrix Figure 1: BCG Matrix In the BCG Matrix, taking into consideration that StilSim is offering two different kinds of services – temporary and permanent staffing, the temporary staffing solutions is placed in the Question mark segment, which represents low market share but high growth rate. The permanent staffing solution is being placed under Cash Cow segment, which represents high market share but low growth rate. Recommended Strategies In order to implement a change in the attitude of the employees and bringing in a development of performance of the organization in terms of profits and revenue, it is advisable to implement the Grove’s Strategic Visioning Model. Grove’s Strategic Visioning Model comprises of: Preparing Exploring and Learning Agreeing on current realities Opening to a vision Creating new strategies Implementing this strategy within the organization will bring some motivation among the employees to opt for CPC certifications as well as attend various conventions like Staffing World which will help in getting inputs of the industry trends and patterns existent at this time. This will generate a sense of implementing a change in the business process throughout the organization in order to adapt itself to have a significant competitive advantage. Strategic Objectives Strategic objectives include a host of organizational processes which are mostly designed and pushed forward from the top management. Successful implementation of the strategic objectives requires a trickledown effect from the top and in this case should be highly effective, if pushed forward by Bill Simmons. Estimated market share of temporary staffing segment: 20% of the entire market segment within 2 years. Development of New Services: Integration of Temporary Staffing Solutions with the Internet. Financial Performance: Reducing expenses and developing profit Human Resources: Encouraging existing employees to follow a mode of learning culture and opt for CPC certifications. Conclusions As a part of the go to market kind of a strategy, it is highly advisable that the company opts for integration of the temporary staffing solutions with the worldwide web. And also extend the operations of temporary staffing solutions to the other branches in due course of time. This is highly applicable in this scenario as the trend today is minimizing overhead costs of businesses and employing manpower only when required. As a part of the corporate strategy, it is advisable that the company encourages its employees to participate in learning and development processes of the industry in order to provide insights in the delivery of service offerings of the company, which will be more in line with the current trend of the industry. References: StilSimPersonnel. (2007). About Us. Retrieved from http://video.franklin.edu/Franklin/BSAD/495/StilSim/index.html# Montgomery, D. & Perry, G. (2011). Building Innovation Into Your Strategy. Retrieved from http://www.balancedscorecard.org/portals/0/pdf/build_innovation_into_your_strategy.pdf Read More