The Demand for Human Resource Training Services - Coursework Example

Capstone Paper Table of Contents A.Executive Summary 3 B.Company Summary 4 C.Market Analysis 10 E.Implementation Strategy 16 E1. Overall Strategy 16 E3. Control Plan 18 A. Executive Summary A1. Business Identification The demand for human resource training services is rapidly increasing in this century when companies are striving to achieve quality management for organizational growth and sustainability. Cypress Workforce Trainers is a public limited company created to provide workforce-training services to both employed citizens and fresh graduates. The company will be headquartered in Brooklyn, New York City, in the United States of America. The business will operate under the education services industry, but concentrating on employee training and development. The primary objective of this business plan is to describe the company, present the market analysis, highlight the market strategy, and define the implementation strategy. The marketing plan will also present financial statements and projected financial report for the first year of operation. A2. Mission, Goals, and Objectives The mission of Cypress Workforce Training is to take a unique and innovative approach towards providing educational services that help employees and fresh graduates connect their classroom education to workplace requirements. The primary goals of Cypress Workforce Training are: 1. Promotion of social, economic, technological, and industrial fulfillment for personal development 2. Ensuring that employees are equipped with skills for social equality and responsibility 3. Enabling both current and prospective employees to appreciate and adjust to rapid changes in the modern workforce without compromising productivity The objectives of Cypress Workforce Training include: 1. To provide high quality, experienced, and professional workers to business entities that currently rely only on the formal academics, and are spending excessive resources to train employees for short-term contracts. 2. To provide workers with a roadmap to their career growth and development without having to rely primarily on academic credentials 3. To make the workforce a place where both the employer and employee are dedicated towards achievement of quality productivity A3. Keys to Success 1. Cypress Workforce Training intends to develop methods of approach that links workplace requirements and classroom teaching particularly in solving ethical dilemmas and dealing with cultural and behavioral diversities. This is critical to the success of the business because employees will develop self-adjustment mechanisms to enable them fit into the workplace regardless of widespread diversities. 2. The company will create effective marketing strategies that can reach as many people as possible. Reaching a variety of people will increase demand for the company’s services. Cypress Workforce Training will benefit from increased number of customers in terms of profitability and sustainability. 3. Listening to the requirements of the clients and striving to institute their needs and proposals into training programs will be vital for the success of the business. Success of the business is founded on principles of quality service provision. Quality implies tailoring the services to meet customer satisfaction. This implies that the institution will operate in accordance to the customer demands. Meeting customer needs and requirements will guarantee business growth and sustainability. B. Company Summary B1. Industry History Cypress Workforce Trainers will work under the industry of education services. Workforce training was recognized as one of the critical elements of success in human resource management during the industrial revolution. Countries that were undergoing industrialization recognized the necessity of extensive employee training for purposes of enhancing productivity. During the Age of Enlightenment, elites identified education as a critical component of producing future leaders and effective managers to manage their businesses that were rapidly undergoing growth (Curran, 2011). Most of the citizens emphasized on education and training until basic education became compulsory for all citizens. During the 1980s, concerns about American competitiveness forced several United States based companies to show new interest in education and training for both children and companies’ employees. Children were taught basic literacy skills and arithmetic so that they could understand workplace problems and develop the ability to communicate with the other workplace publics (Curran, 2011). The emergence of quality management gurus further stressed on the necessity of workforce training in realizing quality productivity. Deming, for example, argued that firms should institute modern methods of on-the-job training an. According to Deming, training ought to be structured and centered on clearly defined concepts of acceptable work (Evans & Lindsay, 2002). Philip Crosby pioneered supervisor training during early stages of their recruitment and use of statistical methods to analyze whether training has been completed successfully. Cypress Workforce Trainers is permanent placement personnel agency that intends to work solely with skilled and professional workers. Cypress Workforce Trainers differs from other temporary and permanent placement companies because it concentrates on ensuring workers are effectively trained before giving them out to prospective employers. The company believes that most human resource agencies pay little or no attention to providing to providing employers highly qualified workers for permanent and temporary positions (Evans & Lindsay, 2002). Cypress Workforce Trainers targets to train supervisors, managers, and operation level workers so that they can acquire skills related to computer operations, planning events, graphic production and training the trainees. B2. Legal Form of Ownership Cypress Workforce Trainers will operate as a public limited company. The promoters made a decision to register the company under public limited companies because of several benefits that accrue to such companies. Promoters decided to register the Cypress Workforce Trainers as public limited company because it protects members from losing their personal property in the event of the company going bankrupt. The limited liability clause of the company is based on the fact that a registered company is a different person altogether from the subscribers to its memorandum and its other members implies that the debts of the company are the debts of its members (Nockleby, 2012). The creditors, therefore, do not have the right to confiscate the property of individual members of the company to recover their money (Eck & Roelofs, 2011). The second benefit that made promoters to choose operating as public limited company is perpetual succession. Perpetual succession denotes the process whereby the company’s membership changes in a definite order as prescribed by the articles of the company; this goes on for indefinite period of time until the company is liquidated (Reuting, 2008). Perpetual succession is possible among public limited companies because a company is a separate entity from its persons, thus, the company’s legal life cannot be terminated by member’s death, bankruptcy or insanity (Reuting, 2008). Other benefits of operating as public limited company include right to sue and be sued on its own name, right to own and dispose of property, access to a large pool of capital and access to experienced and competent pool of management professionals. B3. Location and Facilities Cypress Workforce Trainers intends to establish its headquarters in Brooklyn, New York City. The total population in Brooklyn was 2,592,149 by the end of 2013. Brooklyn is the most populous borough of New York City and the second largest in the area. Brooklyn would rank the most populous city in the US if it were an independent city. The job market in Brooklyn is driven by the performance of the national economy, the position of the borough as the convenient back office for New York’s business, and constant population flows (Toibin & Cusack, 2010); these three features characterize Brooklyn, making it the most convenient location for the company’s operations. Brooklyn, in recent years, has benefited from a steady influx of financial back-office operations in the city of Manhattan, DUMBO’s rapid growth of high-tech and entertainment, and a rapid growth in support services such as computer services, accounting, and personal supply agencies. The labor market in Brooklyn has also undergone rapid transitions. Traditionally, jobs in Brooklyn concentrated on manufacturing sectors; however, Brooklyn has adopted a service-based economy representing a shift from a manufacturing-based sector (Toibin & Cusack, 2010). Service sectors require extensive training in order to rhyme with the dynamics of the modern workplace. Brooklyn is also linked to extensive public transit. Eighteen New York City Subway lines traverse Brooklyn; residents travelling to and from Manhattan use Franklin Avenue Shuttle. The major stations in Brooklyn include Barclays Center, Metro Tech and Stillwell Avenue. Client companies willing to sponsor their employees can easily access the Bromley borough through these transport networks. Similarly, private candidates can drive or use the buses to and from Brooklyn without straining with logistical issues. The laws and regulations that will affect the operations of the company include the Companies Act and Sarbanes-Oxley Act of 2002. The companies Act specify the general duties of a director to include promoting the success the success of the company, not accepting benefits from third parties, and declare interests in proposed transactions (Hamilton, Trautmann & United States, 2002).Sarbanes-Oxley Act of 2002 was enacted to enhance the standards for all United States management boards and public accounting firms. The law requires the top management to individually certify the accuracy of the financial information. The law also institutes more severe penalties for fraudulent financial activities. Cypress Workforce Trainers will need to hire employees; therefore, the company will have to abide by various US legal and safety requirements. The United States Department of Labor, the US Equal Employment Opportunity Commission, the Department of Homeland Security, and Americans with Disabilities Act of 1990 define the main legal requirements that the company needs to abide by in order to ensure employee safety. The legal, safety, and regulatory requirements are implemented to ensure equality and fairness in organizations (Cihon & Castagnera, 2011). Operating a human resource training company will require Cypress Workforce Trainers to buy a transport bus for the staff and for subscribed trainees. The company will need a rented building where trainees will take their lessons. The company will need computers, chairs, and tables for trainees. The number of trainers hired will depend on the number of trainees available at a specific time. B4: Management Structure The company’s management will comprise of the Chief Executive Officer, the directors, personnel manager, accounts clerk, and marketing manager. The Chief Executive Officer will be responsible for general administrative functions such as planning, supervision, staffing, coordination, and acquisition of office equipment (Schermerhorn, 2013). Directors will coordinate with the CEO in policy making and planning to ensure that the company’s performance is in line with the strategic objectives. Personnel manager will deal with activities related employee training and development such as developing programs for training, curriculum monitoring, and liaising with client companies to identify skills needed by their workforce in order to design relevant learning content (Schermerhorn, 2013). The accounts clerk will be responsible for receipts and payments of money, and also safe-keeping the books of accounts. The marketing manager will organize activities related to sales of the company’s products. The manager will have a team of marketers, who will be performing the actual field sales in order to enhance the company’s publicity. B5. Products and Service Cypress Workforce Trainers intends to offer reference-checking, skills evaluation, and screening for prospective employees. Reference checking will constitute recruiting while skills evaluation will involve the interviewing processes to determine whether the prospective employees are suitable for the positions. Cypress Workforce Trainers will conduct regular training of employees. Employees can register at the institution at the institution as individuals or they can be sponsored by the company. The process will involve Cypress Workforce Trainers checking with the supervisor of the client companies to find out if there are any training requirements within the company. The company will actually act as an extension of the client business human resource department to assure the client that employees will be trained, evaluated, screened, and selected based on their performance. Cypress Workforce Trainers is uniquely positioned to maximize the opportunities of human resource training opportunity because of the company has highly qualified trainers and field expertise. The company recognizes that current labor market is highly dynamic due to rapid changes in labor conditions and requirements. There is an urgent need to provide a complex blend of services to distinct populations of the labor force. The company strives to equip the workforce with knowledge and skills concerning the current labor markets and their positions depending on their professions. Cypress Workforce Trainers intends to serve employees through connecting them with businesses and ensuring that they are suitable human resources for their interested professions. The end result of the training will constitute a certificate offered to the trained employees. The certification will bear the name of the employee trained, the grade achieved during evaluation, the name of the institution and the seal of the institution. The certification is beneficial because it will act as a proof of undergoing the training when employers want to confirm if the candidate has underwent any further human resource course apart from academic qualifications. Candidates can decide to perform projects in their places of work, which will be evaluated by the experts from Cypress Workforce Trainers to award further credits. It will be the responsibility of the institution to seek permission for candidates interested in performing the project from client companies. Cypress Workforce Trainers will also seek permissions from other companies to enable t unemployed candidates perform projects in highly professional institutions. This will provide opportunities for individual candidates to acquire project certification in order to compete favorably with their working counterparts. C. Market Analysis C1: Target Market Cypress Workforce Trainers is firm that costs less than other consultants and agencies to provide literacy, practical and long-term workplace skills for its customers. There are several reasons why individuals and businesses may need the services of Cypress Workforce Trainers: current spikes in the workload, business expansions into areas where there is no matching expertise, special events, smaller businesses without trained staff on-hand to complete extra projects, and sabbatical or maternity leaves. Companies need to be guaranteed availability of labor force to assist whenever employers leave the company abruptly. The company targets both employed and unemployed citizens. Cypress Workforce Trainers intends to develop training programs for people aged between eighteen and fifty-five. The courses will be provided for both middle-level colleges and university continuing students, company workers and managers from across the three levels of management. New York City provides the best market for the company’s training services. Cypress Workforce Trainers will concentrate on Brooklyn borough because it has the highest population. Additionally, Brooklyn is adopting service sectors, which require periodical training for workers to equip them with the complex and dynamic labor market trends. C2: Industry Analysis Education industry has witnessed a constant growth over the last six years (Schermerhorn, 2013). The economic forecasters predict that human resource training and financial services will experience the largest growth over the next twenty-five years (Evans & Lindsay, 2002). Most businesses are showing a consistent trend of cutting back on employee training costs due to high expenses; this creates a ready demand for Cypress Workforce Trainers services. Additionally, most companies have short-term contracts caused by seasonal demand for specific products. These companies find it costly to employ workers on permanent basis. Instead, they prefer finding an already trained employee for short-term contracts. It would cost the company huge amounts of finances to employ such an employee. Companies consider the time, energy, and finances required by an employer to train and employ a person for 30-hour. This forces employers to seek services of human resource training agencies since they have the records of all workers including their experience, competences, skills, and knowledge concerning various positions. Schermerhorn (2013) estimates that between 2009 and 2013, more than 50,000 employees and 120,000 fresh graduates sought the services of human resource training agencies. Graduates and employed citizens realized that learning was a necessary input in equipping themselves with the skills of continuous improvement. Companies have shown a trend of selecting people for recruitment based on additional certifications from training companies (Schermerhorn, 2013). More than half of the United States firms have encouraged and even sponsored their employees to acquire Six Sigma certifications. This has become a critical element in the current workplace characterized by widespread desire to achieve quality management across all the organizational functions. Additionally, Brooklyn’s transition from manufacturing-based to service-based economy has led to massive demand for HR training services especially in computer technology, accounting policies, principles and conventions, presentation of financial statements and changes in legal systems of the country. C3: Competitive Analysis Cypress Workforce Trainers achieves its competitive edge through blending program with additional services meant to benefit the employers and employees. The human resource agencies within New York do not pay attention to providing education services to prospective employees. For example, Minnesota Human Resource Facilitators concentrate only on recruitment processes particularly job advertisements, conducting interviews, selection and forwarding them to their prospective employers. Cypress Workforce Trainers will focus on employee training to ensure they have desirable skills for holding various positions that business entities require. Apart from training services, Cypress Workforce Trainers will follow a predetermined procedure when a business is contacted and expressed interest in employee training. The company will be keen in understanding the critical requirements of the client business in order to develop an education plan that meets the requirements of business processes. After the training period, Cypress Workforce Trainers will make follow-ups to find out whether the trained employees maintained the standards of quality and if they apply the skills they acquired during the period of study. The major competitors of Cypress Workforce Training constitute formal institutions of education in Brooklyn and within the country. Universities and colleges train people and equip them with adequate skills, evidenced by awarded certificates, to start working immediately. Colleges and Universities in Brooklyn include LIU Global, Institute of Design and Construction, Brooklyn College, Long Island University and Pratt Institute. Both current and prospective employees may prefer to join these institutions to Cypress Workforce Training. However, these colleges and universities are not interested with the performance of their candidates after graduation; Cypress Workforce Training will always make follow-ups to investigate the performance of their graduates for a period of at least four years after graduation. D. Market Strategy D1: The 4 Ps The 4Ps of marketing refer to product, place, price, and promotion and they aim at positioning the right product in the right market at an affordable price using efficient techniques of promotion. Price is an essential element of the marketing mix because it determines how much consumers will pay for the product. Since the company deals with training of workers, it means that an interested customer will pay a single price for the program. Cypress Workforce Trainers plans to charge consumers an affordable price that is neither high nor low. This average price will ensure that both the elite and the underprivileged members of the society pay an equal price. Since customers will be assured of job using the certificate that they will be given at the end of the training, it means that the training is worth the price. The price is also affordable for companies that may sponsor new and existing employees so that they can undergo the training. Place is the next element of the 4Ps and it determines the point of sale of the product. The company will provide the training service at its headquarters in Brooklyn. This is because the head office will include buildings of classes where the training will be conducted. The organization will also sell its product on the internet through its website. This will enable the firm to attract customers who rely on the internet for all information that they require. The product, on the other hand, is the training, reference checking, screening, and evaluation of skills. The reference checking, screening, and evaluation of skills helps to determine the level of competence of clients. The training, on the other hand, enables the clients to acquire additional skills that help them to undertake the jobs that fit their educational qualifications. Training also helps clients to be up to date in terms of the latest skills that are required in the labor market. Training will also enable prospective employers to equip new and existing workers with the skills that emerge in the market and those that lead to high benefits. The last P in the marketing mix is promotion, which deals with advertising techniques and methods that the organization will use to sell its products to the market. Cypress Workforce will use brochures as a technique of promoting its services. The brochures will be placed at the headquarters of the company in Brooklyn and they will also be distributed to clients during trainings so that they can carry them home and inform others about the organization’s services. Since Cypress Workforce is a new company, it will send salespeople to strategic points in Brooklyn so that they can inform prospective customers about the organization’s services. During the fieldwork, the salespeople will distribute brochures to the potential customers. D2: Price List Table: Price list for Cypress Workforce Item Price ($) Training per person 50 Exam 20 Project 20 Registration 10 Total 100 The price list is a record of items that the organization sells and their values. The price of the whole service is $100 and it includes various items such as registration, project, exam, and training. The training price is the fee that the organization charges for classes and it includes the payments to the instructors. D3: Selling Strategy The selling strategy is the approach that the company will use to provide its services to the trainees who will show interest in the process. The first thing that the company will do is to advertise its services on the internet and through brochures at certain points in Brooklyn. The next thing will be to ask the interested students to fill in their personal, professional, and educational details in the organization’s database. The students will fill in the information in forms and also online using computers. After filling this information, the company’s employees will screen the information within one week to find out the trainees who will have qualified to undertake the training courses. After this, the students who will have qualified will be invited for interviews in the following week. During the interviews, the interviewing panel will screen the candidates to ensure that they have the desired skills. The screening will involve checking the education level of the students and ensuring that they have a diploma, degree, or other higher education qualifications. The last thing after the interviews will be the intake process that will involve admitting the trainees who will have qualified to be trained by the organization. The trainees will be guided around the school so that they can familiarize with the environment and so that they can know their classes and teachers. This will be done in one day to avoid wastage of time. The trainees will then begin their classes immediately after the intake process. The organization will also conduct sessions for the trainees where they will meet with prospective employers who will screen them and offer jobs to those who will please them in terms of skills, qualification, and education level. These sessions will last for three months, and after this period, the organization will offer the trainees certificates that they can use to be promoted in their current employments as well as get jobs in future opportunities. Those who will receive the certificates are those who will have passed the evaluation test that will be done after the classes. The certificate will contain the name of the college, that of the students, and the qualification that the student will have acquired. Once the organization has completed training students in the first three months, it will begin the advertising and intake process again so that new students can join the college. D4: Sales Forecast The sales forecast is the estimate of the amount of revenue that the company expects to achieve every month during the first year. E. Implementation Strategy E1. Overall Strategy The management intends to adopt the apprentice model as a strategy for the implementation of the business. An apprentice model requires proper understanding of the industry in which the business will operate. Through gaining a proper understanding the industry, the company’s promoters will be able to handle the company’s logistics and manage contingent issues to ensure successful implementation. The second strategy involves knowing both present and future markets. The company will conduct research and acquire experience to help the management learning all aspects of the market including competitors and customers. Research will involve understanding the critical metrics of the market. This will enable the company to approximate the number of trainers to hire, amount of space to hire, and number of seats to place for expected trainees. A description of potential customers and their consumer behaviors will enable the management to identify the possibilities of success or failures. The company will perform a thorough research to find out who they will be, what factors will drive their purchase decisions, and how the company will differentiate its products from that of competitors in order to convince customers to value the company’s services. The company will hold a launching ceremony and invite human resource managers from both local and cross-border companies. The leaders of various companies operating in the US may attract media attention, leading to publicity. Publicity will constitute a non-personal form of demand stimulation that is actually not paid for by the organization. As CEOs, managing directors and managers of various companies deliver speeches; the media may air them in form of news. The news will cover the company’s brief history, services, and operations. This will enable potential customers recognize the company, and possibility seek its services. The company will rent a building in Brooklyn, New York. The building will constitute classrooms and offices from where the company will offer its services. E2. Implementation Cypress Workforce Trainers plans launch the business on July 2, 2014. Between June 1, 2014 and June 30, 2014, the company will engage in widespread pre-launching activities. The pre-launch strategies the company will consider include opening a social media page for the company, blogging, sending salespeople to strategic points in Brooklyn to distribute brochures, and hanging banners at the crossroads. The promoters of Cypress will visit various invitee companies to confirm the attendance of the guests; this will take place between June 5, 2014 and June 20, 2014. The table below summarizes the company’s objectives/goals, measurement activities, and duration of measurement. Objective/Goal Measurement Activity Date/duration To provide high quality, experienced, and professional workers to business entities that currently rely on the formal academics, and are spending excessive resources to train employees for short-term contracts. -Making follow-ups to identify the performance of trained workers in various places of work -carrying out periodical evaluation of trained workers to assess their potential and continuity of living up to the knowledge from the training Semi-annually Annually To provide workers with a roadmap to their career growth and development without having to rely primarily on academic credentials -Monitoring career development of the institution’s beneficiaries to identify their progress on their career paths Annually To make the workforce a place where both the employer and employee are dedicated towards achievement of quality productivity -Doing surveys in companies where the training beneficiaries are posted to find out the extent to which they are contributing towards quality management Quarterly (after every three months) E3. Control Plan Variable Measurement Activity Indicator of Improvement Employee performance Knowledge application -Making follow-ups to identify the performance of trained workers in various places of work -Carrying out periodical evaluation of trained workers to assess their potential and continuity of living up to the knowledge from the training The number of awards that an employee has received due to improved performance Management recommendations on the ability to apply the knowledge from the training to practical situations Career development -Monitoring career development of the institution’s beneficiaries to identify their progress along their career paths Beneficiaries having advanced in the careers in terms of achieving higher levels in the academic ladder Contribution to quality productivity -Doing surveys in companies where the training beneficiaries are posted to find out the extent to which they are contributing towards quantity production and quality management Results from worker analysis showing increased quality and quantity of productivity G1: Summary of Statements The company will earn revenue from the training courses and also from other activities such as renting out of the school motor vehicle. The company assumes that the other incomes will vary while the income from training will be constant in the first two months and then increase by $3,000 every month. The payroll is also assumed to increase beginning from the second month because the company prospects that the number of students will increase in March. The increase in the students will be a result of the intense marketing and advertising that will consume higher funds in the first half than in the second half of the year. Other expenses such as rent, repair and maintenance, interest, insurance, legal expenses, and miscellaneous will be constant during the year. The profit and loss statement indicates that the profit of the firm will start increasing from February to December. This is despite the fact that the company’s expenses will also be rising at the same time. G 1a: Breakeven Point The breakeven point of the organization is that point at which the company does not incur a loss and at the same time it does not earn any profit. Therefore, the company needs to determine the number of units that it will produce and reach the breakeven point. It is after this point that the organization will start making profits. Breakeven number of units = Fixed Cost/Price – Variable Cost per Unit The breakeven in this firm occurs when the cumulative revenue equals the cumulative expenses for the whole period. Since cumulative revenue and cumulative expenses of the breakeven are equal, it means that the ratio of cumulative revenue/cumulative expenses is 1. Therefore, from the ratios of the cumulative revenue and cumulative expenses, it is clear that the organization will experience a breakeven between March and April. In March, the ratio of cumulative revenue to cumulative expenses is 0.99 while in April it was 1.12. G1 (b): Financial Position At the end of the first year, the organization will have a total of $150,000 of owner’s equity and assets such as computers worth $4,000, land and buildings worth $50,000, and furniture worth $20,000. The remaining amount of investment of $76,000 will be held in cash. These assets are equal to the total amount of equity and debt that the company has borrowed for starting the company. The total profit for the whole year of $279,885 will also be included in the organization’s assets at the end of the year. This profit will be held in form of cash at bank and it will increase assets to a total amount of $429,885. The profit will also increase the owner’s capital by $279,885. This will lead to a total owner’s equity of $329,885 ($50,000+ $279885). The owner’s equity and the $100,000 loan will lead to a total finance of $429,885. This is equal to the value of the total assets of the organization. G1 (c): Capital/Investment Needs The organization requires a capital of $150,000 that will be used to purchase assets such as furniture, land and building, and computers and software. This capital will also be enough to cover the expenses of the first three months then after that the company will use the earnings that it will get from training to pay for costs. The capital will comprise of a debt of $100,000 and owner’s capital of $50,000. The debt will be repaid with an interest rate of 3% on the total amount of borrowing. References Cihon, P. J., & Castagnera, J. (2011). Employment & labor law. Mason, OH: South-Western Cengage Learning. Curran, A. S. (2011). The anatomy of blackness: Science & slavery in an age of Enlightenment. Baltimore: Johns Hopkins University Press. Eck, G. C., & Roelofs, E. R. (2011). Ranking the rules applicable to cross-border mergers. European Company Law, 8(1), pp. 1-9. Evans, J. R., & Lindsay, W. M. (2002). The management and control of quality. 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