Draxler Recruitment Business Strategies - Example

Draxler Recruitment Business Plan Presented by: Presented to (Tutor): Course: Date Executive summary This business plan is intended for Draxler Recruitment, a recruitment and placement company based in UAE. UAE is leading economy in the Middle East with a GDP of $ 377 billion for the year 2012. The economy was largely backed by oil exports before the country’s leadership started pursuing multidimensional growth in several sectors including hospitality, real estate, financial services, tourism and trade. the result is increased demand for skilled and unskilled labour to fill up positions in the new industries and homes of nationals and expatriates all who enjoy relatively high standards of living and high disposable income. these creates a need for recruitment and placement business to source for labour abroad and meet the needs of UAE as it seeks to grow its exports and attract more foreign currency into its economy. There is extensive competition in this area but with clear market segmentation to focus on a market niche, it is possible to gain a share of the marketing share. Draxler will seek to concentrate on recruiting middle and low tier candidates for jobs, a segment which is a very neglect by the current big players in the market but very vital for the businesses, homes and the country as well. 1 Opportunity analysis 1.1 Recruitment and Placement Agency opportunity UAE was projected into the global highlight after the discovery of vast reserves of crude oil and its commercialization towards the mid 20th century. Since then the countries economy has been growing steadily to make UAE one of the wealthiest nations and with very high standards of living. However, the high growth rate did not go hand in hand with development of skilled labour, necessitating the need to outsource from other developing and developed nations. There is a wide array of jobs available in UAE according to the Ministry of Foreign Affairs – UAE. There is a very high demand for skilled professional in UAE. The country is in need of engineers, factory workers, hospitality workers, accountants and construction workers and even more. UAE accelerated at a very high speed into a major global economy. Semi skilled workers are also in high demand as lifestyles improve for citizens and rich expatriates, who need such workers as cooks, drivers, security guards and gardeners. Getting qualified employees is critical to the success of the established businesses. Most companies don’t get it right always and employment agencies come in to solve the problem for companies. Individuals also don’t have time or the knowhow to get house workers too and thus need someday to do it for them. This presents a wonderful opportunity for an agency since an agency will be better equipped in terms of technical knowledge, expertise and resources to look for qualified individuals all over the world according to the employees’ specification and at affordable prices. Starting such a business is not as expensive since only a few assets and employees are required to run the business. The UAE government is not hostile towards such businesses provided they follow the laid out procedures and regulations regarding such undertakings. The supply side of the business is also promising since many young people are graduating from colleges and universities from the developing nations in Asia, Africa and parts of South America. The fact that their economies don’t offer much in terms of employment opportunities means these educated and skilled people will be more than willing to take up jobs in UAE. Quality of the skills they posses may be the limiting factor in relation to the abundance of the workforce. Highly skilled workers such as engineers from developed world are much sought after for the real estate industry in UAE which is currently doing very well. 2 Analysis of the context 2.1 Politically UAE is a politically stable federation of seven emirates whose leaders form the Federal Supreme Council in charge of legislative and executive affairs of the nation. In a region known for hostile political situations and intolerance against foreigners, UAE remains like an island with a very accommodating attitude towards foreigners in areas such as real estate investment, trade, tourism, academia and more. As such the environment is conducive for business as the policy framework of the country is tilted towards making the country a regional hub in many areas such as transport, financial services, manufacturing, and research and technology development. As such a business promising to help the country acquire qualified people and abundant workforce to realise its dreams, is very much welcomed. 2.2 Economically UAE is a leading economy in the world ranked 2nd after Saudi Arabia. The GDP for the year 2012 stood at $377 billion. The country is currently ranked 23 on the ease of doing business list out of 189 countries. The parameters are usually based on economic growth and regulatory environment. With a positive growth rate of 4% in 2013, this is definitely a good country to put investment in. 2.3 Socially UAE is a predominantly Islamic and Arabic state, most foreigners find it a bit hard to adapt to the nationals way of life as they may not themselves subscribe to the national religion and also they may not be familiar with the language. Sourcing for labour needs to consider such realities as the need to ensure workers and their employers relate well and understand each other is very important as far as achieving the end goal of the employment is concerned. However, as compared to other Arabic nations, UAE is very much accommodative of foreigners and its citizens are by far much exposed to cultures of the world especially western culture. 2.4 Competition There are numerous recruitment and placement agencies in UAE. Some are fraudsters operating mainly on the internet. These agencies may not really give employers the kind of people they are looking for. Others prey on unsuspecting job seekers to swindle them of their money and leave them stranded in UAE. All the same there are reputable recruitment and placement agencies such as Charterhouse Middle East, ABC recruitment. These companies have wide experience and extensive networks which make them quite formidable rivals in the market. The businesses have been able to integrate information technology in their operations to allow for preliminary short listing using basic tests and aptitude tests. The online applications make it simple for expatriate workers to seek employment conveniently and at reasonable costs. This gives such firms a competitive advantage even though generic in the market where everybody is headed the same direction. 3 Business description 3.1 Company overview Draxler recruitment will be based in Dubai-UAE serving the city and its suburbs. The company will concentrate on recruitment and placement of low tier company employees such as drivers, messengers, factory workers, machine operators, retail stores attendants, restaurant staff and more. 3.2 Company ownership Draxler will be a fully registered, privately owned business, owned and operated by three founding partners who will contribute capital equally and engage in the management actively. Our mission is to provide high quality recruitment and placement services for middle and low level tier jobs at reasonable prices Our vision is to be a leading recruitment and placement firm in UAE Our objectives include but not limited to; To recruit qualified and skilled individuals for well paying decent jobs in UAE To supply our clients with the best quality of prospective employees just as they have specified Take part in training successful candidates in a bid to improve their attractiveness in the job market. 3.3 Management As a start-up business, Draxler will be managed by a team of three individuals who double up as the owners of the business. The three will divide their roles into three core functions; Marketing manager will deal with the sourcing for clients, business manager will oversee functions such as proper accounts books, costs management, competitor analysis, quality management and such issues, recruitment manager will deal with supply side of the business involving acquisition of qualified persons for placement. 3.4 Market positioning Draxler recognizes the fact that this tier of employees is equally important just like the top executives in a company framework. Draxler then comes in to offer expertise and professional recruitment practice in this area which is not very much considered by established agencies. This meets the needs of employers to find hardworking, committed and skilled workers at this important section of businesses. 3.5 Services Draxler will recruit, train and do placement of employees on behalf of our clients. A client may offer to do training by themselves but the initial screening process will be done by Draxler to ensure high standards of employees that the company hopes will put it into a favourable competitive position. 3.6 Target market Our target market will mainly be composed of small and medium sized businesses engaging in manufacturing, retail and service sector. We shall also cater for households that wish to employ people as drivers, gardeners, cooks and other household jobs. 3.7 Competitive advantage Draxler will specifically deal with recruitment and placement of low tier employees who participate in jobs that require specific skills vital to businesses. These employees include messengers, drivers, machine operators, cashiers, factory workers. Many agencies focus on recruiting top executives leaving such workers to be recruited by incompetent agencies that end up frustrating employers. Draxler will inject professionalism and technical expertise to ensure competent people are recruited for these positions. This will be the company’s competitive advantage. 4 Financial plan The initial capital of $ 20,000 will be provided by the three founders of the business. Everybody shall contribute equal an equal share to the capital which will in tern determine their equal shareholding. 4.1 Balance sheet Draxler Recruitment Balance Sheet as at Commencement Date ASSETS US$ LIABILITIES US$ Fixed assets Capital Equipments 10,000.00 Owners equity 20,000.00 Furniture & Fittings 5,000.00 Long term Liabilities Total Fixed assets 15,000.00 nil Current assets Bank: 5,000 Total assets 20,000.00 Total capital liabilities 20,000.00 4.2 Profit and Loss Account Draxler Recruitment Trading and profit and Loss Account For the 2 consecutive years ending 31st October Respectively Year 1 Year 2 US$ US$ Sales 15,000.00 25,000.00 Direct cost of sales 5,000.00 6,000.00 Gross Profit 10,000.00 19,000.00 Less Expenses: Transport 800.00 1000.00 Electricity & water 200.00 350.00 Internet Charges 100.00 100.00 Rent 800.00 800.00 Stationery 100.00 110.00 Registration/licenses 200.00 200.00 Repair & maintenance - 100.00 Telephone 100.00 100.00 Advertising 900.00 1000.00 Total Expenses 3200.00 3760.00 Net Profit 6800.00 15240.00 4.3 Sales forecast for the first three years 4.4 Cash Flow Draxler Recruitment Pro Forma Cash Flow For The 2 Consecutive Years Ending 31st OCT 2015 Year 1 Year 2 US$ US$ Cash Received 20,000.00 Cash Sales 15,000.00 25,000.00 Expenditure 3,200 3,760.00 Additional Cash Spent Purchase long-term assets 15,000.00 Net Cash Flow 16,800.00 21,240.00 4.5 Three year balance sheet Draxler Recruitment Balance Sheet for the 3 Consecutive Years Ending 31st October Year 1 Year 2 Year 3 US$ US$ US$ Fixed Assets Equipments 10,000.00 9,500.00 9,000.00 Furniture &Fittings 5,000.00 4,500.00 4,000.00 Total fixed assets 15,000.00 14,000.00 13,000.00 Current Assets Bank 5,000.00 14,000.00 30,000.00 Total Assets 20,000.00 28,000.00 43,000.00 Long term liability Capital Owners Equity 20,000.00 25,000.00 35,000.00 Earning 3,000.00 7,000.00 Total liabilities and Capital 20,000.00 28,000.00 43,000.00 Works Cited Read More