The Strategy for Industry and Organisation - Research Paper Example

Table of Contents Table of Contents 1 3. Service 3 3.1. Description 3 3.2. Service Features 4 3.3. Service Adoption 5 4. Direction 6 4.1. Mission Statement 6 4.2. Vision Statement 6 5. Strategic Analysis 6 5.1. Market Analysis 6 5.1.1. Market Size 6 5.1.2. Market Trend 8 5.1.3. Market Economics 9 5.2. Competitive Analysis 12 5.2.1. Suppliers 12 5.2.2. Customers 13 5.2.5. Competitors 15 5.3. Environment Analysis 19 5.3.1. Regulatory Influences 19 5.3.2. Economic Influences 20 5.3.3 Environmental Influences 20 5.3.4 Technological Influences 21 5.4. SWOT Analysis 21 5.4.1. Strengths and Weaknesses 21 Strengths 21 Weakness  22 5.4.2. Opportunities and Threats 22 Opportunities 22 Threats 23 5.4.3. Competitive Advantage 23 6.0 References 24 3. Service 3.1. Description An employment placement service involves matching employees to employers. This is the industry in which employment agencies belongs. Majority of the developed countries have publicly financed employment agencies and several private organizations which also operate in the same manner as employment agencies. Discussion about unemployment and more frequently, the jobless people are usually with us. Critical aspects of a person's wellbeing that make the look for work are identity, dignity, personal and family stability, security and income. However, not everybody is qualified to get a decent work. That is where employment agencies come in. According to Ibisworld (2013) employment placement agencies offers outsourced staffing and human resource-based services. This range from the selection and screening of applicants for a single position to the prerequisite of a hole outsourced human resource role including recruitment, continuing training, management and strategy. By outsourcing these responsibilities, clientele can concentrate internal resources on main business functions and access specific human resource proficiency.       One company on focus is an Australian company, Chandler Macleod Group Limited. This company engages in human resource outsourcing, recruitment, managed services and consulting as shown in figure 1. This public Company is ranked 250 out of the 2000 firms in Australia (Ibisworld 2013). The firm generates most of its revenue from the Employment Services. In 2012 Chandler Macleod Group made total profits of $1,549,081,000 comprising of sales and other income (Ibisworld 2013). In the same year the company had 1300 recruits in Australia as well as recruits from every subsidiary under the control of the company. Figure 1: Service share 3.2. Service Features   Competitor     Quality of Services     Timely delivery of services     Technology Adoption     Customer handling services     Effective Policies   Chandler macleod Group Limited  Excellent and good reputation in terms of service delivery  Swift delivery of services  Has adopted current technology in delivering its services  Excellent and good customer service  effective policies and good financial management Hays Specialist Recruitment Pty Limited   Good delivery of services  Delivery of services is not in time  Has adopted technology  Has no excellent services when handling of customers  Has policies Manpower Services (Australia) Pty Limited   Good delivery of services  It has some delays to some extent compared to others.  Has adopted technology  Poor handling of customers  Has no clear policies Figure 2: Service Features 3.3. Service Adoption As mentioned in the 2013 IBIS Report on Australia employment service industry, the life cycle of this industry has attained its maturity stage. This sector consists of selection, personnel search, referral and placement concerning permanent job positions. Services could be made to the prospective employee or the potential employer. Based at the top of industry with a large share of the market, Chandler Macleod Group offers the best services in terms of recruitment, workforce management services and consulting services. The Ibis world (2013) report also observe that Chandler Macleod Group are convenient and timely as opposed to players like Hays Specialist Limited and Manpower Services which have been marred with complaints concerning timely services (figure 2). Chandler Macleod Group policies are regarded the best in the Australian employment placement industry because they consider customer service as the number element of a good business. The company also understand technology is a major element for business to compete favourably (Hitt, Ireland, Camp & Sexton 2002, p.7). Figure 3: service adoption 4. Direction 4.1. Mission Statement Chandler Macleod Group Limited mission is all about contributing to the society by satisfying a demand for professional, specialized and contingent employees (Chandler Macleod 2013). The organization will present employees with a secure and self-determining environment. It will also offer organizations with a desirable quality of worker available for temporary, permanent or a project work. Ibisworld (2013) points out Chandler Macleod Group listen to people demands and tailors employee's solutions for both organizations and workers. 4.2. Vision Statement           The company serves the business customer by establishing a professional employee, screening and interviewing that employee, creating interviews if needed, and managing all hiring official procedure. The company manages payroll and bills for the customer bi-monthly. Chandler Macleod Group will also run the professional, remaining in contact with the customer and communicating with its employee concerning any personnel matters that may come up (Ibisworld 2013). The professional employee is offered job opportunities at no charge; pay rates are carried within sector standards; and health insurance could be bought, if an employee becomes entitled for a group rate. 5. Strategic Analysis 5.1. Market Analysis 5.1.1. Market Size Australia went through the most awful of the global economic crisis with regard to net income levels and job loses. Thus, the impact of the predicament on the Australian employment placement service sector was calm compared with the same sectors in other nations. Unemployment in Australia increased slightly in 2008/09 and 2009/10 and rapidly reversed in the following years, with need for job placement services bounce back greatly in 2010/11 (IBIS World 2013). IBIS World (2013) approximate the industry income is to rise to $2.7 billion by the end of 2013 as shown on the table below (figure 4). Due to unemeplyment that have been witnessed in the recent past, people are been looking for jobs anyway, however, the study shows that most companies that Chandler Macleod Group serve are located in cities duty high popluation. Theferore thir key geographical segments are located at the major business district cities. The company is also doing well in terms of national segmenation. Figure 4: Market size Australia went through the most awful of the global economic crisis with regard to net income levels and job loses. Thus, the impact of the predicament on the Australian employment placement service sector was calm compared with the same sectors in other nations. Unemployment in Australia increased slightly in 2008/09 and 2009/10 and rapidly reversed in the following years, with need for job placement services bounce back greatly in 2010/11 (IBISWorld 2013).       Employment demand continued to be strong in 2011/12. This is projected to have remained constant through to 2012/13. IBISWorld (2013) approximated the industry income to rise by an annualized 4.5% in the past five years throughout 2012/13, to $3.2 billion. This consists of a decrease in 2008/09 of 4.2% and a small increase in 2009/10 of 0.8% (IBISWorld 2013). In 2012, Chandler Macleod Group received 100 percent interest from AHS Services Group Pty Ltd while in December of the same year it received of Vivir Healthcare Pty Ltd. 5.1.2. Market Trend The Australian employment service industry has attained maturity stage of the life cycle. IBISWorld (2013) assessment shows that the sector will expand by 2.4% in the subsequent 10 years, but looks unfavorable compared with the GDP growth of 3.0 percent in the similar period. "Before the global economic downtown, the employment placement service industry gained from the outsourcing trend, a great economy with lower unemployment and a great desire for labor" (Hitt, Ireland, Camp & Sexton, 2002) from the Mining sector along with successful commodities prices. Whilst the sector still grew in 2008/09, it declined in 2009/10 because of growing unemployment and less demand for fresh temporary labor positions (Ibisworld 2013). A large fraction of key companies, that are the major users of the sectors' services, either reduced the employment numbers or kept headcount by transferring employees to part-time arrangements.        IBISWorld (2013) estimates that, by 2016/17 this industry's revenue will attain up to $2.97 billion. Job positions and new recruitment will go up when the economy starts realizing comparatively strong results. Organizations will once more consult employment service providers as their staffing needs get bigger and the right candidate turns harder to get as competition for employees heats up (Chandler Macleod 2013). In the up-and-coming market, Chandler Macleod Group will be targeting both high and non-high technology companies. The high technology organization forms the biggest group of up-and-coming firms; making up to 75 percent of the industry (Ibisworld 2013). Even though majority of the emerging firms are high technology, not all can still offers services that add value for these organization. Figure 5: Martket Atractiveness 5.1.3. Market Economics Some of the major facets in the Employment placement services industry that results to volatility in revenue are economic fluctuations and types of employments (Ibisworld 2013). Dwindling in economic conditions ghave forced companies to downsize their workforce. In these economic times the revenue of the employmmnet placement companies goes down. However, the market is staring to stabilise and demonstrating signs of growth and expansion. However, market profitablity is influenced by segmentation and market share of the last five years. Market donimance by Chandler Macleod Group has worked to its advantage, because of its large customer base (Ibis world 2013). The company is now leading in terms of profitability. Figure 6: market attractiveness With economy progressing and unemployment stays rather low, income growth in employment placement service industry continues to be stronger in 2012/13, with revenue prediction to go up by 3.7 percent (Ibisworld 2013). Although decrease in unemployment have the tendency to lag growth at the time when the economy is rising from a depression, the unemployment structure tends to move towards individuals switching jobs, whilst the percentage of individuals laid off or are most of the time unemployed in fact declines.         Analoui & Karami (2003) claim that some of the major facets in the Employment placement services industry that results to volatility are population growth and economic fluctuations. The industry requires tackling these matters as fast as possible. Hitt, Ireland, Camp & Sexton (2002, p.3) argue that population density has increased the problem of unemployment while getting the right candidates has become difficult  as  institutions of higher learning have been producing half-baked graduates this has been more and more making employment placement agencies re-assess the impacts of skill shortages in the employment industry. Major impact which adds to the profitability of the industry involves market positioning and it is also significant to forecast population growth in terms of those who are graduating every year from institutions of higher learning (Hitt, Ireland, Camp M., & Sexton 2002, p.7). Another issue is having contacts in of the key market players for helping them to identify the right job candidates. For a company like Chandler Macleod Group Limited, to remain competitive it has to enhance its ability to articulate and negotiate well. In a nutshell, an effective communication and interpersonal skills blended with industry understanding are imperative to retain clientele and for interviewing job candidates.        In an open economy with several players like Australia, premium services production, that is, maintaining quality personnel, better service and high degree of client satisfaction is critical in attracting and retaining clients. Even though Chandler Macleod Group limited still dominate the Australian job placement services industry, it should its capability to objectively evaluate latest investments i.e. large and medium companies and acquire them 5.2. Competitive Analysis 5.2.1. Suppliers 5.2.1.2. Competitive Influences        Figure 7: market competition Within this sector there are numerous competitors, only a few are regarded as market leaders. Within this industry there are many services to be offered businesses but just a handful is regarded as competitors of chandler Macleod group limited (IBISWorld 2013). Most of the competitors try to segment their market and different their product as much as possible. Chandler Macleod group limited is on top because of its diversification in employment placement, and its strategies are also strong. In most cases Chandler Macleod Group competitors have expanded in other countries to improve their sales. IBISWorld (2013) reports that Hays Specialist Recruitment has relied in its parent company in UK and its branches in New Zealand to improve their performance. Tailoring its segments to suit most sectors has helped Chandler Macleod Group to remain the market leader in Australia. 5.2.2. Customers Figure 8: customer analysis For the employment palcement servive Industry, the market segmentation is categrized into permanent jobs and temporary jobs. The industry can further be susegemented into whiete colar jobs and blue colar jobs. The customers in this indstry is widely spread all over the country due to the fact that people set companies anywhere in australia. However, it can be said that most companies which Chandler Macleod group serves are largely concentrated in major cities in Australia. The numbers of employees these companies provide to their clients, that is, organizations in need normally vary. Similarly cost charged for different employees vary depending on the skills, knowledge, experience and type of job. Threat of this form of industry is that some organizations have or are establishing their on training programs due to dynamic nature of jobs. If most companies embrace this form of program, most companies in employment placement service industry will go down and may be even forced to close their services. 5.2.2.1. Description The need for employment placement services has the tendency of following the economic cycle, especially escalation in the level of employment and unemployment. At the time when economy becomes stronger and the unemployment is lower, organizations rely on employment placement services to aid in finding apt skilled and unskilled labor (Chandler Macleod 2013). This the time that Chandler Macleod group limited normally makes a lot of its revenue bearing in mind it is the market leader. In the recent past chandler Macleod group limited customers have been the construction industry which is growing very first (IBISWorld 2013). Another sector that the company relies heavily due to demand is the Information Technology sector. As an all-round service oriented company Chandler Macleod group has tailored its service to suit most if not all sectors of economy in Australia. Some of the clients that are served by Chandler Macleod group include Xstrata, Commonwealth bank, BOC, Caltex, AngloAmerican, Westpac and Alcoa among other companies. Xstrata mining company is the biggest client of Chandler Macleod group making 31% of its revenue, followed by Virgin Atlantic 19% and Westpac trailing closely with 16 % of the revenue. The rest of the company revenue is shared between other companies as shown in figure 9. Figure 9: Customer Segmentation/Share 5.2.5. Competitors Figure 10 : competitors share 5.2.5.1. Market Concentration When analyzing the market share and the competitor's ability alignment, Chandler Macleod Group come at the top of the table in this industry with Hays Specialist Recruitment and Manpower Services (Australia) Pty Limited just trailing behind. Randstad Pty Limited comes in the fourth position with a market share of 4.0%. Chandler Macleod Group has had major acquisitions and merger with Forstaff and NCML to become strong and take the lion share of the market.         The major three players competing against Chandler Macleod Group have their mother company in various company that may pump money into their Australian company to top the market share. Since Hays Specialist Recruitment is only trailing Chandler Macleod Group with 0.3% of the market share the company should move with speed to acquire more potential companies in the sector solidify its performance at the top. 5.2.5.2. Competitive Influences Figure 11: competitors position Figure 12: competitors competencies Figure 13: customer key sucess factors Australia Employment placement service Industry has several players which is evident with its maturity in its life cycle. The sector concentration went up in the previous five years through acquisitions by key competitors, including organic growth. This tendency is expected to go on in the subsequent five years as the bigger organizations. The competition has become stiff that if Chandler Macleod Group Limited does not change its strategies it will soon be struggling in the market. IBISWorld (2013) report that there are several employment placement service agencies that is evident because of the prospective large market size existing in this industry which also promising for newcomers.        Chandler Macleod Group Limited faces a fierce competition from other major competitors like Hays Specialist Recruitment Pty Limited, Manpower Services Pty Limited, and Randstad Pty Limited amongst others (Ibisworld 2013). Examining the market expansion in this sector indicates moderate degree of expansion; this is also owing to the life cycle of this sector. Market expansion is apparent as there is a higher demand for services available from inside this sector. However this also implies that majority of the services offered are greatly similar, where majority of the competitors require looking towards service innovation to remain competitive, or undergo acquisition or merger by the leading organizations in this industry. 5.2.5.3. Competitors' Strategies Within this sector there are numerous competitors, only a few are regarded as market leaders. Within this industry there are many services to be offered businesses but just a handful is regarded as competitors of chandler Macleod group limited (IBISWorld 2013). Most of the competitors try to segment their market and different their product as much as possible. Chandler Macleod group limited is on top because of its diversification in employment placement, and its strategies are also strong. In most cases Chandler Macleod Group competitors have expanded in other countries to improve their sales. IBISWorld (2013) reports that Hays Specialist Recruitment has relied in its parent company in UK and its branches in New Zealand to improve their performance. Tailoring its segments to suit most sectors has helped Chandler Macleod Group to remain the market leader in Australia. 5.2.5.4. Key Success Factors There are several main success factors which are reported by IBISWorld, while a large number take place in the industry, there are usually only some which are considered the most significant.  Chandler Macleod Group holds a good reputation in terms of service delivery and good customer service. Its good status has made it to dominate Australian employment placement service industry for quite in the recent times. It's skilled and experience management plays tremendous role for its success through good understanding of the market, effective policies and good financial management (Pinson 2004, p.20).   Has the company forges ahead being update with technology is critical to success. Technology will ensure close contact with graduates and organizations which need its services. 5.2.5.5. Competitor Alignment        When analyzing the market share and the competitor's ability alignment, Chandler Macleod Group come at the top of the table in this industry with Hays Specialist Recruitment and Manpower Services (Australia) Pty Limited just trailing behind. Randstad Pty Limited comes in the fourth position with a market share of 4.0%. Chandler Macleod Group has had major acquisitions and merger with Forstaff and NCML to become strong and take the lion share of the market.         The major three players competing against Chandler Macleod Group have their mother company in various companies that may pump money into their Australian company to top the market share. Since Hays Specialist Recruitment is only trailing Chandler Macleod Group with 0.3% of the market share the company should move with speed to acquire more potential companies in the sector solidify its performance at the top. 5.3. Environment Analysis 5.3.1. Regulatory Influences The general degree of regulation for Employment placement service industry can be regarded medium and stable. Laws that Chandler Macleod Group "need to be watchful of are those regarding workplace discrimination, benefits, working conditions and visa issues and immigration laws for immigrants" (Hitt, Ireland, Camp, & Sexton, D 2002, p.12).  A case on point is when the Federal Government radically tightened regulations regarding the application of the Temporary skilled Work visa and Immigration Act in 2007 (IBISWorld 2013). 5.3.2. Economic Influences As mentioned in most parts of this, this business plan tries to find better strategies to stimulate this company. These efforts are form of macroeconomic impacts, purposely that of employment demands, interest rates, migration levels, labor costs and inflation. The fluctuation nature of employment in the job market has been started by several directors of key industry players as resulted by economic crisis (Honig & Karlsson 2004, p.37). When a company is losses they are likely to lay off people; however when they are expanding employment placement service are likely to take advantage by providing skilled and qualified employees. 5.3.3 Environmental Influences On of factors that influence employment placement business environmental issues. People prefer to live in towns where they can have access to information concerning jobs as quick as possible (IBIS World 2013). Most of the industries in which people looks for jobs established in towns because of the bad weather and poor access during rainy seasons. This makes demand for job opportunity high in cities compared to upcountry. Figure 14: market attractiveness (environmental factors) Societal Influences Some of the societal factors that influence employment placement industry are the human beliefs in employment as source of income, dignity and pleasure. Human being believe that for them to get their daily lively, they must go look for work in which they will earn their income in order to sustain their family. People believe that in order to earn respect have to look for employment which can help him or her take care of themselves and their family. In search for employment, they interact with industry operating in employment placement industry and interact with them. There is also an aging population in Australia retiring while Y generation is looking for work with enthusiacism. The problem with the young people looking for work is that they luck the necessary skills and experience for their careers. This is where employment placement service companies come in to offer these skills needed. 5.3.4 Technological Influences Technological influences in job placement service industry are positive. Many services provided by these affect the companies compete in terms of service delivery and innovation. Most of the company have embraced technology and can now decide to online interview or just keeping close contact with either employee or employer. IBIS World (2013) indicate that Chandler Macleod Group, the leading company in this industry offers innovative services which assist it take advantage of the market share. 5.4. SWOT Analysis 5.4.1. Strengths and Weaknesses Strengths      The company strength lie in its several segments the tailored to suit training employees for almost every sector. The company has established itself as a market leader, therefore identifying itself as a strong brand (Ibisworld 2013). With advanced new technology Chandler Macleod Group will be up to date with its clients making in to stay in race along with its major competitors. Weakness          The company operates in an open economy where it does not have the capability to restrict entry into the market (Pinson 2004). Therefore the market is open for everyone with their own strategies. Chandler Macleod Group may have loyal customers but since it offers services which are similar to other players, this factor could allow customers to try another company. Its competitors have network connections in other countries which could make Chandler Macleod Group expansion invisible (Ibisworld 2013). 5.4.2. Opportunities and Threats Opportunities        As Chandler Macleod Group continues to operate they must take opportunities in the industry in so as to grow. The company has managed to recognize several opportunities that are presently in their favor. Chandler Macleod Group's key objective in few years is to lock financial growth (Ibisworld 2013). These opportunities require to be taken into consideration so as to boost market share accordingly. Particularly the expansion, increased number of companies it provides services to,   and sale volumes tend to go hand in hand with net positive effect (Hitt, Ireland, Camp & Sexton 2002, p.9). This is owing to the reality that sale volumes can eventually go up on account of the other opportunities getting successful.         Expansion, acquisition and merger as earlier mentioned are associated with the reality that Chandler Macleod Group is using platform as growth corridors. Honig & Karlsson (2004, p.37) claim that the baby boomers are going to retirement and Y generation not experienced is coming to employment. As such they need further training before getting into job market, therefore this an opportunity employment placement service companies to train them ahead of providing them with a decent job. Threats       This sector is strongly associated with economic cycle, especially increase in levels of unemployment and employment. As witnessed in 2008/09, a considerable small economic depression can result to a decline in revenue of the industry as clients discontinue hiring, with leading organizations in this employment placement service sector being affected negatively (Ibisworld 2013). 5.4.3. Competitive Advantage Chandler Macleod Group has several competitive edges compared to its competitors. The company has over the past five years had an outstanding segment in Australia market which has offered them the competitive edge than its competitors (Chandler Macleod 2013). Its   acquisition and merger has contributed a lot to its market dominance. Its expansion will in fact make it presence felt in most cities in Australia and beyond. Sustained organization growth in 2012/13 is projected to add to revenue relevant to the industry going up by 6.3%, accounting for nearly 10% of organization owing to continued stable growth, market share expansion in the segment, acquisitions, expenditure controls and enhanced margins (Ibisworld 2013).  6.0 References Analoui, F., & Karami, A 2003, Strategic management in small and medium enterprises. London: Thomson. Chandler Macleod 2013, About Us, viewed on 31st August 2013 http://www.chandlermacleod.com/-223450/ Ibisworld 2013, Employment Placement and Recruitment Services in Australia: Market Research Report, viewed on August 31st, 2013 http://www.ibisworld.com.au/industry/default.aspx?indid=569 Hitt, MA., Ireland, R., Camp, M., & Sexton, D 2002, Strategic entrepreneurship: Integrating entrepreneurial and strategic management perspectives. In M. A. Hitt, R. Ireland, M. Camp & D. Sexton (Eds.), Strategic Entrepreneurship: Creating a new mindset (pp. 1-13). Oxford: Blackwell. Honig, B., & Karlsson, T 2004, Institutional forces and the written business plan, Journal of Management, 30(1), 29-48. Pinson, L 2004, Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Securing Your Company’s Future (6th Edition), Dearborn Trade, Chicago, USA, pp 20. Read More