Strategy Analysis of ABC Consultants Pvt. Ltd.

By Group – 4

Shahbaaz Ahmed

Atul Dhaneshwary

Kanika

Swati Sharma

Biprajit Das

Ankit Chaudhary

Industry Overview

• Services constitute a major portion of India’s GDP with a 57 per cent share in GDP in 2013-14

• India has the second fastest growing services sector with its compound annual growth rate at 9% just below China’s 10.9 %, during the last 11-year period from 2001 to 2012, (Economic Survey for 2013-14)

• Consulting - Business of providing advice to firms in trouble, on the move, or trying to do what they do better, faster, and more cheaply.

• Annual growth rate of consultancy services – 30%, progressing rapidly towards becoming a Rs23,000-crore industry by 2015.

• Largest concentration of consultancies in metropolitan cities. (Delhi being the highest -25.7%)

• Major players- HR One, Manpower, Planman consulting, Mancer consulting etc.

Company Overview

• ABC Consultants- Leading executive search & selection firm, pioneer of organized recruitment services.

• Annual Revenue: -INR 100 to 500 Cr (according to online sources)

• Founder & Executive Chairman- Dr. Bish Agrawal (1969), headquartered at New Delhi.

• Managing Director- Shiv agrawal

• 9 Offices in 7 major cities and overseas presence in London & Dubai.

• 290+ consultants with years of experiences in leading national & international companies.

• Senior & middle management recruitment solutions through domain specialist.

• Helped over 350 multinationals to setup & staff their india operations.

• 4 Group businesses- ABC Consultants, FlexAbility (Outsourcing solutions), Headcount (Junior management

recruitment) , Headhonchos.com (Online Portal)

Mission & Vision Statement

• Mission- “Building Careers, Building Organisations. We believe that our success is best

reflected through your success.”

• Vision- “To be the largest domestic executive search firm in India & to redefine middle &

senior level recruitment with our role as trusted consultants for Indian professionals”.

Business Model

1. Who it serves? - Middle & senior management talent recruitment across various industry segments for MNC’s &

Indian business houses.

2. What it provides?-

a) Products- Software development, Database consulting, Infrastructure management.

b) Expertise- Automobile & auto components, Consumer & services, Financial services, Engg., R&D services,

FMCG, IT, Outsourcing, Telecom, Retailing & Healthcare.

3. How it provides?-

UnderstandingMapping

competencies

Search target plans

(Company, People

Mapping)

Final Shortlist Evaluation InterviewsReference

checkPost joining

Follow up

Business Model4. How it differenciates & sustains competitive advantage?-

• Strong relationship with govt. & pvt. sector

• JCCs presence (Job & Career Centers)

• Service projects bundled with hardware sales

• Technical expertise tools & financial resources

5. How it makes money? –

• Products/Services

• Price- Market penetration & Value based pricing

• Place- JCCs marketing team, support teams

• Promotion- Personal selling, Sales promotion

PEST AnalysisPolitical Factors Economical Factors

1. Modi Govt. promised more internal roles & external opportunities in recruiting firms.2. More recruiting companies expected to be opening up.

1. New portal, “Headhonchos.com” launched for senior level recruitment headed by Uday Sodhi.

2. B. P Agrawal set to head “ Stanton Chase India” leading to bigger branding.

Social Factors Technological Factors

1. Platform for hiring talents. Eg.- Approached by upcoming music directors to hire marketing head for them to get lucrative deals.

2. Harpreet Datta, Executive Director & Chief People Officer, won the Woman Super Achiever Award at the Asia Pacific HRM Congress Awards 2012.

1. Joint venture with Manpower to integrate ABC’s verticals (IT, ITes & retail financial services) to Manpower services India.

2. In 2011 ABC Consultants won the “Drive Into the Big League” competition to select an Indian SME that would have its company logo displayed on the Vodafone McLaren Mercedes cars at the 2011 Indian Grand Prix.

Porter’s 5 Forces Model• Existing Industry competitors- Manpower consultants, HR One Management

consultants, Adecco India, AON Hewitt

• Potential Entrants- Shella consultancy, Unio consultants, Ajeets recruitment,

Symmetrical management consulting.

• Bargaining power of Suppliers- Over 350 consultants (Domain Specialist Teams)

with years of experience in leading indian & international companies.

• Bargaining power of Buyers- MNC’s & Indian business houses for hiring middle &

senior management talents.

• Substitute Products- Personal consultancy, Online consulting.

External Factor Evaluation (EFE) Matrix-Opportunities Weight Rating Weighted Score

Increasing trend in IT/IS service market 0.2 2 0.4

Outsourcing to reduce cost 0.2 4 0.8

Client’s staff lacks skills or are under staff 0.1 4 0.4

International vendors need local partners 0.15 3 0.45

Threats

Increased competition 0.1 2 0.2

Global financial crisis 0.05 3 0.15

Mergers & acquisitions of vendors 0.05 2 0.1

Difficulty in finding & retaining skill staff 0.15 3 0.45

Total 1 2.95

Competitive Profile Matrix- (CPM) Matrix-Critical Success Factors Weight ABC Consultants

(Ratings & Weighted Scores)

HR One Consultants Manpower Consultants

Software Development 0.100 2 0.20 3 0.30 2 0.2

Database Consulting 0.175 4 0.70 1 0.175 3 0.525

Infrastructure Management Services

0.100 3 0.30 2 0.20 3 0.30

Customer Relationship management

0.25 2 0.5 1 0.25 2 0.5

Marketing Strategy 0.125 1 0.13 2 0.25 2 0.25

Technical Resources 0.100 4 0.40 4 0.40 3 0.30

Financial Benefits 0.100 4 0.40 3 0.30 2 0.20

Strategic Partnership 0.025 4 0.10 2 0.05 3 0.075

Marketing Share 0.025 1 0.025 4 0.10 2 0.05

Total 1 2.755 2.025 2.4

Internal Factor Evaluation (IFE) Matrix-Strengths Weight Rating Weighted Score

Strong Relationship with Govt. & Pvt. sector 0.02 4 0.08

JCCs Presence across nation 0.02 4 0.08

Partnerships with major players 0.02 3 0.06

Service projects bundled with hardware sales 0.25 4 1

Technical Expertise Pool 0.2 4 0.8

Financial Resources 0.1 4 0.4

Weaknesses

Poor Marketing plan 0.1 2 0.2

Disconnected & Dispersed employees 0.13 1 0.13

Technical infrastructure not ready 0.01 2 0.02

Delays & Gaps in inter department communication 0.15 1 0.15

Total 1 2.92

Value Chain Analysis

• Pre Sales

• Estimation Bidding

• Project Management Installation

• Maintenance contracts

• Customer Relationship Management

Primary Activities

• Infrastructure (General Mgmt, Project Mgmt, Strategic Planning)

• Accounting & Finance

• HR (Recruiting, Training & Development)

• Procurement (Purchase of hardware, services, sub contracts)

Support Activities

VRIN Analysis

Tangible Resources

Rare Valuable Inimitable Non Substitutable

Implications for Competitiveness

Financial No Yes No No Competitive Parity

Organizational Yes Yes Yes Yes Sustainable Competitve Advantage

Physical Yes Yes No No Temporary Competitive Advantage

Technological No Yes Yes No Temporary Advantage

Intangible Resources

Innovation Yes No No No Competitive Parity

Human Yes Yes Yes Yes Sustainable Competitive Advantage

Reputation Yes Yes No No Temporary Competitive Advantage

Recommendations & Suggestions

• Evaluations shows that the ABC initiatives have good potential.

Develop Project plan

Build a Strategic Architecture

Define clear roles &

responsibilities

Define measures &

targets

Implementation for Strategy

Focussed Organization