business plan - strategic resources

8/12/2019 Business Plan - Strategic Resources

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ENTERPENURSHIP AND NEW VENTURES

BUSINESS PLAN FOR STRATEGIC RESOURCES

ASSIGNMENT WORK

SUBMITTED BY:

SALONI MANGLA

MBA (HR)

ROLL NO. A50002012008

SUBMITTED TO:

Mr. Nikhil Kaushik

(FACULTY)(AMITY BUSINESS SCHOOL)

AMITY UNIVERSITY HARYANA

DEPARTMENT OF MANAGEMENT STUDIES

(2012-2014)


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Table of Contents

Executive Summary ...................................................................................................................................... 3

Business Concept ...................................................................................................................................... 3

Company Overview ...................................................................................................................................... 4

Business Description ................................................................................................................................. 4

Business Name ......................................................................................................................................... 4

Mission, Vision and Values ....................................................................................................................... 4

Strengths and Core Competencies ........................................................................................................... 4

Challenges ................................................................................................................................................ 4

Clients ....................................................................................................................................................... 5

Industry Practices ..................................................................................................................................... 5

Functional Practices ................................................................................................................................. 6

Marketing Plan ............................................................................................................................................. 7

Market Description ................................................................................................................................... 7

Market Analyses ....................................................................................................................................... 7

PESTEL Analyses ....................................................................................................................................... 8

SWOT Analyses ......................................................................................................................................... 9

Client Development Strategies ............................................................................................................... 10

Organisational/HR Plan ............................................................................................................................. 11

Structure ................................................................................................................................................. 11

Financial Plan .............................................................................................................................................. 13

Important Assumptions .......................................................................................................................... 13

Breakeven Analyses ............................................................................................................................ 13

Projected Profit and Loss ........................................................................................................................ 14

Projected Cash Flow ............................................................................................................................... 15

Projected Balance Sheet ........................................................................................................................ 15


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1. Executive SummaryBusiness Concept

The concept behind Strategic Resources is to find, convince and place the middle level

and top level executives on the most suitable jobs. Here are some points that will be analyzed:

Strategic resources work for their clients and not for the candidates. Hunter Recruitment will seek a niche in the market that is full of opportunities but still

overlooked by the competition.

Located in a fast growing business area. Middle level and top level jobs. Handle the endtoend recruitment process. Add value to the clients recruitment process.


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2. Company Overview

Business Description

Strategic Resources is a premier Executive Search Firm engaged in search assignments atthe middle and senior level for the corporate clients. The venture is promoted by professionals

from Indias premier engineering and management institutes with vast experience across

functions in diverse industry segments.

Business Name

Strategic Resourcesthe name itself describes the kind of positions the firm deals in.

Strategic Resources handle the executive search projects for its clients. These executives are of

strategic importance to our clients.

Mission, Vision and Values

Mission: To help our clients improve their effectiveness and performance by providing

appropriate people and solutions.

Vision: To be a leading Consulting and Outsourcing firm by offering innovative solutions

and services of high quality through knowledge and value driven partnerships.

Core Values: Our ethics are a critical building block of our business. Our own success is

based on adherence to the highest ethical standards: long-term client relationships, the ability

to identify top candidates for our clients. Protecting the confidentiality and interests of the

client and of candidates is, of course, of utmost importance.

Strengths and Core Competencies

Strong knowledge of a very challenging market. Very promising, nevertheless. We use a proven methodology, inserting our own experience, expertise and

creative thought into each assignment.

Team of seasoned and rigorously trained consultants provides quick, precise anddelightful search solutions to the client requirements.

Challenges

Strategic Resources will have a challenging situation in developing its brand image and

attracting clients due to the presence of local and city wide competition.


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Clients

Industry Practices

Strategic Resources clients operate in a wide array of industries. To cater to their

industry specific search requirements, we have sector specialists organized into industrypractice groups. This implies that industry practice group specialists can deliver quick and

precise search solutions for the clients. The industry practices are segmented as follows:

Consumer

Consumer Products Retail

Financial Services

Corporate and Investment Banking Audit and Advisory Services Insurance and Risk Management

Technology

Telecom Software ITES

Manufacturing

Automobiles Diversified

Infrastructure

Energy Project Management Advisory Services


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Functional Practices

Strategic Resources functional practices groups were set in motion to ensure that the

challenges faced by our clients in function specific search assignments, were addressed to by a

select group of specialists. These specialists have honed their search skills in the respective

functions and are extremely capable of providing efficient and targeted search solutions. The

functional practices are segmented as follows:

Sales / Business development / Client servicing Marketing / Advertising / Corporate communication R & D / Engineering design Sustainability Audit / Taxation Finance Human resources Administration Supply chain management Operations and Maintenance Consumer insight Customer Service/Support Production / Manufacturing Legal IT / Software & Hardware capabilities


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2. Marketing Plan

Market Description

A recruitment Agency can be defined as a facility that is intended to provide the link

between job prospectors and companies that need personnel. On todays challenging world,

the gap between people and their ideal job can be very wide and Strategic Resources is the

bridge that links these two entities together.

Market Analysis

Our customers can be divided into two different groups:

High-tech firms. The high-tech firm deals with some aspect of technology; it could be

design, or manufacturing. These firms currently make up over 80% of the top 20 fastest growing

companies in India.

Non-high-tech firms. While this category of emerging companies is far smaller then

high-tech companies, it should by no means be neglected. There are plenty of fast growing

companies in this segment and Executive will be able to serve them.

58%

42%

Market Analysis

High - Tech Firms

Non - High -Tech firms


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PESTEL Analyses

Political

Department of Jobs,Regulation of EmploymentAgencies Act, 2007.

Registering the businessname with the registrar.

Acquisition of licence forrunning an employment

agency.

Economical

Indian Economy. Indian Recession. Unemployment rate at

3.8%.

Social

Inclination towards theinternet information.

High use of socialnetworks among targeted

market.

Change in Populationdemographics.

Emigration to find betterwork opportunities.

Technological

High usage of internetamong prospects.

Growth of advertisement insocial networks and otherinternet tools.

Speed of data transfer andcapacity of data storage.

Real Time Communication

Environmental

Energy cost andconsumption.

Waste disposal - Recycling. Environmental regulations.

Legal

Employment Laws. Advertisement and

competition laws.

Health and Safety Law. Mobile phone and Drivingpolicies. Taxation.


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SWOT Analyses

Strengths:

Knowledgeable and results driven management with a strong approach to achallenging market.

No cost to prospect, low cost to company. Easy accessible technology to help with the process. Company will hire qualified and train staff to the highest of the standards.

Weaknesses:

High cost of trained and qualified professionals to work in the agency. High rate of attrition.

Opportunities:

Market in need of a more focused approach. High unemployment rate can mean more prospects and more quality

professional to offer to companies.

India is a developing country where a huge number of startups and MNCsemerges almost daily thus creating a huge pool of vacancies for middle and top

level executives.

Threats:

High rate of competition faced from other recruitment agencies working in thesame market and the sourcing done by the clients itself reduces the chances of

closure.

The easy access of internet for different sources of job opportunities, includingcompetitors websites, company websites and governmental entities.


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Client Development Strategy

Since Strategic Resources deals only with companies its marketing mix focuses on them

and looks like this:

Product: The companies will have a high level of trained prospects to choose fromselected by Hunters Recruitment to their appreciation.

Place:Strategic Resources will visit the companies in their own environment for a more

personalized service, but always having its doors opened to clients.

Price: A low cost/high quality service will be provided.

Promotion: Strategic Resources believe in wordofmouth promotional strategy for

coming in touch with new clients.


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3. Organisational/HR PlanStructure

The structure of Hunters Recruitment agency will be as follows:

Managing Director:Mr. Samir Narang and Mrs. Namrata Sharma are the MD of the firm.There core responsibilities lie in bringing business to the firm and entertaining clients of the

firm. They also overview all the sourcing related issues in the firm.

Team Leader:

Responsible for supervising the work of research associates under them. Responsible for the end to end Recruitment process.

o Resource the required skill sets by the utilization of the necessarychannel of operations.

o Validate the profile of the candidates by matching them with therequirements for exact fitment.

o Head hunting and mapping industries.o Arrange and schedule for the interviews, technical and subsequently the

HR interview of the Short listed candidates.

o Meeting the numbers in terms of the recruitment.o Maintaining record of all the validations for all positions to develop the

database.

ManagingDirector

Team Leader

ResearchAssociate


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o Continuously build the database by running referrals scheme and byNetworking.

Research Associate:Responsible for the end to end Recruitment process.

Resource the required skill sets by the utilization of the necessary channel ofoperations.

Validate the profile of the candidates by matching them with the requirementsfor exact fitment.

Head hunting and mapping industries. Arrange and schedule for the interviews, technical and subsequently the HR

interview of the Short listed candidates.

Meeting the numbers in terms of the recruitment. Maintaining record of all the validations for all positions to develop the

database.

Continuously build the database by running referrals scheme and by Networking.


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4. Financial PlanThe following sections will outline important financial information.

Important Assumptions

The following table details some of the important financial assumptions.

General Assumptions

Year 1 Year 2 Year 3

Plan Month 10.00% 10.00% 10.00%

Current Interest Rate 10.00% 10.00% 10.00%

Tax Rate 25.42% 25.00% 25.42%

Other 0 0 0

BreakEven Analysis

The Break-even Analysis indicates what is needed in monthly revenue to break even.

The sales forecasts are based on the company receiving the commission spread out over the

entire year as opposed to a lump sum.

BreakEven Analysis

Monthly Revenue Break Even Rs. 1,00,052

Assumptions:

Average Percent Variable Cost 0%

Estimated Monthly Fixed Cost Rs. 10, 00,052

0

1

2

3

4

5

6

RevenueCost


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Projected Profit and Loss

Pro Forma Profit and Loss

Year 1 Year 2 Year 3

Sales Rs. 11,96,600 Rs.18,21,320 Rs. 21,28,010

Direct Cost of Sales Rs.0 Rs. 0 Rs. 0

Other Rs.0 Rs.0 Rs.0

Total Cost of Sales Rs.0 Rs.0 Rs.0

Gross Margin Rs. 11,96,600 Rs. 18,21,320 Rs. 21,28,010

Gross Margin % 100.00% 100.00% 100.00%

Expenses

Payroll $83,300 $101,000 $107,600

Sales and Marketing

and Other Expenses

$2,400 $2,400 $2,400

Depreciation $828 $828 $828

Leased Equipment $0 $0 $0

Utilities $2,100 $2,100 $2,100

Insurance $1,500 $1,500 $1,500

Rent $18,000 $18,000 $18,000

Payroll Taxes $12,495 $15,150 $16,140

0

1

2

3

4

5

6

Month

1

Month

2

Month

3

Month

4

Month

5

Month

6

Month

7

Month

8

Month

9

Month

10

Month

11

Month

12

Series 1


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Other $0 $0 $0

Total Operating

Expenses

$120,623 $140,978 $148,568

Profit Before Interest

and Taxes

($963) $41,154 $64,233

EBITDA ($135) $41,982 $65,061

Interest Expense $0 $0 $0

Taxes Incurred $0 $10,289 $16,326

Net Profit ($963) $30,866 $47,907

Net Profit/Sales -0.80% 16.95% 22.51%

Projected Cash Flow

The following chart and table will indicate projected cash flow.

Pro Forma Cash FlowYear 1 Year 2 Year 3

Cash Received

Cash from Operations

Cash Sales Rs. 1,79,490 Rs. 2,73,200 Rs. 3,19,200

Cash from Receivables Rs. 7,77,900 Rs. 14,23,240 Rs. 17,47,500

Subtotal Cash from Operations Rs. 9,57,390 Rs. 16,96,440 Rs. 20,66,700

Additional Cash Received

Sales Tax, VAT Received Rs. 0 Rs. 0 Rs. 0

New Current Borrowing Rs. 0 Rs. 0 Rs. 0

New Other Liabilities (interest-free) Rs. 0 Rs. 0 Rs. 0

New Long-term Liabilities Rs. 0 Rs. 0 Rs. 0

Sales of Other Current Assets Rs. 0 Rs. 0 Rs. 0

Sales of Long-term Assets Rs. 0 Rs. 0 Rs. 0

New Investment Received $6,000 Rs. 0 Rs. 0

Subtotal Cash Received Rs. 10,17,390 Rs. 16,96,440 Rs. 20,66,700

Expenditures Year 1 Year 2 Year 3

Expenditures from Operations

Cash Spending Rs. 8,33,000 Rs. 10,10,000 Rs. 10,76,000

Bill Payments Rs. 3,34,020 Rs. 4,84,680 Rs. 5,58,880

Subtotal Spent on Operations Rs. 11,67,020 Rs. 14,94,680 Rs. 16,34,880

Additional Cash Spent

Sales Tax, VAT Paid Out Rs. 0 Rs. 0 Rs. 0


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Principal Repayment of Current

Borrowing

Rs. 0 Rs. 0 Rs. 0

Other Liabilities Principal

Repayment

Rs. 0 Rs. 0 Rs. 0

Long-term Liabilities Principal

Repayment

Rs. 0 Rs. 0 Rs. 0

Purchase Other Current Assets Rs. 0 Rs. 0 Rs. 0

Purchase Long-term Assets Rs. 0 Rs. 0 Rs. 0

Dividends Rs. 0 Rs. 0 Rs. 0

Subtotal Cash Spent Rs. 11,67,020 Rs. 14,94,680 Rs. 16,34,880

Net Cash Flow (Rs. 1,49,620) Rs. 2,01,750 Rs. 4,31,820

Cash Balance Rs. 57,880 Rs. 2,59,630 Rs. 6,91,450

Projected Balance Sheet

The following table will indicate the projected balance sheet.

Pro Forma Balance SheetYear 1 Year 2 Year 3

Assets

Current Assets

Cash Rs. 57,880 Rs. 2,59,630 Rs. 6,91,450

Accounts Receivable Rs. 2,39,210 Rs. 3,64,090 Rs. 4,25,400

Other Current Assets Rs. 0 Rs. 0 Rs. 0

Total Current Assets Rs. 2,97,080 Rs. 6,23,720 Rs. 11,16,850

Long-term Assets

Long-term Assets Rs. 25,000 Rs. 25,000 Rs. 25,000

Accumulated Depreciation Rs. 8,280 Rs. 16,560 Rs. 24,840

Total Long-term Assets Rs. 16,720 Rs. 8,440 Rs. 160

Total Assets Rs. 3,13,800 Rs. 6,32,160 Rs. 11,17,010

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable Rs. 30,930 Rs. 40,630 Rs. 46,410

Current Borrowing Rs. 0 Rs. 0 Rs. 0

Other Current Liabilities Rs. 0 Rs. 0 Rs. 0

Subtotal Current Liabilities Rs. 30,930 Rs. 40,630 Rs. 46,410

Long-term Liabilities Rs. 0 Rs. 0 Rs. 0


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Total Liabilities Rs. 30,930 Rs. 40,630 Rs. 46,410

Paid-in Capital Rs. 3,10,000 Rs. 3,10,000 Rs. 3,10,000

Retained Earnings (Rs. 17,500) (Rs. 27,130) Rs. 2,81,530

Earnings (Rs. 9,630) Rs. 3,08,660 Rs. 4,79,070

Total Capital Rs. 2,82,870 Rs. 5,91,530 Rs.10,70,600

Total Liabilities and Capital Rs. 3,13,800 Rs. 6,32,160 Rs. 11,17,010

Net Worth Rs. 2,82,870 Rs. 5,91,530 Rs. 10,70,600

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