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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