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Business Planning and Component StudyBusiness Planning and Component Study

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““I knowI know forfor suresure””

““I see it comingI see it coming””

““I think it might happenI think it might happen””

““I have a sneaking suspicionI have a sneaking suspicion””

““II’’m totally obliviousm totally oblivious””

Breaking the Thought BarrierBreaking the Thought Barrier

Strategic anticipation is aboutStrategic anticipation is aboutsuspecting opportunities from thesuspecting opportunities from the

emerging market conditionsemerging market conditions

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Compelling Brand

High Profits

Low Operating

Costs

High Efficiency

GermicidalEffects

(Business Plan)

AimAim

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Port

folio

of S

trat

egy

Initi

ativ

es

Time

>2 yrs

2 – 5 yrs

<5 yrs

Time frameTime frame

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ComponentsComponents

1. Financial Modeling2. Service Portfolio3. Rise and Reach4. Building Blocks – For Growth5. Base Effect – Superior Brand Recognition

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Financial ModelingFinancial Modeling

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Lower Margins Higher Margins

Spec

ialit

yC

ore

Publication

HR Consulting

Temping

FranchiseeNeeds

Value

Service PortfolioService Portfolio

Professional

Permanent

Job Portal

Outplacement

Can BeShould Be

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Rise & Reach (HS model)Rise & Reach (HS model)

SCUSCU

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Building BlocksBuilding Blocks

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Base EffectBase Effect

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Study PlanStudy Plan

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Need AnalysisNeed AnalysisOpportunities Threats

Strengths

Professional Backing Existing Setup Industry Expertise Low Cost Base High returns market

Present market conditions in Indiaand ME region

No Major Professional Player ascross-border service provider

Quality Delivery is complex process

Weakness

Weak Brand Basic Presence Lack of Technology Cross –border (Corridor) movement is

Investment intensive

Present Business Volatility Recruitment activity is considered

as a contingency RoI can scramble (scathing cost of

cap) Too many operators No specific data on recruitment

industry in cross- borderrecruitment business

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Risk Factor AnalysisRisk Factor Analysis

Lost Revenue• Technology usage• Opportunity cost• Lost Future Revenues• Quality standards

Productivity Loss• Performance matrix• Accountability factor• Error rate manager

Damaged Reputation• Servicing clients• Contract management• Work contract payouts• Vendor payout system• Accounting & Legal practice

Delayed Collections• Accounting standards• DSO and cost control

Expense control• Travel Expenses• Temporary

Employees

Penalties• Contractual• Regulatory• Legal

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Size

of C

ompe

titiv

e A

dvan

tage Benefit Period Erosion PeriodBuildup Period

Strategicmovesproducecompetitiveadvantage

Moves byrivalserodecompetitiveadvantage

Size ofcompetitiveadvantageachieved

Time

Competition and Strategic PositioningCompetition and Strategic PositioningAnalysisAnalysis

>2 yrs

2 – 5 yrs

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Constituents

ValueCreation

ValueValueCreationCreation

Sales Volume

Pricing

Op Expenses/SG&A

COGS

Reach / access to new markets New value propositions

Creation of new product /service offerings

Brand image building Demand-supply matching

Sourcing price reduction Better price-value matching

Cost-to-serve improvement Logistics network efficiency Transaction cost reduction

Effective marketing Effective policing of company

policies

Productivity improvement Logistics network productivityimprovement

Favorable sourcingcontract negotiation

Inventory level optimization Time-to-market reduction

Technology

WorkingCapital

FixedAssets

Effective customersegmentation

Forecast accuracyimprovement

CostReduction

Asset IntensityReduction

RevenueEnhancement

LeversLevers

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Patternof ActionsThat Define

Strategy

Strengthen local presence and delivery capability

Corridor creation

Hiring talent

Risk mitigation mechanism

Functional activities

Pursue new opportunities or defend against threats

Budgeting plan

Actions to be TakenActions to be Taken

Developing Practices

(CoE)

Market presence

Lets discussLets discuss –– Path forwardPath forward(who, when, where and how(who, when, where and how –– Game plan)Game plan)

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MarketMarket

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1. Hewitt Associates (NYSE: HEW) announced it has acquired LewisCo Group (LCG)and its wholly owned subsidiary, Disability Management Alternatives. (Source:Hewitt press release, April 29, 2008)

2. TriNet announced it has acquired professional employee organization (PEO) LMCResources (Source: TriNet press release, April 16, 2008)

3. UK-based benefits management services provider Xafinity acquired Hazell Carr, aspecialist provider of pension management and administration services (Source:Hazell Carr press release, April 7, 2008)

4. Kenexa (NasdaqNM: KNXA) acquired London-based Quorum International, aprovider of recruitment process outsourcing (RPO) services in Europe, the MiddleEast, and Africa (Source: Kenexa press release, April 2, 2008)

5. Manpower (NYSE: MAN) acquired CRI Inc., a Los Angeles-based RPO servicesprovider (Source: Manpower press release, April 1, 2008)

In ObservationIn Observation –– HR TrendsHR Trends

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• Almost 90% of businesses in the gulf region say securing the right candidatefrom the international job market is either a struggle or entirely impossible,according to a new Poll

• A third of respondents to the latest arabianbusiness.com survey said “with thepresent exchange rates we find it almost impossible to get the right get theright people”

• More than one half (53.8%) said that attracting and retaining the talentrequired to remain competitive was a “struggle” with companies “having to offerhigher salaries than the business can really afford”

ARABIANBUSINESS.COM SURVEY 2009ARABIANBUSINESS.COM SURVEY 2009

View pointView point

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GCCGCC

Gulf states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UnitedArab Emirates

Investment boom backed by decades of saved petroleum revenues

To build a tax base and economic foundation before the reserves run out, theUAE's investment arms, including Abu Dhabi Investment Authority, retainover $900 billion in assets

Other regional funds also have several hundred billion dollars

IMF predicts its GDP to reach $1,112.076 billion at end of 2008 and$1,210.112 billion at end of 2009

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Middle EastMiddle East

The Middle East (or, formerly more common, the Near East) Armenia,

Azerbaijan (partially in Europe), Bahrain, Cyprus, Georgia, Iraq, Israel,

Jordan, Kuwait, Lebanon, Oman, Palestine not fully sovereign, Qatar, Saudi

Arabia, Syria, Turkey (partially in Europe), UAE, Yemen and Egypt

the three largest Middle Eastern economies in 2008 were Turkey ($

794,228,000,000), Saudi Arabia ($ 467,601,000,000) and Iran ($

385,143,000,000) in terms of Nominal GDP (world bank dev report 2009)

In regards to nominal GDP per capita, the highest ranking countries are

Qatar ($93,204), the UAE ($55,028), Kuwait ($45,920) and Cyprus

($32,745).Turkey ($ 1,028,897,000,000), Iran ($ 839,438,000,000) and

Saudi Arabia ($ 589,531,000,000)

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(PPP)-based income highest-ranking countries are Qatar ($86,008), Kuwait($39,915), the UAE ($38,894), Bahrain ($34,662) and Cyprus ($29,853)

The lowest-ranking country in Middle East, in terms of per capita income(PPP), is autonomous Palestinian Authority of Gaza and the West Bank($1,100)

Industries of the Middle Eastern region include oil and oil-relatedproducts, agriculture, cotton, cattle, dairy, textiles, leather products,surgical instruments, defence equipment (guns, ammunition, tanks,submarines, fighter jets, UAVs, and missiles)

Banking is also an important sector of the economies, especially in UAE andBahrain

Middle EastMiddle East……22

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1. high dependence on oil and the petrochemical industry

2. high dependence on foreign labor

3. a low rate of female participation in employment

4. a weak link between educational system output and the needs of the

economic sectors

5. Enhanced safeguards and protections for employees in the region

6. Wage protection system (WPS) in UAE

7. Kuwaiti government announced new labor law

Macro IndicatorsMacro Indicators

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8. expatriate professionals on rise in Dubai, Doha, Saudia Arabia

9. Countries are making it easier for employees to switch jobs, and new labor

laws have been passed into law or are under review, with much more pro-

employee stances

10. Salary growth slowed with base salary rising at an average of 6.2% over the

12 month period to August 2009, compared with 11.4% for the same period

last year

11. Oman saw the biggest average pay rise at 8.4%, followed by Qatar, Saudi

Arabia and Bahrain at around 7%

12. The UAE and Kuwait stood at the bottom with 5.5% and 4.8% respectively

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13. On a sector basis, accounting and audit companies saw the biggest average

rise at 7.9%, as concern about the financial health of firms boosted

demand for audit services

14. Investment firms offered the smallest pay rises this year

15. On a regional basis, Oman secured the largest average increase at 8.4%,

though still much lower than last year Qatar, Bahrain and Saudi Arabia

had similar increases of around 7%

16. Kuwait had the smallest rise at just 4.8% while professionals in the UAE

saw a pay increase of 5.5%, down sharply from 13.6% in the previous year

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17. Initiatives towards enhancing Bahraini nationals employability in pvt

sector has picked momentum

18. Major focus on efficiency driven exercises are underway from companies

in the region during this period of 2008 – 09

19. Among countries, the UAE ranked highest, with 16% being made

redundant Based on data from GulfTalent.com

20. Dubai’s share of advertised vacancies in the GCC fell from 48% during the

first 9 months of 2008, to just 31% during the same period in 2009

21. By contrast, Abu Dhabi, Qatar and Saudi Arabia saw their shares

increase significantly

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22. An analysis of commuting patterns reveals that, among expatriates living

in Dubai, the percentage who work in Abu Dhabi has tripled over the last

year from 1% to 3%, a trend also observed in the increased traffic on

the 120km highway connecting the two cities

23. This excludes a much larger group who have relocated their residence to

Abu Dhabi, as well as those who serve Abu Dhabi-based clients from

their offices in Dubai

24. One of the biggest developments of 2009 has been a change in

the fortunes of Dubai, from the fastest-growing hub of the

region sucking in much of the expatriate talent, to the city

experiencing the region’s most severe downturn

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25. Jordan, Egypt and Lebanon, which supply the bulk of the Arabic-speaking

expatriates to the Gulf, have also been affected by the downturn, with

previous pay pressures cooling down substantially

26. Between 2002 to 2007, the US dollar fell by 20-45% against a range of

currencies, dragging with it the value of Gulf salaries for expatriates

27. Since the beginning of 2009, however, the picture has reversed yet again,

with the dollar sinking 5-15%

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With India and more to expect..With India and more to expect..

1. India is a huge country with many opportunities

2. India has the world’s tenth largest economy and the third largest in Asia(behind Japan and China). It is predicted to become the third largest inthe world within ten years.

3. In the financial year 2006/07, the service, industrial and agriculturalsectors accounted for 54.8%, 26.3% and 18.9% of GDP respectively.Approximately 60% of the population are dependent on agriculture.

4. The Indian government is liberalizing investment in the civil aviation,telecom and insurance sectors but of 155 countries assessed by ease ofdoing business, India ranks 116th (World Bank survey).

5. Great strides have been made in knowledge-driven sectors such asinformation and communications technology (ICT), entertainment andpharmaceuticals.

6. Two-thirds of the world’s off-shore IT services are based in India, as arehalf the world’s back office processing functions (BPOs)

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Recruitment AgenciesRecruitment Agencies

1. Human Capital Investment2. Randstad Middle East3. Velocity Recruitment4. Select Human Resources5. Kobaltt6. Engage Selection7. Pathway Resourcing8. ND & Associates9. Darwin Recruitment10. Sommerman Skinner Associat...11. Kelly Services12. Resource Sciences Arabia L...13. Talent214. Manpower Professional15. Kawader16. Architect and Designer Rec...17. Logistics Recruitment18. ConSol Partners19. Adecco20. Eutopia Solutions21. Jerry Varghese Internation...

22. Pulse23. Blake International24. Michael Page International25. Leirus26. NSI27. Ma Foi Management Consultants28. Group Armour29. Saudi Intelligent Solution...30. SET Recruitment31. Ejadah Management Consulta...32. Iperium Consulting33. Merge Recruitment Agency34. IRM Solutions35. Redstone Associates36. Aspiriti Executive Recruit...37. KCM Recruitment38. NSR Associates39. Digby Morgan40. Mackenzie Jones

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Appreciate your time forthe case study !