BSS058-6 Strategy and the Global Competitive Environment Assignment Sample
Module code and Title: BSS058-6 Strategy and the Global Competitive Environment Assignment Sample
1. Introduction
The human resources management industry is a sector that involves recruitment, selection and retention of highly talented individuals within the organisation. In current scenario, there are more than 9,39,000 people that are working in the human resources management industry that are responsible for selection and recruitment of talented individuals in the firm.
Value proposition can be stated as a certain value that has been communicated by a company to offer to customers in order to meet their respective wants. In this the customers are provided an option to select product and services as per their respective taste and preferences by organisation (Hamilton et. al. 2019). This report will shed light on Employ manpower LTD what potential opportunities it has, the target market, trends in the human resource management industry. It also includes information related to value proposition through value chain canvas and strategic position of the firm by use of the bowman strategy model.
2. Strategy analysis and growth strategy
2.1 Identification of potential opportunities to compete in selected industry segment
Human resource management is huge industry with an value of around USD 19.38 billion in 2021 that is expected to expand to 12.8% from 2022 to 2030 at compound annual growth rate. The main purpose of the HRM industry is to develop more competent personnel or keep employees productive for the benefit of the organisation (Erlangga and Erlangga, 2021). With increased adaptation of digitalisation and automation in the HR industry, professionals are able to pool out the right candidate from the applicants, manage its human resources effectively and retain them within the organisation for the long run.
Figure 1: Human Resource Management Market Size (Source: Human Resource Management Market Size, Share & Trends Analysis Report By Component, 2022)
Furthermore, improvement in technologies such as- artificial intelligence, machine learning and predictive analytics provide employees ease of access to essential information. This emerging technology has contributed to companies to easily predict the overall performance of employees in coming years. It will provide opportunities to companies to have real time performance reviews and easily manage the performance, compensation and other activities of employees by making use of innovative technologies (Human Resource Management Market Size, Share & Trends Analysis Report by Component, 2022). The below diagram depict the overall growth in human resource management industry in coming years such as:
2.2 Identification of potential segment or target market
It is very crucial for the organisation to segment or target its market to plan appropriate techniques to attract them (Pagadala and Gupta, 2018). Segmentation, targeting and positioning are three crucial elements that help in understanding the way companies such as Employ manpower LTD. Has segment the market. Such as:
- Segmentation: The Company has segmented population on the basis of different categories, like- geographical, physiological, behavioural, demographically and income. Talent hire through identifying the different location at which people live has planned strategies to attract them. Physiology is a also one of the criteria that helps in segmenting people on the basis of their actual taste and preferences and area of interest to get selected in a reputable organisation (Huang and Rust, 2021). While, on the basis of demographic that is male or female market has classified that help firms in having diverse employees. At last, what salary or income the employees actually want from customers is criteria used to segment the market.
- Targeting: Out of the segmentation, the Employ manpower LTD has planned to select all those individuals that are living near England or in the United Kingdom so that employment opportunities can be provided to them. It has also provided equal opportunities to both men and women to be selected within the organisation (A beginner guide to STP marketing- martechlive, 2021). Furthermore, it has targeted people that have interest to get a good job in any of the reputable organisations for a better future. All those individuals that want to have sufficient wages or good compensation with a flexible working environment are targeted by Employ manpower LTD.
Figure 2: STP marketing (Source: A beginner guide to STP marketing- martechlive, 2021)
- Positioning: Employ manpower LTD has effectively positioned its brand image in the minds and hearts of customers through offering good services to people living in society. Likewise, it has provided attractive compensation to employees, flexible working environment, hybrid working and make use of new technologies to engage more employees in firms (Jiang al. 2021). Apart from this, companies by making use of digital technology or social media platforms are able to generate awareness among people about the vacancy in the firm and the manner in which they can apply for it.
2.3 Identification of business model of competitors group in industry
In the human resource management industry, there are many competitors that are making use of business to business models to operate their function in a smooth manner. As with globalisation and development in technology many large multinational companies have started outsourcing the process of hiring, recruiting and retaining employees (Kumar et. al. 2021). Hence, there are many independent firms in the UK that perform all functions of human resource management from hiring to retaining talented individuals in the firm.
This has contributed in facilitating other enterprises to generally focus on their main operation rather than human resource management or other activities. For example: verohr, trust id, gini talent, devs data and many more competitors of Employ manpower LTD that are continuously improving their process for better outcome (Sharma et. al. 2022). Use of business to business model has contributed in maintaining the gold relationship between them and earning high profit margin.
2.4 Key trend in industry sector
In the current scenario, the human resource management industry has undergone different changes such as previously employees were not allowed to work from home, limited use of new technologies and many more (Sharma et. al. 2022). Furthermore, after the covid-19, there are two new concepts which have emerged that are- remote working and hybrid working. All the trends pertaining to human resources management industry can be understand in more in depth as:
- Hybrid work model: It is a more flexible work model which supports employees to work from either in house or remote areas. In another word, it provides autonomy to employees to choose the way they want to work in a more productive manner. Hence, this has provided an opportunity to employees to have work-life balance and contribute to the overall growth and development of the company (Rintamäki and Saarijärvi, 2021). Employ manpower LTD through making a lot of investment in the research and development department is able to plan strategies to provide a better working environment or condition to employees.
Figure 3: 11 HR Trends for 2022 (Source: 11 HR Trends for 2022: Driving Change and Adding Business Value, 2022)
- Diversity, equity, and inclusion: The second trend in human resource management is promoting diversity, equality and inclusion practices in enterprise. As people have been concerned about inequality and injustice promoted in the workplace that adversely harms the performance and productivity of individuals (11 HR Trends for 2022: Driving Change and Adding Business Value, 2022). So, employ manpower LTD also needs to focus on respecting and recognising each and every employee for their hard work and dedication. It has to include and engage all types of employees whether male or female, skilled and unskilled to have a diverse workforce in enterprise.
- Use of advanced technologies: With use of more advanced technology, there has been drastic change in the people management process. When the company has actually hired the applicant then it can easily maintain records of employees through use of AI. It has provided innovative ideas to HR managers to connect with employees through new chat boxes that help in smooth operation of the enterprise (HR Trends for 2022: Future of Human Resource Management, 2022). This has effectively helped her manager in Employ manpower LTD to know what all actual challenges or issues that have been faced by employees. On the basis of which an appropriate solution has been planned to overcome the issues and promote enhanced productivity of individuals in the firm.
Figure 4: 11 HR Trends for 2022 (Source: HR Trends for 2022: Future of Human Resource Management, 2022)
2.5 Identification of selected target and its justification for selection
The Employ manpower LTD has selected the target market as the youth population that wants to have employment opportunities in reputable organisations after completing their education from a well-known university. These are mainly selected as they are the ones who are in search of job opportunities, more growth, better working environment and good compensation with a motivation that they can live a better lifestyle ahead in future.
Through attracting the unemployed youth population the company is able to deliver services and earn a huge profit margin (Roundy and Burke-Smalley, 2021). Secondly, the target markets are multinational companies that want to outsource their work to other independent enterprises by paying them a significant amount of money. This will help talent hire in easily earning more revenue through making placement of qualified students from university to enterprise for filling up the vacant positioning.
3. Strategic positioning
3.1 Why and what choice for strategic position has been made by firm
Bowman’s clock
If the company is looking toward gaining a competitive position in the industry, then the bowman clock is one of the models. It includes different alternative options which could be utilized by the company to offer its product and services to customers for earning high profit margin (Nunes et. al. 2021). The various strategies which can be pursued by enterprise are explained in detail as follows:
Position 1-Low price and low added value: This is a strategy in which the talent hire will offer its services at a low price to attract customers. However the services offered by firms are relatively low in quality or cannot be distinguished from other enterprises (Desai, 2019). The Employ manpower LTD. in order to sustain in a competitive market by making use of this strategy, you need to have bulk sales or products and services.
Position 2-Low price: The second strategy position which could be gained by the Employ manpower LTD. through lowering its price. For this company to focus on bringing economic scale or optimum use of available resources so that qualitative services could be offered to end users. For example: firm through offering recruitment, selection and training large number of employees (Yu, 2021). In other words, by offering them employment opportunities through tie-ups with other firms, they are able to offer services in the human resource industry at a lower price possible.
Position 3-Hybrid: It is a strategy position that could be gained by a company through offering products at consistent quality on a regular basis. It combines both product differentiate and low price strategy that contribute in adding more customers within the enterprise. For example: Employ manpower LTD. Through offering standard employment and training services to employees or people living in society is able to attract more individuals and enjoy high profit margins.
Position 4-Differentiation: This is one of the best strategy positions which could be gained by the talent hire through effectively differentiating its services in comparison to other competitors in the market. Likewise, the company could provide services of employment to individuals along with training; better working environment and growth opportunities (Bowman’s strategy clock according to Bowman and Faulkner, 2021). It by offering unique value to customers is able to gain competitive advantages in an external environment and charges high prices from them.
Figure 5: Bowman’s strategy clock (Source: Bowman’s strategy clock according to Bowman and Faulkner, 2021)
Position 5-Focused Differentiation: It is a strategy position in which the enterprise emphasis on focused differentiation is offering innovative products or services for particular populations only. For example: Employ manpower LTD by offering employment opportunities to the youth population that are in search of a job is able to enjoy a high profit margin (Echchakoui, 2018). This will help in delivering all services from hiring, retaining training and development of existing skills and knowledge or capability of individuals.
Position 6-Risky high margins: This is a risky margin as the company will fail sooner or later as it has set the price of the product high irrespective of adding any new value to existing products and services of the company. It is a short term strategy hence the Employ manpower LTD need to avoid as it will help in earning profit margin for less number of years or month only. At the same time, as soon as the customer will gain any substitute of services will leave the enterprise that will result in decreasing overall profitability of the firm.
Position 7- Monopoly Pricing: It can be stated that the Employ manpower LTD has been working in the human resource industry, in which there are many companies operating with huge market share. So, there is less or no chance for an enterprise to charge monopoly price from customers or people for rendering its services (Helmold, 2020). In other words, a company could not charge high prices from customers by delivering common services as there are many other firms from which it could get the same at lower price.
Position 8-Loss of market share: This is the last strategy position that can be gained by Employ manpower LTD in which the company has lost the market share because of setting a high price of no perceived value. That is, companies are not able to hire the right individual at the right place or in an organisation which has a better working environment, provide good wages to employees and many other benefits. Moreover, to deliver all these, it has to charge high prices from end users that have led to losing their interest to be part of an enterprise for the fulfilment of their wants.
4. Value proposition
4.1 Chosen value proposition that deliver advantage and meet need of target market.
Combination of bowman clock and STP
Figure 6: Value Proposition Canvas (Source: Influenced by Grunert, 2019)
From the above analysis, it can be stated that there is a link between the bowman strategy clock and STP. Such as, most of the youth population are in search of good employment opportunities so that they could have a bright future ahead. Employ manpower LTD has focused on providing qualitative services to people by making ties or partnership with many companies that are ready to outsource their human resource management (Grunert, 2019).
It performs the function of matching the vacancy requirement with existing skills, knowledge and capabilities of individuals. With a motive to hire, select and place the right individual at the right position in a specific organisation for smooth operation in external environment.
It has targeted all types of people , whether male or female, to get better job opportunities in enterprise, which is having a better working environment, flexible or hybrid working model and ensuring equality and diversity in the workplace. Through differentiating its services from other competitors, talent hire is able to charge high prices from customers (Hamilton et. al. 2019). As it is famous for offering standard and qualitative services to individuals that meet their expectancy as well as requirement in optimum manner.
Why they would buy product or services.
In the current scenario, there are many functions which multinational companies need to perform to attract new customers in the enterprise. They have started outsourcing the work of human resource management that has provided opportunity to employ manpower LTD to grow ahead in a competitive market (Saniuk et. al. 2021).
So, these companies will buy services of talent hire as it will be responsible for all functions of HR from hiring, planning policies and procedure of the company, to promoting growth and development and training employees related to the way particular tasks must be completed.
Apart from this, 3.7% is the unemployment rate in the United Kingdom which means there are still many young people looking for attractive job opportunities to earn high income. This will induce all these people that require a job for a better lifestyle in future circumstances, as talent hire provides them alternative options where they can apply and get a job as per their respective qualities, skills, knowledge and capabilities (Piwowar-Sulej, 2021).
How value proposition communicated to customers
There will be different channels that will be utilized by talent hire to communicate about its services to customers through making use of social media platforms, email and other channels. It will make use of Instagram, Facebook, Twitter and other media to inform people about what all types of services it provides and their actual price or cost (Margherita, 2022). People are free to comment, share and like which contribute to improving the brand image and operation of the enterprise.
Talent hired by making use of advanced technology is able to effectively share information about its product and services to end users in limited time and cost. This helps in easily attracting the youth population as they spend a lot of time and effort on scrolling social media to have fun, entertainment and necessary information.
Value proposition for target market
The talent hire is offering qualitative services to customers or individuals by offering them various placement opportunities in well reputable organisations. They will provide job opportunities in firms that have respective vacancies as per the skills, knowledge and capabilities of individuals (Saks, 2022). The wide varieties of choice related to employment contribute in making individuals happy and satisfied to maximum extent.
4.2 Value chain canvas
| KEY PARTNERS
Asda Sainsbury Unilever and many other retail firms with which the talent hire has partnership to provide human resource management services. It has maintained strong relationships with its partners that have helped in delivering qualitative services to customers (Johannsen et. al. 2021). |
KEY ACTIVITIES
The talent hire is engaged in different activities such as: Hiring, recruitment and selection of employees in a firm. Development opportunities for them. Providing training to individuals. Deciding policies and procedures for the firm. Planning compensation needs to be provided to individuals. |
VALUE PROPOSITION
Offer standard services to customers Or placement services with proper training related to the manner in which tasks must be done (AlAbri et. al. 2022).). It has always tried to add more value or benefits for its customers so that they are motivated to select it as compared to other enterprises.
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CUSTOMERS RELATIONSHIP
Talent hire has focused on building and maintaining strong relationships with customers through meeting their needs in an optimum manner. It has taken their respective feedback to know what all challenges face them and the way the company could satisfy them. |
CUSTOMER SEGMENTATION
The enterprise has segmented customers on different basis such as- physiological, geographical, behavioural, income and demographically. |
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| KEY RESOURCES
Financial resources Human resources Infrastructure Machinery and equipment and many more. Talent hire through making best use of available resources has focused to gain competitive advantages in the human resources management industry for many years. |
DISTRIBUTION CHANNEL
Through both online and offline methods, individuals are being recruited and selected within the organisation (Shet et. al. 2021). Likewise, companies have their official websites where customers can easily scroll, view details and make decisions. Moreover, email and social media are also platforms that have helped talent hire in connecting with more customers. |
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| COST STRUCTURE
The company have to incurred lot of expenses for its operation to deliver human resource management can be illustrated as follows:
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REVENUE STREAM
The different sources from which the company could earn its revenue are:
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5. Conclusion
From the above report it can be concluded that companies need to create a strong value for customers for growth and benefits of enterprise. Employ manpower LTD always focus on offering good employment opportunities to individuals so that they could have better jobs in their future careers.
The study has helped in learning that firm business canvas models describe in detail pertaining to the way value will be delivered to people for earning high profit margin. At last, it can be summarised that bowman clock has contributed in understanding the strategic option which a company would have through offering qualitative services to end customers.
6. Recommendation
The study has contributed in understanding the value being provided by enterprises but it will help in suggesting more strategies that could be used by firms to attract customers. Such as:
- Talent hire needs to adapt new technology or digital media to inform customers about its product or services so that the customers could make the right decision related to whether they need to be part of this enterprise or any other firm. Likewise, making use of AI to gather data, facts and information related to current performance of employees. Thereby, appropriate methods could be planned to improve their overall productivity and performance to maximum extent (Shet al. 2021).
- Secondly, it can be suggested that talent hire needs to focus on strengthening its B2B model by partnering with more multinational companies that outsource their work to other firms. It should focus on providing proper training and guidance to the student that wants a job in a specific field so that they have the specific capability of being selected in any of the enterprises. This will help in recruiting the right individual and achieving company goals.
- Thirdly, in the current scenario, the employees want to be part of a firm that provides a healthy and safe working environment to them. They want flexible or hybrid working hence talent hired by focusing on providing work life balance to employees is able to reduce their stress level (Zutshi al. 2021). Thereby, engage all of them in the decision making process, or find more creative and innovative ideas of doing things in a different manner for the success of the enterprise.
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