BBM 310 Innovation and Entrepreneurship

BBM 310 Innovation and Entrepreneurship

1. Business Description

A. Service

The main product is the Human Resource Recruitment service. This service will be delivered through the EZHIRE recruitment system. EZHIRE will have a system that consists a pool of professional and casual workers who are seeking employment or casual work. This system is a platform where workers meet employers or employers finds workers ready to work at any period of time.

B. Value proposition

EZHIRE is an Online application based day to day Human Resource recruitment system which links people looking someone to work and people looking for work. We are bringing the gap between employers and workers both in corporate and domestic settings. Qualified workers are registered with the system. Job seekers will register with the application and put their expertise information in their respective area. Employers will register or just browse the application as a guest to find a suitable person for the job. Payment will be online through service provider on standard rates as per entrepreneurship and innovation market. Every employee will be given rating according to their past performance and they will get more jobs. Employers will also be rated according to their history i.e. payment or their treatment with the employees. Only workers who are available are made available at any given period of time. Also, the rating of the workers is to be monitored over time and workers who have a rating of below 3-star rating after 10 reviews are removed from the system. Also, the employers who are reported to be abusive are also blocked from hiring from the system. The main focus of EZHIRE is to solve the issue of unemployment as well as reduce the cost of hiring in the market. EZHIRE would also focus on ensuring that only the qualified workers are given the chance to work and let the other workers improve on their skills. There is a huge market of day to day recruitment at corporate and domestic level. There are factories and some other businesses where shortage of employees on day to day basis is managed through outsourcing i.e. agency hire. On the other hand, there is domestic market of day to day service hiring to cope with electrical and other breakdowns at home. Other role will be HR data bank which will help companies to get suitable employees and job seekers to find jobs (permanent or long-term basis). Company will also take responsibility of the authenticity of the qualification, experience and other documents on behalf of the potential employee as company will verify all of them beforehand.

C. Location

EZHIRE is an online Human resource recruitment service aiming to serve mainly the local market of Australia. The headquarter offices would be located in Sydney but the system would serve the entire market of Australia.

2. Industry and competitor analysis

To understand the industry in which EZHIRE would operate in it would be necessary to apply the Michael Porters five forces model and understand all the aspects of the industry. The following are the industry aspects that EZHIRE would operate in during its daily provision of goods and services (Dobbs, 2014).

A. Competitive Rivalry.

Competitive rivalry involves checking and analysing the strength and the number of rivalry that EZHIRE have and compare the quality and of the services that they provide as compared to our services. Competitors will be other applications like seek.com and agencies who have physical presence in the market providing HR to companies. EZHIRE competitive advantage is that it will have a pool of qualified workers who would be ready to work at any given time that they are required by the employers.

B. Supplier Power.

The supplier power involves the analysis of available suppliers of goods and services that are needed by a company in the industry and also looking how their products are unique and how their behaviour could influence the overall performance of the company. EZHIRE is an online platform that requires less of supplier’s goods and services. In this industry, there are suppliers who offers services such as system development, data security and data warehousing. There are many qualified suppliers who offer these services at an affordable stable price. The ability of supplier substitution is high in case the hired supplier does not meet the expected results at any given time (Blank, 2013).

C. Buyer Power.

The buyers power focuses majorly on the buyers who are there in the market to buy the goods and services that are produced by the company. The buyers power is determined by the number of the buyers available in the market to buy the goods and services offered by the company at any given period of time. With many buyers the buyers power is weak and with few buyers in the industry the buyers power is very strong. The buyers of EZHIRE services would be specifically the workers seeking for work and the employers seeking workers. In the Australian market there are many people seeking for work and also there are so many employers seeking workers. This weakens the buyers power in the industry (Pappas, 2016).

D. Threat of Substitution.

This refers to the ability of customers finding other similar products in the market and using them instead of the company’s products. The threat of substitution is lower in the market however, there are alternative products that the customers may opt to take over the EZHIRE products. These are the products provided by other human resources agencies and the online recruitment services (Greene, 2017). These are the only threats in the industry however they don’t have a working model as EZHIRE.

E.Threatof New Entry.

There are few barriers to entry in this industry. This increases the threats of new entrants in the market. This calls for need of differentiation between EZHIRE and the other players in the industry as well as the other players who might enter the industry.

3. Marketing

A. Target market (customers)

The targeted market are all employers and job seekers in the Australian market. The employers involve corporate and domestic employers. The job seekers will consist of all categories of workers in the industry. This involves the individuals with who have professional skills and experience in different fields to technical workers both for domestic and corporate workers. The customer segment will include everyone who needs work regardless what kind of work they are in need of any mature and the employers who are willing to offer this work.

B. Market size

In Australia the level of unemployment stands at a rate of 5.6%. This level consists of qualified workers who do not cannot be identified by the potential employers due to lack of a good platform to connect the two. Also, there a number of employed workers who are not satisfied with their work. Also, there are employers who are not satisfied with the workers who are available in their work but they are afraid of replacing them since they don’t know where exactly they can get better workers. This therefore, increases the market size for human resource services.

C. Marketing strategy

The success of EZHIRE will be influenced highly by the model that they opt to adopt in marketing the human resource services to its customers. The marketing model adopted should be focused on reaching the EZHIRE targeted customers and ensuring that they get understanding of the services provided by EZHIRE. There are two different types of customers to who would buy the services. These are the workers and the employers. The employers are further divided into corporate employers and domestic employers. These customers would need a different strategy to reach them in the market. Therefore, EZHIRE would adopt the following marketing strategies to get to its targeted customers.

1. Business to Customer (B2C) Marketing Strategy

Business to Customer marketing strategy is the strategy that involves marketing the products and services of EZHIRE directly to the targeted customers through different promotional means. The main aim is to make the customer aware of the services that EZHIRE with an aim of increasing sales and make more profit. This strategy would focus on the employers and workers both in domestic and corporate world who are the primary customers of the EZHIRE. This would be done through a marketing that is more focused on reaching these two sets of customers. This mainly is done through sensitizing the public and the customers on the importance of using the Human Resource system to get workers and also to get work as well. The marketing also would involve encouraging the customers to create accounts with EZHIRE for ease of getting workers and employers respectively.

2. Business to Business (B2B) Marketing Strategy

This is a strategy which involves one business to another business. EZHIRE will also help other business organizations that seeks to employ workers into their workforce. This strategy will focus mainly on corporate institutions to advertise their work and need of workers on EZHIRE as well as hiring their full time and casual workers from the system.

3. Customer to Customer (C2C) Marketing Strategy

This a strategy which EZHIRE won’t be involved in marketing its services. This part is left to the employers and workers to market themselves through the site. Through customer marketing they will also be marketing EZHIRE Human Resource system indirectly. The system will have a link and an option for the workers and employers to share their profiles and the work advertised on social media and other sites where they would be willing to market themselves. Also, the system will provide a downloadable link through pdf for the customers profile that they can use to market themselves and the same time market the system.

D. Pricing

Pricing is the strategy that is used to get revenue for the service that EZHIRE provides to the market for its customers at any given period of time. EZHIRE will adopt the market marketing strategy where it would charge its labour as per the prevailing prices in the market. Different works of labour would cost different prices compared by the market. The minimum price will be set but there will be left a room for negotiation between the employer and the worker. EZHIRE plans to obtain revenue through charging both the worker and the employer for using the system to get a job and a worker respectively.Company will make money by charging a certain percentage on each day to day transactions plus from companies on long term recruitment because it will save companies usual hiring cost.

E. Marketing communications (advertising, promotions)

To get the Human Resource to the market a marketing communication should be adopted through advertisement and promotions of the services of EZHIRE in the Australian market. Different marketing communication methods are to adopted and used to reach the targeted market in the industry at all times. Different strategies are to be used on different times to reach different customers in the market.

1. EZHIRE Official Website

EZHIRE will develop a human resource system where it would bring together workers and employers at the same time. This is the first platform where EZHIRE would market and advertise their services to its customers. This would be the most cheap method of advertisement since only little cost would be incurred inadvertisement. This is because it is its own official website and no one would charge them for advertising on the site.

2. Social Media

The increased use of smart phones and access to internet has increased the social media usage not only in Australia but also across the world. Almost everyone spends some time on social media daily. This cuts across the employers and workers most in domestic and corporate world. This makes marketing on social media a very helpful and important too to reaching many people who are potential customers. Social media also incurs low cost of advertisement and reaches a wide range of targeted market. Also advertising on social media, one can tailor the advert to only the right people who are being targeted by the advertisement instead of advertising to everybody who is on social media. The social media which would majorly be used are Twitter, Facebook, Google+ and YouTube. (Ryan, 2016.).

3. Publications

Newspapers and magazines are the major publications that are effective in advertising through them. Though the cost of advertisement is a bit high the advertisements reaches a large group of people and also the publications can be used later for reference. Also, EZHIRE would develop its own monthly magazine which it will use it majorly as the means of advertisements.

4. Billboards and Broadcasting Communication Media

Television and radio broadcasting media have a large audience. All Australian citizens have either an access to a radio or a television every day. This is a where EZHIRE would advertise its services. Billboards also serve another market that it’s not yet touched by any other strategy. Therefore, its necessary to use them in the advertisement of the products of the organizations Management

F. Management team

Management team will consist of HR specialists who will professionally deal each case. In this case qualified Human Resource Specialist would hired and put on board specifically to deal with selection of workers who applies for working accounts on EZHIRE. Also in the management team there will be an Information Technology Specialist who will help the management on the matters and issues that pertains to the system development and maintenance.

G. Legal structure

EZHIRE would operate as a private limited company registered under Australian Registrar of companies and follow all the legal requirements that a private limited company is entitled to following in the market. The company will be held and led by board of directors who would manage and regulate all the issues pertaining the company.

4. Financial

A. Resources required

EZHIRE to be launched and start working it will need the following resources:

1. Human Capital

These are the personnel who would be needed to carry daily activities of monitoring, shortlisting and managing workers in the EZHIRE system. The human resource personnel would consist of mainly the Human resource specialists and Information Technology specialists.

2. Finances

EZHIRE just like any other business would require finances for start up and running everything that would be conducted by the system at all time.

3. Equipment’s and Machineries

Setting up the EZHIRE Human resource system there will be a need of equipment’s such as computers and internet equipment’s to enable the staff to access the system on internet and manage the portfolio of workers on the site.

B. Set-up cost

EZHIRE to start using the Human Resource system it will need $3500. This amount of money will be divided among various items. First, $ 500 would be required in planning of the system and brainstorming possible alternatives of developing the system. Secondly,$1500 would be required to in sourcing and hiring of staff as well as development of the system. Lastly, $1500 would be used in marketing and administering the system as well as shortlisting the workers and employees who apply to be included on the system.

C. Financial forecast

EZHIRE expects to make over $ 10,000 net profit in the first year of operation. This amount is expected to rise with an increasing rate of 30% per year. EZHIRE is expected to hold a cashflow of a minimum of $ 50,000 during the first year of operation with an expectation of increasing rate of 30% yearly.

D. Break-even analysis

EZHIRE breakeven is expected to be realised in its fourth month of operation. At this time the system is expected to have brought back all the total investment. At this time the company would not have made any profit or loss.

5. Risks

1. Risk identified

Workers and employer give their private information to the system. If this information lands to the wrong hands this would be a major challenge since can be used maliciously. This is a great risk that cannot be assumed.

2. Risk management strategies

To mitigate this risk EZHIRE would hire information security specialist. In this case EZHIRE would hire its own staff who would be responsible to securing the information that it doesn’t land in wrong hands.

6. Milestone Schedule

References

1. Blank, S., 2013. Why the lean start-up changes everything. Harvard business review, 91(5), pp.63-72.

E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), pp.32-45.

2. Hopp, C. and Greene, F.J., 2017. In Pursuit of Time: Business Plan Sequencing, Duration and Intraentrainment Effects on New Venture Viability. Journal of Management Studies.

3. McKeever, M., 2016. How to write a business plan. Nolo.

4. Pappas, N., 2016. Marketing strategies, perceived risks, and consumer trust in online buying behaviour. Journal of Retailing and Consumer Services, 29, pp.92-103.

5. Porter, M.E. and Heppelmann, J.E., 2014. How smart, connected products are transforming competition. Harvard Business Review, 92(11), pp.64-88.

6. Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Innovation Entrepreneurship and small business.

7. Solomon, M.R., 2014. Consumer behavior: Buying, having, and being (Vol. 10). Upper Saddle River, NJ: Prentice Hall.