Strategic Analysis of ABC Consultants Pvt. Ltd.

1. Strategy Analysis of
ABC Consultants Pvt. Ltd.
By Group – 4
ShahbaazAhmed
Atul Dhaneshwary
Kanika
Swati Sharma
Biprajit Das
Ankit Chaudhary

2. Industry Overview
• Services constitute a major portion of India’s GDP with a 57 per cent share in GDP in 2013-14
• India has the second fastest growing services sector with its compound annual growth rate at
9% just below China’s 10.9 %, during the last 11-year period from 2001 to 2012, (Economic
Survey for 2013-14)
• Consulting - Business of providing advice to firms in trouble, on the move, or trying to do what
they do better, faster, and more cheaply.
• Annual growth rate of consultancy services – 30%, progressing rapidly towards becoming a
Rs23,000-crore industry by 2015.
• Largest concentration of consultancies in metropolitan cities. (Delhi being the highest -25.7%)
• Major players- HR One, Manpower, Planman consulting, Mancer consulting etc.

3. Company Overview
• ABC Consultants- Leading executive search & selection firm, pioneer of organized recruitment services.
• Annual Revenue: -INR 100 to 500 Cr (according to online sources)
• Founder & Executive Chairman- Dr. Bish Agrawal (1969), headquartered at New Delhi.
• Managing Director- Shiv agrawal
• 9 Offices in 7 major cities and overseas presence in London & Dubai.
• 290+ consultants with years of experiences in leading national & international companies.
• Senior & middle management recruitment solutions through domain specialist.
• Helped over 350 multinationals to setup & staff their india operations.
• 4 Group businesses- ABC Consultants, FlexAbility (Outsourcing solutions), Headcount (Junior management
recruitment) , Headhonchos.com (Online Portal)

4. Mission &Vision Statement
• Mission- “Building Careers, Building Organisations.We believe that our success is best
reflected through your success.”
• Vision- “To be the largest domestic executive search firm in India & to redefine middle &
senior level recruitment with our role as trusted consultants for Indian professionals”.

5. Business Model
1. Who it serves? - Middle & senior management talent recruitment across various industry segments for MNC’s &
Indian business houses.
2. What it provides?-
a) Products- Software development, Database consulting, Infrastructure management.
b) Expertise- Automobile & auto components, Consumer & services, Financial services, Engg., R&D services,
FMCG, IT, Outsourcing,Telecom, Retailing & Healthcare.
3. How it provides?-
Understanding
Mapping
competencies
Search target
plans
(Company,
People
Mapping)
Final Shortlist Evaluation Interviews
Reference
check
Post joining
Follow up

6. Business Model
4. How it differenciates & sustains competitive advantage?-
• Strong relationship with govt. & pvt. sector
• JCCs presence (Job & Career Centers)
• Service projects bundled with hardware sales
• Technical expertise tools & financial resources
5. How it makes money? –
• Products/Services
• Price- Market penetration &Value based pricing
• Place- JCCs marketing team, support teams
• Promotion- Personal selling, Sales promotion

7. PEST Analysis
Political Factors Economical Factors
1. Modi Govt. promised more internal roles & external
opportunities in recruiting firms.
2. More recruiting companies expected to be opening up.
1. New portal, “Headhonchos.com” launched for senior
level recruitment headed by Uday Sodhi.
2. B. P Agrawal set to head “ Stanton Chase India” leading
to bigger branding.
Social Factors Technological Factors
1. Platform for hiring talents.
Eg.-Approached by upcoming music directors to hire
marketing head for them to get lucrative deals.
2. Harpreet Datta, Executive Director & Chief People
Officer, won theWoman SuperAchiever Award at the Asia
Pacific HRM Congress Awards 2012.
1. Joint venture with Manpower to integrate ABC’s verticals
(IT, ITes & retail financial services) to Manpower services
India.
2. In 2011 ABC Consultants won the “Drive Into the Big
League” competition to select an Indian SME that would
have its company logo displayed on theVodafone McLaren
Mercedes cars at the 2011 Indian Grand Prix.

8. Porter’s 5 Forces Model
• Existing Industry competitors- Manpower consultants, HR One Management
consultants,Adecco India, AON Hewitt
• Potential Entrants- Shella consultancy, Unio consultants, Ajeets recruitment,
Symmetrical management consulting.
• Bargaining power of Suppliers- Over 350 consultants (Domain SpecialistTeams)
with years of experience in leading indian & international companies.
• Bargaining power of Buyers- MNC’s & Indian business houses for hiring middle &
senior management talents.
• Substitute Products- Personal consultancy, Online consulting.

9. External Factor Evaluation (EFE) Matrix-
Opportunities Weight Rating Weighted Score
Increasing trend in IT/IS service market 0.2 2 0.4
Outsourcing to reduce cost 0.2 4 0.8
Client’s staff lacks skills or are under staff 0.1 4 0.4
International vendors need local partners 0.15 3 0.45
Threats
Increased competition 0.1 2 0.2
Global financial crisis 0.05 3 0.15
Mergers & acquisitions of vendors 0.05 2 0.1
Difficulty in finding & retaining skill staff 0.15 3 0.45
Total 1 2.95

10. Competitive Profile Matrix- (CPM) Matrix-
Critical Success Factors Weight ABC Consultants
(Ratings & Weighted
Scores)
HR One Consultants Manpower Consultants
Software Development 0.100 2 0.20 3 0.30 2 0.2
Database Consulting 0.175 4 0.70 1 0.175 3 0.525
Infrastructure Management
Services
0.100 3 0.30 2 0.20 3 0.30
Customer Relationship
management
0.25 2 0.5 1 0.25 2 0.5
Marketing Strategy 0.125 1 0.13 2 0.25 2 0.25
Technical Resources 0.100 4 0.40 4 0.40 3 0.30
Financial Benefits 0.100 4 0.40 3 0.30 2 0.20
Strategic Partnership 0.025 4 0.10 2 0.05 3 0.075
Marketing Share 0.025 1 0.025 4 0.10 2 0.05
Total 1 2.755 2.025 2.4

11. Internal Factor Evaluation (IFE) Matrix-
Strengths Weight Rating Weighted Score
Strong Relationship with Govt. & Pvt. sector 0.02 4 0.08
JCCs Presence across nation 0.02 4 0.08
Partnerships with major players 0.02 3 0.06
Service projects bundled with hardware sales 0.25 4 1
Technical Expertise Pool 0.2 4 0.8
Financial Resources 0.1 4 0.4
Weaknesses
Poor Marketing plan 0.1 2 0.2
Disconnected & Dispersed employees 0.13 1 0.13
Technical infrastructure not ready 0.01 2 0.02
Delays & Gaps in inter department communication 0.15 1 0.15
Total 1 2.92

12. Value Chain Analysis
• Pre Sales
• Estimation Bidding
• Project Management Installation
• Maintenance contracts
• Customer Relationship Management
Primary
Activities
• Infrastructure (General Mgmt, Project Mgmt, Strategic
Planning)
• Accounting & Finance
• HR (Recruiting,Training & Development)
• Procurement (Purchase of hardware, services, sub contracts)
Support
Activities

13. VRIN Analysis
Tangible
Resources
Rare Valuable Inimitable Non
Substitutable
Implications for Competitiveness
Financial No Yes No No Competitive Parity
Organizational Yes Yes Yes Yes Sustainable Competitve Advantage
Physical Yes Yes No No Temporary Competitive Advantage
Technological No Yes Yes No Temporary Advantage
Intangible
Resources
Innovation Yes No No No Competitive Parity
Human Yes Yes Yes Yes Sustainable Competitive Advantage
Reputation Yes Yes No No Temporary Competitive Advantage

14. Recommendations & Suggestions
• Evaluations shows that the ABC initiatives have good potential.
Develop Project
plan
Build a Strategic
Architecture
Define clear
roles &
responsibilities
Define
measures &
targets
Implementation
for Strategy
Focussed
Organization