Table of contents 1. Executive summary ....................................................................................................3 2. Introduction .....................................................................................................................3 3. Overview economy in UK ........................................................................................3 4. Overview recruitment agency in UK ................................................................3 5. Macroenvironmental Analysis ............................................................................4 PESTEL Analysis 5.1 Political factors .........................................................................................................................4 5.2 Economic factors ......................................................................................................................4 5.3 Technology factors ....................................................................................................................5 6. Discuss and recommend option ...........................................................................5 6.1 Discuss .....................................................................................................................................5 6.2 Recommend option..................................................................................................................6 7. Microenvironmental Analysis ............................................................................6 Porter’s Five Forces 7.1 Rivalry among existing competitors..........................................................................................6 7.2 Bargening power of buyers........................................................................................................6 8. Conclusion ........................................................................................................................6 Reference List .....................................................................................................................7 Appendices ............................................................................................................................8 Appendix A Groupn Project Charter ........................................................................................8 Appendix B Group PESTLE Analysis ....................................................................................12 Appendix C Group Porter’s Five Forces Analysis..................................................................14
REFLECTIVE REPORT INNOVATION BRIDGE – ABOVE BOARD LTD Submitted to: University of Bedfordshire Submitted by: Ngo Huyen My Class: FUOB-12B Student ID number: 2212280 Ha Noi, 18th November 2022 Table of contents Executive summary Introduction .3 Overview economy in UK Overview recruitment agency in UK Macro-environmental Analysis PESTEL Analysis 5.1 Political factors 5.2 Economic factors 5.3 Technology factors Discuss and recommend option 6.1 Discuss .5 6.2 Recommend option Micro-environmental Analysis Porter’s Five Forces 7.1 Rivalry among existing competitors 7.2 Bargening power of buyers Conclusion Reference List .7 Appendices Appendix A Groupn Project Charter Appendix B Group PESTLE Analysis 12 Appendix C Group Porter’s Five Forces Analysis 14 Executive summary Above Board is a staffing firm in North London that has only been open for business for 18 months Though they lost money in the first year, they expect to make over £100k this fiscal year The objective is to get people thinking about ways to grow their businesses, namely how a temporary offer or expanding into a new industry in recruitment agencies might work The second choice, particularly its development into a renewable energy recruitment, is the subject of this report's examination and concentration The government has mandated that all electricity in the United Kingdom must come from 100% zero-carbon generation by the year 2035 as part of its aim to attain net zero by the year 2050 As a result, there will be more job opportunities in the UK because of the rise in demand Introduction The report will evaluate and analyze the factors in the external environment that have an impact on the recruitment industry in London Following that, I will provide the appropriate discussion and option for the Above Board Company There are four main parts to this report The first part gives a brief overview of the economy and recruitment agencies in the UK The following section will discuss macro-environmental processes using PESTLE, which has three main characteristics The last two parts analyze micro-environmental factors based on Porter’s Five Forces and discuss the second option, which is recommended Overview economy in UK As a result of severe inflation and tighter monetary policy, growth will decelerate significantly this year Downside risks include a continuing conflict in Ukraine and the emergence of new Covid-19 versions, while favorable risks include increased government funding PwC reports that the UK economy declined by 0.6% in June 2022, with growth being highly uneven across different regions Despite the fact that economic output was 0.9% higher than it had been before the epidemic in February 2020, several regions continued to struggle to break through to new heights, thus widening the regional growth gap Despite the rest of the United Kingdom shrinking by between 1.2% and 0.3% since the beginning of the epidemic, the latest data shows that London is increasing at the quickest rate (in Q3 2021) As a result of government initiatives, energy price increases will have less of an effect on family electricity bills, causing inflation in the United Kingdom to peak at 10.5% in 2022 Economic growth is projected to be negative for the remainder of this year, suggesting that a recession is already underway As a result, GDP is projected to shrink by 0.2% in 2023 compared to 2022 Overview recruitment agency in UK According to the Recruitment and Employment Confederation, professional recruitment and staffing agencies contribute £7.7 billion to the annual growth in productivity in the United Kingdom by using their skills to place individuals in appropriate positions But with only 52% of Brits believing that businesses in their country are doing a good job at efficiently hiring new employees, there is a lot more that can be done to improve the situation It is estimated that the total cost to an organization of making a poor hiring is three times larger than the compensation that is paid; hence, getting recruitment right has the potential to be a significant driver of economic recovery More than twice as many people find permanent work through the recruiting sector as through the Job Center each year This means that the recruitment industry helps more than 300,000 unemployed people find work each year Sixty-three percent of companies surveyed claimed that engaging with a recruitment agency has helped them increase the diversity of new candidates in their workforce The annual tax revenues that are supported by the jobs that are matched by the recruitment business are £29 billion, which is enough to quadruple the government's R&D (research and development) budget Macro-environmental Analysis PESTLE Analysis: A PESTEL analysis is a strategic framework commonly used to evaluate the business environment in which a firm operates However, I will analyze three factors mention below that I think is most impact on recruitment industry 5.1 Political factors Economist Jack Kennedy argues in his evaluation of the United Kingdom's labor market for 2021 that Brexit has made it more difficult for citizens of the European Union to relocate to the country and find work As if that weren't enough, a new points-based system for sponsoring new workers from Europe and the EEA has emerged, and the future of harmonized data provisions with Europe is questionable Since the UK already has a skills shortage, losing EU workers might make the situation much worse, placing stress on a wide range of sectors, including the recruiting industry From 2015 through 2022, GOV.UK reports that the tax rate on small profits (those under £300,000) is 19% and the tax rate on large profits (those over £300,000) is 30% The administration has announced that the increase in the main Corporation Tax rate to 25%, as well as the reduction in the small earnings rate of tax, will not take place This means that in 2023, the Corporation Tax rate will remain at 19% 5.2 Economic factors In 2022, the employment rate in the United Kingdom is predicted to be 75.5%, while the unemployment rate is predicted to be 3.6% by the Census of 2021 The economy is dynamic, with a high GDP and a wide range of industries, but it is struggling with inflation and growing costs of living In light of this, recruiting agencies have a wide-ranging effect on the UK economy: (1) The UK's production is greatly influenced by recruitment agencies: Due to the £86 billion in gross value added that the recruitment sector supports each year, it directly contributes to increasing the competitiveness and productivity of the UK economy Additionally, the employment sector makes it simpler for companies to locate the talent they require (2) New employment opportunities and a more diverse labor market are produced by recruitment agencies: The employment services industry contributes to social mobility by helping people enter the labor for the first time, re-enter the workforce after being laid off, or further their careers by showing them how their skills can be used in other fields Thirty percent of temp workers said they didn't think they could get comparable work without using an agency Every 21 seconds, someone utilizes a staffing service to find a permanent job Sixty-two percent of organizations claimed that using a recruiting agency helped them interview more candidates, and sixty-three percent said that it increased the diversity of their new recruits (3) Recruitment agencies aid in hastening UK’s economic recovery: Recruitment activities were important to the survival of life-support services during the height of the pandemic Continuing to play a vital role in assisting businesses with changes like long-term remote working, the industry will contribute to a more diverse and inclusive labor market The recruitment industry helps maintain low unemployment rates by facilitating labor market flexibility While only 28% of large companies are considering recruiting remote workers, 45% of companies have tried out alternative work schedules The United Kingdom might gain £9 billion in increased output if more people began working remotely 5.3 Technology factors The proliferation of high-tech smartphones, tablets, and computers in the UK has made it much simpler for staffing agencies to reach potential employees on the web and through social media There has been a dramatic shift in the ways in which recruiters source prospects, make hiring decisions, and communicate with those they've chosen to interview The UK has one of the greatest internet penetration rates in Europe, with over 85 percent of the population using the internet at least once a month More and more people and businesses rely on constant access to the internet and social media, whether they're at home, at the office, or on the go It seems that British SMEs participate in a wide range of social media platforms The most popular ones are Twitter and LinkedIn, with Facebook coming in at a close third Applicants can demonstrate their job-seeking prowess, and employers may locate them more easily It will have an influence on enhancing the efficiency and quality of the employment process Also, by relying on technology, you can save money and avoid making any mistakes in the hiring process Candidates' resumes and application materials can be sent via these ways As a result, HR departments can save money on man hours and paperwork Discuss and recommend option 6.1 Discuss Based on the current state of the Above Board, there are two proposed options: working on a temporary offer or continuing the company's recruitment industry but expand it to another field After analysis, the first option has no effect on the contrary However, the second project brings more benefits to the company so the following section will show more clearly 6.2 Recommend option There is no need for Aboard Board to operate in any other industry because the three areas it is recruiting for are still highly developed and essential in the United Kingdom The corporation would be better served by increasing hiring in alternative energy The government has mandated that all electricity in the United Kingdom must come from zero-carbon generation by 2035 as part of its plan to achieve net zero emissions by the year 2050 (Nationalgrid) The United Kingdom is well on its way to developing an electricity grid that relies solely on clean, renewable energy Department for Business, Energy, and Industrial Strategy data shows that renewable energy generation capacity increased by 6.5% compared to the same quarter last year, with offshore wind growth of 23% After a prolonged period of slower expansion, renewable capacity growth has picked up in recent quarters Renewable power generation capacity has increased sixfold since the same quarter in 2010 Unlike conventional energy sources, renewable ones not pollute the environment and not cost anything to maintain Tidal generators and hydroelectric power plants both generate significant amounts of power According to the UK Energy Research Centre, for every additional gigawatt hour of renewable electricity generated each year, 3.5 new permanent employment can be created in the UK's power sector Energy from renewable sources has the potential to generate up to 150,000 additional net jobs in the United Kingdom by 2030, based on the decarbonization scenarios indicated in the Security of UK Energy Futures report Many more job openings will be available as a result Micro-environmental Analysis Porter’s Five Forces: Each industry is shaped by a unique combination of Porter’s Five Forces, and understanding these forces can shed light on where an industry is in terms of its relative strength and where it may need to improve Based on the Porter’s Five Forces I mention in appendix C, I think that there are two forces which is most impact on the new sector of Above Board Company 7.1 Rivalry among existing competitors There has been a dramatic increase in the renewable energy sector in recent years And as the renewable energy industry continues to grow, more and more businesses are wanting to expand their workforce Similarly, there has been a rise in the number of people considering careers in the sector Therefore, seeking advice from an executive search and employment business is your only option for filling open positions in the renewable energy sector There are 430 staffing firms in the renewable energy sector, as reported by Agency Central The result is intense rivalry among recruitment agencies, particularly those of a smaller or medium size 7.2 Bargening power of buyers Clearly, there are numerous choices besides from using recruitment portals to advertise open positions It is now possible for companies to use social media to find qualified personnel Flyers are often used as a first point of contact for candidates, especially by smaller businesses Conclusion Since the UK's demand is going up and people are becoming more aware of the environment, and since the recruitment agency is still doing well in the current industries, it should hire more people for renewable energy This has kept the company's recruitment business growing, and it also has a big effect on the growth of renewable energy in London and the UK as a whole Moreover, it will create more job opportunities for the people of the UK and bring many benefits for the environment in UK in particular and the world in general References Recruitment market update 2022 (2022) Signature Recruitment Available at: https://www.signaturerecruitment.co.uk/recruitment-market-update-2022/? fbclid=IwAR1y5ztpPNn1zjkD9lljImwu9hvIsUMcsAMJsUvEDEfVaU78nVl6hszdlKc (Accessed: November 18, 2022) trends, M.G.F.analysis of market (no date) Why the recruitment industry is crucial in the recovery of the UK economy, ManpowerGroup Available at: https://www.manpowergroup.co.uk/the-word-on-work/recruitment-industry-crucialrecovery-uk-economy/ (Accessed: November 18, 2022) Rates and allowances for corporation tax (no date) GOV.UK Available at: https://www.gov.uk/government/publications/rates-and-allowances-corporation-tax/ratesand-allowances-corporation-tax?fbclid=IwAR3gNroQINo-PiwTCpqWtQ4CVWwesZmeItJHCvknGSi8Nv90NwwgMwaXE0%5C (Accessed: November 18, 2022) Tell us whether you accept cookies (no date) Home - Office for National Statistics Available at: https://www.ons.gov.uk/?zarsrc=30 (Accessed: November 18, 2022) Published by Statista Research Department and 20, S (2022) Countries with the highest internet penetration rate 2022, Statista Available at: https://www.statista.com/statistics/227082/countries-with-the-highest-internet-penetrationrate/#:~:text=As%20of%20July%202022%2C%20Denmark,their%20population %20accessing%20the%20internet (Accessed: November 18, 2022) Social Media Guide (2019) Business Culture Available at: https://businessculture.org/northerneurope/united-kingdom-business-culture/uk-social-media-guide/ (Accessed: November 18, 2022) Witts, J (2022) Brexit - the truth about the effects on your recruitment, Clear Engineering Recruitment Available at: https://clear-recruitment.co.uk/brexit-the-truth-about-the-effectson-your-recruitment/?fbclid=IwAR2w599MGWAIZnbN6PktbcItgb9MViJAbmvpfM4197foQub78CZABIc-FY (Accessed: November 18, 2022) UK labour market 2021 review and 2022 outlook: How long can the job market keep roaring back? (no date) Indeed Hiring Lab Available at: https://www.hiringlab.org/uk/blog/2021/12/15/labour-market-2021-review-2022-outlook/? sid=uk_tmp_ca_brand-q1-2021-tier-3_pr ch_supplied-article_au_enterprise_cr_telegraph (Accessed: November 18, 2022) Published by N Sönnichsen and 18, F (2022) UK: Projected demand for energy from renewables 2040, Statista Available at: https://www.statista.com/statistics/508432/projected-primary-energy-demand-renewablesand-waste/ (Accessed: November 18, 2022) PricewaterhouseCoopers (no date) UK economic outlook September 2022, PwC Available at: https://www.pwc.co.uk/services/economics/insights/uk-economic-outlook.html (Accessed: November 18, 2022) "Green industrial revolution" and the long-term effect of renewable electricity on UK Employment (2018) UKERC Available at: https://ukerc.ac.uk/news/green-industrialrevolution-and-the-long-term-effect-of-renewable-electricity-on-uk-employment/ (Accessed: November 18, 2022) Home (2022) The REC Available at: https://www.rec.uk.com/ (Accessed: November 18, 2022) Appendices Appendix A: Group Project Charter 10 11 Appendix B: Group PESTLE Analysis 12 13 Appendix C: Group Porter’s Five Forces Analysis 14