EPR 511 : Entrepreneurship & New Ventures (-)
Assessment Guidelines “Business Report for a new venture”
Develop a group business idea for a new venture, implementing the theoretical material you have covered. Groups should ideally be of two people or three. This assignment is intended to be the application of theory so we do not want theory reproduced, but the application of theory to the project.
The team will then write a business report that is no longer than 30 pages of texts and exhibits.
It Is important to note what was your contribution and what was the contribution of others.
The business report is used the course outline. Therefore, there is no need to reference material in an academic sense but demonstrate application of principles.
The project plan should cover all of the elements of the course and should also cover the following:
1. Executive Summary
· Up to 250 word description of what the business idea is;
· Where is the project located;
· Who is the owner and sponsor (they may be the same organisation);
2. Introduction
3. Factors Influencing the Entrepreneurs in this venture
4. Innovation Imperatives
· Explain is the new venture Incremental or Radical innovation and why?
5. Visualizing Opportunity
· In general, by looking into you and your team, the market, and the competition.
6. Sources of New Ideas
7. Opportunity Assessment
· Product or services, or both, Market, Team, Steps
8. Business Model Canvas
9. Blue Ocean Strategy
10. Feasibility Analysis
· Product or Service Feasibility, Target Market Feasibility, Organizational Feasibility.
11. Financial Plan
12. Conclusion
Entrepreneurship & New Ventures - EPR 511
Final Project
Human Resources Software Company
Done by:
XXXXX
XXX
Submitted to:
XXX
Human Resources Software Company
2
Table of Content
Abstract ................................................................................................................................... 3
Introduction ............................................................................................................................ 4
Company profile .................................................................................................................... 7
About us: ......................................................................................................................................... 7
Our Mission: ................................................................................................................................................................. 7
Our Vision: .................................................................................................................................................................... 7
Values: ...................................................................................................................................................... ...
1. EPR 511 : Entrepreneurship & New Ventures
(-)
Assessment Guidelines “Business Report for a new venture”
Develop a group business idea for a new venture, implementing
the theoretical material you have covered. Groups should
ideally be of two people or three. This assignment is intended to
be the application of theory so we do not want theory
reproduced, but the application of theory to the project.
The team will then write a business report that is no longer than
30 pages of texts and exhibits.
It Is important to note what was your contribution and what was
the contribution of others.
The business report is used the course outline. Therefore, there
is no need to reference material in an academic sense but
demonstrate application of principles.
The project plan should cover all of the elements of the course
and should also cover the following:
1. Executive Summary
· Up to 250 word description of what the business idea is;
· Where is the project located;
· Who is the owner and sponsor (they may be the same
organisation);
2. Introduction
3. Factors Influencing the Entrepreneurs in this venture
4. Innovation Imperatives
· Explain is the new venture Incremental or Radical
innovation and why?
5. Visualizing Opportunity
· In general, by looking into you and your team, the market,
and the competition.
6. Sources of New Ideas
7. Opportunity Assessment
2. · Product or services, or both, Market, Team, Steps
8. Business Model Canvas
9. Blue Ocean Strategy
10. Feasibility Analysis
· Product or Service Feasibility, Target Market Feasibility,
Organizational Feasibility.
11. Financial Plan
12. Conclusion
Entrepreneurship & New Ventures - EPR 511
Final Project
Human Resources Software Company
Done by:
XXXXX
XXX
Submitted to:
XXX
Human Resources Software Company
2
3. Table of Content
Abstract
...............................................................................................
.................................... 3
Introduction
...............................................................................................
............................. 4
Company profile
...............................................................................................
..................... 7
About us:
...............................................................................................
.......................................... 7
Our Mission:
...............................................................................................
.................................................................. 7
Our Vision:
...............................................................................................
..................................................................... 7
Values:
...............................................................................................
............................................................................. 7
The Strategist of the project
...............................................................................................
.. 9
Opportunity Recognition and the Opportunity Assessment Plan
................................. 9
Opportunity checklist:
...............................................................................................
4. ......... 18
The Business Model Canvas
..............................................................................................
19
Our packages are:
...............................................................................................
................ 25
Actions framework (Eliminate, Reduce, Rise and
Create)........................................... 29
Feasibility Analysis
...............................................................................................
.............. 30
Financial
Feasibility:..............................................................................
.................................. 31
Conclusion
...............................................................................................
............................. 43
References
...............................................................................................
.............................. 44
Human Resources Software Company
3
Abstract
5. Three co-founders combining their professional and educational
skills to form a business
startup of Human Resource Software Company. According to
the development of technology
and the new Saudi Arabia‘s vision of 2030, it helps the
companies to look for improvements
and challenges to enter the global market. Nowadays most
companies look to eliminate the
waste specially by decreasing the expenses as much as they can.
The future innovation in
technology will eliminate various jobs in market, and one of the
jobs eliminated will be
human resource jobs because companies will depend more in
technology than staff of
employees. Our objective is to give our clients all Human
Resources services that make them
successful. Our services will give the clients the right way to
compete on the global market
because our employees have an experience and knowledge of
the trends in global market and
we will fulfill that need with developing unique resources to
makes our services more
professional. The main objective of our project is to make the
local companies compete on
6. the global market and be the leader of Human Resources
software services in Saudi Arabia.
We choose this project because we researched for the demand of
a need of HR software in
the market of KSA by providing service to the employees saving
their cost and time.
Human Resources Software Company
4
Introduction
• What Is Entrepreneurship?
Developing a HR Software which will be focused on creating a
workplace that
complies with government regulations for compliance, safety,
and health providing
legal protection for your company. Regulations changes often
by the government,
which is where a dedicated HR software company team can help
ensure you‘re in
compliance with government laws.
• Corporate Entrepreneurship
7. Corporate entrepreneurship involves vast business structure
which is followed based
on the hierarchy of the business organization.
• Stages to Establish Startups Firms
1. Concept research
2. Detail analysis of market
3. Feasibility study
4. Creating and establishing plan
5. Starting up the business
• Factors Influencing an Entrepreneur
Economic factors, Political Factors, Social factors,
Geographical factors
• Creativity and the Business Idea
It generally involves creating the human resource requirement
and need in the
domestic market and standing based on the need and demand of
the market.
• Trends
Personalization, Development of user-friendly software, Hiring
professionals,
implementation and generation
8. • Sources of New Ideas
Human Resources Software Company
5
Each day new rules and regulations are implemented by the
MOL thus generating the
idea by providing the required service is very important to keep
the track in the
market for the HR needs.
• Opportunity Assessment Plan
It is a plan in which the opportunities are found and the
implementation is done based
on the business model.
• Strategy & Innovation
The software technology will help HR departments. Human
Resource Information
Systems to track employee time, recruit new employees, manage
paychecks and
benefits, automate administrative tasks, track compliance, keep
records, and much
more. However. HRSC will have all the features that are
9. required to be part of Saudi
Labor market and it doesn‘t mean your company needs to spend
the extra cash to
purchase everything. Your HR can take some services if he feels
that work is
overloaded for him.
• Blue Ocean Strategy
Blue ocean strategy is the simultaneous pursuit of
differentiation and low cost to open
up a new market space and create new demand. Blue ocean
strategy will help Human
resource Software Company to expand and grab the customers
in the market. As this
strategy is basically about creating and capturing uncontested
market space, thereby
making the competition irrelevant. Basically, Human resource
Software Company
will create the desire and demand for the Human resource as
already the market is
facing this issue because of lack of professionalism. So, it will
help Human resource
Software Company to capture the market as it will be the
innovation which will be
10. solving the problems of the companies in HR. The blue ocean
strategy is based on the
view that market boundaries and industry structure are not using
the given Human
Resource plans and it can be reconstructed by the actions and
beliefs of the innovative
players in the market. In blue oceans, Human resource Software
Company will create
the demand rather than following old process. There is ample of
opportunity for the
growth of Human resource Software Company that is both
profitable and rapid. The
key to Human resource software business success is to define
the terms of
competition and move into the "blue ocean," where the space
for HR tools are for
Human resources only. The goal of these strategies is not to
beat the competition, but
Human Resources Software Company
6
to make the competition irrelevant so that HR can not only
benefit but also expands
11. its areas of operations.
Traditional Human Resource Human Resource software
Company
Low System adoption
High cost
Made from Firms own strategy
Involved Less numbers of Labor
Need Time
Takes more days to solve
Simplifying the work on System
Low cost
Works on Domestic Requirement
Involves more numbers labor
Informs about time
More work in less time
Human Resources Software Company
7
Company profile
12. About us:
We aim to provide services for local and multinational, smal l
and medium size companies
with online services. Our business includes dealing with
companies by providing services
such as; hiring, contract, training, attendants, terminations,
transfers of sponsorship,
performance appraisal services, rewards and benefits,
compensation and planning with
policies and procedures.
Our Mission:
―Be a leader by providing excellent HR software services to
customers to become the global
king in the Human Resources software services industry.‖
Our Vision:
To become the leading HR software services company offering
word class solutions.
Values:
Our priority is to satisfy our clients by providing solution in HR
needs with affordable
13. prices.
To be truthful and trustworthy in all types of business dealings.
We act ethically and professionally.
Human Resources Software Company
8
We are energetic and driven to do the best we can for our
clients
We add value to our client's businesses and establish long
relationships based on trust
and respect.
medium size or small
company, HR Software company saves your time, money and
effort. Support service
for small businesses.
14. Innovation: The world of work is changing at an un expected
rate. The question
before HR professionals is not whether they should adapt to
these changes or follows
with the old methods of HR strategy, to keep pace with the
needs of the business HR
software company is born. We are prepared to take hold of the
changes and
innovations into the future.
knowledge which you as
customers look for in relation to the job. We know that lack of
capability will lead to
unsatisfactory HR performance which in turn is likely to cause
problems for both
managers and colleagues. We have the capability to solve these
problems. In HR your
staff might be underperforming due to overload we give support
to them to improve
to the required standard of competence. Our policies are to set
commitment and
responsibilities in all HR area and provide you with information
and guidance on how
to solve this HR issues.
15. ce and
Learning are the part of a
healthy culture in professional growth, and working of
organization. We help
support HR and learning staff in their critical roles by providing
training, consulting,
and guiding them in this area. We connect with your teams in
HR and learning so as
to create a development to connect and post issues for real -time
solutions.
Human Resources Software Company
9
The Strategist of the project
1) The competitive services presently available filling this need
and their feature and
prices: (Radical doing something different) what makes the
company different
from others is it will provide Human resource solutions to the
small and medium
sized companies with the human resource planning and service.
16. It will not only be
limited to companies but also client who are actually working in
HR in their
respective firm by making their work load less and giving or
helping them to
create efficiency in working.
2) The companies in the service market space and the unique
selling proposition of
this service: There are some in the domestic market that provide
this kind of
services but we are the only company that provides packages
with suitable price
for startup companies. The price we offer includes all services
that come in HR
whereas the other companies do the work of outsourcing only.
We have our own
software which will guide the person using the step by step
work to make the
work easier for them.
Opportunity Recognition and the Opportunity Assessment Plan
1. The major section (Market need filled, social condition
underlining the market need,
any data available to describe the market need, the size, trends
17. and characteristics of
the domestic market, the growth rate of the market)
HR in Saudi Arabia is evolving at a fast rate to keep up with the
global market trends
and improvement in the local digital transformation that is
taking place with the
introduction of vision 2030. The country‘s educated and
youthful workforce is
accepting and operating well with new digital transformation
journey by observing
the changes in the international. Attracting, engaging,
developing and retaining talent
is reshaping the current Human Resource position, role and
expectation in the
kingdom of Saudi Arabia. The following data show the need of
HR requirement in the
domestic market.
Human Resources Software Company
10
The above data shows the country has 54.5% of the youth group
which will be in the
18. employment sector. Thus, creating a demand and need of the
HRS for different types
of firms.
The Labor Market results for Q3, 2018 showed that total
number of employees
reached 12,688,042 individuals, out of which the private sector
employed 70 percent
in the domestic market.
The illiteracy rate in the Kingdom of Saudi Arabia was 60
percent in 1972, but in
2018, the illiteracy rate was less than 5.6 percent.
Thus, from the data it can be said that the youthful society,
educated talent and a
nationwide transformation will influence HR trends in KSA.
Human Resources Software Company
11
The data collected by KPMG helps us in formulating or finding
that will there be
demand for our company service or not?
The above data shows that 63% of the human resource position
holders of the firms
19. agree that they are initiated with the new changes in the
government rules and
regulations where as 42% accepts that they cannot do the tasks
which are to be
followed by the company as per MOL rules.
It can be seen that 60% of the HR managers are not able to do
their tasks because of
the required capability or skills it means that 60% only have
degrees but no practical
experience of the HR work.60% cannot do HR tasks related to
IT or they lack
computer skills. 33% are not able to accept the exposure in their
work place. So, these
findings show us that business will need Human resource
software company to take
their service which will cover up their areas of lankiness. The
Chart below shows the
Perceived value of HR capabilities to the enterprise, top five
Saudi Arabia vs Global
(in %)
Human Resources Software Company
20. 12
.
Human resource is now required at every level of the
organization and play a key role
in top management decision making. By introducing Human
resource software, the
managers will find ways to cut costs and increase service by
efficiency.
2. Minor section:
Organizations in Saudi Arabia are facing significant challenges
especially due to
continuous changes in the external environmental factors.
Technological,
economical, demographical and political factors are affecting
how organizations
operate especially in Human resource department. In responding
to the external
challenges, Human resource Software Company will take
measures particularly
related to workforce to adapt to change and minimize the effects
on the small and
medium sized business organizations.
21. c trend:
The new Vision of Saudi Arabia 2030 will increase the
competitions between local
companies because of being under global standards. Nowadays.
Saudi Arabia is changing
to become beyond oil, and by this changing the country will
depend more on technology,
so the companies need to apply HR software systems to
eliminate their expenses. Our
Human Resources Software Company
13
clients will have a great human resource management services
packages that will increase
their HR performance by an excellent price with high quality.
With the changes taking place in the social trend of the
kingdom, the human resource
management by firms also needs to change. The women are now
working shoulder to
22. shoulder with females in all the areas of the business structure.
Our company human
resource software does not do any discrimination with gender
and is keen on simplifying
the task for both males and females. People are more willing to
use social media to
cooperatives and with all the introduction of new services in the
market. Using social
media and being updatable will help us to attract clients. Being
a part social
responsibility for example; volunteering and events will
increase the trust between us and
the clients. Helping the companies is one of our goals to have a
successful company.
As we wrote on the economic trends that Saudi Arabia now is
changing and the new
vision is helping us to become a global competitor. The
technology in Saudi Arabia is
updateable and most of the companies now are eliminating their
expenses and depending
more in technology than human. So our company will afford the
clients with new and
updatable services. For example, using training program
23. through online class system.
Registered via mobile application. Using Cloud system to
protect the data. All this
process will Save time and money.
The Ministry of labor has changed the old laws and created new
changes in the
employment regulations which are affecting a lot of the
companies. Most of the
companies now are eliminating their staffs so that they meet the
Saudization laws in their
company‘s size and number of employments. Also, the taxation
system is affecting the
savings of company as they have been imposed with collection
of 5% VAT and with this
the effect is seen on medium and small size companies. Our
services will help those
companies to get their work successfully done without any extra
payment for extra
employees.
Human Resources Software Company
24. 14
experience of the management
team?
The Professional HR teams of the company have a full
knowledge and background of
human resource management. The co-founders are graduates of
human resource
bachelor‘s degree program and they have a master in business
administration which is
specialized with HR, so they have gained vast experience and
with that a knowledge of
the business, they will manage and organize their work. They
are able to improve their
business and they have the ability to solve their problems. The
company idea is fitting the
co-founder human resource knowledge.
d needed?
The business skills that the company need are as follows:
Human recourse skills
MIS skills
Management skills
25. Organizing skills
As co-founders we have most of these skills. Our service
includes hiring a management
information system which will combine a team of employees to
design the packages of
services for us. One of the co-founders is a finance graduate and
she will do the financial
plan and how to have a finance system on the company. Also,
we will hire a manager
who has a management and organizing skills to help us on
managing our company to
achieve our goals.
(Planning, Organizing, Staffing,
Directing and controlling)
Planning: It is the basic function of Human Resource
management. Planning helps with
finding out a future course of action & deciding in advance the
most appropriate course of
actions for achievement of pre-determined goals. Planning is
determination of courses of
26. action to achieve desired business goals. planning is a
systematic thinking about ways &
means for accomplishment of human resource management.
Human Resources Software Company
15
Organizing: Human resource software will bring together
physical, financial and
productive relationship amongst different size of businesses for
achievement of HR
goals. To organize in Human Resource Software Company, it
involves determining &
providing human and non-human resources to the organizational
structure.
Organizing involves:
f.
Staffing: Staffing involves hiring of proper and qualified
27. employee for the Human
Resource software so that the main aim and objective is
established. The main
purpose of staffing is to put right man on job Staffing involves:
person and
giving the right place)
Directing: Directing is guiding the work in from the first
process to the last. As
without guidance no work can be successful. Direction is that
aspect of management
which deals directly with influencing, guiding, supervising,
motivating sub-ordinate
for the achievement of Human Resource software goals.
Direction involves
supervision of staff, Motivation, leadership and communication.
28. Supervision- implies overseeing the work of subordinates by HR
professionals. It is
the act of watching & directing how the work is done by the HR
staff.
Motivation- it involves inspiring, stimulating and encouraging
the sub-ordinates with
monetary, non-monetary incentives.
http://www.managementstudyguide.com/manpower-
planning.htm
https://www.managementstudyguide.com/training-and-
development.htm
https://www.managementstudyguide.com/employee-
remuneration.htm
https://www.managementstudyguide.com/performance-
appraisal.htm
Human Resources Software Company
16
Leadership- it is the process by which HR manager guides and
influences the work of
subordinates in desired direction.
Communications- is the process of passing information,
experience, opinion etc from
one person to another. Human resource Software Company will
communicate so that
29. things work as per the service required.
Controlling: is measurement of performance against the
standards and correction of
performance to ensure achievement of Human resource
software. The purpose of
controlling is to ensure that everything occurs with the
standards. Controlling is the
process of checking whether or not proper progress is being
made towards the
objectives and goals. Controlling has following steps:
rds
critical steps into some
sequential order:
following activities in
sequential order:
ng Human resource
30. Human Resources Software Company
17
First and foremost, step is to establish a structure through which
the business
will operate. It includes the structure of functional department,
organizational
structure etc.
In this Human Resource software will decide how much of the
work force will
be required in the staffing process so that the basic management
function is
performed.
31. In this HRSC will see what are the sales plan, how the business
is opting the
plans and what strategy is followed so that performance work
increases and
plans are implemented.
Based on the requisites of the orders from different business
requirement the
training and development will be implemented so that the new
or working
staff does not follow as a work load on them and instead does
the work on or
before the dead line.
In this the company will create personal relations with its small
and medium
sized business so that the the revenue for the firm is gener ated.
Once things go as per plan the supply of services can be varied
based on
timely manner.
32. of time and cost
which might occur at each step, identifying the source of getting
the finance.
An assumption is that the administrative costs will not exceed
20% of the total
staff costs approximately 2000SR.
Staff costs do not exceed 60% of the total sales value
approximately 20000SR
Staff costs do not exceed 40% of the value added that is 5000
SR
Total estimate cost of creating the software will be 10000 Sr
Human Resources Software Company
18
Opportunity checklist:
Customer
Small and
medium sized
business,
35. employment
trend
Distribution
From Top
level to
medium level
management
Human Resources Software Company
19
The Business Model Canvas
Value Proposition: our value proposition is to deliver online
service related to Human
Resources and we provide it 24/7 with affordable prices so it
can suet small and medium
companies.
The collection of Human resource software we offer will meet
the needs of the companies.
Human resource software company value proposition is what
distinguishes it from the HR
36. field. There is no such firm with this innovative idea in the
kingdom. Human resource
software company will provide value through various elements
such as newness,
performance, customization, "getting the HR work done on
time", less price, cost reduction,
risk reduction, accessibility, and convenience/usability by the
HR department.
The value propositions will be in two forms:
– price and efficiency
– overall business or employee experience and
outcome
Business companies as customers will be able to solve their HR
problems by an app and our
software. With a single click by them they will get a
confirmation of their requirement and
contacted by our employee to collect more information. The free
employees will be notified
by the software to the computer operating system which will
help the customers to know how
much cost and time will be incurred.
Customers: Human resource Software Company believes in the
term ―Customer is king‖ and
37. for this customer oriented and easy interface application will
make it easier for the customers
to take the benefit of the services offered by Human resour ce
Software Company.
We have different segments such as: small and medium
companies, Candidates,
Employees and Managers there will be a user interface in the
software which will
make the working easy for all the above segments of customers
and their work will be
easily handled by our HR team. The main job will be providing
the HR solutions to
the business customers.
Human Resources Software Company
20
To build relationships with customer we will give them
membership, automated
system and club to keep them close and know their needs. To
ensure the survival and
38. success of Human resource Software Company, Human resource
Software Company
identifies the type of relationship it should create with their
customer segments. Now
a day‘s widely used methods are used to contact or create
interest in the business.
Various forms of customer relationships include:
-
customer interaction. Such
assistance will be performed during sales and/or after sales.
-
on personal
assistance in which a sales representative will be assigned to
handle all the needs
and questions of a special set of clients in the HR.
interaction between the
Human resource Software Company and the clients. Human
Resource Software
Company will provide the tools needed for the customers to
serve themselves
easily and effectively with proper guidance on the software user
interface.
39. -service but
more personalized as it
has the ability to identify individual customers and their
preferences. Human
resource Software Company will be making changes based on
suggestions based
on the characteristics or requirements of Customer Company.
Various sets of customers (Small and medium sized business
firms) can be segmented
based on their different needs and attributes to ensure
appropriate implementation of
their HR strategy and to meet the characteristics of selected
groups of clients. The
different types of customer segments include:
of customers will
be able to access the service through HR software and no
restrictions will be
there on any type of customers who accepts to purchase it.
needs and
characteristics of its clients. e.g. foreign company, outsourcing
company like
40. Human Resources Software Company
21
their employees in India and service provided in KSA (Zain,
Souk.com call
centers)
additional
segmentation if the clients need more source of attractions if
they lack in HR
knowledge.
channels either face to face, email, phone call for both
communication channels and
distribution channels or for information about this type of
service can use system. Human
resource Software Company can deliver its value proposition to
its targeted customers
through different channels. Effective channels will distribute its
value proposition in ways
that are fast, efficient and cost-effective. The best source will
41. be mobile app, internet and
website. Use of face to face meetings, replying through emails,
answering phone calls
will be the channel for Human resource Software Company to
communicate.
we need software courses, workshops and tutors. The most
important activity in
execution by Human resource Software Company will be value
proposition by giving
solutions in HR. Through the use of software application
customer and the companies
will know what are their need and how will it be solved. This
will help the firm to be
effective and efficient in its service to the customers. Human
resource Software
Company will be creating an efficient supply of to the small and
medium sized
companies in the kingdom and to drive down costs so that all
are benefited from it.
42. Software and web development, IT employees and programmers.
The resources that
is necessary to create value for the customers will be IT
employees who will help the
customers to enter in the software and take the service they
want. The database
system will also help in knowing which customer is regularly
using the software or
using the service very often. Through this different pricing
strategy will be created.
software engineers and the IT employee will be the main assets
to Human Resource
Human Resources Software Company
22
Software Company as they will be needed to sustain and support
the business. These
resources will be in form of human, financial, physical and
intellectual.
Investment company, license and government authority. The
main key partners for
43. Human resource Software Company will be the main
commercial businesses, investment
companies, government authorities, and some companies with
high number of staff. The
technical support from the company who is going to follow our
model in preparation of
software is the prime investors as they are seeing this idea as a
positive innovation in
meeting their HR solution in the kingdom of Saudi Arabia. In
order to optimize
operations and reduce HR work, we will usually cultivate buyer -
supplier relationships so
that we can focus on our activity. We are also looking for
complementary business
alliances through joint ventures or strategic alliances.
Purchasing and joining fees. Several ways to generate the
revenue stream will be:
–Selling ownership rights of the software
– Money generated from the use of our HR
software
tion Fees – Revenue generated by selling access to a
44. continuous service.
– Giving exclusive right to a HR
software for a particular
period of time.
– Revenue generated from charging fees for
product advertising at our
software about some departments like insurance company etc.
Characteristics of Cost Structures:
– Costs are unchanged across different expenses.
e.g. salary, rent
– Costs vary depending on the production of
services. e.g.
hardware and installation
– Costs go down as the software is sold
with minor changes
required by client.
Human Resources Software Company
23
45. – Costs go down due to more sale and
usage of software
application.
Key
Partners
Small and
medium sized
companies
with high
number of
staff
Key
Activities
Value
proposition.
use of
Software
46. application
Value Propositions
"getting the HR work
done on time", less price,
cost reduction, risk
reduction, accessibility,
and convenience/usability
for the customers.
Quantitative – price and
efficiency
Qualitative – overall HR
experience and outcome
Customer
Relationships
Personal
Assistance
Dedicated
Personal
57. scription
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Actions framework (Eliminate, Reduce, Rise and Create)
Strategically Reduce Cost:
1. Free trial for less than 1 month.
2. Discounts after 100 employees after 3 times using the
service.
3. Price competition.
58. 4. Price generation on special demands
1. Capital
2. Net strategy; labor and depend on technology
3. Packages
4. Installation charges
Strategically Invest In:
1. Outsourcing
2. Quality of service
3. Data security
4. Data safety
5. Data management
1. Platform
2. Brand image
59. 3. Innovation ideas
4. HR solutions
5. Decreasing gap in firms HR
Human Resources Software Company
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Feasibility Analysis
The kingdom of Saudi Arabia, is diversifying its economy by
changes in market labor force.
The Saudi labor market is multicultural, characterized by a
distinctive tradition, including
new labor laws implemented by the MOL. The market has
struggled to meet expectations
because of lack of professional experience and management.
Providing additional service in
HR software is necessary element in pursuing this goal for the
vision of 2030.
Service Feasibility:
60. Over the past few years, The Small and medium sized business
have taken multiple steps
toward improving the Human resource departments. By 2014
changes have been observed in
the HR strategy as new laws started implementing creating it a
form of new innovation and
strategic plan for the human resource department. Thus, Human
resource software company
knows the need of the market and can wit stand those needs.
Target Market Feasibility:
Reexamine HR design options followed over the past few years
Evaluate changes in the domestic market requirements
Analyze software development options and prepare projections
Reach the target customers through providing them services
they require
Organizational Feasibility:
Management prowess: The group of Human Resources
professional staff with other
employees to provide the service of smooth operations
Software, HR knowledge
61. etc
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Financial Feasibility:
Business Name
Human Resource Software
Company
Start Date 01-12-19
Financial Assumptions - Income
Statement
Turnover
62. Year 2 Year 3 Year 4 Year 5
Annual Turnover Growth
%
8.0% 8.0% 10.0% 10.0%
Gross Profit %
Operating Expenses
Year 2 Year 3 Year 4 Year 5
Annual Expense Inflation
%
6.0% 6.0% 6.0% 6.0%
Depreciation &
Amortization
Annual Depreciation
Charges
64. The following balance sheet balances are projected by
entering the appropriate monthly
movements during the first year on the cash flow
Human Resources Software Company
32
Year 2 Year 3 Year 4 Year 5
Reserves
-
-
-
-
Loans & Advances
69. Human Resources Software Company
33
Forecast set up Cost:
Set-up costs
Setting up the business
Accountant's fees SR1,000
Solicitor's fees SR500
Business registration SR5,000
Domain name registration SR5,000
Insurance premiums SR500
Licenses SR5,000
Workers compensation
Setting up the Office
70. Lease deposit and advance SR50,000
Fitout SR5,000
Utility and connection SR1,000
Stationery and office supplies SR500
Plant and equipment
Equipment SR10,000
Vehicles SR20,000
Telecommunications SR6,000
Computers and software SR50,000
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Starting operations
Advertising and promotion SR2,000
71. Raw materials and supplies SR2,000
Working capital SR50,000
Start-up capital
Equity investment SR100,000
Borrowings
Total SR100,000
The result
Total set-up costs SR213,500
Surplus funds 0
Borrowings required SR113,500
Forecast Income Statement:
Dec-
2019
Year-
2020
107. (400,000)
Net cash used in investing
activities
-
(240,000)
(700,000)
(780,000)
(700,000)
(750,000)
Cash flows from financing
activities
Repayment of finance
leases
(7,791)
118. 2,246,741
2,045,209
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Fore Cast Break-even
Average selling price per unit $5,000
Average cost of each unit $2,000
Gross profit margin 60%
Fixed costs $5000
sales to break even $2000
123. 3,346,288
3,791,914
4,173,005
4,759,563
5,691,714
Human Resources Software Company
42
Financial decision
The startup capital is 100000 Sr and the borrowed capital
planned is 130000. The reason of
being the capital high is the software production and
maintenance which will be one of its
kinds in the market and it will require IT professional
assistance. Once the software is sold to
different firms it will be an asset as the firm will grow in sales
124. and the software cost will be
decreased. The first two years are crucial as it will be anal yzed
based on equilibrium point.
Another reason for the investing of money is the above study
which shows that there is a high
gap of HR professionalism in the Saudi market which needs to
be fulfilled. Thus, our service
will definitely be helpful for small and medium sized firms to
be availing that service. From
financial analysis view though the startup capital looks high but
once two to three small or
medium sized firms are joined as our customers our cost will
definitely be controlled and
after that there is 100% chance of earning profit.
125. Human Resources Software Company
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Conclusion
Many well-known examples of the use of information
technology for competitive human
resource systems has been generated to establish an
organization in the areas of Human
resources. But few have been of success as every country labour
markets has some changes
based on international market changes. In general, these
systems use information or
processing capabilities in small and medium sized organization
126. to improve the performance
inside the organization. Human resource Software Company
knows the areas where Saudi
market stands and what are the ways theses changes can be
tackled. The future innovation in
technology will eliminate various jobs in market, and major
jobs will be eliminated which
will affect companies and their employees. Human Resource
software objective is to give the
clients all Human Resources services that make them successful
in the areas of HR. HRSC
services will give the clients the right way to compete on the
global market because
professional employees have an experience and knowledge of
the trends in global market The
main objective of our project is to make the local companies
compete on the global market
and be the leader of Human Resources software services in
Saudi Arabia. Thus, the demand
of a need of HR software in the market of KSA will be
providing service to the employees
saving their cost and time.
127. Human Resources Software Company
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