unit 4 for tom muntuga

Running head: SWOT ANALYSIS CORNERSTONE STAFFING AGENCY 1

SWOT Analysis-Cornerstone Staffing Agency

Teresa A. Cochran, BSN RN NE-BC

MBA 5101

June 19,2016

SWOT Analysis-Cornerstone Staffing Agency

Introduction

According to Gretzky (2010), SWOT analysis refers to an examination of a company’s strengths and weaknesses as the internal factors and the opportunities and threats as the external factors. The opportunities are used for company growth and improvement. Ideally, SWOT analysis is a precursor to strategic planning and is usually conducted by experts who analyze a company from an objective viewpoint. A SWOT analysis is a decision-making tool that plans the work of a company. This paper aims to express the SWOT analysis for Cornerstone Staffing Agency.

Cornerstone Staffing Agency

Staffing agencies refer to organizations that are used to recruit staff to fill positions in a company. Staffing agencies also assist job seekers secure employment. Additionally, it provides wide-ranging recruitment services (Eichhorst & Braga, 2013). Cornerstone Staffing Agency engages the delivery of professional services within the scope of business structuring and consulting. The company helps firms to build a strong consulting division that can constructively compete with extremely competitive firms. Part of the company team conducted a SWOT analysis for the company, and the results were as follows.

Strengths

Strengths are factors that promote optimal organizational performance. In an analysis of Cornerstone Staffing Agency it is determined that a significant strength lies within its superior teamwork and ability to network within the clients served. The company is comprised of experienced experts with outstanding experience and qualifications in both training and recruiting. The company is, therefore, well positioned within the realm of the clients served as a result of the synergy that occurs in an engaged workforce. Cornerstone has the potential to attract many corporate customers as a result of efficient daily operations of the company.

Weaknesses

Weaknesses are the factors that increase the cost of operations or reduce the quality of service delivery. The company does not have a long history in the provision of staffing services. Therefore, it can take a considerable period for the company to successfully break into the market. Additionally, variations in the job market such as reduction in hiring members demonstrate a potential weakness for the company. Also, customer loyalty and branding is essential for the company to gain market share which is a challenge for a startup business no matter the industry.

Opportunities

Cornerstone Staffing Agency is prepared to take advantage of any opportunity that comes its way by partnering with local industry leaders. It is, therefore, reasonable to assume that opportunities for a company specializing in recruitment of qualified talent for a specific industry would lie in anticipation of industry needs based on data gathered through networking and industry partnerships. Another area of opportunity lies within the current law requiring that employers with more fifty or more employees must provide health insurance coverage. This creates an opportunity for staffing firms due to the desire of companies to hire temporary staff so as to not be forced to absorb the cost of providing health insurance in order to keep payroll expenses at a minimum.

Threats

It is essntial to understand that any business faces a challenge or threat at any stage of the business life cycle. Notably, the threats can either be external or internal. However, the majority of threats can be anticipated and strategies developed to mitigate detrimintal effects to the business. Threats to staffing agencies such as Cornerstone would include increasing governmental regulation, unfavorable government mandates, new entrants in the marketplace, and slowing of the economy affect the ability of the company to maintain operations and presents a threat to continued operations.

In conclusion, a SWOT analysis is done to critically evaluate an organization from both internal and external factors in order to determine strategies to address each. .Accurate information combined with adequate strategic planning is essential to acquiring and maintain market share. No matter the industry a SWOT analysis can for objective, insightful, and purposeful strategic planning. Staffing agencies are organizations that recruit staff to fill the positions in a company. Cornerstone Staffing Agency is a company that provides professional staffing and training services to its clients The company strength lies within its teamwork. Breaking into the market is a major weakness that befalls the company. The current law needs a company to offer insurance to the employees which are a fundamental opportunity. The unfavorable government rules and new entrants into the market are the potential threat to the company.

References

Eichhorst, W. & Braga, M. (2013). The Role and Activities of Employment Agencies. Retrieved from http://www.iza.org/en/webcontent/publications/reports/report_pdfs/iza_report_57.pdf

Gretzky, W. (2010). Strategic Planning and SWOT analysis. Retrieved from http://www.ache.org/pdf/secure/gifts/Harrison_Chapter5.pdf