SWOTT Analysis of Specialized Quality Solutions
Rick McKelvy
BUS/475 Integrated Business Topics
May 5, 2014
Instructor: Scott Romeo

A SWOTT analysis was conducted to analyze Specialized Quality Solutions’ greatest strengths, weaknesses, opportunities, threats, and trends in an effort to project and identify internal and external factors that may be favorable or unfavorable to achieving the company’s objective. The results of this analysis will be used to identify strategies required to create a firm business model and assist in the alignment or the organizations capabilities and resources to the business environment in which the organization operates. The analysis revealed several areas where forces and trends may have an effect on the organization.
Economic:
Businesses such as Specialized Quality Solutions are affected in large part by the economic environment including economic policies imposed by the government, business cycles and the general economic health of the nation. Opening a business in an area with a large number of aerospace and defense contractors along with becoming known for supplying hard to find, experienced and qualified personnel can be seen as a strength and an opportunity. Having the ability to fill positions requiring these qualifications would be better served in areas with a high concentration of aerospace and military facilities. With the uncertainty caused by government sequestration and downsizing of our military, the trend of many aerospace and defense contractors is to turn to temporary staffing to accommodate changes in staffing needs. Many organizations prefer using temporary staffing because it can be viewed as a purchased business service rather than hiring an employee. Natarajan, P. (2002) states “Local businesses, big and small find it more economical to hire part-time and full-time employees through a staffing agency than working through their own human resources department. And the tougher economic conditions have only accelerated the trend.” Another emerging trend in the area of manufacturing is using temporary staffing to adjust manufacturing operations to meet fluctuating demands caused by changes in the economy. Weaknesses in the economic arena include economic downturns resulting in fewer temporary staffing opportunities. As a new business, establishing customer loyalty and a lack of experience managing and running a temporary staffing agency could also be considered weaknesses. With regard to the legal ramifications, becoming acutely aware of laws and regulations surrounding temporary employment services or creating a business in general could be an issue if not thoroughly researched.
Technological:
The recent decline of manufacturing jobs has been somewhat attributed to advances in technology. A temporary staffing agency that keeps abreast of changes in technology can be a tremendous advantage and strength. By offering only highly qualified, experienced and technologically oriented quality personnel for aerospace and defense manufacturers’ temporary staffing needs is viewed as a strength. Adapting to changes in technology is crucial to Specialized Quality Solutions being prominent in the staffing business. By offering continuing education to the staff in their respective areas of expertise is also a strength. An issue and possible weakness in the area of technology is finding staff members to cover all aspects of quality in order to fill the needs of customers.
Supply Chain Management: A typical supply chain for a temporary staffing agency ranges from recruiting qualified personnel to having an employee on board. Since Specialized Quality Solutions employs only personnel in the field of quality with excellent credentials, background checks and verification of credentials is essential. Good supply chain management is an essential part of a successful workforce management. A weak area can result in unnecessary expenditures, loss of productivity and negative branding of the business. Tracking, monitoring and evaluating employee performance will assist in analyzing levels of service, required number of employees, experience details and competitive rates. Effective supply chain management improves performance, and productivity. The right combination of people, experience, knowledge, operating system and technology are important to becoming a leader in the business of temporary staffing.
Issue and Opportunities: Like other agencies, temporary staffing companies are required to adhere to all fair business practices, federal and state legislation, and all employment laws required by the American Staffing Association. Issues regarding employee relations, rights, and privileges must be resolved in an expeditious manner. Legalities regarding conflict of interest regarding previous employers and employees restrictions regarding proprietary information, intellectual property and working at a previous employers competitor could be an issue for certain employees. Choosing the right location can be an issue which must be addressed at the onset of development of a temporary employment agency. Investigations into the quantity of aerospace and defense companies geographically located within a region, the unemployment rate of the surrounding region, technical and professional expertise of job placement opportunities, possible defense cuts affecting businesses and future acquisitions by the military which could affect the area must be taken into account. Many opportunities exist in providing temporary staffing to aerospace and defense organizations. The ability to promote reduced administrative expenses, lower insurance premiums and reduced employee benefits for prospective clients can be viewed as a positive marketing tool. Economic uncertainty, defense cutbacks and high unemployment provide opportunities to hire the unemployed and retired with extensive background and knowledge. The opportunity to rebuild the community by creating jobs can be a public relations advantage. Based on this analysis, Specialized Quality Services faces many major opportunities and issues. Many opportunities exist in starting a temporary staffing agency that is directed toward fulfilling the needs of aerospace and defense organizations but the associated issues must be resolved first. Choosing a location relative to the need for aerospace and defense workers is significant. Paying employees to travel long distances can be expensive and an increase in overhead. Extensive analysis must be conducted to choose a location with the highest concentration of Aerospace and defense contractors in the smallest geographical area. Hiring employees is an issue and an opportunity that must be addressed. Not only must possible candidates be screened for experience and knowledge for the required positions, they must also be a good fit environmentally, culturally and personally. Building an employee base is as equally important as building a client base. Other issues and opportunities surround complying with all local, state and federal laws as well as complying with the American Staffing Association regarding legal concerns. Consulting a law firm which specializes in starting a new company could prove to be an advantage. In order to choose a location which is best suited for the business, many area will need to be researched and the following questions answered: * Which city or area in the surrounding states has the most businesses performing aerospace and defense work? * This question is extremely important to maximize the potential of the business. * Does the city or area contain a population large enough to draw potential employees from? * If the number of organizations performing aerospace and defense work are scattered, a central location may be required. * A survey of major cities and production areas will be required. * What is the median pay scale for temporary employees in this city or area? * This should be determined after a suitable city or area has been selected. * Pay scales will be determined based on experience, knowledge etc. and not related to other job requirements. * Are there already temporary placement agencies in the area, if so how is their performance? * Competition is expected but temporary employees may want to work for a company that specializes in their field. * Survey the city or area for performance measures of other temporary staffing agencies. * What is the level of experience of retired and unemployed in the city or area? * This is also an important question. The level of experience, the number of retired and unemployed persons wanting to work part-time, the amount of jobs requiring their expertise, all have to be determined. * What training will be required for employees? * Training in company procedures, self employment regulations, customer protocol (following all safety rules and regulations, customer interaction, etc.) will be required. * What local, state and federal laws govern temporary placement agencies? * Very important to avoid penalties and or other actions. * What fees can be expected? * Low importance, this information can be obtained from state and local agencies. * Based on the aerospace and defense companies in the city or area, how many positions will be required to start? * This is very important to not overextend resources. * Possibly hire employees on as needed basis. * Based on the aerospace and defense companies in the city or area, what is the expected growth of these companies? * Very important to forecast growth of the business. * Try to obtain possible government contracts forecasted for the region. * Is there suitable office space nearby? * Low importance but price, amenities, and other costs will need to be taken into consideration. * Bottom line, how much money will be required? * Extremely important aspect of forming a business. * Estimates of the above plus working capital should be assessed.
In conclusion, temporary staffing is a very complicated business. Getting it all set up and functioning correctly is also complicated and a lot of work. Many questions must be answered and all problems addressed. Finding the right area, the right employees, complying with all government regulations, acquiring clients and determining upfront costs must all be determined and worked. There is a lot of work involved but the rewards will be well worth it if conducted correctly.
References:
Natarajan, P. (2002). Staffing agencies carve profitable niche. Pacific Business News, 40(24), 3. Retrieved from http://search.proquest.com/docview/235922901?accountid=458