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Management Assignment: Effect Of Unemployment In Oman

Question

Task:
Management Assignment Problem
Unemployment is a continuing concern within society which is linked to social isolation, lowered future aspirations and negative health consequences. Especially during these trying times, people are getting frustrated; the community moral is at an all-time low.

Aim
Create a job centre that act as a guidance counsellor, help in essential skills development, and provide individuals with a life coach to improve themselves with their career journey.

Train people through mock interviews; help with CV creation, job hunting, and conduct skill development courses according to the market needs. Conduct Reverse Recruiting, which connects overlooked candidates to jobs at scale. Especially parents, caregivers returning to the workforce, seniors, formerly incarcerated individuals, and other discouraged workers who have struggled to find work.

Objectives

  • To study the effect of unemployment in Oman
  • To study the effects of the economic and social consequences of unemployment
  • To study the Social class effects on unemployment.
  • Identify the social and psychological impacts.
  • Create a business plan for the development of the “Recruitment lab”

Main deliverables
To include the consequences of unemployment and recommendation in terms of policy interventions as well as contributions at individual level, to curb down such issues for now and in the longer period in the means of developing the recruitment lab

Answer

Introduction
The concept of unemployment explored in the present context of management assignment is termed as a state where employable people are actively searching for a job but cannot find a suitable job. Due to uncertain business environments such as pandemics, financial recession, and crises, rampantly increasing global population, rising trends towards capitalism, fail of governmental controls, and corruption have started an upward trend in unemployment worldwide. Both developed and underdeveloped countries face these issues and try to counter the issue through policy measures and legislation.

According to the international labour organization, global unemployment is expected to reach 5.7% during 2022, i.e. an estimated 205 million people will be unemployed. In this regard, the Sultanate of Oman is also experiencing the same issue of incorporating local labour due to the rising population and lack of proper education and skill mismatching in the labour market. According to (Worldbank, 2021), the unemployment rate in Oman is touching an all-time higher rate of 49%.

Caused by COVID-19 and the economic downturn, the Omani economy is facing hyper unemployment levels, which cause different communal issues. Because rising unemployment level leads to specific social issues such as bribery, crime, theft, law-breaking, and corruption, this study is aimed to see-sight into different aspects of unemployment in Oman as well as to create a recruitment lab that will assist job searchers in getting relevant job skills, personal development, and other different aspects (Mathews, 2021).

Impact of unemployment globally
According to various reports, it has been studied that young people aged between 15 and 29 years have a high tendency to move to another country. This particular trend has been rising since 2015, and the most promising reason behind it is the elevated unemployment rate and lack of good quality job opportunities. Covid-19 pandemic has further pushed global unemployment rates to new levels. It is expected that nearly 200 million people would be unemployed by the year 2022 only because of covid crisis. Several experts have highlighted those major developments and growth that was observed in the global economy has been pushed back several times only because of covid-19 crisis. According to the new reports, it has been stated that working poverty has reached back to 2015 levels, which means that by the year 2030, only a small percentage of improvements would be observed. (Mathews, 2021)It has been highlighted that across the world, the worst affected regions include Central Asia, Europe and Latin America, each of them would witness uneven recovery post the covid-19 pandemic (un 2021B). Another important area is that women have been disproportionately affected by the crisis. Several working women fell out of the labour market becoming inactive. This particular fall in the number of working women has been pronounced in the middle-income countries, where it is expected that the labour market of young people would witness disruptive consequences for years to come. It is expected that if the pandemic subsides, then the jobs gap that has increased to 75 million may fall back to 23 million by 2022.

In the case of Oman, it has been studied that the unemployment problem in Oman can create problems for other Middle East countries as well. This is mainly due to the lack of outsourcing and the import of goods within the country. Lack of growth of the nation can be the direct result of the lack of growth of jobs in the country. There have been several protests taking place in Oman, where young people have moved to streets across the country to show their anger against lack of jobs and economic opportunity. The government has introduced certain economic reforms in the country, however, there has been several delays and slow implementation of various activities which has raised protests in the country (un 2021B). In Oman, it has been noted that petroleum industries contribute 34% in the overall GDP of the country; however, they generate only 15,000 employment opportunities for Oman youth, as per 2018 data. The government is expecting the private sector to fill up the job gaps and reduce the unemployment rate since the number of government jobs have declined in the country. Oman is currently facing severe challenges to increase employment opportunities for their youth population, which is fast growing.

The Impacts of Unemployment in Oman
According to (White, 1991), elevated unemployment poses more significant threats to people's life, community, and the overall local economy. However, researchers are agreed that there is a natural level of unemployment that cannot be eliminated, but the eminent rate can be controlled through government policies. Because unemployment holds severe impacts for individuals, community, and country and specifically the Omani economy is also too different risks and threats as described hereunder.

  • Unemployment reduces the standard of living of jobless people.
  • Financial hardship led to crimes, social exclusion, an increase in poverty, mental and health issues of jobless people.
  • Unemployment reduces the equal distribution of resources, i.e. wages and remuneration might reduce national income.
  • Unemployment leads to family issues and disturbs the societal relationship of labour.
  • Jobless people are considered a burden on the economy, which requires government support.
  • Reduces aggregate demand within an economy because a more significant portion of the population is not participating in aggregate consumption.
  • Labour costs will reduce considerably, which leads to a considerable reduction in minimum wage level and might cause unfair treatment of employees in the workplace.

Social and Economic Consequences of Unemployment
Unemployment is an inevitable problem that will always exist in the economy despite government policy responses and economic responses and measures. Therefore, this also generates visible consequences on both social life and the local economy.

Social Consequences
Societies such as Oman face higher unemployment rates experiencing severe consequences such as low-quality housing, less social interaction, lesser recreational, limited access to standard and even public transportation, and lower access to standard education(Arslan, 2019). Similarly, unemployment also increases crime rates in higher unemployed societies, disturbs the family system, and individuals' mental and emotional well-being gets intruded. According to (Atkinson, 1978), unemployment increases social distress, depression, exhaustion, and panic among citizens. Therefore, a responsive policy measure is essential to cope with the rising unemployment level at the government level and business level to reduce it.

Economic consequences
According to (Colledge, 1980), unemployment holds serious economic consequences for any country such as Oman in different ways. For example, the unemployed population do not actively participate in the national economy, which reduced economic growth; the government also requires to support unemployed people through social incentives financially and other benefits, which are considered a burden on the national treasury, and the labour market also operates inefficiently due to a more significant portion of the workforce is out of work. The Omani economy is also experiencing the same issue where unemployment is touching an almost higher rate of 49%, which is far greater than the forecasted and natural employment rate in the economy.

Problem definition
It is important to note that Oman is currently facing challenges since its economy has declined severely because of covid-19 crisis. Along with this, it has been observed that in Oman like other Middle East countries, is diversifying their economy as they no longer want to depend on their oil and gas resources. However, this complete transition is going to require a lot of investments as well as planning. In the current stage, it has been noted that government jobs have declined and the number of job opportunities offered by petrochemical Industries is significantly low. Therefore, the government is now looking forward towards the private sector to fill the gaps in the job market so as to tackle the unemployment issue in the country. It has been noted that the government has been implementing several economic reforms so as to boost foreign direct investments as well as help new businesses cultivate in the country. In this particular aspect, setting up jobcentre which would offer several courses as well as pre-employment training experiences to youth will be a favourable business.

Other possible solutions several suggestions for solve it
Unemployment has become a major issue across several economies around the world. It is expected to completely change the social dynamics in different countries. There are various problems that society has to face because of the high unemployment rate in a country. Several suggestions that are offered by market experts to tackle the problem of unemployment in a country include more expenditure towards education. Education is a solution for several problems in a country. It should not just be considered as a basic right, but the government should also make sure that minimum fees charged and equal educational opportunities, skill-based knowledge is delivered across all the regions within their country. Another important method through which the unemployment rate can be reduced in a country includes career guidance services. There are a huge number of individuals who have graduated in the year 2020 and 2021, however, they would be finding several challenges in deciding the right career path. Therefore, career guidance services and related industries are highly crucial to enable youth population in the country to find career opportunities and stay aware about different vacancies, changes in the labour market as well as they would be in a better position to make decisions and choose the right career path for them.

Why this job centre?
This job centre has been decided primarily due to the high unemployment rate in Oman. The entire issue is related to the slowing economy and lack of good quality job opportunities in the country. Therefore, there is an urgent need for job centres which can enable graduates in the country to apply for higher degree programs or help them get recruited in other countries. Therefore, job centres help the youth population and increase their productivity.According to the recent reports, it has been noted that the youth population in Oman has now moved to street and protesting because of lack of opportunities in the country and slowing economy, therefore, setting up a job centre would hell to provide better support guidance and direction to job seekers, as well as it would help to generate a small number of employment opportunity in the country.

Job Centre Planning
Based on the current employment level in Oman and the rising social and economic consequences, a policy and business response are essential to manage the situation and help people find a job and live a suitable life. According to (Le. J. Grand, 1982), effective planning is the art of achieving corporate objectives and goals. Therefore, to achieve the objectives and goals of providing job training and career development services to people searching for a job. This centre will play the role of a bridge bringing employers and employees together. Similarly, the centre will play the role of a guidance counsellor rather than offering jobs. Therefore, this will assist job seekers to learn and grow professionally to reduce the unemployment gap within the economy.

The core Aims and Objectives
This job centre’s primary purpose and objectives will be a broader category of services as mentioned below.

  • To assist unemployed people, learn job-related skills such as job hunting, CV creation, job interview, and psychological tactics to get them to prepare for a job.
  • To improve the personal skills of jobless individuals such as emotional intelligence, leadership skills, personal career development, and career planning.
  • To educate individuals on employment and its economic impacts.

The main reason behind setting these objectives is to educate people on getting employment opportunities and provide a platform where people can learn job searching and other career aspects.

Services Delivery
This centre will offer unique services and coaching guidance in different areas of employment and non-employment career planning. These services consist of the following.

Conducting Mock Interviews
One of the major reasons people not getting into employment relationships is the lack of proper interweaving skills. According to (Augier, 2001), learning effective interview skills is an integral part of career development. Because it enables finding suitable employment anywhere, this centre will assist job seekers through mock interviews in their relevant field to test their knowledge and interviewing skills. In case of deficiency, proper coaching and education of the person shall be initiated to prepare them for labour market requirements.

CV creation and other documentation skills
Curriculum Vitae is considered the first impression of a person’s education and writing skills level. Therefore, this centre is also aimed to offer these services to improve the documentation skills of candidates. Similarly, candidates will also be taught different formats and styles of writing impressive CV’s and other documents such as letter writing, application, report writing, job letter, and email, etc. because (Galdino GM, 2005), digitalization in writing must be adhered to, to ensure compliance with growing job requirements and changing business and communication environments.

Job Hunting
Similarly, most researchers suggest that ineffective job-hunting skills are also a significant contributor to unemployment in Oman and other parts of the world. According to (Ali AA, 2016), employment requires sufficient skills related to job searching, CV creation, and interviewing skills to respond to a job advertisement efficiently and patiently. Hence, this centre will educate candidates on how to hunt for a job effectively. For example, using different platforms such as the company’s website, advertisement agencies sites, social platforms, and other techniques to search effectively for a job. Because the inability to search for a job is more painful than not getting into a job. Therefore, the initial step that will be taught is to search for a job and then proceeding.

Skills Development Courses, and Career planning according to market needs
According to (Norris, 1978), structural unemployment is caused by a mismatch between workers' demographics and the jobs available in the labour market. Simply, it means that when workers possess skills but do not match with any available job in the market, it is called structural unemployment. This can also be termed as inefficiencies in the labour market. Therefore, this job centre will offer career planning and labour market insights to observe the market and formulate strategies. For example, educating candidates on market trends and changing industry requirements to get those skills that will be trending in the future and present.

Personal Development
Personal development is an integral part of the employment relationship and career growth. As stated by (Lounsbury, 2003), personality traits such as active listening, effective communication, positive attitude and behaviour, leadership skills, and emotional intelligence are the heart of self-awareness and personal growth. This centre will coach candidates on personal development such as learning effective communication processes, avoiding emotional distress, work-life balance, and self-management in the workplace and personal life. This will help candidates to become responsible personalities and charismatic individuals when negotiating a job opportunity.

Marketing Strategies
Establishing consistent and effective marketing strategies is a vital part of the centre's operational management. As stated by (Greenley, 1984), marketing is the process of promoting the centre presence among anticipated customers and different regions in the country. The rising unemployment levels in different parts of Oman will be addressed through the job centre operations, and therefore promoting the centre presence in those regions is necessary to attract unemployed people to find their desired coaching place. Thus, the following channels will be used for service promotion and advertisement.

Centre’s Website
The centre will operate its main advertisement site from where relevant service offers shall be promoted and advertised. Similarly, using reputable marketing agencies platforms such as Define Digital Solution and Marketing Leader. These reputable agencies will promote the centre’s broad range of services.

Social Media Marketing
Technical advancement globally has changed the way businesses market their products and services, such as the elimination of traditional marketing strategies and the adaption of digital marketing techniques such as the usage of social media platforms. According to(Arslan, 2019), digital marketing constitutes a major part of the business’s strategic marketing strategies because it reaches millions of people simultaneously. Therefore, the centre will use social media platforms such as Facebook, Instagram, LinkedIn, and Twitter for promotional purposes.

Excellent Source of Advertisement

  • Using magazines, papers, and other publications for advertisements purpose.
  • Consumer referrals and publicity.

As mentioned earlier, the Job Centre should use these media channels to effectively market its services to its intended customers, i.e. job seekers. Because these platforms nowadays are repeated used and customers can easily accessible due to their daily interactions with them. For example, people daily use the internet, social media, read newspapers and magazines, attend publicity events which would create exceptional demand for the services.

Financial Management
Financial management refers to strategic planning of the centre’s profitability, expenditures, revenues, investment, capital and asset management, and business transactions with customers and suppliers. According to (Ibenta, 2005), financial management is the fundamental requirement of business operations to ensure corporate sustainability. In this regard, the centre will use different financial management techniques such as cash flow ratios, trend ratios, capital maintenance, and common size statements to manage the financial performance and position of the centre in the industry. Similarly, the firm will also hire skilful and experienced finance experts to manage business transactions and audit periodic performance to identify loopholes in internal controls. Thus, it will ensure effective financial management of the centre and more significant financial performance and position in the industry.

Recommendations and Policy Measures
Unemployment requires practical and realistic policy and strategic responses to reduce the undeniable consequences of unemployment on society and the economy. The establishment of this firm will play a major role in culminating unemployment and assist people in reducing their educational and personal limitations to find a desirable job. However, there are other techniques also to reduce the depression of unemployment. Some of the considerable policy responses to unemployment are as follows.

Micro-Level Measures
The development of a guidance counselling centre plays a major role at the micro-level. Because it can educate people as to how they can overcome their internal deficiencies and hunt for a job, however, the encouragement of small businesses such as the IT sector, Food processing, Oil refining and mining, and tourism sector encouragement will encourage local and international investors to establish operational facilities that will create many job opportunities for the people of Oman fighting against unemployment. Additionally, promoting a culture of self-employment, i.e. business culture, is also a significant contributor to a nation's economic growth and prosperity, which will help residents settle their lives. Because unemployment, if not managed well and profoundly, then the economy may face grave consequences concerning rising poverty, crimes, societal distress, and citizens' physical and emotional well-being might be sacrificed. Thus, the establishment of coaching and job centres and encouraging small business investors would reduce unemployment and will create more job opportunities.

Macro-Level Measures
The Government of Oman needed to offer geographical subsidies and incentives to local and foreign investors to invest in the higher unemployment regions Nizwa, Sohar, and Rustaq. This will promote business activities and encourage local people to participate in economic activities to improve their living standards and reduce the burden on the national economy. Similarly, education and training of people to reduce structural unemployment and efficiently operate in the labour market. Because inefficiencies in the labour market increase structural and cyclical unemployment, which causes severe damage to the economy in the long run (Sinfield, 1981). Additionally, (Smith, 1980) stated that joint efforts to culminate unemployment between public and private partnership is a unique way to get rid of the rising unemployment rate in the economy. Finally, boosting human capital is considered the major asset of any government, and therefore the Government of Oman needs to reduce the burden on unemployed people through a reduction in taxes, increasing aggregate demand by giving interest-free loans, and business opportunities to decrease unemployment levels.

Conclusion
In summary, unemployment causes severe social and economic consequences for a country such as Oman. For example, social impacts include increased crime rate, family issues, physical and emotional health issues of workers, increasing poverty, delinquency, reduction in wage rate, and increases communal depression and lowering the standard of living of residents. Similarly, economic consequences are a burden on the already struggling economy, reduction in tax revenues, mismanagement of human capital, loss of income, increase in bad debts for banks and financial institutions, which can cripple the financial market, and reduction in aggregate demand decreases economic growth (Yeager, 1979). In this regard, establishing the job centre will play a vital role in educating and assisting people to find a desirable job opportunity. The job centre will serve candidates by improving their interview skills, CV and other documentation skills, personal development, and job-hunting abilities because these are the significant factors in the rising unemployment level within Oman. For this purpose, the centre will promote its services to major unemployment cities of Oman to increase its presence and serve more customers. However, major micro and macro-level measures are required from the public and private sector to come forward contribute to reducing unemployment. This will establish an inclusive and careful society having a higher living standard.

Marketing plan
Executive Summary

The marketing plan provides an analysis of the existing factors that determine the opportunities of Job Centre. The unemployment rate of Oman is explored and possible strategies that Job Centre can undertake so that it becomes successful in the market are analysed. The basis of the report is to ensure that the market plan have a corresponding analysis of the situation with which Job Centre can maintain a proper propaganda in the market. SWOT analysis as well as competitive forces are analysed. The external as well as internal analysis of the market is undertaken that can provide Job Centre with an opportunity to manage its resources. The future market of Job Centre is also stated to determine the assistance it can provide to similar countries that have a high rate of unemployment. The marketing strategy and the target market for the company is also determined in the report presented.

Company Summary
The primary mission of the company is to set up a new job centre in the country that will help to improve the skill set as well as educate the youth population of Oman so that they are able to move ahead in their career progression. Therefore, the majority efforts of the company will be to help graduates find opportunities for higher education within the country or abroad. Along with this, the organisation will offer multiple courses ranging from engineering and manufacturing, health, science and social care, sales marketing and procurement, transport and logistics as well as digital business and administrative systems. The purpose of the organisation is to provide all the necessary help so that graduates completing their college education are able to apply for advanced courses as well as specialise in specific fields of their interest.Support and guidance for gaining practical experience in a specific field, support for creation of CV as well as professional development qualification will be provided along with free employment training. It has been decided that the company will set up a rented office place at Muscat, which is the capital of the country. Initially, the focus of the organisation will be to hire 50 to 60 employees as their permanent staff workers and faculty members. The focus of the organisation will be to deliver their services across online methods as well as through offline courses. Right from the beginning of the business, efforts will be laid on building company websites as well as their mobile app so that multiple channels can be provided.

Competitor Analysis/Research
It has been analysed that the overall competition in the market is relatively low as there are few number of players that offer recruitment services and educational courses for graduates in Oman. It has been observed that Oman Agencies that was established in 1971 is a major manpower solution helping graduates to get development opportunities across construction sector, agriculture, teaching, health care and several other categories. It has been noted that the company is a leading manpower recruitment agency that has set up its operation in Oman offering numerous opportunities for graduates to get employed foreign countries like Bangladesh,India, Nepal, Turkey and Sri Lanka. They also offer migration services to various other places. Along with this, there are few online job portals that provide information about new opportunities available in different areas. This primary includes Naukrigulf.com, monstergulf.com and Petro jobs.com and a few others.It has been studied that petrojobs.com is the only job portal site that provides recruitment processes across all oil and gas operators in Oman.They list vacancies for 8 operating companies enabling all job seekers to easily apply and find employment opportunities in these areas. Apart from this, there are various other websites offering both free and paid services for graduates and job seekers to get employed. These include GulfTalent, Google for jobs, Bayt and TanqeebOman. However, on comparing these organisations with the job centre that is planned to be set up in Muscat, it can be said that the planned organisation will offer various courses and constant support until and unless graduates are able to find employment opportunities.The planned job centre will not just provide listing of new vacancies, but, they will also establish their tie up with various multinational companies and different country to ease the overall process for graduates to get employed in the country.

Niche Research
Job Centre tends to conduct a research that can be based on the understanding of the level of unemployment that exists in Oman. This niche research undertaken by the company tends to provide knowledge of the activities as well as the changes that are required. For example, the niche research for Job Centre is to be based on the research undertaken owing to the statistics from the International Labour Organisation. At the same time, the social issues that exist with the country is also to be addressed (Belwal, 2017). It turns out that the political turmoil in Oman along with corruption level are some of the issues that are to be maintained and analysed by the company before making progress in dealing with unemployment. For this reason, the research tends to focus on the rate of unemployment caused in Oman and the Government policies that Job Centre can expose.

Market Trends
Market trend in employment cannot be determined as such mainly because people in need of being employed will not be in line to make choices about their career. As such, irrespective of the offering at the market it is essential that the best and first employment opportunity gained be cashed in. This can provide companies like Job Centre to ensure that it maintains a significant impact on the overall rate of employment that are deemed to be in demand in the market. Thus, no specific market trend can be addressed which can be useful for the job seekers and consider the positive impact on the overall market research(Ibrahim, 2017).

Market Drivers
The market drivers for being employed is high. Job Centre need to ensure that factors such as poverty, highly level of expenses as well as a good lifestyle can be the drivers that motivate people to see employment. As such the company can ensure that it capitalises on those areas that can be deemed to have an effective role in convincing the people about using the services rendered by Job Centre. In this case, it can be stated that one of the most important areas of market drivers that is to be focused on is the lifestyle of people(Yun, 2019). With the economy of Oman being high, every person needs to be provided with the opportunity to maintain a more than decent lifestyle. This can ensure that the business of the company also improves and at the same time the marketing growth remains one of the most sought-after strategies employed by Job Centre to maintain the effectiveness of the growth.

As of now, it has been noticed that millions of youth in Oman are looking for job opportunities. Many are desperate to get employed since, reports have highlighted that a huge youth population has begun to protest against the government reforms and lack of employment opportunities in the country. It is important to note that there are thousands of graduates, who are completing their education every year, however, they are not able to find job opportunities in Oman. Therefore, the biggest market driver is the increasing number of graduates in Oman as well as the government is taking note of these developments. Therefore, government support and its investment across technology and telecom infrastructure will also play an important role for driving the market.

Market Growth
The market growth for Job Centre will depend on the number of employment opportunities that are created by the company. This can ensure that an understanding of the existing marketing phenomenon take place so that Job Centre can continue to grow in the challenging environment. With its employment facility, Job Centre can provide employment to those people seeking jobs. This can help in the growth of the organisation and ensure that a large facility be maintained which can allow the company to not only provide opportunities of work to people for other companies but also in the parent company(Falahat, 2020). Thus, with this tactic, Job Centre can promote itself in the business market and ensure that the employment level at Oman also rises. Thus, two of the most important problems faced by Job Centre, in terms of market growth as well as providing employability can be addressed by undertaking this strategy.

Demographic Research & Analysis
For the success of the business, Job Centre needs to ensure that it maintains a definitive research on the existing demography. This includes getting a closer analysis on Oman and the people that exists in the country. The rate of job provided in the country as well as the areas that need to be looked at are some of the key areas in which Job Centre need to conduct its research. In this case, an understanding of the existing demographic profile of the unemployed people are to be understood so that proper, suitable as well as secured jobs can offered. In the pandemic situation, such an act can be difficult to gain and as such for Job Centre this can be a huge challenge. Despite this the company can continue its analysis keeping in mind the changes and effectiveness of the job profile that is to be sought in the market.

Data Visitation
The data visitation associated with Job Centre need to be based on the way with data is collected and presented to the managers. In this case, the data on job profiling as well as rate of unemployment are to be considered so that plans can be made to fit every people with job opportunities and eradicate any unemployment. As such, a data needs to be based that can allow Job Centre to determine the rate of unemployability (Mahdavinejad, 2018). It has been evidenced that in 2020, the rate of unemployment was about 4.97% of the total population meaning that 250,000 people had been left unemployed(Awad-Warrad, 2018). This is an important statistic for the country which can be capitalised by Job Centre so that it can maintain its business. In this case, for Job Centre it is necessary that an aggregate of the total job available, as well as, the unemployment rate be analysed so that the data collected can be validated and based on such analysis strategies to provide employment be made.

TAM Analysis
The TAM analysis is done based on the previous data that are gained by the companies. The application of the analysis can bring about an understanding of the existing market sources and at the same time, can ensure that success in terms of maintaining a job profile(Li, 2018). For Job Centre, the calculation of TAM needs to be based on the rate of unemployment and the value that the company can gain from the jobs provided. However, the problem that can be faced by a company like Job Centre in this case is the fact that the value offered by the companies cannot be determined. As such the problems with TAM analysis is that the developed way of business associated with the marketing ability cannot be made aware of to include a TAM analysis. A variability in the existing TAM analysis cannot provide Job Centre with an exact understanding of the changes that are required in the business.

Market Sizing
As stated earlier, the rate of unemployment at Oman is high. Almost 250,000 people are unemployed in the country and hence, it can be difficult for Job Centre to maintain a deep analysis of the requirement of the people. With a market size that is big, a company like Job Centre can manage to maintain a steady growth in the business profile in the country. Thus, it is necessary that Job Centre can undertake an understanding of the market size so that it can maintain a proper profile in the competitive environment. As such, the job profiles of the unemployed people are the depending on market size for Job Centre.

Risk Analysis
The risk for Job Centre can be gaining the trust of the people. Being a new company and the fact that the unemployment level is high, failure to mitigate the problem can be deemed as disastrous for the business of Job Centre. Another important risk that can be faced is the way with which the company can cope up with meeting the demand of the people. Promising high-profile jobs cannot be undertaken as it might bring about problems(Rebelo, 2017). As such it is necessary that low pay jobs be offered which can allow Job Centre to ensure that it manages to meet the basic requirement of the unemployed. However, profitability in this case, can be a serious factor to consider as the company might be unable to process the technology or resources necessary for the success and growth. Hence, these risks are to be considered as high risks with which Job Centre need to establish itself in the market.

Target Audience
The target audience for Job Centre is simple to determine. 250,000 people are unemployed and hence, these are to deemed as the target audiences that the company need to set store by so that a proper analysis of the business and the market can take place. This can even allow Job Centre to ensure that with every person being given the opportunity to get employed, the company can allow itself to ensure that it manages to maintain a growth facility for itself. Hence, with a high target market, Job Centre can ensure profitability, brand image as well as the ability to eradicate the unemployment status. However, the company need to remain free from corruption as it is one of the factors that cause unemployment in the country(Qizi, 2020). Overall, the opportunities are high for Job Centre on which the company can capitalise its success.

Future Markets
Currently the possibility of Job Centre to succeed in the market can be regarded as challenging. It needs to undertake excessive work so that it can gain the trust of the people that are unemployed. With the fulfilling of its goals the chances of success in the market can increase. In this way, Job Centre can maintain a proper analysis of the market and at the same time, move forward keeping in mind the challenges and changes that can be brought about while commencing with an understanding of the marketing scenario(Belwal, 2017). Thus, for Job Centre the future can be determined only through the success gained at the present. In future, the aim is to expand in countries that have low employment rate. With an understanding of the work culture as well as the factors that determine the market, success can be gained in these markets as it had been in Oman.

Situational Analysis
The situational analysis also can be determined based on the conditions in the market. The analysis of the external factors as well as the competition that are faced by Job Centre are the determining factor. However, one of the most important situations that is to be analysed is that of the level of corruption in the county. Many unemployed people might take illegal steps to commence gain employment from Job Centre. The company needs to ensure that precautionary measures are undertaken so that it can maintain a steady business profile (Mahdavinejad, 2018). This can account for the company to maintain its existence in the business and make decisions on its growth based on the requitement in the market.

Market analysis
The market analysis conducted on the opportunities of Job Centre can be considered to have an extensive measure in terms of understanding its business. However, from previous analysis already made, it can be stated that the target for Job Centre is evenly declared. The company have a huge market pool to choose from and it can cause a positive impact on the overall growth and success (Arslan, 2019). Thus, for the success of Job Centre the company need to undertake an extensive research on the external and internal environment as well as maintain a prolific understanding of the job that exists. In this regard, it can be stated that analysis like that of the competitor can also help Job Centre to cope up with the existing challenges in the market and maintain a steady profile so that it can be successful.Carrying out market analysis in Oman, it has been studied that there are various online job portals that are available in a country. They primarily offer listings of vacancies across different organisations in the country. However, it has been noted that there is a negligible number of job centres, which provide support and guidance for graduates for CV creation, guidance for applying for higher education programs, for applying for job opportunities in foreign countries. Therefore, it can be said that majority players in the market are focused only on providing job listings, rather than supporting graduates to develop their skills and talents or undergo practical experience before getting employed. This particular aspect clearly shows that there is a huge gap in the recruitment services market. There is no such dedicated firm that can provide pre-employment training and other hands on experience to help graduates develop confidence. It can be said that there is a golden opportunity available for the job centre to take advantage of the gap existing in the market.

PESTLE analysis

Political factors

Social factors

Technological factors

It has been noted that the Oman government is taking all the necessary steps to revive its economy therefore a strong support has been noted across the entire business environment. In the pandemic situation, the government has realised the importance of business performances for the overall economy and GDP growth. Another important factor about the company is that they have good global diplomatic relations with western countries that are expected to help in attracting foreign direct investment.

In the case of social factors, it has been noted that there has been a rising expatriate population in the country. This particular trend is expected to increase in the coming years as well. However, the major issue in the country includes rising number of graduates while less number of employment opportunities available in the country.

In terms of technology, Oman has been noted to be performing well as compared to other Middle East countries. The company has invested in telecom infrastructure and networks as well as building necessary infrastructure for the internet of things. These investments are expected to drive business opportunities in the country.

Economic factors

Legal factors

Environmental factors

Oman economy has suffered a negative decline in 2021. However, it is expected to improve sharply as the oil prices and overall demand of fuel is expected to increase in the coming months.

In the legal aspect, it has been noted that the company is trying its best to reduce documentation and other bureaucratic procedures to the issue of new licences for businesses. This is expected to drive new entrants in the market as well as it will have an impact on regulatory changes as well.

Environmental awareness initiatives are given less priority in the country.  There are certain schemes and programmes that have been run by the government.


Porter’s Five Forces

Five forces

Degree of threat

Analysis

Bargaining power of buyers

Low

In the case of bargaining power of buyers, it can be said that graduates and students seeking job opportunities have minimum control and bargaining power. Although, there are various other online portals available for job seekers, however, the service provided by the new job centre will be completely new and different.

Bargaining power of suppliers

High

Bargaining power of suppliers is high since, the job centre that is being set up is a new entrant in the market, therefore, it will have to focus on establishing its network with different companies and players in the market.

Threat of new entrants

Moderate

The threat of new entrants is low to moderate and the government has been investing in the development of telecom infrastructure as well as technology development in the country, therefore, new opportunities for businesses are expected to rise.

Competitive rivalry

Low to Moderate

Competitive rivalry in the overall market is low to moderate. There are various players that offer vacancy listing, as well as recruitment services for graduates. However, the job centre that is being planned will offer additional services; therefore, it will have a competitive edge over other rivals in the market.

Threat of substitutes

Low

The threat of substitutes is low, since, the company will offer qualification courses as well as recruitment services through online and offline methods. Therefore, the threat of substitutes is negligible in this specific field.

 

Internal environment
The internal environment analysis can be undertaken by identifying the resources that the company possess. One of the encouraging factors for Job Centre is that being new, the company can ensure that it manages to maintain a profile that can be used properly by the unemployed candidates. Although the trust level can be minimum the urge to try the organisation and enrol in its scheme can be high. At the same time, the resources for recruitment as well as for placement can be updated with clear knowledge of the activities that can be beneficial for the unemployed people. Keeping these in mind it can be stated that Job Centre can depend on its internal capabilities to cause major impact in the market.

SWOT analysis

  • Strength: The fact that well developed resources as well as updated technology can be gained is one of the distinguishing features for Job Centre due to its newly formed assessment.
  • Weakness: The company need to maintain its resources and not succumb to the corruption that might take place in the country.
  • Opportunity: Job Centre possess the opportunity to travel around the world and ensure that it manages to help the lesser developed countries with similar employment problems
  • Threat: The competitors can be a threat for the company. The way with which the competitors can bring about change can be a source of problem for Job Centre.

The analysis can allow Job Centre to understand the exact techniques it needs to undertake so that the management of resources as well as its proper implementation can be made for Oman

Marketing strategy in the target market
The marketing strategy which Job Centre can adopt in the target market need to be based on the ways with which progress of the unemployability can take place. This can mean that the principles of marketing are to be followed in a way that can allow Job Centre to ensure that it maintains a strategic formation of the business (Falahat, 2020). The target market is to be given good service at less amount so that trust from the people can be gained. At the same time, it can be prudent for the company to ensure that it manages to bring about a change in the way recruitment is made in the companies. This can allow Job Centre to ensure that it identifies proper method of business and at the same time, make a determined effort to bring about change within the given market.

Differentiating and positioning
The positioning for Job Centre needs to depend on the way with which it has managed to maintain its success in the business market. This can attest to the fact that an analysis of the competition is to be made. From the analysis, it can be stated that the positioning can be favourable for Job Centre. However, it is also necessary that Job Centre keep in mind the level of corruption as it can damage the reputation of the company. Thus, it is necessary that a differentiated approach be undertaken in which case Job Centre can maintain a confident profiling of its activities by ensuring proper growth. The differentiation can be in the form of providing employment opportunities at a cheap cost so that every person unemployed can have a better opportunity of a stable life.

It is important to note that the job centre will implement a differentiation strategy so as to position itself higher in the overall market. The primary purpose is to ensure that more and more graduates are aware about the new job Centre that is being set up in Oman and what are the features and services that it offers. Therefore, the job Centre will implement a differentiation strategy, where they will not just offer new and additional courses and services to help graduates, but, they will also form direct tie up with several multinational and domestic companies to ensure that the overall recruitment process can be smooth and seamless. The essential aspect is that the job Centre will offer differentiating services as compared to the existing job portals that are already operational in the country. Along with this, it has been decided that the job Centre will focus on positioning itself higher in terms of quality and prices for its services. Job centre will try to offer the best training programs, practical experience session, support for CV creation, guidance for career progression, and various other related services so as to achieve differentiating factor in the market.

Marketing objectives and goals
The marketing objectives and goals set for Job Centre include:

  • To study the effect of unemployment in Oman
  • To study the effects of the economic and social consequences of unemployment
  • To study the social class effects on unemployment.
  • Identify the social and psychological impacts.
  • Create a business plan for the development of the “Recruitment lab”

These goals help the company maintain a clarity with which it needs to progress in the current scenario. It can allow Job Centre to manage the effective way with which it can engage itself in the situation without having to think much of the consequences. The objectives can allow Job Centre to remain within the limits it possesses and consider the strengths and opportunities so that it can cash in on the success.

Financial forecast
General Assumptions
What are the basis for the below numbers??!!

Year

1

2

3

Current Interest Rate

10.00%

10.00%

10.00%

Tax Rate

30.00%

30.00%

30.00%

 

Projected Profit and loss

Profit and Loss

Sales

OMR 94,240.00

OMR 175,550.00

OMR 350,000.00

Placed Employees Payroll

OMR 51,836.00

OMR 99,750.00

OMR 171,000.00

Total Cost of Sales

OMR 51,836.00

OMR 99,750.00

OMR 171,000.00

Gross Margin

OMR 42,404.00

OMR 75,800.00

OMR 179,000.00

Gross Margin %

45.00%

43.18%

51.14%

Operating Expenses

 

 

 

Sales and Marketing Expenses

 

 

 

Advertising/Promotion

OMR 1,100.00

OMR 1,250.00

OMR 3,500.00

Bank Service Charges

OMR 1,019.00

OMR 1,000.00

OMR 1,500.00

Contributions

OMR 255.00

OMR 300.00

OMR 300.00

Dues & Subscriptions

OMR 887.00

OMR 250.00

OMR 500.00

Total Sales and Marketing Expenses

OMR 3,261.00

OMR 2,800.00

OMR 5,800.00

Sales and Marketing %

3.46%

1.59%

1.66%

General and Administrative Expenses

 

 

 

General and Administrative Payroll

OMR 10,000.00

OMR 22,000.00

OMR 35,000.00

Marketing/Promotion

OMR 6,516.00

OMR 6,500.00

OMR 12,800.00

Telephone & Pager

OMR 4,168.00

OMR 4,800.00

OMR 5,000.00

Recruitment

OMR 1,575.00

OMR 1,575.00

OMR 2,000.00

Referral Fees

OMR 170.00

OMR 250.00

OMR 500.00

Rent

OMR 6,102.00

OMR 9,600.00

OMR 10,000.00

Office Supplies

OMR 2,114.00

OMR 2,000.00

OMR 3,000.00

Postage

OMR 1,062.00

OMR 1,250.00

OMR 1,500.00

Printing

OMR 3,362.00

OMR 4,000.00

OMR 5,000.00

Professional Fees

OMR 6,941.00

OMR 5,000.00

OMR 7,500.00

Payroll Taxes

OMR 0.00

OMR 0.00

OMR 0.00

Maintenance and Repairs

OMR 311.00

OMR 750.00

OMR 2,000.00

Total General and Administrative Expenses

OMR 42,321.00

OMR 57,725.00

OMR 84,300.00

General and Administrative %

44.91%

32.88%

24.09%

 

 

 

 

Other Expenses:

 

 

 

Misc.

OMR 1,050.00

OMR 500.00

OMR 1,000.00

Total Other Expenses

OMR 1,050.00

OMR 500.00

OMR 1,000.00

Other %

1.11%

0.28%

0.29%

 

 

 

 

Total Operating Expenses

OMR 46,632.00

OMR 61,025.00

OMR 91,100.00

 

 

 

 

Profit Before Interest and Taxes

-OMR 4,228.00

OMR 14,775.00

OMR 87,900.00

Interest Expense

OMR 0.00

OMR 1,477.50

OMR 8,790.00

Taxes Incurred

OMR 0.00

OMR 4,432.50

OMR 26,370.00

 

 

 

 

Net Profit

-OMR 4,228.00

OMR 8,865.00

OMR 52,740.00

Net Profit/Sales

-4.49%

5.05%

15.07%

 

It can be seen from the above table that the total projected cost of sales is expected to increase significantly in the first three years. The total gross margin of the company is expected to increase as more and more experience will be gained by the employees which will help in reducing overall expenses. It has been noted that majority expenses will be across promotional activities as well as general and administrative payroll. During the initial months, focus will be to maintain proper accountability of all operating expenses so that proper analysis can be done. In the first year, the projected net profit is expected to be lower than the overall expenses, while it is expected to increase in the coming two years.

Projected cash flow

Cash Flow

Cash Received

Year 1

Year 2

Year 3

Cash from Operations

 

 

 

Cash Sales

OMR 23,562.00

OMR 43,750.00

OMR 75,000.00

Cash from Receivables

OMR 58,112.00

OMR 120,477.00

OMR 208,324.00

Subtotal Cash from Operations

OMR 81,674.00

OMR 164,227.00

OMR 283,324.00

 

 

 

 

Additional Cash Received

 

 

 

New Investment Received

OMR 10,000.00

OMR 20,000.00

OMR 0.00

Subtotal Cash Received

OMR 91,674.00

OMR 184,227.00

OMR 283,324.00

 

 

 

 

Expenditures

Year 1

Year 2

Year 3

 

 

 

 

Expenditures from Operations

 

 

 

Cash Spending

OMR 62,765.00

OMR 124,750.00

OMR 201,000.00

Bill Payments

OMR 37,123.00

OMR 43,357.00

OMR 67,812.00

Subtotal Spent on Operations

OMR 99,888.00

OMR 168,107.00

OMR 268,812.00

 

 

 

 

Additional Cash Spent

 

 

 

Long-term Liabilities Principal Repayment

OMR 4,500.00

OMR 4,500.00

OMR 4,500.00

Subtotal Cash Spent

OMR 104,388.00

OMR 172,607.00

OMR 273,312.00

 

 

 

 

Net Cash Flow

-OMR 12,714.00

OMR 11,620.00

OMR 10,012.00

Opening Cash Balance

OMR 30,566.00

OMR 17,852.00

OMR 29,472.00

Cash Balance

OMR 17,852.00

OMR 29,472.00

OMR 39,484.00

 

Based on the above projections, it can be said that three years cash flow projection has been done. An important point to be noted is that including all the cash sales and new investment received, it is projected that the net cash flow will turn out to be positive within 2 to 3 years. The cash balance of the organisation is expected to reach its new height by the end of the third year. Along with this, majority expenditure will be across bill payment as well as in operations.

Projected Balance Sheet

Balance Sheet

Assets

Year 1

Year 2

Year 3

 

 

 

 

Current Assets

 

 

 

Cash

OMR 30,566.00

OMR 42,186.00

OMR 52,199.00

Accounts Receivable

OMR 12,573.00

OMR 23,346.00

OMR 40,022.00

Total Current Assets

OMR 43,139.00

OMR 65,533.00

OMR 92,221.00

 

 

 

 

Long-term Assets

 

 

 

Long-term Assets

OMR 0.00

OMR 0.00

OMR 0.00

Total Assets

OMR 43,139.00

OMR 65,533.00

OMR 92,221.00

 

 

 

 

Liabilities and Capital

Year 1

Year 2

Year 3

 

 

 

 

Current Liabilities

 

 

 

Accounts Payable

OMR 2,761.00

OMR 3,635.00

OMR 5,747.00

Subtotal Current Liabilities

OMR 2,761.00

OMR 3,635.00

OMR 5,747.00

 

 

 

 

Long-term Liabilities

OMR 40,500.00

OMR 36,000.00

OMR 31,500.00

Total Liabilities

OMR 43,261.00

OMR 39,635.00

OMR 37,247.00

 

 

 

 

Paid-in Capital

OMR 17,600.00

OMR 37,600.00

OMR 37,600.00

Retained Earnings

-OMR 9,464.00

-OMR 17,721.00

-OMR 11,703.00

Earnings

-OMR 8,257.00

OMR 6,018.00

OMR 29,076.00

Total Capital

-OMR 121.00

OMR 25,897.00

OMR 54,973.00

Total Liabilities and Capital

OMR 43,139.00

OMR 65,533.00

OMR 92,221.00

 

 

 

 

Net Worth

-OMR 121.00

OMR 25,897.00

OMR 54,973.00

 

The most important part of the business is about its Assets and liabilities. In the balance sheet, it can be seen that the majority assets of the company will be in the form of cash, while total assets of the company is expected to reach new heights by the third year of operation. It is highly important for the senior managers of the company to keep the liabilities low as much as possible.

ROI

Ratio Analysis

Sales Growth

0.00%

186.28%

199.37%

 

 

 

 

Percent of Total Assets

Year 1

Year 2

Year 3

Accounts Receivable

29.15%

35.62%

43.40%

Total Current Assets

100.00%

100.00%

100.00%

Long-term Assets

0.00%

0.00%

0.00%

Main Ratios

 

 

 

Current

15.62441145

18.02833563

16.04680703

Total Debt to Total Assets

93.62%

90.83%

84.57%

Pre-tax Return on Assets

-9.80%

13.53%

57.19%

 

 

 

 

Additional Ratios

Year 1

Year 2

Year 3

Net Profit Margin

-4.49%

5.05%

15.07%

Return on Equity

-24.02%

23.58%

140.27%

 

 

 

 

Activity Ratios

 

 

 

Accounts Receivable Turnover

5.62

5.62

5.62

Collection Days

57

50

51

Accounts Payable Turnover

14.4

12.17

12.17

Payment Days

27

26

24

Total Asset Turnover

2.18

2.67

3.25

 

 

 

 

Debt Ratios

 

 

 

Debt to Net Worth

0

1.53

0.68

Current Liab. to Liab.

0.06

0.09

0.15

 

 

 

 

Liquidity Ratios

 

 

 

Net Working Capital

OMR 40,378.00

OMR 61,898.00

OMR 86,474.00

Interest Coverage

-1.71

4.21

18.58

 

 

 

 

Additional Ratios

 

 

 

Assets to Sales

0.46

0.37

0.31

Current Debt/Total Assets

6%

6%

6%

Acid Test

11.07

11.6

9.08

Sales/Net Worth

0

6.76

5.46

 

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