AbstractThetopicofthisthesisisorganisationalstrategyandcompetitiveadvantage,andtheproblem

formulation is as follows: “Isthereastrategy,whichwouldprovideScandinavianrecruitment

consultancies with a competitive advantage on the global market?” The empirical data is

mainlybasedonreportsandarticles,andthemethodologicalapproachtoanalysingthedata

ismixedmethods,hencebothqualitativeandquantitative.Thephilosophyofscienceof the

thesisisbasedoncriticalrealism,whichhasprovidedthethesiswithguidanceonhowtogain

adeeperunderstandingofthedataintermsofthreelayers.

Moreover,thethesisconsistsofaliteraturereview,whichprovidesapresentationofexisting

literaturerelevanttotheexaminationoftheproblemformulation.Thisliteratureconsistsof

thefollowingtopics:strategy,competitiveadvantage,organisationalculture,globalisationand

recruitment. The purpose of this literature was to obtain knowledge about the already

existingliteraturewithinthefieldandtoaddadeepertheoreticalstancetotheinvestigation

of the problem formulation. Furthermore, the theory section introduced an analytical

approach consisting of three elements: the SWOT-analysis, the TOWS-matrix and ‘Porter’s

GenericStrategies’,whichallprovidethethesiswithdifferentcontributions.

The results from the SWOT-analysis showed both differences and similarities within the

internalandexternalfactorsbetweenPeople&PerformanceandMercuriUrval.Theresultsof

theSWOT-analysis leadtotheTOWS-matrix,which identifiedsomeofthepossiblestrategic

initiatives based on the results from the SWOT-analysis. The third element of the analysis,

‘Porter’s Generic Strategies’ analysed and discussed the strategic position of the two

organisationswithintheglobalmarket.Thisshowed,thatPeople&PerformanceandMercuri

Urvalwere locatedmore or lesswithin the same area,which iswithin the scope of target

‘broad’ and in between the two sources of competitive advantage ‘cost leadership’ and

‘differentiation’.Thismeans,thatbothPeople&Performanceappealtoabroadtargetgroup

and intends tohave thecompetitiveadvantageof lowpricesandbeingable todifferentiate

itselfoftheglobalmarket.

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The discussion touches upon topics from the analysis such as the chosen analytical

framework and the implications hereof. Furthermore, the discussion touches upon the

implicationsof the finding in relation to the relevant theoryand literatureof this thesis, as

wellaspracticalimplicationsofthethesisinrelationtosimilarorganisations.

Toconclude,thefindingsoftheanalysisandthediscussionsectionofthisthesisindicatethat

thereisnoexactstrategy,whichwouldprovideaScandinavianrecruitmentconsultancywith

acompetitiveadvantageontheglobalmarket.Thereasontothis is, thatnotall factorsthat

playaroleinrelationtogainingacompetitiveadvantagecanbetreatedasastrategy,asfor

instanceorganisationalculture,whichneedstoarisenaturallybetweenemployees,andwhich

notcanbeforcedinrelationtotheimplementationofastrategy.Nevertheless,onthebasisof

existing literature and the findings of this thesis, there is a tendency that having a local

approachtotheglobalmarkethasbenefitsintermsofgainingacompetitiveadvantage.

Tekst

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OrganisationalStrategyandCompetitiveAdvantage–AComparativeCaseStudyonScandinavianRecruitmentConsultancies

CamillaTrendNielsen

Studyno.:20134304

31May2019

Supervisor:GuroRefsumSanden

AalborgUniversity:Culture,Communication&Globalisation

Numberofkeystrokes:152.501

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TableofContent

1. Introduction 51.1 ProblemStatement 61.2 Problemformulation 6

2. Theory 72.1 Literaturereview 72.1.1 Strategy 82.1.2 Competitiveadvantage 102.1.3 Organisationalculture 122.1.4 Globalisation 142.1.5 Recruitment 16

2.2 Analyticalframework 172.2.1 TheSWOT-model 172.2.2 TheTOWS-matrix 192.2.3 Porter’sGenericStrategies 21

3. Methodology 233.1 Philosophyofscience 243.1.1 Criticalrealism 24

3.2 Methodologicalapproaches 263.3 Researchdesign 273.4 Caseorganisations 283.4.1 People&Performance 293.4.2 MercuriUrval 30

3.5 Datacollection 303.5.1 Contextualdata 303.5.2 Datacollection:People&Performance 31

3.6 Dataanalysis 333.7 Delimitations 35

4. Analysis 364.1 SWOT-analysis 374.1.1 People&Performance 374.1.2 MercuriUrval 444.1.3 ComparisonofPeople&PerformanceandMercuriUrval 54

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4.2 TOWS-matrix 554.2.1 People&Performance 554.2.2 MercuriUrval 584.2.3 ComparisonofPeople&PerformanceandMercuriUrval 60

4.3 Porter’sGenericStrategies 614.3.2 People&Performance 624.3.3 MercuriUrval 634.3.3. ComparisonofPeople&PerformanceandMercuriUrval 64

5. Discussion 65

6. Conclusion 71

7. Bibliography 74

Models:

Model1:SWOT-model Page19

Model2:TOWS-matrix Page20

Model3:Porter’sGenericStrategies Page23

Model4:Porter’sGenericStrategies–Results Page62

Tables:

Table1:Overviewofcaseorganisations Page29

Table2:Codingofreviewsfrom‘Glassdoor’ Page35

Table3:SWOT-analysisonPeople&Performance Page37

Table4:SWOT-analysisonMercuriUrval Page45

Table5:TOWS-matrixonPeople&Performance Page55

Table6:TOWS-matrixonPeople&Performance Page58

Appendices:

AppendixA

AppendixB

AppendixC

AppendixD

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1. IntroductionThe globalisation ofmarkets is increasing and according to theDHLGlobal Connectedness

Indextheworldended2017moreglobalisedthaneverbefore(Ghemawat,2019).Basedon

an article frombusiness.com, Scandinavian organisations are lookedup to and are used as

inspiration for other countries in terms of gaining business success (Nastasi, 2017).

Organisations like Novo Nordisk, IKEA and Mærsk, just to mention a few, which are all

Scandinavian based have succeeded on the increasingly growing global market. So, what

cause this success? Understanding the fundamental principles of competitive advantage is

important for generating an effective business strategy, investing successfully, and

understanding the economy on a national and global scale (White, 2019).Competitive

advantage is a setof qualities that give organisations control over their competition. It

permitsorganisationstooffertheirtargetmarketaproductorservicewithhighervaluethan

industrycompetitors(White,2019).Therefore,gainingacompetitiveadvantageontheglobal

market is at every organisation’s interest. As an effect of the globalised economy,

organisations should not just attempt to have the most market share locally or even

nationally, but should instead consider their position on a global scale (White, 2019). In

connection with this, there are several suggestions and great advice on which strategy to

implementtogainsuchacompetitiveadvantageontheglobalmarket,still,howcomesome

organisations does not succeed in obtaining a competitive advantage and accomplish a

positionwithintheglobalcompetition?

Asapartofmy9thsemester,IcompletedaninternshipatPeople&PerformanceA/S,aDanish

HRconsultancybasedinHorsensandHolte.DuringmytimewithPeopleandPerformance,I

experiencedfirsthandbeingapartofalocalrecruitmentconsultancycompetingontheglobal

market. There was a sense of self-consciousness about being attractive, both locally and

globally,however,withonedaysnoticetheorganisationwentbankruptinFebruary2019.As

acontrary toPeople&Performance,MercuriUrval,arecruitmentconsultancyestablished I

Sweden, will also be part of the investigation of this thesis. People & Performance went

bankrupt in February 2019 after 15 years in the recruitment industry, however, Mercuri

Urval hasbeenon themarked formore than50 years andhas offices in23 countries. The

thesiswillentailacomparativecasestudywiththepurposeoflookingintotwoScandinavian

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recruitment consultancies, which have experienced the meeting with the global market in

different ways. Hence, this provides the opportunity to look into the differences and

similarities of two organisations within the same business, where one had the right

intentions,howeverdidnotsucceed,andcompareittoasuccessfulglobalorganisation.The

analysiswill be conductedwith the stances of critical realism aswell as amixedmethods

approach.

1.1 ProblemStatementInextensiontotheabove introduction, theproblemstatementof this thesis isbasedonthe

areas of organisational strategy and competitive advantage. Due to the increasing

globalisation and the need for organisations to obtain a competitive advantage to compete

effectivelyontheglobalmarket,thisthesisintendstoinvestigatetheimportanceofstrategic

approaches.

1.2 ProblemformulationBased on the above introduction to the topic of the thesis and the problem statement, the

problemformulationisasfollows:

“Isthereastrategy,whichwouldprovideScandinavianrecruitmentconsultancieswitha

competitiveadvantageontheglobalmarket?”

Toclarify ambiguous terms in relation to theproblem formulation, elucidationwillnowbe

provided.Thetermofglobalmarket iscommonlyknownastheactivityofbuyingorselling

goods and services in all the countries in the world. Hence, this thesis does not focus on

specific countries within the global market, however it intends to investigate if there is a

strategy, which can provide Scandinavian recruitment consultancies with a competitive

advantageontheglobalmarket.Therefore,thethesisdoesnotincludeexternalfactorssuch

aspoliticalandeconomicfactorswithinspecificmarkets,however, it includesmoregeneral

external factors such as competition within the recruitment industry. The definition of

competitive advantage is: Acompetitive advantageis anadvantageovercompetitorsgained

byofferingconsumersgreatervalue,eitherbymeansoflowerpricesorbyprovidinggreater

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benefits and service that justifies higher prices (Porter, 1985). This definition is based on

Porter’stheory‘Porter’sGenericStrategies’,whichisalsopartoftheanalyticalframework.

Toexaminetheproblemformulation,thisthesiswillconsistofseveralsections.Followingthis

section,theliteraturewillbeprovidedaswellastheanalyticalframework,whichconsistsof

threeparts:theSWOT-analysis,theTOWS-matrixandPorter’sGenericStrategies.Afterwards,

an introduction to themethodologywill be introduced. This part entails the philosophy of

science,methodologicalapproaches,researchdesign,caseorganisations,datacollection,data

analysis and delimitations. Following this, the analytical findings will be presented. These

findings lead to the discussion section,where some of the topics from the findingswill be

discussed in relation the literature and the chosen methodological stances. Finally, a

conclusionwillbedrawn,aswellasansweringtheproblemformulation,onthebasisofthe

analyticalfindingsandthediscussionsection.

2. TheoryIn thispartof the thesis I amgoing to introduce theoretical stances related tomyproblem

formulation. I have chosen to focus on the terms of strategy, competitive advantage,

globalisationandrecruitmentasthemainliterature,astheywillproviderelevantknowledge

forexaminingtheproblemformulation.Firstandforemost,aliteraturereviewoftheessential

termsmentionedwillbeprovided.Afterwards,theanalyticalframeworkforthisthesiswillbe

outlinedbasedontheliteraturereview.Thepurposeofthissectionofthethesisistoresearch

existingliteraturerelevanttotheproblemformulation.Theinterplaybetweentheliterature

reviewand the chosen analytical frameworkwill form thebase for examining theproblem

formulationintheanalysis.

2.1 LiteraturereviewThe literature review will be divided into four parts, where the existing literature of the

chosen research areas will be reviewed. These four parts consist of: strategy, competitive

advantage,organisationalculture,globalisationandrecruitment.Thereasonwhythese four

areas have been chosen is, that they are relevant for the problem formulation and it is

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necessarytodigdeeperintothetermsanddefinitionsofthesetogainabetterunderstanding

ofthetermstobeabletoexaminetheproblemformulation.

2.1.1 Strategy

Johnson,Scholes&Whittington,respectivelyProfessorofStrategicManagementatUniversity

ofStrathclydeandPrincipalPartnerofScholesAssociatesatSheffieldHallamUniversityand

ProfessorofStrategicManagementat theSaïdBusinessSchool (Johnson,2005),defines the

characteristics of strategy in their book Exploring Corporate Strategy (Johnson, 2005).

AccordingtoJohnson,Scholes&Whittington,strategyislikelytobeconcernedwiththelong-

termdirection of an organisation and canbe seen as the search for a strategic fitwith the

business environment. It can also be seen as creating opportunities by building on an

organisation’s resources and competencies (Johnson,2005,pp. 6-7). Strategicdecisions are

likely tobeconcernedwith thescopeofanorganisation’sactivitiesandarenormallyabout

trying to gain advantage for the organisation. Strategy and the strategic decisions of an

organisationare,accordingtoJohnson,Scholes&Wittington,affectedbybothenvironmental

forces, strategic capability and also the values and expectations of those who have power

withinandaroundtheorganisation(Johnson,2005,pp.7).

Inhisbook‘TheRiseandFallofStrategicPlanning’from1994HenryMintzberg,aCanadian

ProfessorinBusinessandManagement,pointsoutthatpeopleutilisethetermofstrategyin

severaldifferentways,howeverthemostcommononesbeingthefollowingfour(Mintzberg,

1994):

1. Strategyisaplan,a"how,"ameansofgettingfromheretothere

2. Strategy is a pattern in actions over time; for example, a company that regularly

marketsveryexpensiveproductsisusinga"highend"strategy

3. Strategy is a position; it reflects decisions to offer particular products or services in

particularmarkets

4. Strategyisperspective,thatis,visionanddirection

(Mintzberg,1994)

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Mintzbergclaimsthatstrategyappearsovertimeasintentionscollidewithandaccommodate

achangingreality.Hence,onemightstartwithaperspectiveandconcludethatitdemandsa

certainposition,whichistobeachievedbycarryingoutacarefullyconstructedplan,withthe

eventual outcome and strategy, which is reflected in a pattern apparent in decisions and

actions over time. This pattern in decisions and actions defines what Mintzberg called

"realised"oremergentstrategy(Mintzberg,1994).

Mintzberghassupportintheearlierwritingsofotherauthorsconcernedwithstrategyinthe

businessworld,mostremarkably,KennethAndrews(Mintzberg,1994).

KennethAndrews,anAmericansociologistandaHarvardBusinessSchoolprofessor,presents

adefinitionofstrategyinhisbook,‘TheConceptofCorporateStrategy’from1987asfollows:

"Corporatestrategyisthepatternofdecisionsinacompanythatdeterminesandrevealsits

objectives,purposes,orgoals,producestheprincipalpoliciesandplansforachievingthosegoals,

anddefinestherangeofbusinessthecompanyistopursue,thekindofeconomicandhuman

organizationitisorintendstobe,andthenatureoftheeconomicandnon-economic

contributionitintendstomaketoitsshareholders,employees,customers,andcommunities."

(Andrews,1987,pp.18-19)

Andrewsdrawsadistinctionbetween"corporatestrategy,"whichdeterminesthebusinesses

inwhich an organisationwill compete, and "business strategy,"which defines the basis of

competition for a given business.Hence, he also estimated "position" as a formof strategy

(Andrews, 1987). Strategy as the basis for competition is something another Harvard

BusinessSchoolprofessor,MichaelE.Porter,highlyemphasises.

Inhiswork‘WhatIsStrategy’from1996,Porterstressestheneedforstrategytodefineand

communicateanorganisation'suniqueposition,andhestates that it shoulddeterminehow

organisationalresources,skills,andcompetenciesshouldbecombinedtocreatecompetitive

advantage(Porter,1996).Porterarguesthatcompetitivestrategyisaboutbeingdifferent.He

adds,“Theessenceofstrategyischoosingtoperformdifferentlythanrivalsdo”(Porter,1996,

p.64).Inshort,Porterarguesthatstrategyisaboutcompetitiveposition,aboutdifferentiating

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yourselfintheeyesofthecustomer,aboutaddingvaluethroughamixofactivitiesdifferent

fromthoseusedbycompetitors(Porter,1996).

Theaboveleadstothenextpartoftheliteraturereview‘CompetitiveAdvantage’,wherethe

termwillbeelaboratedfurther.

2.1.2 Competitiveadvantage

According to Newbert, Ph.D. in strategic management and entrepreneurship from Rutgers

University,gaininganunderstandingofwhatiscompetitiveadvantageanddistinguishingthis

concept from organisation performance remains a challenge (Newbert, 2008). Though the

termsofcompetitiveadvantageandperformanceareoftenused interchangeably, the terms

do have conceptual differences. Competitive advantage can be characterised as the

implementation of a strategy,which is not beingusedby other organisations, performance

canbecharacterisedastheresultsoftheimplementationofthestrategies(Newbert,2008).

Thismeans,thattheaccomplishmentofcompetitiveadvantagebyanorganisationisaleading

predictor of the achievement of organisational performance. In other words, if an

organisationhasidentifiedtheircompetitiveadvantage,theywilluseitasleveragetoperform

in the future, so the attainment of competitive advantage is predicting strong organisation

performance (Newbert, 2008). It can be argued that this view on competitive advantage is

rather simplistic and that other factors play a role in terms of a strong organisation

performance.

Porterwas one of the first authorswithin the field of competitive advantage. According to

Porter, acompetitive advantageis anadvantageovercompetitorsgained by offering

consumersgreatervalue,eitherbymeansoflowerpricesorbyprovidinggreaterbenefitsand

service that justifies higher prices (Porter, 1985). This implies that competitive advantage

meanshavinglowcosts,differentiationadvantage,orasuccessfulfocusstrategy.Inhisbook

‘CompetitiveAdvantage–CreatingandSustainingSuperiorPerformance’ from1985,Porter

states thereare tworoutes togainingcompetitiveadvantage–oneroute is focusedoncost

andtheotherrouteisfocusedondifferentiation.Whenanorganisationisapplyingeitherof

theroutesonabroadbasis,theaimoftheorganisationalistoachieve‘overallcostleadership’

or ‘overall productdifferentiation’ (Porter, 1985).However,whenapplying the routeson a

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narrowbasistheorganisationaimstoachievecostleadershiporproductdifferentiationina

specificmarket,whichmeans,theorganisationwouldgaina‘niche’or‘focus’strategy.Yet,the

organisationwillcompetewithotherorganisationsintermsofbothcostanddifferentiation,

but their competitive advantage will come from either a cost or differentiation advantage

(Porter,1985).AccordingtoPorter,iforganisationsarenotpursuingcompetitiveadvantage

througheithercostleadershiporproductdifferentiation,itwillnotbecompetingeffectively

as itwill then try to ‘pleaseeveryone’.Hence, theorganisationwillbe ‘stuck-in-the-middle’

and will ultimately be failing (Porter, 1985). The framework of these strategies is called

‘GenericStrategies’andwillbeelaboratedinthesection‘analyticalframework’.

Anotherremarkable theorybyPorter ishis ‘FiveForces’ framework firstpublished in1979

(Porter,1979).The‘FiveForces’frameworkisananalyticaltoolforassessingthecompetition

of a business. The framework is used to identify the activity of the business area and the

competitionaswellas it isusedasananalysisof theorganisation’sposition in themarket.

AccordingtoPorter,itisnecessaryfortheorganisationtoknowthecompetitionsituationon

the market to choose an optimal competition strategy (Porter, 1979). The ‘Five Forces’

framework consists of an analysis of the following five areas: competition in the industry,

potential of new entrants into the industry, power of suppliers, power of customers, and

threatofsubstituteproducts(Porter,1979).Yet,thistheorycanbearguedtomostlyfitwithin

a business that sells a physical product, and not services as for instance recruitment

consultanciesdoes.

In connection to Porters definition of competitive advantage, Barney states: “a firm

experiences competitive advantages when its actions in an industry or market create

economicvalueandwhencompetingfirmsareengaginginsimilaractions”(Barney,2002,pp.

9).Barneyadds,thattoattainacompetitiveadvantageitisnecessaryfortheorganisationto

implement a value creating strategy that is not simultaneously being implemented by any

currentorpotentialcompetitoronthemarket(Barney,2002).QuitesimilartoPorter’spoint

ofview,Barneyarguesthattheachievementofcompetitiveadvantagebyanorganisationis

sustainedbytheorganisationbeingabletoneutralisethreatsfromrivalorganisationsinthe

market (Barney, 2002). A critical view on Barney’s definition is, that experiencing a

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competitiveadvantageperhapsdoesnotonlyentailcreatingeconomicvalue.Therefore, the

theorymightlackamoreholisticapproachtocompetitiveadvantage.

2.1.3 Organisationalculture

Thetermoforganisationalculturederivesfromtheconceptsof ‘groupnorms’and ‘climate’,

whichhasbeenusedbypsychologistslongbeforethetermofculture.Accordingto Schein,

organisationalculturecanbedifficulttodefinebecausetheconceptoforganisationsinitself

canbeambiguous(Schein,1990).Hestates, that it is thespecificpeople inanorganisation,

whichformaculture.Thisindicates,thatthepeopleintheorganisationhavehadstabilityand

commonhistoryandinthatwayformedaculture.Duetothat,someorganisationsmightnot

even have a specific culture, because the people in the organisation have not been able to

establishacommonculture.Theotherwayaround,organisations,whichshareahistoryand

experiencesmightbe interpretedashavingastrongorganisationalculture. In thatway, the

content and the strength of a culture in an organisation is individual depending on the

commonhistoryoftheorganisation(Schein,1990).

AsScheinexplains,groupswithasharedhistorycanhaveacultureandbecauseofthat,inan

organisation there can bemany subcultures. The organisational culture is developedwhen

theentireorganisationhassharedhistoryandexperiences.AccordingtoSchein,culturecan

bedefinedas:

“…a pattern of basic assumptions, invented, discovered, or developed by a given group, as it

learnstocopewithitsproblemsofexternaladaptionandinternalintegration,thathasworked

wellenoughtobeconsideredvalid,andthereforeistobetaughttonewmemberasthecorrect

waytoperceive,think,andfeelinrelationtothoseproblems.”(Schein,1990,s.p.111)

Havingthis inmind,onceagrouphas learnedtoholdcommonassumptions, thesepatterns

mentionedinthequotehappenautomaticallyandinthatwaycreatesmeaning,stabilityand

comfort (Schein, 1990). Yet, being critical to Schein’s theory, it can be argued that the

definition of organisational culture provided is somewhat broad and general and does not

directlyapplytoaspecificbusinessorculture.

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According toKotter, culturewithinabusinesscontext isnot thesameas theorganisation’s

strategy or structure. Strategy is simply a way for how to gain movement in a specific

direction(Kotter,1992).However,accordingtoKotter,thebeliefsandpracticesinastrategy

may,ormaynot,becompatiblewith theorganisation’sculture.Yet,when thesebeliefsand

practices are not compatiblewith the culture, it can be difficult to implement the strategy

successfully(Kotter,1992).Usuallyorganisationalcultureisreferredtoinsingular,however,

mostorganisationshavemultiplecultures.Thesesubculturescouldforinstanceoccurwithin

the organisation, due to it having several geographical units or different functional groups

(Kotter,1992).

Barney,anAmericanProfessorinStrategicManagement,suggestsanother,andmorespecific,

viewpointonwhatorganisational culture is.Hehasbasedsomeofhis thoughtsonPorter’s

work on competitive advantage and argues that, “organisations with sustained superior

financial performance typically are characterized by a strong set of coremanagerial values

thatdefinethewaystheyconductbusiness”(Barney,1986).Also,Barneystatesthatthereare

three conditions, which an organisation must possess in order to achieve sustained

competitive advantage through its culture: first and foremost, the organisation must be

valuable,whichmeans,thattheorganisationneedstotakeinitiativesthatleadtohighsales,

lowcosts,and ingeneral things thatadd financialvalue to theorganisation(Barney,1986).

Secondly, the culture must be rare. This implies the organisation having attributes and

characteristics,whicharenotcommonwithinotherorganisations(Barney1986).Finally,an

organisation that seeks sustained competitive advantage through its culture must be

imperfectlyimitable.Thismeans,thatorganisations,whichattempttoimitateothercultures

will be at some disadvantage, in terms of reputation, experience, etc., compared to the

organisationtheyaretryingtoimitate(Barney1986).BeingcriticaltoBarney’sapproachto

organisational culture it can be argued that he emphasises the managerial factors too

significantly,ascultureisoftenreferredtoassomethingthatshouldoccurnaturallywithina

groupofpeople.

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2.1.4 GlobalisationGlobalisationisaterm,whichhasagreathistoryandwhichhasseveraldefinitionsaccording

tothecontext.Duetothis,thissectionwillprovideabriefreviewofexistingliterature,which

is relatable to the problem formulation of this thesis. This is to not include irrelevant

knowledge and to make sure that the literature review will be true to the topic and the

problemformulation.

BartlettandGhoshalraisedtheissueofwhethertostandardiseworldwideortoadapttothe

environmentofeachcountry,whichcanbeconsideredanimportantstrategicconsideration,

due to the fact that competition is globalising (Bartlett, 1998). According to Bartlett and

Ghoshal, globalisingand localising forceswork togetherand successdependsonwhethera

businesscanachieveglobalefficiencyandnationalflexibilitysimultaneously(Bartlett,1998).

The term of local responsiveness implies that the organisations make strategic decisions

based on local context. According Bartlett and Ghoshal the five key drivers for local

responsivenessare:thedifferences inconsumertastes inthedifferentcountries, thetypical

characteristics of the product system in host countries, the administrative costs of

coordinating manufacture on a global basis, the improvements in technologies enable

organisationaltodispersemanufacturetosmallerlocalplantswithlowcost,andfinally,the

trade and legislative barriers set by local governments (Bartlett, 1998) This leads to the

saying of “think global, act local”, which Bartlett and Ghoshal assert as organisations

becomingmore globally competitive and, simultaneously,more sensitive and responsive to

nationalconditions(Bartlett,1998).BeingcriticaltoBartlettandGhoshal’stheory,especially

regardingthelocalresponsiveness,itcanbearguedtofitbetterwithinanotherindustrythan

recruitment,asit,forinstance,proposestermssuchasimprovementsintechnologies,smaller

plants, andcoordinatingmanufacturing.However, thepoint saying thatorganisationsmake

strategicdecisionsbasedonlocalcontextisstillrelevanttothisthesis.

Levitt introduces another school of thought. According to him the globalisation ofmarkets

entailstheuniversalityofpreferences,thestandardisationofproductsandservices,andthe

appropriateness of marketing designs (Levitt, 1983). According to Levitt, only global

organisationsconcentratingonwhateveryonewant rather thanconcentratingondetailsof

what everyone think theywantwill achieve long-term success (Levitt, 1983). This viewon

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globalisation seems to be very simplistic and could be interpreted as underestimating the

eventualimportanceofbeingabletoadapttotheindividualmarkets.

ContrarytoLevitt’spointofview,DouglasandWindintroducesanotherbelief,whichstates

globalisationbeingmerelyamyth,duetotheoversimplisticnatureof, for instance,Levitt’s

thesisofglobalisationofmarkets(Douglas,1987).ToquoteDouglasandWind:

“Theadoptionofastrategyofuniversalstandardizationappearsnaïveandoversimplistic(...)

suchanapproachasauniversalstrategyinrelationtoallmarketsmaynotbedesirable,and

mayleadtomajorstrategicblunders(...)Thedesignofaneffectiveglobalmarketingstrategy

doesnotnecessarilyentailthemarketingofstandardizedproductsandglobalbrands

worldwide.”(Douglas,1987,s.p.19-20)Again, basedon the abovequote,Douglas andWind state thenextbig evolutionary stepof

“going global” now has to be “going local”, in response to the growing demand for greater

flexibility,responsivenessandlocalsensitivity,andalso,accordingtoDouglasandWind,this

view on globalisation is pegged on the presence of local variations in taste, both on an

individual basis and shared scales, which influence decision-making processes (Douglas,

1987).

When having the problem formulation of this thesis in mind, all of the abovementioned

viewpoints on how to perceive globalisation could influence the thesis in different ways.

However,basedon theproblem formulation,whatwouldbenefit theexamination themost

would be to view globalisation from a point of view very similar to the one Bartlett and

Ghoshal has provided. Based on the viewpoint that globalising and localising forces work

together and success depends on whether a business can achieve global efficiency and

nationalflexibilitysimultaneouslywouldberelevanttohaveinmindduringthethesis,as it

examinesScandinavianbasedrecruitmentconsultanciesontheglobalmarket.

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2.1.5 RecruitmentAccording toWertherandDavis, respectivelyProfessor inManagementat theUniversityof

MiamiandformerPresidentoftheAcademyofManagementatArizonaStateUniversity(Sage

Publishing ,n.d. ) (AcademyofManagement,n.d.), recruitment is theprocessof findingand

attractingsuitablyqualifiedpeopletoapplyforjobvacanciesintheorganisation.Itcontains

severalactivitiesanorganisationusestoattractjobcandidateswhohavethedesiredabilities

and attitudes (Werther, 1989).Hence, according toWerther andDavis, recruitment can be

described as the process of generating a pool of qualified applicants for organisational job

vacancies(Werther,1989). Oneoftheactivitieswithintherecruitmentprocessisselection,

which is the process of choosing the most suitable applicant from the pool of applicants

recruitedtofilltherelevantjobvacancy(Werther,1989).

It is worth mentioning that there is a difference between in-house recruitment and

consultancy recruitment. In-house recruitment covers the internal needs of a single

organisationandtherecruitersaremostlikelyemployedinthegivenorganisation.However,

consultancyrecruitersworkforseveralclientsandhirecandidatesacrossdifferentindustries

(Pavlou,n.d.).Thisthesiswillonlyfocusonconsultancyrecruitment.

Similar toWertherandDavis,Flippo, formerProfessor inManagementatTheUniversityof

Arizona,statesthatrecruitmentistheprocedureofgeneratingcompetentindividuals’poolto

applyforemploymentwithinanorganisation.Hence,thegeneralpurposeoftherecruitment

process is toprovidetheorganisationwithapoolofpotentiallyqualifiedcandidatesforthe

jobavailable(Flippo,1976).

InrelationtotheselectionwithintherecruitmentprocessCasselletal.addthatthereferrals,

intermsofe.g.thecandidate’sformerleaderorcolleagues,playedeffectiveroleinthehiring

process,becausethereferralswereabletoprovidetherecruiterwithinformationaboutthe

candidateduring the recruitmentprocess (Cassell, 2002). Other aspectsof theprocessare

something that DeCenzo & Robbins touch upon in their book Fundamentals of Human

ResourceManagementfrom2010(DeCenzo,2010).

According to DeCenzo & Robbins, respectively Professor of Management at Towson

University and Ph.D. at University of Arizona, an effective recruiting process requires a

17

significantpoolofdiversecandidatestoselectfrom(DeCenzo,2010).Attaininganadequate

poolof candidates, however,maynotbe easy, and recruitersneed toknow thebestplaces

fromwheretheyareabletorecruitqualifiedcandidates.Thiscanbeexceptionallychallenging

in timesof economic growth that result in a tight labourmarket andoverwhelmingduring

difficult economic times resulting in overqualified candidates or an abundance of résumés

(DeCenzo,2010).Asignificantobjectiveofrecruiting,then,istocommunicatethepositionin

such away that qualified candidates respond. The reason to this is, themore applications

received,thebettertherecruiter’schancesareforfindingthecandidatewhoisbestsuitedto

thevacancy(DeCenzo,2010).

To briefly sum up the above literature review on recruitment is appears, that all of the

authors mentioned more or less agree on the term and function of recruitment and the

processhereof.Theliteratureshowsthatrecruitmententailsseveralprocessesforattracting

relevant and qualified candidates based on systematically identifying the job vacancy,

describing the job, gathering information about the individual candidates and so on.

Furthermore, recruitment is a challenging task because the candidate’s ambitions and

objectives need to fitwith the organisation. On the basis of the above literature reviewon

recruitment,thisisthepointofviewthisthesiswillhaveonthearea.

2.2 AnalyticalframeworkInthissub-sectiontothetheoreticalparttheSWOT-analysis,theTOWS-matrixand‘Porter’s

GenericStrategies’willbeelucidated.For the thesis,all threewill functionas theanalytical

frameworkwheretheaboveliteraturereviewwillprovidemorein-depthknowledgerelevant

toexaminetheproblemformulation.

2.2.1 TheSWOT-modelWhendeveloping abusiness strategy it canbebeneficial to takeuseof the SWOT-analysis,

whichisabusinesstoolthatcanhelpidentifyandunderstandtheorganisation’scompetitive

andmanagerial situation. The analysis describes both internal and external factors, which

respectively are: strength, weaknesses, opportunities and threats (Lægaard, 2013, s. 254).

18

ThepurposeofdoingaSWOT-analysisistodevelopanorganisation’sstrategyonthebasisof

awell-consideredsituationalanalysiswherebothinternalandexternalfactorsareanalysed.

Also,forthemodeltoberelevantandusefulforcreatingarealisticviewoftheorganisation,

the SWOT-analysis should be seen in relation to competing organisations on the market

(Lægaard,2013,s.254-256).

Theinternalfactors,strengthsandweaknesses,withintheSWOT-analysiscovers

the factors,which the organisation itself can influence on a daily basis in terms of existing

resourceswithin theorganisation.Hence, theessentialquestionsare,does theorganisation

have the necessary resources in termsof employees,management, economy, expertise and

knowledge?(Buskbjerg,2019).Whenanalysingtheinternalfactors,therelationshipbetween

strengthsandweaknessesappearsanditbecomeseasiertofindsolutionstoeventualinternal

weaknessesandchallenges(Buskbjerg,2019).

TheexternalfactorsoftheSWOT-analysiscoveropportunitiesandthreats,which

comesfromsourcesoutsideoftheorganisation.Thesefactorsareuncontrollable,whichwill

eitherbeanadvantageoradisadvantagefortheorganisation,anyhow,thesefactorscan’tbe

controlled.So,thesefactorsareuncontrollable;athoroughanalysiswillenhancethechance

foracompetitiveadvantageonthemarket(Buskbjerg,2019).

However,thepurposeofthemodelisnotonlytofillintheinternalandexternal

factors.Thepurposeistostaycriticalwhenanalysingthefourelements,whichmeansthatthe

analysisshouldincludestatistics,relevantandcurrentnewsandmeasurements–inthatway,

theanalysiswillbecomewelldocumentedandreliable(Lægaard,2013).

Some limitations when doing a SWOT-analysis are, that the model does not provide

specificsolutionsorofferalternativedecisions.Thiscanbeconnectedwithanotherlimitation,

whichis, thattheanalysismightproducea lotof information,however,notallof it turnsof

being useless (Queensland Government , n.d. ). To avoid the information gained from the

SWOT-analysis beinguseless and to secure that the informationwill endupwith an actual

conclusion, the thesis will contain a TOWS-analysis based on the finding from the SWOT-

analysis.Thiswillbeexplainedfurtherinthefollowingsection.

19

Model1:SWOT-model

(MinesotaDepartmentofHealth,n.d.)

2.2.2 TheTOWS-matrixThe TOWS-matrix supports the SWOT-analysis by focusing on which areas are needed to

focus on as strategic development opportunities. The purpose of the TOWS-matrix is to

identify the strategic development possibilities of the organisation. These are expressed

through combinations of internal and external factors of the SWOT-analysis. The outcome

from the combinations will provide suggestions to new initiatives when working with an

organisation’s strategy (Lægaard, 2013, s. 261). The following is the combinations of the

internalandexternalfactorsfromtheSWOT-model,whichwillformthebasisfortheTOWS-

matrix:

• SO-actions:Whichactionsdotheorganisation’sstrengths(internal)andopportunities

(external) lead to? This implies initiatives, where the organisation can utilise it’s

strengthstotakeadvantageofanopportunity.

20

• WO-actions: Which actions do the organisation’s weaknesses (internal) and

opportunities (external) lead to?This implies initiatives,where theorganisation can

takeadvantageofanopportunityinspiteofitsweaknesses.

• ST-actions: Which actions do the organisation’s strengths (internal) and threats

(external)leadto?Thisimpliesinitiatives,wheretheorganisationutilisesitsstrengths

tocounterathreat.

• WT-actions: Which actions do the organisation’s weaknesses (internal) and threats

(external) lead to?This implies initiative,where theorganisationmust respond to a

threateveniftheorganisationhasaweaknesswithinthearea.

(Buskbjerg,2019)(SystimeA/S,n.d.)

In the below the TOWS-matrix is presented. By analysing strengths and weaknesses,

opportunities and threats, the next step within this thesis is to identify, which strategic

initiativesarepossibleonthebasisoftheresultsfromtheSWOT-analysis.

Model2:TOWS-matrix

Internalconditions

Strengths(S)1.2.3.4.

Weaknesses(W)1.2.3.4.

Opportunities(O)1.2.3.4.

(SO)Strategicinitiative1.2.

(WO)Strategicinitiative1.2.

Threats(T)1.2.3.4.

(ST)Strategicinitiative1.2.

(WT)Strategicinitiative1.2.

(SystimeA/S,n.d.)

Externalconditions

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2.2.3 Porter’sGenericStrategiesHere,Porter’sGenericStrategiesispresented.Thepurposeofthetheorywithinthisthesisis

toanalyseanddiscussPeople&Performance&MercuriUrval’spositiononthemarket.

According to Porter, an important factor when choosing a competitive strategy is to

determinethepositionwithintheindustryoftheorganisation,hence,anorganisationthatcan

position itself well has high chances of earning high rates (Porter, 1985). In his book

‘Competitive Advantage – Creating Superior Performance’ from 1985, Porter states that

“Being all thing to all people” is a recipe for strategic weakness or below average

performance, which indicates that the organisation has no competitive advantage (Porter,

1985,pp.12).Fundamental forabove-averageperformanceorganisations in the longrun is

creatingsustainablecompetitiveadvantage.AccordingtoPorter,therearethreebasictypesof

competitive advantage an organisation can achieve: cost leadership, product differentiation

andfocus.Thefocusstrategyhastwovariant:costfocusanddifferentiationfocusasshownin

thematrixfurtherdownthissection(Porter,1985).

Eachofthegenericstrategiescanindifferentwaysleadtocompetitiveadvantage,whichisa

combination of the choice of the type of competitive advantage and the scope of strategic

target (Porter,1985).As illustrated in thematrixbelow, theaimof thecost leadershipand

differentiationstrategiesistoseekacompetitiveadvantageinabroadrange,whiletheaimof

thefocusstrategies(costfocusanddifferentiationfocus)seekacompetitiveadvantagewithin

a narrow segment and will most likely create a niche (Porter, 1985). The specific actions

essential to implement oneof the generic strategies vary from industry to industry. In this

thesis, these specific actions will be analysed on the basis of the above-mentioned SWOT-

analysisandTOWS-matrix.

Costleadershipisthestrategywheretheorganisationseekstobethelow-costperformerinits

industry.Also,thisstrategyentailsthattheorganisationhasabroadscopeandisabletoserve

several customers (Porter, 1985). Low-cost performers usually sell a standard or pared

product or service. According to Porter, if the organisation can achieve and sustain overall

costleadership,itwillbecomeanabove-averageperformer(Porter,1985).

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Differentiation is the strategy where an organisation seeks to differentiate itself from the

others on the market. This is done by selecting some attributes that several consumers

perceiveasimportantandafterwardstheorganisationuniquelypositionsitselftomeetthose

needs. Hence, the price of the product or service will also be affected by the uniqueness

(Porter, 1985). The differentiation can appear in different variations depending on the

industry, however, the differentiation could for instance be within the product itself, the

delivery, or perhaps the marketing approach (Porter, 1985). According to Porter, an

organisation that can achieve and sustain differentiation will become an above-average

performer if itseconomic incomeexceeds theextracosts incurredbybeingunique(Porter,

1985).

Focus is a strategy,which is different from the cost leadership and the differentiation as it

restson thechoiceofanarrowcompetitivescopewithinaspecific industry(Porter,1985).

Organisations, which utilise focus strategies concentrate on specific nichemarkets and, by

understanding the dynamics of that market and the unique needs of customers within it,

develop uniquely low-cost or well-specified products or services for that market (Porter,

1985).An organisation that can achieve sustainable cost leadership (cost focus) or

differentiation (differentiation focus) in its specific target market, the organisation will

becomeanabove-averageperformer.

An organisation that chooses to engage in each of the generic strategies, however fails to

achieveanyof them, isaccordingtoPorter ‘stuck in themiddle’ (Porter,1985).Contraryto

choosingoneoftheabove-mentionedstrategies,beingstuckinthemiddlemostlikelymeans

theorganisationbeingabelow-averageperformer.Becomingstuckinthemiddleisusuallya

signoftheorganisationnotbeingabletomakeadecisionabouthowtocompeteandwillin

mostsituationsbeoutcompetedbyotherorganisations,whichdidmakeadecisiononwhich

strategy to utilise (Porter, 1985). With that said, some organisations are able to create

separateentitieswithintheorganisation,whichmeans,thattheyperhapsareabletotakeuse

ofseveralstrategieseventthoughthereisariskofbeingstuckinthemiddle(Porter,1985).

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Model3:Porter’sGenericStrategies

(MindTools,n.d.)

AcritiqueonPorter’sgenericStrategiesis,thatitisoverlybroadandpresentanarrowview

ofdifferentiationwithauniqueproductsoldatahighprice,andontheotherhandastandard

product. Also, it can be discussed that differentiation and cost leadership can actually go

togetherdependingontheindustryandspecificorganisationthemodelisusedon.

3. MethodologyIn this part of the thesis I am going to introduce the methodological stances used for

examiningtheproblemformulation.Thepurposeforthissectionistoexplaintheapproachto

examiningtheproblemformulation.First,apresentationofthephilosophyofsciencechosen

forthethesiswillbeprovided.Second,themethodologicalapproachesarepresented.Third,

theresearchdesign,consistingofanintroductiontocasestudiesisprovided.Fourth,thecase

organisations in terms of People & Performance and Mercuri Urval will be introduced.

Afterwards,datacollectionanddataanalysiswillbeexplained,andfinally,thedelimitations

ofthisthesisarepresented.

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3.1 Philosophyofscience

In this part of themethodology section, critical realismwill be presented as the scientific

approachforthisthesis.Firstandforemost,themainprinciplesofcriticalrealismwillbriefly

bedescribed.Thiswillbefollowedbyanintroductionoftheterminrelationtothisspecific

thesis.Afterwards,anintroductiontothequalitativeanddeductiveapproachinrelationtothe

thesiswillbeprovided.

3.1.1 Criticalrealism

The English philosopher Roy Bhaskerwas the founder of the critical realism,which is the

holisticalternativetothescientificunderstandingofpositivism.Criticalrealismspansseveral

interpretiveperspectives,however,thisbriefintroductionwillentailtheperspectivegivenby

Peter Wad, a Danish Professor Emeritus in the Department of Management, Society, and

Communication(CopenhagenBusinessSchool,n.d.).ThereasonwhytheperspectiveofPeter

Wadisrelevant forthisthesis is, thatheprovidesaglobalbusinesstakeoncriticalrealism.

The critical realism has the same ontology as positivism, hence, there exists an objective

realityindependentoftheindividualobserverandthispersonsknowledgeofit.Furthermore,

it entails going fromexperiencingphenomena to findingoutwhichmechanisms, structures

etc.hascreatedthisspecificphenomena.Ontology isdefinedasthedoctrineofbeing(Wad,

2015). However, critical realism differs from positivism in terms of the empirical realism:

“realityisexhaustedbywhatisperceivedbyhumansenses”1or,inotherwords,“whatcannot

be observed, does not exist”2(Wad, 2015). Hence, critical realism disagrees that reality

directlyreflectstheempiricdataandstatesthattheoryandempiricdataonlyslightlycovers

reality (Wad,2015).This leads to the thoughtof ‘deep’ontologyaboutrealityasacomplex

system, which is build up by three ontological layers. In order to uncover the underlying

mechanismsandhowtheysupportorcausetheempiricalandfactualdomain,theroleofthe

researchermustbetouncoverallthreelayers:

1”virkelighedenerudtømtafdet,somladersigerfaremeddemenneskeligesanser”(Wad,2015)2”hvadderikkekaniagttages,findesikke”(Wad,2015)

25

1. The empirical layer,which entails an extract of reality and includes the experienced

actions.Hereismeanttheindividuals’perceptionandreflectionofthefactualevents.

-Inthisthesis,theempiricallayerwillbeincludedasthedatacollectedinrelationto

People&PerformanceandMercuriUrval.Thedatawillbespecified furtherdown in

themethodologysection.

2. The factual layer constituted by experienced and factually existing conditions. This

includes phenomena and events that occur, whether or not they are experienced.

-Intermsofthisthesis,thefactuallayerwillentailtheanalysisoftheempiricaldata.

3. The real layer, which includes structures of underlying generative forces and

mechanisms that elicit the factually existing relationships and are therefore often

unobservable.

- The real layer illustrates the underlying layer, which in this thesis entails the

discussionsofthefindingsfromtheanalysis.

Thus, these three layers reflectsa ‘deep’ senseof realitywithanopenandcomplex system

consisting of divided layers,which exist in relation to each other (Wad, 2015). To gain an

understanding of the factual and empirical layer it is necessary to cover and explain the

underlyingmechanismsthatsupportorperhapscausetheempiricalandfactuallayer(Wad,

2015)Where positivism confines itself to the empirical domain (what cannot be observed,

doesnotexist),thecriticalrealismclaimsthatrealityhasanunobservablecharacterandthus

embracesallthreelayers.Basedonthis‘deep’ontology,thecriticalrealismthusdiffersfrom

other science-theoretical approaches by 1) reality has a dimension that is not directly

observable,which cannot be reduced towhat empirically can be observed. 2) Reality does

exist,whetheritisacknowledgedornot(Wad,2015).

Theaimofemployingcriticalrealismtothisthesisisnotonlytounderstandwhichstrategy

People & Performance and Mercuri Urval have employed to the organisation, but also to

investigatetheunderlyingmechanisms,whichcanbedecisiveforwhethertheorganisations

aresuccessfulornot.

Critical realism is an appropriate philosophy of science as it intends to gain a deeper

understandingoftheunderlyingfactorsinanorganisation,whichcannotbeachievedmerely

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by observing. Though, in the situation of this thesis, it might appear being a challenge to

follow the layers of critical realism exactly, as the empirical foundation of does not entail

correspondencewith the caseorganisations in termsof, for instance, interviews.Yet, I find

critical realismappropriate for this thesis, as itsmain conceptwill beanadvantage for the

problemformulationandwillservebeneficialresultsinrelationtothepurposeofthethesis.

Hence, critical realism provides a deeper insight into the case organisations People &

performanceandMercuriUrvalbynotmerelyfocusingonobviousandsuperficial facts,but

offersinsightintounderlyingfactorsoftheorganisations.Thisisanopportunitytoexamine

thedifferencesandsimilaritiesbetweenthetwocaseorganisationsofthisthesis.

3.2 MethodologicalapproachesThe methodological approaches in relation to this thesis consist of a combination of

qualitative and quantitative, deductive and inductive methods. The qualitative method

providesthethesiswithathoroughwayofexaminingthedata,asitallowslookingintosome

underlyingfactorssuchasorganisationalculture.Whenutilisingthequalitativemethod,this

thesis isonlytakingtwoorganisations intoaccount,whichdoesnotgivetheopportunityto

generalise,however,itgivestheopportunityunderstandcoherenceandmechanismsbetween

People&PerformanceandMercuriUrval,whichmightprovideaninsightintotendenciesthat

can be transferred to other similar organisations. It is worthmentioning that I have been

employedatPeople&PerformancefromAugust2018toFebruary2019whenthebankruptcy

emerged.ThisentailsthatIhaveagreaterinsightintoPeople&PerformancethanIhaveinto

MercuriUrval.Therefore, Iamawarethatthere isariskofmyownperceptions influencing

thethesis,however,thisknowledgealsoprovidesmewithabetterunderstandingofthedata.

The quantitative method will also be taken into account in terms of a few

statistics.Theadvantagebyhavingamixeddatacollection,whichconsistsofbothqualitative

and quantitative data, is thatmore data is available and the quantitative data, in terms of

statistics,will support thequalitativedata,hence,provideamore in-depthanalysis. In that

way,thedatacanbeconnectedandprovideabroaderperspective.Yet, if thisconnectionof

thequalitativeandquantitativedatadoesnot succeed, there is a riskof thedata collection

beingsomewhatsuperficial,asthemixedmethodswillnotofferanin-depthviewintoeither

thequalitativeorquantitativedata.

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Thedeductiveapproach is anothermainapproachof this thesis.Deductionmeans, starting

froma theoretical point of view, andon thebasis of this, formulate a problem formulation

(Andersen,2015).This showsbyhaving theoretical stances toelucidate reality, in termsof

the casesofPeople&Performance andMeruriUrval. Therefore, thedeductive approach in

relationtothisthesismeans,thattheproblemformulationisansweredonthebasisofcases

examined in the light of theoretical stances.However, it canbe argued that this thesis also

includestheinductiveapproach,whichfocusesonthecreationoftheorybytakingitspointof

departure in the empirical data (Andersen, 2015), as it takes its point of departure in a

specific case study, and also, because some of the data will be coded, not on the basis of

theory,butinrelationtowhatisrelevantinthedata.Thiswillbeelaboratedinsection‘3.5.3

Datacollection:MercuriUrval’.

3.3 ResearchdesignTheresearchdesignofthisthesisentailsacomparativecasestudy.Thechoiceofacasestudy

ismadebecauseitisexpectedtoadvancetheunderstandingoftheresearchofthethesis.The

purposeofacasestudy,inrelationtothisthesis,istogaininsightandunderstandingofthe

problemformulationratherthangeneralisation.Thisisalsowhytheselectioncriteriaforthe

chosencasesarebasedoncriteriathatareconsistentwiththeproblemformulation,litarature

and theanalytical framework.Thepurposeofa comparative case study for this thesis is to

comparePeople&PerformanceandMercuriUrvalanddrawconclusionshereof.Hence, the

purposeistocomparethestrategiesofbothorganisationsinasystematicway,intermsofan

analyticalframework,toexploredifferentdimensionsintermsofdifferencesandsimilarities.

When conducting a case study, triangulation is one of the defining features.

Triangulationreferstothecollectionofdatathroughdifferentmethodsanddifferentkindof

dataandcanbetracedbacktoCampellandFiske(1959),whoarguedthatthemainadvantage

of triangulation is, that it can provide amore complete, holistic and contextual portrait of

what isbeingstudied (Campbell,1959). In relation to this thesis, thismeans, thatPeople&

Performance and Mercuri Urval will be studied from different angles and from both

qualitative and quantitative data. In essence, triangulation is used to reduce

misinterpretations,duetotheorganisationsbeingstudiedfromtheuseofmulti-methods.Yet,

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being critical to the use of triangulation, it can be a challenge if the results from different

methods and sources are not consistent, and also, if the different methods come up with

contradictory results.However,according toSilverman,wedonotneed toevaluatedataas

trueor false reporton reality, butweneed to treat thedata asdisplaysofperspectiveson

reality (Silverman, 1993). Also, it is worth mentioning that all research methods have

advantagesanddisadvantagesalldependingonthepurposeoftheresearch.

Tosumup,thepurposeofutilisingacomparativecasestudyinthisthesis isto

gaininsightandunderstandingofPeople&PerformanceandMercuriUrvalandalso,tohavea

real life context to the problem formulation. Hence, when comparing data on respectively

People&PerformanceandMercuriUrval,thedifferencesandsimilaritiesappear,whichwill

providethethesiswithknowledgeoftendenciesthatcanbeappliedtosimilarorganisations.

3.4 CaseorganisationsIn thispartof the thesisadescriptionof thecaseorganisations,People&Performanceand

MercuriUrvalwillbeprovided.Astheproblemformulationindicates,thetwoorganisations

used as cases for this thesis originate in the Scandinavianmarket. That is to say, People&

Performancehas its origin inDenmark andMercuriUrval has its origin in Sweden. First, a

table of the organisations’ basic facts are presented to give a brief overview.Afterwards, a

presentationofrespectivelyPeople&PerformanceandMercuriUrvalwillbeprovided.The

dataforMercuriUrvalwillbebasedontheirDanishdepartment.

29

Table1:Overviewofcaseorganisations

Datafrom2017

People&Performance MercuriUrval

Yearoffoundation 2004 1974(DKdepartment)

Countryoforigin Denmark Sweden(est.1967)

Numberofemployees 51 101

Presentinothercountries No 23

Revenue2017inDKK 672.553(aftertax) 2.328.826(aftertax)

Source:(People&PerformanceA/S,2017),(MercuriUrvalA/S,2017),(Virk,n.d.)

3.4.1 People&Performance

People & Performance is a consultancy established in 2004. Until February 2019 its main

servicesconsistedofthefollowingbusinessareas:recruitmentandoutplacement,leadership

development, strategy and business development, sales development and training, and

businessanalysis(People&PerformanceA/S,2017).InFebruary2019theorganisationwent

bankrupt and the business area ‘leadership development’ was bought by Compass Human

ResourcesGroup(Schüt,2019).Hence, thenewconstellationofPeople&Performancedoes

not entail the four other business areas of recruitment and outplacement, strategy and

business development, sales development and training, and business analysis. It is of high

importance tomention, that this thesiswill focusonPeople&Performance’s situationas it

wasinthefinalperioduptothebankruptcy,whichentailedallfivebusinessareas.People&

Performance offered consulting services and entered long-term agreements with some of

Denmark’s largestcompanies,which includedtasksboth inDenmarkandabroad(People&

Performance A/S, 2017). People & Performance’s main office was located in Horsens,

however,italsoentailedanofficeinHolte.Accordingtotheannualreportfrom2017,People

&Performancehad51employedonaveragein2017(People&PerformanceA/S,2017).The

reasonwhyitisinterestingtoexamineanorganisationlikePeople&Performance,whichhas

gonethroughbankruptcy,isthatitcanprovideaninsightanunderstandingofanorganisation

thatdidnot succeed.Hence,People&Performance is anexampleof a case,which cangive

furtherknowledgeandbeusefulforsimilarorganisations.

30

3.4.2 MercuriUrvalMercuri Urval is a recruitment consultancy established in Sweden in 1967, thus, it could

celebrate 50 years in the recruitment business in 2017 (Human Resource Director, 2017).

MercuriUrvalhasgrownfromoneofficeinStockholmtohavingofficesaroundtheworld,all

ofwhichprovide global reach and insight onbehalf of the organisation’s clients inEurope,

Asia-Pacific, the Americas and Africa (Human Resource Director, 2017). Their Danish

department was established in 1974 and had 101 employed on average in 2017 (Mercuri

Urval A/S, 2017). Mercuri Urval offers consultancy services within the fields of executive

search, professional recruitment, and talent development (Mercuri Urval A/S, 2017).

According to Mercuri Urval’s annual report from 2017, the organisation consists of

departments in23countriesspreadonfivecontinents.Thereasonwhyit is interestingand

relevanttocomparePeople&PerformancewithMercuriUrvalis,thattheyoperatewithinthe

samebusinessareaandtheyarebothestablishedwithinScandinavia.Furthermore,Mercuri

Urvalhasbeen in the recruitmentmarket formore than50yearsand ispresent in several

countriesaroundtheworld,which indicates, that theorganisationhasgainedacompetitive

advantage in the globalmarket. Hence, it is interesting to compare an organisation,which

wentthroughbankruptcy,withasimilarorganisationthathasbeenintheglobalmarketfor

fivedecades.

3.5 DatacollectionIn this part of the thesis the data collection will be outlined. First, an introduction of the

general data used for the analysis will be presented, followed by the data specifically

associatedwithrespectivelyPeople&PerformanceandMercuriUrval.

3.5.1 ContextualdataThe contextualdata includesdata,which is not specifically connectedwith eitherPeople&

Performance orMercuri Urval, however, it entails data appropriate for both organisations.

ThecontextualdatausedinthisthesisincludesareportmadebyLinkedInTalentSolutions,

which is concerned with recent recruitment trends. LinkedIn Talent Solutions is a part of

LinkedIn,whichprovidesdataandtoolsfortalentprofessionalstoidentifyandengagewith

thehighestpotential(LinkedInTalentSolutions,2018).Thereportiscalled‘GlobalRecruiting

31

Trends 2018’ and is a survey regarding recruitment trends and is based on nearly 8,815

recruitersandhiringmanagersfrom39countries(LinkedInTalentSolutions,2018).Whatthe

respondentshaveincommonisthattheyareallmembersofLinkedIn.

The LinkedIn survey is concerned with internal HR and recruiting. Yet, as mentioned in

section ‘2.1.5 Recruitment’, this thesis is only focusing on external recruitment in terms of

consultancies.However,bystayingcriticalinrelationtothissurveyIassessitbeingrelevant

astheyprovidearecentinsightintotheglobaltrendswithintherecruitingbusiness.

3.5.2 Datacollection:People&PerformanceThedataused foranalysingPeople&Performance isbasedonseveral typesofmaterial:1)

Press release in terms of an article byHorsens Folkeblad, a local Danishmedia. The press

releasecontainsstatementsfromtheCEOatPeople&Performance,TorbenNørby,whichis

worthhavinginmindwhenusingitintheanalysis,asitmightprovideabiasedviewonthe

bankruptcy. Also, an article by PSG, which is a global provider of outsourced recruiting

supportwithclientsacrosstheglobe,willbetakenintoaccount(PSG,n.d.)2)Annualreports,

which is utilised to gain an insight into some internal factors of People& Performance. 3)

Socialmediaprofile in termsof Instagram,which isalsoused in theanalysis toshowsome

tendencies or insights into the internal situation of the organisation. Yet, it is important to

haveinmindthatboththeannualreportandthesocialmediaprofileareworkedoutbythe

managementofPeople&Performanceitself,andtherefore,thesedatamustbelookedupon

from a critical stance, as they are assumed to be biased by the management and the

employees.Therefore,itmightnotdirectlymirrorthereality.4)Extractfromvirk.dk,whichis

a website offering access to all officially registered data on organisations including VAT-

numbers, addresses, relations and accounts (Virk, n.d.). This will offer basic numbers and

factsaboutPeople&Performance.5)Finally,screenshotsoftheformerPeople&Performance

websitewillbeincluded.Thereasontothis is, thatthewebsitedoesnotexist initsoriginal

form,hence,thescreenshotswillrepresentthewebsiteofPeople&Performanceasitusedto

existpriortothebankruptcyinFebruary2019.

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3.5.3 Datacollection:MercuriUrval

ToensurecomparabilityamongPeople&PerformanceandMercuriUrval,verysimilardata

hasbeencollected.Hence, thedataused foranalysingMercuriUrval isbasedon:1)Article

fromHumanResourceDirector:AMilestoneWorthCelebrating2)Annualreport.TheMercuri

UrvalannualreportrepresentstheDanishdepartmentinHolte,eventhoughtheheadquarter

isinSweden,hence,theDanishannualreportisanexampleofadepartmentwithinMercuri

Urval,which can provide insight into the tendencies of the organisation. 3)Websites, both

MercuriUrval’sownwebsite,butalsointermsof‘Glassdoor’whichisajobandrecruitingsite,

where current and former employees can review the organisation they have been or are

working for (Glassdoor, n.d.). 4) Finally, an extract from virk.dkwill be taken into account

whenanalysingMercuriUrval.

Asmentioned in relation to the data collection of People & Performance, it is

importanttohaveinmindthattheannualreport,websites,andarticlesareinfluencedbythe

organisation’sownperceptionsandbeliefs.However,toensurereliability,externaldatafrom

independentparties,suchasvirk.dk,arealsotakenintoaccount.

Asmentioned, the data regardingMercuri Urval includes reviews on ‘Glassdoor’, a job and

recruitingsite,currentandformeremployeescanreviewtheorganisationtheyhavebeenor

areworking for (Glassdoor, n.d.). The reviewsby current and former employeeswill adda

more nuanced view on the internal factors within Mercuri Urval in relation to what the

organisation itself writes on its website. Due to this, a coding has been conducted, which

means,thatthereviewshavebeenprocessesbylookingforwordsorsentences,whichsays

somethingabouttheinternalfactorsofMercuriUrval.Ihavechosentoinclude71outof83

reviews, the last12reviewsarewritten in languagesother thanEnglish,anddue to lackof

resourcesandtheriskofmisleadingtranslationstheyarenotincluded.Iamawarethatthe71

reviews do not constitute a complete picture of reality of the internal situation ofMercuri

Urval, however, the reviews show tendencies and provide and indication of the general

attitude among current and former employees. Challengesworthmentioning in relation to

usingdatalikethereviewsare,thatitonlyprovidesaminorexamplesofattitudes,hence,itis

notpossibletostateanythinggeneralonthebasishereof.Also,asitappearsfromthereviews

inAppendixA, thereviewshavebeenmadeoveratimeperiodof9years, thefirstonewas

writtenin2010,however,themajorityiswrittenin2018.Finally,itcanbearguedachallenge

33

that thepersons reviewingMercuriUrvalareeitherverypositiveorverynegative towards

theorganisation,whichmeans,thatonlytheextremeattitudesaretakingintoconsideration.

However, as mentioned, the reviews show tendencies and about Mercuri Urval’s internal

situation,hence,thereviewsareconsideredrelevantinregardstothisthesis.

3.6 Dataanalysis

Thispartof the thesiswillprovideanexplanationofhow thedatamentioned in theabove

section is analysed. The ‘data analysis’ section will entail an explanation of the chosen

analyticalframework.

The data elaborated on in section ‘3.5 Data collection’ will be analysed on the basis of an

analytical framework. This framework contains a comparative analysis of People &

PerformanceandMercuriUrvalonthebasisofaSWOT-analysis,aTOWS-matrixandPorter’s

Generic Strategies. These three elements constituting the analytical framework all provide

differentcontributionstothethesis.

The purpose of the SWOT-analysis is to provide a situational snapshot of

respectivelyPeople&PerformanceandMercuriUrval.Here, it is importantmentioningthat

People & Performance is analysed on the basis of data from the period right before the

bankruptcyinFebruary2019.ThedatainrelationtotheSWOT-analysisisanalysedinterms

of the strengths, weaknesses, opportunities and threats of the two organisations. Thiswill

provide the thesis with an insight into the internal and external factors influencing the

strategicsituationoftheorganisations.

After analysing People & Performance and Mercuri Urval’s strengths,

weaknesses, opportunities and threats, aTOWS-matrix is conducted.TheTOWS-matrix is a

natural extensionof the SWOT-analysis, as it intends tooperationalise the results from the

SWOT-analysis by identifying possible strategic initiatives. Knowledge from the literature

review will provide theoretical stances into the SWOT and TOWS to gain a deeper

understandingoftheunderlyingfactors.

FollowingtheSWOT-analysisandtheTOWSanalysis,Porter’sGenericStrategies

will be applied as the final element of the analytical framework. The purpose of Porter’s

Generic Strategies is to identify and discuss, which position People & Performance and

34

MercuriUrvalhaveontheglobalmarket.Hence,thispartoftheanalysisaimstodiscussthe

strategic position on the basis of the literature review and the results of the previous

conductedanalysis.

In relation to thedata of the reviews from ‘Glassdoor’ regardingMercuriUrval, codinghas

been utilised. The process of the coding has included several read throughs to identify

relevant internal factors in the reviews. These read throughs resulted in the following

codings: ‘negative towards the organisational culture’, ‘positive towards the organisational

culture’,and‘marketingandbranding’.Thiscodinghasbeenchosen,asitrepresentsthemost

commoncharacteristicsofthereviewsinrelationtotheinternalfactorsofMercuriUrval.By

takinguseofcodingthereviews,anoverviewofthegeneralattitudetowardsMercuriUrval’s

internalsituationisprovided.Bycodingonthebasisofthereviewsandnotonthebasisofa

chosentheory,thisprocesscanbearguedbeinginductive,duetothefactthatIhavedefined

thecodingsmyselfonthebasisofthedata.Therefore,thedefinitionsofthesecodingsarenot

basedonaspecifictheoreticaldefinitionoforganisationalculture,however,thedefinitionsof

thecodingsleanagainsttheliteratureregardingorganisationalculturementionedinsection

‘2.1.3 Organisational culture’. The code ‘Marketing and branding’ is chosen, as it was a

repeating topic throughout thereviews,as12outof71voicedconcerns towards this topic.

Examplesofthecodingsareprovidedinthebelowtable:

35

Table2:Codingofreviewsfrom‘Glassdoor’

Code: Definition: Example:

Negativetowards

organisationalculture

Mentioningthegeneralwork

environmentinanegative

context.

AppendixA,page7

“Rigid culture and approach

tosolutions”

Positivetowards

organisationalculture

Mentioningthegeneralwork

environmentinapositive

context.

AppendixA,page9

“Freedom towork, creativity

to deliver solutions, great

and fun colleagues, and a

meritocratic + collaborative

culture!”

Lackofmarketingand

branding

Expressingattitudes

regardingalackofmarketing

andbrandingofMercuri

Urval.

AppendixA,page4

“The brandwould gain from

beingmorevisible”

3.7 Delimitations

Inthispartofthethesisthedelimitationswillbeoutlined.Here,abriefoutlineoftheselection

andrejectionsassociatedwiththethesisisprovided.

Porter’s Five Forces theory appears to have advantages, however, in relation to the this

specific thesis it can be argued that the theory fits better within another industry than

recruitment,also,itcanbearguedthatthetheoryfitsbetterwithinanentireindustryandnot

whenanalysingonlytwoorganisations.Thetheoryentailsafocusonexternalfactorssuchas

suppliers,which, in this context,wouldnotbepossible togather informationabout.Due to

this, the analysis will focus on the organisations’ current internal and external situation,

whichwillbeassessedintermsofaSWOT-analysisandaTOWS-matrixtomapoutpossible

strategicoptionsforrecruitmentconsultanciesontheglobalmarket.Itishighlyimportantto

mentionthatPeople&Performancewentthroughbankruptcy,whichmeansthatthecurrent

36

situation,initsoriginalunderstanding,willnotbeabletoanalyse.Duetothis,theanalysiswill

focusontheorganisation’ssituation,asitwasrightbeforethebankruptcy.

EventhoughPeople&Performanceconsistsofseveralbusinessareas,thethesiswillmainly

focusonrecruitment.Thisistobeabletofindacomparableorganisationandhence,beable

toconductafocusedanalysisandgainamorepreciseresult.However,People&Performance

former composition will have an influence on the analysis, as it will focus on the

organisation’ssituationbeforethecrisis.ThisisexpressedthroughoutheSWOT-analysis,as

theinternalfactors’strengths’and‘weaknesses’arebasedontheentireorganisation(allfive

businessareas),becauseittouchesuponorganisationalcultureandeconomicsituation,which

are more general for the organisation. However, when analysing the external factors

‘opportunities’ and ‘threats’ the analysis will be narrowed down to the recruitment area.

Otherwise, if focus is solely on the recruitment area in the internal factors, it will become

misleading.And,theotherwayaround,ifanalysingallfiveareaswithintheexternalfactorsas

well, the analysis will become overwhelming and not relevant in relation to the problem

formulationandtheorganisationbeingcomparedPeople&Performanceto(MercuriUrval).

Being critical to this way of conducting the analysis is the risk of picking out the desired

results, however, due to lack resources and to ensure relevance, this thesis will focus on

recruitmentandwillincludeotherbusinessareaswhenrelevant.

4. AnalysisIn this sectionof the thesis the resultsof theanalysiswillbepresented.Here, theproblem

formulation will be examined on the basis of the above literature review, analytical

frameworkandmethodologicalchoices.Theanalysiswillbeframedasacomparativeanalysis

of People & Performance and Mercuri Urval and will consist of a SWOT-analysis, TOWS-

matrixandfinallyPorter’sGenericStrategieswillbeapplied.Thepurposeofthissetupitto

analyse and discuss the strategic approaches of People & Performance and Mercuri Urval

basedon the internal andexternal factors, in termsof theSWOT-analysis, and thepossible

strategic initiatives in termsof theTOWS-analysis.Finally, thiswill lead toPorter’sGeneric

Strategies,which intends to analyse the strategic position of the organisations and discuss

whether or not this is appropriatewhen seeking a competitive advantage. Throughout the

37

analysis,theexistingliteraturerelevanttotheproblemformulationintroducedinthetheory

sectionwillbenefittheanalysisbyprovidingtheoreticaldepth.

4.1 SWOT-analysisInthispartoftheanalysisaSWOT-analysisofPeople&PerformanceandMercuriUrvalwill

beconducted.First,People&Performancewillbeanalysedonthebasisoftheelementofthe

SWOT-model, which are strengths, weaknesses, opportunities and threats. This will be

followedbyanequalanalysisofMercuriUrval.Finally,acomparisonofthetwoorganisations

will beprovided.Thepurposeof thispart of the analysis is to identify andunderstand the

organisations’competitiveandmanagerialsituationonthebasisofbothinternalandexternal

factors.

4.1.1 People&PerformanceThe following four sub-sectionswill containananalysisofPeople&Performance’s internal

and external factors, which respectively are expressed through strengths, weaknesses,

opportunities and threats. The table below presents an overview of the results conducted

fromtheSWOT-analysisofPeople&Performance.

Table3:SWOT-analysisonPeople&Performance

Strengths

- Cross-businesscustomers

- Organisationalculture

Weaknesses

- Weakeconomy

- Separateoffices

Opportunities

- IRC Global Executive Search

Partners

- Recruitmenttrends

Threats

- Slowdowninthemarket

- Competition

38

4.1.1.1Strengths

Amentioned in thesectionconcerning theanalytical frameworkof the thesis, ‘strengths’ is

oneoftheinternalfactors,whichcanhaveaninfluenceontheorganisation.Hence,thismeans

this‘strengths’isafactor,whichtheorganisationitselfcancontrol(Buskbjerg,2019).

AstrengthwithinPeople&Performanceisthatithadcustomersacrossofthebusinessareas.

This is most likely caused by several factors that play together, however, according to

Johnson, Scholes and Whittington, strategic decisions are likely to be concerned with the

scopeofanorganisation’sactivitiesandarenormallyabouttryingtogainadvantageforthe

organisation(Johnson,2005).Hence,havingseveralregularcustomerscouldbe interpreted

asastrategicattemptongaininganadvantage.Anexample thatPeople&Performancehad

customersacrossthetheirbusinessareasistobeseeninAppendixB.HereitsaysthatPeople

&PerformancecooperatedwiththecompanySpectronicDenmarkA/Sregardingrecruitment

as well as leadership training, and in connection with a major round of layoffs, People &

Performance also supported them with an outplacement process to help the affected

employeesfindingtheirnextjob.Itcanbeinterpreted,thatPeople&Performanceattempted

togainanadvantagebyenlistingcustomersthroughthedifferentactivitiestheycanoffer.In

thatway,bybeingabletoofferservicesacrossthebusinessareasseems,inthissituation,asa

beneficial factorwithin the strategy as it creates customers that staywith the organisation

duetothebroadservicerange.However, itcanbediscussedwhetherornothavingseveral

servicesisanadvantage,asitmightseemthatPeople&Performanceisjusttryingtoplease

severalclientsegments.

When itcomesto internalstrengths,whichcanbecontrolledbytheorganisation itself, it is

alsorelevanttotouchupontheorganisationalcultureoftheorganisation.AccordingtoEdgar

Schein,organisationalculture isdevelopedwhen theentireorganisationhassharedhistory

andexperiences(Schein,1990).WhenhavingalookatPeople&Performance’ssocialmedia

profileonInstagramit isappears fromthepicturesandtextsthattheorganisationseeksto

create an organisational culture. This could for instance be interpreted on the basis of the

picture inAppendixC,whichshows theorganisationat theirannual ‘kick-off’ arrangement.

From the text it appears that the arrangement is both concernedwith socialising and also

with internal strategy-work. This indicates that People & Performance as an organisation

39

seeks to involve all of the employees in the strategy planning and the future of the

organisation.Hence, it could be interpreted that People& Performance intends to create a

strongorganisationalculture,whichbyScheinmeans,thattheorganisationdevelopsaculture

on the basis of their shared experiences and history (Schein, 1990). Yet, what People &

Performance,putsontheirsocialmediaplatform,isnotareflectionofreality.However,the

datacollectionofthisthesisdoesnotentailstatementsfromtheformeremployeesatPeople

&Performance,hence,onlytheavailablematerial isanalysed.Yet, it is importanttohavein

mind that theanalysis isnot the full truth.Another critiqueof analysing theorganisational

cultureisonthebasisofsocialmedia,thatPeople&Performancedecideswhattoputhere.

Due to this, itmust be assumed thatdeeper layers of theorganisational culturedoes exist,

however,theyarenotobservablefromtheoutside.

Tobrieflysumupthissection,theanalysisshowsthatcross-businesscustomers

aswellastheorganisationalculturearesomeofthestrengthswithinPeople&Performance,

basedonthedata.

4.1.1.2Weaknesses

Equal to ’strengths’ the factor of ’weaknesses’ is an internal element and includes

circumstances,whichtheorganisationitselfisabletocontrol(Buskbjerg,2019).

The bankruptcy of People & Performance testifies to an economic weakness, which the

organisation was not able to overcome. In the press release in Horsens Folkeblad ‘Local

Horsensorganisationboughtup–10outof20employeescontinue’3itsaysthatpriortothe

buyup,People&Performancefiledforbankruptcyafterapoorfourthquarterof2018,which

continuedintothefirstquarterof2019(Schütt,2019).Also,accordingtoTorbenNørby,CEO

atPeople&Performance,thebankruptcywasduetonotharmingthemortgagees:“Inorderto

keepanmanymortgageesaspossibleindemnified,weasaresponsibleorganisationdidnot

haveanyoptionotherthanfilingforbankruptcy”(Schütt,2019).4However,thenumbersfrom

thementionedfourthquarterof2018andfirstquarterof2019isnotavailable,henceitisnot

possible to investigate this further.Yet, according toPeople&Performance’s annual report3’LokaltHorsens-firmaopkøbt–10udaf20medarbejderefortsætter’(Schütt,2019)4”Foratholdesåmangekreditorersommuligtskadesløse,såvisomansvarligvirksomhedikkenogenandenmulighedendatindgiveenbegæringomkonkurs” (Schütt, 2019)

40

from2017 it appears that the result for theyearbefore tax showsaprofitofDKK916,171

againsttheresultofyear2016’sresultofDKK1,041,504.Accordingtotheannualreport,the

result of the financial year 2017 was satisfactory despite of a slight decline (People &

PerformanceA/S,2017).Althoughaprofitisapparent,thereportdoesnotindicatewhichof

thebusinessareaswithinPeople&Performanceare thereasons for theprofit.However, in

relation to thepressrelease inHorsensFolkeblad, it couldbe interpreted that thebusiness

areaof leadershipdevelopmentdid constitutea significant role for theorganisationas it is

referredtoasabeingspecialistwithintheareaofleadershipdevelopmentandalso,noneof

the other business areaswithin People & Performance arementioned in the press release

(Schütt, 2019). Hence, it could indicate that the other business areas within People &

Performance, recruitment and outplacement, strategy and business development, sales

developmentandtraining,andbusinessanalysis,havenotbeenperformingassuccessfullyas

the leadership development area and due to this itwill perform individually in the future.

However, it isworthmentioningthattheannualreportiselaboratedbythemanagementof

People&Performance,aswellasthepressreleaseonlyconstitutestheCEO’s,TorbenNørby,

pointofview.Therefore,itisimportanttohaveinmind,thatthissortofdatamightnotreflect

realityaccurately.

Asmentionedinthe‘caseorganisations’partinthesectionregardingmethodology,People&

Performance,asitusedtoexist,hadtwoseparateofficesinDenmark;oneinHorsensandone

inHolte.HavingSchein’stheoryregardingorganisationalcultureinmindthisset-upcouldbe

achallengewhenseekingacommonorganisationalculture.Asmentionedpreviously,Edgar

Schein states organisational culture is developed when the entire organisation has shared

historyandexperiences(Schein,1990),andperhapscreatingacommonhistoryandshared

experiences is difficult to obtainwhen the employees arenotphysically together. It canbe

discussedthattheseparationoftheorganisationandhavingtwoofficesisastrategicdecision,

however, according to Kotter, the beliefs and practices in a strategy may, or may not, be

compatiblewith theorganisation’sculture(Kotter,1992).Onthecontrary, itcanbeargued

that this organisational setupmight create subcultures, which are not providing People &

performancewithanadvantage,aswhenthesebeliefsandpracticesarenotcompatiblewith

theculture, itcanbeachallengetoimplementthestrategysuccessfully.HavingbothSchein

and Kotter in mind, it can be argued that creating shared history and experiences is a

41

challengewhen,atthesametime,People&Performanceconsistsofsubculturesintermsof

separateoffices.Yet,itcanbearguedthatorganisationalcultureiswhatanorganisationalset-

up like People & Performance need and should invest in gaining. In that way, a weakness

within People & Performance is, due to its set-up with separate offices, that it meets

challengesincreatinganorganisationalcultureandinthatwaymightnotgainanadvantage

fortheorganisation.

To sum up this part of the SWOT-analysis, it appears that the economy and

havingseparateofficesaresomeoftheweaknesseswithinPeople&Performance.

4.1.1.3Opportunities

AsPeople&Performanceexistedbeforethebankruptcy,ithadsomeglobalopportunitiesto

takeuseof.Becomingapartof theglobalnetwork ‘IRCGlobalExecutiveSearchPartners’ is

one of these opportunities they actually did get a part of, however, I still assess it as an

opportunityforPeople&performance,asitwasaverynewlystartedinitiative.Itisimportant

to mention, that the website of People & Performance does not state when this initiative

started, hence, it is information I am in possession of due to my knowledge from my

internshipattheorganisation.

‘IRC Global Executive Search Partners’ is a global professional alliance of

executive search organisations established in 1993. The purpose of the network is to

harmonise recruitment processes internationally in order to provide unsurpassed quality

managementinsearchandselectionactivities.Thenetworkentailsmorethan80localoffices

spreadacross45countries(IRCGlobalExecutiveSearchPartners,n.d.).

Aspreviouslymentioned,accordingtoBartlettandGhoshalthethoughtof‘think

global, act local’ leads organisations to becoming more globally competitive and,

simultaneously, more sensitive and responsive to national conditions (Bartlett,

1998).AccordingtoAppendixD,itcanbearguedthatPeople&Performanceisawarethata

membershipof theglobalnetworkwouldbehighlybeneficial: “Thoughourmembershipof

theIRCGlobalExecutiveSearchPartners(IRC)network,wehelpourDanishclientswiththeir

international recruitment needs as well as helping companies and organisations with

recruitmentneeds inDenmark.”(AppendixD).Havingthis inmind,beingamemberof ‘IRC

Global Executive Search Partners’, it is indicated that People & Performance could have

42

benefitted fromhavingpartnersall over theworld.Another statement fromAppendixD is:

“Members of the IRC Global Executive Search Partners Network have an in-depth and

professional knowledgeof localmarkets, insights into trends, andare in close contactwith

relevant candidate groups.” (Appendix D). This indicates that People & Performance was

interestedincreatingknowledge-sharingandsharingcompetencieswiththeglobalpartners

to gain thebest results for respectively theDanish and the global clients. Yet, according to

theory,itcouldalsoindicatethatamembershipatthe‘IRCGlobalExecutiveSearchPartners’

is a strategicdecision to gain a competitive advantage.Asmentioned in the theory section,

Barneyarguesthattheachievementofcompetitiveadvantagebyanorganisationissustained

by the organisation being able to neutralise threats from rival organisations in themarket

(Barney, 2002). In that way, it could be argued, that People & Performance intends to

neutralise competition threatsbyenteringapartnershipwith ‘theglobal rivals’ in termsof

similarrecruitingorganisationsworldwide.Hence,tosumupPeople&Performancebeinga

member of ‘IRC Global Executive Search Partners’, perhaps the organisation realised this

opportunity too late and in that way missed out on a possible opportunity of gaining a

competitiveadvantage.

AnotheropportunityPeople&Performance,asitusedtoexist,couldhavetakenadvantageof

in relation to the recruitment business area is taking use of data for talent acquisition. As

People&Performance used to exist, one of the five business areaswas ‘business analysis’.

According to LinkedIn’s survey regarding global recruiting trend in 2018, utilising data to

answer all sorts of talent questions is an opportunity tomake smarter recruitingdecisions

(LinkedInTalentSolutions,2018).Tofollowthistrenditwouldentailtherecruitersreceiving

support from analysts,whowould be able to implement this data basedway of recruiting.

Hence,asDawnKlinghoffer,GeneralManagerofHRBusinessInsightsatMicrosoft,indicates,

this trend will impact they way HR professionals work: “We are going to see the biggest

changeintheHRprofessionoverall,asanalyticsstarttoreinventthewaywework.Weare

now starting to look forHRprofessionals that havethe capability to understand, interpret,

and leveragedata—and this is a trend that I believewill continue for awhile.” (LinkedIn

Talent Solutions, 2018, pp. 35). Thus, People & Performance did already have business

analysts employed who, probably, could have initiated this trend within the organisation.

AccordingtoJohnson,Scholes&Whittington,strategycanbeseenascreatingopportunities

43

bybuildingonanorganisation’s resourcesandcompetencies,hence, strategicdecisionsare

likely tobeconcernedwith thescopeofanorganisation’sactivitiesandarenormallyabout

tryingtogainadvantagefortheorganisation(Johnson,2005,pp.6-7).Hence,itcanbeargued

thatPeople&Performancedidpossess theresourcesandcompetencies to followthe trend

introduced by the LinkedIn ‘Global Recruiting Trends’ survey, which makes the trend

regardingusingdatawithintalentacquisitionarelevantopportunity.

Summingup the findingsof theopportunitiesofPeople&Performance, it appears that the

IRCGlobalExecutiveSearchPartnersnetwork,aswellasgeneralrecruitmenttrendsaresome

ofthepossibilitiesfortheorganisation.

4.1.1.4Threats

Itmust be assumed, that People& Performance did face some threats,which they did not

react to, based on the fact that they went bankrupt in February this year. Accordingly, in

relationtothebankruptcy,theCEOofPeople&Performance,TorbenNørby,mentionedina

press release to Horsens Folkeblad that: “We experienced a slowdown in the market that

made us enter a liquidity crisis.” (Schütt, 2019)5. This statement regarding a slowdown is

supportedbyPSG,aglobalproviderofoutsourcedrecruitingsupportwithclientsacrossthe

globe(PSG,n.d.).AccordingtoPSG,unemploymentitrecordlowand,simultaneously,45%of

employersworldwidearestrugglingtofillskilledpositions,whichmeans,thatrecruitersface

an increased competition when it comes to recruiting top talent (PSG, 2019). Hence, this

indicates that one of the threats People & Performance was confronted with before the

bankruptcy,wastheincreasingcompetitionwithintherecruitmentindustry.Asmentionedin

the theory section, according toMintzberg, strategyappearsover timeas intentions collide

withandaccommodateachangingreality.Therefore,onemightstartwithaperspectiveand

concludethatitdemandsacertainposition,whichistobeachievedbycarryingoutacarefully

constructedplan (Mintzberg,1994).Having this inmind, it canbeargued that the liquidity

crisis,mentionedbyTorbenNørby, is a sign thatPeople&Performancedidnotmanage to

accommodatethestrategicintentionswiththechangingrealityoftherecruitmentindustryin

termsofcarryingoutacarefullyconstructedplanasthetheorybyMintzbergsuggests.

5”Vioplevedeenopbremsningimarkedet,dergjorde,atvikomienlikviditetskrise” (Schütt, 2019)

44

Another threat, which can be argued having confronted People & Performance, is also in

relationtocompetitors.People&Performancewasaconsultancyconsistingoffivedifferent

business areas: recruitment and outplacement, leadership development, strategy and

business development, sales development and training, and business analysis (People &

Performance A/S, 2017), however, researching other recruitment consultancies it appears

thatseveralofPeople&Performance’scompetitorswithintherecruitmentareasolelyfocus

on recruitment. Having five different business areas, it must be assumed that People &

Performance have been appealing to different clients,which can be interpreted both as an

advantage and a disadvantage. Asmentioned previously in the SWOT-analysis of People &

Performance, thiswayofofferingservicesacrossof thebusinessareasmightbeseenasan

advantageduetothepotentialofkeepingthecustomerswithinthebusiness.However,onthe

otherhanditmightalsobeadisadvantageasitcanbearguedthatPeople&Performanceis

trying to ‘please everyone’, which by Porter will not create a sustainable competitive

advantage(Porter,1985).Hence,itcanbearguedthatwhenbeingasmallerorganisationitis

athreathavingseveralbusinessareasbecausetheorganisationmightnothavetheresources

tobecomespecialisedcomparedtothecompetitors.

To briefly sum up this part of the SWOT-analysis, the threats of People &

Performanceareforinstanceaslowdowninthemarket,aswellasthecompetitionwithinthe

recruitmentindustry.

4.1.2 MercuriUrval

The following four sub-sections will contain an analysis of Mercuri Urval’s internal and

external factors, which are expressed through strengths, weaknesses, opportunities and

threats. The table below presents an overview of the results conducted from the SWOT-

analysisofMercuriUrval.

45

Table4:SWOT-analysisonMercuriUrval

Strengths

- Globalstrategy

- Organisationalculture

Weaknesses

- Lackofmarketingandbranding

- Weakeconomy

Opportunities

- Recruitmenttrend

- Collaboratewithlocalrecruitment

consultancies

Threats

- Competition in the recruitment

industry

- Global political and economic

situation

4.1.2.1Strengths

One of the strengths within Mercuri Urval can be argued to be their strategic take on

providing local expertiseon theglobalmarket. In the followingquote fromMercuriUrval’s

websiteitisstatedthatthestructureandprocessesenablesthepossibilitytocombineglobal

reachwithlocalexpertise:

“Weworkasonecompany-allovertheworld-thisenablesustooperateinaleanandagile

way.OurCentralManagementguideourTeamLeaders,whointurnmanagethecompany.Due

toourstructure,processesandourInternationalBusinessOffice,weareabletoseamlessly

combineglobalreachwithlocalexpertise.Whereverourclientsneedus,wearethere.”

(MercuriUrval,n.d.)

As mentioned in the theory part, Bartlett and Ghoshal raised the issue of whether to

standardise worldwide or to adapt to the environment of each country, which can be

considered an important strategic consideration, due to the fact that competition is

globalising (Bartlett, 1998). It can be argued that Mercuri Urval lives up to this way of

thinking,astheorganisationcanprovidelocalserviceadaptedtoeachcountryastheyclaim,

“Wherever our clients need us, we are there” (Mercuri Urval, n.d.), which is in line with

BartlettandGhoshal’s‘thinkglobal,actlocal’theory.However,eventhoughMercuriUrvalis

abletoadapttothelocalenvironment,duetoseverallocations,itappearsthatthestrategyis

46

stillalignedthroughouttheorganisation,accordingtothefollowingquote,whichisoneofthe

points under ‘Our Values and Code of Conduct’ from the website: “Employment Practices:

MercuriUrval´semployeesworkaccordingtoourvaluesandworkingpractices,describedin

ourCompanyEmployeePolicy.Weworkasonealignedglobalteam”(MercuriUrval,n.d.).It

canbediscussedwhetherornot it ispossible foranorganisation likeMercuriUrval,which

hasofficesin23countries,toworkasonealignedglobalteam.Atleast,itcanbearguedthat

organisational culture is a crucial factor for the employment practices, mentioned in the

abovequote,toperformthestrategysuccessfully.

This leads to Kotter, who states culture within a business context is not the same as the

organisation’sstrategyorstructure.Strategyissimplyawayforhowtogainmovementina

specificdirection(Kotter,1992).However,accordingtoKotter,thebeliefsandpracticesina

strategymay,ormaynot,becompatiblewiththeorganisation’sculture.Thisleadstoanother

strengthwithinMercuriUrval,whichistheorganisationalculture.

On ‘Glassdoor’, a job and recruiting site, current and former employees can

review the organisation they have been or areworking for (Glassdoor, n.d.). Searching for

reviewsofMercuriUrval,83reviewsaremadebycurrentandformeremployeesfromseveral

countries. As mentioned in the methodology section, 12 of these will not be taken into

account,astheyarenotwritteninEnglish.Analysingthe71reviewsonGlassdooritappears,

that35outof71reviewsmentionstheorganisationalcultureofMercuriUrvalassomething

positive,whereasonly6reviewsrefers to theorganisationalculture inanegativeway.The

remaining31reviewsdonotmentionorganisationalcultureor isvagueabout it (Appendix

A).WhenviewingthecommentsintermsofreviewsonGlassdoor,thereviewsindicatethat

the majority of the current or former employees express a positive position on the

organisational culture in Mercuri Urval. However, it is worthmentioning that the persons

reviewingMercuriUrvalrepresentdifferentofficesorcountries,asitappearfrotheappendix

(Appendix A), hence the reviews give an indication of how the employees perceive the

organisationalcultureonaglobalbasisandnotonlyinoneofficeorcountry.

The fact that 31 persons, or nearly half of the reviews, did not mention

organisational culture within Mercuri Urval as either pros or cons could indicate several

things.Itmightindicatethattheemployeesdonotworrytoomuchabouttheorganisational

cultureasmostofthemworkindependently,accordingtothereviews,andinthatwayother

47

thingsmightbemoreimportanttothem,asforinstancebeingabletogrowasanindividual.

Anotherwayto interpret the31previewsnotmentioningorganisationalculture is, that the

employeesarenotawareoftheorganisationalculturebecausetheyarewellintegratedinthe

organisation,hence,theydonotnoticewhatlieswithintheorganisationalculture.According

to Edgar Schein, some organisations might not even have a specific culture, because the

peopleintheorganisationhavenotbeenabletoestablishacommonculture.Theotherway

around,organisations,whichshareahistoryandexperiences,mightbeinterpretedashaving

a strongorganisational culture. In thatway, the contentand the strengthof a culture inan

organisation is individual depending on the common history of the organisation (Schein,

1990).ThismightbeanexplanationonwhynearlyhalfoftheemployeesreviewingMercuri

Urvalhaveapositiveviewontheorganisationalculture.

The reviews also show that 49 out of 71 persons would recommend Mercuri

Urvalasaworkplace.15personswouldnotrecommenditandtheremaining8personshave

notindicatedwhetherornottheywouldrecommendMercuriUrvalasaworkplace(Appendix

A). These numbers show that more than half of the current or former employees would

recommendMercuriUrvalasaworkplace.Though, thereviewsdonot indicate thereasons

whytheemployeeswouldorwouldnotrecommendtheorganisation,anditmustbeassumed,

that there are several reason that come into play and not just the organisational culture.

However, as 35 out of 71 reviews showed positive reactions towards the organisational

culture,thiscouldbeinterpretedasareasonwhytheemployeeswouldrecommendMercuri

Urvalasaworkplace.Yet,accordingtothereviews,someofthecommentsthatarepositive

towardsMercuriUrvalasaworkplaceareemployeeswithhighpositionsintheorganisation,

asforinstanceDirectorsfromdifferentdepartments(AppendixA).Thiscouldbeinterpreted

as them having an overview of the organisation andmust be assumed to be interested in

creatinganorganisationalculturebecause,accordingtoKotter,whenthebeliefsandpractices

of an organisation are not compatiblewith the culture, it can be difficult to implement the

strategysuccessfully(Kotter,1992).However,thisinterestmightalsobemisleading,asthese

employeespossessingahighpositionwithinMercuriUrvalmustbeassumedtohaveashare

in the organisation and therefore alsomightwant it to have positive reviews and create a

positiveatmospherearoundit.

48

AccordingtothefindingsofthispartoftheSWOT-analysis,theglobalstrategyas

well as the organisational culture within Mercuri Urval appears, according to the data

available,tobestrengths.

4.1.2.2Weaknesses

AweaknessofMercuriUrvalcanbearguedtobethevisibilityontheglobalmarket.According

totheirwebsite,MercuriUrvalfocusontheglobalreachandensuringasmoothcollaboration

crossboarder:“MercuriUrval'sglobalreachisbuiltondecadesofexperience,anownership

andorganisationdesignedforinternationalcollaboration,harmonisedprocessesandquality

standards. Our International Business Office ensures a smooth collaborationwith us cross

boarder.” (Mercuri Urval, n.d.). However, analysing the reviews from current and former

employeeson ‘Glasdoor’, it appears that12outof71 reviewsentail comments regardinga

lackofmarketingandbrandingespeciallyoutsideofEuropeandalso,thatthiscrossborder

collaboration could be improved (Appendix A). This indicates that a certain amount of

employees find this being an issue. The following quotes are examples on this: “Cons: The

company isnotverygoodatmarketingandexternalcommunication.”(AppendixA,pp.26).

“World’s7thlargestexecutivesearchfirmcouldbelouderaboutitself.”(AppendixA,pp.32).

“NeedstohavemorefocusonenablingsolutionsforAsianmarket.”(AppendixA,pp.43).“(…)

noexperienceinAsia.ThemanagementinEuropehavenostrategyinAsia.”(AppendixA,pp.

66). When analysing the reviews, a tendency appears that the employees notice the

organisationnotbeingvisibleenough,hence, themarketing intermsofbeingvisibleonthe

globalmarketislacking.Also,accordingtothereviewson‘Glassdoor’,thecurrentandformer

employeesrequestmoreguidelinesinrelationtomarketsoutsideofEuropeandespeciallyin

Asia.ThisleadstoDouglasandWind,whostates:

“Theadoptionofastrategyofuniversalstandardizationappearsnaïveandoversimplistic(...)

suchanapproachasauniversalstrategyinrelationtoallmarketsmaynotbedesirable,and

mayleadtomajorstrategicblunders(...)Thedesignofaneffectiveglobalmarketingstrategy

doesnotnecessarilyentailthemarketingofstandardizedproductsandglobalbrands

worldwide.”(Douglas,1987,s.p.19-20)

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Basedonthis,DouglasandWindstatethenextbigevolutionarystepof“goingglobal”nowhas

tobe“goinglocal”,inresponsetothegrowingdemandforgreaterflexibility,responsiveness

and local sensitivity (Douglas, 1987). Hence, the employees demandingmore focus on the

AsianmarketmighthaveapointwhenhavingDouglasandWind’stheoryinmind,asMercuri

Urval in that way would be able to create solutions and services tailored for the specific

market. However, it could be questioned if it really is necessary to spend recourses on

tailoringsolutionsforeverymarket,whenMercuriUrvalasarecruitmentconsultancyisnot

selling a physical product. In relation to this, one of the reviews on ‘Glassdoor’ included a

comment,whichstated: “Crossborderbusinesscanbemorestreamlined.” (AppendixA,pp.

6).Hence,incontrarytoofferingtailoredsolutions,perhapsinthesituationofMercuriUrval,

amorestandardisedservicewouldbebeneficial.Thepointhereis,thatthetheorybyDouglas

andWindcanbediscusseddependingonwhichindustryisinvolved.

When analysingMercuri Urval’s annual report from 2017, it appears that the organisation

havehada financialdecrease inrelationtoyear2016.Accordingtotheannualreport2017

theresultfrom2017wasDKK2.328.826against2016’sDKK6.304.692(MercuriUrvalA/S,

2017).Aquotefromtheannualreportstates:“Thisyear’sresultinMercuriUrvalA/Swasa

profit of DKK 2.3 million. The result in Mercuri Urval A/S for 2017 is less satisfactory”6

(Mercuri Urval A/S, 2017). So, even though the organisation presents a profit of DKK 2.3

million,theresultis,accordingtothemanagement,notsatisfactory.Thismustbeassumedto

be due to the increase from the result of year 2016, which presented a profit of DKK 6.3

million.ItisnotpossibletostatefromMercuriUrval’sannualreportwhatexactlycausesthis

decrease. However, some numbers within the report can give an indication of what this

decrease causes. For instance, according to the annual report, Mercuri Urval had 113

employeesintheDanishdepartmentand101employeesin2017.Hence,thiscouldbeoneof

thereasonswhythefinancialresultof2017showedadecreaseofprofit,astheorganisation

had12employeeslesstoinfluencetherevenue(MercuriUrvalA/S,2017).Yet,itisimportant

to notice that the annual report is elaborated by themanagement ofMercuri Urval,which6”ÅretsresultatiMercuriUrvalA/Sblevetoverskudpå2,3mio.DKK.ResultatetiMercuriUrval

A/Sfor2017ermindretilfredsstillende.”(Mercuri Urval A/S, 2017)

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might not give an exact picture of reality, as it is assumable that they are interested in

providingapositiveimpressionoftheorganisation.

Another factor that can influence Mercuri Urval’s result is the fact that

unemploymentitrecordlowand,simultaneously,employersworldwidearestrugglingtofill

skilledpositions.Thismeans,thatrecruitersfaceanincreasedcompetitionwhenitcomesto

recruiting top talent, according to PSG (PSG, 2019). Asmentioned in the SWOT-analysis of

People&Performance,theyalsodidstrugglewiththecompetitionintherecruitmentmarket.

Though, itmightbeassumed, thatadifferencebetweenPeople&PerformanceandMercuri

Urvalisthesizeoftheorganisations.Hence,thecompetitionintherecruitmentmarketdoes

nothavethesameconsequencesforMercuriUrvalasitdidforPeople&Performance.

To sumup the findings, the lackofmarketingandbranding, aswell as aweak

economycanbearguedasinternalweaknessesofMercuriUrval.

4.1.2.3Opportunities

An opportunity, which Mercuri Urval could take advantage of is focusing on diversity.

Accordingtothesurvey‘GlobalRecruitingTrends2018’byLinkedIn,diversityisatrendthat

hasevolvedduringtheyears(LinkedInTalentSolutions,2018).Diversitybecamepopularin

the1980s,followedbydiversityandinclusion,asthemovementmatured,andtodaythetrend

has expanded to diversity, inclusion and belonging (LinkedIn Talent Solutions, 2018).

According to the article ‘A Milestone Worth Celebrating’ written by the media Human

ResourcesDirector,RogerHagafors, chairmanof theMercuriUrvalGroupboard, states the

following:

“Indeed,thisdesiretoserveclientsinthemosteffectivewaysiscoretothebusiness.The

company’smottois‘It’sallaboutpeople’–specificallyit’safocusonclientsselectingandthen

developingtherightindividualsforthespecifictasksintheirorganisation.”

(HumanResourceDirector,2017)

Hence,thisquoteindicatesthatMercuriUrvalisalreadyawarethatdiversityandinclusionis

important factors to focus onwhenworkingwith clients globally, in terms of selecting the

right candidates and develop them to fit the specific job and organisation. Now, the

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opportunity for Mercuri Urval consists of them being able to include the third focus

mentionedbytheLinkedInsurvey‘GlobalRecruitingTrends2018’,whichis‘belonging’.

“Ourdatashowsthat themainreasonwhy is thatrecruitersandhiringmanagerscan’t find

enough diverse candidates.” (LinkedIn Talent Solutions, 2018, pp. 9). According to the

LinkedIn survey, 38% of the asked organisations state that the biggest barrier is to find

diverse candidates to interview (LinkedIn Talent Solutions, 2018, pp. 9). This is where

MercuriUrvalcomesintoplay,astheyhaveofficesallovertheglobeandinthatwayisableto

supporttheorganisationsfindingdiversecandidates.

“Thenext-biggestchallengeisretainingthosediversehiresoncethey’rethere.Thisismoreof

a culture issue as employees who don’t feel included and accepted won’t last. Relative to

finding and retaining them, moving diverse candidates through the interview process is

easier.”(LinkedInTalentSolutions,2018,pp.9).AccordingtotheLinkedInsurvey,27%ofthe

askedorganisationsstatethatthebiggestbarrieristoretaindiverseemployees.Thisiswhere

the third focus ‘belonging’ comes into play andwhereMercuri Urvalmightwant to put in

someextraeffort.Thisisduetotheorganisationalreadyfocusingondiversityandinclusion,

so thenextnatural stepwould,according to thesurveybyLinkedIn,be toput focuson the

belongingoftheemployees.Hence,focusingoninclusionandbelongingcouldbeanextension

ofDeCenzo’stheorystatingthataneffectiverecruitingprocessentailsbeingabletoprovidea

significant pool of diverse candidates (DeCenzo, 2010). To sum up, one of the specific

challenges is to followthe trendsappearing in therecruitment industry,which for instance

could be to focus on the clients’ need for hiring diverse employees and not only integrate

them into the organisation but also make the employees feel that they belong to the

organisation.

A more general opportunity for Mercuri Urval is to collaborate with smaller recruitment

consultancies, or even buying up the competitors on the market. Barney argues that the

achievement of competitive advantage by an organisation is sustained by the organisation

being able to neutralise threats from rival organisations in themarket (Barney, 2002). To

Mercuri Urval, neutralising threats could be achieved by either creating collaborationwith

other recruitment consultancies on the globalmarket or it couldbe achievedbybuyingup

smallerorganisationsconstitutinga threat towardsMercuriUrval.Anexampleonasmaller

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recruitmentconsultancy,whichcouldbeinterestingforMercuriUrval,couldforinstancebe

People&Performance.Thismightbenefitbothoftheorganisations,asMercuriUrvalwould

neutralise a potential threat and at the same time gain a bigger market share, mostly in

Denmark,intermsofPeople&Performance’sclients.ForPeople&Performanceitwouldbea

benefit collaborating with Mercuri Urval in terms of them being a part of a globally

establishedbrandwithfivedecadesofexperience.

AccordingtothebelowquotebyRogerHagafors,chairmanoftheMercuriUrvalGroupboard,

the localpresence in theglobalmarketdemands the team leadersand theconsultantbeing

extremely knowledgeable about local conditions. This underlines the relevance of the

opportunity of Mercuri Urval being open to collaboration with local recruitment

consultancies,asitisanopportunitytogainknowledgeaboutthespecificmarkets:

“Ourlocalteamleadersandconsultantsaretheonesdealingdirectlywithourclientsinthese

overseasmarkets,soweneedthemtobeextremelyknowledgeableaboutlocalconditions,but

alsobeawareofwhat’shappeningintermsofglobaltrends.”

(HumanResourceDirector,2017)

AccordingtoDouglasandWind,theviewonglobalisation,whichemphasisesalocalapproach,

ispeggedonthepresenceoflocalvariationsintaste(Douglas,1987).Thislocalapproachin

terms of collaborating with other local recruitment consultancies is an opportunity for

MercuriUrvaldue to themhaving access to a the localmarkets.Hence, thiswouldprovide

them with beneficial knowledge, which, according to the abovementioned quote, is an

importantfactorforMercuriUrvalwhenitcomestotheglobalpresence.

Summingupthispartoftheanalysis,generalrecruitmenttrendsaswellascollaboratingwith

localrecruitmentconsultanciesappearasopportunitiesforMercuriUrval.

4.1.2.4Threats

Oneofthethreats,whichcanbeidentifiedinrelationtoMercuriUrvalisthecompetitionin

therecruitmentindustry.Othersimilarorganisationsmighthavedifferentapproachestothe

market, which constitute a threat to Mercuri Urval. Examples on these might be cheaper

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solutionsorotherrecruitmentmethodsand,duetothis,MercuriUrvalneedstoconstantlybe

awareoftheevolvementandtendencies.Inrelationtothis,thebelowquoteillustratesRoger

Hagafors,chairmanoftheMercuriUrvalGroupboardstancetothis:

"Clientsthemselveshaveincreasedthefocusonhavingtherightpeopleintheirorganisations.

(…)I'dalsosaythatthepeopleworkinginourclientorganisationshavedevelopedtheirskills

andtheirprofessionalismsignificantlyovertheyears.Today'sHRleadersarewelleducated,very

professionalandveryexperienced.(…)We'veseenthatourclientshaveincreasedtheirexpertise

andinsightinmattersrelatedtothatandthusrequiretopqualityfromsuppliersofsuch

services.(…)Wehavecontinuouslydevelopedourserviceofferings,methodsandtoolstomatch

theincreasingneedsofourclients."(HumanResourceDirector,2017)

ItcanbearguedthatHRdepartmentswithinMercuriUrval’sclientorganisationsconstitutea

competition. This is a threat to Mercuri Urval because the organisation now is not only

competingwithsimilarrecruitmentconsultancies,butalsotheirownclientswhoconstantly

gainnewknowledgeandcompetenciesintermofinternalHRdepartments.Therefore,there

isariskthattheconsultancies, likeMercuriUrval,no longerwillbe insuchahighdemand.

Thus,itisathreatMercuriUrvalisobligedtoreacttointermsofbeingattheforefrontofthe

development.Iftheysuccessinkeepingupwiththedevelopmentthecompetition,intermsof

internal HR departments, might evolve into an opportunity to become even better as a

recruitmentconsultancyandkeeptrackwithnewtendencieswithintherecruitmentindustry.

Iamawarethatitmightnotbethatsimpleasputintheabove,nonetheless,itisathreatto

keepinmind.

AnotherissuethatcanbeathreattoMercuriUrval iseconomicfactors.Itmust

beassumedthatbeingpresentin23countries, localeconomicfactorsplayasignificantrole

forMercuriUrval.Factorssuchasrecessionsandlegislationinthecountriesareallexternal

factors,whichMercuriUrvalisnotabletocontrolorinfluence.Thisentails,thateventhough

MercuriUrvalhasagloballyknownbrand,externaluncontrollablefactorshaveaninfluence

onhowsuccessfultheorganisationis.Therefore, itmustbeassumed,thattoprepareforan

eventual recession it is essential to have a robust economy or being able to anticipate the

tendenciesinrelationtothedemandsonthemarket.Inthatway,botheconomicanpolitical

factors,suchaslegislationinthecountries,allhaveaninfluenceonMercuriUrvalasaglobal

54

organisation, which can not be controlled. Hence, being a large global organisation is not

always an advantage, as more restrictions and reservations are needed to be taken into

accountwhenbeingpresentinthesecountries.However,eventhoughthiscanbearguedas

beingathreattoMercuriUrval,itappearsontheirwebsite,thattheyarepreparedforsucha

threat: “Our International Business Office ensures a smooth collaboration with us cross

boarder.”(MercuriUrval,n.d.).Nevertheless,MercuriUrvalbeingpreparedintermsofhaving

anInternationalBusinessOffice,thechallengeconsistsinbeingup-to-datewithallofthelocal

conditionsinthe23countries.

TosumupthefourthelementwithintheSWOT-analysis,thecompetitioninthe

recruitment industry, as well as the global political and economic situation can be argued

beingthreatstoMercuriUrval.

4.1.3 ComparisonofPeople&PerformanceandMercuriUrvalAsmentioned in the introduction the section4.1, thepurposeof theSWOT-analysiswas to

identify and understand the organisations’ competitive and management situation on the

basisofbothinternalandexternalfactors.Nevertheless, itmustbenotedthatseveralother

strengths, weaknesses, opportunities, and threats, than this analysis shed light on, are

connectedwithPeople&PerformanceandMercuriUrval,however,onlyafewarementioned

in the analysis. This is due to create congruence between the theory, data, and problem

formulationofthethesis.

With that said, to briefly sum up the above SWOT-analysis, the available data

analysedshows,thatPeople&PerformanceandMercuriUrvalsharesimilarities,yettheyare

alsoverydifferentaccordingtotable3and4.TheresultsoftheSWOT-analysisindicates,that

the organisations have been in the recruitment industry under more or less the same

circumstances, hence, it must be assumed, that there are several way of approaching a

strategyontheglobalmarket.Yet,havinginmindthatPeople&Performancewentbankrupt

inFebruary2019,andthereforedonolongerexist,itmustbeassumedthattheorganisation

failedtogainacompetitiveadvantage.However, thereasonwhyPeople&Performancedid

not succeed on the global market and Mercuri Urval is still on the global market, will be

furtherexaminedwithinthefollowinganalyses.

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4.2 TOWS-matrixIn thispart of the analysis the results of theTOWS-matrixwill bepresented.Thematrix is

conductedonthebasisofthefindingsfromtheSWOT-analysisintheprevioussection.First,

theTOWS-matrixisconductedonthebasisoftheresultsfromPeople&Performance’sSWOT-

analysis and afterwards a TOWS-matrix on the basis of the results from Mercuri Urval’s

SWOT-analysis ispresented.Finally,acomparisonof theorganisationwillbeprovided.The

purpose of the TOWS-matrix is to operationalise the results from the SWOT-analysis and

identifythestrategicdevelopmentpossibilitiesoftheorganisations.

4.2.1 People&Performance

The following sub-section will contain an analysis of People & Performance’s possible

strategicinitiativesbasedontheSWOT-analysis.Again,itisworthmentioningthatPeople&

Performanceisanalysedonthebasisofhowitusedtoexistbeforethebankruptcy.Thetable

belowpresentsanoverviewoftheresultsoftheTOWS-analysisofPeople&Performance.

Table5:TOWS-matrixonPeople&Performance

Internalconditions

Strengths(S)1.Cross-businesscustomers2.Organisationalculture

Weaknesses(W)1.Weakeconomy2.Separateoffices

Opportunities(O)1.IRCGlobalExecutiveSearchNetwork2.Recruitmenttrends

(SO)Strategicinitiative1.Exploitaccesstonewmarkets

(WO)Strategicinitiative1.Exploitglobalnetwork2.Exploitnewknowledgegainedfromtrends

Threats(T)1.Slowdowninthemarket2.Competition

(ST)Strategicinitiative1.Exploitcollaborationbetweenthebusinessareas2.Organisationalcultureascompetitiveadvantage

(WT)Strategicinitiative1.Avoidcompetition

(Systime A/S, n.d.)

4.2.1.1 (SO)Strategicinitiative

TheSOstrategicinitiativesarederivedonthebasisoftheinternalfactor‘strengths’andthe

externalfactor‘opportunities’fromtheSWOT-analysis.Oneofthestrategicinitiatives,which

Externalconditions

56

People&Performance could takeuseof, is to exploit the fact that theyhaveaccess tonew

marketsandcountriesduetotheirmembershipofthe‘IRCGlobalExecutiveSearchNetwork’.

AsmentionedintheSWOT-analysis,People&Performancealreadybecameamemberofthe

global network just before the bankruptcy, and due to this, it is difficult to assess how

beneficial themembershipwasfortheorganisation.Yet, tomakeuseofthestrength ‘cross-

business customers’ and the several business areas, and opportunity ‘IRC Global Executive

SearchNetwork’aninitiativewouldbetoinvestigatethemarketsinwhichtheglobalpartners

arelocatedintermsofenlistingnewclients.

4.2.1.2 (WO)Strategicinitiative

TheWOstrategic initiativesarederivedonthebasisofthe internal factor ‘weaknesses’and

the external factor ‘opportunities’ from the SWOT-analysis. An initiativesworth taking into

accountistonotonlyexploittheglobalnetwork(IRC),butalsothenewknowledge,whichcan

be gained through recent recruitment trends. In this way, economic weaknesses can be

minimisedaswellasanopportunityisbeingutilised.So,aWOstrategicinitiativeforPeople&

Performance is to combineweaknesses and opportunities and gain new knowledge,which

theycanusewithnewclients.

4.2.1.3 (ST)Strategicinitiative

TheSTstrategicinitiativesarederivedonthebasisoftheinternalfactor ‘strengths’andthe

externalfactor‘threats’fromtheSWOT-analysis.Oneofthestrategicinitiatives,whichPeople

&Performancecouldtakeuseof,whenmixingstrengthsandthreatsfromtheSWOT-analysis,

istotakeadvantageoftheseveralbusinessareasoftheorganisationandminimisethethreat

of a slowdown in the recruitment market by collaborating across business areas. Another

initiative could be to exploit the organisational culture within the organisation, which as

mentioned in theSWOT-analysis canbeargued tobe strong.Having inmind thatPeople&

Performance is a small and new organisation in relation to Mercuri Urval, it could be an

advantage tomakeuseofwhatworks, hence, by sustaining a strongorganisational culture

mightbeanadvantagewhencompetingwithlargeorganisations.

4.2.1.4 (WT)Strategicinitiative

TheWTstrategic initiativesarederivedonthebasisof the internal factor ‘weaknesses’and

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the external factor ‘threats’ from the SWOT-analysis. An initiative within weaknesses and

threatscouldbetoavoidcompetition.Thismightbeeasiersaidthandone,however,havinga

decreasingeconomyandat the same timeexperiencing competition could turnoutbeinga

negative combination. Hence, by ‘avoid competition’ is meant, to differentiate the services

fromthecompetitorsonthemarket.Thiscouldbedoneinseveralways,however,byPorterit

meanseithercostleadership,productdifferentiationandfocus(Porter,1985).Theaimofthe

cost leadership anddifferentiation strategies is to seek a competitive advantage in a broad

range, while the aim of the focus strategies (cost focus and differentiation focus) seek a

competitiveadvantagewithinanarrowsegmentandwillmost likelycreateaniche(Porter,

1985).

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4.2.2 MercuriUrval

The following sub-section will contain an analysis of Mercuri Urval’s possible strategic

initiativesbasedontheSWOT-analysis.Thetablebelowpresentsanoverviewoftheresultsof

theTOWS-analysisofMercuriUrval.

Table6:TOWS-matrixonMercuriUrval

Internalconditions

Strengths(S)1.Globalstrategy2.Organisationalculture

Weaknesses(W)1.Lackofmarketingandbranding2.Weakeconomy

Opportunities(O)1.Recruitmenttrends2.Collaboratewithlocalrecruitmentconsultancies

(SO)Strategicinitiative1.Exploittheglobalstrategybylookingintocollaborationpossibilities.2.Exploithavingagoodorganisationalculturetobemoreattractivetootherorganisations.

(WO)Strategicinitiative1.Exploittheneedtoincreasethebrandingbycollaboration.2.Exploittheknowledgeofrecruitmenttrendsandcollaborationstogainbettereconomy.

Threats(T)1.Competitionintherecruitmentindustry2.Globalpoliticalandeconomicsituation

(ST)Strategicinitiative1.Exploitglobalstrategy2.Exploitknowledgeaboutcountries

(WT)Strategicinitiative1.Focusonmarketingandbranding

5. (Systime A/S, n.d.)

4.2.2.1 (SO)Strategicinitiative

TheSOstrategicinitiativesarederivedonthebasisoftheinternalfactor‘strengths’andthe

external factor ‘opportunities’ from the SWOT-analysis. A strategic initiative based on this

could be to exploit the global strategy by looking into collaboration possibilities. As

mentionedintheSWOT-analysisofMercuriUrval,theglobalstrategyappearsbeingstrength

Externalconditions

59

aswellascollaboratingwithotherlocalrecruitmentconsultanciesisanopportunity.Hence,

to operationalize this, an initiative hereof is to investigate the possibilities of an eventual

collaboration.Also,incontinuationofthis,anotherinitiativecouldbetoexploithavingagood

organisationalculturetobemoreattractivetootherorganisations,asitmustbeassumedthat

itismoreattractivetocollaboratewithMercuriUrval,iftheinternalfactorsareattractiveto

aneventualbusinesspartner.

4.2.2.2 (WO)Strategicinitiative

TheWOstrategic initiativesarederivedonthebasisofthe internal factor ‘weaknesses’and

the external factor ‘opportunities’ from the SWOT-analysis. A strategic initiative based on

weaknesses and opportunities could be to exploit the need to increase the branding by

collaboration. According to the results of the SWOT-analysis, a weakness is a lack of

marketingandbrandingandanopportunityistocollaboratewithothersinthelocalmarkets.

Hence,beingabletoincreasethemarketingandespeciallybrandingofMercuriUrvalwould

be to gainmore knowledge of the localmarkets in terms of collaboration and in thisway

increase the visibility globally. This initiative also leads to another initiative, which is to

exploit the knowledge of recruitment trends and collaborations to gain a better economy.

Hence, taken advantage of being aware of trends as well as collaborating locally, is an

opportunitytogainabettereconomy.

4.2.2.3 (ST)Strategicinitiative

TheSTstrategicinitiativesarederivedonthebasisoftheinternalfactor ‘strengths’andthe

external factor ‘threats’ from the SWOT-analysis. An initiative combining strengths and

threats in regards to Mercuri Urval is to exploit the global strategy and at the same time

exploit the knowledge about the 23 countries they are present in. Being able to do so, the

threatsconcerningcompetitionintherecruitmentindustryandtheuncertaintyoftheglobal

politicaladeconomicalsituationmightbeavoided,asMercuriUrvalmustbeassumedbeing

well prepared.Hence, knowledge about the23 countries cannotbeunderestimated, as this

canbeakeytoanticipatethetendenciesinrelationtothedemandsonthemarket.

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4.2.2.4 (WT)Strategicinitiative

TheWTstrategic initiativesarederivedonthebasisof the internal factor ‘weaknesses’and

theexternalfactor‘threats’fromtheSWOT-analysis.Combiningweaknessandthreatsonthe

basis of the SWOT-analysis ofMercuri Urval, it can be argued that increasing the focus on

marketing and branding is a relevant strategic initiative. This is mainly due to the threat

regardingthecompetitionintherecruitmentindustry,hence,itmustbeassumedthatbeing

more visible on the global market would be an advantage in terms of increasing the

knowledgeofMercuriUrval.Incontinuation,thisinitiativemightincreasetheweakeconomy,

whichisaweaknessofMercuriUrval.

4.2.3 ComparisonofPeople&PerformanceandMercuriUrval

Asmentionedinthebriefintroductionforsection4.2,thepurposeoftheTOWS-matrixisto

identify the strategic development possibilities, in terms of initiatives, of People &

Performance andMercuri Urval. I am aware that these strategic development possibilities

could be extendedwith further strategic initiatives, however, the ones provided create an

indication of the strategic options. Yet, the ones identified in this thesis are based on the

findingsoftheSWOT-analysis,whichfocusonlimitedinternalandexternalfactorsofPeople

&PerformanceandMercuriUrval.

TobrieflysumuptheaboveTOWS-analysis,severalinitiativescanbetakeninto

considerationonthebasisoftheresultsfromtheSWOT-analysis.Itcanbearguedthatsome

oftheinitiativesmentionedintable5and6arealreadybeingusedbytheorganisations.This

indicates that the organisations are aware of their opportunities, hence, when using the

SWOT-analysisandTOWS-matrix,whichareverysimpletools,thereisapossibilitythatthe

concerned organisations already know about these results, as tools like these are very

accessibleandeasytounderstand.Oneofthechallenges,whichappearedwhenutilisingthe

TOWS-matrix, is that it can be difficult generating initiatives if the results from the SWOT-

analysis are too specific. Hence, to gain more applicable results, in terms of strategic

initiatives,itwouldbebeneficialtobroadenuptheSWOT-analysis.

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Now, the results fromboth the SWOT-analysis and the TOWS-matrix have been presented.

These results indicates some strategic choicesmadebyPeople&PerformanceandMercuri

Urval,hencePorter’sGenericStrategieswillbeappliedinthefollowingsectiontoanalyseand

discussthesestrategicchoices.

4.3 Porter’sGenericStrategies

In this part of the analysis Porter’s Generic Strategies will be applied. First, the generic

strategieswillbeappliedtoPeople&Performanceandafterwardsthegenericstrategieswill

be applied to Mercuri Urval. The purpose of Porter’s Generic Strategies is to identify and

discuss,whichpositionPeople&PerformanceandMercuriUrvalhaveontheglobalmarket.

Therefore, this part of the analysis intends to analyse the strategic position of the

organisations and discuss whether or not this is appropriate when seeking a competitive

advantage.

On the basis of the results from the SWOT-analysis and the TOWS-matrix Porter’s Generic

Strategiesseekstoidentify:

1. Whichsourceofcompetitiveadvantagefitswiththeorganisations

2. Whichscopefitswiththeorganisations

ThebelowmodelillustratestheresultsofPorter’sGenericStrategies.People&Performance’s

positionismarkedwithan’X’andMercuriUrval’spositionismarkedwithan’O’.

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Model4:Porter’sGenericStrategies–Results

(MindTools, n.d.)

4.3.2 People&Performance

Based on the SWOT-analysis and the TOWS-matrix it can be argued that People &

Performance can be placed in the source of competitive advantage called ‘cost leadership’

within Porter’s Generic Strategiesmatrix. According to Porter, being in the cost leadership

meansthattheorganisationseekstobethelow-costperformerinitsindustry(Porter,1985).

The following quote is an example on People & Performance seeking to be a low-cost

performer: “As part of the tailor-made projects,we have invested in and developed online

learningmoduleswhich,incombinationwithface-to-facetraining,enablecustomerstolearn

moreeffectivelyatalowercostlevel."7(People&PerformanceA/S,2017,pp.6).Thisquote

fromtheannualreport2017indicatesthatPeople&Performanceasanorganisationseeksto

gain a competitive advantage by being able to offer low-cost services to their customers.

However, the fact thatPeople&Performance isalsoable to tailorsolutions for

7“Somendelafdeskræddersyedeprojektererderinvesteretiogudvikletonlinelæringsmoduler,somi

kombinationmedfacetofacetræninggørdetmuligtforkunderneatfåmereeffektivindlæringtilet

lavereomkostningsniveau.”(People & Performance A/S, 2017, pp. 6)

63

the customers can also be argued to indicate the organisation seeking the source of

competitive advantage called ‘differentiation’, which by Porter is defined as the strategy

where an organisation seeks to differentiate itself from the others on the market (Porter,

1985).ThescopeofthestrategictargetofPeople&Performancecanbearguedtobebroad,

duetotheorganisationchoosingtohavefivedifferentbusinessareasandinthatwaybeing

abletoattractdifferenttargetgroups.Yet,intermsofPeople&Performance’sbankruptcyin

February 2019, it must be assumed that the organisation did not succeed creating and

sustainingacompetitiveadvantage.AccordingtothetheoryofPorter’sGenericStrategiesthis

implies,thatPeople&Performancecouldbeidentifiedasbeing‘stuckinthemiddle’,whichby

Porter isusuallya signof theorganisationnotbeingable tomakeadecisionabouthow to

competeandwillinmostsituationsbeoutcompetedbyotherorganisations,whichdidmakea

decisiononwhichstrategytoutilise(Porter,1985).Hence,asillustratedinthematrixinthe

above,People&Performanceislocatedintheupper-middlearea.

4.3.3 MercuriUrval

BasedontheSWOT-analysisandtheTOWS-matrix,itcanbedifficulttolocateMercuriUrval

withinthesourceofcompetitiveadvantageofPorter’sGenerisStrategiesmatrix.Thereason

tothisis,thatnoneofthedataretrievedsaysanythingthatdiretlyindicateswhetherMercuri

Urval should be located in ‘cost leadership’ or ‘differentiation’. However, the results of the

SWOT-analysis and the TOWS-matrix could indicate that Mercuri Urval does not belong

withinthesourceofcompetitiveadvantage‘differentiation’,astheorganisation,accordingto

the analysis, do not focus on marketing and branding. It can be argued that focusing on

marketingandbrandingmightbeanoticeablemethodofdifferentiating theorganisation in

anindustrywheretheservicesmustbeassumedtobemoreorlesssimilar.Furthermore, it

can be argued that the scope of the strategic target of Mercuri Urval is broad, as the

organisationispresentin23countriesandthereforeitmustbeassumedthatMercuriUrval

needstoappealtoseveralculturesandbusinesses.

ItcanbearguedthatPorter’sGenericStrategiesprovidesamoreorlessblackand

whiteapproach,whichsortofforcestheresearchertomaketheresultsfit intotheboxesof

thematrixanddoesnotmakeroomfornuanceswithindifferentindustries.Therefore,lacking

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a better option,MercuriUrval is located in the upper-middle of Porter’sGeneric Strategies

matrix,asillustratedintheabovemodel.

4.3.3. ComparisonofPeople&PerformanceandMercuriUrval

Asmentioned in the introduction for section 4.3, the purpose of utilising Porter’s Generic

Strategies was to identify and discuss, which of the strategies People & Performance and

MercuriUrval haveutilised. It isworthmentioning that the outcomeof this analysis is the

resultof the identified internalandexternal factors intheSWOT-analysisandthe identified

strategic development possibilities in the TOWS-analysis. Hence, having a different

perspective and approach to the two previous analyses the outcome of Porter’s Generic

Strategieswouldalsodiffer.

As it appears from Porter’s Generic Strategies matrix in the above, People &

Performance and Mercuri Urval are located in very similar positions in the market. This

means, that, according to the findings of the SWOT-analysis and theTOWS-matrix, the two

organisations are located in-between the source of competitive advantage ‘cost leadership’

and‘differentiation’andalso,theyarebothlocatedinthescopeofthestrategictargetcalled

‘broad’.Hence,accordingtotheresultsofPorter’sGenericStrategies,People&Performance

and Mercuri Urval should be in possession of the same possibilities in terms of gaining a

sustainable competitive advantage. However, the questions is then, why People &

Performancewent thoughbankruptcy andMercuriUrval ismaintaining a solidpositionon

theglobalmarket?Withtheknowledgeofbothorganisationsaswellastheresultsfromofthe

analysis,itmustbeassumedthatfactorsothersthan‘scopeofstrategictarget’and‘sourceof

competitiveadvantage’influencethesuccessoftheorganisations.

Itmust be assumed that there are several reasonswhyPeople& Performance

havenotbeenabletoachievethesamesuccessasMercuriUrval.However,onthebasisofthe

topic of this thesis as well as the theoretical stances, some qualified estimations can be

provided. As mentioned, before the bankruptcy in February 2019, People & Performance

consistedoffivedifferentbusinessareas.AccordingtoPorter,“Beingallthingtoallpeople”is

a recipe for strategic weakness or below average performance, which indicates that the

organisation has no competitive advantage (Porter, 1985, pp. 12). Hence, taking into

consideration that People & Performance focused on several busines areas, a reason why

65

People&PerformancehavenotbeenabletoachievethesamesuccessasMercuriUrvalcanbe

interpreted as them not being able to maintain focus on one specific area, but instead

intendedtopleaseasmanytargetgroupsaspossible.Therefore,itcanbeseenasamistakein

termsofgainingacompetitiveadvantage.

Porter’sGenericStrategies is concernedwithgainingacompetitiveadvantagebasedon the

strategicpositiononthemarket.However,thefindingsoftheanalysisofthisthesisshow,that

perhapsmore factors than ‘scope of strategic target’ and ‘source of competitive advantage’

play a rolewhengaininga competitive advantage,whichwill bediscussed in the following

section.Also,Porterdoesnotemphasisehowtoconductananalysisproperlyonthebasisof

the Generic Strategy, hence, the theory is lacking a factor of operationalisation in terms of

obtaining a satisfactory yield. Therefore, it must be up to the individual researcher to

interpretPorter’sGenericStrategies intermofutilising itasatheoreticalstance,whichcan

benefitthespecificproblemformulationexamined.

5. Discussion

Inthispartofthethesisadiscussionwillbeconducted.Thissectionwillincludeadiscussion

ofthechosenanalyticalframeworkandtheimplicationshereof.Furthermore,thediscussion

willtouchupontheimplicationsofthefindinginrelationtotherelevanttheoryandliterature

ofthisthesis,aswellaspracticalimplicationsofthethesisinrelationtosimilarorganisations.

TheanalyticalframeworkforthisthesisconsistedoftheSWOT-analysis,theTOWSmatrixand

Porter’sGenericStrategies.Thiscompositionappearedhavingbothprosandconsintermsof

examiningtheproblemformulation,whichwillbediscussedinthispartofthediscussion.

ThefirststepinwithintheanalyticalframeworkwastoconductaSWOT-analysis

onPeople&PerformanceandMercuriUrval.Thisanalysiscreatesasimplisticoverviewofthe

dataandprovidesasolid foundationregardingPeople&PerformanceandMercuriUrval in

termsofanalysingtheorganisation’sstrengths,weaknesses,opportunitiesandthreats.Inthat

way,theSWOT-analysisprovidedthisthesiswithanoverallpictureofthecaseorganisations’

situation. However, simultaneously, the SWOT-analysis did tend to create a somewhat

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superficialviewontheorganisations,as itoversimplifiesthecomponentsof theanalysis. In

continuationofthis,itcanbeachallengetobeawareofwheretobeginandwheretoenddue

to the components, in terms of strengths, weaknesses, opportunities and threats are very

fluffy.Therefore, itcanbeachallengetodeterminewhatisrelevantandwhatisnot.Dueto

this, I believe that the SWOT-model ismostly usefulwhen used as a foundation andwhen

supportedbyothertheories.

TheTOWS-matrixhasmoreorlessthesameprosandconsastheSWOT-analysis

as it is a natural extensionhereof.However, in relation to this thesis theTOWS-matrix did

contributebybeingabletoconverttheresultsfromtheSWOT-analysisintospecificinitiatives

andgainingandunderstandingofwhichinitiativesarepossibletotakeactiononinrelationto

gaina competitiveadvantage.Yet, the simplicityofboth theSWOT-analysisand theTOWS-

matrixresultintheseinitiativesalsobeingsimple,whichmeansitcanbeachallengestocome

upwithinitiatives,whichtheorganisationshaven’talreadydevelopeditself.Thismeans,that

thechallengewiththeTOWS-matrix is, that itgenerates toogeneralsolutions,andalso, the

person conducting the analysis needs to have initiatives in mind already when doing the

SWOT-analysis,toavoidtheinitiativesnotbecomingtoovague.

OneofthethingsPorter’sGenericStrategieshasbenefittedthisthesiswithisto

identify the possible position of People & Performance and Mercuri Urval on the global

market on the basis of the results from the SWOT-analysis and TOWS-matrix. In thatway,

Porter’s Generic Strategies have been a benefit in terms of converting themore superficial

results fromtheSWOT-analysisandTOWS-matrix intoa tangibleandspecificoutcome.The

interplay between the SWOT-analysis and TOWS-matrix and Porter’s Generic Strategies is

necessary, asnoneof themwouldprovidebeneficial results, as theyall support eachother

and provide different contributions to the thesis. Nevertheless, in relation to this thesis,

Porter’s Generic Strategies is not a natural extension of the SWOT-analysis and theTOWS-

matrix,henceitcanbeachallengetonaturallyputthemtogetherandgainthedesiredresult.

Also, Porter’s Generic Strategies does not say a lot about how to operationalisation of the

theoryshouldbeorhowtoconductananalysisbasedonthistheoryandalsothetermswithin

thematrix of the theory such as the ‘scope of the target group’ and ‘source of competitive

advantage’arenotelaboratedonsufficiently,whichconstituteachallengeintermsofgaining

anoptimalresult.Furthermore, the theorydoesnot include thecompetitorson themarket,

whichmust be assumed to have a significant importance in relation towhether or not an

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organisation is able to gain a competitive advantage. Hence, it is ofmy belief that Porter’s

GenericStrategiescanbeconductedinseveralways,andinrelationtothisthesis,theSWOT-

analysisandtheTOWS-matrixareprovidingasolidanalyticalfoundationforthis.Also,tosum

up the entire analytical framework, it is of my belief that they all support each other and

therefore,despiteoftheirindividualdeficiencies,composeabeneficialanalyticalframework

forthisthesis.

As mentioned in the methodology part ‘3.1.1 Critical realism’ the aim of

employingcriticalrealismtothisthesiswasnotonlytounderstandwhichstrategyPeople&

PerformanceandMercuriUrvalhaveemployedtotheorganisation,butalsotoinvestigatethe

underlyingmechanisms,whichcanbedecisive forwhether theorganisationsaresuccessful

or not. It is ofmy belief, that by applying the SWOT-analysis, the TOWS-matrix aswell as

Porter’s Generic Strategies and keeping critical realism inmind throughout the thesis, this

combination of theory andmethods has been beneficial to the examination of the problem

formulation.

Having examined the problem formulation, a couple of topics have appeared being worth

discussing,astheyprovidetheexistingliteraturewithnewinsightsbasedonthefindingsof

theanalysis.Thesetopicsareconcernedwithorganisationalcultureinrelationtothestrategy

ofanorganisationandalsocompetitiveadvantagewillbetouchupon.Thesecontributionsto

theexistingliteraturewillbediscussedinthispartofthediscussion.

Within the SWOT-analysis it appeared that the organisational culture of both

People & Performance and Mercuri Urval can be argued having a strong organisational

culture. However, it can be discussed to what extend the organisational culture should be

outspokenamongtheemployeestogainabenefitfromit.Forinstance,inrelationtoPeople&

Performance’sInstagrampage,severalpostingsemphasisetheorganisationalculture.Itmust

beassumedthatthisactionintendstocreateabenefitfortheorganisationintermsofagood

work environment for the employees.However, according to Schein, organisational culture

ariseswhen theemployeessharehistoryandexperiences (Schein,1990)– so,where is the

limitinrelationtowhenanorganisationalcultureisbeingforcedthroughintermsofdifferent

arrangements? If the employees areneeded tobe remindedof theorganisational culture it

canbediscussedwhetherornotthecultureisdevelopingnaturallybut,othertheotherhand,

suddenlybecomesapartofastrategicchoice.Hence,itcanbediscussedwhetherornotitis

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possibletocreateanorganisationalculturetop-down(frommanagementtoemployees),orif

itshouldarisenaturallybottom-up(fromemployeestotheentireorganisation).

The results from Porter’s Generic Strategies are also worth discussing in relation to the

existingliterature.Asmentionedinsection‘2.1.2Competitiveadvantage’,Barneystatesthat

to attain a competitive advantage it is necessary for the organisation to implement a value

creating strategy that isnot simultaneouslybeing implementedbyany currentorpotential

competitoronthemarket(Barney,2002).However,accordingtoPorter’sgenericStrategies,

thereareonly threestrategies tochoose from: ‘cost leadership’, ‘differentiation’and ‘focus’,

and,accordingtotheanalysis,People&PerformanceandMercuriUrvalaretakinguseofthe

same generic strategy. Hence, it can be discussed that Porter’s Generic Strategies is too

simplistic. If, as according to Barney, the organisations should implement a strategy not

simultaneouslyusedbyotherinthemarket,thereisaneedformorecompositionpossibilities

withinPorter’sGenericStrategies.

Anotherpoint,whichcan theyprovide theexisting literaturewithnew insights isbasedon

theliteraturebyNewbertwhostatesthat,ifanorganisationhasidentifiedtheircompetitive

advantage, they will use it as leverage to perform in the future, so the attainment of

competitiveadvantageispredictingstrongorganisationperformance(Newbert,2008).From

theresultsofPorter’sGenericStrategies itappears thatPeople&PerformanceandMercuri

Urval are very close to each other in terms of strategic choices, however, they have very

differentsuccess,asPeople&PerformancewentbankruptandMercuriUrvalisstillsurviving

therecruitmentmarket.Hence,thisindicatesthatthereismoretoastrategythanmakingthe

choiceofwhichscopeoftargetandsourceofcompetitiveadvantagetochoose.Therefore,it

can be discussed that too little focus is on the underlying factors of gaining a competitive

advantagewithintheexistingliterature.Withthatsaid,oneofthemaindifferencesbetween

People&PerformanceandMercuriUrval,whichisthatMercuriUrvalislocallypresentinthe

globalmarketwhilePeople&Performancewasonlylocallypresentintermsofbeingapartof

the ‘IRCGlobalExecutiveSearchPartners’network,whichtheygotamemberof inthefinal

periodbeforethebankruptcyinFebruary2019.Hence,accordingtotheliteraturebyBartlett

andGhoshal,who emphasises the importance of being locally present in the globalmarket

(Bartlett,1998),itcanbediscussedthatthismembershipwasanopportunityandastrategic

69

approachPeople&Performanceshouldhavelookedintomuchearlier,andhence,missedout

onintermsofgainingacompetitiveadvantage.

Theliteratureregardingthetopicsofthisthesis,suchasorganisationalculture,

globalisation,competitiveadvantageandstrategyisverygeneral.Therefore,itisofmybelief

thattheresearchdesignofthisthesis,intermsofacomparativecasestudy,providesamore

profound insight into these topics, as it results in some specific tendencies, which can be

relatedtotheexistingliterature.

Thepurposeofthecombinationofcriticalrealismandusingmixedmethodsis,asmentioned

in section ‘3.1.1Critical realism’, toobtainaholistic insight intoPeople&Performanceand

Mercuri Urval. By doing so, it has been possible to look into several areas in terms of the

SWOT-analysisandtheTOWS-matrix.However,bygaininganinsightintoseveralareas,this

combinationofcriticalrealismandmixedmethodsalsoturnedoutbeingachallengeinterms

ofobtainingadeepunderstandingofthedata.Hence,toattainanevenmoreoptimalresultof

the combinationof critical realismandmixedmethods, itwouldbe abenefit tohavemore

resourcesintermsoftimeanddataavailable.

Basedonthefindingsofthisthesis,thispartofthediscussionaimtodiscusstheapplicability

ofthefindinginrelationtosimilarorganisations.Asmentionedinthemethodologysection,

my findingsarenotgeneralisable,however, theymayenlightenspecificaspects thatcanbe

transferredtosimilarorganisationalcontexts.Theseaspectswillbediscussedinthispart.

TheresultsfromtheTOWS-matrixshowseveralinitiatives,whichcanbedoneby

People&PerformanceandMercuriUrval.Asmentionedpreviously,theresultsfromboththe

SWOT-anlaysisandtheTOWS-matrixarerathergeneralandduetothis, itcanbediscussed

that theseresultscanbeseenas tendenciesbasedontheanalysisofPeople&Performance

and Mercuri Urval, which can be transferred to other recruitment consultancies.

Simultaneously, it can be discussed to what extend strategic considerations within an

organisation can be controlled by themanagement. The findings from the analysis showed

thatPeople&PerformanceandMercuriUrvalarenotthatdifferent,however,haveachieved

different success. Hence, it can be argued that succeeding with gaining a competitive

advantagedoesalsoentailbeingattherightplaceattherighttimeintermsoftrendsinthe

market,which resources are available for theorganisationandalso theglobalpolitical and

70

economic circumstances. As mentioned, the findings of the analysis, in terms of People &

PerformanceandMercuriUrvalhavingmoreorlessthesamestrategydoesnotresultinthe

samestrategy,also leads toBarneywhostates thatorganisations,whichattempt to imitate

othercultureswillbeatsomedisadvantage,intermsofreputation,experience,etc.,compared

to the organisation they are trying to imitate (Barney 1986). Hence, what works for one

organisation does not necessarily work for the other as the competitive advantage entails

more than just making a strategic choice, but also is depending on factors such as

organisationalcultureanduncontrollableexternalfactors.

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6. ConclusionTo answer the problem formulation, the findings of the analysis and the discussion of this

thesiswillnowbeconcludedon.Theanalytical frameworkconsistedof threeelements: the

SWOT-analysis, the TOWS-matrix and Porter’s Generic Strategies. In relation to the SWOT-

analysis, the comparison of People & Performance and Mercuri Urval showed that the

purposeoftheSWOT-analysiswastoidentifyandunderstandtheorganisations’competitive

and management situation on the basis of both internal and external factors. People &

PerformanceandMercuriUrvalsharesimilarities,yettheyarealsoverydifferent.Theresults

oftheSWOT-analysisindicates,thattheorganisationshavebeenintherecruitmentindustry

undermoreorlesthesamecircumstances,hence,itmustbeassumed,thatthereareseveral

wayofapproachingastrategyontheglobalmarket.FollowingtheSWOT-analysis,theTOWS-

matrixwasconducted,whichpurposewastoidentifythestrategicdevelopmentpossibilities,

intermsofinitiatives,ofPeople&PerformanceandMercuriUrval.Severalinitiativescanbe

takenintoconsiderationonthebasisoftheresultsfromtheSWOT-analysis.Itcanbeargued

that some of the initiatives mentioned in table 5 and 6 are already being used by the

organisations.This indicates that theorganisationsareawareof theiropportunities,hence,

when using the SWOT-analysis and TOWS-matrix, which are very simple tools, there is a

possibility that the concernedorganisations already knowabout these results, as tools like

theseareveryaccessibleandeasy tounderstand.The third,and final,partof theanalytical

frameworkwasPorter’sGenericStrategies.Thepurposeofusingthistheorywastoidentify

anddiscuss,whichofthestrategiesPeople&PerformanceandMercuriUrvalhaveutilised.As

itappearsfromPorter’sGenericStrategiesmatrix,People&PerformanceandMercuriUrval

arelocatedinverysimilarpositionsinthemarket.Thismeans,thatthetwoorganisationsare

locatedin-betweenthesourceofcompetitiveadvantage‘costleadership’and‘differentiation’

and also, they are both located in the scope of the strategic target called ‘broad’. Hence,

according to the results of Porter’s Generic Strategies, People & Performance andMercuri

Urval should be in possession of the same possibilities in terms of gaining a sustainable

competitiveadvantage.Withtheknowledgeofbothorganisationsaswellastheresultsfrom

of the analysis, itmust be assumed that factors others than ‘scope of strategic target’ and

‘source of competitive advantage’ influence the success of the organisations in terms of

gainingacompetitiveadvantage.

72

The discussion of the thesis touched upon someof the topics,which appeared

fromtheanalysis.Thediscussiontouchedupontheanalyticalframeworkandtheimplications

ofthefindinginrelationtotherelevanttheoryandliteratureofthisthesis,aswellaspractical

implicationsofthethesisinrelationtosimilarorganisations.InrelationtotheSWOT-model,

theanalysisappearedtotendtocreateasomewhatsuperficialviewontheorganisations,asit

oversimplifies thecomponentsof theanalysis.Hence,within this thesis theSWOT-model is

mostlyusefulwhenusedasafoundationandwhensupportedbyothertheories.TheTOWS-

matrix has more or less the same pros and cons as the SWOT-analysis as it is a natural

extensionhereof.However,inrelationtothisthesistheTOWS-matrixdidcontributebybeing

able to convert the results from theSWOT-analysis into specific initiatives andgainingand

understanding of which initiatives are possible to take action on in relation to gain a

competitive advantage.Hence, the challengewith theTOWS-matrix is, that it generates too

general solutions, and also, the person conducting the analysis needs to have initiatives in

mindalreadywhendoingtheSWOT-analysis,toavoidtheinitiativesnotbecomingtoovague.

Porter’s Generic Strategies have been a benefit in terms of converting themore superficial

results from the SWOT-analysis and TOWS-matrix into a tangible and specific outcome.

Nevertheless,inrelationtothisthesis,Porter’sGenericStrategiesisnotanaturalextensionof

theSWOT-analysisandtheTOWS-matrix,thereforeitcanbeachallengetonaturallyputthem

together and gain thedesired result. It is ofmybelief that they all support eachother and

therefore, despite of their individual deficiencies, compose a beneficial framework for this

thesis.FromtheresultsofPorter’sGenericStrategies itappears thatPeople&Performance

andMercuriUrval arevery close toeachother in termsof strategic choices,however, they

haveverydifferentsuccess,asPeople&PerformancewentbankruptandMercuriUrvalisstill

on the recruitmentmarket.This indicates that there ismore to a strategy thanmaking the

choiceofwhichscopeoftargetandsourceofcompetitiveadvantagetochoose.Therefore,it

can be discussed that too little focus is on the underlying factors of gaining a competitive

advantagewithintheexisting literatureandalso, thattheexisting literaturefocustoomuch

onthemanagerialfactorsofgainingacompetitiveadvantage.

Oneof themaindifferencesbetweenPeople&PerformanceandMercuriUrval,

which is that Mercuri Urval is locally present in the global market while People &

Performancewas only locally present in terms of being a part of the ‘IRCGlobal Executive

Search Partners’ network, which they got a member of in the final period before the

73

bankruptcyinFebruary2019.Itcanbediscussedthatthismembershipwasanopportunity

and a strategic approachPeople&Performance should have looked intomuch earlier, and

hence,missedoutonintermsofgainingacompetitiveadvantage.

From the indications that People&Performance andMercuriUrval seem tohave a similar

strategic approach, the discussion section also enlightened the topic that succeeding with

gainingacompetitiveadvantagedoesalsoentailbeingattherightplaceattherighttimein

termsoftrendsinthemarket,whichresourcesareavailablefortheorganisationandalsothe

globalpoliticalandeconomiccircumstances.Hence,whatworksforoneorganisationdoesnot

necessarilyworkfortheotherasthecompetitiveadvantageentailsmorethanjustmakinga

strategic choice, but also is depending on factors such as organisational culture and

uncontrollableexternalfactors.

Toanswertheproblemformulation,whichisasfollows:

“Isthereastrategy,whichwouldprovideScandinavianrecruitmentconsultancieswitha

competitiveadvantageontheglobalmarket?”

Thefindingsoftheanalysisandthediscussionsectionofthisthesisindicatethatthereisno

exact strategy, which would provide a Scandinavian recruitment consultancy with a

competitive advantage on the global market. By examining People & Performance and

MercuriUrval in termsof a comparative case study, it appears that even though theyhave

approachedthemarketmoreor lesssimilarly, theygainedadifferentresult.This indicates,

that a strategy thatworks for one organisationdoesnot necessarilywork for the other, as

several factorscomeintoplay,hence,thestrategyshouldbeappliedinaccordancewiththe

individualorganisationanditssituation.Thereasontothisis,thatnotallfactorsthatplaya

roleinrelationtogainingacompetitiveadvantagecanbetreatedasastrategy,asforinstance

organisationalculture,whichneedstoarisenaturallybetweenemployees,andwhichnotcan

beforcedinrelationtotheimplementationofastrategy.Nevertheless,onthebasisofexisting

literatureandthe findingsof this thesis, there isa tendencythathavinga localapproachto

theglobalmarkethasbenefitsintermsofgainingacompetitiveadvantage.

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