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The Adecco Group SWOT & PESTLE Analysis

ID : 52967553| Jun 2021| 18 pages

COMPANY PROFILE -The Adecco Group

Business Sector :Human Resource and Employment Services, Consulting

Operating Geography :Switzerland, Europe, Global

About The Adecco Group :

The Adecco Group headquartered in Zurich, Switzerland, is the Human Resources provider and temporary staffing firm featuring on the esteemed Fortune 500 list. In 1996, the business was established as a result of the merger of Ecco, a French firm, and Adia Interim, a Swiss firm, and is traded on the SIX Swiss Exchange. The Adecco Group owns Adecco, Modis, Spring Professional, Badenoch & Clark, Pontoon, General Assembly, Vettery, Adia, and Lee Hecht Harrison, among other labels. The company offers temporary and permanent staffing, as well as job change and talent growth, business process outsourcing, and advisory services. The business serves organisations across the HR continuum, as well as individuals at all stages of their careers, as they act as a consulting firm and a solution distribution partner. Via its three specialist fields of Reskilling & Upskilling, Workforce Transformation, and Talent Placement, it focuses on employability, maximising talent and human resources. In 2021, the company announced that as part of a strategic phase shift, Modis, a leading global technology service provider, will combine IT+ engineering consultancy services from the Adecco Group brands Ajilon and Badenoch + Clark. This will expand capabilities and provide access to unrivalled expertise in technology and engineering.
The Adecco Group's Unique Selling Point or USP lies in being the world's leading workforce solution company, providing flexible and permanent placement and outsourcing across all sectors. The company's vision statement reads, "Our vision is to ensure that people across the globe are inspired, motivated, trained and developed to embrace the future of work. To be in environments where they are empowered to thrive, stimulated to succeed and given every chance to make their futures better and brighter than ever before".

The Adecco Group Revenue :


Euro 23,427 million - FY ending 31st December 2019 (y-o-y decline, 1.84%)
Euro 23,867 million - FY ending 31st December 2018

Competitive Analysis of The Adecco Group

SWOT
PESTLE
The SWOT analysis for Adecco is presented below in a matrix followed by the detailed analysis report:
StrengthsWeaknesses
1. Offering a wide spectrum of end-to-end HR solutions (including up/reskilling)

2. Most comprehensive portfolio of digital HR platforms
3. Strong and differentiated brands driving efficiency
4. Better placed among competitors due to large size being second largest in the world
5. Employing enhanced digital tools and balanced fiscal management resulted in consistent profits
6. Proved rewarding for shareholders YoY
1. Revenue Sources are concentrated
2. Increment in debt to equity may put stress on financials.
OpportunitiesThreats
1. Spike in outplacement by organizations due to Covid-19 circumstances
2. Adecco has a large market chunk to tap in Euro 500 billion HR solution industry
3. Avenue to target companies having work-from-home model for upskilling and training the employees
4. Leveraging the Ventures and the brand ecosystem to create unique solutions:

5. Building skills to access opportunity
1. New lock-down in Europe and Americas can have repercussion on the growth prospects
2. With increase in cases of data and privacy leaks, Adecco to be more vigilant of personal information to avoid legal actions
3. Understanding the market of foreign jurisdictions is difficult
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of The Adecco Group

Strength

This section is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

1. New lock-down in Europe and Americas can have repercussion on the growth prospects: The Covid-19 pandemic since it advent in January, 2010 in Europe and the Americas had compelled the economic activity to halt due to imposition of nation-wide lockdowns. This rendered thousands jobless, and those who were fortunate did manage to save their jobs by working from home. All these circumstances led to a precipitous decline in consumption and eventually the economy crashed. The situation eased when the Covid-19 cases started decreasing, giving an impression that the pandemic situation is nearing closure. People started to re-join their works and coming out of their homes who were long feeling trapped. As a result, a second-wave of the virus is said to have hit the Europe again with a surge in the Covid-19 cases; the economy which was showing a sign of recovery is again set to de-rail due to imposition of new lockdowns and curb measures. This has resulted in massive job losses, consumption loss and decline in GDP. Adecco would not be an exception to the second imposition of lock down and revenues and growth targets would definitely be impeded.

2. With spike in the number of data and privacy leaks, organizations need to tighten their guard around protecting personal information to avoid legal actions: With digitalization becoming omnipresent, data protection and cyber security has become all the more important. Adecco recognizes that the ability to provide a data environment respecting the highest security and regulatory standards like GDPR, which is critical to its business and operations. Any shortcoming in observing the above-mentioned may result in tarnishing the image and trust of the organization. Adecco is committed to continually invest in cyber-security related processes and systems. The countries like USA and the Canada have in place one of the most stringent laws concerning data privacy and security wherein laws hold the chief executives as the responsible person for data and information security. Information system audit finds an important spot equivalent to financial audit. Many governments in south-east Asia and Europe, have mandated data localization to protect the rights of the citizens. Data belonging to indigenous people cannot reside on servers located outside the physical boundaries of the country. With the recent spike in cases of data and personal information leaks, organization like Adecco who have worldwide presence need to fall in line with data and privacy laws and many a times incur high compliance costs for the same.

The remaining section under "Threat" is available only in the 'Complete Report' on purchase.

Major Competitors :

  • Aquent
  • Express Employment Professionals
  • Manpower Group
  • Randstand
  • Hirewell
  • Victory Lap
  • Kelly Services
  • Betts recruiting
  • Hunt Club

Major Brands :

  • Adecco
  • Adia
  • Badenoch & Clark
  • Lee Hecht Harrison
  • Modis
  • Pontoon
  • Spring
  • Yoss
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References used in The Adecco Group SWOT & PESTLE Analysis Report

1. Annual Report 2020 - https://www.adeccogroup.com/investors/annual-report-2020/

2. Adecco Staffing - https://www.adecco.com/

3. The outplacement business in India may touch $10 million in a few years: Joel Paul - https://hr.economictimes.indiatimes.com/news/workplace-4-0/recruitment/the-outplacement-business-in-india-may-touch-10-million-in-a-few-years-joel-paul/78400958

4. Work from home: Biz leaders feel employees have productivity at 65%, says report - https://www.livemint.com/news/india/work-from-home-biz-leaders-feel-employees-have-productivity-at-65-says-report-11587739746443.html

5. New lockdowns will impact revenue recovery, Adecco Group CFO says - https://www.cnbc.com/video/2020/11/03/new-lockdowns-will-impact-revenue-recovery-adecco-group-cfo-says.html

The detailed complete set of references are available on request in the 'Complete report' on purchase.

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The Adecco Group SWOT and PESTLE analysis has been conducted by Arpit Ahuja and reviewed by senior analysts from Barakaat Consulting.

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The Adecco Group SWOT & PESTLE Analysis
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