Road Dog And Strataforce: A Case Study
“Never settle; if you say it, you'd better mean it and you'd better do it; dare to be different; and see the awesomeness in others.” In 2015 Road Dog and Strataforce had an annual revenue of 49.9 million dollars, in 2016 it increased to 65 Million dollars. Both companies combined had 81 employees, 11 offices, was present in 14 states and had 10000 temporary workers. Now they can offer staff for companies both on site and for transportation. Today, Strataforce and Road dog merged under one brand. The road Dog team. The latter is divided in three divisions: Tana and Mike Greene entered the staffing industry in the late 80s. They bought a franchise of a Californian clerical staffing company called Remedy and started their business in Virginia …show more content…
Even including the agency fees it can be less costly for them to employ external workers. Whereas they would have to pay for every permanent employee certain benefits and offer certain guarantees, as health care insurance for example, they save those costs when working with temporary employees. Also under current law, they exhume themselves from responsibility over liabilities related to those workers. The source of revenue for staffing agencies normally consists of the fees they receive from the companies. (Find source) This fee can range from around 25 to even 150 percent of a wage per hour depending on demand and skills. …show more content…
To get this business started there is only a moderate investment required. The initial costs are low since they only need an office, after getting the first contracts they can easily get a loan to front the salaries. A company can enter without the need of a bank. Recruiting companies for example can expand their reach to this industry. A possible deterrent for newcomers is the low margins and the excessive amount of companies already established in the industry. On the other hand the success of the business fluctuates. When signing a contract for staffing with a big company as Strataforce did for COTY, they highly depend on those companies. Ending contracts can cause trouble. Therefore it is important to diversify the Business
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