Business model of each of the businesses will be defined by a description of four elements that together create and deliver

value: customer value proposition, profit formula, key resources and key processes.

Business model of CVWarehouse Costumer value proposition: Recruitment is often a costly and time consuming. Hiring new staff appears a particular problem for small and medium size companies but also for big companies because recruitment places demands on limited resources. CVWarehouse offers lower cost and higher flexibility for the clients, allowing employers to post open job positions in a tailored website and keep track of their candidates. In addition, CVWarehouse allows measuring recruitment efficiency by making reporting easier. Finally, value is also delivered to candidates. This software allows candidates to apply without all the common inconvenience of other processes. Profit formula: CVWarehouse is in its early stages and just some early adopters have accepted the product. Thus, the company has no stable revenues and there is no profit yet. As mentioned before, CVWarehouse offers to companies its own job site with none of the maintenance. Revenues will come from licenses, maintenance fee and consulting for any upgrade on the customers site. Regarding the cost structure, we do know that monthly operating costs are close to 80.000. Key resources and processes: Inge started this company after the know-how acquired in her first company, providing her great knowledge of the market. In addition, CVWarehouse is leveraging from Executive Research resources (5 employees and a strong brand in the market). Technology is already developed (adapted from a CRM system) and has been tested by partnering with a well-known online employment site. Growth potential of CVWarehouse The value proposition of the company is repeatable and scalable. On the other hand, there are some threats that may affect the growth potential of the firm. As mentioned before, the technology is based on adapting a CRM system, which may be easy to replicate. In addition, there is need of financing (from VC or business angels) as right now operating monthly costs are high and revenues are not enough. Finally, if Inge finally decides to sell ER, CVWarehouse will not be able to leverage from its resources.

Business model of EKM Group Human Capital Costumer value proposition: The EKM Holding group has 4 lines of business, offering temporary job positions, executive search and human resources consulting, middlemanagement selection and administrative task outsourcing under the umbrella of 4 different companies. In the recruitment sector, companies used to focus on one of the previous categories. On the other hand, all of them, influenced by Jaumes way of working and thinking about business, have a common customer value proposition. EKM provides global solutions using proximity as strategic and differentiating factor. In addition, strategy of the company is not to go for volume but keeping high standards on the service offered and excellence in the details (e.g: providing banks more financial information than strictly necessary). This value proposition is common in the services industry but few companies achieve the expected results.

Profit formula: Revenue model in EKM is the common used in each segment. Eurogroup Consulting charges a fee equivalent to a third of the salary of the hired executive and Nominex charges clients and pays out the contracted person. Key resources and processes: Jaume has invested lot of resources on training new employees aware of the importance of having committed people to the project while competing with much larger established companies. This is aligned with the value proposition of the company. In addition, to professionalize the company, Jaume has build a young but strong management structure with six experts in charge of the executive tasks. Growth potential of EKM Group Human Capital Jaumes goal is to expand to Madrid before 2012 and enter in Europe in 2020. Entering into new markets will be a challenge for the EKM business model. As mentioned before, customer value proposition is based on proximity and excel on the services provided. This will be hard to sustain if Jaume tries to expand too fast. On the other hand, by following the concentric growth strategy, expected growth could take much longer than expected.

Business model of CVO Group Costumer value proposition: The company changed its business model from a lowcost service to a premium service by adding value to its services, improving customer support and increasing prices significantly. In addition, the arrival of Sinclair was key to add recruiting experience to the company and thus be able to create a fully-integrated company (online + traditional recruitment business). Profit formula: For the online line of business, revenues come from job advertisements and monthly subscriptions. On the traditional recruitment division a fee is charged to the client. In addition, CVO is thinking about entering the personal leasing market, less transactional business, in order to obtain a more stable source of revenues and also lock the clients. Key resources and processes: CVO started as an internet-based recruitment service but through a quite painful process to build a team, Sinclair has been able to establish a company that offers also traditional recruitment services and is present in seven countries. Growth potential of CVO Group There is a high risk to grow by acquiring Center-Group and thus expanding into the personal leasing and payroll outsourcing markets. Even if there is a potential market in Poland, growth might be limited in the payroll segment as margins are really low. In addition, company has moved from a purely online company that was easy to scale to more traditional recruitment segments. Thus, growth potential is higher if Sinclair focuses on the existing capabilities and establishes an office in London to target the western Europe market. In addition, this option will be easier to integrate on the existing structure.