EFTA01104093.pdf

GATEWAY SCANDINAVIA Where the best corporations meet the best talent PROBLEM / THE MARKET The population of Europe is declining at the same time as the world is going through rapid digitalization. The demand for individuals with backgrounds or skill sets in Engineering, Math, Science, and IT is increasing. It is expected that Sweden alone will lack SO 000 engineers in 2020, and Europe overall will need S00 000 such people in 2020. Leaders at the World Economic Forum discussed challenges for the recruitment sector inherent in the world's rapid industrialization. Founder and CEO of the Forum, Claes Schwab, commented, 'I am convinced of one thing — that in the future, talent, more than capital, will represent the critical factor of production (Schwabs) As a consequence, competition for talented individuals worldwide is increasing, and multiple international companies are actively branding themselves as potential attractive employers at some of the world's best universities. Swedish companies do not yet brand themselves in this way at such venues. For example, only one Swedish company actively pursues students at MIT, and none actively engages with students at Stanford, Columbia, or Princeton Universities. However, companies such as Alibaba, McKinsey, Amazon, Facebook, and TATA recruit from these campuses. Furthermore, Swedish companies are increasing their presence in developing markets; in Asia, they indicate that their second biggest challenge when expanding is recruitment. THE SOLUTION GatewayScandinavia's ambition is to help Scandinavian companies brand themselves as attractive employers at some of the world's best engineering universities. Furthermore, the company aims to help Scandinavian companies recruit engineers to full-time and trainee positions in Scandinavia and to full time positions at these companies' local offices. GatewayScandinavia aims to assemble profiles and CVs of engineers on an easily accessible database for future sourcing. Awareness GatewayScandinavia will brand Scandinavian companies through • Social media outreach, • Close collaboration with universities, • Career fair participation, • Information sessions and • Posters and flyers. Recruitment GatewayScandinavia will tailor the recruitment process to each company's needs and the level of candidates. Offerings will include screenings, first and second round interviews, personality tests (MBTI and FIRO), and reference checks. EFTA01104093 REVENUE MODEL ME GatewayScandinavia's revenue stream will be two-told: 1. Fixed branding fees To be paid in advance of branding activities. Awareness fees at U.S. and Indian Universities at 500 000 SEK 2. Recruitment commission fees The recruitment commission fee is 3 times the employer's monthly salary Payment will be made in a 30:50:20 ratios The client's head office should pay for the fixed awareness fee while client's local offices should pay the recruitment commission fee based on their needs. CASH FLOW • 20% will be paid when clients sign contacts with GatewayScandinavia, no later than June for the fall recruitment cycle • 50% when GatewayScandinavia hands over candidates (three candidates / commission) to the client, in November for Indian university candidates and December for U.S. candidates • 20% when a client signs a contract with the student, February for the fall recruitment cycle. Please see financial projections for revenue streams, assumptions, and profits. COSTS GatewayScandinavia's major costs are wages, a safe and easily accessible application platform, application-tracking system, and travel to campuses worldwide. Please see financial projections for revenue streams, assumptions, and profits. TARGET Companies: GatewayScandinavia will target Scandinavian companies with international presence. Students: GatewayScandinavia will target undergraduates, graduates, and alumni with engineering, science, IT, math, and technology degrees. Universities: GatewayScandinavia will target students at the top engineering universities in the U.S., India, China, and South Korea. GROWTH STRATEGY 2016 and 2017 GatewayScandinavia will provide services to attract students from institutions in the U.S. and India. 2018 — 2020 GatewayScandinavia will provide services to attract students from institutions in the U.S., India, China, Brazil, and South Africa. 2020 — on GatewayScandinavia will provide services to companies from other Scandinavian and European countries, using an online database. EFTA01104094 CHALLENGES Visa It takes 6 — 7 months for visa approval. However, due to the expected shortage of engineers, the Swedish immigration office has facilitated the process for engineers, mathematicians, and scientists obtaining a work visa there. Furthermore, GatewayScandianvia is currently in discussions with the immigration office in order to facilitate the process further for high-talent immigrants in desirable occupations. Housing Housing searches in Stockholm and Gothenburg are challenging; thus, it is crucial that candidates have a minimum of three months to search for housing. Competition GatewayScadnianvia faces competition from recruitment agencies as well as from Swedish (and later Scandinavian) companies' HR departments. At present, no recruitment company focuses solely on candidates with the backgrounds GatewayScandinavia will target, and no recruitment company focuses on international recruitment and university branding activities. Scandinavian companies have thus far not actively engaged and attracted students at some of the world's best universities. Conversations with multiple companies reveal a lack of resources, of knowledge, and of the need for engineers that is surfacing currently. It is of crucial importance for GatewayScandinavia to create barriers to entry for HR departments and recruitment companies. We aim to accomplish this through establishing relations with career centres at top international universities and through collecting CVs from and engaging with as many engineering students as possible. i.e., generating a large database of those with appropriate profiles. Cyclicality GatewayScandinavia's business is cyclical in two ways. First, the awareness and recruitment cycle lasts from September to January. Between January and June, time will be devoted to maintaining and updating databases, student group contacts, feedback meetings, and client contacts. Furthermore, GatewayScandinavia's business is cyclical in that recruitment commissions are scarce when the economy is weak. Through GatewayScandinavia's international presence, we are diversifying risks, as it is unlikely that an economic downturn will hit equally hard everywhere. TEAM Of our current EP team, three will continue developing GatewayScandinavia: one with background in entrepreneurship, one with background in IT/consultancy, and one with background in finance. In addition, GatewayScandinavia will collaborate with an HR specialist certified in MBTI and FIRO. GatewayScandinavia is currently actively recruiting advisory board members with networks, expertise, and interests in the HR and engineering industry. VALUES GatewayScandinavia is a value-driven company, with four main values: professionalism, commitment, integrity, and respect for the individual. These values apply equally among team members and to client and candidates. REFERENCE http://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-meansandhow- to-respond EFTA01104095 ME EFTA01104096