Secondary research on Business Models based on Training: Here I have discussed three business models which could be used

to understand how a training based models work and if such a model could be used by Cestax law Consultants to expand their business and tackle the problem of high attrition. Introduction: Cestax law Consultants is a Tax consulting firm established in 1997. They mainly deal in Excise, Customs, and service tax. Thus regular company audits and legal consultancy are their major revenue sources. They also conduct certificate courses in taxation and import export law for students as well as senior industry executives. They have clientele of 150 spread across Mumbai, Pune, Nashik, Aurangabad, Ahmednagar and Goa. The three major problems that the firm is tackling currently are: 1) Very high attrition rate 2) And stagnant growth and restricted expansion 3) Succession planning To deal with the high attrition rate we are looking to improve the internal HR practices and building a work culture. However considering that the employees who suit this role are majorly the students who are pursuing ICWA it is not practical to expect people to spend more than 3 year with the firm. Thus, we have decided to look at different kinds of business models which could be adopted by the firm. The stagnant growth and limitation on expansion of the business is a direct result of high attrition in the firm. Thus to tackle the problem the firm is exploring newer avenues like 1) Collaborations with other businesses which focus on other taxation areas, 2) Evaluating which other services could be bundled along with the current offering to the customers by understanding the requirements of clients and bridging the gaps between expectations and service delivered. Thus here I have discussed the two businesses which have training as the center pillar of the business model. Both these models work on backward integration of the process of strengthening the talent supply by training the employees themselves.

I)

Javed Habib Hair Expresso:

Leading player in the hair and beauty segment Jawed Habib is one of the largest unisex salon chains in India. The promoter, Mr Jawed Habib Akhter, has built the brand over the past ten years by drawing on his expertise in the family profession, through premium services and by creating a differentiated model with a pan-India presence. The promoters association with Sunsilk and Panasonic as their brand ambassador has also helped the Jawed Habib brand gain popularity. Wellness services market poised for strong growth The Indian wellness industry, worth nearly Rs 280 bn in 2008, is growing at around 20% annually (source: DRHP, 2S Consulting Report 2008). Within the wellness industry, the products segment is expected to grow at a CAGR of 11-14% while the services segment is expected to grow at a much faster pace of ~30-35%. The hair and beauty salon market (a part of wellness services) in India is estimated to be ~Rs 69 bn, up from Rs 15 bn in 2005 - a five-year CAGR of 36%. Most of the players in the hair and beauty segment have chosen to operate through the franchisee model in their urgency to grab market share. There are seven to eight organised players (VLCC, Lakme, Shahnaz Hussain, Naturals, etc.) in a largely unorganised industry and few more like Bellezza and Enrich, are expected to expand and increase their spread. Significant expansion undertaken in the past 2-3 years Over the past four years, JHHBL has expanded its presence across 62 cities (metros, Tier I, Tier II and Tier III) with its Jawed Habib Hair and Beauty and Jawed Habib Hair Xpreso brands. At present, the company has 184 salon outlets and 41 salon academies in India. The company has scaled up operations based on a franchise model; it self-operates only eight salons and six academies. The wide coverage of its outlets enables the company to exploit the largely untapped and highly unorganised market, strengthening its visibility. Backward integration into training institute JHHBL operates Indias largest training facility for hair stylists. The strategy to establish academies not only helps address supply issues but also provides the company with an alternate revenue stream. The company trains more than a thousand hair stylists every year. A majority of these hair stylists get absorbed at JHHBLs salons. This negates any supply-side risks for the company as the enrolments at the training institutes more than cover JHHBLs stylist requirements. Although most peers also have academies of their own, few have enough scale to match JHHBLs reach. The employees range from fresh trainees to laterals who have to undergo a short training at the companys academy before being deployed at a salon.

Brand risk - high dependence on the promoter The Jawed Habib brand commands a strong brand recall among clients and future growth to a large extent depends on association of the promoter with the company. Mr Jawed Habib Akhter has been instrumental in building the brand over the past two decades. JHHBL derives considerable leverage from the Jawed Habib brand and is able to attract customers on the strength of this brand. While it has been successful in doing so, any litigation/negative publicity against the promoter or his non-association with the company remains a key risk. JHHBL has a long way in increasing the strength and visibility of its brands before it could do without Mr Habib Akhters association with the company.

II)

Anudip foundation:

Action aid, in collaboration with Stanford University, carried out an ethnographic study in the Ganges Delta region south of Kolkata, which showed that economies of desperately poor and marginalized people can be dramatically impacted by increase of local employment. Subsequently, a group of dedicated social entrepreneurs set up Anudip Foundation to address critical livelihood needs of people of rural India through information technology. Anudip began establishing training centers with three locations in the Sundarbans region of eastern India. These first centers were learning prototypes launched in partnership with community NGOs. They allowed the development of local learning techniques, course content, sustainability of operations, and ease of replication. Feedback from alumni of prototype Centers and recommendations of their advisors and partnerNGOs led to the concept of MERIT outsourcing centers, not only to absorb graduates of our MAST centers, but also to address the burgeoning growth of the BPO sector in India and set up a model which will have far-reaching and nationwide implications on the industry. Anudip follows a Market-Aligned Skills Training (MAST) program that involves: 1) local employers in creating course curricula out of their job-skill needs. 2) This training methodology equips students with skills for securing jobs in their communities. 3) Since its inception Anudip has trained over 5,000 rural youth with a placement ratio of 70% and improving. MAST is a proven training methodology of the American India Foundation (AIF) that is implemented by leading skill development organizations across India. Anudip optimizes AIF's curriculum to execute on our knowledge economy focused mission for rural youth and women.

ANUDIP'S PROCESS OF TRANSFORMING UNEMPLOYED YOUTH TO EMPLOYED CITIZENS:

Anudip partners with reputed community-based NGOs to locate training centers and recruit students. Students pay a nominal fee for Anudip's industry-leading courses. Through this infrastructure-light, win-win methodology, Anudip can penetrate and leave a lasting presence in remote areas. Anudip's has partnered with company iMerit Technology Services, a globally networked IT services company with a social mission, which employs Anudip's graduates to offer low-cost, high-quality outsourcing services to global and domestic clients. The further SWOT analysis of both these models is in progress and will only be completed with the help of primary research. References: Crisil report on Javed Habibs Hari expresso Anudip foundation website