Case study 51 central training college

The Central Training College is the headquarters of a training group that is part of a consultation, recruitment and training company. One of the recruiting divisions of the company carries out the recruitment of permanent and temporary sales, construction, finance and management personnel, as well as office personnel. The Central Training College offers a wide range of general office courses as well as more specialised courses such as languages, business administration and desktop publishing. The consultation, recruitment and training company has been developing its activities in training and recruitment through organic and acquisitional growth. It has been proposed to move into the London market in time to take advantage of any improvements in industry growth. The most cost-effective method is thought to be to develop the property in central London already owned by the firm - the Central Training College - rather than pay for new premises.

At the moment, graduates of the college are left to find their own employment contacts or they are referred to a suitable employment agency. No financial gain is received by the college from this arrangement. If there were a recruitment agency that was part of the same company operating in the college, all students would be referred to it rather than to rival firms' recruitment agencies. This would increase the potential turnover per student. (Turnover refers to the money received through tuition and placement fees.)

A consultant was called in to advise on the viability of opening a recruitment agency in central London. On the basis of initial discussions the consultant produced the following research proposal.

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