Strategic Alternatives for Monster Worldwide to Remain Attractive

WHAT STRATEGIC ALTERNATIVES SHOULD MONSTER
WORLDWIDE, INC. IMPLEMENT TO CONTINUE TO BE
ATTRACTIVE TO CUSTOMERS?
A thesis submitted to the Anglo-American University for
the degree of Bachelor of Business Administration
Semester year 2013 - Spring 2013
INSTRUCTOR: SIMON GORDON
CIRO CENNAMO
SCHOOL OF BUSINESS ADMINISTRATION

2
DECLARATION
I hereby declare that no portion of the work referred to in this thesis has been
submitted in support of an application for another degree, or qualification thereof, or
for any other university or institute of learning.
I declare that this thesis is my independent work. All sources and literature are cited
and included.
I also hereby consent to my thesis being made publicly available via online open
access and for circulation in the Anglo-American University Library.
Ciro Cennamo

3
ACKNOWLEDGEMENT
I would like to thank to my family, Mamma Camilla and Papà Angelo for their effort
in raising me. To my wife, Vera, for her love. A particularly thanks to Anglo-
American University, and all the staff that provided me the opportunity to be a student
and leader. An embrace of my heart to my friends, Mr. Charlie Lamento and Bryan
Castro. Finally, none of this would have been possible without Ms. Dawn Custalow.
Thanks to all.
With love,
Ciro

4
TABLE OF CONTENTS
EXECUTIVE SUMMARY ....................................................................................................................5
INTRODUCTION ..................................................................................................................................7
I. INTERNAL ASSESSMENT .....................................................................................................15
II. FINANCIAL ANALYSIS..........................................................................................................22
III. EXERNAL ASSESSMENT.......................................................................................................35
IV. STRATEGIC ALTERNATIVES..............................................................................................42
V. CONCLUSION ...........................................................................................................................51
APPENDICES ......................................................................................................................................53
A.TABLES ............................................................................................................................................53
B.PHOTOS............................................................................................................................................58
BIBLIOGRAPHY.................................................................................................................................62

5
EXECUTIVE SUMMARY
When searching for a company, the first question that came to the author was “Where
the author belong? In addition, the answer was “the Author belongs to THE internet”,
where there are many exciting opportunities now and in the future. This paper
provides the author with an opportunity to increase his knowledge of what is
happening in this sector, and allows him to predict the possible problems and
alternative solutions that the author will have to face in a future business career in this
sector.
This paper tries to answer the question: Which Strategic Alternatives Should Monster
Implement to Continue to be Attractive to Customers? Accordingly, this paper will
critically answer this question that Monster faces now and in the future, since the
company’s revenue fell in FY 2012 for 10.39% (Revenue $ 993,644 in 2011 to
890,392 in 20121
(unaudited in thousands). It will present alternative solutions to the
revenue dropped down symptom, considering the competitors and academic sources
and will improve their social media strategy, including problems that are developing
in the global market, such as job markets and recruiting via social media platforms.
The alternative strategies were made using tools such as marketing research
methodology (mystery shopper), academic business reviews, quantitative and
qualitative data collection and interpretation from the actual world market and
economic situation, job market, financial and company background, and financial and
profitability ratios. After carefully collecting, selecting, interpreting the information
and data/result and in putting them into modern business tools and schemes. They are
listed by priority, such as CPM Matrix, EFE and IFE Matrix, Porter’s Five Generic.
Based on these analyses this paper presents the right strategy for Monster. The
mentioned business strategic tools identify and list the best strengths, weaknesses,
threats, opportunities and analyzes them in the Matching Stage for the best
opportunities and grades them with and assigned number. The matching phase2
assigns a score based on table “SWOT Matrix and SPACE Matrix, from which it is
possible to understand the best possible strategies to be implemented by Monster at
this time.
1
Monster World Wide Inc. February 2013. 2 March 2013 <http://www.about-
monster.com/content/monster-worldwide-reports-fourth-quarter-and-full-year-2012-results>.
2
David, Freud R. Strategic management: concepts and cases. New Jersey: Pearson Education Inc., Ed.
13th. Book.

6
All of the strategic alternatives proposed and suggested were identified using a
holistic approach (from classical matrix tools to the modern ones called Canvas model
and Blue Ocean). The best tactics suggested to the company for sustaining
attractiveness to the customers are as follows:
 Intensive Strategy – Marketing Penetration: increasing marketing effort by
20%. Monster has seen a correlation in the historical data in increasing
revenue with a major expenditure in marketing effort;
 Price Strategy- Monster can move to a differentiation grid and charge
premium fees and price for their products and services taking advantage of
their brand image;
 Integration strategy – Forward integration will allow Monster to surpass their
competitors.
 Partnership/Joint Venture/Acquisition – Monster can cooperate with
competitors to succeed or acquire a potential business that is related to their
business added value;
 Defensive Strategies – retrenchment, divestiture or liquidation.
All the above strategic alternatives are supported by academic business reviews and
news that analyze the most prominent company in the areas of Recruitment online,
Social Media Strategy, and Innovation, including Monster’s competitors and other
external topics and the time period in which the company achieves these goals. The
actual market has been changing so rapidly as in the previous century, such that the
company needs to ride growth next curve to growth if it does not want to ride it to a
decline. The time of the previous business model is gone and new change has to be
implemented for the sustainability of future company success. Hereby this paper,
addresses one best possible solution for the company to continue to provide the best
service/product and to be attractive to its customers. Conclusion the best strategy for
Monster to pursue is price differentiation.

7
INTRODUCTION
Company name: Monster Worldwide, Inc. 3
- Address of Principal Executive
Offices: 622 Third Avenue, New York, New York 10017 – State of Jurisdiction of
Incorporation: Delaware (US) – Internet Address: http://about-monster.com. Offices
located in 55 countries.
Monster Worldwide, Inc. (Hereinafter-called “company” or “Monster”) is a parent
company of Monster®, the worldwide employment solution for a better life as
declared in their annual report4
. The company offers employers and job seekers an
online employee search tool to fill open positions with the best candidates. This
paper serves to clarify the current company’s strategy and provide an alternative
strategy instead to regain the market share in the internet job-advertising segment and
careers one. The information considered in the paper comes from the Annual Report
20105
, jobs market publications as European Commission –Eurostat6
and US Labor
Office7
, financial8
and business information portals9
and is summarized by key
arguments in the following topics.
1. FOUNDATION
Jeff Taylor1011
founded the first job search on the internet in 1994, TMP Worldwide
Inc. as TMP with database resumes, job search agents and job alert functions. When
TMP acquired Adion, it became the largest worldwide job search site. Later in 1996,
TMP went public; the company was traded on NASDAQ under the acronym
3
Monster Wordwide, Inc. 10-K Form. Annual Report FYE 2010. New York, New York: Monster
Worldwide, Inc, 2012
4
Ibid
5
Monster Wordwide, Inc. Monster Annual Report 2010. K-10. New York, New York: Monster
Worldwide, Inc, 2010.
6
European Commission. Monitoring the job market. February 2013.
http://ec.europa.eu/social/main.jsp?catId=955. 5 April 2013.
7
United States Department Of Labor. Job Openings and Labor Turnover Survey News Release. 9 April
2013. http://www.bls.gov/news.release/jolts.htm. 2013 April 15.
8
Bersin, Josh. LinkedIn is Disrupting the Corporate Recruiting Market. 2 December 2012.
http://www.forbes.com/sites/joshbersin/2012/02/12/linkedin-is-disrupting-the-corporate-
recruiting-market/. 15 April 2013.
9
Kucera, Lisa Rapaport and Danielle. Monster Falls as Sale Process Continues Without Buyer. 7
February 2013. http://www.bloomberg.com/news/2013-02-07/monster-falls-as-sale-process-
continues-without-buyer.html?cmpid=yhoo. 15 April 2013.
10
APB Speakers International. Jeff Taylor Founder of Monster.com & Eons.com. n.d.
http://www.apbspeakersinternational.com/speaker/jeff-taylor. 15 April 2013.
11
Walter, Milana. Jeff Taylor Monster Entrepreneur. 7 April 2012.
http://www.examiner.com/article/jeff-taylor-monster-entrepreneur. 15 April 2013.

8
“TMPW”. TMP12
has made a few key acquisitions that significantly gained new
market share and TMP became market leader as Recruitment Advertising Network,
JOBTRAK and Online Career Center until 2000. These acquisitions served to gain a
marketing competitive advantage and reach more job seekers looking for an entry-
level position available via web, job boards and newspaper. They allow them to
enlarge the distribution channels, reaching job seekers and employers. The company’s
success and escalation to the media channel arrived with a spot in the most famous
and expensive advertising time in the U.S. when at the Super Bowl 1999, the ad asked
the job seeker, “What did you want to be?” In 2002, Jeff Taylor acquired Jobs.com
and Jobs™ to use it as main URL. In 2005, Jeff left the company and founded
Eons.com – a social networking site for baby boomers – then sold it in 2011.
Eons.com has been inactive since May 201213
.
Monster Worldwide, Inc. is still fighting for the leadership market position even
though the news media has reported the company has been underperforming. This is
the reason why this paper will analyze and promote alternative strategies for Monster
Worldwide, Inc.
2. PRODUCTS AND SERVICES
During the last five years, Monster has focused and developed their technology for
offering innovative solutions to customers, and gained a competitive advantage to
give customers a reason to choose them over competition14
. In 2008, the company
acquired Trovix Inc.15
., where they acquired programming that matched resumes with
job positions, then integrated Trovix’s program in to a new one called Monster Power
Resume Search®, which is a product for customers in North America, France and the
United Kingdom. Power Resume Search is part of a new product line called 6Sense®,
a technology platform. As well, the company integrated several technology systems
and provided a more safe, redundant and reliable platform. In 2007, Monster launched
Career Ad Network, CAN, focusing on an online advertising network reaching 100
12
TMP Worldwide Announces Merger With the Toronto Practice of Illsley Bourbonnais. 2 March
2000. http://www.about-monster.com/content/tmp-worldwide-announces-merger-toronto-practice-
illsley-bourbonnais. 14 April 2013.
13
Businessinsider.com Monster. 26 february 2013. 5 March 2013
www.businessinsider.com/blackboard/monster
14
Pietersen, Willie. Defining Competitive Advantage: How much more value do you deliver than your
competitors? n.d. http://www.europeanbusinessreview.com/?p=2355. 17 April 2013.
15
Ibid

9
million internet users worldwide. The company focused on providing and adding
value to clients through a centralized customer service. In 2010, Monster launched a
website in the Brazilian Market. In 2011, BeKnown was launched as a new app
available for Facebook’s users. Acquisitions16
: in 2007 China HR.com Holding Ltd;
in 2008 Affinity Labs Inc. and in Australia Monster acquired 50% of equity interest of
a company; in 2010 Hot Jobs for $225,0 million from Yahoo! Inc. Disinvestment17
:
in 2012 China, Latin America and Turkey.
The main services provided are divided into two main segments: Careers; and Internet
Advertising and Fees. The careers segment is divided into North America and the
international market. Monster offers an effective employment solution to the
employer and the job seeker to fill the job position opening with the best and skilled
candidate in quick time. The Monster’s customer value for the employer is reducing
cost of new hire, for the job seeker, and in improving life. The company had proven a
solid market share and sustained great success results until 2011. There was a
downturn in 2012 by 4.61% for Career North America, by 11.87% for Career
International and dramatically by 30.56% for Internet Advertising Fees 18
. The
careers segment is confirmed as driving the total revenue of the company by 91.4% in
the year ending in 2012. The company has great searchable software for resumes, job
posting and recruiting solutions throughout magazine, newspaper, web portals, job
boards, universities and other partners. For example, companies can post a job
position on the website, search for the best suitable candidate and utilize career site
hosting and recruitment media to maximize and target best candidates desired by
employers and/or recruiters. The search in the resume database is not fully guaranteed
and not completely successful due to new competitors such as Linkedin19
, Facebook20
,
16
Monster Worldwide Inc. Annual Report . 10-K Form. New York, New York: Monster, 2011.
17
Trefis.com. Monster Worldwide Exits Brazil, Mexico & Turkey As Losses Mount. 8 February 2013.
http://www.trefis.com/stock/mww/articles/167803/monster-worldwide-exits-brazil-mexico-
turkey-as-losses-mount/2013-02-08. 15 February 2013.
18
Monster Worldwide Inc. Annual Report . 10-K Form. New York, New York: Monster, 2011.
19
Leena Rao. LinkedIn Cuts Off API Access To BranchOut, Monster's BeKnown And Others For
TOS Violations. 1 July 2011. http://techcrunch.com/2011/07/01/linkedin-cuts-off-api-access-
to-branchout-monsters-beknown-and-others-for-tos-violations/. 11 April 2013.
20
Pepitone, Julianne. Facebook launches job search app. 14 November 2012.
http://money.cnn.com/2012/11/14/technology/social/facebook-social-jobs-app/index.html. 16
April 2013.

10
Smartrecruiters21
and others who have implemented new social media tools to match
candidates and job positions. However, this topic will be covered in the market
analysis and then developed into an opportunity for the company. The target segment
is comprised of large enterprises from small to medium sized businesses in various
partnerships with media, publishing and more than of thousand newspapers in the
United States. The partnership with various media allows the Company to reach job
seekers with different distribution channels so that they are able to specifically target
the jobless market in the United States. Monster’s key partners are essential to
developing a market penetration in the U.S. and holding a solid portfolio. The other
segment, advertising and fees, got 8.57% of all total revenue in the year ending in
2012 and has fallen dramatically by 30.56% compared to 2011. Internet Advertising
and fees are concentrated in display advertising and lead generation22
. Marketers
choose an online advertising message a numerous sizes and formats to publish on
Monster’s websites. How does this advertising work? Consumers visit the website
seeking to improve their life and finding interesting, persuasive and desirable offer
proposals for products and services as consumers and become potential buyers of it.
How does lead generation work? Lead generation targets the best market and based on
the business response Monster gets a monetary amount based on the single marketers
and proposals.
3. EXECUTIVES AND STAFF
As of December 31, 2012: global employees of Monster number 4,037 with five
executive officers (including information on their total compensations and benefits in
thousand USD in FYE 201123
):
Salvatore Iannuzzi, 59 age, Chairman, President, Chief Executive Officer (1,066
USD);
Timothy T. Yates, 65, Vice President, Director (1,516 USD);
James M. Langrock, 47, Vice President, Chief Financial Officer (2,425 USD);
Lise Poulos, 54, Vice President, Chief Administrative Officer (1,376 USD);
21
Ha, Anthony. Take Credit For The Jobs You Create With SmartRecruiters’ “Got Jobs?” Campaign.
21 April 2012. http://techcrunch.com/2012/04/21/take-credit-for-the-jobs-you-create-with-
smartrecruiters-got-jobs-campaign/. 18 April 2013.
22
Alexander Hiam et al. Marketing for Dummies. n.d.: John Wiley & Sons., 2nd Edition, UK Edition
edition (22 May 2009). Print.
23
Thomson Reuters.com. People Monster Worldwide Inc (MWW). 5 March 2013. 5 March 2013
<http://www.reuters.com/finance/stocks/officerProfile?symbol=MWW&officerId=823855>.

11
Mark Stoever, 45, Vice President, Corporate Development and Internet Advertising
(1,365 USD).
Iannuzzi, Yates, Langrock and Poulos had previous job experience at Motorola Inc.
and Stoever had experience in investment funds company specializing in marketing
research24
. The executive officers’ experience has driven the company strategy to
focus mainly on software development; for example, a new product line called
6Sense® technology platform, rather than to pursue global strategy. Since Monster’s
Founder left, the company has suffered executive officer turnover and short-term
leadership, which has resulted in a weak vision and strategic plan. Executive officers
fail for two main reasons: missing a clear vision for a long-term prospective and
settling on a development plan that communicates to all employees on how to reach
its goals. The recent changes in the market development strategy has caused loss net
of tax in the new emerging countries for Careers- China, Latin America and Turkey,
for 316,9 million and 12,3 in 2012 and 201125
. During the last four years the
executive officers’ turnover was significantly high and the facts are supported by
recent changes in the strategic alternatives26
;
4. CRITICISM AND SCANDAL
In 2006, Olesnyckyj was accused for backdating an option at a lower price. This
action is not necessarily illegal but it should be disclosed to the shareholders.
Practically he could exercise a call (buy) with a lower price and pay a stock option at
a lower price. For the year ending in 2005, the company restated its financial result
and record for the noncash regarding stock option grants. After that, the company
replaced all top executive officers from these people already mentioned.
Another important fact that has to be considered is the criticism about numerous leaks
regarding customers’ data leading to identity theft27
that happened in 2007. After that,
in January 2009, the British website – known as monster.co.uk – was attacked by
hackers who obtained more than 4,5 million people’s personal data information.
24
Ibid
25
Monster Worldwide Inc. "Investor Relations." 7 February 2013. Monster.com.
http://ir.monster.com/phoenix.zhtml?c=110723&p=irol-irhome. 4 April 2013.
26
Former Sales Director in Maynard, MA - Monster. Monster Worldwide Employee Review. 10 July
2008. http://www.glassdoor.com/Reviews/Employee-Review-Monster-Worldwide-
RVW4820.htm. 15 April 2013.
27
Ibid.

12
These incidents pushed the company to redesign a new security information system
that was implemented in 2010.
5. JOB MARKETS AND TRENDS
The economic crisis in 2008 and 2009 led companies to hire less during the economic
downturn and Monster has decreased its revenue since. Monster has decreased in its
segment market for offering job recruiting online through its platform. Executive
officers have identified different issues and risks related to the company’s business28
29 30
:
- Political uncertainty;
- Competitors;
- Tax regulation;
- Staff and management issues (culture and languages differences);
- Difficulties in managing different operations and products based on local
management;
- Products and services offered as innovative and competitive.
Executive officers considered the above key points which were included in the
Annual Report 2012 as the main risk factors to look at, but not necessarily the sole
ones. Monster has not considered some key issues, for example, customer needs,
innovation and social media solutions regarding employment. Nowadays, the new
phenomena of social media has been raising the way how businesses recruit talented
people and the amount invested in the marketing effort for targeting their customers
via social media and other job aggregator platforms31
. The social media is becoming a
new way where people open an account to be connected with friends and colleagues,
partners and companies. They stay connected with each other and with the worldwide
network. Businesses are interested in reaching those people that are in the media
changing the way society communicates about work and life. This new
communication is affecting how business adapt social media strategy to support its
28
Monster Worldwide Inc. Monster Annual Report 2011. 10-K. New York, New York: Monster, 2011.
29
World Economic Forum. "The Global Competitiveness Report 2012–2013." 2012. World Economic
Forum. http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2012-13.pdf. 16 April
2013.
30
Association of Chartered Certified Accountants. "Tax After the Financial Crisis." n/d January 2010.
Accaglobal.com. http://www.accaglobal.com/content/dam/acca/global/pdf/pb-
TaxAftertheFinancialCrisis.pdf. 14 April 2013.
31
Dutta, Sumitra. What’s Your Personal Social Media Strategy? Boston: Harvard Business Review,
n/d November 2010. Print.

13
goals32
, retain customers and increase satisfaction and customer experience for their
product or services. The phenomena forces all traditional business models to adapt
and make some changes in order to retain customers and to be profitable. However,
the majority of companies cannot change their business models and redesign them
based on new customer needs so easily without incurring loss of operations. Any
change in the distribution channels, structure, key partners and activities would result
in more costs in a shorter period. The avoidance of uncertainty pushes management
to rethink and redesign33
their strategic and business models, so as to quickly regain
their market share and keep the business ongoing in the future. Monster specifically,
took a step back and looked at all its options, reconsidering their market development
strategy in the short period. Since 2011, the company has shown a lack of vision and
management capability to redesign and realign to a unique global company strategy
taking into account the actual uncertainty and aggressive competition34
.
The online jobs recruitment market size, was estimated by Mark Mahaney in 201135
,
at $3 billion. Monster Worldwide, Inc. has $894 million from “Career Service” to
nearly 30% of the entire market, and Linkedin “Talent Solution” has reached $261
million. Careerbuilder.com is another big competitor that reached 62% (556 million)
in 2010, only from the U.S. “Talent Solution” segment. Indeed.com, Simplyhired.com
and Naukri are just behind but struggling to succeed in the market yet gaining
positions.
Table 1. Market Share in 2011
Career Service Platform
Market Size
(thousands) %
Monster.com Job Search 894 29.8%
Linkedin 261 8.70%
Indeed-Simplyhired-Naukri-
Careerbuilder and Others 1,845 61.50%
Total 3,000 100%
32
Ibid.
33
The Economist. "Managing Uncertainty. 2012. Economist.com.
http://media.economist.com/sites/default/files/pdfs/store/Managing_Uncertainty.pdf. 15 April 2013.
34
Levy, Adam. LinkedIn: Recruiting Room to Run. 20 February 2013. 15 March 2013
<http://beta.fool.com/adamlevy/2013/02/20/linkedin-recruiting-room-run/25009/>.
35
Ibid

14
A recent comScore report36
has ranked the bigger Job Search sites for traffic in U.S
according to the following data:
Table 2: Data adapted from comSore Media Metrix ranks 01/2012: Top 50 U.S web
properties37
U.S Web
properties
Visitor
(million)
% growth
Visitors
%
Visitor/total
Indeed.com Job Search 13,7 33% 42,81%
CareerBuilder.com Job
Search
9,8 27% 30,63%
Monster.com Job Search 5 28% 15,63%
SimplyHired.com 3,5 42% 10,94%
Total 32,00 100,00%
Table 2 shows the total visitors in January 2012 and the distribution amongst the main
job search websites in the U.S. and percent of visitors’ growth compared to the
previous year. Indeed and CareerBuilder have together 73.44% of the total visitors
per 23,5 million visitors (up 60% ) , Monster 5 million (up 28%) and Simplyhired 3,5
million (up 42%). The Simplyhired growth visitors’ rate of 42% means that they are
growing very fast compared to the previous year and to their competitors and in max
two years’ time, they will surpassed Monster as visitors. One aspect to point out is
that Indeed and Simplyhired are two job aggregators. They provide recruiters with
software platforms that are published by job web sites38
. Job aggregators provide a
business solution for employers who want to post a job offer by choosing job search
sites that best attract the right talent in a short time period and a minimal cost for the
company.
Linkedin offers premium services solutions for recruiters 39
and compared to the
traditional industry makes has a less expensive hiring solution via social media for
small and big companies alike. The premium service helped Linkedin – professional
36
comScore. comScore Media Metrix Ranks Top 50 U.S. Web. 17 February 2013. 10 March 2013 <
http://goo.gl/i53CG >.
37
Ibid
38
Mitras, Sramana. Job search sites overview. 13 April 2011. 15 March 2013
<http://www.sramanamitra.com/2011/04/13/job-search-sites-overview/>.
39
Levy, Adam. LinkedIn: Recruiting Room to Run. 20 February 2013. 15 March 2013
<http://beta.fool.com/adamlevy/2013/02/20/linkedin-recruiting-room-run/25009/>.

15
network – to reach 200 million users in 2012. Linkedin’s members are companies,
recruiters, jobseekers with focus markets with mobile solutions in Germany and
Brazil. Therefore, Linkedin’s growth is just at the beginning and there is a lot of room
for reaching more users. Another big giant, Facebook, known for friends networking,
recently developed its own jobs app, called “Social Jobs Partnership” with a job
aggregator’s function. As well, Facebook is developing the beta version “Graph
Search40
”. It will allow recruiters to grow their networks for candidates.
The customer needs have been changing and businesses providing recruitment
solutions to the market have to follow. Monster has changed and modified their
strategy. As will be discussed in section V – Strategic Alternatives –there will be a
comparison of actual company strategy and the written company policies. Monster
needs to set fast paced strategic alternatives to stay competitive, keep business
ongoing for the future, and move to the next curve, “Blue Ocean Strategy”41
.
I. INTERNAL ASSESSMENT
VISION & MISSION
Monster’s mission is to inspire people to improve their life42
. This mission statement
however looks more like a vision statement. Monster continues to clarify the mission
by saying, “We don’t just sell better jobs, and we help promote better lives”43
. The
vision analysis better clarifies their mission and identifies, what it means to promote
better lives. Job seekers want more than just a job in life. They want to be satisfied,
successful, wealthy, recognized, positive and optimistic in all areas of their lives.
What about the employers? What do employers/recruiters like? They like job seekers
who bring value to the company and clients as well as are employees who are
proactive, productive and grow up with the business44
. This paper emphasizes a new
Monster vision, as “We want to improve the wealth of all people everywhere in the
world… We want to transfer the knowledge of how talented people find jobs and
40
Arun Sundararajan. With Graph Search, It’s Facebook vs. Facebook. 3 January 2013.
<http://goo.gl/1MCls>. 19 April 2013.
41
W. Chan Kim and Renée Mauborgne - Harward Business Review. Blue Ocean Strategy: How to
Create Uncontested Market Space and Make the Competition Irrelevant. 2005. Ebooks 24x7.
42
Who We Are. N.d. <http://www.about-monster.com/content/who-we-are>. 15 April 2013.
43
Ibid
44
Adams, Susan. Keep Upbeat On The Job Search When You're Down In The Dumps. 11 November
2012. <http://www.forbes.com/sites/susanadams/2012/11/14/keep-upbeat-on-the-job-search-
when-youre-down-in-the-dumps-2/>. 17 April 2013.

16
create value on a global scale”. As stated in the above analysis, the mission statement
and components are clearly defined by the company but the product and services are
somewhat vague. It is not mentioned and the exact services provided to Monster and
customers and consumers are undefined. The following components of Customers,
Markets, Technology, Concern for survival growth and profitability, Philosophy, Self-
concept, Concern for public image and employees45
are mentioned and clearly defined
in the mission statement.
KEY INTERNAL FORCES
Monster exploits its distinctive competence in brand awareness by innovative
research, product development, intensive market penetration and channel distribution
to reach consumers and customers with different products and services for
employment solutions46
. This distinctive competence provides the firm with
competitive advantages over rival firms, who are very innovative and price aggressive
such as Linkedin and Simplyhired.
THE INTERNAL FACTOR EVALUATION (IFE) MATRIX
Strengths
Brand Awareness: John Sumser says that even though Monster has been in the world
market 20 years and that it has had internal organization weaknesses and poor
financial results, it is still considered a value brand since that brand has covered a big
niche of the market for almost two decades47
.
Technology & Intellectual Property: Patent rights, during the last decades, have been
considered crucial for overtaking the competitors and securing all rights for the
newest technology and software solutions48
to make profit and sue any rivals. Monster
has won the patent for its software solution and always keeps watching markets for
any threats. Since Monster’s top executive seniors worked for Motorola Inc., they are
45
International Labor Organization. "Global Wage Report 2012/13." n.d. Ilo.org.
<http://www.ilo.org/wcmsp5/groups/public/---dgreports/---
dcomm/documents/publication/wcms_194844.pdf>. 17 April 2013.
46
Kirsner, Scott. Monster may have lost its way, but there’s hope. 11 November 2012.
<http://www.bostonglobe.com/business/2012/11/11/what-happened-monster-monster-may-
have-lost-its-way-but-there-hope-for-yet/OkEeYBQAnNAJX6aSPfoB0J/story.html>. 15 April
2013.
47
Kirsner, Scott. Monster may have lost its way, but there’s hope. 11 November 2012. <
http://goo.gl/6al1p >. 15 April 2013.
48
Reitzig, Joachim Henkel and Markus. "Patent Sharks." Harvard Business Review n.d June 2008: 8.
Print.

17
aware of the problematic “shark patent”49
; the phenomena that possibly could hurt any
technological company that utilizes modules, integrated software and features in their
products. The Shark patent could cause economic damage to those do not follow
owner patent rights. Monster, up until now, has held a considerable portfolio of patent
rights50
. Apart from patents, Monster holds domain name sites, trademarks, trade
names, service marks and other proprietary rights. For the future, there is uncertainty
in how the protection right law will change and if it will defend patent owners against
any independent invention51
. Technology always needs to be innovative and offer the
best product and added value for the customer. Innovation technology52
for recruiting
solutions is crucial for companies who wish to reduce hiring costs and fill53
job
positions in the least of amount of time. Not implementing this innovation technology
is hurting Monster and even Facebook and Linkedin.
Market Expertise: Since Monster was founded, the company has been in the
leadership position and this factor has allowed them to penetrate the market and offer
a personalized and variegated recruitment solution to employers and recruiters. The
staff cost and Monster business model is under spotlight since having lower revenues
(See: Financial Analysis). There has been an aggressive competition from new
competitors such as Linkedin, Simplyhired, Jobvite and others.
Weaknesses
Management vision: Moore says “to succeed 54
the long-term companies
need to focus on middle-term”. He clarifies that any tasks and cases need
specific metrics and their related goals. In the financial analysis, this
paper covers all metrics used by the company and not any qualitative
metrics55
and balanced scorecard used56
. Why Good Strategy fails? There
are different reasons: wrong people on the board, incapacity to lead people
49
Ibid
50
51
Lemley, Mark A. "Should Patent Infringement Require Proof of Copying?" 4 Janaury 2007.
SSRN.com. <http://papers.ssrn.com/sol3/papers.cfm?abstract_id=954988>. 15 April 2013
52
Nakache, Patricia. "Finding Talent on the Internet." Harvard Management Newsletter n.d 1997: pag.
5. Reprint No. U9704D .
53
CareerBuilder. Thirty-seven percent of companies use social networks to research potential job
candidates. 18 April 2012. < http://goo.gl/r46Qs>. 15 April 2013.
54
Moore, Geoffrey A. "To Succeed in the Long Term, Focus on the Middle Term." Harvard Business
Review n.d 2007: 9. Reprint R0707F.
55
56
Norton, Robert S. Kaplan and David P. "Using the Balanced Scorecard as a Strategic Management
System." Harvard Business Review n.d. 2005: 15. Reprint R0707M.

18
and the organization in setting and reaching goals, ignoring the
marketplace and competition, and not focusing on achievements57
. It is
likely that the organization fails because of no strategy and Monster failed
in their market development in new developing countries such as China,
Turkey and Latin America where operations have been closed. The
decision to enter these markets was just taken two years earlier58
.
Social Media Solution: During the last decade, Social media such as
Facebook and Twitter have revolutionized the technology world and
people in how they use internet to interact with other people. This
phenomenon enables billions of people to open their profile online and use
it as of communication tool rather than email. Social media has been
integrated in all aspects of daily life as well as in the work59
. New
companies that have integrated social media in their online social
recruiting platform have started to compete aggressively with Monster and
other giants in this market. The way in which people communicate is
different from the past and social media are becoming and integrated part
of personal life60
. During 2012, competition has become more aggressive
since other competitors like Linkedin, Jobvite and Simplyhired have
entered the playing field. So Monster needs to explore new ways on how
to be competitive and regain the market share lost61
. Congruently, Monster
needs to reconsider its social media strategy in order to be innovative and
regain consumer appeal so to win back customers who switched to a more
“social platform”. Monster’s present strategy will be analyzed compared
with an alternative strategy in a future section. This alternative strategy
includes any relevant strength and weaknesses linked with opportunities
and threats.
57
Wade, Jared. “managing-strategic-risk-it-all-starts-with-a-plan”. 1 December 2011. <
http://goo.gl/jhpYm >. 30 April 2013.
58
59
Dutta, Sumitra. What’s Your Personal Social Media Strategy? Boston: Harvard Business Review, n/d
November 2010. Print.
60
<http://www.forbes.com/sites/joshbersin/2012/02/12/linkedin-is-disrupting-the-corporate-recruiting-
market/<. 15 April 2013.
61
Ibid

19
Financial ratios and measures: Monster’s financial measures and ratios
are only relevant for stockholders in the areas of earning per share, price
per share, earning before taxes, income tax depreciation and amortization,
operating income before depreciation and amortization, book value per
share, free cash flow, return on equity and cash marketable securities per
share. At year end December 31, 2012, Monster had negative results,
booking a loss of 258,720 USD (in thousands) and ratios under
performance as mentioned in the Financial Analysis. As of December
30,2011, James M. Langrock CFO was awarded high compensation in the year
ending in 2012 for keeping key performance under control compared to other
executive officers62
. The fact that Langrock received a good compensation led to the
fact revealed that other executives did not have enough vision and motivation to
accomplish the sale goals, customer satisfaction, internal procedures, learning and
growth using Balance Scorecard approach that supports and helps to spread only one
main vision internally amongst all personnel63
. The latest financial result will have an
impact on shorter-term strategy and Monster will focus on the main profitable
business, while reviewing operations and investing more in marketing. The result of
this paper’s analysis is that Monster focuses and relies more on financial results for
stockholders rather that an integrated approach as mentioned above.
VALUE CHAIN ANALYSIS
Porter defines value chain as a “series of support and primary activities made instead
to deliver a valuable product or service for the market”64
. Porter establishes65
in the
article Strategy and Internet – “how the Internet can be used to create economic
value” More companies that are profitable need to create value by decreasing
operating costs through operational effectiveness of premium price so it will give an
incredible competitive advantage to the company. However, improving only
operational effectiveness will not lead the company to excellence. It is needed to
exceed the competitors’ structure. Monster has to review their operation and better
62
Thomson Reuters.com. People Monster Worldwide Inc (MWW). 5 March 2013. 5 March 2013
<http://www.reuters.com/finance/stocks/officerProfile?symbol=MWW&officerId=823855>.
63
System." Harvard Business Review n.d. 2005: 15. Reprint R0707M.
64
Porter, Michael E. "What Is Strategy?" Harvard Business Review November-December 1996. Print.
65
Porter, Michael E. "Strategy And The Internet." Harvard Business Review March 2001. Reprint
R0103D.

20
integrate with the internet to decrease cost and increase value for customers. Also
Monster needs to implement the right strategy to gain competitive advantage over
rivals by developing right goals, customer value, distinctive value chain and trade-offs
to coalesce and put in action those points66
. Here below the value chain analysis
explains which activities Monster should improve to gain competitive advantage over
competitors (See Appendix B.2 Value Chain):
Support Activities
Monster’s has several components to its value chain. Firm Infrastructure – Web-based
infrastructure, which disseminates information to shareholders with a capillary kind of
products and services, proposed to the market. Human Resource Management – E-
learning and development plan offered online,67
Compensation and remuneration
based on career development, Web based sharing and collaboration, Reports online
and time and expenses, and a Human resource web tool. Technology Development –
Web based collaboration for developing products across departments and locations.
Monster is focused on Research & Development and releases matching software
curricula with job positions. Procurement: Automated Software solution for
Suppliers, which controls corporate purchases and inventory for local branch needs.
Included is Integrated software that disseminate information for corporate and branch
offices68
.
Primary activities
There are other components of Monster’s value chain. Inbound Logistics: a
Warehouse integrated system with suppliers and collaborative departments. Annual
scheduling, internal planning and dissemination of information to suppliers.
Operations: Integrated systems, scheduling and planning, contract suppliers and
external consultants, Real time updating for sales and related channels. Outbound
Logistics: Terms and Agreements for customers and Service Level Agreements69
,
automated transactions between sales and customers, Customer queries transaction,
Information Technology integrated system for monitoring all activities online from
end customers and consumers. Marketing and Sales: Online and off-line sales
66
Ibid
67
—. Job Details. n.d. <https://monsterhires.mua.hrdepartment.com/hr/ats/Posting/view/14445>. 13
April 2013.
68
69
Johnston, Graham Clark and Robert. Robert Johnston. Edinburgh : Prentice Hall, 2008. 3rd Edition
Print.

21
channels, Order and quote entry online, Advertising package configuration and
specific customization offer, Web trafficking analyses, advertising metrics70
, payment
conditions (See Financial Analysis) and user interface. After-Sales Service: Survey,
feedbacks, claims, billing invoices, payment collections (See Financial Analysis),
Service Quality and customer satisfaction and experience – Matrix updated and shared
with all channels.
CONCLUSION
The Matrix internal assessment analysis (Table C) provided a weighted score of 2.65,
including all internal factors, taking into consideration strengths and weaknesses71
.
The result shows that Monster needs to improve internally since it is weak compared
to its competitors and in bringing value to consumers and customers. The IFE Matrix
methodology is weighted on each of internal factors and scored based on the present
analysis. Each factor has been weighted for its importance to the sector and success of
the company long-term72
. The present analysis is an independent one, not substituting
other internal company assessment analyses. However, it would be considered as an
independent opinion and tool based on improvement. Since the score result is higher
than 2.5, it would not rank the company weak internally and confirm that Monster is
still strong internally. Table C Internal Factors
70
71
13th. Book.
72
Ibid

22
II. FINANCIAL ANALYSIS
James M. Langrock CFO and Iannuzzi Salvatore CEO are responsible for all financial
data and overall company measurement to the stakeholders. The stakeholders as
shareholders are as follows: Accounting Consulting Firm, U.S. Security and Exchange
Commission (SEC), National Association of Securities Dealers Automated Quoted
System (NASDAQ), EDGAR online information, Government (Delaware State, U.S.
and the rest of the world where (Monster) foreign locations are located73
. In the
following section, some important issues that influenced the management vision and
turnover during the last decade are examined and analyzed. In addition, it considers
financial companies’ data and vertical-horizontal analysis with a dedicated section for
ratios analysis that is used for supporting the strategic alternatives addressed in this
paper.
Monster was founded in 1967 and was incorporated in Delaware becoming a public
company in 1996. By the Delaware law, the company’s benefitted from taxation and
anti-takeover provisions that discourage potential acquisition offers74
and other
limitations connected to stock price. Because of the certificate of incorporation and
type of legal entity, the Board of directors has to authorize any sort of share activity.
This law entity allowed the company to win the trial vs. Mr. Myron Olesnyckyj who
was terminated in 2006 as VP and General Consul and Secretary for “cause” (See
Section Executives and Staff). His dismissal is related to the fact that Mr. Olesnyckyj
did not ask any consensus from the Board of Directors regarding share activity that
would prevent any sort of loss to the company. The founding structure of the company
prevents and avoids any stock activity that would destroy the company’s longevity by
aggressive takeovers. Monster, in May 2009, agreed to their citation “ without
admitting or denying wrongdoing, to pay a $2,500 penalty to the United States
Securities and Exchange Commission to settle claims arising out of the SEC’s inquiry
into the Company’s historical stock option granting practices” (Citation from Annual
Report 201175
).
73
Monster World Wide Inc. February 2013. 2 March 2013. <http://www.about-
monster.com/content/monster-worldwide-reports-fourth-quarter-and-full-year-2012-results>.
74
75

23
The above information related the SEC might influence as well any stock employee
plan for upcoming years and any investors’ decision. Definitely, the company has
been influenced negatively from Mr. Olesnyckyj situation and need to reconsider any
stock plan for executive officers and employees to avoid any further damage to the
company by applying strong internal policies (for example, the clawback policy76
) for
selecting employees and rewarding them. As in the above case, the company had to
review the financial cash flow and fortunately, Mr. Olesnyckyj was terminated “for
cause”. Kaplaro and Norton (Balanced Scorecard) say, explicitly, how to link
financial rewards to executive performance splitting it 60% based on weighted
financial indicators as on return on capital, profitability, cash flow and operating
costs. The remaining 40% is measured based on other indicators as customer
satisfaction, employee satisfaction and environment responsibility. This financial
analysis reviews the company’s links to financial and non-financial measures of the
top management annual performance review and how it reflects on the vision of the
company77
. Up to now, the company has had a limited stock options plan subsequent
the 2008 issue.
1. REVENUE
In the Note of the Financial Statement, the company establishes and accepts
accounting methods generally accepted in the United States, known as GAAP (See
Appendix A.2 Income Statement). As already mentioned in this paper, the financial
analysis will take in consideration unaudited data in thousands.
Table II.1 Data captured from the Annual report 201378
Trended Data
Summary P&L Information FY 2010 FY 2011 FY 2012
Monster Careers 85,00 % 88,90 % % 91,40 %
Internet Advertising & Fees 15,00 % 11,10 % % 8,60 %
Revenue 100,00 % 100,00 % % 100,00 %
76
Monster Worldwide, Inc. Proxy Statement. Annual. New York, New York, 2012.
<http://ir.monster.com/phoenix.zhtml?c=110723&p=irol-reportsannual>.
77
System." Harvard Business Review n.d. 2005: 15. Reprint R0707M
78
Edgar. MONSTER WORLDWIDE, INC.: MWW (NYSE). 2013. <http://yahoo.brand.edgar-
online.com/default.aspx?companyid=3835>. 29 April 2013.

24
The above trends’ ratios from 2010 to 2012 show where the most of the company’s
revenue comes from. In 2010, the company in the Careers segment generated 85%,
which included North America and International. From 2010 to 2012, Internet
Advertising & Fees dropped down by 6.40 %, overall. That is the result from the
strategy adapted by the company that has focused on the Career segment which is
considered more profitable than Advertising and Fees.
Operations per segment
Table II.2 Data Captured from the Annual Report 201379
Operations by Reportable Segment (Detail) (USD $)
In Thousands, unless
otherwise specified
Dec. 31,
2012
%
Dec. 31,
2011
%
Dec. 31,
2010
%
Revenue
890,392 100,00% 993,644 100,00% 874,923 100,00%
Careers – North
America
Revenue
462,962 52,00% 485,356 48,85% 422,193 48,25%
Careers – International
Revenue 351,130 39,44% 398,408 40,10% 321,588 36,76%
Internet Advertising &
Fees
Revenue 76,300 8,57% 109,880 11,06% 131,142 14,99%
The above ratios indicate the Revenue segments break down in three groups and how
each individual segment influences revenue turnover overall from 2012 until now.
The data show, as well, horizontal ratios compared per years end December 31, 2010,
2011 and 2012. The North America Careers segment shows a slight increased from
48.12% to 52%. However, the total amount had increased significantly in 2011 from
2010, 14.96%, then dramatically dropping down -4.61%. Overall, the segment has
seen a positive trend from 2010. The International Careers (all other countries
excluding North America) has shown a slight trend moving above 40% in 2011 then
going down again. The revenue ratio was almost the same from 2010 to 2012. The
Internet Advertising & Fees, the only segment that is not divided per country,
indicates from 2010 to 2012 a dramatic fall from 14.99% to 8.57%. Moreover, the
total amount has decreased from 131,142 USD in 2010 to 76,300 USD (in thousands).
79

25
As described in Table II.3, the total revenue was assessed in 2012 from 2010 with a
slight improvement in a total amount of 15,469 USD (in thousands) + 1.77%. If so, it
must be taken into consideration that the Internet Advertising & Fees segment has
dramatically dropped by 41.82% since 2010. In December 31, 2011 and 2012, the
Advertising & Fees revenue dropped by 16.21% and 30.56% respectively. The
negative trend can cause further instability in reaching set goals and redesigning
short-term strategy. Another negative impact on the revenue will push top
management to reallocate more cash flow to cover operating costs since Monster will
have a problem in financing its operating costs. These operating costs will be
examined in the next section.
(USD in thousands)
Revenue (2012-2010)
Amount Increased
(decreased)
% Increased
(decreased)
Revenue 15,469 1,77%
Careers – North America 40,769 9,66%
Careers – International 29,542 9,19%
Internet Advertising & Fees -54,842 -41,82%
Total 15,469 1,77%
Operations per segment
The operations per segment and operating profit margin show how the company
profitability of each segment changes overtime and how much revenue is able to
convert to operations income81
. The most relevant operating profit margin ratio that
shows improvement is, contrary to the precedent ratio, the Internet Advertising and
Fees with end year December 31, 2012. The operating profit margin is 26%. Monster
makes one dollar of revenue and converts 0,26 USD in operations income that is
really better compared to 2011 for 0,047 and reconstructuring charges related to
change to in certain activities. The other operating margins, the Careers North-
America and International, are decreasing and approximately 50% of International is
influenced by discontinued operations in China, Latin America and Turkey.
80
81
13th. Book.

26
Table II.4 Data Captured from the 8-K Form 201382
(USD in thousands)
2. COST
It is important to consider Break Even Point (BE) in terms of total revenue (numbers
of products and services to be sold) as equaling its total costs83
. Based on BE an
increase of fixed costs raises the numbers of products and services sold significantly.
As shown in Table II.4, Monster has Fixed costs – salary, marketing and offices – that
make up 82.1% of the total revenue in 2012. During the past three years the company
has made a significant impact in the total fixed costs from 89.7% to 82.1% in 2010
and 2012. A 6.6% reduction had a major impact on salary and related categories that
dropped from 417,293 USD to 380,131 USD - 5% less. In 2012, the company fired
approximately 1,200 employees in 201284
. Layoffs at Monster happened in January
and December 2012 for 400 and 800 employees respectively for reconstructing
reasons. The most recent change resulted in 800 fired employees and discontinued
operations, net of tax, $316,9 million and includes $8 million of shut-down costs in
Turkey, Latin America and China. From 2010, employees were reduced to 639 –
13.67% less 5% in real salary cost. Revenue annualized per average employee shows
the gain from $191,8 to 203,8 in 2010 and 2012 - 6.26% of the increment. The
analysis shows the dismissal cost of company employees exceeded company
generated revenue. Given this fact, the change in the total revenue of 1.77% - from
2010 to 2012 – does not equal the increase of the annualized revenue per average
employee per 6.26%. However, it shows the company effort to keep costs controlled.
82
83
13th. Book.
84
John Zappe. Layoffs At Monster Worldwide. 5 December 2012.
<http://www.ere.net/2012/12/05/layoffs-at-monster-worldwide/>. 28 April 2013.

27
The Annual Wage report considers that wages were adjusted for inflation by 1.2% in
2011, down from 2.1% in 201085
. Productivity and wages is a topic that should be
addressed in this analysis, as reported in the Annual Wage report. 86
In 2011,
productivity increased contrary to the average wages in developed countries with the
gap between those being enlarged and requiring more productivity at cheaper labor
costs. This factor has impact on the demand and all voices related to the recruiting
process. Monster as an employment solution company suffers demands from their
client and as an employer demands for raising salary wages. The company market
development strategy in the new emerging market as in China, Turkey and Latin
America has shown a huge impact in wages, since the wage average has been
increasing in Eastern Europe, Latin America and Asia more than 5% per year. In
addition, these economic factors were not taken in consideration during the decision
making process to penetrate these markets in 2010, as reported in the Annual Report
201187
. Table II.4 Data Captured from the Annual Report 201388
(USD in thousands)
In conclusion, the analysis shows that fixed costs are 86.6% of total revenue and the
company needs to sell more products and services instead of reaching the breakeven
point with a higher fixed cost. For example, companies such as Amazon, Apple and
LinkedIn have lower fixed costs that evolve into a lower break-even point and in a
down economy yields great advantages.89
.
85
86
Ibid
87
88
89

28
3. CASH FLOW
P.Andrew and L.Sirkin identify three different categories on how to be innovative for
cash90
. Based on the category mentioned in this paper, Monster is identified as an
integration approach to be taken. Selecting the wrong approach, the company wastes
and destroys all efforts made and even becomes too expensive and slow to respond to
the market also. Monster can be identified in one of the above three categories
mentioned by Andrew and Sirkin91
as an integrator. What is an integrator supposed to
do? An integrator has a strong market position and controls all chain, from product
development to sales. Therefore, the company needs to be skilled and innovative in all
these fields, if not, it can fail. The integration approach is more slow to adapt to the
market and be innovative at the same time; with an integrated approach all key
departments cooperate and develop a unique plan for the common goal. This approach
requires upfront high investment in Research & Development and in all other
departments as well. Based on the following analysis this paper will clarify strategic
alternatives for the right approach to continue to be attractive to customers.
Free Cash Flow92
is the company’s ability strength to generate positive cash after
investing in assets. The following analysis will cover only the relevant data shown by
the calculations made and important findings to be mentioned later. Monster closed
the year 2012, with $6,245 that has decreased by 94,104 USD (in thousands) from
2011. Net cash provided by operating activities on continued operations and net cash
used per discontinued operations have influenced free cash flow negatively by 67,450
and 28,900 USD. Summing up, the total is 96,350 USD less in 2012 from 2011. The
result shows the company’s difficulties to generate net cash from continued operations
financing its assets in the short-term which might cause further amendments in the
company’s credit line. The net cash provided by operating activities decreased by
96,350 USD from 2011 to 2012 with a consequent negative impact on the company’s
cash and cash equivalents equaling 102,132 USD (in thousands) in reduction by the
end period. If this negative trend is not managed in time, Monster will suffer a short-
term cash shortage in 2012 but that in the long-term will increase the credit line. The
90
James P. Andrew and Harold L. Sirkin. "Innovating for Cash." Harvard Business Review September
2003. Print 4945.
91
Ibid
92
Richard Brealey et al. Principles of Corporate Finance. New York: McGraw-Hill, 2010. Print.

29
credit line will affect key financing and investing activities regarding future success
and business continuity93
.
(USD in thousands)
USD (in thousands)
FY 2010 FY 2011 FY 2012
Increase
(Decrease)
Increase
(Decrease)
Net cash provided by operating activities 93,072 149,677 53,327 56,605 -96,350
Cash and cash equivalents, beginning of period
275,447 163,169 250,317 -112,278 87,148
Cash and cash equivalents, end of period 163,169 250,317 148,185 87,148 -102,132
Free cash flow : 0 0
Net cash provided by operating activities of continuing
operations 106,939 163,608 96,158 56,669 -67,450
Net cash (used by) provided by operating activities of
discontinued operations -13,867 -13,931 -42,831 -0,064 -28,900
Less: Capital expenditures -57,126 -61,818 -59,572 -4,692 2,246
Free cash flow 35,946 87,859 -6,245 51,913 -94,104
The net cash used for financing activities increased significantly by 103,943 USD
from 2012 from 2011. Payment on borrowings on term loans increased by 43,750
USD from 2011to 2012. Payment on borrowing on credit facilities shows an increased
amount of 261,208 USD in 2012 and 290,209 USD from 2010 (See Appendix A.3
Cash Flow). Raising payment on borrowings means that the company relies on the
credit line to satisfy cash shortage95
and creditors such as banks and private funds.
During the last couple of years, the commission board has approved repurchasing of
common stock from the market for 107,584 USD in total. Stock buybacks is a
management approach used for several diverse reasons by companies96
, but Monster
did so for protection against any hostile takeovers by competitors. When there are less
outstanding shares in the public market, it is more difficult to take over the company
in financial trouble. The other advantage for buybacks is that decreasing the number
of outstanding shares is more attractive. Earnings are the same but Price earnings ratio
(PE), earning per share (EPS), return on asset (ROA) and Return on Equity (ROE)97
increase due to less outstanding shares and cash as part of the asset that has been
93
94
95
Federal Reserve Bank of San Francisco. "Empirical Analysis of Corporate Credit Lines." 2007.
frbsf.org. <http://www.frbsf.org/publications/economics/papers/2007/wp07-14bk.pdf>. 5 May
2013.
96
Gustavo Grullon and David L. Ikenberry. "What do we know about stock repurchases?" Journal of
Applied Corporate Finance (2000): Pages 31–51. Print.
97

30
decreased98
. Stock buybacks are a powerful tool for increasing performance of the
company in an economic downturn and look better to shareholders.
(USD in thousands)
USD (in thousands)
FY 2010 FY 2011 FY 2012
Increase
(Decrease)
Increase
(Decrease)
Cash flows provided by (used for) financing activities:
Proceeds from borrowings on credit facilities 90,000 108,722 224,718 18,722 115,996
Payments on borrowings on credit facilities -15,500 -44,501 -305,709 -29,001 -261,208
Proceed from the borrowings on term loan — — 100 0 100
Payments on borrowings on term loan — — -43,750 0 -43,750
Tax withholdings related to net share …
-14,227 -17,139 -8,482 -2,912 8,657
Repurchase of common stock 0 -41,973 -65,611 -41,973 -23,638
Proceeds from the exercise of employee stock options
300 23 23 -277 0
Net cash provided by (used for) financing activities 60,573 5,132 -98,811 -55,441 -103,943
4. BALANCE SHEET
The analysis of the data in the balance sheet was made using horizontal analysis. The
analysis compares data from the fiscal year ended December 31, 2012 vs. December
31, 2011 and December 31, 2011 vs. December 31, 2010 and only relevant data
shown and critique with only appropriate comments (See Appendix A.1 Balance
Sheet100
).
Cash, as already mentioned in the previous section, has been used to cover actual
operating activities and to buy back stock. The management approach has caused a
decrease in cash available to finance short-term obligations. Cash decreased by
102,132 USD in end year December 31, 2012 vs. 2011. The strategy decreased the
short-term debt in 2012 to 170,572 and lengthened the payment period for long-term
debt so the leverage could payoff short-term debt with actual cash. Long-term debt,
consequently, increased from 2011 to 2012 by 145,975. Goodwill 101
became
impaired so Monster needed to record a significant change during the period 2012.
Goodwill decreased by 244,890 USD which determined a charge to the earnings for
258,720 USD (See further details in the Q42012 Financial Supplement, Monster). As
of December 31, 2012, goodwill and amortizable intangible assets were $919,854
98
Ibid
99
100
Nasdaq Inc. MWW Company Financials. 15 March 2013. <http://goo.gl/k7bJe>. 25 April 2013.
101

31
million, which represented 55% of the total consolidated assets (60% in 2010). The
decrease of the value was equal to 5% from 2010102
.
(USD in thousands)
5. RATIOS ANALYSIS
The ratio analysis (see Appendix A.4 Ratios) takes in consideration Liquidity,
Profitability, Leverage, Activity, Growth and selected financial ratios from Monster.
The Liquidity ratios confirm that the company is having difficulty meeting short-term
obligation since the ratio is 0.99 and Monster might need further credit. The operating
margin shows 4% as the remaining tax to pay as well as other indirect (interest,
property, etc.) and other variable costs.104
The operating margin has been reflected by
reconstruction costs occurred by shutting down businesses in China, Turkey and Latin
America. As mentioned in the earlier section, Monster recently has increased the
long-term debt that shows the proportion of equity used for financing total debt per
91.45% - Long-Term debt-To Equity Ratio- that means the debt is reaching of the
company’s equity. The Ratio shows that the company now is in good financial status
and it can be considered for investing. The company is investing and it is not at any
serious risk until ratio doubles up to 200%. The Activity ratios analysis shows Fixed
Asset Turnover as 60% in 2012 and shows the ability of Monster to generate sales
from fixed assets. In 2011, the Fixed Asset turnover ratio was higher than 65% when
102
H. Kaner. A New Theory Of Goodwill . London: Ford. Press, 2007. Print.
103
104

32
the company had more ability to use fixed-assets to generate revenue. Account
Receivable Turnover Ratios is measuring how efficiently the company uses its
assets105
and during the last three years, the company from 2.40 in 2010 dipped to
1.95 in 2012. The ratios show that the company increased the time for collection and
it is necessary to review its credit policies in order to improve the ratios. The
difficulty of the company to collect its credit has been increased by 20% and it is
driven as well by liquidity risks106
. GoldmanSachs, in its recent guide for investors,
says that the global credit crisis could worsen the short-term company liquidity and its
effect to reduce the liquidity capacity to meet short-term debt. The Daily Sales
Outstanding ratio (DSO) confirms that the company has had difficulty collecting from
its customer since in 2011 when the ratios were 0.95 and reached as 1.03 in 2012. The
ratios clearly show that the collection period has been increasing. The ratios show that
the company might decrease its current liquidity capacity to meet its current debts and
so increase long-term debt. A slight change in the 107
credit policy might encourage an
improvement in the collection and increase the DSO ratio.
A. CHANGE OVER TIME
The ratios below identify a growth sale and earnings per share (EPS) that decreased in
2012 compared to five years ago. The company has suffered aggressive
competition108
and wrong strategic decision-making109
. EPS has dramatically dropped
from 48.38% made three years earlier to -4,27% and the result has influenced
investors recently.
105
Ibid
106
The Goldman, Sachs & Co. "An Explanation of Short-Term Credit and Liquidity Risk Measures."
2010. goldmansachs.com.
<http://www.goldmansachs.com/gsam/docs/funds/investor_education/investor_education/ei-
224_short-term_credit_and_liquidity.pdf>. 5 May 2013.
107
CFO Selections, LLC. Establishing an Appropriate Credit Policy. n.d December 2004.
<http://www.cfoselections.com/cfos/desk/detail/19/establishing-an-appropriate-credit-policy>.
1 May 2013.
108
http://www.forbes.com/sites/joshbersin/2012/02/12/linkedin-is-disrupting-the-corporate-recruiting-
market/. 15 April 2013.
109
Lisa Rapaport and Danielle Kucera. Monster Falls as Sale Process Continues Without Buyer. 7
February 2013. <http://goo.gl/BAOjf>. 15 April 2013.

33
Table II.5 Data Captured from Reuters110
2012 3 Years 5 Years
Sales %
-10.39 -0.55 -7.63
EPS % -4.27 48.38 -14.97
B. INDUSTRY AND COMPETITORS COMPARED
Based on the table below, Monster generally has lower ratios per growth rates,
financial strength and profitability compared to the related Industry and Sector. The
results show a different perspective if it is taken from the ratios of previous years
when Monster had better performance compared to the industry and sector related.
Staff efficiency is lower compared to the industry peers where each employee
generates 178 USD compared to the industry where each employee generates 27,764
USD (in thousands). In contraposition, management effectiveness has evolved into
positive ratios as related to industry, yet has been less efficient compared to other
industrial ratios. Therefore, management has space for improvement and employee
efficiency has to be reviewed and make dramatic change111
.
Table II.6 Data Captured from Reuters112
VALUATION
RATIOS Company Industry Sector
P/E Ratio (TTM) 8,82 20,68 24,89
P/E High – Last 5
Yrs.
111,40 21,66 59,47
P/E Low – Last 5
Yrs.
11,01 614,00 12,16
Beta 2,18 0,80 0,99
GROWTH
RATES
Sales (MRQ) vs
Qtr. 1 Yr. Ago
-10.03 7,49 3,77
FINANCIAL
STRENGTH
Current Ratio
(MRQ)
0,99 2,89 1,74
LT Debt to Equity
(MRQ)
0,71 4,08 61,36
PROFITABILITY
RATIOS
Gross Margin
(TTM)
2,26 30.86 0,89
Gross Margin – 5
Yr. Avg.
53.67 1,03 26.61
110
Thomson Reuters. Monster Worldwide Inc (MWW.N). 2013.
<http://www.reuters.com/finance/stocks/financialHighlights?symbol=MWW.N>. 15 April
2013.
111
112
<http://www.reuters.com/finance/stocks/financialHighlights?symbol=MWW.N>. 15 April 2013.

34
EFFICIENCY
Revenue/Employee
(TTM)
178,08 27,764,504 30,685,429
Net
Income/Employee
(TTM)
11,85 952,07 1,794,929
MANAGEMENT
EFFECTIVENESS
Return on Assets
(TTM)
0,14 0,35 0,13
Return on Assets –
5 Yr. Avg.
0,13 0,19 0,18
Return on
Investment (TTM)
0,24 0,52 0,19
Return on
Investment – 5 Yr.
Avg.
0,18 0,31 0,27
Return on Equity
(TTM)
0,26 0,56 0,33
Return on Equity –
5 Yr. Avg.
0,20 0,36 0,38
6. STOCK PRICE
As of December 31, 2012 the Monster stock share price closed at 5,62 USD and as of
April 5, 2013 it closed at 4,51 USD per share with a 20% drop in price. Monster and
Linkedin had the same stock market price in June 20, 2011. Initially, Monster
increased the stock market price but now the tendency has been changing to where
Linkedin drives the next positive curve of the market leadership position. Linkedin
has increased its stock market price by 75% but Monster has dropped by 50%.
Chart II.7 Data Captured from Reuters113
- Monster and Linkedin Stock Market Price
Share– from July 2011to April 2013.
113
<http://www.reuters.com/finance/stocks/financialHighlights?symbol=MWW.N>. 15 April 2013.

35
7. CONCLUSION
The summary of the financial analysis brings to the conclusion that Monster has a big
challenge to improve its ratios and to generate revenue related to employee efficiency.
The leadership hold for the past years by Monster has been taken over by Linkedin
and its competitors. However, the economic crisis 2007/2008 negatively affected its
financial ratios. Linkedin closed the end period of 2012 with the following main
ratios: Growth rates 81%, Current Ratio 2.45% and Operating Margin 5.85%.
Afterwards, this paper will analyze the better strategy to compete with the competitors
to continue to be profitable and be the leader for next upcoming years114
. The strategic
alternative will consider the financial analysis as a main key driver for making the
best strategic management decision.
III. EXERNAL ASSESSMENT
Freud115
says, “No forecast is perfect, and some forecasts are even widely inaccurate”.
This paper will confirm that statement and try to forecast external factors using such a
tool as PLEESTIC, EFE Matrix, Porter’s Five Forces, and Competitive Profile Matrix.
This paper will not consider the quantitative forecasts because it is expected that the
key variables will remain the same. In this research, it shows that the variables have
been changing and the following section will examine the relative areas forecasted.
PLEESTIC ANALYSIS
POLITICAL
The current political uncertainty116
and economic growth are seriously interconnected.
Political instability damages the market and the inclination to invest even a dollar.
Recently, Greece117
and Cyprus118
have been living in a period of instability of
government collapse from 2012 until now. Both countries need to cover huge debts
and they have decided to raise taxes to recover their deficit. Political uncertainty leads
114
Thomson Reuters. LinkedIn Corp (LNKD.N). 2013.
<http://www.reuters.com/finance/stocks/financialHighlights?symbol=LNKD.N>. 18 05 2013.
115
David, Freud R. Strategic management: concepts and cases. New Jersey: Pearson Education Inc.,
Ed. 13th. Book.
116
Swagel, Phillip et al. Political Instability and Economic Growth. Working Paper No. 4173 .
Cambridge, MA: National Bureau of Economic Research, 1992. <http://nrs.harvard.edu/urn-
3:HUL.InstRepos:4553024>. 10 April 2013.
117
BBC. Eurozone crisis explained. 27 November 2012. <http://www.bbc.co.uk/news/business-
13798000>. 18 April 2013.
118
Elena Becatoros and Melaos Hadjicostis. Cyprus Seeks Alternative Solution to Debt Crisis. 20
March 2013. <http://goo.gl/b5BV5>. 14 April 2013.

36
international companies to review their strategies and determine if it is necessary to
shut down operations and leave the country. This uncertainty is unpredictable in the
short term but the evaluation of political situations might be able to be made in
advance and allocate resources for growth opportunity. The authors say that there is a
correlation between collapsed government and economic growth and if Monster wants
to grow in any country, it needs to evaluate and make strategic plans for specific
countries. The political situation, after the economic crisis in 2008/2009, has divided
the actors into different areas: the United States, the United Kingdom, Europe, Russia,
China, India, Brazil and the rest of the world. Monster has good standing in the U.K
since it offers employment solution services to the government with increased revenue
in the double digits119
. The relationship with the British government is crucial as well
as with any other party that it will be in charge of in the future. Monster also has
specific products and a web site for a veteran’s project where they support private and
public sector recruitment for military veterans solely dedicated for the American
market. Monster generates roughly 52% of its revenue in the U.S market and makes
an effort to maintain a good relationship with all parties since it is an American entity.
LEGAL
The legal external factor can have an impact on the business of the company120
considering international threats, local and regulatory agencies. Online business hides
serious threats for privacy laws, labor market laws, patents and tax laws, federal and
state laws. There are international organizations such as the European Union, the
United States and other countries that have established numerous legal
enforcements121
. The remaining legal enforcement is taken by each sector and
jurisdiction related to a specific country. Even in the globalization era, external
international forces regarding specific laws give rights and protections to the company
so as not to constitute a serious business risk. The most important of Monster’s legal
forces are intellectual property, tax law, labor market law, antitrust regulation, and
policy privacy markers and stock market.
119
Monster Worldwide Inc. Monster Annual Report 2011. 10-K. New York, New York: Monster, 2011
120
Ed. 13th. Book.
121
Brian A. Reaves. Census of State and Local Law Enforcement Agencies, 2008. Bulletin. n.d: U.S.
The Bureau Of Justice Statistics, 2011. <http://bjs.gov/content/pub/pdf/csllea08.pdf>.

37
ENVIRONMENT
Contingency theory is management’s way of reacting to external environment
situations. Fiedler, in the contingency model of leadership, 122
emphasizes the
importance of altering management’s capability under stressful situations in order to
capitalize on the company’s leadership strengths. Monster management’s capability is
to focus on facing new, external environment challenges and as result monitor group
effectiveness. The company now faces the most crucial moment of its inception since
the external environment has more obstacles and threats compared to the successful
time period of its growth. Management has to be focused on the external issues but at
the same time leading the organization to effectiveness. Monster is best suited to
certain and stable tasks environment.
ECONOMIC
Politics and economics 123
are interconnected as mentioned in the section – Politic –
as was seen when the economic crisis of 2007/2008 was renamed as “confidence
crisis”124
. The European Central Banks’s research says, “…that businesses and
consumers have been affected by optimism and pessimistic waves. The sentiment is
the forecast for future economic developments”. These optimistic and pessimistic
waves determined how business cycles could be affected by any actual negative
trend. The conclusion of this paper is that the pessimism with uncertainty make the
company retreat from investing any funds and allocating costs to disinvest. Another
point of view to be considered is from the World Economic Outlook in 10/2012 which
declared, “For the first time developing countries and emerging countries have
performed better that developed countries as measured by time spent in expansion.
These economies are doing better for the heavily indebted poor countries initiatives125
(Debt forgiveness Initiatives) and better policy makers”. As this paper mentioned,
developed countries could experience an economic downturn because of banking
122
Fiedler, F.E. (1967) A Theory of Leadership Effectiveness, New York: McGraw-Hill
123
Swagel, Phillip et al. Political Instability and Economic Growth. Working Paper No. 4173 .
Cambridge, MA: National Bureau of Economic Research, 1992. <http://nrs.harvard.edu/urn-
3:HUL.InstRepos:4553024>. 10 April 2013.
124
European Central Bank. "Confidnce indicators and Economic Development." Monthly Bulletin n.d.
January 2013: Pag.1. <http://goo.gl/gZWfv>.
125
Caritas International and CIDSE. The Highly Indebted Poor Countries Debt Forgiveness Initiative.
n.d. <http://goo.gl/YOzvQ>. 27 April 2013.

38
tensions and continuing fiscal sovereignty in Europe and the fiscal cliff in the United
States. A fiscal cliff puts the brakes on growth126
.
The International Labor Organization has monitored wages for 2012/2013 and
reported, “Crisis continues to dampen wages, and consequently the gap between
productivity and compensation has been increasing. From 2010 to 2011 wage salary
growth 127
was almost double in Asia and Eastern Europe, while in developed
countries it was approximately 5%. The wages schemes clarify the trend to increase
personnel performance and reduce wages. Monster has an actual presence and
revenue stream generated from developed countries, which are needed to increase and
maximize performance and revenue per employee (See Financial Analysis).
SOCIAL-CULTURAL
Monster is socially embedded in the society, which is situated in a cultural context128
.
To analyze the social-cultural framework it is essential to anticipate and avoid any
cultural misunderstandings in different cultures. Monster is present in approximately
55 countries and each one represents different national cultures, values and norms.
Hofstede’s model of National Culture129
lists which dimension the national cultures
can be classified according to Individualism vs. Collectivism, Power Distance,
Achievement vs. Nurturing orientation, Long-term vs. Short-term Orientation, and
Uncertainty Avoidance. The model says that one cultural approach followed in one
country does not necessary work in another one. Where Monster applies an
individualistic approach, as for example in the United States, it will not work in Asia
where collectivism is seen a personal contributions to the goals of the group.
Customer needs are the drivers for the company’s decision130
and leads motivation for
entering emerging as well as developed markets. Marcotte et al. say that customers are
not always the same. Where a strategy is successful in one country, it can be different
in another one, with most differences being between developed and developing
126
The Wall Street Journal. WSJ Editors' Picks -- Fiscal Cliff Affects Returns. 16 April 2013.
<http://goo.gl/u5wFy>. 28 April 2013.
127
128
Hofstede G (2001) Culture’s Consequences: Comparing Values, Behaviors, Institutions and
Organizations across Nations, 2nd ed. Thousand Oaks, CA: SAGE.
129
Hofstede G (1980) Culture’s Consequences: International Differences in Work-related Values.
Beverly Hills, CA: SAGE.
130
Let Emerging Market Customers Be Your Teachers by Guillermo D’Andrea, David Marcotte, and
Gwen Dixon Morrison

39
countries. So taking into consideration the customer as social-cultural path, Monster
has to adapt them to their strategy. Since Monster has not succeeded internationally in
new countries such as China, Turkey and Latin America, the company has had to
identify specific strategies to understand customer needs.
TECHNOLOGICAL
The internet has changed peoples’ life styles131
. The annual social media report by
Nielsen and NM Incite contains relevant data to be considered. The total times spent
in the U.S using social media is up 20%132
, mobile web use is reaching 82% and
mobile app usage is up 85%. Social networks dominate internet usage and Facebook
is number one in social media, followed by Twitter, Pinterest, Google+, Myspace and
Linkedin. Twenty six percent of people are more likely to pay attention to promotions
advertised by one of their connections or sent to them by their friends. The way
companies innovate and provide customer service has been changed in the last
decade133
. Nowadays buyers communicate via social media and submitting tickets
online. The Internet is altering economies of scale, breaking down barriers for new
entry and defining a new supply chain. Concurrently, new opportunities and threats
are presented in the markets for companies such as Monster that build their customer
value based on brand awareness and market job experience delivered to customers
and consumers by sales and research expertise. Technology is not anymore an only
asset of the company but rather embraces the company business model and maximize
customer experience exceeding expectations by integrating business and social media
into one. The speed of altering life cycles of products and services has been
continuously changing and pushing other traditional businesses to adapt to this pace.
Monster’s executive officers have to quickly respond to these needs and change
customer behavior in how customers use technology.
INTERNATIONAL
Subhash Jain says, “Global economy drives standardization of marketing strategy in
the way of using a common product, service, price, distribution and promotion
131
Ed. 13th. Book.
132
The Nielsen Company. State of The Media: The Social Media Report 2012. 12 April 2012.
<http://goo.gl/lxFYk>. 27 April 2013.
133
Kalypso L.P. "Social Media and Product Innovation." n.d 2013. kalypso.com.
<http://goo.gl/FXjE2>. 26 April 2013.

40
program on a worldwide basis”134
. Monster has failed to standardize its products,
services and prices internationally135
. Across the boards Monster sales departments in
Europe do not offer the same product solution as in the United States. For example,
Monster Power Resume Search® product is offered only for customers in North
America, France and the United Kingdom. “Thinking globally, acting locally” is the
operative phrase to indicate that there is only one global strategy applied to the
company. The main decisions are made per each single state or country. The only
unique marketing strategy that can help Monster regain customer expectation will be
identified in the strategic alternatives section136
.
COMPETITION
The competitive analysis – Porter’s Five Forces Model – can be used to develop
alternative strategies considered competitive in the related industry: Internet137
.
Rivalry among Competing Firms: Competitive advantage is considered one the most
important for Monster over its rivals. Brand awareness and continued market
experience is not enough anymore to maintain the market share because rivalry has
increased since it is easy to enter the market and for consumers to switch products.
Monster has higher costs and more product offered beyond the competitors. The
aspects of the products have been mentioned in the Technology section. Freud
analyzes that the relevant aspect of numerous acquisitions in the internet market
happened because of new technology successful start-ups. Therefore, Monster’s actual
strategy weaknesses are a reaction to the rivals intensifying marketing efforts and
production to maximize on the opportunity. Potential Entry of New Competitors: the
threat of new competitors entering in the online business domain is higher since
technology, internet free barriers and the global economy intensifying competition.
Moreover, competitors are allowed to enter the markets and compete vs. Monster
since they can offer at a lower price138
, differentiate distribution channels and be
innovative on a large scale. Monster can counterattack by adding features, lowering
134
Jain, Subhash C. "Standardization of International Marketing Strategy: Some Research Hypotheses."
Journal of Marketing (1989): pp. 70-79. Print.
135
Benedova, Gabriela from Monster Sales Department. "Re: Job advertisitn in CZ, IT, USA, UK,
Romania, India". Praha, 22 February 2013. Email.
136
Michael E. Porter. "The Five Competitive Forces That Shape Strategy." Harvard Business Review
n.d January 2008. Reprint R0801E.
137
Ed. 13th. Book.
138
Ibid

41
prices, increasing premium accounts, adding value to the chain and others strategies
that will be considered in the related section (See Strategic Alternatives). Potential
Development of Substitute Products: Internet propagation on a large scale and its
integration in online business has decreased customer retention and introduced
substitute products to the traditional Monster ones. Competition rises and lowers
prices making it difficult for Monster to react promptly and change its business model
(See Appendix B.4 Five Forces). Bargaining Power of Suppliers and Consumers: The
internet has changed the way in which companies deliver products and services to the
consumers and how suppliers reach their target. Monster has been intervening in the
distribution channel allowing suppliers to reach their end user. Current trends promote
reduction in leveraging Monster to reach end users. Recruiters and employers can
create their brand image through Linkedin139
directly reaching job seekers without any
intervention by Monster as an intermediary.
CONCLUSION
The industry analysis summarizes and evaluates PLEESTIC and competitive
information. The average total weighted score of External Factor Evaluation Matrix
(See Table II EFE MATRIX) is 2.0. Freud says,140
“A total weighted score of 2.0
indicates that Monster is not responding in an outstanding way to existing
opportunities in its industry. And the company is not fully capitalizing on
opportunities or avoiding external threats.” Note that the most important factors to
being successful in this business are: Social Media in use and Competition by 0,30
weight each one.” Both factors are driven by new social trends and new competitors’
new substitute products. This significant score shows where Monster needs to
capitalize opportunities and avoid external threats. The Competitive Profile Matrix
score, in which Monster is confirmed as a field leader per EFE matrix, indicates the
lowest score of 2.65 compared to other competitors. Monster is the strongest and
Brand awareness and image (See Appendix B.3 Business Model Canvas). Numbers
are not significant in the analysis but are meaningful to understand and evaluate the
relative strengths of the firm’s strategic alternatives141
.
139
Linkedin Inc. LinkedIn Company Page. n.d. <http://marketing.linkedin.com/company-pages/>. 17
April 2013.
140
Ed. 13th. Book.
141
Ibid

42
Table III: EFE MATRIX
IV. STRATEGIC ALTERNATIVES
Focusing on long-term strategies can allow Monster to pursue its strategies142
. The
period of accomplishing long-term strategies was from two to five years. Nowadays,
Moore says,” To succeed in the long-term, focus on the middle term”143
. The phrase
has value since the internet sector has a faster product cycle than other industries.
Priority should be given in choosing strategic alternatives. This paper will present
only two simultaneous ones because more strategies are too risky to be taken144
. Top
executives share these strategies to the whole organization from top down and receive
continuous feedback as well as exchange information (See Appendix B.5 Balanced
Score Card). The actual strategy of the company focuses on marketing and advertising
with a greater effort focused on the main profitable segment revenue (Career) and
improving efficiency of internal operations. The present analysis considers the current
strategy as a weakness for the future growth of Monster for remaining as the
uncontested market leader.
142
Ed. 13th. Book.
143
Moore, Geoffrey A. "To Succeed in the Long Term, Focus on the Middle Term." Harvard Business
Review n.d 2007: 9. Reprint R0707F.
144
Ed. 13th. Book.

43
Selecting Strategies
The author has selected a series of alternative strategies and developed them in a
creative way to encourage the thought process.145
The alternative strategies proposed
will be listed and analyzed for their attractiveness. The strategy formulation is
developed in three stages: Input Stage, Matching Stage and Decision Stage. The Input
stage is covered in the previous chapters, Internal and External Assessment. The Input
stage gives the following results:
- External Factor Evaluation (EFE) Matrix weighted score is 2;
- Internal Factor Evaluation (IFE) Matrix weighted score is 2.65;
- Competitive Profile Matrix (CPM) score is 2.65.
The analysis judges the importance of each external and internal factor that will allow
it to generate and evaluate selected strategies146
. The following stage is defined as
Matching Stage. The Matching Stage consists of developing specific frameworks and
the present analysis considers these Strengths-Weaknesses-Opportunities-Threats
(SWOT) Matrix and Strategic Position and Action Evaluation (SPACE) Matrix. These
tools are developed based on the information derived from the input stage to match
external OT with internal SW.
SWOT MATRIX
The Matrix is crucial for matching four types of strategies: SO (strengths-weaknesses)
Strategies, WO (weaknesses-opportunities) Strategies, ST (strengths-threats)
Strategies and WT (weaknesses-threats)147
. SO Strategies use Monster’s strengths for
helping executive officers take advantage of opportunities148
. The relevant SO
Strategies identified are (see Table III SWOT Matrix):
 (S1,O1) The analysis suggests major investment in marketing of 20%. Freud
supports this theory saying that Monster should use this strategy alone or
combined with others instead of increasing market share for present products
or services149
. Porter says that, “The intensive strategy is not at all eliminating
145
Ibid
146
Ibid
147
Ibid
148
Ibid
149
Ibid

44
the threat of substitute products and it does not distance the company’s, in this
analysis Monster, products or services from other one”150
;
 (S1,O2) The combination of the Brand awareness of Monster with over 20
years of experience and strong brand reputation in the industry can be
capitalized on in order to develop products and technology. The pace of
technology speeds up product integration with social media platforms for
employment solutions. Technology integration in the social media influences
employers to look at the job seekers’ reputations online in combination with
scanning potential employees’ experience and knowledge. Cross-Tab’s
research says, “…That 85% of the recruiters say a positive online reputation
influences their hiring decisions151
.” Porter’s five competitive Forces
encourage companies to reshape their strategies in Monster’s favor152
. Monster
can standardize products and services so it is possible to switch to other
suppliers. The company provides a wider portfolio of products and services so
the customer cannot switch easily to competitors. The company can increase
or invest more in product development, Research & Development (R&D), in
order to differentiate from their competitors, along with offering better product
and service value to customers and awarding them with premium services.
This aforementioned strategy is one of the best in differentiating the company
amongst its competitors. This will be considered and developed in the
Decision Stage;
 (W2,O1) An identified internal weakness is the application, known as
BeKnown™, which was developed for Facebook, has reached approximately
158k likes153
. This application and the social media strategy did not lead
Monster to success until 2013. The greatest success of one of Monster
competitors, Linkedin, saw its revenue in 2012 of $304 (in thousands), rise up
150
151
Neville Hobson. Recruiters really care about your online reputation even if you don’t. 1 February
2010. <http://goo.gl/gyR4c>. 27 April 2013.
152
153
Facebook Inc. BeKnown From Monster. n.d. <https://apps.facebook.com/beknown/>. 25 April
2013.

45
from $280 expected154
. The W2 combined with the O1 in the current social
media would allow Monster to differentiate strategy via social media from the
current strategy. This strategy identified pursues the Intensive strategy through
Horizontal integration or cooperation among competitors as Joint
Venture/Partnership. This combination has been identified as one of the best
two strategies to develop in the Decision Stage;
 (S1,T1) The combination of the Brand awareness strength and the threat of
competition from Linkedin, Simplyhired, Jobvite, Careerbuilder and others
will cause Monster to increase its market share for products by 20% by
investing more in marketing efforts. Freud suggests this strategy when the
correlation between sales and marketing efforts in the past of the company has
been high155
. Moreover, these analyses of external opportunities show
potential for growth using internal strength for reducing external threat.
 (W3,T1) these factors combined show the actual defensive strategy156
of
Monster, where it has disinvested from China, Latin America and Turkey in
order to raise capital and cash to finance operations that were suffering from of
revenue fall of 10.39%. This combination shows how Monster uses defensive
strategy for reducing internal weakness (W3 Disinvestment from developing
countries) and avoids external threat from rivals (Linkedin, Simplyhired,
Careerbuilder, Jobvite, Facebook and Twitter). Disinvestiture strategy
eliminates organizations or businesses that do not fit with the organization
strategy of the company. Freud supports management action since there is a
need of cash in quick time to use for actual expenditure157
(See Financial
Analysis).
The SWOT Matrix Stage shows two potential strategies:
- (S1,O2) Price Differentiation and (W2,O1) Joint Venture/Partnership.
154
Michael Liedtke, AP. LinkedIn earnings soar above Street forecasts. 7 February 2013.
<http://goo.gl/H7tXX>. 26 April 2013.
155
Ed. 13th. Book.
156
Ibid
157
Ibid

46
Table III: SWOT Matrix
These alternative strategies will be quantitative matched and developed in the
Decision Stage using Quantitative Strategic Planning Matrix (QSPM).
SPACE MATRIX
The strategic position and action evaluation, known as SPACE MATRIX, is part of
the matching stage included in this strategic analysis paper to evaluate which
framework better applies to the company158
. The four-quadrant framework indicates
two internal dimensions (financial position –FP – and competitive position – CP) and
two external dimensions (stability position –SP – and industry position – IP)159
.
Factors that are included in the analysis have been ranked in the (See Appendix A.5
SPACE Matrix) respective table and provide the following score:
Conclusion
SP Average is -12.0 ÷ 3 = -4 - IP Average is +14.0 ÷ 3 = 4.67
CP Average is -7.0 ÷ 3 = -2.33 - FP Average is +9 ÷ 4 = 2.25
Directional Vector Coordinates:
x-axis: -3,67 + (+4.67) = +1
y-axis: -4 + (+2.25) = -1.75
These score results have been plotted on X and Y-axes and the directional drawing
vector reveals that Monster should pursue competitive strategy. The competitive
strategy chosen by the matrix says that Monster is surviving fairly well in an unstable
internet industry segment. Monster’s strategic alternative in 2013 is to be conservative
showing that the company should minimize internal weaknesses and avoid external
158
Ed. 13th. Book.
159
Ibid

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