Developing a Compensation System for e-sonic: Strategic Analysis

This report sheds light on strategic analysis, where I am hired as a compensation consultant for assisting the burgeoning online music firm e-sonic. The purpose here is to develop an internally consistent and market- competitive compensation system which identifies the individual contributor’s achievements. This report contains three milestones namely, Strategic Analysis, Internally Consistent Job Structures and External Competitiveness.

Running Head: FINAL PROJECT MILESTONE
Final Project Milestone One
Student Name:
Southern New Hampshire University

Executive Summary (1-2 pages)
This report sheds light on strategic analysis, where I am hired as a compensation consultant for
assisting the burgeoning online music firm e-sonic. The purpose here is to develop an internally
consistent and market- competitive compensation system which identifies the individual
contributor’s achievements. This report contains three milestones namely, Strategic Analysis,
Internally Consistent Job Structures and External Competitiveness. The objective is learn the
importance and in-depth understanding of such systems for the human resource management of
the organization. Then to understand the benefits of compensation program for the
organizations. The e-sonic company is now responsible to create online music store which
contains the capability of competing with the established online music companies. The
compensations system of this company is evaluated with the help of the strategic analysis. The
strategic analysis is accomplished by playing the role of a guide to suggest better and effective
future decisions for the compensation systems of the company. The strategic analysis will
represent all the objectives, strengths, weaknesses and challenges faced by the company, with the
help of external environment, industry profile, competition, foreign demand, long-term industry
prospects, labor-market assessment and internal capabilities such as, functional capabilities and
human resources capabilities.
The challenges of this company are, ****.
The major weakness of e-sonic includes, ******.
Whereas, its strengths include, *****
Content will be added.

Table of Contents
1. Milestone 1: Strategic Analysis.........................................................................................................1
2. Milestone 2: Internally Consistent Job Structures..........................................................................5
3. Milestone 3: External Competitiveness............................................................................................5

1. Milestone 1: Strategic Analysis
I am hired as a compensation consultant for assisting the burgeoning online music
industry named as e-sonic, for developing an internally consistent and market- competitive
compensation system which recognizes the achievements of individual contributors. The very
first milestone discussed includes, Strategic Analysis.
1. Defintion of the step in the process (for instance what are job descriptions)
2. Best practices
3. How it will be implemented
4. Steps you took to compelte the task
5. How you would implement this in the real world
6. Why you arrived at the plan you chose and how this plan will drive the business
strategically.
As a consultant for this music company, I am supposed to provide recommendations on a
compensation strategy for the organization based on the company’s goals. Both internal and
external needs must be analyzed here, before providing any suggestions for the company. Thus,
the strategic analysis is analyzed based on two main headings, external environment and internal
capabilities.
External Environment- (short paragraph or two)
1) what steps you take when examining the external environment.
2) What do you look at?
3) What are best practices?
Industry profile.
1) list the NAICS code.
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2) discuss the basic industry characteristics such as sales volume, the impact of
relevant government regulations on competitive strategies, and the impact of
recent technological advancements on business activity.
Competition.
The common competitors of eSonic are, Amazon Music, iTunes and so on.
Foreign demand.
Talk about the demand for web-based music outside of the United States.
http://www.rollingstone.com/music/news/streaming-music-companies-battle-for-
international-ears-20150226
http://www.google.com/url?
sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0ahUKEwiJldTMsNfWAhUE3GMKHTvbA
bQQFggwMAE&url=http%3A%2F%2Fwww.billboard.com%2Farticles%2Fbusiness
%2F6443827%2Fdigital-music-revenues-expected-double-2019&usg=AOvVaw08edwbu-
iLLi6CskVvu-fb
Long-Term Industry Prospects.
long-term industry prospects of online music companies. Need to conduct research on the
industry rather than eSonic specifically. Here are a few sites to get you started on this section…
https://www.bloomberg.com/news/articles/2016-03-22/apple-s-itunes-overtaken-by-
streaming-music-services-in-sales
https://www.fastcompany.com/3048653/listen-up
Labor-market assessment.
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what a labor market assessment is.
What are the steps, when is it completed, etc. Here is a site that can get you started:
https://www.mercycorps.org/research-resources/labor-and-market-assessment-guidance-and-tip-
sheets
https://www.mercycorps.org/research-resources/labor-and-market-assessment-guidance-
and-tip-sheets
In this section you will also actually complete a labor-market assessment for eSonic. It
does not have to be in-depth, but I need to be able to see that you actually took some of the basic
steps in completing a labor-market assessment.
Internal Capabilities
This section represents the organization’s internal capabilities, the best practices and how
the organization’s capabilities are determined.
Generally, the organizational capabilities crop up if the company delivers based on the combined
competencies and abilities of its individuals. Every single organization requires the following list
of capabilities (Smallwood & Ulrich, 2004):
1) Talent
2) speed
3) Shared Mind-Set and Coherent Brand Identity
4) Accountability
5) Learning
6) Collaboration
7) Customer Connectivity
8) Leadership
9) Efficiency
10) Strategic Unity
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11) Innovation
Functional capabilities.
This part will present the functional capabilities of eSonic.
Do more analyzation based on what you have learned rather than research for this section.
Content will be added.
Human resources capabilities.
This part will present the strengths and weaknesses of eSonic’s labor force, with respect
to future recruitment and retention strategies.
Content will be added.
2. Milestone 2: Internally Consistent Job Structures
This section represents the explanation on job structures, its importance and best
practices to create job structures.
Content will be added.
3. Milestone 3: External Competitiveness
This section represents the external competitiveness, why it is important, and what factors
are considered while determining the company’s external competitiveness.
Content will be added.
4

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References
Smallwood, N., & Ulrich, D. (2004). Capitalizing on Capabilities. Retrieved from
https://hbr.org/2004/06/capitalizing-on-capabilities
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