To determine whether downsizing or rightsizing is the best approach for Swvl Holdings Corp, you must first understand the company's current financial situation and future business goals (Tripathi, 2014). You will also need to assess the company's workforce and identify any areas where there may be redundancy or inefficiency (Wilkinson, 2005). Once you have a good understanding of the situation, you will be able to make an informed decision on which approach is best for the company.
Current status of Swvl Holdings Corp:
Swvl's financial situation is currently in flux. The company has been unprofitable since its inception and has been burning money. In 2021, Swvl reported a net loss of $164 million against revenue of $102 million (Investors- Swvl, 2023). Swvl's future business goals are to become profitable and expand its operations into new markets. The company plans to launch its services in Europe and Latin America in the near future. Swvl faces several challenges, including competition from ride-hailing companies like Uber and Careem. The company also faces regulatory challenges in some of its markets.
The Downsizing or the Rightsizing?
Based on the above information, I think rightsizing would be a better approach for Swvl. This approach is more strategic and involves restructuring the company's workforce to align it with its business objectives better. This may include hiring new employees, reassigning employees to different roles, or outsourcing specific tasks (Miller, 2010). Rightsizing can be more time-consuming and expensive than downsizing, but it may be more effective in the long run. Rightsizing can help Swvl become more competitive and profitable.
Swvl strategies to turnaround the business:
Swvl needs to take several steps in several essential directions (Gotteiner, Mas-Machuca & Marimon, 2019):
- Focus on profitability: The company must reduce costs and improve its operations. Swvl can do this by cutting unnecessary expenses and negotiating better supplier deals.
- Operations improvement: The company needs to make its services more efficient and reliable. Swvl can do this by investing in new technology, training its employees, and improving customer service.
- Expansion into new markets: The company must attract new customers and increase its revenues. Swvl can do this by expanding into new countries, launching new services, and partnering with other companies.
- Attracting new customers: The company needs to make its services more attractive to potential customers. Swvl can do this by offering lower prices, improving its services, and expanding its marketing efforts.
The role of human resource management:
In the process of turnaround and when following the approach of rightsizing, it is preferable to take several steps (Wilkinson, 2005):
- Perform a workforce analysis: HR can help identify areas with surplus or inefficiency. This information can then be used to develop a workforce restructuring and rightsizing plan.
- Develop a Communication Plan: HR can help develop a communication plan to inform employees of the turnaround process and changes. It is essential to ensure that employees understand the reasons for shifting and rightsizing and their meaning.
- Training and development: HR can provide training and development opportunities to help employees develop the skills they need to succeed in the new environment. This may include training in new technologies, processes, or procedures.
- Support staff: Human resources can provide support to employees who are experiencing changes. This may include counseling, outsourcing services, or other forms of support.
Conclusion
Despite the challenges, Swvl has the potential to be a successful company. The company has a strong management team and a clear business plan. Swvl is also well positioned to take advantage of the growing demand for passenger transportation services in the Middle East and North Africa region. Rightsizing turnaround can be complex and challenging (Sroka, 2021), but it can be necessary for companies facing financial or operational challenges. By carefully considering all the factors involved, Swvl can right its workforce in a way that helps the company achieve its long-term goals.
References
Gotteiner, S., Mas-Machuca, M., & Marimon, F. (2019). Turnaround types, stages, strategies, and tactics:
Putting things in order. European Accounting and Management Review, 5(2), 12-37.
Investors- Swvl. (2023). Swvl financial-information, https://investors.swvl.com/financial-information/sec-filings
Miller, T. (2010). Downsizing and Rightsizing–Why it is needed and how to do it.
Sroka, Z. J. (2021). Work Cycle of Internal Combustion Engine Due to Rightsizing. Internal Combustion Engine Technology and Applications of Biodiesel Fuel, 3.
Tripathi, A. (2014). Globalization and downsizing in India. International Journal of Multidisciplinary and Current Research.
Wilkinson, A. (2005). Downsizing, rightsizing, or dumbsizing? Quality, human resources, and the management of sustainability. Total Quality Management and Business Excellence, 16(8-9), 1079-1088.