Megalith, Inc. – Hay Associates (A) Case Solution & Answer

Megalith, Inc. – Hay Associates (A)

SWOT Analysis:

SWOT analysis is the fundamental part of analysis that aid to the company in the examination of the internal environment. (see appendix 1)


The main strengths of the Megalith-Hey Associates are their capabilities and the resources that help the company leverage up in the building due to which the company’s economic health is raised as compared to other competitors. The company has various positive aspects that boost up the company which include expertise and experiences, financial resources, Advance HR system and Successful activities and processes of the company.

The main strengths of the company are as under:

  • Company have a wonderful ability to understand the relative accountabilities of all various roles that include HQ (Headquarter), Business, Function and Category
  • It has the efficiency to develop the better market competitive assessments via the various surveys of measured Job-size
  • The fundamental part of the strength which the company has the determination of the better job/person match
  • The company can meet the relative requirements of equal value legislation
  • It established the influential and distinct ways which play a vital role in the determinations of the career decisions and developmental programs for the retention of market value
  • Distinctive designs for the working of matrix structure


Here are some important negative points of company due to which it is difficult for company to sustain in the market as compared to their rivals. The enlisted points are as under:

  • The complications regarding the talented employee’s retention in the company.
  • The legislation issues of the company are not efficient.
  • It is difficult for a company to score the matrix because of complications in the transparency.
  • Company have bias reflections regarded to the grading and the budget holding system.
  • The communication gap between employees and the management system of the company and the lack of the coordination.
  • Company has financial issues due to which the issue creates various complications and hurdles to the development of the company.


There are various influential factors that play a vital role in the creation of market value for the company as compared to its rivals are the advancement in the management system, Upgrade the tools which company provided to their customers. By upgrading company’s products i-e tools and equipment’s company create a huge market worth and it will be the best opportunity for the company to overtake the customer’s market. Various companies and firms are all around the globe, but the most successful companies are those which never under-estimate the taste of the customers. So by bringing the advancement in their equipment, upgrading the quality of publication and supplying System Company can create a best opportunity to grab market. This will help in the retention of the customers. By providing the best atmosphere to the new talent Employees Company can meet up their achievements because if the company provide best opportunities to their employees it deliberately raises the interest of employees in the company which results in the retention of employees in company. Company have strong financial statement as well it help Company to invest in diversified projects which help in the grab the market value.


The biggest threat for a company is the volatile retention of the employees, which will be a fatal situation for the company it is because if the talented employee’s maintenance will not regulate in, time the then company can be disrupted. The company has a flop system of providing opportunities to their employees because of their weak strategic plans and organizational maintenance.

The failure in the management and facilities it will be a threat for company that its competitive companies can easily grab the market and it will be very tough for company to re-established the market again.

PESTLE Analysis

Political Factors

The political factors holds severe impacts over the operations of the business. Higher taxes tend to increase the operational costs of running the company. Any political instability leads to imbalance the cost structures and revenue generation system of the company.

Economic Factors

The economic stability is important for smooth running of the company’s operations. Any economic and fiscal changes are most likely to affect the company negatively. It is because of the fact that due to the increasing inflation rates, unemployment ratio, and interests rates the purchasing power of the people around the country decreases that ultimately decrease the sales of the company.

Social Factor

Social factor can affect the company in positive as well as the negative manner. Since the company’s produces the products that are highly beneficial and therefore high in demand. Because of this reason the sales of Megalith are often very stable. On the other hand the increasing competition is a threat to the company as their market share could be decreased.

Technological Factor

For Megalith, technology is a key to success, growth, and business expansion. With the help of advanced technology and acquiring advanced equipment and machinery the company could conveniently improve the quality of its prints and could ultimately raise the demand of its publishing business. Hence the technological factor is very significant for the business.

Legal Factor

The legal factors does not have any impact over the operations of the business although it holds significant importance. Because the company has never been involved in any issue related to the violations of country’s laws and regulations that gets the company subjected to the attention of legal authorities and legal challenges, the legal factors have been favorable to Megalith.

Environmental Factor

In the current scenario the internal environment of the company has been negatively impacting the company’s performance and reputation. As mentioned in the case the competitive employees of the company are leaving the company because of the poor compensation system in the company. In order to retain its employees the company now needs to implement effective strategies.

Conclusion and Recommendations:

The analysis shows that company have various complications regarding the retention of the talented employees in the company due to which the company suffers from the qualitative performance and it failed to compete with compared companies i.e. ( IBM and Xerox). These issues resist company to develop and achieve their targets.

Here are some important recommendations that aid the company in becoming efficient as compared to the other companies:

  • The volatile nature of employees in the company can be sorted out by providing the qualitative hiring system it means that on behalf of the talent company should hire their employees on certain position.
  • The employee’s retention mostly depends on the company’s working atmosphere, so the company should develop a suitable atmosphere for employees.
  • Company should raise ceilings which include the pay brackets of employees.
  • It will be a productive way for the company if the company provides the performance based competitive incentives to the employees.
  • By provide the employees stock options company efficiency can be raised because this option encourage the employees…

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