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New Branch Campus University in Singapore - Research Paper Example

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The paper “New Branch Campus University in Singapore” seeks to evaluate one of the most reputable and high-rated universities in the UK. The Singapore education market is saturated with intense competition from regional universities and special-trade or technology learning centers…
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New Branch Campus University in Singapore
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 New Branch Campus University in Singapore Executive summary As one of the most reputable and high-rated universities in the UK, the organisation is ready to expand its educational reach into Singapore. This new market opportunity can provide the university with a more diverse mix of educational programmes and also ensure longevity for the organisation with higher profit potential. The Singapore education market is saturated with intense competition from regional universities and special-trade or technology learning centres, thus competitive actions must always be monitored in relation to marketing, pricing, and the quality of education delivered by competition. There are opportunities to attain competitive advantage in Singapore as a new education market entrant if the university remains focused on establishing a solid educational brand in this new, foreign operational environment. Singapore as branch location Singapore was chosen for the establishment of the new university branch due to the region’s strong, contemporary focus on post-secondary education and the development of skilled workforces (Brown, 2004). Singapore’s economy is adjusting in a positive direction as the region’s technological and sociological conditions improve with the development of modern, Westernised lifestyle. What all of this represents is a market of potential students in Singapore with both the cultural thirst for knowledge and a social acceptance of the value of higher education, thus the company can take a mass market approach to certain student market segments. The literacy rate in Singapore is over 90 percent, representing a remarkable market opportunity even in the face of high competition in generalised and specialty knowledge education centres. The total population in Singapore is 3.6 million (Aviram and Richardson, 2005), potential for current and future growth potential for the university. Building the campus in a more populated region with dense concentrations of residents is an advantage for the university. Higher citizen demographics in terms of population gives a stronger outlook for the future of the university’s success in ensuring year-to-year increases in student enrollment. Being nestled in the centre of a thriving metropolis also creates opportunities to inter-mix with local business leaders and develop strategic alliances to build win-win, dual branding campaigns and strengthen university reputation in the process. These networks will also provide existing and future students with access to real-time information in a variety of different industries so that they can witness, first-hand, what they can expect after graduation in a professional business or technological environment. Singapore’s geographic provision of concentrated business industries provides tremendous opportunity for expanding the course outcomes to include knowledge of up-to-the-minute industry knowledge. Budget allocation - construction £20 million has been allocated to the tangible raw materials required to construct the new campus and for the purchase of all necessary assets (chairs, desks, technology, et al.). This is to include payments to various contractors, development managers, and other construction support services necessary to construct the facility within the expected timeline. These issues have been worked out and financing for the tangible construction is available and will not be discussed further. This leaves the new Singapore campus project with £5 million which will be allocated for the operational aspects of programme delivery, staffing, strategic management, business development and marketing. Staffing – Administrative and academic Because the university’s mission is to be the worldwide leader in the provision of education, the development of a diverse academic programme will be necessary in order to compete successfully. As part of a comprehensive SWOT analysis, the university recognises its strengths in the provision of education in a broad variety of knowledge fields, from art to technology, the university must consider a diverse programme when thinking of recruitment opportunities or risks. However, recruitment efforts should not be challenged too extensively in Singapore due to the regional emphasis on education and the high volume of professional degrees held by many of its citizens in a wide variety of specialised education. A sufficient volume of instructors will need to be considered to fulfill educator positions in management, technology, literature, finance, philosophical studies, theology and education. Recruitment efforts will begin as part of the university’s overall branding strategy to differentiate the business from competing academics providers. Traditional recruitment mediums, such as online job search engines and local recruitment advertisements in relevant publications will be a logical marketing effort to locate qualified teaching personnel. In order to launch a successful recruitment campaign, it will be necessary to fill the role of human resources manager with a team of dedicated staff, to develop and monitor the recruitment programme. These positions should be filled with expatriates who are familiar with the internal HR systems of the university. Payroll obligations in this area, for a period of one year (the construction phase), should not exceed £200,000. This team of HR experts will assume responsibility for the promotion of the online and print recruitment marketing, will report to senior leadership with data supporting their efforts and will conduct all pre- and post-interview sessions necessary. Additionally, the efforts of the HR specialist team will be advised as required by the chief executive for specific hiring criteria and most hiring decisions will be based on the chief executive’s recommendations; with advisement and assessment from the Board. All key teacher and professor personnel decisions will be made prior to the campus’ completed construction. Recruitment and selection efforts for administrative and other support staff will be wholly owned by the HR specialist team, but will be advised by the chief operations officer to ensure all areas of administrative function have been considered. These areas include office support staff, custodial services, landscaping professionals, counselling, and other specialised job roles. For all recruitment efforts, the HR team will be allocated a working budget of £300,000 for promotion, travel, technology and technology development fees, and other general recruitment costs. A series of professional proficiency tests will also be developed by the leadership group and the HR specialist team. Surveys and situational testing will be presented to instructor applicants which will measure their likely psychological reaction to hypothetical classroom and university scenarios. This will measure their ability to respond appropriately and exhibit professional behaviours in a wide variety of different educational scenarios. These proficiency tests will also measure that the candidate does, indeed, maintain basic or high-level knowledge about their programme field to add further reliability to the recruitment and selection processes. These tests will be developed along with the expertise of know ledged professionals from a diverse field of study. Costs of developing this new proficiency test system in recruitment: Approximately £50,000. The leadership of the university believes that this expenditure toward the development of the proficiency test will ensure accuracy in the selection process and is worth the investment. Because the university is now moving focus toward providing superior education in an international-focused environment, it is important that there is a framework by which to measure applicant talents in their specialised field of knowledge. This will be necessary in locating top-notch teaching talent and ensuring that the university is free from liabilities in the event that teacher performance, post-hire, fails to meet expected standards. Program delivery In order to remain competitive, the vast variety of programmes offered at the Singapore campus must reflect the ever-diversifying culture present in this region. Students are going to want the best quality education, at a price that is feasible based on their resources, and one which will carry their careers well into the future. Therefore, a successful strategy begins with the development of a sound organizational leadership hierarchy. Montebello (2006) offers that hierarchies assist in meeting the psychological needs of people and flourish because they provide structure and provide motivational career ladder opportunities. This university, in order to ensure organisational effectiveness, will establish a top-down leadership hierarchy with strategy controlled at the most senior levels. By centralising leadership, a standardised method of programme delivery can be developed and then administered top-down through the school’s management chain. This is another part of the overall branding strategy for the university by ensuring that the curriculum is aligned with the communications being described by marketing and promotion. A more bureaucratic framework is also necessary for successful programme delivery, as in this structure rewards are based on personal contribution and individual merit, with decision-making and rules clearly spelled out in writing (Bennet, 2006). In order to maintain the proper teacher motivation necessary to provide superior learning, various reward systems will be created which provide extra compensation for reaching certain strategic targets in the classroom. Patel (2009) identifies that reward schemes is a top-rated methodology for boosting staff motivation to perform. This is yet another strategy toward branding a positive image as a leader in education provision by creating a highly-competitive teaching environment where instructors are compelled to demand more of their own teaching methods in pursuit of reward for positive performance. This is a performance management system as well as it will identify instructor strengths and weaknesses and allow for development of more quality in-class teaching philosophy. This bureaucratic framework will also provide the necessary disciplines required for failing to meet expected standards, as relevant in local and domestic labour laws. This campus university will dedicate its marketing focus on creating social interaction as a means to generate higher levels of knowledge. Chua (2002) offers that social interaction creates more quality knowledge outcomes, thus another focus toward meeting the goal of satisfying international student and instructor interests will be emphasis on inclusion. Inclusive, social instructors with modern beliefs and values can assist in creating a more inclusive and interactive classroom experience. This open-door variety of policy will invite junior management members and generic academic staff to express their concerns or opinions about programme delivery in a friendly, non-intimidating style. The free expression of ideas will only generate more positive school and student outcomes, thus this focus must be a part of the overall branding strategy. It will be present in all recruitment marketing literature (both instructors and students) and be consistently reinforced by leadership personnel. How teachers behave in the classroom and the approaches to instruction chosen largely affect the level to which students learn and absorb information (Tassel-Baska, Feng, MacFarlane and Heng, 2008). Therefore in order to ensure that all instructors are on-target with strategic business expectations, a quality control and auditing system will be developed which will involve periodic classroom visitation to critique lecture format, student levels of interaction, non-verbal posturing, and other elements associated with quality programme delivery. Teachers who are not well-versed in concepts such as psychology and non-verbal communications would benefit from extended, in-university learning whilst being assessed for superior in-class performance. This quality control model is being adopted by benchmarking the activities of Ngee Ann Polytechnic in Singapore which has established a quality control system that has helped to maintain excellence in processes and quality of education delivery (Chin and Chye, 1992). This system consists of an evaluative team of staff members, educators, graduates and external advisors and teachers will be audited using an evaluative template constructed by senior leadership and the Board. Skilled knowledge programs will be delivered in appropriate technology-driven environments with the most modern of equipment, laboratories and high-tech learning tools. These departmental needs have been identified in the initial construction and development budget. The softer programmes, such as management and finance, will be delivered using the same inclusive curriculum, exposing students to guest lecturers from real-time business environment, situational scenarios highlighting leadership competencies; to name a few. The point of the company’s overall branding strategy is to differentiate the university as a leader in education and with an international focus. In order to accomplish that goal, the university must market itself as a modern organisation equipped with the sophistication and talent necessary to achieve student goals and long-term career ambitions. Knowing the market opportunities In order to appeal to the right market demographic, such as the international student versus the domestic Singapore student, it is vital to understand their unique preferences and values as part of promotion. Pornpitakpan and Tan (2000) offer that humour, when containing extreme incongruity, is not widely accepted in Singapore and can greatly impact the intention to make a purchase. What does this mean for the university? First, the university cannot use humour as part of its promotional campaign unless the level of humour is considered acceptable by the local culture. As part of the inclusive and socially-inviting branding strategy, knowing that the Singapore student will have negative perceptions through humour marks the direction of the marketing campaign for this broader mass market: Sophistication in communications. Potential domestic students will be exposed to consistent marketing literature which strongly reinforces the inclusive and modern elements of the university curriculum. In Singapore, only 23 percent of residents speak English with the largest percentage being Madarin speakers (indexmundi.com, 2008). There must also be a focus on the international elements of diverse and inclusive classrooms, which will launch the No Barriers brand campaign for in-class promotion and for recruitment of Singapore students. Such marketing efforts in the No Barriers campaign can include inducements for improving English as a second language through sponsored programmes or certain diversity days where students can be exposed to elements of foreign culture. These activities and upcoming diversity events will be updated on recruitment and informational websites, along with appropriate photo galleries of these events to invite student interest. International students will represent a niche market, however recruitment of these students will be vital to ensuring profitability within a five year period of the university’s launch. To the advantage of the university, Singapore residents are very technologically savvy and are accustomed to using the Internet to fulfill many consumer needs and for social networking (Yee, 2000). Online recruitment efforts for international students will highlight specific target regions and then develop language-specific options to view information on the university in their native tongues. Pricing will also be highly important to not only attaining profit through enrollment, but also to satisfy different market segments. The generalised tuition fee in non-specialised university instruction in Singapore is approximately £26,000 per year. For specialised degrees, tuition is approximately £33,000 yearly (National University of Singapore, 2009). Today’s difficult, global economic climate represents a risk to attaining high tuition fees and also will appeal to the price-conscious student when deciding which university to attend. This is part of the mass marketing focused strategy to keep prices within competitive expectations and also to ensure that all operational costs of programme delivery are exceeded through revenues. International students can be targeted with a positioning strategy for the university which focuses on value in comparison to universities in their domestic region. Rather than spotlighting pricing as a competitive tool, attention would then be given to the consumer on areas of quality or learning programme delivery as an incentive to explore overseas campus education. Pricing has become an important marketing and positioning strategy for many companies, in multiple industries, due to declining consumer confidence (Lim, 2009). Through pricing, the goal is to illustrate that learning quality and value are expected outcomes when enrolling with the Singapore campus. Understanding the different mass market lifestyle preferences and beliefs is also important in creating promotion which fits the total branding strategy and creates positive consumer sentiment for the university. Various qualitative and quantitative research studies, using surveys and questionnaires, will be conducted by the HR specialist team to measure local attitudes about university quality, learning expectations, and other socio-economic factors. This data will provide unique insight into how best to use promotion and psychographics to create promotion which makes the university stand out among competition. In Singapore, women are valued in areas of business in much greater proportion than many other Asian nations (overseasdigest.com, 2009). This is another mass market opportunity to reinforce the university’s commitment to diversity by devoting a portion of marketing to the female student. Promoting how women have gained authority and interest in Singapore by devoting a segment of the online promotional website to history and women’s needs can build another strong consumer sentiment for the university and the brand. It is the university strategy to appeal to local feminine values and promote opportunity for female students in the inclusive university environment. Competition analysis This is a highly saturated, competitive market. As Singapore is well-developed in terms of education, technology and infrastructure, many different universities cater to diverse fields of study. Nanyang Technological University is a major competitor in Singapore, offering specialised training in technology and science (madrasi.info, 2008). Including the National University of Singapore and Singapore Management University, there are approximately 24 major competitors in the region who offer diverse or specialised knowledge courses (madrasi.info). An environmental analysis of competitor marketing will be an ongoing focus of the university, measuring whether pricing increases have occurred or unique differentiation strategies in marketing have been developed which could take away from student enrollment ratios. These universities are, for the most part, competitive in terms of pricing which might suggest a price-conscious student in Singapore. The university’s competitive strategy will be its mass market focused branding strategy focusing on modernisation as the key selling strategy, along with inclusive and innovative teaching principles and processes. By sending a consistent message of these activities and the promise of providing education programmes involving real-life business and technology scenarios, the university is positioning itself in terms of overall quality and strives to make lifestyle connections with multiple student demographics. By using the same consistent message in all promotional literature, both print and in online format, the university can focus on its new campus construction and technologies whilst also projecting the image of sophistication. Because of the region’s strong push toward the advancement of the education of Singapore society, the university should also focus on its dedication to creating a more motivating learning experience as a competitive tool. Focusing on basic human needs, such as creating a sense of social belonging, will also be illustrated in the majority of all promotional materials being distributed to mass market students. Illustrations and photos of students in social scenarios will also be a competitive tool to create the desired linkage between lifestyle/social needs in the student and the university’s positive focus on inclusion. Visual elements of the university are also considered as part of competitive strategy, in terms of exterior groundskeeping and in-class furnishings and other visual decor. A more sophisticated outdoor look, including campus socialisation spots on the property to promote a sense of community, will build a positive brand sentiment in local Singapore and can be promoted for the university’s physical attributes online and in print literature. Combined with modern colour combinations and unique, abstract decor in key sections of the business, a flair for innovation in design will be another competitive element in total marketing and branding strategy. There is also a social trend in which Singapore citizens have developed a negative perception of the National Education system in the country. It is compared as being “militaristic” and a product of “propaganda” (Spring, 2004, p.48). Part of the competitive strategy for mass market focus will involve reinforcement of the flexibility provided by private instructional programmes which allow students to, essentially, be what they want to be. Appealing to this lifestyle trend where national education is considered a negative educational option will be of large advantage to raising enrollment rates. Using comparative literature on the online websites which show learning statistics or standards in the national education system versus statistics of the quality of a university education could further reinforce lifestyle connection with the brand. Distance learning is a growing opportunity for many universities as it provides a more flexible teaching alternative and can even reduce payroll budgets for campus operations. In Singapore, distance learning is quite common (Discenza, Howard and Schenk, 2002). The focus of the new campus facility is a community-focused, inclusive environment which uses the tangible aspects of campus learning to reinforce how a campus environment is superior. It is not part of this business plan for the university to consider, short-term, entering the online learning market. It is believed that this effort would only complicate initial efforts at building a solid organisational structure and management system during the first several years of operations. Online teaching as a competitive tool will not be considered despite its use in Singapore or its commonality among students in different market environment. The inclusive and socially-focused branding strategy would only send confusing messages to prospective students. Costs breakdown Provision of HR specialist team £200,000 Recruitment marketing £300,000 Branding strategy marketing £1,500,000 Operations costs £3,000,000 (i.e grounds, maintenance, etc.) Rather than provide a breakdown of each operational cost during the first year, expenditures toward the successful launch and first year of operations were categorised by business segment. Several operations costs included in this £3 million budget are contractual agreements with groundskeeping organisations, campus living custodial services, food raw materials, cafeteria support staff payroll obligations, resource textbooks, and other service-oriented functions necessary to keep the university operational and to legal standards of operation. Total costs, including construction, £25 million in order to successfully launch the new campus from the ground up. Long-term profit outlook In order to execute the diverse programmes necessary to remain competitive and profitable, payroll obligations for 100 instructors at a median salary of approximately £50,000 will burden the operational budget by £5 million annually. In addition, administrative and support payroll will add another £2 million annually. Total payroll obligations yearly are allocated at £7 million each year. Operational costs have been estimated at £25 million yearly, including promotion and tangible asset purchases and building maintenance. In order to recapture these £25 million in annual expenses, enrollment ratios must be satisfactory or above expectations. The building itself, along with instructor capabilities, allow for the enrollment of 1,600 students. At a median annual tuition rate competitively priced at £22,000 yearly, revenues from enrollment will be £35.2 million. With full tuition expectation achieved, the university will capture these costs and emerge profitable in year three of operations. This is taking into consideration the repayment of the initial long-term loans for construction and setup of the Singapore campus facility. During year one, the university offers a picture of expected enrollment rates to be moderately below maximum tuition as the university streamlines and reinvents elements of its promotional mix. For year one of operations, student enrollment is estimated at 1,200, thus providing £26.4 million in revenue after launch of the new facility. This estimate does not take into consideration secondary revenue sources such as the student cafeteria sales or other service-oriented payments associated with on-campus university services. The profit outlook in this market is quite favourable and represents a quality location for long-term strategic benefit and brand establishment in Singapore. Though it might be unrealistic to assume that maximum enrollment objectives will be achieved during the first year of operations, it is a quality business mission and a focus which all dedicated staff members should remain constantly striving to achieve. The combination of marketing promotion for niche market and mass market student segments, along with branding efforts to reinforce community and inclusive values, and other innovations in service delivery will achieve the goal of maximum student enrollment ratios and provide a superior name for the company in terms of quality, value and sophistication in programme offerings. It is through marketing where profitability will achieve its greatest enrollment gains and continuous auditing of these efforts will be necessary to create new and innovative competitive strategies and also ensure that the provision of education is both standardised and fitting the goal of modernisation which the university seeks to provide and promote. References Aviram, R. And Richardson, J. (2005). Upon What Does the Turtle Stand? Rethinking Education for the Digital Age. Kluwer Academic Publishers. Bennet, Alex. (2006). Hierarchy as a learning platform. Vine, Bradford. 36(3), p.255. Brown, James E. (2004). Career Information and Resources for Singapore, Going Global, Inc. Chin, Y. And Chye, T. (1992). Quality control in the educational service – A Singapore experience. Asia Pacific Journal of Quality Management, Hong Kong. 1(1), pp.36-44. Chua, Alton. (2002). The influence of social interaction on knowledge creation. Journal of Intellectual Capital, Bradford. 3(4), pp.375-390. Cooper, Martin. (2009). Gift vouchers stay relevant. Promotions & Incentives, London. January, p.S9. Indexmundi.com. (2008). Singapore Demographics (2000 census). http://www.indexmundi.com/singapore/demographics_profile.html. (accessed 1 Aug 2009). Lim, Kenny. (2009). Marketers assess pricing strategies. Media, Hong Kong. 26 March, p.19. Madrasi.info. (2009). Singapore and Malaysian Universities. http://www.madrasi.info/asian-university.html. (accessed 3 Aug 2009). Montebello, Anthony R. (2006). Top down: Why hierarchies are here to stay and how to manage them more effectively. Personnel Psychology, Durham. 59(1), pp.255-258. National University of Singapore. (2009). Fees for undergraduate programs. https://share.nus.edu.sg/registrar/info/ug/UGTuitionCurrent.pdf. (accessed 2 Aug 2009). Overseasdigest.com. (2009). Working abroad career guide for Singapore. http://www.overseasdigest.com/country/Singapore.htm. (accessed 2 Aug 2009). Patel, Jyoti. (2009). Helpline. Human Resources, London, pp.73. Pornpitakpan, C. And Tan, T. (2000). The influence of incongruity on the effectiveness of humorous advertisements: The case of Singaporeans. Journal of International Consumer Marketing, 12(3), p.27. Spring, Joel H. (2004). How Educational Ideologies are Shaping Global Society: Intergovernmental Organizations, NGO’s, and the Decline of the Nation-state. NJ Lawrence Erlbaum Associates, Inc. Tassel-Baska, J., Feng, A., MacFarlane, B. And Heng, M. (2008). A cross-cultural study of teachers’ instructional practices in Singapore and the United States. Journal for the Education of the Gifted. 31(3), pp.214-241. Yee, Chen M. (2000). Yahoo! Makes grass-roots push in Asia—Students are targeted in drive to attract new users for portal. Wall Street Journal, NY. 1 August, p.B9. Appendices A: Cash flow summary Cash Flow   2010 2011 2012 2013 2014 Cash Received                       Cash from Operations           Cash Sales £34,875,000 £37,350,000 £39,000,000 £41,475,000 £43,950,000 Cash from Receivables £9,719,792 £12,314,792 £12,909,861 £13,689,792 £14,514,792 Subtotal Cash from Operations £44,594,792 £49,664,792 £51,909,861 £55,164,792 £58,464,792             Additional Cash Received           £0 £0 £0 £0 £0 Subtotal Cash Received £44,594,792 £49,664,792 £51,909,861 £55,164,792 £58,464,792             Expenditures 2010 2011 2012 2013 2014             Expenditures from Operations           Cash spending £7,000,000 £8,000,000 £8,600,000 £0 £0 Bill Payments £29,399,236 £32,829,532 £33,495,695 £39,969,536 £39,087,159 Subtotal Spent on Operations £36,399,236 £40,829,532 £42,095,695 £39,969,536 £39,087,159             Additional Cash Spent           Purchase Long-term Assets £0 £0 £0 £0 £0 Dividends £0 £0 £0 £0 £0 Subtotal Cash Spent £36,399,236 £40,829,532 £42,095,695 £39,969,536 £39,087,159             Net Cash Flow £8,195,556 £8,835,260 £9,814,166 £15,195,256 £19,377,633 Cash Balance £8,395,556 £17,230,816 £27,044,982 £42,240,238 £61,617,871 Appendices B: Profit statement Profit and Loss   2010 2011 2012 2013 2014 Sales £26,400,000 £29,700,000 £33,000,000 £36,300,000 £39,600,000 Direct Cost of Sales £6,600,000 £7,425,000 £8,250,000 £9,075,000 £9,900,000 Other Costs of Sales £0 £0 £0 £0 £0   ------------ ------------ ------------ ------------ ------------ Total Cost of Sales £6,600,000 £7,425,000 £8,250,000 £9,075,000 £9,900,000             Gross Margin £19,800,000 £22,275,000 £24,750,000 £27,225,000 £29,700,000             Expenses           Payroll £7,000,000 £8,000,000 £8,600,000 £0 £0 Marketing/Promotion £3,000,000 £3,000,000 £3,000,000 £3,500,000 £3,500,000 Depreciation £0 £0 £0 £0 £0 Loan Payments £1,000,000 £1,000,000 £1,000,000 £1,000,000 £1,000,000 Utilities £40,000 £45,000 £50,000 £55,000 £60,000 Insurance £40,000 £45,000 £50,000 £55,000 £60,000 Groundskeeping £20,000 £22,000 £25,000 £28,000 £30,000 Other Operating Expenses £20,000,000 £20,000,000 £20,000,000 £24,000,000 £20,000,000   ------------ ------------ ------------ ------------ ------------ Total Operating Expenses £31,100,000 £32,112,000 £32,725,000 £28,638,000 £24,650,000             Profit Before Interest and Taxes (£11,300,000) (£9,837,000) (£7,975,000) (£1,413,000) £5,050,000 Interest Expense £0 £0 £0 £0 £0 Taxes Incurred £0 £0 £0 £0 £0             Net Profit (£11,300,000) (£9,837,000) (£7,975,000) (£1,413,000) £5,050,000 Net Profit/Sales -42.80% -33.12% -24.17% -3.89% 12.75% Read More
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