Global strategy MBA market in UK - Essay Example

? International Business School Business Plan Contents Introduction 2 Recipients 2 International Business School 2 Overview 2 Vision ment 3 Market Analysis 4 PEST Analysis 4 Political 4 Economical 5 Social 5 Technological 5 Porter’s Five Forces Analysis 6 The threat of the entry of new competitors 6 The intensity of competitive rivalry 6 The threat of substitute products or services 7 The bargaining power of customers (buyers) 7 The bargaining power of suppliers 7 Opportunities 7 Threats 7 GSBM – Internal Analysis and the Way Forward 8 Market Segmentation 8 Generic Strategies 9 Core Competencies 9 Pricing Strategy 9 Partnerships 9 Conclusion 10 References 11 Introduction This report is a business plan for setting up the proposed business school, International Business School. The main purpose of the business plan is to put forward the business idea in a detailed manner in order to communicate the business opportunity to the potential investors. A business plan is a written statement that describes and analyses the business concept and explains in detail the future projections (McKeever, 2008). Recipients The recipients of the business plan are the potential investors of the company who can be national and private banks, venture capitals, private organizations or businesses willing to invest, companies who will benefit from the talent pool (Management students) and other prospective investors (shareholders model). International Business School Overview There is a great demand for highly qualified management students in today’s competitive corporate world. Even though there are numerous management schools around the globe only very few of them are capable of producing job ready candidates. That is, there is a vacuum in required skills of the graduating candidates and that required by the industry. Companies indulge in various training and orientation programs after hiring the candidates to fill in this vacuum. This is highly visible in third world countries and emerging markets. It is to fulfill this need for highly qualified, industry ready management students that the International Business School (IBS) is proposed. IBS will be initially set up at Charing Cross in central London, UK. The school will then expand to two other countries, Nigeria and Thailand. To start with all the major operations of the school will completely be in UK, and only study centers and admission offices will be opened in Nigeria and Thailand. Masters in Business Management is the primary product IBS. IBS will impart not just theoretical knowledge to its students but will primarily aim at giving them practical experience and exposure to real world scenarios. Unlike many management schools, the main purpose here is not to produce students with high marks and certificates. IBS will be established with the view that marks and certificates can get students well paid jobs but it is the innovativeness, creativeness, ability to think out of the box and make crucial decisions that will help them to keep and grow in the careers. IBS will try to impart the above mentioned characteristics and attitudes into its students. It will not just give them any opportunity to succeed but will teach them to create their own opportunities. The main purpose of education at IBS is not just to prepare students for a challenging job but to prepare them to face the challenges of life. In doing so, the school will succeed in both, filling in the vacuum between the graduating candidates and job ready employees, and produce highly qualified and competent individuals who can make a positive contribution to the society. Vision Statement To impart in its students theoretical and practical knowledge along with skills and attributes that will help them to succeed in both their professional and personal. As a result of the above, IBS will present the world with highly talented and responsible individuals who will make a positive contribution to the society as a whole. Market Analysis Market analysis is an essential part of a business plan. Market analysis provides information about the market such as the size and the structure of the market, various environmental factors that influence the market. This is vital to understand the potential of a business. Failure to conduct a market analysis and assume that there is a market for the product is one of the easiest and most damaging mistakes that can be made while designing a business plan (Balanko-Dickson, 2006). Following is the market analysis for IBS. The analysis will concentrate on all three markets simultaneously rather than one at a time. This will helping in understanding the market conditions in the proposed markets and other global markets. PEST Analysis PESTEL analysis is targeted at understanding the macro environment. That is, it will throw light on various external factors which are not under the control of IBS but have the potential of making an impact. PEST stands for political, economical, social and technological (Pardey, 2007; Haberberg & Rieple, 2008). Political UK government strongly supports higher education and the political environment is stable. The policies of the government favor new ventures and private institutes are encouraged by the government. This is the one of the main attractions for the students from across the globe to take up higher education in the UK. On the other hand both Thailand and Nigeria have democratic governments are not favored by many students due to lack of exposure compared to other western countries. The governments in both the countries are encourage the development of the education system and support ventures with various have various tax exemptions. The political system in both the countries is tables. Economical UK is among the largest economies in the world. There is a consitent increase in the GDP over and inflation has been low. Even though the economy was impacted by recession, it has recovered fast and the country is economically stable. The growth opportunities in the country are immense. Both Nigeria and Thailand have an inflated economy. The instability factor is very high in the Nigerian economy. But various measures have been taken to improve the economic conditions. The currency fluctuations are also high and very low compared to dollars. Economy in Thailand is promising as there has been nn increase in the GDP in the last year. It would make more business sense to limit the operations of the institution in Thailand and Nigeria to those which are not strategically very important. Social Socially all the markets are different from each other. UK being home to millions of foreign citizens is socially favorable to foreign students who are the primary targets of IBS. English is native the common language and the people are very friendly and supportive. Thailand on the other hand is mainly Buddhist nation. Even though society believes in collectivism and socially friendly, communication can be a problem. On the other hand English is spoken nationally in Nigeria. There isn’t a single culture that is followed through out the country. It is culturally very diverse and this cultural diversity has made the people to accept various nationals. Therefore all the three markets are culturally diverse but at the same time socially friendly. Technological UK is technologically superior compared to the other two markets. Technological development in UK makes it easy to build a state of the art infrastructure for the students. Technology in both Nigeria and Thailand is improving. The need for technically sound institutes is high and this has been recognized by the governments of both the countries. Thai government gives emphasis on the use of technology in imparting education. Porter’s Five Forces Analysis The most important factor in a market that affects a business is the competitive forces in the market. The best tool at disposal to analyze the competitive forces in a market is Porter’s Five Force analysis (Hill & Jones, 2009). The various competitive forces that Porter identified are: The threat of the entry of new competitors The threat of entry of new competitors is low as the markets in Thailand and Nigeria are starting to open up now. On the other hand, in the UK there are numerous institutes that are already running and there is a demand for institutes which can offer quality education. Also there are many e-learning programs that offer management courses for students to complete over the internet. But it too has its advantages and disadvantages. Students prefer to study in international institutions which also add to the attractiveness of the market. Hence, the threat to entry of new competitors is high. The intensity of competitive rivalry The level of competitive rivalry is also very high. There are numerous institutes offering management courses and this put extra pressure on IBS to be innovative in its approach. Advertising expenses will also be very high. Use of e-commerce is vital as majority of competitors already have their presence on the web. The threat of substitute products or services The threat of substitute products depends on what we (IBS) offer to the students. It is very important to offer unique opportunities to the students. The course will be designed to attract students and at the same deliver what is promised to them and what is required of them by the industry. The bargaining power of customers (buyers) As there numerous competitors, the students will have bargaining power. Students have numerous choices to choose from and this gives them an opportunity to bargain over the overall packages. But this can be countered initially adopting penetration pricing strategy. The bargaining power of suppliers This is not much of a worry as there are numerous suppliers and the price can be negotiated as future requirements are high. Opportunities Even though the market is crowded with numerous players, there is an opportunity for organizations/institutes who offer innovative products. As this is a dynamic market and its growth is continuous, any organization with the ability to attract the students and survive the initial turbulence will have a greater opportunity to succeed. There are various creative and innovative means of gaining a competitive advantage in the market. Threats The primary threat is the competition. The competition is immense with numerous players. There are many schools and institutes who have established themselves in the market are primary choices for many international students. Also the cost of living in London is too high which can not be afforded by the students from Nigeria, Thailand and third world countries. GSBM – Internal Analysis and the Way Forward This section will brief on the strategies that will be adopted to counter the various threats and make IBS a success. In order to do so, first the market segmentation is conducted to identify the target market. Market Segmentation Market segmentation is dividing the market into smaller groups with similar requirements. This will help the institute in better satisfying the needs of the potential customers. Demographic: The primary targets are students or professional between the age group of 18-35 irrespective of gender. It can be students who want to continue their education to create better opportunities for themselves or professionals who want to add on to their educational background. Geographic: Initially the primary target will be students from London, Nigeria and Thailand. But it will gradually expand to other parts of the world. Psychographic: The students who believe that a degree from an international institute will help their careers. And also who are looking for an opportunity to learn the skills that will help them achieve greater heights. Generic Strategies The main requirement is to design the course ijn such a way that it attracts the students. Care will taken to ensure that course is innovative and will help the students to build on their existing skills and acquire new ones that will help them to achieve newer heights. Core Competencies The core competency of IBS is that it will be unique in its approach. Practical exposure to the real world will be given more importance and students will be deputed in various global and local organizations before they graduate to get first hand exposure. Also students who can not afford to stay in London will be given the opportunity to study from their native cities. This will be made possible with the help of a dual online course where students are allowed to take assistance from online tutors and also take up their exams online. But they will be required to come to London for the final month of the course. Pricing Strategy Penetration pricing strategy will be adopted in the initial stages and this will help IBS. This will help to reach the target market irrespective of competition. Partnerships Strategic partnerships will formed with various organizations for the purpose of placements and project works which will give the students real world exposure. Conclusion This business plan has successfully explained the potential investors about business opportunity in IBS. References Balanko-Dickson, G. (2006). Tips and traps for writing an effective business plan. NY: McGraw-Hill Professional. Haberberg, A. & Rieple, A. (2008). Strategic Management: Theory and Application. NY: Oxford University Press. Hill, C. & Jones, G. (2009). Strategic Management Theory: An Integrated Approach. OH: Cengage Learning McKeever, M. P. (2008). How to write a business plan. CA: Nolo. Pardey, D. (2007). Marketing for Managers. MA: Institute of Leadership & Management Read More