Why the Small and the Big US Universities Expected to Close Down in the Next Few Years - Assignment Example

Market Analysis Details of group members: First, using the table below, allocate a member number to each person in this group. Member Number Student Name ID Number UNISA e-mail address Signature 1 @mymail.unisa.edu.au 2 @mymail.unisa.edu.au 3 @mymail.unisa.edu.au 4 @mymail.unisa.edu.au Then, indicate the tutorial time for the group members: Member Number Student Name Day and Time Room Number Tutor’s name 1 @mymail.unisa.edu.au 2 @mymail.unisa.edu.au 3 @mymail.unisa.edu.au 4 @mymail.unisa.edu.au Finally, each member of the group is to rate the contribution of every member of the group to this assignment, including their own contribution, by completing a column in the table below, using the following scale: A Contribution was above average for the group B Contribution was average for the group C Contribution was below average for the group D Contribution was substantially below average for the group Contribution rating: Member Number Rating by member 1 Rating by member 2 Rating by member 3 Rating by member 4 1 2 3 4 The General Manager in your company has a background in economics and has suggested that in your product category the brands with lower market shares will have higher average prices but as a Marketer Analyst you might not agree. Data set 1 provides information on the sales of the detergent brands over a period of time. Do these data support the General Manager’s proposition? Apply the principles of data reduction to the data for Q1 to build a reasonable argument to convince the General Manager about the correctness of your judgment. Data set 1 information clearly supports the general manager’s proposition of the brands with a lower market shares to have a higher average price. In an economist point of view, this may be the right decision to make, but in a market perceptive this may not be the case. The brands with lower market share ought to price lower than the brands with higher market share, putting a lower price on the brands will attract customers to the brand thus, increasing sales and enhancing its market share in the market. The principles used for data reduction in the data set 1 involve arranging the order by size, data presented in the form of tables, and this ensures the ungrouped data clearly seen. Average method mainly used to put a price on brands and determine the market share of diverse brands. Using the principles of data reduction the data arranged chronologically from the brand with the least market share to the brand with most market share value. Pricing the brands with less market share highly is not advisable in a market perspective since customers will not be attracted to purchase the brand (Edwards & Smith, 2010, p. 18). Economically the idea may be advisable, but the sales will highly be affected thus enhancing the fall of its market share even further. Therefore, to promote the brand with least market share pricing them lowly will promote the brand increasing their market share. A brand with a large market share promotes sales, increasing the profit of the company. The general manager, therefore, ought to embrace the data reduction method in pricing the brands to promote sales and enhance growth of the market share (Gabriel & Galligar, 2010, p. 13). Data set 2 provides transactional data. It is the purchases by consumers of the brands in chocolate snacks category over a period of time. Is there any evidence of niche or change‐of‐pace brands? Explain. The evidence of niche in chocolate snacks is apparent, since the shoppers biased to specific categories, the purchasing factor of the shoppers show that they favor certain brands to others thus increasing the sales of specific brand category. The niche factor may influence the chocolate snacks company, to only concentrate on manufacturing specific brand category, since it is clear that some of the chocolate snacks category not consumed throughout the year (Gabriel & Galligar, 2010, p. 14). Manufacturing them for another period will be a waste of resources thus after through analysis of the category and the purchasing behavior of shoppers the chocolate snacks company can embark on concentrating on certain categories that the shoppers find more appealing to them, a change-of-pace brand not seen in data set 2 not seen as the shoppers seen to concentrate on specific brands. The behavior of shoppers of purchasing multiple brands is not evident in this scenario thus the shoppers by their purchasing manners assumed to niche shoppers. The company thus ought to concentrate on producing only specific brand category instead of flooding the market with chocolate snacks that are not appealing to shoppers (Edwards & Smith, 2010, p. 17). What market implications can you think about by observing these data? Explain. The market implications applicable by observing the data include application of segmentation technique to the chocolate brand. The slight change of shopper’s behavior seen in the data may be as a result of financial constraint and changing times. By segmentation is necessary to ensure certain brand categories produced more in comparison to the brands that not purchased at all through out the year. This shows that some brand categories faced out of the market since the shoppers either purchase the product once or they do not purchase at all as seen in the data. This influenced by various factors like taste and preference and poor quality of the product. Applying segmentation mechanism influences the purchasing power of shoppers and thus the company should embark on using the technique to promote sales of specific brands (Gabriel & Galligar, 2010, p. 14). Application of innovative approaches to go along with the changing times promotes the performance of a product in the market, by analyzing the data the company can embark on innovative approaches since consumer taste and preference keeps on changing with the changing times influencing shopper’s purchasing behavior. Use of innovative approaches to various brand categories gives shopper’s faith to the product increasing their purchasing behavior. The company can also apply a market implication that targets more shoppers in all age groups, the purchasing behavior seen in the above scenario influenced by the company opting, to concentrate on certain age category that altering with the purchasing pattern. Making the products to be attractive to all age groups will motivate persons of different age groups to purchase the products, thus increasing company sales (Edwards & Smith, 2010, p. 17). The company can also embark on concentrating on improving the value of the product; continuous renovation of the value of a product influences the purchasing behavior, the strategy undertaken without jeopardizing the image of the product in the market. Value enhanced by application of price discounts, to ensure more shoppers attracted to purchase the product. Another market implication to use is taking a closer look at the distribution channel. At times, the distributors of products may be biased in their distribution mechanism hence barring other shoppers from getting access to the product. Distribution channels used by the company should be one that ensures the product distributed in a wide geographical area, an effective distribution channel increases sales since more shoppers are able to get access to the product (Edwards & Smith, 2010, p. 17). Embarking on advertising approaches may be another marketing implication that may influence the purchasing behavior. Through advertisement approaches, more shoppers are able to know about the product. If more shoppers will be aware of the product purchasing behavior will be influenced increasing sales (Edwards & Smith, 2010, p. 18). Technology has advanced considerably in the recent times, thus to promote a product a company can embark on using the internet and social networks to enhance product awareness. Increasing consumer awareness will manipulate the purchased behavior of shoppers increasing the sales of the product. Increased sales influence the profitability of a company which is the main objective of every company that seeks success (Chkuaseli & Gegeshidze, 2009, p. 169). Data set 3 gives the results of a discrete choice experiment about university choices of a sample of 1,400 students using the same design as discussed in lectures. There are three attributes – university size (A=Small; B=Big), Location (A=Australia; B=USA), and Tuition Fees (A=$20,000; B=$28,000) – and two levels per attribute are given. Analyze the data. The university students in their selection to choose the best university to seek influenced by university size, location and tuition fees. All the three attributes influenced the decisions of the students there are those who selected small university size with location being in Australia and at a cheaper cost of 20, 000. Either the size, location or the fee may have motivated these students. The tuition fee makes the university affordable and its size make it have few students thus the lectures at the university are able to provide the best services to students. Similar choice but with location being USA may mean that the students wants more exposure to the outer world, thus; they would wish for similar attributes of size and tuition fees but of a differing location. Those who based their choices on a small sized university located in Australia but of higher price, higher prices influence the choice by reassuring the students that the university may be of high quality compared to a university where the tuition fee is cheaper, higher prices associated with high quality. A choice that is similar to this but of a different location may mean that the student would prefer to study in USA rather than Australia based on diverse factors, for instance peer influence plays a key factor to the student choice of an institution. Relatives and friends who may recommend the university chosen to the student may also influence the student’s decision (Edwards & Smith, 2010, p. 17). The choice for a bigger size of the university may be as a result of resources. A bigger university provides most of the resources needed to an institution, thus; the student choice of a bigger size of a university institution may be as a result of hearsay about the university selected being of conducive environment to student’s learning (Chkuaseli & Gegeshidze, 2009, p. 168). The choice of a bigger sized university with a cheaper tuition fee may be as a result of financial background of the student. The background may make the student make such a decision ensure the tuition fee is affordable. Nevertheless, those who selected a similar attributes of size but with a differing location influenced by advertisement, advertisement play a prominent part in convincing the students to make certain choices. The advert may be so attractive and the student may be convinced that the university selected has the best services, and in a conducive environment (Edwards & Smith, 2010, p. 17). The graph below shows the choices against the number of students. ALTERNATIVE A 5800 ALTERNATIVEB 3200 ALTERNATIVEC 9400 Estimate the part worths 1. Small Australia 20, 000 2. Small Australia 28, 000 3. Small USA 20, 000 4. Small USA 28, 000 5. Big Australia 20, 000 6. Big Australia 28, 000 7. Big USA 20,000 8. Big USA 28, 000 Recent statistics about university enrolment indicate that a) Small US universities and b) big US universities will close down in the next few years. UniSA’s has employed you to understand what will be the most preferable alternatives in case this scenario will actually verify. What will you report to the Vice Chancellor? Give your reasons. Abstract Small and big US universities are in fear of closure in the near future various factors influence this fear. Students join certain institutions for various reasons; some influenced by their peers others friends while others relatives. The university institution must be careful with how it deals with the students so that a respectable image built. Economic deterioration, technological advancement, poor quality education among other factors pointed out to be the main factors influencing student turnover in an institution. The vice chancellor and the university management should look into detail to the factors influencing students’ turnover measures have to be taken now to avoid further future problems. Closure of any university institution significantly affects the reputation of the institution, and this will not only affect current students, but also old students in the employment sector affected (Ginsberg, 2011, p. 49). Table of Contents 1. Introduction 1.1 Background Information Provides the general idea as to why small US universities and big US universities may close in a few years. 2. Literature Review 2.1 Reasons for university closure An explanation of universities closing faced in a similar situation as small US universities and big US universities. 2.1.1 Declining economy 2.1.2 Deteriorating quality education 2.1.3 Existence of undefined syllabus 2.1.4 Technological advancement 2.1.5 Poor management 2.1.6 Existence of poor policy 2.1.7 Organizational strategy 3.0 Findings and Analysis Descriptions of findings from the investigation done and analysis of the findings 4.0 Conclusions 5.0 Recommendations Introduction Closure of universities has been the fear of most university chancellors in the US students has become so selective and easily influenced by people. Delicate matters without too much weight affect their decision and the choices they make. Care should thus be sought to ensure the students and their guardians are well convinced of positive reputation of the university institution. In a few years to come small US universities and big US universities expected to close down, alternatives have to be sought incase the negative expectations take place. The report aims at investigating the alternatives to be taken incase the worst occur. The report is necessary to the university management so that plans made to change the future negative expectations. The report will be of necessary help to the vice chancellor who will then communicate to the university management. Measures can be taken to deal with any factor that enhances the deteriorating of the number of students seeking admissions in universities. The report will mainly cover the reason why the small and the big US universities expected to close down in the next few years. The report will be limited to university students seeking admissions to various universities. Investigation conducted through making direct enquiries to the students expected to join the universities or those seeking admission (Ginsberg, 2011, p. 50). Literature review Declining economy Economist has pointed out declining economy to be one of the reasons universities may shut down, or rather the declining economy may influence students’ admission to a university institution. Increasing tuition rates at a time when the world is facing difficult economic times may adversely affect student enrollment into an institution. Diverse university programs that require an additional fee to new student also may result, to a constraint to parents who may not be able to afford the required fee (Chkuaseli & Gegeshidze, 2009, p. 168). Deteriorating quality education A well performing university that does not keep up with the developing technology will experience a fall in its quality, thus leading to a fall in the performance of students. Any university experiencing this problem will result to a declining number of student enrollments as students, and their guardians will seek for greener pastures where the level of education is of high quality. When a university concentrate on making profit instead of proving high quality education the institution is likely to experience a fall in enrolment of students at the university (Edwards & Smith, 2010, p. 16). Existence of undefined syllabus Any university that provides education through too much syllabus that is not well defined will be unattractive to students, thus the students will shy away from seeking admission to the institution. Too much syllabus will be cumbersome to the students learning, thus; they well not be motivated to learn. Instead, the students will be rushing to finish the syllabus for examination purposes. After completing the university education, the world at large expects the student to be more practical. Since the certificates showing the qualifications of a person are not enough to prove the validity of the students’ qualification. A number of graduates have remained unemployed over the years because of their poor deliverance in the job market. Most employers are currently seeking for graduates with outstanding grades and those who are more practical. Therefore, guardians and students will therefore, seek for university institution with a good reputation of providing both quality education and with practical experience (Gabriel & Galligar, 2010, p. 12). Technological advancement The global world provides education online this may influence a number of people to opt for online degree since one can attend school and at the same time do other things. This has significantly affected students’ enrolment to universities not offering online education option, online education has the advantage of being cheaper and a person learns at their own comfort (Chkuaseli & Gegeshidze, 2009, p. 169). Poor management A university institution can be poorly managed to lead to falling performance of students. Poor management may be as a result of the institution being controlled by an incompetent person or group who are not sure of their job. A poorly managed institution will lead to closure of the university in the near future as the students seek admissions to a poorly managed institution (Edwards & Smith, 2010, p. 17). Existence of poor policy A successful institution ought to have effective established policies that would assist it to be successful in everyday operations. Well established policy help the students, to follow the university rules and to respect the set laws. The university staff will be aware of the objectives stated in the university policies. Poor developed, policy will result to non achievement of the university objectives and students will result to non respectable people in society, such an institution will make most guardians seek alternative institutions where university policies properly stated (Ginsberg, 2011, p. 49). Organizational strategy A well build organizational strategy influences a respectable image of the university in addition to outstanding performance. Students will thus seek an institution with visible strategies. An institution with an appropriate organizational strategy expected to be successful, and a brilliant performer thus students will be attracted to seek admission from such institutions. Organizational strategies are to show parents and guardians of the approaches the university applies in their quest to be successful. A poorly strategically organization lacks set goals and objective approaches, even though the organization comes up with appropriate objectives, and goals without well established approach mechanism achieving the set objectives are going to be hectic. It is thus necessary to have well established approaches for a successful university (Gabriel & Galligar, 2010, p. 13). Findings and analysis There are a number or reasons that can influence the decline of students’ enrolment in the university which in one way or another may result, to universities shutting down. Small and big universities in the US may shut down in a few years if the institutions do not the following; the continued declining global economy may influence students’ enrolment since it may be difficult for guardians to raise the tuition fee. A number of students listed this as the main hindrance to joining university education. Some students listed cumbersome syllabus as another factor to their transfer from the small and the big universities in the US. Doubtful syllabus makes students lose interest to education and most will opt to miss lessons, these will in future results to poorly educated adults. Therefore, guardians will opt to take their children to universities with better facilities and well defined education system. Institutions not embracing the technological advancement needed in every institution are likely to face the problem of lower students’ turnover. Poor management will also influence student turn up in an institution, since every student will want to be associated to an institution well managed. The closure of the universities may also be as a result of existence of poor established policies which may hinder the achievement of university goals. Poorly developed strategies will also result to poor image of a university resulting to poor student turn over. Various factors influence student enrolment into universities, thus; the small and the big universities in the US if they want to solve the problem of closure in the future they ought to look at the factors influencing the lower students’ turnover. Economy deterioration pointed out as the crucial factor that influences students’ enrolment into universities. Many guardians are complaining of the increased tuition fees with the declining economy. To maintain standards, in the globalized world the universities ought to ensure financial aid is available to students who cannot raise the whole of the tuition fees. The government, sponsors and well wishers need to chip in to ensure enough financial aid availed to students to confine them into the students otherwise the institutions will be facing the danger of closure in the near future. Lower students turnover will result to closure of the universities as the providing education to few students will be a waste of resources and manpower. Dubious syllabus will be a waste not only to students but also to the society, since after completing the university education the students expected to be prominent people in the society. Students with the right certification but are not practical are useless to the society, and thus they will remain unemployed and this may result to criminal behavior. Most guardians will thus through hearsay seek other university institutions that provide better education for their children. Technological advancement is essential in any learning institution, thus; the universities need to embrace technological development to ensure the institution staff and students are up to date. Introduction of programs that are friendly to students is a basic necessity the programs ought to be stimulating and helpful to student’s growth. The programs should be of a reasonable fee so that guardians may not find it hard to pay for the programs. The universities should ensure the management of the university well managed and the people controlling it should be of sane mind and the right quality. The universities should come up with reasonable policies that will ensure the university runs in the right direction. Policies are crucial in any university institution so that the institution can be able to achieve the set goals. Policies give a sense of direction to any institution thus; the universities should advocate establishing reasonable policies to avoid closure of the universities in the future. Conclusion The investigation found out that most students influenced by various factors when selecting the university institution of their choice. Economic decline, technological advancement, undefined syllabus and poor quality education influence the student choice. Small and big universities thus expected to work on the factors, to ensure the student’s enrolment at the university not affected. Closure of any institutions alters investors virtuous wish for the institution, thus the management of the school ought to look in detail at the factors, measures taken to deal with the factors influencing student’s choice. The universities ought to ensure students convinced to remain in institutions or rather convinced to seek admission to the institutions. Financial aid sought out to assist all students in financial difficulties. Tuition fee should also be reasonable and should conform to economic difficulties facing the world at large. Global technology profoundly influences the running of any institution it is thus crucial for any educational institution to ensure technological advancement recognized in the institution. This assures students that they are up to date with the rest of the world. Once all the above factors thoroughly looked at and dealt with on time. This will eventually curb the negative expectations of closure of the university. The vice chancellor with the help of the university board can find solutions to the problem in hand to avoid future closure of the universities. Recommendations Financial aids should be established in the universities to assist students in economic difficulty. Online education and technological advancement should be established. Use of well arranged syllabus with practical experience to ensure students are well learned. Reference Chkuaseli, K., & Gegeshidze, T. 2009. RELATION OF THE STATE AND PRIVATE UNIVERSITIES WITH THE LABOR MARKET. (English). Problems of Education in the 21st Century, 12, 168-174. Edwards, D., & Smith, F. 2010. Supply issues for science academics in Australia: now and in the future. Higher Education, 60, 19-32. Gabriel, P & Galligar, D. 2010. THE TEACHING CAPACITY MODEL: A TOOL FOR STRATEGIC PLANNING IN HIGHER EDUCATION. Educational Planning, 19, 12- 21. Ginsberg. B. 2011. ADMINISTRATORS ATE MY TUITION. Washington Monthly, 43, 49-56. Read More