International Marketing Report - Assignment Example

?International Marketing Report Table of Contents International Marketing Report Table of Contents 2 PESTLE Analysis 4 Political 4 Economic 6 Sociological 7 Technological 8 Legal 8 Environmental 9 SWOT Analysis 9 Strengths 9 Weakness 10 Opportunities 11 Threats 11 TOWS Analysis 11 TOWS Matrix 13 SMART Objectives 14 Specific 15 Measurable 15 Agreeable 16 Realistic 16 Time 16 Key Performance Indicators 17 Market Analysis 18 Conclusion 21 References 23 PESTLE Analysis The analysis of the macro environment can be performed using the PESTEL framework. The PESTEL framework is an acronym for Political, Economical, Sociological, Technological and Legal factors. The analysis of these factors would help in uncovering the market information with regards to the above stated factors for a particular region. Political Administrative Divisions: United Kingdom includes England, Scotland, Wales as well as Northern Ireland. The nation is considered to the pioneers in the modern civilisation with the capital city London being one of the largest and most important political hubs of the world. Type of Government: UK has a constitutional monarchical form of government and is part of the Commonwealth of Nations. The constitution of the nation is based on the traditions of the common law and is influenced by the early Roman and continental laws. Administrative Machinery: The administrative machinery of the nation is divided into the executive, legislative and judicial branches. The Queen holds the position of the head of the state and is closely assisted by the Prime minster. The prime Minister is also aided in the decision making process by his council of Ministers who manage specific portfolios are also elected democratically (CIA, “United Kingdom”). Education Policy: The government of United Kingdom includes education as one of its most primary areas of concern. This is important considering the fact that approximately large percentage population of UK s in the age group of 18-22 years. In addition UK is also considered to be one of the most favoured destinations for foreign students especially from nations like China. This is important as they contribute a large amount towards the economy of the nation. The government of the nation realises that education would hold primary importance for the economic and social well being of the nation. The government has been known to pursue policies that seek to promote the spread of education among the masses. The government also provides large scale financial assistance to educational institutions for various degree and professional courses. Specifically the government is trying to encourage educational institutions to develop more flexible programs that are largely popular with the international students. The government also proposes to develop greater e-learning modules which are gaining large scale popularity among the students across the world. The administrative machinery of UK is divided into four zones. Out of these zones England has the highest number of educational institutions and higher universities followed by Scotland. Education in UK: Another interesting aspect in the educational sector in UK is that there is only one private University in the nation (University of Buckingham) rest other are directly or indirectly controlled by the government. The educational institutions are also divided into three layers based on the degree of prestige with regards to academics. These three layers are the raffles group comprising of the best universities and educational institutions followed by the red brick and the post 1992 universities. Funding for these state run universities are done and managed by the Federal council of the government which foots 39 percent of the total funding requirements of these universities. There is no provision for endowments are other special offers. The government also encourages corporate funding for the academic institutions through tie ups and donations by the private business organizations (Go, p.15). Figure 1: Educational Institutions in UK (Source: Go, p.18) Economic Macro Economic Indicators: Economic factors include aspects like state of economy, employment options etc. This is important especially in the context of international students who normally select a nation for higher studies based on the economic health of the nation. UK scores high in this aspect which is perhaps the reason that makes UK one of the most favoured destinations for academic studies. In the European region UK ranks among the top three major economies after France and Germany. The GDP levels in terms of purchasing power parity stands at approximately 2.189 trillion as of 2010 with the economy poised to grow by 1.6 percent on an annual basis. The services sector has the highest contribution to the economy followed by industries and agriculture. The rate of unemployment is about 7.9 percent of the total population (CIA “United Kingdom”). Education Industry and Economic Growth: The aspect of economic factors in case of education sector relates mainly to the funding options available with the academic and educational institutions. A growing economy offers greater job prospects which in turn make the universities an attractive place among the students to realise their dreams of living in prosperity. This accentuates the importance of macro-economic aspects in the growth of universities and academic institutions. Sociological Demographics: UK is one of the most advanced nations of the world. According to the American intelligence agency CIA the total population of UK is approximately 62, 348, 447 individuals as of 2010. Most of its population falls within the age group of 15-64 years. The population is expected to grow at 0.563 percent as of 2010. UK has one of the highest rates of immigration of approximately 2.61individuls per thousand of the population. The nation is the birthplace of the English language which the largest spoken language of the nation. Presence of multi cultural groups adds to the popularity of UK as a destination for education among the students across the world. High literacy levels of 99 percent supplements to the popularity of the nation as an attractive destination among the overseas students. Impact of Culture and Traditions: Social issues like financing of education have emerged as one of the most contentious issues in the management of educational institutions. There have been major issues in areas like Scotland with regards to the aspect of funding higher education. Aspects like education loans have evoked mixed responses as many individuals have a social stigma attached to the aspect of funding their educational expenses (Moodhall, p.42-45). Technological Technological Developments: UK is the birthplace of industrial revolution which signifies the technological expertise and excellence of the nation. Even today the nation continues to expand technologically and is still one of the most technologically advanced nations of the world. Technology has a mixed impact on the educational industry of the nation. Critics have pointed out certain positive as well as negative traits of the impact of technology in the field of higher education (Universities UK, p.12). Legal Judicial System in UK: Legal factors are largely known to influence the functioning or an organization. Presence of an independent and impartial judiciary is perhaps one of the most important pre-requisites for any organization. UK has a strong and independent judiciary which is comprised of the Supreme Court which is the apex court of the nation along with other lower and subordinate courts. Legal Framework: The legal system in UK is influenced by the traditions of the early Roman laws. The constitution of the nation is periodically amended to meet the growing demands. International Legal Framework: The nation has accepted the jurisdiction of the International Court of Justice with certain exceptions (CIA, “United Kingdom”). Environmental Sustainable Environment: Environment plays a major role in case of academic institutes. University of Bradford must design a campus that is safe and hygienic for students. Green campus and promoting natural environment would go about a long way in ensuring greater sustainability of the University. Mandatory Regulations: Every organization operating in UK must adhere to certain norms with regards to carbon emission and other environmental laws which include reducing the carbon footprint etc. SWOT Analysis SWOT is an acronym for Strengths, Weakness, Opportunities and Threats. The SWOT analysis is a useful tool that helps a firm to identify its areas of relative strength and weakness. Strengths The most important strength of Bradford University lies in the fact that it posses the best academic brains as faculty members. The faculty members represent a rich blend of experience and knowledge which is vital for any academic institution. The University also has a well developed infrastructure including presence of well stocked libraries, subscription to well known journals and online databases etc. The University has been in the field of academics for the past forty years and has a large bouquet of courses for the students. The student friendly and cosmopolitan culture within the organization constitutes another strong point of the University. This aspect helps in drawing a large number of international students from different nations. In keeping up pace with the trends of modern education the University has over the time created provisions for launching new courses such as mobile computing etc. The University has state of the art infrastructure to provide academic knowledge to its students (University of Bradford, “About the University”). University of Bradford also enjoys a location advantage as the city of Bradford is well linked with the other parts of the country. Moreover UK being one of the economic powerhouses of the world makes it even more popular with both domestic and international students. The University also has tie ups with various institutions both in the country and abroad for students as well as faculty exchange programmes. The University also has a cell that is dedicated towards community based learning programs. For example in the recent year the University received a grant of 75000 pounds for developing community learning programs. This shows the social responsibilities of the University and also highlights its service towards the social community as a whole. As a part of improving the academic infrastructure and to induce greater corporate linkages the University opened up its ‘Escalate Centre which is specifically designed for the corporate employees. It has also entered into tie ups with different business organizations to induce greater corporate participation and to impart practical activities in its learning modules. Modern assessment techniques are also being followed at the University with the development and adoption of the ADEPT (Academic Development to Enhance Professional Teaching) which a technological innovation in the field of student assessment. This would provide greater efficiency and would also contribute to the learning process at the University (University of Bradford-a, “Key Developments”). Weakness Every organization operating in the world has a set of advantages and disadvantages and University of Bradford is no exception to this rule. In spite of having adopted some of the best practices the University also has certain drawbacks which include high cost of education which debars many deserving and meritorious students from pursuing their academic careers at the institutions. Opportunities University of Bradford is the first University to promote ecological awareness in its campus. This has ensured a green and hygienic environment which is not available with many other universities in the nation. The vast array of courses of the University also makes it highly popular among students with diverse academic interests. A well defined and development research centre also reflects large scale opportunities at the University for pursuing higher education. The University also boasts of a strong network of alumni who are present in well established positions (University of Bradford-b, “Welcome to the University of Bradford”). The large and talented pool of faculty members in the University also serves as attractive aspect for international and domestic students. This is highlighted by the fact that the University has received contracts for approximately 14 million pounds value for research purpose. The University was also ranked high in terms of repute of the faculty and staff most of which were found to be of international standards (University of Bradford-a, “Research and Knowledge Transfer”). Threats The main threats to Bradford University include its high cost of education which serves as a hindrance for many students both in the domestic market and abroad to pursue their academic interests in the University. In addition competition from other universities also serves as a threat to the University with regards to its aspect of drawing students both domestic as well as international. TOWS Analysis TOWS analysis is an extended form of SWOT analysis with difference being that this form of market analysis takes into account the external factors while the SWOT analysis takes an analysis of the internal factors. TOWS are an acronym for threats, opportunities, weakness and strengths. TOWS Matrix TOWS Matrix Opportunities (External) Favourable Economic growth Long Associations with education Well defined academic infrastructure Good career opportunities Innovations and flexible learning modules Threats (External) Overseas campuses of universities High cost of living Development of indigenous Universities in lucrative markets Economic recession Strengths (Internal) Well trained faculty members Library facilities Campus infrastructure Long association of the University in the field of education Cosmopolitan Culture New courses designed to meet the present needs of the industry Flexible learning modules Tie ups Use of technology aided tools Excellent research wing Visionary management Good action plan Strength and Opportunities Leveraging the strengths like faculty and infrastructure to cash in on the demand of students. A cosmopolitan culture in the campus could be used to attract international students. Flexible courses would attract people who are presently employed. A good research department would attract the best minds from the nation and abroad. A clear action plan would help to leverage the demand for quality education. Good economic growth and career prospects would attract lot of international students, the university can leverage its academic excellence and innovative and well designed learning modules to meet the demands of the students both domestic and abroad. Strengths and Threats The action plan includes provision for attractive means of students funding. In addition ear while you learn options also exist for students who wish to fund their expenses. Well trained faculty, flexible learning programs and campus infrastructure could be used to target individual who wish to enhance their skill sets during periods of job crunch in the market. Long years of expertise and favourable location could be used to address issues of indigenous universities in India and China. Weaknesses (Internal) High cost of education Lesser number of student exchange programs Weakness and Opportunities Excellent career options in UK can address the issues relating to high cost as a good career option in future ensures good return on investment undertaken by students for pursuing education. Flexible and a good curriculum serve to provide unique skill sets which are a lifetime asset for any individual and can serve to undermine the initial expenditure. Long association in the field of education ensures that students get the best possible learning experience that can be used to undermine the weakness of fewer tie ups. Reducing Weakness and limiting Threats Flexible financing options for students to meet the expenditure to incur education. Ensuring tie ups with business organizations to provide greater practical experience for example an internship program with a live project could add a greater value and also address issues related to tie ups. Initiating tie ups with renowned universities in abroad that would provide international exposure. Student exchange programs are one such option that facilitates international exposure in developing skill sets and personality of students. Paid internships in the university can also address issues related to high cost of living. Favourable economic conditions coupled with quality learning would make the university more attractive as compared to indigenous universities in the developing nations like India and China. . SMART Objectives SMART is an acronym for Specific, Measurable, Achievable, Realistic and Time. This tool helps in framing useful objectives for an organization with regards to its future strategies. SMART as a strategic tool is being largely used by strategists at business organizations to frame corporate objectives. The present section would analyse each of the points of SMART objectives with regards to the University of Bradford. Specific Focus is one of the most critical aspects while planning a set of objectives as there can be a wide range of areas to be put into consideration. Hence for delivering an excellent output it is necessary to put focus on specific areas which are deemed to be of priority to a firm. Specificity of objectives could be done by dividing the total set of objectives into smaller units so as to segregate among the set of objectives available to a firm. This would help in providing greater focus in an attempt to gain excellence at the objectives. It would also help in quantifying the tasks so as to determine as the efficiency of the firm in meeting the objectives with regards to achievement of the tasks (The Careers Research and Advisory Centre, p.7). In case of the University of Bradford specificity in setting up objectives would include identifying areas which would be given maximum importance by the University. It is also important that the University segregates the objectives and the aims. The objectives must be defined in a manner that would tend to serve as a directive to achieve the aims. Measurable The aspect of ‘measurable’ implies quantifying the set of objectives so as to have a fair measurement of attainment of the objectives. This aspect would also determine the time frame in which a task would be completed along with the degree of success in attainment of the objectives (The Careers Research and Advisory Centre, p.7). The University of Bradford must formulate objectives in a manner that it can be quantified. For example it should specifically set the target students rather than specifying on just getting ‘more’ number of students. Quantification of the objectives would give a fair appraisal of the strategies that have been undertaken to achieve the objectives. It should also aim to attach a deliverable item with each objective. This would help the University to link the intangible items with some sort of quantitative measure which would serve to indicate that the objective has been successfully executed. The action plan of the University envisages an annual growth of 6 percent students (non EU) of which 2 percent would be non UK based students. Agreeable A firm consists of a large number of shareholders and it is the primary aim of the strategists to device strategies that would enhance the shareholder’s value. Hence it is important that the shareholders have a clear understanding of the objectives framed by the University. In case of government sponsored universities it also includes government as they are a vital part of the organization. This would enhance the confidence of the shareholders who are the most important members for an organization. In case of Bradford University it would include briefing and framing an objective plan that would serve as a guiding template for the future years. The University already has framed up an action plan for 2009-2014 that would serve as a guiding template for the University to achieve its objectives (The Careers Research and Advisory Centre, p.8). Realistic Realistic objectives include setting up objectives that could be achieved and sustained on a regular basis. The five year action plan of University of Bradford has been derived after taking statistical reference from the British council. In addition the University has also made appropriate ad realistic strategies like visiting overseas destinations which have a large number of students studying in the University so as to promote itself in the market. Time This aspect includes attaching a time frame with regards to the completion and attainment of objectives. Inclusion of a time frame allows a better monitoring and planning of the action plan which is designed to fulfil the objectives. University of Bradford’s objectives are well stated under its action plan which has been planned for a span of five years beginning 2009. The plan includes the objectives as well as an action plan that would serve as a guiding template for the University over this duration. Providing a time frame has helped the strategists to plan and devise forecast effectively so that realistic and achievable objectives could be set up for driving the University successfully in the long run. Key Performance Indicators Key Performance Indicators include factors that are essential towards the success of an organization. There are several indicators that are available to a firm to analyse whether its strategy and plan of action is appropriate in meeting the objectives defined by the organization. The large scale competition among the Universities has made it very important for analysing and determining the Key Performance Indicators. This would help them analyse their strategies with regards to the fulfilment of the objectives stated in the action plan. The key performance indicators for University of Bradford would include many aspects. These would cover diverse areas like infrastructure, quality of education and curriculum, performance of students in organizations after completion of the course, faculty as well as fess and other related factors. In addition the number of applicants applying for the University could also serve as a Key Performance Indicator as it would help in determining the attractiveness of the University among the others in the nation. Student to faculty ratio should be set in a proper manner so as to ensure enough faculty guidance both individual as well as classroom so as to provide greater value to the students. The quality of faculty is another important indicator for the University. A well talented pool of faculty resources would ensure better environment as well as enhancement of knowledge levels of the students pursuing their academic interests in the University. Finally one important indicator that largely determines the success of a University is the number of research and publications published by the University. A large bouquet of research publication naturally reflects the strong academic background of the University which the most important performance indicator or any University. In case of University of Bradford a strong emphasis on research naturally generates a strong point for the University so as to make it attractive among the prospective students (Iacobucci & Tuohy, p.236). Market Analysis There have been significant improvements in global academic industry since last decade. Globalisation and technological advancements has led to bring this major growth and developments in the academic sectors. Besides, people’s disposable income has risen significantly due to increasing economic condition and people are more spending on their educational expenditures. Besides, education in the foreign universities has become a notable trend. In this respect, developed countries like UK, U.S. and Australia etc are very famous for their education. The governments of these countries have taken necessary steps for developing educational system and hence, most of the overseas students aspire to pursue their higher education from these countries. This paper primarily deals with the University of Bradford and this section attempt to provide a market analysis of higher education in respect of overseas students. In UK, the higher education has become commercialised that leads to intensify the competitiveness among existing universities. UK is very famous for its world renowned universities like Oxford, Cambridge, Middlesex, Cardiff, Durham etc. Due to availability of such prestigious universities, a large number of foreign students are attracted to this country for pursuing better higher education. According to a report, during the latest academic year, the number of overseas students in UK has increased. UK academic sector has experienced a rise of 11% in foreign students during 2010. Currently, more than 107,000 overseas students from different countries are studying in UK. In case of postgraduate full time courses, the number of overseas students rose to 132,475 comparing to 131,590 in previous year (Vasagar, “Universities set up London bases to attract foreign students”). However, due to these increasing opportunities in UK academic sector, most of the universities are trying to attract more number of foreign students from different target countries. Therefore, in case of Bradford University, it must target and analyse specific potential countries from which students are willing to pursue their higher education from UK. British Council has presented a report forecasting the probable foreign students coming to UK for higher education from different parts of the world. The following table shows the projected growth of international student coming to UK. Table 1: Projection of International Students Coming to UK (Source: Bohm et al, p.6) The above table presents a forecast of availability of international students in UK from different countries and this projection is based on historical data. It is expected that the performance of UK academic industry will rise and its efficiency, quality and attractiveness will increase. By the end of 2020, the number of international is expected to reach at 870,000 at the annual growth rate of 4.7% per annum (Bohm et al, p.6). The following figure graphically presents the demand as per the regional composition. Figure 2: Global Demand of International Students in UK academic Industry (Source: Bohm et al, p.6) According to the above figure, students from the Middle East countries will take lead followed by non-UK European Students. However, the rate of non-UK European students is expected to decrease in the next 10 years. In the light of the above data and based on the discussions, University of Bradford should target Middle East countries and Asian countries like China or India. Middle East countries that include Gulf countries are one of the major potential markets for UK academic sectors. University of Bradford must identify and analyse these markets for attracting a large number students from these countries. The economic condition of Middle East countries especially the Gulf countries like UAE, Saudi Arabia, and Qatar etc are strong economy and their economic condition is growing constantly. However, educational systems in these countries are not maturated like other developed nations. Hence, most of the students from these countries are aspiring to pursue their higher education from foreign countries. On the other hand, Asian countries like China, India, and Pakistan etc can be a major potential market for University of Bradford. These countries are developing nations, and in recent years, their economic condition has improved significantly. In future, it is expected that with further enhancements in economic condition, the people of these countries will enjoy higher purchasing power. It will help them in availing higher education from the foreign universities. Conclusion The analysis of the University reveals considerable potential for the University in the market with regards to attracting students both domestic as well from abroad. The well established faculty base ensures a good academic knowledge base for the University. This is evident from the fact that most of its faculty members have the reputation of being in the international standard with regards to imparting quality higher education to the students. In addition to it the excellent infrastructure of the University also adds to its popularity as an attractive destination for education. It also boasts of a strong network of alumni who have achieved excellence in the outside world. The action plan framed for the upcoming five years also pays considerable attention towards modernising and improving the level of education in the University. University of Bradford also enjoys a location advantage as it is located in a nation that is one of the pioneers of modern education. In addition the favourable political and economic environment also ensure as good career opportunity for the students once they have passed out of the campus. The University also has a well designed framework for promoting academic research. Unique and scientific methods of education and training as well as having an updated curriculum that tends to match the requirement of business organizations and other institutions also emerge as a strong point for the University. However certain drawbacks like high cost of education still serves to cast a dark shadow over its achievement as many talented students are deprived of quality education. Hence, the key to success lies in effectively designing an action plan that would try to serve the educational interests of the students from different walks of life. This would not only serve to make it an attractive destination for pursuing academic interests but to also serve the sociological interests of the society. References Blass, E., Jasman, A., & Shelley, S. Challenging assumptions underpinning the scenarios. 2009. Visioning 2035: The future of the higher education sector in the UK. 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