Education Goes Global - Coursework Example

?Education Goes Global Executive Summary The region of Africa, as a developing economy, depicts a great potential for business growth with respect toeducation segment. Over the years, the region has shown constant development in the educational sector. Due to this reason, London School of Business and Finance (LSBF) is planning to expand the business in Africa. The expansion would be accomplished through the way of distance learning entry mode. In Africa, LSBF will target both graduate as well as undergraduate students. LSFB will use demand oriented pricing strategy in order to market the education services in Africa. In order to reach to the target market, LSFB will use advertisements, personal communications and exhibitions. The key objectives for LSFB in Africa include enhancing the market share in order to augment the number of students served by it, to enhance the brand value, to increase the revenue and to enlarge the number of campuses in the education segment of Africa. Table of Contents Executive Summary 2 Situation Analysis 4 Company and a Case Study Background Analysis 4 Customer Segmentation and Analysis 4 Competitor Analysis 7 Collaborators 8 Climate 8 PESTLE Analysis 8 SWOT Analysis 9 Conversion Strategy 10 Matching 10 SMART Marketing Objectives and Objectives for Going International 10 SMART Marketing Objectives 10 Marketing Mix Strategies and Tactics 11 Conclusion 14 References 15 Situation Analysis Company and a Case Study Background Analysis London School of Business and Finance (LSBF) has developed an ethos which facilitates the students to learn, nurture as well as attain overall success in their future life. The goal of the organisation is to be a distinctive choice by the global students as one of the most creative as well as ambitious destinations. The focus of the organisation is to endeavour for excellence as well as it trusts in the principle of education through different types of innovative industry relevant programmes for providing academic, professional as well as personal success in life of the global students. In relation to culture, the organisation is focused in both vital constituents such as educational as well as technological perspectives. With regard to educational culture, the organisation is confident on ascertaining continuous research for growing rapidly as a thinking community. Apparent strengths of LSBF include its excellent academic reputation through state-of-the-art academic facility along with collaborating and monitoring the global students. In terms of weakness, it can be said that oversight for designing of requisite programmes at times creates inadequate understanding for the students. With regard to market share as well as organisational size, LSBF has spread its strong foothold in more than 150 countries which has influenced above 25,000 international students and it also provides 120,000 online programmes on various academic segments [1] (London School of Business & Finance, 2013). Customer Segmentation and Analysis Market segmentation includes dividing the market of possible customers into similar subgroups. Segmentation is a vital aspect because it helps to target those customers who fit best with the organisational objectives. In other words, LSBF needs to segment the market of potential candidates into subgroups (Kusakci, 2010). There are several ways through which an organisation can segment the market such as behavioural, demographic and psychographic. With respect to LSBF, demographic segmentation will be followed. Demographic segmentation involves dividing the market into gender, age, income and occupation among others (Martins, 2003). The potential customers for LSBF would be high school students as they would further be enrolled in studying business or finance courses. Based on the data of UNESCO Institute for Statistics, in the year 2007, about 761090 students had been enrolled in higher education in public schools of Africa, representing 1.6% of entire population. Most of the students who enrol into higher education belong to the age group of 20 to 24 (Council on Higher Education, 2009). With respect to the field of study, it can be observed that male candidates prefer to register in the areas of science, engineering and technology. In 2007, about 57% of students in these areas of education were male. On the other hand, female students dominate in the fields such as business, commerce, management and social sciences (Council on Higher Education, 2009). The following figure will show the proportion of enrolment in higher education in Africa in the year 2007: Source: (Council on Higher Education, 2009) The distance education also plays a vital role in the higher education segment. In the year 2007, 36.7% students of Africa had registered in distance education program. Traditionally, distance education has attracted adult population of learners, however, in recent times younger students have been observed to enrol in distance programs. From 2004 to 2007, students belonging to the age group of 20-24 had demonstrated 31% rise in terms of preference for distance education programs, while students belonging to the age-group of 30-39 had demonstrated an increase of 14% in the same period (Council on Higher Education, 2009). The following figure will depict the age demographics of students in distance education from 2004 to 2007 in Africa: Source: (Council on Higher Education, 2009) From the perspective of students, the fee structure plays a vital role in deciding to undertake higher education studies in Africa. It is worth mentioning that there have been protests made by the students every year over the fee increase. Thus, universities in Africa depend on additional sources of funding. Higher education in Africa is funded by the National Department of Education. In 2007 to 2008, the complete budget for higher education was almost R13.3 billion which accounted for 0.65% of Gross Domestic Product (GDP) (Council on Higher Education, 2009). Competitor Analysis With regard to competitor analysis concerning distance education, initially there is a requirement to highlight the name of the University of South Africa (UNISA) as a dominant competitor. In relation to the statistics presented in 2007, UNISA had 239581 enrolled students for distance advanced education which was 83.4% of those who were studying in the distance learning courses. In addition, for defining of market position, there is also a requirement to highlight the names of other strong competitors in the global distance education including North West University, the University of Pretoria as well as the University of KwaZulu-Natal among others. Thus, to build a good market position as well as image, the organisation i.e. LSBF should be very research oriented for identifying the requirements of the students along with formulating a strong competitive strategy (Council on Higher Education, 2009). Enrolments Made in Distance Learning Program in 2007 (Council on Higher Education, 2009) In terms of strengths of the competitors, it is determined that higher education providers such as University of South Africa had enrolled a vast number of students in distance learning segment. Thus, it can be said that these universities have already been a preferred choice for a number of students. Moreover, the sustained brand image through the offering quality education in an assortment of courses is a vital strength of these competitors of LSBF (Council on Higher Education, 2009). With regard to weaknesses, it can be highlighted that the leading universities in Africa do not possesses the extent of facilities and innovative distance learning programs in the segment of professional courses as offered by LSBF. This can be a distinct advantage generator for LSBF (Council on Higher Education, 2009). In terms of market share, the University of South Africa possesses the maximum preference of the students. Thus, it has attained greater share of the market as compared to other rival higher educational service providers (Council on Higher Education, 2009) Collaborators In relation to subsidiaries as well as joint ventures made by LSBF, it is required to underline the name of e-Cornell for providing online distance education in the new global markets such as Africa. LSBF and e-Cornell have already publicized a strategic joint venture to deliver executive education through the procedure of e-learning. The management authorities of both the organisations want to efficiently utilise the global distribution network of LSBF in over 150 countries. LSBF is a booming global business school with over 25000 students in the various continents (Prweb, 2013). In addition, the organisation i.e. LSBF has efficient strategic academic partners including Bradford University as well as University of Central Lancashire among others for increasing the efficiency of the educational programmes provided by it. With regard to the distribution of educational services, it includes various programmes such as financial management, human resources management, hospitality as well as food service management, project leadership and system design along with other management essentials among others. Thus, in the African region the organisation can obtain sustained leverage through the effective collaboration of its prevailing partners. Distance learning program needs to continued focus and efficient use of technological aspects, thus e-Cornell can be a major joint venture partner in Africa as well (London School of Business & Finance, 2013). Climate PESTLE Analysis In terms of macro environmental analysis of Africa, PESTLE analysis is an effective marketing tool which can facilitate to determine the scenario prevailing in the region especially in the education sector. In relation to political aspect, Africa is a democratic country which is especially focused on developing the higher education sector. Thus, political support unquestionably will be helpful for LSBF to increase higher educational service in the distance education segment (African Union Commission, 2009). With regard to economical aspect, Africa had also been significantly affected due to the recent global economic crises. However, presently, as a part of BRICS nation the economy as well as business opportunities of Africa especially South Africa is growing. Therefore, this particular global business exposure of Africa will be facilitating to create a high demand for the business studies. Thus, in terms of this economic context, LSBF easily can enter in the African market for providing distance higher education (African Union Commission, 2009). In relation to social as well as cultural factors, the need for obtaining quality higher education has become one of the foremost aspects in African region. The governments of the nations in the region have started to render adequate focus on ensuring that the population is well educated so that they are able to meet the global challenges (African Union Commission, 2009). For mingling with global business world, Africa imports a number of invaluable hi-tech technologies in the region. Technological development unquestionably will be quite helpful for LSBF to provide distance education service as well as on-line programmes in the region (The Herald Online, 2013). With regard to legal aspect, the department of education or basic education in the different nations such as South Africa looks after the required activities for distance learning programs. Thus, LSBF needs to obtain adequate support from them (African Union Commission, 2009). Furthermore, in relation to environmental facet, growing environmental agenda as well as awareness in Africa definitely will be helpful for LSBF to ascertain sustainable development of the educational services (The Herald Online, 2013). SWOT Analysis In relation to internal as well as external analysis, SWOT analysis is an effective tool which can facilitate to comprehend different crucial factors. Strengths Presence in over 150 countries 25,000 student base World class experienced facilities 120,000 programs State-of-the-art academic facility Global academic partner (John & Learning, n.d.), [1] (London School of Business & Finance, 2013) Weaknesses Oversight with regard to designing academic programmes Lack of research in relation to elementary understanding of the students of the different continents (John & Learning, n.d.) Opportunities Growing economy as well as international business exposure Political and legal support for providing higher education in Africa A definite prospect for acquiring knowledge about international study patterns as well as culture LSBF can obtain strong foot-hold in Africa through providing business management as well as legal distance based education (John & Learning, n.d.) Threats Various global universities that have already created a good image in Africa in the segment of distance higher education including University of South Africa, North West University, the University of Pretoria as well as the University of KwaZulu-Natal among others (John & Learning, n.d.) Conversion Strategy In relation to the conversion of weaknesses to strengths, the marketing team of LSBF should be more research oriented to know effectively about the educational segment of Africa. Through proper research understanding, the basic requirements of the students can be obtained which will be helpful for the organisation to design effective educational programmes and methods of attracting the students. Furthermore, this strategy also will be helpful for increasing the awareness among the students. On the other hand, for converting the threats into opportunities, LSBF should aim to provide quality education service with minimum extent of scope for any complaints form the offered courses. It also needs to provide varied learning sessions which can enable it to attain the preference of a larger consumer group. These aspects can enable to mitigate threats and augment the available opportunities (John & Learning, n.d.). Matching In relation to matching the newly created strengths of LSBF with opportunities, a joint venture based operations in the African region with e-Cornell, Bradford University along with University of Central Lancashire among others would be helpful. It would enable LSBF to meet the requirements of quality distance learning service in a more efficient manner (John & Learning, n.d.). SMART Marketing Objectives and Objectives for Going International SMART Marketing Objectives The key marketing objectives of LSBF to enter in the market of Africa are: To enhance the market share To increase the number of students of distance education To enhance the brand value of the organisation in African education segment To increase the revenue To augment the number of campuses in the education segment of Africa There are several models which can be used by LSBF to enter in the educational segment of Africa such as sole ventures, collaboration and partnership and non-traditional delivery model. Every entry strategy has its own characteristics with respect to risks and opportunities to enter in the international segment. Frequently, international businesses are designed progressively or through alliance, however without an outsmarting governance and accuracy model in the institutional level, these strategies can generate unforeseen risks and complications for LSBF. With respect to sole ventures, LSBF can enter into Africa through establishing a branch campus either alone or through joint partnership. However, there is a risk in terms of the level of control in the foreign nation with respect to governance, management, core organisational function and quality & content of course materials. Besides, this entry strategy will also expose LSBF to currency risks and local rules & regulations. In order to enter in the foreign market, educational institutions often use strategic partnership with other organisations, such as with the local education service providers, government associations or private organisations. This entry strategy provides the opportunity to deal with international challenges in an effective manner. Besides, it is an efficient method for augmenting the influence of common human resources and research structure. However, strategic partnership is not free from risks. The most important risk for LSBF in making strategic partnership could arrive from the aspect of compatibility of the organisational objectives, vision and operational procedures with the chosen partner. Thus, considering these aspects, the non-traditional delivery model would be appropriate for LSBF to enter in Africa. Traditional delivery model comprises online and distance education. The facet of technological enhancement has simplified the use of distance and online learning for increasing the number of educational institutions in order to enter in the foreign market. In this entry strategy, LSBF would develop educational programs for students and they will get the curriculum requirements through online medium. It is a very cost-effective method for LSBF which can fulfil the distance learning requirements of students in Africa. It is worth mentioning that budget cut of government and low funding support can generate risks with regard to finance in strategic partnership and sole venture models. Thus, initially, the non-traditional education delivery model would be proper for LSBF to satisfy the increased demands of students for implementing a new method in education (KPMG International Cooperative, 2012). Marketing Mix Strategies and Tactics The key objective of LSBF in Africa lies on how it can generate brand awareness among the students. LSBF will target both higher educational students and graduates from different public and private educational institutions. Product The first component of marketing mix is product. Product in the context of LSBF is different educational programs that will be provided to the target students. It is worth mentioning that the educational program is directly related with the identity of the educational institution and such identity can determine the position of the institution in the minds of the customers. Besides, educational programs also facilitate to determine the reaction of target market in Africa. In Africa, business, commerce and management have significant importance. Considerable portion of students in Africa has been found to enrol in courses of business, commerce and management. Thus, focusing on this aspect, the educational program of LSBF will concentrate on these fields. The key program of LSBF in Africa will comprise postgraduate program, undergraduate program, professional program, executive program and English language program. The programs have been described below: Postgraduate Program: The postgraduate program of LSBF will comprise numerous master and pre-master curriculum in the fields of management, marketing, business law and finance. This program will help to establish a bright career in international business ground [3] (London School of Business & Finance, 2013). Undergraduate Program: Undergraduate program will help to close the gap between knowledge and qualification. This program includes practical assignments, research projects and presentations. The distance undergraduate program for LSBF will encompass three fields namely ‘Higher National Certificate’ in business, financial management and business management [4] (London School of Business & Finance, 2013). Professional Program: LSBF will provide different professional programs to the students in the fields of accountancy, tourism & hospitality, marketing and finance. The programs will help to offer specialised qualifications as well as real-world skills in order to perform effectively in the respective career [5] (London School of Business & Finance, 2013). Executive Program: The executive program of LSBF is designed for making students qualified to manage their ensuing business activities in the international arena. This program will fulfil the changing requirements of students with respect to the recent tendencies and innovation all over the business world [6] (London School of Business & Finance, 2013). Apart from these programs, LSBF will also provide English language program to the students. In this program, LSBF will deliver a range of courses such as general English, academic English and business English (School of English, 2013). Price The second marketing mix component is price. Price, in this context, refers to the course fees of LSBF. The pricing strategy has a considerable influence on marketing activities because most of the students and their parents are highly concerned about financial effects of attending the offered courses. Besides, price also has an impact on the revenue of LSBF as tuition fee is the key revenue source for LSBF to sustain in the education industry. There are several pricing strategies that the organisations can use while entering in a new market such as penetration pricing, price skimming, demand oriented pricing and fair trade pricing among others. In this context, it can be stated that demand oriented pricing strategy will be used for LSBF. Demand based pricing focuses on the desires of customers where price is set in such a way so that it is acceptable to a majority of target customer segment (Rogers, 2001). Since there are several competitors in the educational industry of Africa and students are also highly concerned about the tuition fees, LSBF will use reasonable pricing which can reflect the quality of education and organisational competitiveness. The prices of the programs offered by LSBF will encompass basic tuition fees, program fees, cost of books and curriculum materials, cost of training and cost of different resources & tools for education. LSBF will also establish certain flexibility in the pricing system of the courses. For instance, the organisation will also render price discounts for students in the way of scholarships. Place Place in the context of LSBF relates to the way of delivering educational services to the students. The services of LSBF will be available through the most convenient manner so that potential candidates can access them. Since LSBF will enter in the business as distance learning provider, it will offer services through online and mail media. LSBF will provide the educational services through internet and organisational websites. The online media can allow customers to download information at any time and from any places. Since information technology has become widespread in the field of education, LSBF will use it for serving the existing students as well as for attracting new students. Apart from this, LSBF will also arrange teleconference classes, part time classes and lecture courses for students in regular time interval in order to provide information. These distribution channels can effectively satisfy the requirements of students entering in the courses. LSBF will also provide flexibility in the scheduling of time in order to make the services more accessible to the students (Al-Fattal, 2010). Promotion Promotion denotes the capability of an organisation to communicate with the target market segment. There are several ways through which an organisation can promote its products or services to the target market such as advertisement, sales promotion, direct selling, personal communication, exhibition, and personal selling (University of Pretoria, n.d.). LSBF will use advertisements, personal communications and exhibitions in order to promote the services to the target market. With respect to advertisements, LSBF will use press advertisements, posters and web advertisements. In press advertisements, the services of the university will be showed in newspaper and magazines. On the other hand, the university logo will be promoted through billboards in large marketing events. Apart from these, website presentation will be used in order to further advertise the university to the target market. With respect to personal communications, LSBF will use newsletter and e-mail in order to reach the target market. Moreover, special events, career fairs and workshops will also be organised in order to promote the services. These events will involve a series of lectures and seminars which would be particularly intended for potential students. In these events, LSBF will encourage students to study by leveraging the courses offered by it (David & Martina, 2011). Conclusion After conducting a conclusive analysis of the higher educational segment in Africa and a comprehensive assessment of LSBF’s prevailing circumstances, it can be concluded that the region possesses significant and sustainable prospects for an organisation venturing into this area. In Africa, it is observed that apart from the general convention of the preference of distance education amid adult older population, the younger age group segment especially within the age group of 20-24 is quite familiar with such offerings. In relation to LSBF, it especially focuses on continuous research for the developing a philosophy through which students can learn the professional studies for enhancing their knowledge and competently entering in the professional world. Therefore, the organisation especially focuses on providing world class educational facilities and being a distinctive destination in relation to higher education. Thus, the key objective of the LSBF to enter in the higher educational market of Africa through distance learning program can be attained. It needs to provide greater focus on joint ventures, collaboration and partnership along with non-traditional delivery model for capturing the market of higher education in Africa. It has been determined that initially a demand based pricing strategy would be suitable for LSBF to gauge the extent of preference for their offered courses. Exhibitions, personal communications and advertising media can facilitate it to create greater awareness amid the target market segment in Africa. However, the prevailing competition from the already functioning institutions can create certain difficulties for the organisation. In order to alleviate such scenarios, LSBF needs to bestow greater trust upon renderings sustainable quality education through student centric and market oriented courses, which can enable it to attain long-term stability in the new market. References Al-Fattal, A., 2010. Understanding Student Choice of University and Marketing Strategies in Syrian Private Higher Education. University of Leeds. [Online] Available at: http://etheses.whiterose.ac.uk/1115/1/PhD_Thesis_Anas_AlFattal_SID200229252_Education.pdf [Accessed June 11, 2013]. African Union Commission, 2009. Assessment of the External and Internal Environment. Strategic Plan. [Online] Available at: http://www.au.int/en/sites/default/files/Strategic_Plan2009-2012.pdf [Accessed June 11, 2013]. Council on Higher Education, 2009. The State of Higher Education in South Africa. Advice and Monitoring Directorate. [Online] Available at: http://www.che.ac.za/documents/d000201/Higher_Education_Monitor_8.pdf [Accessed June 11, 2013]. David, S. & Martina, R., 2011. Marketing Communications Mix of Universities - Communication with Students in an Increasing Competitive University Environment. Journal of Competitiveness, No. 3, pp. 58-71. John & Learning, B., No Date. Strategic Planning Process. Marketing Strategy. [Online] Available at: http://samples.jbpub.com/9780763783334/83334_CH02_5713.pdf [Accessed June 11, 2013]. KPMG International Cooperative, 2012. Extending the Campus a Lesson in Successful Global Expansion for Higher Education Institutions. Issues and Insights. [Online] Available at: http://www.kpmg.com/BE/en/IssuesAndInsights/ArticlesPublications/Documents/extending-campus.pdf [Accessed June 11, 2013]. Kusakci, S., 2010. Segmentation of Student Market: A Chaid-Based Analysis. Empirical Studies in Social Sciences, pp. 1-11. [1] London School of Business & Finance, 2013. Vision, Mission and Values. School. [Online] Available at: http://www.lsbf.ca/school/vision-mission-values/ [Accessed June 11, 2013]. [2] London School of Business & Finance, 2013. We Go Further, So You Go Further. About Us. [Online] Available at: http://www.lsbf.org.uk/school.html [Accessed June 11, 2013]. [3] London School of Business & Finance, 2013. Postgraduate Programmes. Programmes. [Online] Available at: http://www.lsbf.org.uk/programmes/masters.html [Accessed June 11, 2013]. [4] London School of Business & Finance, 2013. Undergraduate Programmes Online. Programmes. [Online] Available at: http://www.lsbf.org.uk/programmes/undergraduate/study-online.html [Accessed June 11, 2013]. [5] London School of Business & Finance, 2013. Professional Courses in Accountancy, Finance, Marketing and Tourism. Programmes. [Online] Available at: http://www.lsbf.org.uk/programmes/professional.html [Accessed June 11, 2013]. [6] London School of Business & Finance, 2013. Executive Education Courses and Programmes. Programmes. [Online] Available at: http://www.lsbf.org.uk/programmes/executive.html [Accessed June 11, 2013]. Martins, J. H., 2003. Market Segmentation of the Consumer Market in South Africa. The Impact of Cobranding On Customer Evaluation of Brand Counter Extensions, pp. 61-74. Prweb, 2013. LSBF Partners With eCornell to Take Online Executive Education to New Markets Worldwide. Releases. [Online] Available at: http://www.prweb.com/releases/2013/5/prweb10749543.htm [Accessed June 11, 2013]. Rogers, S. C., 2001. Marketing Strategies, Tactics, and Techniques: A Handbook for Practitioners. Greenwood Publishing Group. School of English, 2013. Courses. London School of Business & Finance. [Online] Available at: http://www.schoolofenglish.org.uk/courses/ [Accessed June 11, 2013]. The Herald Online, 2013. Science, Technology key to Africa’s development. News Categories. [Online] Available at: http://www.herald.co.zw/index.php?option=com_content&view=article&id=22073:science-technology-key-to-africas-development&catid=39:opinion-a-analysis&Itemid=132#.Ubb46OeB_mg [Accessed June 11, 2013]. University of Pretoria, No Date. Marketing Role in Higher Education. Chapter 3. [Online] Available at: http://upetd.up.ac.za/thesis/available/etd-11262008-080801/unrestricted/02chapter3.pdf [Accessed June 11, 2013]. Read More