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The vision of the organization is to provide the high quality education in a range of fields and sectors. The purpose is not only to achieve a higher reputation but also to provide a higher level of satisfaction to its students.
And the mission of this organization is simply what they are willing to do and who they are. The mission includes, to increase participation rates in education and training for young people, adults, employers and the wider community which the college is going to serve. Encouraging high expectations of both staff and students. Encouraging creativity and innovation, enabling learners to benefit from the use of new technologies. To maintain a well resourced learning environment suitable for the delivery of teaching and the promotion of learning in the 21st century. To attract and retain high quality staff, committed to the delivery of upper quartile results as measured by both external quality agencies and funding providers. To proactively and continuously engage with funding providers, to ensure that strategy, measures and results are consistently monitored and amended in line with the required outcomes of those providers, in order to secure long term viability.To analyse and liaise with commercial and industrial business sectors and with employer organisations to ensure that course provision is offered on a timely basis to meet the changing skills needs within our catchment area. To develop mutually beneficial partnerships with other skills training providers in the region to ensure that provision is appropriate in terms of level, location and employer demand.
THE GLOBAL STUDENT MARKET
The study below presents a comprehensive overview of international student market. Information from this study will be used as an understanding of student market beyond strategic planning for New Aim College.
The commercial potential for the overseas student market is as yet undefined. The existing data confirms that the market is dominated by the US, UK and Australia who collectively hold a 45% market share amounting to 1.2m out of 2.7m overseas students.
In Australia the massive increase in Indian and Chinese students is boosting Australia's education sector growth. Similar trends exist in the UK as China remains the single largest provider of overseas students although there are indications this is slowing down, especially as China turns its attention to becoming a provider. The pressure on UK higher education bodies will increase as the demographic trends of an ageing population force them to look elsewhere for student sources and this is borne out as many campuses have adopted an increasing number of overseas students and in a BBC news report in March 2007 it was estimated overseas students now account for 1 in 7 of the total student population.
The middle tier of providers in the overseas student market are countries like Germany and France who account for a further 20% market share with both countries hosting around 257,000 students.
Other emerging nations such as Japan, Canada and New Zealand have acquired around 13% market share with 2.7m overseas students. Japan and New Zealand have recently reported record numbers of 120,000 students and Canadian higher education organizations have reported that as many as 130,000 overseas students enrolled in the country's institutions in a single year. However neither country is immune from the general downturn facing global suppliers and they have experienced declines recently. This means that these countries are experiencing 'peak and decline' patterns and this situation is the more delicate because they rely on just a couple of countries from where they recruit their students and in the case of Japan, for example, Chinese students accounts for 63% (74,000) of Japan's 117,000 international students with the next nine top source countries sending just 32,000 students. This reliance on a limited source for its students makes these marginal suppliers of higher education vulnerable to any structural change.
SOUTHEAST ASIAN AND CHINE'S STUDENT
As above study shows that a huge amount of students from China and South East Asian countries are getting enrolled in different courses with many small and big educational institutes in traditional education providing countries every year so these countries provide a significant share to the international student market. Chinese students represent 15% of non EU student population and 20% of the total UK international student population. Indian, Pakistani, Bengali and Far East Asian students are considered to be more than chines.central Asian, south American, and African students also have a reasonable share in uk market. These students are influencing the strategic policies of educational institution especially the second class education providers. Even though these countries may have high influence on marketing strategies of a new opening college I will suggest New Aim College not to consider students of these countries as only customers of the organization. Local and EU students should also be taken into the consideration when developing marketing strategies.
Current scenario of international students market in UK.
UK qualifications are recognized and respected throughout the world. British universities and colleges provide a diverse, creative and inviting environment, which encourages to reach full potential of the learner. Courses in the UK meet strict academic criteria and universities and colleges encourage and motivate students to excel in their subject. Increasing numbers of international students, from over 180 different countries, are choosing to study towards a higher education course in the UK. Some of the reasons students choose to study here are, The quality of UK education is recognized all over the world by employers, universities and governments, UK higher education is well-respected for the standard of its research and teaching, UK education providers are monitored closely to ensure that they uphold the high standards of teaching, learning and research set by the government. . Whatever the career goals or interests might be, there is a higher education course available, The UK is full of diverse cultures and people and this is what attracts many students to come here from other countries, By coming to the UK to study pupils are likely to develop good language skills and International students are allowed to work for up to 20 hours a week so they can manage with their living expenses.
There are almost twice as many international students studying in the UK now as there were 10 years ago, says an annual report on university trends. The number of non-European students has virtually doubled, according to today's report, published by Universities UK.International students provided a bigger source of income for UK universities in 2007/08 than government grants for research, the report adds. One in 10 enrolments in 2007-08 - 229,640 students - were from outside the EU. In 1998-99, the figure was 117,290, which makes the increase 96%. Students from outside the EU pay more for courses at UK universities than their European counterparts. In 2007-08, £1.88bn of UK universities' income came from non-EU students, while £1.76bn came from government grants.
On the other hand UK government has recently decided for spending cuts of 2.5 billion pound on universities budget that could lead some universities to be closed down in future. An article by Murray War drop on 13th of Jan 2010 published in TELEGRAPH UK puts the light on this matter.
More than 30 universities could be forced to close amid "terrifying" Government spending cuts of up to £2.5 billion, leaders of Britain's top institutions warned.
Representatives from the Russell Group, which comprises 20 leading universities, say the cuts risk destroying 800 years of progress in British higher education.
The fallout from the financial restraints could hamper Britain's ability to claw out of the recession, according to Wendy Piatt, the Russell Group's director general, and Michael Arthur, its chairman. They warned that urgent action was needed to save dozens of historic institutions from "meltdown" which threatened to undermine the country's international competitiveness. Dr Piatt and Prof Arthur said: "Irrespective of who will bear most of the pain, all universities are really going to suffer. Wherever the axe falls, it's a really quite terrifying prospect.
"Having got to a position where we are just getting our head above the water, really punching above our weight in terms of our ability to cope internationally â€¦ it seems as if we are sliding backwards very quickly.
"We don't see how, with the size and the magnitude of these budget restraints, we are going to return to that position. "Such huge cuts in university budgets would have a devastating effect not only on students and staff, but also on Britain's international competitiveness, economy and ability to recover from recession." Writing in a newspaper, Dr Piatt and Prof Arthur added: "Reports suggest that as many as 30 universities may not survive in their current form if even minimal funding cuts are introduced.
The UK government has recently introduced new rules and regulations both for education providers to recruit and students to enrol. The Uk border agency has developed a point based system for international students who require a study visa or entry clearence.They have made large changes and actually have tighten the evaluation process and procedure before granting a student visa. All these changes have been occurred because in a few years of recent past the UK government has revealed so many bogus colleges in the country and not only the bogus colleges but also some of these colleges issuing fake degrees and diplomas. As well many were found with not enough infrastructures for delivering the quality education. These rules and changes will affect the international students in long and short run also the education providers being familiar to these changes will have to develop their strategies accordingly. The UK border agency has published an article about of new regulations on its website recently in news and updates section. The article is presented below to make clear understanding of what is being taken into the consideration about education sector by the UK government and home office.
Foreign students hoping to come to the UK to study will have to meet strict new criteria, the Government announced.
(The Home Office has published proposals for much tighter rules for foreign students - and the universities and colleges hosting them - under the student tier of its new Points Based System.
All colleges and universities that want to recruit foreign students will now need a licence to do so and will have to take greater responsibility for their international students, helping Government crack down on bogus colleges who abuse the system. For the first time education providers face a ban on bringing over international students if they fail to follow strict new rules - including alerting the UK Border Agency (UKBA) if students fail to enrol.
Students will also face stringent new criteria if they want to study in the UK, ensuring only those who benefit Britain can come. Before they can study here, foreign students must:
be sponsored by a UKBA-licensed education institution;
prove that they have the means to support themselves and their families while studying here; and
supply their fingerprints.
Stricter rules on work placements for students will also ensure that the UK's labour market is protected.
Border and Immigration Minister Liam Byrne said:
"All those who come to Britain must play by the rules. It is right that foreign students wanting to take advantage of our world-class universities and colleges must meet strict criteria.
"By locking people to one identity with ID cards, alongside a tough new sponsorship system, we will know exactly who is coming here to study and crack down on bogus colleges."
Visas will only be granted to students who show a proven track record in education and are applying for a course that meets a minimum level of qualification. They must also be able to demonstrate they can financially support themselves and any of their dependants.
Each year, international students contribute £2.5 billion to the UK economy in tuition fees alone and an overall estimated contribution of £8.5 billion. In recognition of the many economic and cultural benefits that these students bring to the UK, earlier this year the Government announced a special visa category allowing successful international students who have graduated from a British university to work in the UK for up to two years.
Higher Education Minister Bill Rammell said:
"I welcome the education sector's involvement in developing a structure that allows international students to benefit from the excellent educational experience the UK offers, while giving them the opportunity to work in the UK for two years following graduation.
"However, I will not tolerate the minority of individuals who seek to damage the quality of our education system through bogus colleges. This is why we have introduced tighter checks to the current Register of Education and Training Providers. The new system will toughen this process further and give extra protection from the damage bogus colleges can cause."
Under the new system education providers who want to teach foreign nationals must be granted a licence by the UKBA, they can then sponsor students to come to the UK.
Without a confirmation of acceptance for studies issued to them by their sponsoring institution a student's visa application will not be considered. It also acts as a pledge from the college or university that they accept responsibility for the student while they are in the UK.
Universities and colleges face losing their licence if they fail to:
keep copies of all their foreign students' passports;
keep and update their students' contact details;
alert the UKBA to any students who fail to enrol on their course;
report unauthorised absences to the UKBA; and
inform the UKBA if any student stops studies.
PEST ANALYSIS OF NEW AIM COLLEGE
It is essential to analyse a business within the macro environment and the trends in that specific industry. Here I am presenting the pestle analysis concerned to the new aim college so that we can understand the external environmental factors and can take them into the consideration before making strategic decisions.
Nowadays the UK government is emphasizing on controlling and monitoring the private educational institutions and organizations within a strict framework and regulations. This is not one sided from the government only but there is a common consensus between multi political forces about this meter. The existence of a huge amount of foreign students is influencing the country's circumstances both socially and economically, not only the students but also a big community of other legal and illegal immigrants from non EU and commonwealth countries has been settled and still rising in the country. This situation has made some political forces to have serious reservations, even though these forces are not highly empowered in the society but the government still needs to consider some of their reservations while making policies. So in the current scenario the compound of different thoughts and concerns is slightly pressurising the policy making and policies are then reflecting this political pressure into the huge changes in rules and regulations. The impact of this political situation has played a role to make education sector turbulent in this country even this is still needs to be determine that these present troubles, in the future, will really come up with positive effects on the society ? Secondly there is a political pressure on the education sector about the required skills, code of conduct and be able to be self managing and self financing. Above discussion as well indicates to a political stability in the country that is a good sign for any business to be settled and to be developed.
Businesses are affected by economical factors nationally and globally. Whether an economy is in progression, recession or recovery will also affect consumer confidence and behaviour. Economical factors have impact upon the nature of the competition faced by the organization concerning to the provision of services and available financial resources within the organization. Economic factors affect the purchasing power of potential customers, and the state of the internal/external economy in the short and long-term. The organization may need to consider:
The level of inflation
Employment level per capita
The United Kingdom is currently struggling to recover from the economic recession .Employment per capita, the level of inflation, interest rates and the budget allocation for the education sector and other sectors etc have highly influenced the UK citizens and the economy of the country. People are rapidly losing their jobs especially unskilled and labour jobs are in tuff competition. Having education sector in the background the situation seems to be a little bit complicated , on one hand universities are suffering from financial problems because of the reduced budget from the government and they are looking for to recruit foreign students(non EU) in large amounts to compete with financial needs(foreign students pay higher fees than local and EUs ).And economic condition is forcing young generation towards professional degree courses so the demand of education is increasing .On the other hand country's economy needs foreign students investment and man power to support the services sectors to compete their labour needs, this is another indication of increasing education demand and need. At the same time the new regulations from government which tighten the grip on educational institutions will actually help in provision of quality education, all these seem to be helpful to the education institutions which are committed to provide good quality education to sustain and grow positively.Especialy the increasing amount of education seekers despite the economic recession. Beyond these circumstances new aim college should be encouraged to process its progression.
Social factors include the demographic changes, trends in the way people live, work and think and cultural aspects of the macro environment. These factors affect customer needs and the size of potential markets. Social factors may include demographics, consumer behaviour, leisure interests, income distribution, living standards, health consciousness, fashion & lifestyle changes, career attitudes, internal and external emphasis on safety, internal and external attitude to change and the stakeholder expectation of the organization. The United Kingdom is a multi cultural and multi ethnic society and the education sector has played very important responsibility to develop this multicultural society. So in the current scenario we can consider that social aspects are fairly positive to establish a new educational institution that will highly depend on the foreign students and stakeholders.
Technology means a new approach to do new and old things but in the modern age tackling new and old problems do not necessarily involve technical factors, however, technological factors are vital for competitive advantage, and are a major driver of change and efficiency. Technological; factors can for example lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. New technology is changing the way business operates. The Internet is having a deep impact on the strategy of organisations. This technological revolution means a faster exchange of information beneficial for businesses as they can react quickly to changes within their operating environment. Those businesses, which are slow to react, are likely to fall at the first few hurdles. Technological factors may include these concerns...
Rate of technological change
Perception of technological change within the unit
Does technology allow for the services provided by the unit to be created cheaply and to a better standard of quality?
Do the technologies offer users / stakeholders more innovative services from the unit?
How is information / decision-making distribution changed by new technologies?
Does technology offer the organization a new way to communicate within the internal and external users / stakeholders?
Does technology offer the unit an opportunity for CRM (Customer Relationship Management) etc? For the New aim college being new in the market technological factors are very crucial to be taken into the consideration while making strategies.
In swot analysis the strengths and weaknesses are internal factors and opportunity and threats are external factors. Swot is a useful tool to analyse New Aim College within the current market.
Distinguish marketing expertise, location of the college locally and globally, quality and procedures and providing new opportunity for education seekers can be the strengths of new aim college.
What i think is providing undifferentiated product can be a weakness of new aim college. Because many competitors of new aim college are offering almost same courses and subject areas in a line.
New potential competitors and price wars could be threats for New aim college. Also the lack of marketing if happens would a big threat.
Developing advance methods and tool of marketing the product globally like internet and vacated market by bogus colleges are big opportunities for new aim college. As well I have mentioned above in pest analysis that current economic condition despite recession and increasing demand of education seekers can as well be considered as an opportunity for this organization.
FIVE FORCES ANALYSIS
Five forces analysis looks at five key areas namely the threat of entry, the power of buyers, the power of suppliers, the threat of substitutes, and competitive rivalry.
NEW ENTERY THREAT
Considering economies of scale the education sector especially setting up a new small or medium size college UK is very attractive place for investors. A waste rang of expertise, targeted market, financial support from financing institutions, and reputation of the country within this field and demand of product are potential facilities for the investors to invest their capital in this sector. So the threat of new entrance in the market is slightly high. But this threat does not apply to the businesses of all levels with its 100% potential in the current industry circumstances. Also the government actions e.g. new laws are restricting the certain level of institution to enter the market.
THE BARGAINING POWER OF BUYERS
In England the current education business situation that has come up with recent changes is little interesting? A few months before in the past there were so many small and small medium colleges offering levels of study with very poor standard standard of education but students had a variety of choices choosing their institution and had facilities to change their colleges at any time. The competition was on the basis of economies of scale only, so the buyers had a significant power of bargaining but now since the government has changed the rules the number of students are not issue anymore. Because institutes are limited to recruit a specific amount of students so they cannot play on the basis of economies of scales. On the other hand because of many shutting colleges the new students have a limited choice and are struggling for the place at a course. Applying the economy of scales the buyer (students) are still more than available seats so the bargaining power of buyers is very less at the moment. Also on the global perspective UK education is highly reputable and very less alternatives or fewer attractions are available to the students that shake student's bargaining power even more.
BARGAINING POWER OF SUPPLIER Being education supplier New Aim College has an edge of strong bargaining power. Even though the degree of competition within the same level organizations is slightly high but competition is subject to the repute and providing batter services. The Number game is not effectively involve to raise competition so, concentrating on the internal strength, college can easily gain its share from the targeted market .The situation gives the college a strong bargaining power but it is subject to the willingness of providing better competitive services. On the other hand the international student supplier communities to the UK education sector somehow find themselves forced to send their people to get education from UK. Strong culture and communication network within the UK education sector plays important role to convince international students that strengthens the bargaining power of education sector overall and New Aim College is likely to be benefit from it.
THREAT OF SUBSTITUTE
Education itself has no substitute or alternative but on the basis of competition providing quality services, better price and buyer's willingness to choose from a multiple choices institutes have significant threat of substitute on them. As far New Aim College is concerned the potential customers have a large variety of colleges to choose from. This threat is valid until the student is not enrolled at a course because new rules from home office do not allow students to change their college unless otherwise in some conditions. So a solid marketing policy and agent network may help to overcome the threat of substitutes.
In the current market there are a large number of medium sized colleges exist so the degree of rivalry seems to be high. But because of the circumstances that have been created over the last few months or a year have forced these organizations not to pursue the aggressive growth strategies but because of the maturity of education industry these organizations are merely milking the profit out of their infrastructures. So the degree of rivalry is slightly low. The New Aim college strategies should not be developed under the pressure of profit concerns.
Various analyses above have made a comprehensive understanding of what's going on in the UK education sector. It has been easier to draw the lines on which New Aim College should develop its strategies. I have come up with a few suggestions that can help the establishment to make strategy.
The components of strategy should be easy to understand. Use of language and clarity of subject should be rationalized according to the people who are going to implement the strategy.
Three years based strategy should be developed as a first strategic step. In these three years the more concentration should be given to being competitive within the present industry circumstances and keep identifying the broad spectrum opportunities for the next strategic phase.
Performance measurement tools should be settled to measure the performance of people who are responsible to achieve the strategic goals.
Emphasize on the core product to attract customers rather than emphasizing on the core competence that is relatively important for the next strategic phase when the organization will start deeply penetrating into the industry.
Emphasizing on the student performance in order to obtain the reputation for providing quality education. New tools and technologies should be adopted to assess the student performances.
To overcome the threat of substitutes the comprehensive marketing strategy should be developed. Big agent network and huge advertising is helpful to achieve the market share.
Money is the most important thing to establish a business .new aim college being a new organization will have to struggle for the availability of capital. Better relationing with funding and financial organizations is suggested.
Size does matter. To reduce the intensity of rivalry New Aim College should achieve a number of three thousand students in first three years of opening so that they have a good position to enter the new strategic phase.
To strengthen the marketing strategy affiliation with the good ranked universities is necessary.
Efficient and skilled HR department needs to be established.
Reputable personals are the back bone of any organization. New Aim College is suggested to hire reputable academic staff who will afterwards reflect into the reputation of college. Approaching university lecturers permanently and famous political, social and business personalities occasionally is advised.
In order to achieve internal strength to compete with rivals providing advance research facilities to the students is necessary.
Concluding from the above scenario I can say that there is a capacity of entering into the UK education industry by establishing new institute. Considering the international trends where the overall market is falling or somewhat switching to other areas rather than UK and comparing it to the UK local circumstances where the industry is aligning itself into more efficient and professional frame work , the required number of students are easily available and on the balance of probabilities the market will be available over the future also so the equilibrium comes in the favour of New Aim college to be proceed further. I have suggested New Aim College to adopt phase strategy for a period of three years so that the organization can initially establish itself in the existing market by competing the present circumstances. These years should also be used for a bigger cause in terms of drawing next strategic lines by working for vast future planning e.g. developing good public relations, relationing with potential funders and financial organizations, being activate in socio cultural on goings, taking part in economic debates and current affairs and as well broadening its marketing bases. Once the organization is well established and starts penetrating deeply into the society it can reduce the dependency on the international students.