Strategic Management Report: Analyzing Education Sector Strategies

This report delves into the realm of strategic management within the education sector, examining various concepts, tools, and processes. It begins with an introduction highlighting the significance of strategic management in education and its importance in adapting to the changing environment. The report covers Porter's Five Forces model, competitive analysis, intensive and integration strategies, and the BCG matrix. It then explores SWOT and PEST analyses to assess the internal strengths and weaknesses and external opportunities and threats of the education sector. Furthermore, the report details the strategic planning process, including questionnaires, diagnosis, policy formulation, and plan preparation. Finally, it addresses the implementation and evaluation of strategies, concluding with references to support the analysis. The report focuses on Company X and the education sector and its overall strategic management in the industry.

Contents
Introduction......................................................................................................................................2
LO1- Concepts and Tools of the strategic Management................................................................3
Porter’s five force model..............................................................................................................3
Competitive analysis....................................................................................................................3
Intensive strategy.........................................................................................................................4
BCG matrix..................................................................................................................................5
Integration strategy......................................................................................................................5
SWOT..........................................................................................................................................6
LO2- Pest Analysis..........................................................................................................................6
LO3 Strategic planning process.......................................................................................................9
Questions and activities...............................................................................................................9
Questionnare................................................................................................................................9
Diagnosis....................................................................................................................................19
Policy formulation......................................................................................................................19
Plan preparation.........................................................................................................................20
Preparation of the annual operational plans...............................................................................21
LO4- Implementation and evaluation of the strategies..................................................................23
Conclusion.....................................................................................................................................27
References......................................................................................................................................28
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Introduction
The education sector plays a very important role in the growth of the nation and it is imperative
to incorporate new strategies as per the changing environment. New facilities are introduced by
the company X in order to provide best education to the youth and government is also spending
more on education sector since past few years. E-classrooms have become significant these days
for providing better classrooms to children. For such classrooms, expert personnel are required to
be appointed to deal with such machinery equipped in e-classrooms. Students find it easy and
convenient to study in such environment as it is full of life and enjoyment. Strategic
management in the development of the education is the art of managing all strategies, plans,
investments and risks of markets and also involves the asset allocation. Strategic management
helps to find the best plan to the organizations as well as the individuals as per the ability to
undertake risks. The main objective of Strategic management is to reduce the risks and focus on
making maximum profits. All these decisions can be taken to by making and analyzing the
different strategies. Effective organizations have strategies to mark and maintain a viable and
feasible market for their products and services. For fulfilling its aims which generally include
profit maximization, an integration strategy is a must and is of various types and forms. For most
of the organizations, the dynamic process of adapting to market changes and uncertainty of the
market environment, organizational reorganization and integration is an important tool in
effectively maintaining and efficient alignment with the ever changing environment. Marketing
is a business process in which the loyalty of the customers, relationship with clients and the
brand value of the company is established by using different marketing activities.
Also, the survey and the interview activities are conducted in the colleges to to analyze the
strategic planning importance. The participants involved in this survey are the expert
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professionals and all the viewpoints given by them on the strategic planning process discussed in
this report
LO1- Concepts and Tools of the strategic Management
Porter’s five force model
This model is about the various substitutes in education sector, we come to a conclusion with
two aspects. There are two major financers in the field of education and they are public
authorities and private sector. The role of government is more in developing education sector and
the role of private authorities is less as compared to the government or other local agencies. The
industry rivalry is less and the number of educational institutes is less in number as compared to
other countries. The inclination of people towards education is more in today world’s
modernization.. This is the reason the level of competition is less in many countries. The threat
of entry for rivals is more in the developed countries. The individuals are very conscious at
providing their children with best education and getting them admitted in best institutes. It has
been recently seen that the countries are getting inclined towards this sector as well, but it will
take a few more decades to the one city as compared to the other cities to rise up in this sector at
par with the other cities(Chang, 2006).
Competitive analysis
The Education sector is a developing sector and has many good prospects and people are willing
for example the foreign investors are willing to invest in this market to get better output and
provide quality education to students. Many cities like Dubai has recently come up in front in
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this sector and has been doing well since 2005 and making changes according to the dynamic
environment of the society. The city has given many good facilities to tits students as students
are considered to be the future of the nation. The number of educational institutes is quite decent
in the city and almost every institute provides best services to the students. The education
minister after regular intervals keeps on reforming the techniques for improving education sector
and provides best services to the students. Not only the normal students, the city also works for
providing best education to students who are disabled and are mentally not at par with the normal
students(UNESCO, 2010).
Intensive strategy
Market penetration is both a measure and a strategy. A business will utilize a market penetration
strategy to attempt to enter a new market. The goal is to get in quickly with your product or
service and capture a large share of the market. Market penetration is also a measure of the
percentage of the market that your product or service is able to capture. There are many cities is
involved in penetrating itself into the market and has been inviting the other investors to invest in
this market. The city’s every year investment in education sector keeps on increasing year by
year to stay at par with other cities. The company X has been into this sector since a long time
now. They do not have to penetrate themselves into the market but have to keep reforming the
already established strategies to stay in the market for long. The company X is engaged in
intensive market penetration. They are a new player in the industry, but are investing substantial
money into building an education industry(Seong, 2007). The company X believes that the
industry will be worth $700 USD annually so is investing heavily to attract clients from target
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several countries (Russia, India, the Gulf, and Nigeria). For now, market penetration is strategy
but they aim to be a product innovator as a point in the future.
BCG matrix
The company X has been into this sector since long and doing well in the business. The company
X has been using best techniques to stay in the market and develop the children to make them
run with the world. Various expert personnel are appointed to introduce new strategies that suit
the environment of the city and the individuals and after conducting a comprehensive research
programs, various techniques are analyzed(Harray, 2008). The techniques are even analyzed
taking help of various thinking techniques which can be brainstorming, morphological
techniques etc.
Integration strategy
The company X witnesses a vertical integration as it has effective control on the activities of the
people that they acquire their techniques and products from. Since demand in international
countries is high it is necessary to have a higher vertical integration control. In case of
educational facilities there is less of a horizontal integration because each organization has its
own functioning and therefore there is less of any control on similar organizations and since
there are many seen in the many countries education sector it is less seen in the form of
horizontal. There is a lot of backward integration seen in case of other international market since
there is buying of new techniques in the everyday life of the business(Tabatoni, et al., 2012).
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SWOT
The weakness of the Company X education sector is that it has not created a platform for
advertising the facilities that they have the potential to offer and therefore they do not promote
their education sector on an international level which leaves the attention of many people who
would have otherwise chosen X. Also the fee of the institutes is very high and therefore people
who cannot afford so much might have to suffer due to this very cause. The company X faces a
threat from other countries and cities across the globe which provide the same facilities but at a
lower cost. On the other hand, the problem faced by the international countries the problem of
language. So many students fail to get the admission they demand because of the lack of
communication.
LO2- Pest Analysis
A Business Environment of Company X with regard to compete with the international market
includes the PEST analysis which consists of Political, Economic, Social, technological, factors.
These all factors are the very important part of the strategic management planning as these
factors help to analyze the situation of the market and help to control the business from negative
impacts. External factors are the variables which affect the business of Company X in the
development of the education area by influencing the operations and performance of the
company. PEST analysis is a tool that helps in the analysis of the external factors that affects the
business environment which has been discussed below:
 Political- Legal Factors
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The Political and Legal environment of a country has a significant effect on an education sector
which is influenced by the political infrastructure , stability, government support, attitude of the
government, the intervention of the government, provision of the constitutions and foreign policy
etc.The businesses feasibility is dependent on their potential to understand the laws related to
property and to stand by them, and keeping innovation in their marketing activities by not fearing
of the infringement of the laws. Each and every country has its own political and legal system
which poses a threat to the education system for which they have a well defined strategy to
mitigate the country level risk factors. The policy of the United Kingdom government and the
EU directives, such as the planning and environmental issues which consist of sustainability has
a great impact on the education sector. The Company X has established its business in providing
the education worldwide and is well focused on innovative and sustainable development which
meets the requirement mentioned by the EU directives(IIEP, 2010).
 Economic Factors:
The economic factors have a significant impact on the business which affects the education
sector as well as the infrastructure and growth of the economy.The government of the United
Kingdom has used the taxation as a medium to promote the improvement of the environment.
The increasing level of the education system involves the cost of infrastructure, the academic
fees, the operating costs etc. For achieving this it is significant to understand that how the
improved and better design can help in enhancement of all these costs.
 Socio- Cultural Factors:
Social- cultural factor is an equallyimportant factor that affects the education sector. The average
number of persons residing in villages and the narrow minded thinking of the people has great
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impact on the education development in rural areas The ageing population, an increase in crime,
and well-being of people are a part of the social dimension. The latest research reveals that the
highest number of conflicts and disagreements amongst the people is because of employment .As
the company X also offers the educational services and the social factors focus on the
development of the education system by determining how much the people are ready to spend on
their education (UNESCO Bangkok, 2013).
 Technological Factors:
Changes in technology have posed a great challenge to the companies which need to be
considered significant by the education system. Since the competition in the market is so high.
The advancement in the education and classroom technologies has a great impact on the working
practices in the education sector, building more technologies and presentations for the education
sector. The swift increase in the use of digital tools is one of the development with a great effect
on the education sector. In view of the fact from 2014, Company X has extended its support for
the digital transformation by progressing out strategic management in the education system in all
of its units. The advancement in the technology helps the company achieve competitive
advantage and also allows better management of gradually more complex projects(Naron, 2014).
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LO3 Strategic planning process
Questions and activities
The strategic plan for the development of the education system involve the first step of
answering main question arises at the time of the strategic planning. The questions and activities
are set by the company X to understand the need and problems faced by the people of our
country and then plan about the education development on the basis of the feedback. The
research and survey involve the following participants and questionnaires and their results.
Questionnare
Participants:
Seven candidates were identified and accepted to participate in the research. Three participants
were involved at the Administration level; and the remaining four within from the college or
university .The fourth interview was ended early because participant would not be able to
provide any relevant information. The last candidate was not interviewed because they were not
available during the interview period. All of the candidates had more than 15 years’ experience
in providing higher studies in accounting. Additionally, the vice principal and faculty of the
college and the student guidance counselor each had experience in guiding to students the right
decisions. Below table summarizes the participants’ profiles.
Participants Organization Current position Interview time
P1 College Vice Principal 75
P2 Educational Cell Guidance counselor 100
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P3 College Vice principal 50
P4 college Faculty member 10 minutes
P5 Educational cell Work counselor 90 minutes
P6 College Faculty Member 60 minutes
P7 college Faculty member questionnaire
HOD Questionnaire
1) How many of years of working in the education?
1. 1-3
2. 4-6
3. 6-8
4. 8+
2) Do you know the educational and the college strategic plan covers?
1 Yes
2 No
3) What is the time of the college strategic framework?
 1 year
 More than 2 years
 3+ years
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Strategic position
4) Are the strategies of the educational institutes evident?
 Yes
 No
5) Do your college have the annual operational plan to run the college successfully for day
to day activities?
 Yes
 No
 Strategy into action
6) Are there any option for the HOD’s of the college to incorporate the strategic plan into
the departmental plans?
 Yes
 No
 Strategic choices
7) How often is the strategic plan reviewed? (please circle)
 Every 6 months
 Annually Every
 two years
 Every three years
8) Are the Hod’s of the college are involved in the review of the strategic plan?
 Yes
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 No
9) At What time of year the review of strategic plan can take place?
 Monthly
 Quarterly
 Half yearly
 Yearly
10) Who is consulted regarding the strategic plan?
 Teachers
 Vice president
 Management team
 Students
11) Is it there any benefits of strategic planning?
 Yes
 No
12) Do you think there are limitations of the strategic planning?
 Yes
 No
13) Is there any other aspect of the strategic planning that you wish to comment on? If yes,
then in what aspect?
 Yes
 No
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