Strategic Analysis of RMIT University: Management in Practice Report

This report provides a comprehensive strategic analysis of RMIT University in Singapore, addressing the challenges the university faces within its operational environment. The analysis begins with an executive summary and introduction, clearly defining the problem and outlining the problem-solving approach. The core of the report involves an in-depth external analysis using PESTLE and VUCA frameworks to assess political, economic, social, technological, legal, and environmental factors, as well as volatility, uncertainty, complexity, and ambiguity. An industry analysis is conducted using Porter's Five Forces to evaluate competitive pressures. Furthermore, the report includes an internal analysis utilizing McKinsey's 7-S model and Porter's value chain model to assess the university's internal strengths and weaknesses. The challenges are then synthesized to define the nature of the challenge and conclude with recommendations for RMIT's strategic management. The report includes a table of contents, references, and bibliography, ensuring a structured and well-supported analysis of the university's strategic position and management practices.

Running head: MANAGEMENT IN PRACTICE
Globalization of RMIT, Singapore
Name of the student:
Name of the university:
Author note:

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Executive summary
Management is one of the primary activities, which helps the companies and organizations in
enhancing the productivity. However, strategic planning is essential in terms of implementing
proper regulation to the business operations. This is applicable for all of the companies and
organizations including the schools and universities. This assignment undertakes the example
of RMIT University in terms of generating value within the learning opportunities for the
students. External environmental analysis enhances the awareness of the external pressures
on the University, acting as obstacle in the efficient execution of the business operations.
Internal analysis is the competencies, skills and abilities of the University towards coping
with the external pressures. Value chain model seems appropriate with the context in terms of
developing unique selling proposition within the educational projects and frameworks for
ensuring academic development in case of the students.

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Table of contents
Introduction................................................................................................................................3
Problem definition......................................................................................................................3
Problem solving approach..........................................................................................................4
External analysis (PESTLE analysis).........................................................................................5
VUCA analysis...........................................................................................................................8
Industry analysis (Porter’s 5 forces)........................................................................................10
Internal analysis (McKinsey’s 7S model)................................................................................12
Porter’s value chain model.......................................................................................................14
Nature of the challenge............................................................................................................15
Conclusion................................................................................................................................15
References................................................................................................................................16
Bibliography.............................................................................................................................19

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Introduction
RMIT takes pride in emerging as one of the largest universities in Asia. Widespread
presence of the university is reflected from the joint ventures in which it indulges for
providing quality educational services to the students and the clients. Fierce competition with
the brands acts as obstacle in fulfilling the demands of the students. Typical example of this
is the 290 Private Educational Institutes, which are registered by the government
(Rmit.edu.au 2019). This registration does not define the scope and arena of the wide ranging
options, which the students can avail for attaining academic development. Providing practical
learning and research opportunities to the students enhances the productivity of the
university. The university personnel take special initiatives to train the students for their
future life irrespective of the location of operation.
Problem definition
In spite of releasing Education (Training and Adult Education) Transformation Map,
Singaporean government is experiencing serious external pressures in the form of low
enrolments (Ssg-wsg.gov.sg 2019). Moreover, the policies fail to address the needs of the age
group of 18-25, which aggravates the complexities in terms of providing proper placement
opportunities. Application of the traditional educational model is inadequate in terms of
maintaining the current competitive pace with the contemporary universities (Rmit.edu.au
2019). This issue has compelled RMIT to encounter turnovers from the employees and the
customers, creating a down market situation. Along with this, lack of performance
management systems destroys the balance between the internal and the external
environments. Within this, absence of flexibility is one of the striking issues, which adds
vulnerability into the market position of RMIT.

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Problem solving approach
In order to solve the challenges, RMIT needs to take into consideration problem
solving cycle. The first step of the cycle is identification of the issues, which has stalled the
productivity. Broadmindedness is an important aspect in this stage, as the issue of external
competitive challenge is broad and wide ranged. This approach is productive in terms of
reaching to the specific issue of lack of flexibility in the educational policies and practices
(Jarzabkowski et al. 2012). Analysis and understanding of the problem is the second stage,
which helps RMIT to understand the intensity of the issue, impacting on the overall
operations of the university. This analysis is a further assistance for the personnel in terms of
identifying the criteria and the solutions, which can be applied for attaining effective
solutions. Garrett (2015) opines that market research would help RMIT in gaining an insight
into the latest performance management systems, which would be flexible towards
maintaining the balance between the internal and external environment. Along with this, this
research would also act assistance towards assessing the effectiveness, feasibility and
appropriateness in terms of the educational policies and practices.
In the process of applying the solutions, RMIT personnel would gain an insight into
the fact that using frameworks would help in preparing curriculums for lesson plans. Along
with this, the personnel would also get to know that sending drafts regarding the prepared
lessons and curriculums to the higher authorities would be fruitful in terms of averting
unwanted instances (Harmon 2015). The sequential stage is implementation of the prepared
plans, for which meetings and consultation is required from the higher authorities,
stakeholders and shareholders. Brief presentations would help in enhancing the awareness
about the plans and their impact on the identified objective of academic establishment in case
of the students.

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After the implementation, comparison helps RMIT personnel in assessing its
appropriateness in terms of the identified and the specified policies. Execution of graphical
representation relates with the journey mapping, a productive option for conducting the
career graph of the students with their current course in which they are enrolled. This activity
would be an evaluation, enabling RMIT to investigate the impact of the implemented solution
of performance management system for maintaining the competitive pace between the
internal and the external environment. According to Leal et al. (2018), within this, one of the
related issues is hiring of the experts for yielding positive results from the digitalized system
for education. For this, budget needs to be prepared for estimating the cost of training,
recruiting and the raw materials. Proper time management is needed in terms of averting the
emergencies, which can create delays at the time of actual operations. Sending drafts
regarding the prepared budgets is appropriate in terms of detecting the additional resources
needed for enhancing the standards and quality of the educational services.
External analysis (PESTLE analysis)
Factors
Political  Political and Economic Risk Consultancy
Economic  Highest per capita income is the highest in ASEAN countries
 Cheap labour costs of the neighbouring countries
Social  Traditional family values
 Younger generation prefers western culture
 High literacy rate
 Compulsory primary education
 Good command over English and Chinese language

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Technological  E-learning courses
 Virtual projects
 Performance management systems
Legal  Customer Protection Act
 Education Act
Environmenta
l
 Projects for preserving the ecological biodiversity
Table 1: PESTLE analysis of RMIT University
(Source: Rmit.edu.au 2019)
Political
Political stabilities are less in Singapore, which is productive for university personnel
in terms of providing quality educational services to the clients and the customers. Mention
can be made of Political and Economic Risk Consultancy, which helps the personnel in
coping up with the instabilities. Stable relationship with the consultancies is assistance in
terms of asking for financial aid and support. Conflicts indicate interplay with the academic
development of the students. However, recent trade war and GST hikes affect the business
operations of RMIT. Trade wars contradict the aspect of cheap labour costs (Too et al. 2017).
Incapability in making strategic planning for hiring the labours compels the university
personnel to encounter losses in terms of fulfilling the educational requirements in case of the
students and the clients.
Economic
GST hikes aggravates the complexities for the clients in terms of availing the services.
This situation creates difficulties in terms of getting large scale audience. According to the
critics, GST would increase from 7% to 9%, indicative of customer turnover. In spite of a

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decline in 2015, GDP in Singapore exposed 4.4% growth. This is the highest in the history.
The critics are of the opinion that higher GDP would help in sustaining higher economic
value (Ssg-wsg.gov.sg 2019). For this, RMIT university personnel need to assess the value,
which would be generated through the provision of the services to the clients and the
customers. Taking into consideration, latest technological services would prove beneficial in
terms of developing value for the educational services.
Social
Adopting the upgraded software is assistance in terms of enriching the knowledge,
skills and expertise of the students. This software contradicts the traditional educational
system. Agyemang and Broadbent (2015) are of the view that rationality is needed from the
RMIT personnel in terms of enhancing the virtual skills of the students, yet preserving the
traditional values, which the students prefer. This rational is the primary agent in terms of
attaining loyalty, trust and dependence from the students. Literacy rate is higher, which
necessitates the need for strong and flexible policies and practices in terms of helping the
students to attain academic establishment.
Technological
E-learning courses are one of the other examples of technological advancement,
which helps RMIT to upgrade the preconceived skills, expertise and knowledge of the
students. Within this, online group discussions, question answer session with the professors
help the students in clarifying their doubts regarding the lectures delivered in class (Parakhina
et al. 2017). This is also assistance in terms of coping up with the lectures in case of physical
absence from the class at the time of the lectures.
Legal

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Evaluation and audits of the Higher Education Services is one of the examples of
quality performance management systems. Involving the external experts in these audits is
productive in terms of evaluating the effectiveness, appropriateness and feasibility of the
developed policies and practices. Within this, Data Protection Act (1998) helps RMIT
personnel in protecting the individual sentiments of the clients and customers. Consideration
of this act is the initiative towards preserving the cultural diversity within the university
premises. Manatos, Rosa and Sarrico (2017) argue that maintaining Ethical Code of Conduct
is a planned approach in terms of averting the instances of conflicts, discriminations and
harassments, keeping in mind the different socio-cultural backgrounds from where the
students come.
Environmental
One of the primary aspects of evaluation is assessment of the ways and means of
preserving the ecological diversity. The course of environmental science now offers various
opportunities to the students for gaining familiarity with their surroundings. Joint ventures
with the research and development team enable the personnel to make the subject interesting
for the students. Ample opportunities are provided to the students to participate in these
projects, which enhances their knowledge regarding mitigating the aspects of environmental
pollution (Vardarlier and Silahtaroglu 2016).
VUCA analysis
In order to delve deep into the political, social, economic, technological and legal
factors, VUCA analysis would be conducted.
Volatility

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Supply chain network is important in terms of expanding the scope and arena of
business operations of RMIT University. Strategic approach in this direction is fruitful in
terms of maintaining the balance between the business operations. Arranging meetings with
the educational agencies is a wise step in terms of preparing budget for adopting modern
performance management systems (Sharp, Peters and Howard 2017). Within this,
consideration of the previous annual reports would be effective in terms of upgrading the
standards and quality of the educational services.
Uncertainty
Like other industries, educational industry is also undergoing specific
transformations. This is due to the differing needs of the students in terms of attaining
academic development. Marketing mix would be one of an effective option for RMIT in
order to sustain their position in the competitive ambience of the Singaporean market.
Experimentation with the educational services would help the personnel in reaching to the
target audience. However, Nazaripour et al. (2017) feels that rationality needs to be
maintained in this direction for averting the instances of customer turnover. Flexible
negotiation means needs to be kept handy, as conflicts might occur any time.
Complexity
External pressures can aggravate the complexities for RMIT in terms of catering to
the needs, demands and requirements of the clients and the customers. Moreover, quality
education services from the contemporary brands like University of London would make the
position of RMIT vulnerable. There needs to be difference in the services of the departmental
units of the University. This is in terms of luring the clients and the customers towards the
services. On the contrary, Li and Wang, (2015) thinks that consistent evaluation is crucial in
terms of adding innovation within the educational services.

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Ambiguity
Ambiguous relationship between the University and the shareholders is indicative of
strain in the productivity. Moreover, it projects interplay with the academic development of
the students. Internal conflicts between the professionals stall the productivity, which
compels the clients to get inferior quality services. For example, if a professor refuses to
continue with the service due to some salary issues and there is ongoing conflict with the
management, it is the students, who suffer in terms of getting quality education (Kallio et al.
2016).
Industry analysis (Porter’s 5 forces)
Competitive rivalry
According to Straitstimes.com (2019), learning is no more a competition for the
students in Singapore. However, this does not cease the competitive mentality of the schools,
colleges and the universities in terms of attracting large number of clients. This is in terms of
stabilizing the market position within the competitive ambience of the market. According to
the claims of The Ministry of Education, the aim would be on the improvement of learning
processes in case of the students. However, lack of value proposition within the educational
curriculum nullifies the flexibility in these claims. Mention can be made of the extracurricular
environmental projects in National University of Singapore, with which the students are
made familiar. This approach reflects high competitive rivalry for achieving customer
satisfaction (Walford 2018). Contribution of research and development team helps National
University of Singapore in generating unique selling proposition to each of the learning
services for the students.
Bargaining power of the suppliers

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Mention can be made of Singapore Management University, where the personnel of
Office of Research regulate the learning process of the university students. Customized
learning programs influence the buying power of the students and the clients. Stable supplier
power would help RMIT to expand the scope and arena of business. This is through the
means of contracts, joint ventures and partnerships. Private college, which lack the
government registration, might act as obstacle in the operation of RMIT in Singapore.
Therefore, complying with the legislations is crucial in terms of averting unwanted situations
(Le and Yingling 2015). Taking assistance from the governmental agencies would be
productive in terms of generating value for the learning services.
Bargaining power of the buyers
Providing the students with different types of learning programs helps RMIT
University to influence their purchasing power. Data Protection Act (1998) is assistance in
terms of protecting the individual sentiments of the clients and the customers. Planning
towards introducing scholarship programs reflects the conscious approach towards the
educational needs, demands and requirements of the learners.
Threat of substitutes
Private educational institutes are now planning to introduce scholarship programs for
the students. One of the important aspects in this is that most of these institutions lack
governmental registrations, which is advantage for RMIT University in terms of catering to
the needs, demands and requirements of the customers.
Threat of new entrants
Australian market is filled with different brands, which is applicable even in the
education industry. High prices of the educational services compels the customers to
encounter difficulties in availing the services. High prices of the tuitions compel the students