Strategic Management Report: Company X Education Sector Analysis

This report provides a comprehensive analysis of strategic management within the education sector. It begins with an introduction to strategic management concepts and tools, including Porter's Five Forces model, competitive analysis, and intensive strategies like market penetration. The report then delves into the BCG matrix, integration strategies, and SWOT analysis to assess the strengths, weaknesses, opportunities, and threats in the industry. A PEST analysis is conducted to examine the political, economic, social, and technological factors influencing the sector. The strategic planning process is explored through questions, activities, and policy formulation. The report also covers the implementation and evaluation of strategies, culminating in a professional development plan (PDP) that addresses organizational restructuring, leadership roles, and new organizational designs. References and an assessment task are included to support the analysis.

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.....................................................................................................................................................5
LO2- Pest Analysis......................................................................................................................................7
LO3 Strategic planning process.................................................................................................................10
Questions and activities.........................................................................................................................10
Questionnaire.........................................................................................................................................10
Policy formulation.................................................................................................................................13
Plan preparation.....................................................................................................................................14
Preparation of the annual operational plans...........................................................................................15
LO4- Implementation and evaluation of the strategies..............................................................................17
Conclusion.................................................................................................................................................20
Assessment task 2- Professional development plan (PDP)........................................................................21
Introduction...........................................................................................................................................21
Organization and its current status.........................................................................................................21
Need of restructuring – Problem definition...........................................................................................23
Literature review...................................................................................................................................24
Strategic tools........................................................................................................................................25
Process of PDP......................................................................................................................................26
Role Of Manger in Restructuring..........................................................................................................27
New Improve design of the organization structure................................................................................29
References.................................................................................................................................................31
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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. 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
professionals and all the viewpoints given by them on the strategic planning process discussed in
this report
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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
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
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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
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.
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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).
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
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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.
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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
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).
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 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
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 developmentwith a great effect
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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.
Questionnaire
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 participants 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’s guidance counselor each had experience in guiding to students the right
decisions. Below table summarizes the participants’ profiles.
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Participants Organization Current position Interview time
P1 College Vice Principal 75
P2 Educational Cell Guidance counselor 100
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
The results of the research are depends upon the feedback of the participant through
questionnaire and interview questions asked from the expert and educated personalities.
Education system plays a crucial role in the Australian economy. The employment opportunities
available in the market for the financial accounting, IT, Management influence the students to
study more and build their career. It is very important to get masters in any field because that
represents the specialization of the students and creates more employment opportunities. The
academic difficulties are minimized in Australia and that attracts more students for higher
education. The educational institutes always try to build some strategies to attract the maximum
number of the students.
Results
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The result of the interviews and questionnaire explains the views on the strategic planning
process. On the basis of the research, the participants were asked to give marks out 10 to each
category of the strategic planning in the educational institutes.
Process P1 P2 P3 P4 P5
Strategic analysis 9 8 10 9 8
Strategic formulation 8 9 9 8 9
Strategic Evaluation 9 9 8 8 9
Strategic Implementation 10 9 10 9 9
Strategic Monitoring 8 8 9 9 9
The above table shows the results of the survey and the equal importance is given to each of the
steps of the strategic planning process. The experts give much more importance to the strategic
implementation, as all the results or positive outcomes depend on its suitability and
implementation of the plans. The cooperation and the interaction between the management and
the personnel is absolutely important to achieve the long term as well as the short term goals.
The company X should focus on this analysis before formulating the policies of the colleges or
universities. The participant or the experts rate the every step of the strategic planning out of 10
and the importance is given equally to the each activity. The college faculty always builds the
strategic plans like to organize the job fest, personality development classes, annual functions,
placement cell activities, to keep the interests of the students and attract more students in the
organization . The strategic planning of the colleges and educations also taken into consideration
all the staff members working in the education department. Employee satisfaction is very
important. The rewards and the employee appraisal is significant as employees are the one who
will be responsible for all the activities and tasks of the strategic planning process.
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