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BUS PLAN/01
01
Date of Issue
October 2013
October 2013
Names
Title
Signature
Date
Table of Contents
1. EXECUTIVE SUMMARY
5
1.1 Objectives:..........................................................................................5
1.2 The products.......................................................................................5
1.3 Sales Forecast.....................................................................................6
2.0 SUMMARY OF THE DEVINE INSTITUTE
.7
3.0 BUSINESS OWNERSHIP AND MANAGEMENT
.8
3.1 BEE Status..........................................................................................8
3.2 Governance and Management............................................................9
3.3 Roles and Responsibilities.................................................................10
4.0 INSTITUTE LOCATIONS AND FACILITIES
.12
4.1 Locations..........................................................................................12
4.2 FACILITES.........................................................................................12
5.0 VISION, MISSION AND VALUES
.13
5.1 VISION STATEMENT...........................................................................13
5.2 MISSION STATEMENT........................................................................13
5.3 VALUES that bind us.........................................................................13
6.0 BUSINESS OBJECTIVES
13
7.0 KEYS TO SUCCESS
..14
7.1
Internal Factors..............................................................................15
..18
8.1 Description of Services.....................................................................19
8.2 Education Services...........................................................................19
2
Positioning Statement.................................................................24
11.2
Pricing Strategy..........................................................................24
11.3
Promotion Strategy.....................................................................24
Sales Forecast.............................................................................25
13.0 IMPORTANT
ASSUMPTIONS
Contents
1. EXECUTIVE SUMMARY
.5
1.1 Objectives:..........................................................................................5
1.2 The products.......................................................................................5
1.3 Sales Forecast.....................................................................................6
2.0 SUMMARY OF THE DEVINE INSTITUTE
7
3.0 BUSINESS OWNERSHIP AND MANAGEMENT
.8
12
4.1 Locations..........................................................................................12
4.2 FACILITES.........................................................................................12
5.0 VISION, MISSION AND VALUES
.13
5.1 VISION STATEMENT...........................................................................13
5.2 MISSION STATEMENT........................................................................13
5.3 VALUES that bind us.........................................................................13
6.0 BUSINESS OBJECTIVES
..13
7.0 KEYS TO SUCCESS
14
7.1
Internal Factors..............................................................................15
18
Positioning Statement.................................................................24
11.2
Pricing Strategy..........................................................................24
11.3
Promotion Strategy.....................................................................24
Sales Forecast.............................................................................25
29
1. EXECUTIVE SUMMARY
The Devine Institute is a college which provides skills development services to corporate,
government SMMEs and individuals. The college is also in the business of providing
education and training services. The college is wholly black owned and provides
education and training services.
1.1 Objectives:
Profit To generate sufficient profits to finance future growth and to provide the
resources needed to achieve the other objectives of the Institute and its owners.
Growth - To grow the business at a rate that is both challenging and manageable,
leading the market with innovation and adaptability.
Citizenship - To be an intellectual and social asset to the community and the
environment.
There are a few key factors that spell success or failure for a skills development provider,
most of which stem from the importance of reputation of the level of training provided
and how the newly acquired skills of the learners will be applied in the work place.
The content of the learning material should be extensive and complete to provide
learners with well rounded skills and education. The Devine Institute will use the learning
materials that have been fully approved by the SETAs.
The facilitators should be experienced in the said field which they are teaching.
Learners need to be assessed fairly in order to create a level of trust and competency in
the industry.
Feedback needs to be obtained on a continuous basis from private companies in the
industry of what they deem important knowledge skills requirements in their industry.
The feedback and improvement should then be incorporated into the learning framework.
The training materials should be of quality in order for learners to use the materials as
future reference in practice.
1.2 The products
In our range of products, the following services are included:
* Academic Training
- Full-time day-to-day contact sessions at our contact centres.
- Block release (part-time) programmes 3 hours once a week session
either on
Tuesday or Saturdays.
- Correspondence plus correspondence training with once a month
contact session.
* On-site training workshops.
* Learnership provision
* Recognition of Prior Learning (RPL)
*Community Development Projects
2014
2015
2016
2017
Full-Time Tuition
40
60
150
250
Part-Time Tuition
15
25
30
50
Total
55
85
180
300
Full-Time Tuition
20
50
60
80
Part-Time Tuition
10
15
30
50
Total
30
65
90
130
85
150
270
430
FULL QUALIFICATIONS
SKILLS PROGRAMMES
GRAND TOTAL
The college is expecting to start with a moderate number of learners in 2014 and to
increase enrollment modestly in 2015 and 2016, with enrollment growth accelerating in
2016. It is the expectation that the Institute will double its starting enrolment figures
within five years.
2014
2015
2016
2017
Full-Time Tuition
R7000
R7840
R8780
R9840
Part-Time Tuition
R6500
R7280
R8155
R9135
Full-Time Tuition
R3500
R3920
R4390
R4920
Part-Time Tuition
R3000
R3360
R3765
R4215
FULL QUALIFICATIONS
SKILLS PROGRAMMES
Course Fees
2014
2015
2016
2017
1. FULL
QUALIFICATIONS
Full-Time Tuition
R 280,000
R 470,400
R 1,318,350
R 2,460,000
Part-Time Tuition
R 97,500
R 182,000
R 244,650
R 456,750
Total
R 377,500
R 652,400
R 1,563,000
R 2,916,750
Full-Time Tuition
R 70,000
R 196,000
R 263,400
R 393,600
Part-Time Tuition
R 30,000
R 50,400
R 112,950
R 210,750
TOTAL
R 100,000
R 246,400
R 376,350
R 604,350
R 477,500
R 898,800
R 1,939,350
R 3,521,100
2. SKILLS
PROGRAMMES
GRAND TOTAL
The college was incorporated this year (2013). The founders of the institute are
experienced in the field of education and training. The institute specializes in offering
Information Technology related skills development programmes. To ensure profitability
the Institutes mode of programme delivery is customized to the needs of the clientele
and is not limited to a specific geographical area.
The programmes offered by the business, with their strong occupational orientation will
contribute to the development of a workforce able to meet the challenges and skills
requirements of South African economy.
The cornerstone of the colleges programmes is the Outcome Based Education (OBE).
OBE is an educational system which emphases the outcomes, learning and
demonstration of those competencies related to the outcomes skills, knowledge and
attitudes that are central to a given career, activity or task. Among the features that
distinguish OBE is the identification of skills by industry and learners evaluations based
on performance of these skills.
ORGANOGRAM
PRINCIPAL
PRINCIPAL
MARKETING
MARKETING
ASSISTANT
ASSISTANT
Academic Administrator
Academic Administrator
HoD IT
HoD IT
EDUCATORS1
EDUCATORS1
HoD BUSINESS
HoD BUSINESS
STUDIES
STUDIES
ASSESSOR
ASSESSOR
EDUCATORS
EDUCATORS
RECEPTIONI
RECEPTIONI
ST
ST
Cleaner
Cleaner
LEARNERS
LEARNERS
Security
Security
LEARNERS
LEARNERS
MODERATO
MODERATO
RS
RS
LEARNERS
LEARNERS
10
1
DEVELOP
5
DIRECTORS
MONITOR
i.
APPROVE
FINANCE
COMPLY
Development Function
While the word develop is used, it does not imply the directors themselves must
actively develop the required plans, policies and structures. Instead, the Directors;
Must ensure that the development has taken place according to set criteria and set
processes.
The following responsibilities are in fact shared by the Directors and the staff:
Monitoring Role
The essence of monitoring is to watch, observe, keep an eye on, keep track of, follow,
note, oversee, and supervise, check, survey. The Directors need to ensure that the
progress or lack of progress in these areas is observed, noted and continually tracked in
order to ensure the delivery of quality provision and the continuous improvement of the
institution. The Directors are required to monitor the implementation of:
(i)
The policies and procedures (QMS);
(ii)
Strategic plan;
(iii)
Management of operational and environmental risks; and fixed assets
(buildings, furniture, etc)
ii.
Approve
Ensure Compliance
The Directors are required to report on the overall governance of the institution. The
Directors must ensure that the institution operates within the approved budgets, and
must further ensure that the institution complies with the Generally Accepted Accounting
Practices (GAAP)
3.3.2 Principal
The Principal is subject to the responsibilities of the Directors and, is responsible for the
overall leadership of the institution.
The principal must provide the Directors with the required support and advice that the
directors need to perform their duties effectively and efficiently. Whilst the Directors
duties are very different from those of the principal, there is an important relationship
between them. To create good working relations between senior management and the
Directors, it is vital that both parties have the same understanding of the boundaries and
the expectations of governance and management. The Directors chairperson and the
institute principal play an active role in providing such understanding.
3.3.3 Academic Committee
The Directors need to be informed and updated about the nature, scope and quality of
the institutions academic provision while leaving the details to the principal and the
12
academic team. The principal informs and consults with the Directors regarding the
activities and plans of the academic board.
4.1 Locations
The head office is located in one of the strategic location in the heart of
the Johannesburg Business area at the corner of Loveday/Plein Streets.
The Devine Institute has leased approximately 425 m2 of space.
4.2 FACILITES
Item Description
Computer
Digital Camera
Filing Cabinets
Fire extinguisher
Office Chairs
Office Desks
Photocopying Machine
Printers
Projectors
Reception Desk
Student Desks
Students Chairs
Telephone Sets
Television Sets
White Boards
Quantity
10
2
5
3
26
8
1
2
3
1
50
120
3
1
8
7.1
Internal Factors
The Devine Institute feels that it owns success through some basic
internal factors. These are:
Excellence in fulfilling the promise
It is critical for the success of The Devine Institute to ensure that for
every claim/promise, there are corresponding actions to fulfill it, and
proof must be presented.
Developing visibility to generate new business leads
Participation by The Devine Institute in business affiliations with
reputable organisations within the skills development sector is a
necessity. The major role players in the industry are the
Department of Higher Education and Training, Umalusi (General and
Further Education and Training Quality Assurance body), Sector
Education and Training Authorities (SETAs) and Association of
Private Providers of Education and Training (APPED). By far The
Devine Institute will be affiliating with the above institutions.
Strategic relationships must also be made with companies,
government institutions, regional (provincial) government offices,
and NGOs, as well as with individual customers. Our experience in
the industry for the past two years ensures that we have solid
foundation in the brand loyalty and customer satisfaction, thus
providing us with a great advantage of increasing our share in the
education and training market.
High quality service and customer satisfaction
Everything The Devine Institute sells is guaranteed; therefore, the
services have to do what the customer wants and does it well. Longterm customer satisfaction is critical to the survival of the business.
To this effect The Devine Institute has developed a Quality
Management System (QMS) according to ISO 9001-2000 standards
and accreditation will be sought with the South African Bureau of
Standards (SABS). By far, our quality system has been approved by
Umalusi (quality assurance body).
Key management team
16
Marketing
Differentiating The Devine Institutes skills development services
from traditional college operation and management through
dedicated contact centres national wide. The The Devine Institute
marketing plan is developed to ensure value for money to our
customers that create brand loyalty.
Profitability
The Devine Institute is based on three business units; skills
development, academic training and learnerships which will at all
time complement each other in ensuring profitability and growth.
Controlling costs and managing budgets in accordance with Institutional
goals, adhering to strategic business plans for growth and expansion and
reinvesting in the business and its employees.
The Devine Institute feels that the following basic external factors
contribute to its own success. These are:
Legislation:
The Devine Institute expands its scope of education and training in an
interesting era; the era of scarce and critical skills lacking in the South
Africa followed by the government promulgation of the Skills Development
Act and Skills Development Levies Act to enable skills development to
take place. The era in which The Devine Institute expands itself is a
conducive environment for the provision of skills development services.
The Skills Development Act makes it compulsory for employers to
develop the skills of its employees and, Skills Development Levies
Act makes development possible by providing funding. The Devine
Institute as a skills development services provider is a beneficiary of
skills development funds.
Socio-Economic Factors
Crime rate: - South Africa has been classified as having the highest
level of crime. The companies, government institutions, regional
(provincial) government offices, NGOs, communities, individual
18
Composition
The education and training landscape is populated by traditional
education and training providers. They do pose a threat by the mere
fact that they have long standing reputation of providing broad
range of educational programmes. The Devine Institute counters
this by bringing in the Ozone Concepts as a strategic partner. Ozone
Concepts have been the forefront of education and training and with
this experience and reputation, our partnership with Ozone
Concepts will ensure that The Devine Institute enjoy the same
reputation and quality standards.
The Devine Institute has a focus of meeting the South African community
need for skill development services. Learners will be taken on flexibly on
full-time, part-time or correspondence plus basis.
22
The sector which The Devine Institute targets express their skills
development needs in the Workplace Skills Plans (WSP) that are submitted
at the SETAs. Based on the information analysed from the WSPs the SETAs
will then develop a Sector Skills Plan. As stated above, the SSP reflects the
details on scarce and critical skills within respective workplaces. A clear
identification of scarce and critical skills and occupations means that the
SETA can be focused in addressing skills and occupations that are in short
supply. The supply of skills by the SETAs is done through skills
development providers such as The Devine Institute.
10.0 COMPETITION AND BUYING PATTERNS
Price, customer service, certification and reputation are critical success
factors in the skills development services industry. The Devine Institute
will compete well in our market by offering competitive prices, highquality skills development services, and leading-edge educational
programmes through highly qualified facilitators who have solid field
experience in their fields, and by maintaining an excellent reputation with
parents and the community in which we serve.
The Skills Development Act and Skills Development Levies Act are the two
(2) pieces of legislation that makes skills development possible.
Employers are required to submit Workplace Skills Plans to the respective
SETA and implement the planned training in order to receive portion of
skills development levy. It is factors like these, including Employment
Equity Act that drive the potential customers of The Devine Institutes to
spend.
PC Training
Strength:
Large institution, already established in market;
Weakness: traditional distance education tuition which leads to
High drop out rate, and not preferable by customers.
10.1.2 Damelin
Strength: Extensive advertising drive
Weakness: Too many of their programmes are not accredited
10.1.3 Intec College
Strength: Their association with SETAs
Weakness: Traditional distances education tuition which leads to
high drop out rate, and not preferable by customers.
10.1.4 Boston City Campus
Strength: Large institution, already established in the market
Weakness: their prices are too high and cannot be afforded by the
majority of the target market.
Before 2006 the Private FET college sector was not regulated and this has
resulted in the mushrooming of colleges offering poor quality learning
programmes that do not lead to credible certification. This plethora of
colleges in the vicinity of The Devine Institute offers indirect competition;
however, our pricing, customer service, certification and reputation are
critical in making us successful. The recent implementation of the Further
Education and Training College Act of 2006 by the Department of
Education will clear the unscrupulous colleges which will be advantageous
for The Devine Institute.
24
For individuals who value the importance of further education, The Devine
Institute offers a great alternative to tradition education and training
tuition. Unlike those programmes, The Devine Institute combines a
diversity of tuition methods to suit every individual.
The Devine Institute must charge appropriately for the high-end, highquality educational and skills development services we offer. Our revenue
structure has to support our cost structure, so the salaries we pay to
assure quality services must be balanced by the revenue we charge.
We will be price competitive in the market we serve; however, we will not
subscribe to the low price leader concept. The quality of our service will
support the price we charge.
Advertising - We will be using direct mail campaigns, preenrollment drives, and local community newspapers advertising to
launch our initial campaign.
Sales Brochure Our programmes are classified as scarce by the
SETAs, and accreditation of our programmes will help sell the
institute to prospective clients.
Direct Approach - We will approach the Human Resources
personnel of the target market to alert them of our programmes and
register ourselves as potential service providers on their databases.
Community involvement - We will be active in the communities
that we supporting selected community uplifting projects.
Provisional Representatives - The Devine Institute will recruit a
representative on a short term contract basis to distribute
advertising materials in their respective provinces to ensure that
brand awareness of The Devine Institute remains revived to the
target market.
12.0 SALES STRATEGY
26
The Devine Institute will sell its services and offerings, separating itself
from tradition college-only offerings. We will be a one-stop shop for skills
development services, advanced learning and specialized programme
offerings. We will also be active in the community, building a solid
reputation with community through our community development projects.
2014
2015
2016
2017
Full-Time Tuition
40
60
150
250
Part-Time Tuition
15
25
30
50
Total
55
85
180
300
Full-Time Tuition
20
50
60
80
Part-Time Tuition
10
15
30
50
Total
30
65
90
130
85
150
270
430
FULL QUALIFICATIONS
SKILLS
PROGRAMMES
GRAND TOTAL
The annual sales projections are included here in the following table
2014
2015
2016
2017
Full-Time Tuition
R7000
R7840
R8780
R9840
Part-Time Tuition
R6500
R7280
R8155
R9135
Full-Time Tuition
R3500
R3920
R4390
R4920
Part-Time Tuition
R3000
R3360
R3765
R4215
FULL QUALIFICATIONS
SKILLS PROGRAMMES
Course Fees
Course Fees
Collectable
2014
2015
2016
2017
Full-Time Tuition
R 280,000
R 470,400
R 1,318,350
R
2,460,000
Part-Time Tuition
R 97,500
R 182,000
R 244,650
R 456,750
Total
R 377,500
R 652,400
R 1,563,000
R
2,916,750
Full-Time Tuition
R 70,000
R 196,000
R 263,400
R 393,600
Part-Time Tuition
R 30,000
R 50,400
R 112,950
R 210,750
TOTAL
R 100,000
R 246,400
R 376,350
R 604,350
R 477,500
R 898,800
R 1,939,350
R
3,521,100
1. FULL
QUALIFICATIONS
2. SKILLS
PROGRAMMES
GRAND TOTAL
28
Note an assumption is made that full installments are paid by all learners
for 12 months (i.e. R650 x 12) excluding the first deposit payment at an
average figure of R1500.00 per learner.