Americ canUnive ersityofT Technolog gy Gradu uateStudi ies

Spring2011

Str gicM agem nt rateg Man men

Fina alProjec ct Ins structor: :Dr.A.B Bardawil l Prepare edBy:Jo osephKe eyrouz/E ElieSallo oum

OUTLINE

1.0 Executive Summary ........................................................................................................................2 1.1 Vision......................................................................................................................................................2 1.2 Mission ...................................................................................................................................................3 1.3 Keys to Success ......................................................................................................................................3 2.0 Company Summary .............................................................................................................................4 2.1 Management Summary..4 2.2 Company Ownership .............................................................................................................................5 2.3Services....................................................................................................................................5 3.0 Situational Analysis .....................................................................................................5 3.1 SWOT Analysis......................................................................................................................................6 3.1.1 Strengths ...................................................................................................................................6 3.1.2 Weaknesses ...............................................................................................................................6 3.1.3 Opportunities ............................................................................................................................7 3.1.4 Threats ......................................................................................................................................7 3.2 Competitive Edge .................................................................................................................................8 3.3 Marketing Analysis Summary...............................................................................................................8 3.4 Service Business Analysis.....................................................................................................................8 3.5 Competition.......................................................................................................................................8 4.0 Strategic Goals..9 4.1 Tactical Goals9 4.2 Action Plans..9 4.2.1 HR Strategy.9 4.2.2 Marketing and CS Strategy...10 4.2.3 Sales Strategy.11

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1.0 Executive Summary

The School is a start-up organization that provides education services to Horch Tabet, a suburb of Beirut. This facility serves students from three to seventeen years of age. Their services are safe and secure, providing the parents with an excellent place where their children can be taken care of. The Market The School market is quite competitive in Beirut area. There are over 30 different schools and two general types of facilities. The larger style is commercially run, typically a corporate franchise school. These facilities are both regional and national. There are also many different smaller locally run and owned faculties. While the largest facilities can host between 800-2000 children, the locally run centers typically have a maximum capacity of 200 children. As mentioned earlier, the market is quite competitive. The School will employ two strategies to differentiate themselves. The first is a pricing structure where services will be priced at 5%-10% less than the larger commercial run facilities. The second differentiating effort will be benchmarked customer service. The School will spend extra money to attract and train the best employees. This is especially important because it is the employees that interact with both the children and parents and will have the best chance to impress them enough to turn them into a loyal customer as well as to be vocal in telling their friends about their positive experience. The Customers The School will be concentrating on two different target customer segments. The first is full-time working couples. This group is forecasted to account for 80% of The School's business. This group is growing at a rate of 25%. The second groups of customers are the foreign customers who will use The School Special Programs. This group is growing at 20%.

1.1 Vision: The School will be considered the prime provider of academically challenging and internationally recognized programs in the MENA area, in preparing its students for higher education, with a global citizenship perspective, within a caring communal environment.
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1.2 Mission The mission of the School is to emphasize and extend the academic, physical and social character development of its students while promoting cross-cultural appreciation, providing a friendly and safe working environment and aiming to attract and retain qualified and satisfied personnel; whilst maintaining profitable and successful activities. The School aspires to academic excellence by offering coeducational, internationally recognized programs to academically ambitious local and expatriate students.

1.3 Keys to Success

We believe that: Learning is a lifelong process, of which formal education is only one part. Quality education prepares students for responsible citizenship. Students have a fundamental right to quality education in a safe, stimulating and positive learning environment. Individuals have responsibility to put forth continuous effort to become the best they may be. Students have different learning abilities and styles that need to be accommodated. Every individual has inherent worth and is entitled to respect. Accountability is essential to growth and success. The full emotional, intellectual, physical and social development of students is essential to quality education. The pursuit of excellence is a guiding principle for the school. Education is a shared responsibility between parents, students, staff, administration, and the Board. Cultural diversity enriches the school and is to be valued.

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2.0 Company Summary

The School will employ six fundamentals that will serve as the driving force for the services offered: Premier Education Services An Activity Based, Children Structured Collegiate Curriculum Advanced Technology and Developmental Programs Trademarked General and "Continuing" Education Mentoring and Tutoring Learning Services Community Advancement and Involvement

The School campus is a newly constructed, 3,600 square meter facility in the Horch Tabet area and will be developed meeting strict design standards.

2.1 Management Summary

The opening management team of The School will consist of the founders, partners, a campus director and administrative assistant. As the college grows, gradual investments in the instructional staffs will be made over the next 3 years.

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2.2 Company Ownership

This business will start out as a simple proprietorship, owned by its founders. As the operation grows, the owners will consider re-registering as a limited liability company or as a corporation, whichever will better suit the future business needs.

2.3 Services

High Standard Educational Programs

Special Planned Programs.

Market Research of Alumni and Parents.

Alumni Relations Programs.

Strategic Public Relations.

3.0 Situational Analysis

The School will succeed by offering its clients' children a safe and secure educational environment, and close personal attention. The goals of the School are dual-sided: to help parents feel good about the care of their children, and to make it a safe, educational, and fun experience for the student.

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3.1 SWOT Analysis The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing our school.

3.1.1 Strengths

Positive reputation in the external community Positive experience with those who interact with the campus Many Accredited Programs Faculty and staff support the campus mission Proactive student support: o Access to services o School involvement with students o Student special programs

Learning communities developing to enhance learning and student-school interaction Campus Characteristics Medium size campus with small class size Facilities include new and well-maintained, attractive buildings and grounds with growth potential Friendly and safe environment Campus wide involvement in planning Healthy shared governance Artistic and Cultural Performances (concerts/seminars/exhibits)

3.1.2 Weaknesses

Distinguishing qualities and identity not well known Operational structure/bureaucracy Fiscal uncertainty
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High and unequal workloads for staff Student preparedness at entrance Adjusting to pressures of growth Varying perceptions of appropriate proportions of major employee categories (staff, and administrators) Lack of strong, enveloping presence in the external community Limited resources for the school and staff development Reporting requirements absorb a large percentage of resources.

3.1.3 Opportunities

Expanded possibilities for the workforce in the area Diversity of region (students industry) External Community and School relationships: Interest in academic program expansion and in cultural activities Interest in services (Policy Center, Bridge, Mall) Growth potential New constructions Societal trends Increased value of higher education completion Growing demand for graduates Technological advances Partnership opportunities Large student pool Increased interest in school connections

3.1.4 Threats

Highly competitive market for diverse schools and staff Political crisis
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Increase in reporting expected by government and society Shift in focus on numerical achievement vs. qualitative achievement Development of other schools in the area Societal and student perception of education as solely a mean to a job Economical Crisis

3.2 Competitive Edge

The company seeks to establish a competitive edge in its new target market segment by increasing the level of customer contact and service that other competitors seem too often times lack. Additionally, The School possesses the necessary skills to provide high quality programs to the MENA area that are needed in this field. The establishment of the previously mentioned work processes that will ensure greater service will strengthen the contacts that promote word of mouth marketing and networking. 3.3 Market Analysis Summary The Lebanese Market is providing high quality education services to all the community and especially within Beirut district, this ensures fierce competition among schools in order to excel, attract and convince the people to join them.

3.4 Service Business Analysis The School is expanding its offerings. Our primary focus is now on offering the best instruction and education classes. We will tailor our classes by market segment and time of day, providing instructional opportunities during the morning and mid-day, after school sessions, and evening classes. 3.5 Competition There are many competitors in the Beirut District, providing different levels of education with different quality programs. Our main competitors are SABIS, I.C. and Rafic Hariri College that are internationally recognized and attract students from the MENA area.

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4.0 Strategic Goals

Help to prepare educational professionals recognized for the quality and significance of their teaching, research, scholarship, service, outreach, and leadership. Generate profit within the first year Provide diversified marketing strategies to reach the MENA community

Ensure excellent customer service

4.1 Tactical Goals:

These goals will be divided into three major parts: HR Strategy: Develop Training Programs within The School for the Managerial Staffs Have employees participate in outside training programs and special courses (one training program or one course per year per employee). Marketing and Customer Service Strategy: Develop diversified activities to reach different kind of people interested in joining our school Ensure no less than three promotion strategies with a new motto Reduce the number of claims by 10% every year

Sales Strategy: To guarantee a profit within the first year with a 5% return on investment

4.2 Action Plans:

4.2.1 HR Strategy

The HR department will make sure that all the employees and teachers will pass one training program or a special course outside the School, once per year at least, with a successful attestation (equivalent to grade A) from the party involved in providing the course or the program.
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The department will provide a special training program within the School, to help the new employees to have a clear knowledge about the Schools vision, mission and aim; and aid them get involved in the daily activities. A second program will be implemented on a quarterly basis for all the present employees, with passing grades and feed-back reports; that will assist them in improving their leadership skills and enhance their knowledge.

4.2.2 Marketing and CS Strategy Marketing in the school industry depends largely on reputation and referral. At The School that reputation will start within our community bolstered by our involved commitment to those we serve.

Promotion Strategy

We will depend on client referrals, community exposure and direct mail campaigns as our main way to reach new clients. As we change strategies, however, we need to change the way we promote ourselves:

1. Advertising--We'll be developing our core positioning motto: "A community college for all!!" to differentiate our service from the competition. We will be using direct mail campaigns, pre-enrollment drives, and local community newspaper advertising to launch the initial campaign. 2. Sales Brochure--Our theme and curriculum will help sell the college to prospective clients. 3. Direct Mail--We will send quarterly direct mail campaigns to the housing developments. We will also offer monthly calendars for parents, noting weekend family days and other open house approaches. 4. Community Involvement--We will be active in the community, sponsoring events at the community center for families and residents.

Marketing Programs

Catered open houses, parent survival days/nights, clubhouse pool parties and weekend movie matinees are but a few approaches we will utilize to reach out to our community. We will also develop and maintain partnerships with local businesses that cater to the needs of children. Our pre-opening effort will include an application fee waiver, free children ID cards, T-shirts and a community block party sponsored and hosted by The School.

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Customer Service

This department will assign a consultant for complaints, to ensure that all the claims will be followed up and resolved, in order to maintain our customers satisfied.

4.2.3 Sales Strategy

During the first period, The School will have no sales force outside of its owners, who will close the deals with interested customers created by actions of the marketing strategy. Many of the initial contacts will come via telephone inquiries. Whoever takes the call should draw out the calling party and jot down a brief profile. Developing a sixth sense for the goals of the customer (stress relief, find new hobby, etc.) is key. If a customer is looking for stress-relief, then peaceful surroundings are essential. Walk-in inquiries should be handled in a similar fashion. Brochures containing particulars and an up-to-date price schedule should be available in a box by the door. Because of the school's high profile location with large picture windows facing onto a busy pedestrian area, it is common for passers-by to look in. The location by itself is a marketing tool to attract students Good salesmanship will result is developing an ability to differentiate the interested from the merely curious. It is important not to be shy with interested parties. If the same person is noticed frequently looking in the window, or picks up a brochure and scans it, one of the owners must make a sales approach, even if it means opening the door and inviting the person in. Offer a cup of coffee, try to form a rough profile and offer to set up a time for registration.

We will provide services, advanced learning and specialized program offerings. We will also be active in the community, building a solid reputation with parents and the community. By succeeding in these areas, we expect to begin seeing an operational net profit in month nine of the 1st year, while increasing enrollment by 32% monthly for the first 8 months and gradually thereafter, until our maximum allowed capacity is reached.

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Pricing Strategy

The School must charge appropriately for the high-end, high-quality educational 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 prices we charge.

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