MBA 2 (STRATEGIC MANAGEMENT)

MODULE STRATEGIC MANAGEMENT

MODULE TUTOR MERVIN SOOKUN

PREPARED BY: FATIH AKYILDIZ ID NUMBER: B0141ROKG0811

TABLE OF CONTENT

I-

Introduction Mission and vision statement and core value Objectives of company

II-

Analysis of the environment and competitive dynamic PEST- 5 forces

III- Internal analysis Seven S models- Swot Analysis IV- Strategic choice model Generic strategies- Blue Ocean VImplementation

VI- Conclusion

1. INTRODUCTION This assignment will mainly focus on the DL Limiteds business plan; this business plan will be from our perspective and it will be followed with the points are given for us. This assignment will cover the DL Limiteds business plan with the two chosen country those countries will be Brazil and Malaysia. Sterling Consulting Company is one of the small UK education consulting firms. DL Limited will be the part of Sterling Consulting Company which will work with the chosen two countries they will bring the students from those two countries to the UK and will help them to get two degrees on engineering, business and IT. Than they have decided to change their style. They begin to give distance education and we will be doing the same thing but in a two different country. a) Mission Statement of DL Limited There will be the beginning of this part of assignment which is mission statement basically the organisations purposes as well as the organisations objectives and aims. According to our report we have chosen two different target countries which are Brazil and Malaysia which are including two different markets and two different target people type. In our report we will be analysing those two countries marketing, financial, TMIA perspectives and this report basically focus on the chosen markets and opportunities on this markets and there will be a discussion of why those are two chosen markets. This report will answer all those questions with the sufficient analyse on those targets. Our mission is tried to get sufficient students and apply them to the UK degrees by the distance education and give those students opportunity of getting two degrees from their subject. It has been made between Turkey and UK as it has been given details of it in the case study of this report and we will get the impacts of the written case study which is still focusing by the case studies

chosen organisation Sterling Consulting we are the chosen advisor our mission is focusing on two different markets and making their connection with the UK and let the chosen organisations students to get two degrees. As well as it has a really good advantages especially for the still growing countries like Turkey. Our markets are Brazil and Malaysia as we have mentioned in the above. Those countries conditions are really good for doing this business thats why we have chosen those two countries. Those countries are growing countries as well as they do have good target area where we will be focusing on huge student potential. It was the biggest reason for us to choose those two countries especially Brazils conditions are look like Turkeys conditions. Basically in this part the aim was the give the missions of the organisations in the above there was given the purpose and objectives of organisations from the chosen markets and target. Our main aim will find two good, sufficient markets and give those students distance education and lastly give them advantage of getting UK degree certificate. b) Vision Statement and Core Value of DL Limited Our vision will be getting the highest efficiency from the chosen countries and reach to the sufficient targets. The vision will be to be one of the reachable and variable organisations on the chosen countries and will give the highest quality to our students in their country with the networking system. People: Be a perfect choice for the students who want to go get university degree.

Portfolio: Bring good option and alternative option in the chosen countries for the future university students. Partners: There will be UK degree universities will be our partners on this business.

Profit: Maximize long-term return from the future students of our system and get sufficient profit from this business. Efficient: Be a highly effective, lean and fast-moving organization. c) Objectives of DL Limited To get the highest efficiency from the chosen markets To get sufficient profit from the chosen markets To be the great option for the future students To be the best in this area in the chosen markets To give the quality education for the students Another objective, giving the same education with the universities in those countries. Being a symbol in the education in those countries Making videoconferencing lectures professionally and effectively

2 Analysis of the environmental and competitive factors with the Portals 5 Forces for the Brazil and Malaysia In this part there will be focusing on the environmental and competitive factors, benefits disadvantages. As well as there will be considering on the PEST 5 forces. BRAZIL -Brazils environmental analysis: The biggest advantage is population for Brazil it is growing country and it will help us with the high rank of young student population. If we get this structure it shows us our targeting market is close to enough in Brazil as well as it does have so many disadvantages as well but benefits of environment is covering all those disadvantages. The biggest disadvantage is strict government rules in education in Brazil. But it is not

insoluble problem. First of all we should have sufficient information higher schools and universities education in Brazil. Bachelors education is 3 6 years like in UK universities. Brazil approves two types of universities which are public funded and private. If we enter this market we will give private education as well. Normally public funded universities are giving the best education it is financed by the Brazil government. Our aim will be giving better education than the other private universities in the country with the distance education. There is only one university in Brazil which is giving distance education which is the public university as well our advantage will be UK degree all the Portuguese students want to know good English our biggest advantage could be English language when the entering to the market. We will have foundation courses, even we will have some English Language courses in the Sau Paula and we will give English education there and our all lectures which we will give with the networking system will be in English language in this case our system will have sufficient demand and we will have an advantages to choose required students for our courses. - Competitive Analysis in Brazil We have given environment of high schools and universities in Brazil in the above as well as there were mentioned about benefits and disadvantages of the entering to the marketing in Brazil. According to nesobrazil.org The number of students engaging in higher education distance programs in Brazil is rapidly growing. Between 2007 and 2008 alone (the latest year of which data available) the number of students in distance undergraduate programs almost doubled to 761.000, summing 13% of the total amount of students in Brazilian undergraduate education in 2008. The large geographic distances in Brazil and also the difficult and limited access - due to a high demand and a relatively small offer - into presential undergraduate courses seem to trigger a segment of the market to choose for distance learning in higher education.( nesobrazil.org)

This reference shows us the demand is good in Brazil. According to this there are some organisation wants to use this potential. It shows us that we have to do competitive analysis very well for Brazil before entering the market. Those competitive analysis and market entry strategies will be following this part. Competitive Analysis for Brazil We will look at answers of these questions for Brazil. Who are our competitors? The biggest competitor will be governments distance Education University and future organisations who want to do distance education in Brazil. What threats do they pose? They do not do their education in English in Brazil if we give great education in English it will be their threat to pose. What is the profile of our competitors? Their advantage is they have got power of government it makes them strong it is the competitors profile. What are the objectives of our competitors? Our competitors advantages are being under control of the Brazil Government. They want to give the best education to their students like us. What strategies are our competitors pursuing and how successful are these strategies? They are specific programme and they are implementing these programme to the distance education students their known strategy is following this programme well. (tutor2u.net)

Politics and Legislation In Brazil there are strict rules in the education it can be a disadvantage for the business plan but if we follow the rules well than it will not be a big problem for

us as well. In Brazil there are two types Universities, governmental and private they do focus on well than the other private schools they do not give funds for the private schools. Economy, Business Environment In the above there was mentioned on the environment of Brazil in distance education with the competitive analysis of Brazil in distance education. Brazil is the largest country in South America with the maximum population. Today, Brazil economy is on the rise. Blessed with abundant natural resources, Brazil has become the most powerful country in South America in economic terms and thus is leading the other countries of South America. With large and growing Agricultural, mining, manufacturing and service sectors, Brazil economy ranks highest among all the South American countries and it has also acquired a strong position in global economy. As a result of falling real wages during 2001 to 2003 the economy of Brazil grew only 2.2% per year. (average). (mapsofworld.com) Society There are so many ethnic groups in Brazil the capital city is Sau Paula. Brazil exist good and mixed environmental society for our business plan in there. Technology Brazil of the biggest and modern country in South America they do use technology well in South America so we will be using networking system there. That is why there has to have great networking system, it exists in Brazil.

Malaysia Environmental analysis: Basically the biggest advantage could be population in Malaysia as well like Brazil. In Malaysia there are twenty public universities and thirty three private universities. We will have advantage in Malaysia there is no strict governmental rules. We will have high target of students. Competitive Analysis for Malaysia Who are our competitors? London international will be our strongest competitor in Malaysia. They are doing distance education and they do have 2700 current students but we will have advantages instead of them. Because they are doing well and they do not have any competitors in distance education right now. What threats do they pose? They are not waiting for any competitor who will do the same job with the UK. It would be threat that they will pose. They feel their selves indispensable, because of this reason they do modify prices however they want all those will be risk for them when we enter the market properly. What is the profile of our competitors? They are one of the biggest organizations who is giving distance education. They have four education centres in Malaysia and five registered places. As well as they have 2700 current students to harbour. This is the profile of our competitor called London international. What are the objectives of our competitors? To be the best on their job as well as get the high profit from this job. They want to use the potential students in Malaysia and give them better education

and quality education rather than the other university students or high school students. What strategies are our competitors pursuing and how successful are these strategies? They are using general strategies and as well as blue ocean strategy they focus on those both strategies on their business life in distance education. 3. INTERNAL ANALYSIS a) SWOT Analysis According to Nadine Pahl, Anne Ritcher The SWOT analysis is a beneficial tool for decision making and understanding dependencies between a company and its environment. Proactive thinking is enabled, rather than counting on subjective opinions. In order to achieve objective results, other techniques influence the input factors of the SWOT analysis positively (e.g. strategic issues analysis, competitor analysis, market analysis, environmental analysis and 7- S model), It sets a framework for reviewing the strategy, the position and the direction of a company. (Swot Analysis-Idea, Methodology and a Practical Approach) For Brazil: Strength: Brazils strength are young student population who want to study university as well as they have growing economy it will bring us advantages thats why all those are our strength in Brazil. Weakness: Brazils the biggest weakness could be its governmental rules in education for us. Public universities are giving better education than the private high schools or universities thats why people focus on the public universities and private universities staying after that.

Opportunity: If we give good education and if we create our own brand in the education in Brazil it could bring us so many opportunities and we will use all those opportunities and stay in the top and our demand will become high. The biggest opportunity for us we will not have great competitors and as well as there is a nice target population for us in Brazil the biggest opportunity could be our language English. Learning English and it is really great thing for the students to get their education in English; it is our best opportunity in Brazil. Threat: Our threat will be governmental rules in Brazil because they are not giving the same opportunities with the public universities or high schools but if we focus on those rules and consider our business plan it will not be a big threat. But on the other hand we have to know well that government will be our threat in Brazil. For Malaysia: Strength: - Enough target population and interest on education - Willingness to adapt technological method of learning - There is not good alternatives for distance education - Nice options to use networking - Good quality education models and technology exists Weakness: - Fear of change, they are not adopted well for the innovation - Difficult place for the innovative organizations - Internet access can be problem some places of Malaysia - There is no encouragement for the private organizations - Not existing enough demand in some places of Malaysia

Opportunities: - Population of the target students - Availability of the census data - Funding support from the parents for the education - Giving importance to the education - Tutoring internet and web, nice opportunities of internet and networking Threats: - High price for the software system, networking system - There will not be enough funds for private organisations - Hard to reach data for the students - Complexity of the software data b) 7S Models: - Strategy: We recommend implementing generic strategies in Brazil for our organisations future. Porters generic strategies will help to us in Brazil. - Structure: the organizational structure and operating approach that clarify tasks, responsibilities, and roles in the corporate hierarchy. - Systems: the procedures, processes, and flows of activity that allow an organization to operate daily. Some systems are common to all businesses, including information systems, capital allocation procedures, control systems, compensation and promotional systems, and other ingredients in the operating mix. - Style: the behaviour of the leadership, and therefore usually also the body of an organization. - Staff: the people who make up the organization, individually and collectively

- Shared Values: the mix of explicit and implied values and goals. Not confined to mission or value statements, shared values are internalized in a business and guide its behaviour. (Strategy: a step-by-step approach to the development and presentation ) 4. STRATEGIC CHOICE MODEL Portals Generic Strategies

In the above there has been made the competitive advantages and SWOT analysis for the Brazil and Malaysia in distance education for our organisation. Hereafter there will be focusing on the generic strategies for Brazil and Malaysia. Overall Cost Leadership

Increasing profits by reducing costs, while charging industry-average prices.

Increasing market share through charging lower prices, while still making a reasonable profit on each sale because you've reduced costs. (mindtools.com)

- Our organisation has to reduce the costs and profits will increase automatically according to Porters Generic Strategies. - The pricing system is really one of the main thing for the organisations. - We have to catch the average market price and as well as we have to give good quality as well. - The important step is keeping profits up while reducing costs in Brazil and Malaysia. - Trying to use economical networking system on the other giving good networking system is necessary in our business as well. Differentiation To make a success of a Differentiation strategy, organizations need:

Good research, development and innovation. The ability to deliver high-quality products or services. Effective sales and marketing, so that the market understands the benefits offered by the differentiated offerings. (mindtools.com)

There needs to have a proper research for the both countries market There needs to be exist the list of what kind of innovative staffs as well as what kind of innovations we can bring with us to those countries market

We need to have a good quality services in networking system as well as in our products

We have to do proper marketing office and well qualified marketing department staffs for those organisations

Mainly we have to be different from our competitors in both countries with our quality and with our services as well as with our marketing types. All those steps will make us different than the competitors and it means that we have done well differentiation, which is the Porters Generic strategies part. Focus Strategy According to Matthias Zoaple: Porter argues a focus strategy to work out only if a company is able to differentiate itself significantly towards its competitors either by cost or differentiation. Such a protruding feature would partly isolate a firm from competition as the feature would be hard and costly to imitate. (Focus Strategy for SMEs) - Portal makes the company to differentiation type via cost leadership or differentiation - The company has got to opportunity to implement these strategies - If the organisation will do first competitive analysis properly hereafter it will have opportunity to see to choose focus strategy for the organisation - Organisation needs to know clearly how to focus on differentiation and cost leadership according to their competitive analysis. - Organisation needs to know what low costs brings and what high costs brings to their selves. BLUE OCEAN STRATEGY The first question the value curves answer is whether a business deserves to be a winner. When a companys value curve, or its competitors, meets the three criteria that define a good blue ocean strategy focus, divergence, and a compelling tagline that speaks to the market the company is on the right track. These three criteria serve as an initial litmus test of the commercial viability of blue ocean ideas. (W.Chan Kim, Renee Mauborgne)

Its quite new strategy which has been found in 2000. Basically its nice strategy type for us to implement this strategy type to the Brazil we will not be able to implement this strategy for both countries because in this strategy type you will not have any competitor where you will focus place will be clean market. - We can implement blue ocean strategy in the Brazil - We will build our own system in Brazil - There will not be any private company if we enter the market - Distance education system will be under our control - As well as we have to consider on the SWOT analysis and the Porters generic analysis as well with the Blue Ocean strategy.

5. IMPLEMENTATION In the above we have focused on the SWOT analysis for both countries markets Brazil and Malaysia. We have considered on the strategies for the chosen countries Brazil and Malaysia. We have applied 7S for both counties as well. According to all those results of the analysis: - The organisation has to focus on the competitive analysis - According to competitive analysis there are advantages and disadvantages for both countries - We need to know well our competitors and according to those results we can choose our strategy. - We have done proper analysis of SWOT as well it will help us to choose our strategy for those countries as well. - Lastly there was focused on the strategy types which are: Porters generic strategies and blue ocean strategy.

- Our advice could be for Malaysia: focusing on the Porters generic strategies and for Brazil: mostly focusing on the Blue ocean strategy will be for their benefit. - There was made competitive analysis and swot analysis for Malaysia and according to all those results of analysis could be porters generic analysis especially differentiation could be well option. - There was made competitive analysis, swot analysis and 7S model and our recommendation, advice for Brazil our organisation needs to focus on the Blue ocean strategy.

6. CONCLUSION Our aim was for this report to advice DL limited two countries and make sufficient large analysis for those two countries. According to our aims we have been focused on two countries, we have chosen two different type of countries which are Malaysia and Brazil. We have focused on those two countries our aim was bringing distance education to those countries and give them UK degree. The same job was done with the Turkey and UK. DL limited wants to make the same business with the two different countries. Our aim was preparing the sufficient analysis for those countries, sufficient analysis covers: marketing analysis, strategy analysis, and competitive analysis. As well as we were the advisor for the organisation there was prepared report for the organisation for the DL limited. We have begun our report with the giving some brief of the chosen countries, we could say for it environmental analysis. We have begun our report with the environment analysis of those two countries. Hereafter we focused on the competitive analysis and SWOT analysis with the Porters 5 forces all those helped us to choose the right strategies for the organisation in those countries. We have done Internal Analysis for those two countries as well. After all those we came to choose strategies for the organisations in those

countries all analysis helped us and we have recommended blue ocean strategy for Brazil and generic strategies for Malaysia. When we were focusing on the SWOT analysis, we take strength, weaknesses, and opportunities, threats for each country and their environment for the distance education. Lastly we think that Malaysia and Brazil are correct places to setup the organisation and establish the companies there. They are right places to join and make the business of distance education.

BIBLIOGRAPHY - The SWOT analysis, Anja Bohm - Marketing Strategy, O.C Ferrel, Micheal D. Hartline, 5th Edition - Fundamentals of Management, Ricky W.Griffin, 5th Edition - Streategic Management, Theory and Application, Adrian Haberberg and Alison Rieple - The Business Environment, Ian Worthington and Chris Britton, 6th Edition - Understanding Strategic Management, Anthony Henry - Business Analysis, Debra Paul, Donald Yeates, James Cadle - Competitive Advantage, Creating and Sustaining Superior Performance, Micheal E. Porter - Foundations in Strategic Management, Jeffrey S. Harrison, Caron H.St .John

REFERENCES - http://www.nesobrazil.org/dutch-organizations/column/distance-highereducation-in-brazil - http://tutor2u.net/business/strategy/competitor_analysis.htm - http://www.mapsofworld.com/south-america/economy/brazil.html - Swot Analysis-Idea, Methodology and a Practical Approach by Nadine Pahl, Anne Ritcher pp. 27 - http://www.mindtools.com/pages/article/newSTR_82.htm - Strategy: a step-by-step approach to the development and presentation, by Mark Haynes Daniell pp. 23 - http://marketingteacher.com/lesson-store/lesson-generic-strategies.html - http://www.mindtools.com/pages/article/newSTR_82.htm - Michael Porters Competetive Advantage Theory: Focus Strategy for SMEs by Matthias Zoephel pp.5 - Blue ocean strategy: how to create uncontested market space and make the competition irrelevant By W. Chan Kim, Rene Mauborgne