Strategic Management - Final Presentation

Industry: Education Particulars: Private Secondary Education Brand: Beaconhouse School System
Group: 4 Asra Nadeem Zainab Shah Naveed Nasrullah Mujtaba Tariq

Industry Overview
7th biggest sector in Pakistan 47% comprises of private sector Private sector is predominantly English medium 55% literacy rate

Sector Hierarchy
67 Government Universities HEC 57 Private Universities Federal Board SEC Provincial Boards Private Sector Government Schools Leading Schools: BSS LGS KGS SSS City Schools International Schools

Industry History
Madrassas and Mosques (Pre Colonization) British Universities (IndoPak)

Karachi Grammar School (1st Private School in Pakistan 1847)

Establishment of Beaconhouse (1st Private School Business 1975)

Agha Khan University (1st Private University in Pakistan -1983)

On going establishment of private sector education

Industry Penetration, Growth and Trends

Quality Expectations
American and British Syllabus Trained Teachers Extra Curricular Activities Sports and Purpose Built Campuses

Career Counseling and Guidance

Finishing Schools and Grooming

Growing Trends
Purpose Built Campus Foreign Trained Visiting Faculty Liberal Arts Education Participation in International Events and Competitions Semester Based Education Systems

Porters Five Forces

Bargaining Power of Buyers Threat of Substitute Products

High

Low

Threat of New Entrants

Low

Rivalry Amongst Existing Schools High Investment Intensity Differentiation on Quality

Buying Power of Supplier

High

PEST Analysis Private Secondary Education

TERM Political ANALYSIS -Politically influential families like the Kasooris dominate the Industry -Investments and opening of new international schools is effected by the political situation -Education policy is greatly effected by government decisions Economic -Educational budget allocation by the government effects the private sector with an influx in available resource -Inflation raises the cost of education in private sector -Fluctuation in Dollar prices effects private schools

PEST Analysis Private Secondary Education

TERM Social ANALYSIS -Co-education is an issue -Shift from board exams to GRE and levels -Brand and location is associated with status in society Technologic al -Development of high tech labs -Development of media labs -No websites and online enrollment

Target Brand and Industry Competitors

Target Brand: Beaconhouse School System

Industry Competition:

Lahore Grammar School

The City School

Private Schools (Punjab) Spread and Coverage

Spread and Coverage*

30%

54% 15%

BSS LGS City Scool Other

1%

*HEC annual report 2009

Sales and Revenue

1,500,000,00 0

Sales and Revenue*

9,000,000,00 12,000,000,0 0 00

BSS LGS City School

*Average Sales and Revenue Stats provided by school administratio

External Factor Evaluation Matrix

Key External Factors Opportunities Growing Trend of Population Standard of Education Quality of Teaching Healthy Environment High Tech Study Methods Targeting every segment of population Purposely Built Campuses Threats Competition High Cost of Education 0.15 0.1 4 3 0.6 0.3 0.1 0.12 0.08 0.07 0.07 0.03 0.08 2 4 3 1 2 2 3 0.2 0.48 0.24 0.07 0.14 0.06 0.24 Weight Rating Weighted Score

Political Instability
Virtual Education Society Divide Total

0.08
0.06 0.06 1

3
2 2

0.12
0.12 0.12 2.81

Competitive Profile Matrix

Critical Success Factor Weight Beaconhouse Ratin g Education Quality Management Location Price Competitiveness Financial Position Brand Recognition Expansion in Country Local Market Share TOTAL .20 .20 .15 .15 .10 .10 .05 .05 1 3 4 4 2 3 3 4 4 Score 0.6 0.8 0.6 0.3 0.3 0.3 0.2 0.2 3.30 LGS Rating 4 4 3 1 4 4 3 3 Scor e 0.8 0.8 0.45 0.15 0.40 0.4 0.15 0.15 2.81 City School Ratin g 2 3 1 3 3 2 2 2 Scor e 0.4 0.6 0.15 0.45 0.3 0.2 0.10 0.1 2.3

SWOT Matrix
Strengths Quality of education Trained faculty Well-connected and strong management Weaknesses Not affordable by lower middle and middle class Lack of ecommerce Teacher labor union Parent union Traffic and school parking issues Opportunities Population growth Threats Strong competition in big towns by local businesses International schools Socio political instability

No nation wide competitor

Targeting lower middle class by cheaper education programs Online education

Purpose built campuses

Easily accessible locations Syllabus standardization Nation wide availability

SWOT Matrix

SO Strategies More purpose built schools Spread Educators (cheaper education) in all locations/segments

WO Strategies Improve ecommerce and online education and training Increase busses and efficient transportation system

WT Strategies Create nationwide transportation systems

ST Strategies Take over local school (horizontal integration)

Rotate teachers within branches to break unions

Student counseling

Increase curriculum and universities in other cities

BCG Matrix

IE Matrix

Grand Strategy Matrix

Competitive Strengths
Small Share / No Money Strong Share or Strong Money Strong share and Strong Money Increase demand for existing products and services (educators and more BSS campuses) Increase market penetration Enhance existing services Lead strategic partnerships and student exchange programs ------------------------------------------ Add related products (universities) Create Joint Ventures

Sector Strength

Growing

N/A
0

N/A

Shrinking

QSPM Matrix
KEY INTERNAL FACTORS MARKET DEVELOPMENT MARKET PENETRATION

Internal Strengths
Largest school system in Pakistan Financial Position Marketing and Advertisment Information Systems School locations Training and development Employee Capital Internal Weaknesses Operating Expenses Transportation 50% non purpose built campuses Old Teachers unfimiliar with new trends

Weight
0.15 0.1 0.15 0.15 0.05 0.05 0.05

AS
2 3 3 2 3 4 2

TAS
0.3 0.3 0.45 0.3 0.15 0.2 0.1

AS
3 3 4 2 4 3 3

TAS
0.45 0.3 0.6 0.3 0.2 0.15 0.15

0.1 0.05 0.1 0.05 1

0.1

0.2

0.05

0.2

Key External Factors Oppertunities

Globalization
Penetration Decenteralization Horizontal and vertical integration Threats Strong Competition Low cost substitutes New Players Government policies Total Sum of Attractiveness Score

0.05
0.25 0.1 0.15

2
2 3

0.1
0.2 0.45

3
4 2 4

0.15
1 0.2 0.6

0.2 0.1 0.05 0.1 1

3 3 3 1

0.6 0.3 0.15 0.1 3.85

2 2 1 1

0.4 0.2 0.05 0.1 4.7

Recommendations
More purpose built schools Spread Educators (cheaper education) in all locations/segments

Improve ecommerce and online education and training

Increase busses and efficient transportation system Take over local school (horizontal integration)

Increase curriculum and universities in other cities

Create nationwide transportation systems Rotate teachers within branches to break unions Student counseling

Thank You!