Executive Summary
Purpose of the Plan
The main aim of this plan is to outline a start-up MBA program targeting the UK, China, and India Markets. The name of the proposed University will be London MBA School which will be located in southern London. The major activities of the University will be grouped into four categories at the beginning: – accounting, business administration, finance, and investments. This plan aims to be a solid basis for the pursuance of the MBA programs that will guide the operations and management of the University. It will also serve as a tool to acquire financial funding for the University.
University descriptions
The location of the University will offer advantages like high demand, security, good infrastructure, area busy with other business activities, and good return of investment. Among those short-term goals of the University, it will be aimed at increasing its revenue by 10 -15% in three years and employing 20 lecturers within 2 years. The long-term goals of the University are to open new branches after 3 years in India and China. The University is aimed at offering quality MBA programs to global students.
Marketing plan
Through research carried out in London the investor identified some of the students that will be interested to pursue MBA programs. The University shall face competition from universities in the UK offering the same services. The education system is said to be generating approximately £ 20 million in revenue in London Universities alone per year. We have done comprehensive research on both its strong points and its weakness. The University plans to:
- Improve the work on the threats in the SWOT analysis and eliminate the weak spots in the competitors
- Ensure and maintain good student relations
- Play a smart and creative to overcome the competitor’s tactics
- Invest in the lecturers to ensure talent retention poaching from the competitors.
The University has identified three market segments that will be the target market of the MBA programs, Indian students, China, and the UK. The University will use various communication tools for example website information and brochures to advertise to create more awareness about the MBA programs.
Organization and management plan
The University shall head by the proprietor assisted by assistants. Further employees will be assigned duties in their areas of specialization to promote efficiency in service delivery. The proprietor will ensure that the objectives of the University are achieved.
Operation Plan
The University needs a lot of money to start its operation. At the start, the university will rent premises and books that will be required daily while others will be acquired later. This plan is flexible to change through its organizational plan.
Financial plan
This forms the most integral part of the University. The pre-operational costs will take a total amount of £ 600,000. The working capital will be £ 150,000. The revenues of the whole year will be £ 680,000 with a total cash inflow of £ 655,000. The total expected expenses at the end of the year add up to £ 450,000. The university will get a total net profit of £ 230,000 at the end of the financial year.
Introduction
The changing business climate all over the globe is demanding more and more business leaders and administrators. For a person who has a vision of setting up an international business, it is crucial to acquire hands-on experience before embarking on such a project. Having acquired basic experience, it has become apparent that it will not be enough to guarantee success.
This university will offer Global MBA Programs with a principal focus on the management of corporate. The university should be able to bring together people from different cultures thus bringing the international community together. This university will be able to bring these factors together.
London MBA School
London MBA School will attract many students to its programs due to their admirable and attractive programs. Many students will be motivated to join the London School of MBA to pursue MBA programs because of its advantages. The university will be strategically placed as well as well marketed for international and local universities. The university will provide a good research department in the areas of banking and finance. This will act as a persuasion factor for many students to join London MBA School. The records of teaching and research in the fields of MBA will not only be excellent but also superior in terms of quality compared to all other Universities in the UK offering similar programs.
Most Universities that are committed to offering quality academic programs to the satisfaction of students always do so at high costs that most potential students are incapable of meeting. However, at London MBA School the quality remains intact; uncompromised while the cost of living is also relatively low especially in the southern part of London. With the relatively low cost of living one would thus prefer to study at London MBA School and gain the much-needed quality training and competence that meets global market demands of professional human resources. The dynamism of the world’s economic and institutional structures calls for the professionalism that is embedded in practicality and knowledge founded on current issues in business management.
At London MBA School, MBA courses are specially designed to meet the academic needs of various students. Such students could be having relevant business backgrounds wishing to further their education in their areas of interest and gain competence in the management field (Sutherland & Crowther 2006, p. 73). Therefore the institutions’ curriculum, commitment to research, the conducive and student-friendly environment, and expertise and experience of lecturers in the business field leaves one greatly agitated and persuaded to learn at this University. The curriculum for MBA is structured and the course instructors are famous and renowned for their previous written articles and authors of great books that form the literature for the course work. It is thus this great competence, professionalism, and experience of the professors and lecturers that motivated me to consider this University (Kreitner & Kinicki 2010, p. 12). It is the culture of the University’s professors and lecturers to build close relationships with the students. This helps students in finding solutions to various challenges in the course of their studies, projects and gives reassurance to students.
MBA programs Overview
The MBA program will help international students to acquire knowledge relating to international business management. The process of imparting knowledge will involve the behavior, competencies, and personal values of international students (Ziegler 1995, p. 34). Our MBA programs will meet international standards as one of the best MBA programs in the world. The program will operate in partnership with various universities in China and India universities. Though this school is one of the best European schools, the MBA program would attract more customers if it ensures a continuous operation of the program throughout the year in different locations (Ziegler, 1995, p. 45).
The main purpose for international students in attending MBA programs at London MBA School is to attain three core values. For instance, they want to learn the style of the different cultures of management, understand the international business environment and their way of reasoning and reacting to situations, and their mode of communication. All these actions greatly influence business either negatively or positively. International students are interested in working for multinational Corporations that originally come from the west hence seek to understand the requirement to qualify for positions available in these corporations. In addition, the students are open-minded and aim at grabbing opportunities that enhance the development of their skills at the global market (DeAngelis, 2008).
London MBA school programs will act socializing ground for students to understand the core values of each culture and the values of leadership in some cultures. The program develops trust and loyalty among its student thus promoting the possibility of productive interaction even after the students have left the school. This will lay a ground for the student to come together in the future as an Alumnus for purpose of developing competent leadership at the global level.
The students who will pursue the MBA program in London MBA School will be thought to be creative and analytical, skills that are required in the modern internal business (Hartel 2005, p. 75). The global market demands of human resources do suit individuals who are tailored extrinsic The ability to relate the banking and finance concepts to the concepts in other disciplines like economics is greatly enhanced by the deep learning approach.
The deep approach to learning enables a learner to actively engage with programs ideas, concepts, and theories aimed at assessing (Rosenberg 2006, p. 43). The contents, coursework, and research work in MBA would be easy to synthesize through and understand (Ziegler 1995, p. 54). This is so because the deep learning approach that is my preference is greatly complemented by the program modules and the lecture approaches of the professors and lecturers at London MBA School. The university academic staff works in collaboration with students to help the student acquire accurate and updated information and knowledge in their area of specialization (Ohisson 2010, p. 28). The deep learning approach would thus support me and create an enabling environment for me to articulate my needs to the interactive course instructors at the University. This is because the approach enables me to link up with other students in the same course for group discussions and further critical examination and analysis of the theoretical concepts and principles discussed in class (Weigel 2002, p. 112). The skills and knowledge acquired through deep learning remain inherent in one’s learning process (Ziegler 1995, p. 55).
Mission Statement
London MBA School‘s mission is to bring to market the best MBA programs to the market. High standards of quality and excellence will be established at the university.
London MBA School will devote 2% of its profits to local activities. London MBA School‘s objective is to keep things simple. The core internal mission statements are:
- How well do students want to be treated?
- What will make students join our university
Keys to Success
London MBA School‘s keys to success will be building on its internal brand recognition to provide its future university complete support. Market penetration strategy combined with image programs differentiation will be one of the university’s key success factors. Creating strong student values by instilling a student-driven approach to recruiting lecturers, and by maintaining a culture of an open, friendly atmosphere will no doubt create a casual fun-loving image.
Target market
The university will target students from various countries but, to begin with from India, China, and the UK. These three countries require internationally trained workers because of the growth rates and multinationals those are operating in their countries (Griffin and Moorehead, 2010). These segments are a special group of students, a specific geographic area, or a particular service line. After conducting research about the above-discussed aspects and gathering adequate and necessary information, marketing strategies have to be designed, after the program development and the analysis of marketing opportunities. Specific strategies suitable to the target market have to be developed, even while the service enters the different stages of its life cycle. Strategies that are thus developed at these stages should be so effective that competitive advantage is always sustained.
SWOT analysis
This analysis avails information that matches the university’s potential to be competitive in the market (Smith and Chaffey, 2005).
Strengths
One of the strengths the university should consider is the resources at their disposal. The owner has wealth of experience that will enable the university to compete well in the market. In addition, the university offers unique programs that will target students from Asia and UK. London MBA School will be one of the pioneering universities to offer only MBA programs in the area
Weaknesses
Simply refer to the absence of certain strengths and include lack of patent protection, poor reputation among students, and high-cost structure. The university’s main weakness is that it has remained focused on only MBA programs which will limit the market. Although specialization can be considered as an important strength for any university, the potential problem lies in the lack of diversity especially should competition starts to come in. Other weaknesses include financing the start-up and obtaining further working capital (Ries and Jack, 2000).
Critical Issues
The university brand is in the development stages and its success will depend on the nature of service delivery to the market. some of the critical issues will involve empowering lecturers to make informed decisions as if they’re owners of the university. The
Opportunities
Are considered beneficial outlets that lead to profit and growth. They include a student’s need, incorporation of new technologies, favorable regulations, and removal of unnecessary stringent trade barriers. China and India are growing very fast and they require educated people (Mitchell, 1993).
Threats
Do lead to poor university performance and include shifts in students away from our programs and an increase in completion. A good understanding of the strengths, opportunities, weaknesses, and threats allows for an informed analysis of the university (Kotler and Kevin, 2006).
PEST analysis
Being the largest global University, London MBA School will focus on the international environment. The university’s position in the PESTEL analysis is very strong in terms of the economic, social, technological, and environmental factors, but its standing in the political and legal factors is very weak. Any other involvement of the university in either of these factors would result in them losing its market share in the world (Cross & Miller, 2008; Kotare and Helena 2004).
Management and Ownership
The university will be managed by the owner who will oversee the day-to-day operation. The owner is an experienced educational manager, who has over 20 years of experience in education and holds an MBA degree. The owner has extensive knowledge in evaluating and implementing marketing strategies.
Market Needs
At the moment there are many universities in London, but the market is dominated by the London school of management. There exists a need in the market for a specialist university that incorporates the MBA student’s concerns without compromising the excellence. The University’s main aim is to respond quickly and deliver quality education to local and international students who are looking for higher education. The university introduces its services by targeting all people with the ability to join a university and willing to increase their educational background. The education services that are offered by the university needs the student’s needs by covering almost all faculties, being delivered by the best lecturers using the current modern technology innovations. The university is working in collaboration with other international institutions in marketing itself as a one-stop university for international students. They provide quality education in an efficient way to all students from English-speaking countries. the specific target markets initially were London and the environment however due to internationalization and globalization the university has evolved to include all students from other parts of the world with enough income to meet the fee charged by the university (Clow, 2009).
Marketing mix
The marketing mix plays an important role in formulating and implementing a marketing strategy for companies. 4 Ps have been developed and extended to the 7 Ps with the appearance of People, Process, and Physical evidence on to the price, promotion, and place. It provides an effective strategic framework for changing different elements of a university’s product offering to influence the demand for services within the target market (Kotare and Helena 2004).
Service: the university will offer MBA programs only
Price: the university will charge a price which is lower than their competitors
Place: the university will be in southern London.
Promotion: internet and brochures will be used in marketing
Financial Analysis
This section will discuss the initial start-up costs, financial assumptions, and revenue forecast. The initial cost will cover all expenses in the first month of operation. The financial assumptions section will be the basis for the revenues forecast and the achievable net gross and net profit.
Funds Required and Use
The owner will look for investors to inject £ 600,000 to cover the initial operating expenses of the university.
Conclusions and Recommendations
As part of business usual procedures, London MBA School needs to determine their financial needs and engage in advantages. Advertising will be a key factor in the success of the MBA programs. It is, therefore, necessary to invest in advertising to maximize the potentials of the university.
List of References
Clow, E. 2009. Integrated Advertising Promotion and Marketing Communication. Chicago: Pearson Education.
Cross, F. B., & Miller, R. L. 2008. The Legal Environment of Business: Text and Cases — Ethical, Regulatory, Global, and E-Commerce Issues. New Jersey: South-Western College/West.
DeAngelis, T. 2008. Peterson’s MBA Programs 2009, New Jersey: Petersons.
Griffin, W. & Moorehead, G. 2010. Organizational behavior: managing people and organizations. Mason: South-Western/Cengage Learning.
Hartel, C., Zerbe, W., & Ashkanasy, M. 2005. Emotions in organizational behavior. New Jersey: Lawrence Erlbaum Associates, Inc.
Kotare, M. & Helena, K. 2004. Global Marketing Management. New York: John Wiley and Sons
Kotler, P., & Kevin, L. 2006. Marketing Management. New Jersey: Pearson- Prentice Hall
Kreitner, R., & Kinicki, A. 2010, Organizational behavior. Boston: McGraw-Hill/Irwin.
Mitchell, A. 1993. Advertising Exposure, Memory and Choice. New Jersey: Lawrence Erlbaum Associates.
Miner, J., 2007. Organizational behavior, from theory to practice. New York: M.E. Sharpe.
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Sutherland, P., & Crowther, J., 2006. Lifelong learning: concepts and contexts. New York: Taylor & Francis Group.
Weigel, V., 2002. Deep learning for a digital age: technology’s untapped potential to enrich higher education. San Francisco: Jossey-Bass.
Ziegler, W. 1995. Ways of enspiriting: transformative practices for the twenty-first century. Denver: FIA International LLC.