Strategic Management - Final Presentation

Industry: Education Particulars: Private Secondary EducationBrand: Beaconhouse School System

Group: 4Asra NadeemZainab Shah

Naveed NasrullahMujtaba Tariq

Industry Overview

7th biggest sector in Pakistan

47% comprises of private sector

Private sector is predominantly English medium

55% literacy rate

Sector Hierarchy

Industry History

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

Porter’s Five Forces

PEST Analysis – Private Secondary Education

TERM ANALYSIS

Political -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 ANALYSIS

Social -Co-education is an issue

-Shift from board exams to GRE and levels

-Brand and location is associated with status in society

Technological

-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

30%

15%

1%

54%

Spread and Coverage*

BSSLGSCity ScoolOther

*HEC annual report 2009

Sales and Revenue

12,000,000,00

0

9,000,000,000

1,500,000,000

Sales and Revenue*

BSSLGSCity School

*Average Sales and Revenue Stats provided by school administrations

External Factor Evaluation MatrixKey External Factors Weight Ratin

gWeighted Score

Opportunities

Growing Trend of Population 0.1 2 0.2

Standard of Education 0.12 4 0.48

Quality of Teaching 0.08 3 0.24

Healthy Environment 0.07 1 0.07

High Tech Study Methods 0.07 2 0.14

Targeting every segment of population 0.03 2 0.06

Purposely Built Campuses 0.08 3 0.24

Threats

Competition 0.15 4 0.6

High Cost of Education 0.1 3 0.3

Political Instability 0.08 3 0.12

Virtual Education 0.06 2 0.12

Society Divide 0.06 2 0.12

Total 1 2.81

Competitive Profile MatrixCritical Success Factor Weig

htBeaconhouse

LGS City School

Rating

Score Rating

Score

Rating

Score

Education Quality .20 3 0.6 4 0.8 2 0.4

Management .20 4 0.8 4 0.8 3 0.6

Location .15 4 0.6 3 0.45 1 0.15

Price Competitiveness .15 2 0.3 1 0.15 3 0.45

Financial Position .10 3 0.3 4 0.40 3 0.3

Brand Recognition .10 3 0.3 4 0.4 2 0.2

Expansion in Country .05 4 0.2 3 0.15 2 0.10

Local Market Share .05 4 0.2 3 0.15 2 0.1

TOTAL 1 3.30 2.81 2.3

SWOT Matrix

SWOT Matrix

BCG Matrix

IE Matrix

Grand Strategy MatrixCompetitive Strengths

Gro

win

g

0

Shri

nki

ng

Sect

or

Str

ength

QSPM MatrixKEY INTERNAL FACTORS MARKET DEVELOPMENT MARKET PENETRATION

Internal Strengths Weight AS TAS AS TAS

Largest school system in Pakistan 0.15 2 0.3 3 0.45

Financial Position 0.1 3 0.3 3 0.3

Marketing and Advertisment 0.15 3 0.45 4 0.6

Information Systems 0.15 2 0.3 2 0.3

School locations 0.05 3 0.15 4 0.2

Training and development 0.05 4 0.2 3 0.15

Employee Capital 0.05 2 0.1 3 0.15

Internal Weaknesses

Operating Expenses 0.1 1 0.1 2 0.2

Transportation 0.05

50% non purpose built campuses 0.1

Old Teachers unfimiliar with new trends 0.05 1 0.05 2 0.2

1

Key External Factors

Oppertunities

Globalization 0.05 2 0.1 3 0.15

Penetration 0.25 4 1

Decenteralization 0.1 2 0.2 2 0.2

Horizontal and vertical integration 0.15 3 0.45 4 0.6

Threats

Strong Competition 0.2 3 0.6 2 0.4

Low cost substitutes 0.1 3 0.3 2 0.2

New Players 0.05 3 0.15 1 0.05

Government policies 0.1 1 0.1 1 0.1

1

Total Sum of Attractiveness Score 3.85 4.7

RecommendationsMore 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!