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The Management School

Lancaster University

MNGT220

Week 5

Tutorial 3

Strategic Positioning

The Environment

PESTEL Framework The 5 Forces Framework

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PESTEL FrameworkPESTEL Framework

1.1. Undertake an audit of theUndertake an audit of the

tertiary education sectortertiary education sectorenvironment. What are the keyenvironment. What are the key

environmental influences onenvironmental influences on

organisations in that sector?organisations in that sector?

What are the main drivers forWhat are the main drivers forchange?change?

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PESTEL FrameworkPESTEL Framework

PoliticalPolitical::

Government agenda to have aGovernment agenda to have agreater percentage of studentsgreater percentage of students

enter higher education.enter higher education.

Other government agendas (TuitionOther government agendas (Tuitionfees).fees).

Governmental University rankings.Governmental University rankings.

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PESTEL FrameworkPESTEL Framework

EconomicEconomic::

Student fees, student loans, fundingStudent fees, student loans, fundingsources.sources.

Cost of living in UK compared toCost of living in UK compared to

other countries (very high), how theother countries (very high), how thefunds are allotted.funds are allotted.

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PESTEL FrameworkPESTEL Framework

SocialSocial::

Status of higher education inStatus of higher education insociety.society.

Equality of opportunity & access.Equality of opportunity & access.

International students.International students. Influence of university on localInfluence of university on local

councils and region.councils and region.

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PESTEL FrameworkPESTEL Framework

TechnologicalTechnological::

E-learning (distant learning and theE-learning (distant learning and theOpen University).Open University).

Computing skills requirement forComputing skills requirement for

students.students. Plagiarism (databases to checkPlagiarism (databases to check

work),work),

Collaboration of universitiesCollaboration of universities

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PESTEL FrameworkPESTEL Framework

EnvironmentalEnvironmental::

Amount of paper used.Amount of paper used. CO2 emissions.CO2 emissions.

Energy consumption.Energy consumption.

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PESTEL FrameworkPESTEL Framework

LegalLegal::

EU-wide harmonisation of degrees.EU-wide harmonisation of degrees. Ethical considerations (research inEthical considerations (research in

genetics etc.)genetics etc.)

Safety and security (research inSafety and security (research innuclear energy).nuclear energy).

Industry collaborations.Industry collaborations.

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Key Drivers of ChangeKey Drivers of Change

Globalisation of research.Globalisation of research.

Globalisation of education market.Globalisation of education market. Major technological changes (e-Major technological changes (e-

learning) bring about changes inlearning) bring about changes in

teaching & learning methods andteaching & learning methods andeffectiveness of courses.effectiveness of courses.

Political pressure to deliver vs.Political pressure to deliver vs.

free education and free research.free education and free research.

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Key Drivers of ChangeKey Drivers of Change

2. Based on your identification2. Based on your identification

of the main trends in 1 aboveof the main trends in 1 aboveconstruct two scenariosconstruct two scenarios

(logically consistent, possible(logically consistent, possible

futures) as a way of analysingfutures) as a way of analysingthe environmental influences.the environmental influences.

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Key Drivers of ChangeKey Drivers of Change

Scenarios project how the differentScenarios project how the different

key environmental influences andkey environmental influences and

drivers of changedrivers of change mightmightturn out.turn out.

The analysis helps understandingThe analysis helps understanding

the business set in the environmentthe business set in the environment

and how the business modeland how the business model mightmight

cope with change in the drivers ofcope with change in the drivers of

change.change.

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Key Drivers of ChangeKey Drivers of Change

Possible scenariosPossible scenarios::

Information age: trans-national,Information age: trans-national,global research & globalglobal research & global

information & competition,information & competition,

harmonisation of degrees, etc.harmonisation of degrees, etc.

The opposite of scenario 1.The opposite of scenario 1.

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Five ForcesFive Forces

3. Choose an industry that you3. Choose an industry that you

have some knowledge of;have some knowledge of;

identify the strategicidentify the strategic

characteristics, whichcharacteristics, which

distinguish organisations indistinguish organisations in

that industry and construct athat industry and construct astrategic group map(s). Whatstrategic group map(s). What

does the map suggest to you indoes the map suggest to you in

terms of strategicterms of strategic

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Five ForcesFive ForcesThe Management School

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