Strategic and Business Planning - Case Study Example

Name: Tutor: Course: Date: Strategic & Business Planning Executive Summary Strategic business planning involves a concise understanding of the operational and theoretical business activities that take place within various communities. To understand the role played by strategic business planning, companies often reflect to poor business investments that warranted losses. Strategic and business planning enables organizations to connect with the market through an evaluation of the various business instruments. In this case, investors are likely to make informed and conscious decisions that will render the business successful. Failing to design a strategic business plan parallel to the business idea may impair the attainment of desirable objectives since the business will not have aligned its operations. This report seeks to identify a strategic business plan for Academies Australasia in bid to venture into a new and promising market. Table of Contents Introduction Academies Australasia is a leading education provider offering English language, Senior High School, Singapore Government School Preparatory Certificate, Diploma, Advanced Diploma, Bachelor and Master degree courses. The institution offers more than 100 qualifications to more than 5,000 students across campuses in Sydney, Melbourne, Brisbane, Gold Coast, Dubbo and Singapore. Presently, the company is planning for expansion and therefore exploring the viability of opening a branch at Perth. In order to operate a campus that offers vocational education qualification at Perth, the company needs to have the appropriate legal clearance from the relevant education based authority. In order to achieve this, it is important to identify the legal requirements necessary to enter into the needy market. After identifying with the requirements, the company is likely to develop a concise and inclusive business plan that will ensure operations are managed as desired to ensure profits. Discussion Proposed Business Idea Business management as a discipline is taught in a variety of schools. In some cases, it is among the compulsory lessons that each business student is exposed to as it enables understanding and coherence in carrying out community based activities. Academies Australasia in this case has proposed to bring up a senior high school institution in Perth that will offer students from different regions in the location to expand their expertise regarding the management and control of businesses. The motivation to develop a school in the region was drawn from an identification of the existing market gap especially in terms of investment. With an increase in the number of foreigners in Perth, it is likely that the demand for services will increase (Mason & Stark 228). Therefore, Academies Australasia intends on ensuring that it provides one of the best vocational training and education to the community to address the issues affecting them such as poverty and business failure. Product and Services by Academies Australasia Academies Australasia proposes that an increase in the literacy levels of the students will enhance their abilities to ensure success in future growth and development. The institution in Perth is likely to be a combination of boarding and day students owing to a difference in the economic and social nature of the families. However, as a forerunner project, the institution will concentrate on day school students in Business management allowing room for future expansion. Opening a private institution implies proving to the department and ministry of education that the organization is credible and willing to maintain positive behaviour in the specific supply chain (Mason & Stark 229). In this case, Academies Australasia aims at providing a variety of Business Management packages depending on the level of literacy and qualification for all students. Students will be eligible for masters and bachelor degrees. Similarly, catering, administrative, vocational training and learning, support operations and a technical team should be identified. Analysis of the Macro Environment An analysis of the macro environment offers extensive insight on the current operations in terms of education particularly the Business Management field. Arguably, the Perth market experiences a significantly slower rate of growth compared to other economies (Mason & Stark 229). In some cases, impaired economic growth is associated with a reduction in the number of literate people within the community. Therefore, it is likely that the institution based macro environment that offers vocational and formal lessons in the field are failing in their delivery. Entry of Academies Australasia into the Perth business related market proves to be a move in the right direction for the institution in terms of success and return on investment. Marketing Plan Porter’s Five Forces Model Based on an analysis of the investment through the Porter’s Five Force model, the industrial organization economics displays an attractive nature of the investment for Academies Australasia over its global competitors. Under the threat of new entrants, Academies Australasia is likely to experience a competitive nature in terms of the number of institutions that offer Business Management as one of their courses. Profitable operations will attract the possibility of new firms that desire significantly higher returns (Sahlman 99). In terms of threats of substitutes, launching a Business management institution will attract businesses to alternative operations such as professional courses in Business. Based on the bargaining power of the consumers, Academies Australasia needs to provide average costs in their services. The bargaining power of the suppliers may limit the operations of the institutions therefore warranting conformity to the market requirements. Industry rivalry may be evident through the number of global institutions in Perth and the incorporation of technology in education. An Analysis of the Marketing Factors Six factors affect the expansion of Academies Australasia in Perth. They include the demographic factors such as the population structure and need for education. Perth proves to be a promising demographic area for a Business Management institution. The economic conditions also favour investment owing to an increase in demand (Sahlman 101). Employment and inflation has been constant therefore implying possibility of better outcomes. Arguably, a gradual growth of the educational and business market reflects desirable growth and success. Market potential and market share enables Academies Australasia to acquire a competitive advantage over other companies in the market. Business Management institution for the company is also affected by the composition of the consumers such as the education level and occupation of the current citizens. Marketing Strategy (Marketing Mix (4ps) Academies Australasia intends on implementing the 4Ps marketing mix to reach out to the consumers informing them on the business operations. The target market in this case is the parents and youth considering the sensitivity of business education especially to the actualization of personal goals. Therefore, the organization is likely to use product-marketing tools to actualize their sales goals. Considering the propensity of students and parent’s attraction for business, Academies Australasia intends on delivering a variety of disciplines in business management with unique features. Marketing tools based on the price is likely to be achieved through offering discounts, allowances, credit payment methods as well as designated payment period for fees (Sahlman 105). Based on the concept of place, Academies Australasia will ensure that potential students in Perth can geographically locate the institution. Promotion will be achieved through advertising in the local and regional level, personal selling through marketers and social media and public relations through social responsibility. Internal Analysis Although the external environment favours the investment venture, Academies Australasia possesses a variety of internal competencies that enables the company achieve timely and desirable goals. Academies Australasia as an institution has built a solid brand over the numerous years it has been on operation (Mason & Stark 233). Moreover, the organization is able to account for its educational system particularly in Business Management through the variety of people that have graduated and succeeded from its systems. Similarly, adherence to the legal concepts in the education supply chain allows the company to enjoy positive improvement across different sectors. However, among the problems that derail the organization include the constant changes in the education sector created by technology and modernization. For instance, investing in online technology to facilitate electronic learning proves to be quite a challenge. Organisational Structure & Operational Plan The Organisational Structure The Perth Business Management institution will be structured hierarchically depending on the scope and definition of the duties (Mason & Stark 241). In this case, a private school committee will control the institution and form the board of directors. Committee members will be equipped particularly with business skills as others develop diverse disciplinary vocation. Critical staff members will be identified through interviews carried out by the board of directors who will include the headmaster and business manager. The manager will identify a school administrator who will handle the staffing issues, enrolment and purchasing of necessary materials. The manager and administrator will control the human resource management office. Private school teachers need to be interviewed and hired depending on their level of expertise and qualifications. Different Business management faculty members will be allocated departments and offered additional staff members to ensure facilitation of activities. The departments include economics, business law, ethics, finance, marketing, human resource management and economics. Critical departments will include elements of the institution that cannot be ignored such as the support staff and catering. Human resource and administration are also areas of concern considering their scope of duties as assigned during the recruitment period. They will be in charge of handling and manipulating student and employee information based on the activities carried out such as payments and balances in terms of salaries and fees. The finance department will also be considered as a critical department as the manager will be required to offer quarterly reports on the financial aspect of the business (Sahlman 107). Academies Australasia needs to erect important amenities that include classrooms, lecture halls and a theatre that will be used by the students. Similarly, it is important to erect a comprehensive library with the respective amenities to ensure that learners can access diverse materials. Water and sanitation needs to be ascertained therefore the need to develop a construction plan that will incorporate the entire aforementioned facilities. HR Strategies & Plan HRM Policies For the institution to operate effectively, the human resource identifies a set of universal policies that will manage the operations of the institution. They offer guidelines on the graduate, undergraduate and postgraduate policies that correspond to each department. The recruitment, appointment, selection, transfers and deployment of institution staff is based on the principles of merit, equity and transparency. Managers in charge of the recruitment procedure are responsible for enforcement of the policies (Sahlman 101). Based on the Australian education policy, the performance of every department employees is managed in correspondence to the requirements of the direct legislation and desirable outcomes. The salary and compensation structure for educational employees depends on the industrial instruments that will be provided by Academies Australasia. Participation is voluntary and the employee decides the percentage of cash and benefits receivable. Financial Plan Financing, Revenue and Income Statements Finances examine the conditions in which organizations acquire the capital, the use of the capital and the payments as well as the interest that are involved in financial transactions. Financial information is important to the administration, the shareholders, creditors and managers of the institution. In this case, the Business Management institution will be liable for managing and evaluation of the financial instruments (Mason & Stark 239). To procure the necessary funds, Academies Australasia intends on approaching credit institutions such as banks that offer desirable interest rates. Similarly, outsourcing funds from global institutions that have recorded successful operations and profits in the past proves to be a reliable method. In this case, a projected revenue cost needs to be identified. Based on an evaluation of the investment, construction and equipment for education infrastructure will cost approximately $370, 500 a working capital of about $40, 500, salaries, services, and other operational expenses will cost about $312, 852. Purchase of the institution transport will cost about $30, 000. Based on the projected income statement, Academies Australasia will record a cash value of $100, 000 in the first year with an increase of 10% every year. Equipment and marketing will also record an increasing value of about 4% each academic year as more students enrol for the Business Management course. Recommendations The Business Management institution that Academies Australasia desires to venture into in Perth proves to be achievable. However, failing to implement a structural approach might render the business disadvantaged in terms of return on investment. In this case, it is important to identify the market niche in Perth through qualitative and quantitative evaluation on the past, present and future prospects of the Business Management education discipline. Similarly, Academies Australasia needs to ensure that it meets all the legal and operational requirements that the ministry of education in Australia desires if the business plan is to succeed. Conclusion Academies Australasia realizes that education is an important aspect of any society that desires future success. Despite being among the major contributors to the delivery of quality Business management education in different countries, it is important that it understands the implications of expansion. One of the most appropriate methods is to ensure that it defines a business plan that assists in the evaluation of the marketing plan, the organization structure, the financial plans and recommendations for future development. In this case, Academies Australasia will be able to realize smooth operations that translate to profit expansion. Structural approach in the business plan provides a guideline that the organization management can refer to while actualizing their expansion objectives. Works Cited Mason, Colin, and Matthew Stark. "What do investors look for in a business plan? A comparison of the investment criteria of bankers, venture capitalists and business angels." International small business journal 22.3 (2004): 227-248. Sahlman, William Andrews. "How to write a great business plan." Harvard business review 75 (1997): 98-109. Read More