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Internal and External Factor Assessment of University.
ENGINEERING MANAGEMENT
PROJECT
Bilal Masood
Course = Engineering management
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MS ENGINEERING MANAGEMENT
TABLE OF CONTENTS
CONTENTS PAGE NUMBER
CHAPTER -1 INTRODUCTION 3
CHAPTER -2 INTERNAL FACTORS-SW 4
CHAPTER-3 EXTERNAL FACTORS-OT 10
CHAPTER – 4 STRATEGY IN ACTION 17
CONCLUSIONS 19
REFERENCE 19
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CHAPTER -2 INTERNAL FACTORS-
STRENGTH AND WEAKNESSES [SW]
Internal Factor Assessment –IFA
RBV-Resources based view-University University
The resource based view contains three factors 1-physical Resource, 2-Human Resource, 3-
organization resource. The RBV of University University is as follows in table.
Sr. No Physical Resource Human Resource Organization resource
1 University location Staff or teachers training University structure
2 Technology used for
education
Experience and skilled
employees
Planning process to deliver
education
3 Raw material-Suppliers /staff Intelligence level of employees Communication system
4 Research equipment’s and
labs
Knowledge level of employees Information system and structure
5 Building and campus Skill level of employees Legal issues
6 Transport resources-bus etc Abilities of employees Patents of research
7 Tax paid to government
8 Copy rights of organization
9 Data available & documentation
MANAGEMENT FACTOR
The organization like University is deeply dependent on the management function. Any university
strong management function can create a big competitive advantage. The management functions
effecting the University as follows.
1. Planning Factors
For any task done in an educational organization the planning function by management is considered
to be most important. If you fail to plan than you cannot get the required targets. The planning is done
for all departments of the educational institute to get better results. The plan is usually done by using
the forecasting tools. This planning is usually done for the potential student customers.
o Forecasting: forecast the number of students
o Establish objectives: establish the objectives
o Devising strategies: device the strategies to attract
o Developing the policies: Polices are made to implement those strategies. Avoid the
wastes in all tasks.
o Setting the goals: The final the goal is set to get the required results
2. Organizing
The organization structure and employees management. The human recourse factor is very important.
The HR department select the faculty and skilled staff. They design the job task for them and monitor
their results to get the maximum output from their skills.
 Organization structure
 Job specification: These are the skilled required to perform the job. The faculty
must have the skills to perform the specified job and satisfy the students’
knowledge and educational needs
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 Job description: These are the task, duties, function and responsibilities of the
faculty and skilled employees to perform task. The job description must developed
in the effective manner to get the high outputs student customer satisfaction.
 Job specification: These are the list of recommended qualities present in the
faculty for the success delivery of teachings and success in that position
 Control: The controlling of the skilled employees should be there, so they may not
exceed from their required set of instructions and duties. This is done by quality
department and proper student feedback.
 Unity of command: There must be unity of command, in which all the employees
must report their duties, success and failures to the one required manager.
 Coordinating: Proper communication and coordinating system must be
developed with the employees and the manager.
 Job design: It is the setting and organization of the job tasks or complete job of
the faculty according to the specified requirements
 Job analysis: After the job design, job description and job specification is done, it
is important for the organization to analyse that the faculty job results are
according to target and they satisfying the customer students and their guardian.
3. Motivating
For the motivation of the employees and the students to get the required results for the organization
it is important to motivate both skilled staff and customer students. The effective motivation is done
by following factors. The proper motivation theories must be used in this context.
 Leadership command: The leaders must be trained in such a way to motivate the
faculty and customer students.
 Behaviour modification: The skilled behaviours must be introduced and modified
according to requirements and staff must be trained accordingly
 Delegating authority: The authority must be in limited delegating
 Job satisfaction: The faculty must be satisfied from their job and responsibilities
 Organizational change: The need for change thinking must be employed in the
organization
 Employee’s moral managers moral: The moral must be kept high to get the
required results. Which is strongly needed in University University.
4. Staffing:
To keep the skilled employees or faculty within the organization. It is important that the
employees must be given reward and benefits. There must be proper procedure followed
to employee’s management. This is done in University University
 Salary administration: The skilled staff is good paid in University university
 Employees’ benefits: In University University the employees are given benefits
and rewards
 Hiring & Firing: There is proper hiring and firing procedure adopted in University
university for the skilled employees
5. Controlling:
For all the activities and defined policies. It is very important to control the required task
to get the result results. The controlling is done by using the check lists, tables and control
value charts. There is separate quality control department present in the University
University to keep quality of education in university up to the mark. The variance in the
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required values are reduced. To keep the quality up to the mark the reward is awarded to
high skilled and best performing employees.
 Quality control: The quality department of University keep the educational
quality up to the mark.
 Financial control: To keep the organization profit high and control the financial
losses
 Sales control: The sales are controlled by the sales department to achieve the
highest results and to target the potential student customers. This is done by
sales force and proper forecasting.
 Expense control: The unwanted expenses are reduced in the university to get
the financial benefits
 Performance:
o Performance standards are set by University.
o Organization University performance is kept at highest possible levels.
o The current performance is matched with the planned performance and
to get the corrective actions.
 Audit checking list
 Does firm use the strategic management concept=YES
 Are the companies goals are communicated=YES
 Do mangers plan in all levels of organization=YES
 Do managers delegate authority=YES
 Is the employees moral at high level=YES
 Is the job description and specification is done at effective levels=YES
 Is the employees absentee are low=YES
STRENGTH
Complete planning is done for the organization strategy development
Complete job design is established by University for employees
There is separate quality control department for management of quality.
Employee’s moral is kept high through motivating strategy
Availability of skilled employees & Educated and expert faculty
Multiple degree programs
WEAKNESSES
Organization reward system is lacking
Quality is some time ignored
MARKETING FACTOR
1. Customer analysis: for any organization the customer and voice of customer is very
important. The customers are those entity on which the organization sustain in the
market. So to retain the customers and bring them back again to the business, the
customer analysis is done. The educational institutes have students as customers.
o Needs: Quality education
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o Desires: flexible and economic education
o Wants: qualified faculty
o Customer profile
o Demographic characteristics: The Demographic characters and culture is very
important for their product selection and return back to by the product. The university
customer students are both national and international.
o Organizational customers: The university customers are students. There is a
category of the students as follows.
 Normal regular students
 Employed students
 Business man students
 Faculty students from university
 Overseas students
 Exchange students from other institutes
 Credit transfer students from other institutes
o Sales person: There sales people of the organization, who are internal customers of
organization as employees and target the external customer students to enhance the
business of educational institute.
o Suppliers: : There are many skilled persons providing organizations, who provide
registered skilled faculty and employees to the educational organization
2. Selling product and services-
o Marketing: The marketing strategy is very important for the success of the
business. If the proper marketing of the university education is not done than
business is useless.
o Strategy of marketing:
Advertising: this can be done as follows
1. News papers
2. TV
3. Social media
4. Flayers
5. Billboards
Sales promotion: giving discounts in admission fee for new students.
Offering extra courses for free.
Publicity: This can be done using the billboards of university in different places
in cities
Sales Force: For the success of any business the sales force is very important. The
highly professional personals use the technique of forecasting, making new
customers and retain old customers. So for bringing new students, sales force
plays very important role.
Customer retention: For bringing more new customers students. The customer
retention is important, so old customer students will bring more new customers
students. By telling their success stories.
3. Product & services planning: When the educational course and planning is
done, these courses are test with the faculty and student interaction.
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Moreover the potential student customer models are tested during the
admission and in the market.
4. Marketing Research: For the success of any business the marketing research
is an important factor. Following are the important steps of marketing
research.
o Systemic gathering of data: This is done by survey and other
methods of gather the potential student data
o Recording of data: After getting the data it is recorded.
o Analysis of data: Then the data analysis is done, how to use that
data and increase the number of students. Develop the resultant
strategy.
5. Pricing: The best task for any business is to provide the highest quality services at
lowest possible student customer desire. The price may affect the consumers,
government, suppliers and competitors. To outclass the competitors from the
market. It is important to provide the educational services better than
competitors. University is up to that policy.
o Keep price low
o Provide high quality
o Competitor bench marking
o Provide no credits-student loans can affect the finance of
organization in long run
o Try to avoid condition sales to student customers
o Provide the discounts and limited scholarships.
o Audit checking list
o Target to one market segment efficiently =YES
o Is the organization is positioned good among the
competitors=YES
o Is the firm market share increasing by time=YES
o Does the firm conduct market research=YES
o Are the product quality and service according to student
customer requirement=YES
o Is the promotion and advertising strategically =YES
o Is the budget of marketing is done effectively. =YES
STRENGTH
Most the customer students are satisfied with education system
There is separate sales team.
WEAKNESSES
Symbolic actions are taken on the complaint reporting.
Complex admission process
Poor marketing some time
Gaps in operation levels
FINANCE FACTOR
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o Financial ratios and discussion
 The leverage value: The lavage value of University University is low. The
organization is mainly dependent on the student’s free deposit. So the debt of the
University organization is low. If the leverage value of University university is kept
high. It would be risky for the business and to sustain in the market.
 Assets: The assets of the University University is increasing as the university is
opening new campuses. The current assets are increasing.
 Asset turnover ratio: The asset turnover ratio is the efficiency of the company to
generate revenue and sales by using assets. ATOR is increasing as expanding
business and higher number of students are taking admission. Low asset turnover
ratio shows are due to, the poor collection methods and poor utilization of assets.
 The liquidity ratio is the company ability to pay its short-term debts obligations.
This determines the company can use its assets.
Liquidity Ratio=1 University can exactly pay its liabilities from its current assets
 Current ratio: These are assets most readily available to pay its short-
term obligations. It is high as the students customers are more paying fee
and increase in the free.
 Quick ratio: These are assets most readily available to pay its short-term
obligations that are readily to convertible to cash. Which is high in case of
University University.
 Profitability and sales: As the University University is introducing more campuses
and increasing number of students regard to sales. The direct increasing relation
between the sales and profitability.
 Operating profit: The operating profit of the company is high as higher number of
customers are doing business with University University.
 Growth ratios:The sales and net income of University university is increasing as
the number of campuses are customer students are increasing.
o Audit checking list
 Do the ratio analysis =YES
 Can organization raise long term capital=YES
 Does the capital budget effective=YES
 Does company has good relations with stakeholders =YES
 Are the financial managers trained efficient=YES
 Is debt is low=YES
STRENGTH
There is separate sales team and profitability is increasing
The leverage value is low
WEAKNESSES
Increase in free annually
Internal factor evaluation matrix
Sr Key Internal factors Weight Rating Weighted
score
Strengths
1 Organizational Structure and planning is clear 10 4 40
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2 There is separate quality control department for management of
quality.
10 4 40
3 Multiple degree programs available 10 4 40
4 Most the customer students are satisfied with education system 10 4 40
5 There is separate sales team and profitability is increasing 10 5 50
Weakness
6 Increase in free annually 10 3 30
7 Organization reward system is lacking 10 3 30
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Quality is some time ignored
10 5 50
9 Complex admission process 10 4 40
10 Symbolic actions are taken on the complaint reporting. 10 5 50
Total 1 4.10
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CHAPTER-3 EXTERNAL FACTORS
OPPORTUNITIES AND THREATES [OT]
External Factor Assessment-EFA
External Factor available for assessment
The list of available external factors are as follows.
o Economic forces
o Social
o Culture
o Demographic
o Political
o Government
o Legal
o Technological
o Competitive forces
Environment scanning and forecasting
The current University external environment is complex and there are many factors effecting this
organization. With the environment scanning the following factors are much effecting the
organization.
In the external environmental analysis and scanning, there are three factors that should be
analysed
 Immediate organization environment scanning factor
 National level environment scanning factor
 broader socio-economic or macro-environment scanning factor
(1) Immediate organization environment scanning factor
Culture = in the internal factors the external cultural factors also have the culture effect on the
organization.
Demographic=
 Age= mainly the low to middle age students study in University university, some are
employed and business man, So the target population age is between 20-35 years.
 Race= All race people are allowed to study in University. Without ethnic divisions.
 Gender= The University university is based on gender equality.
Competitive forces= the competitors respond to the current atmosphere.
Company strategy = provide best education at low price
Counter track competitors strategy=To benchmark and to check competitors position in the market.
Other firms= Keep an eyes on the firm entering and leaving
Present position of competitors= The UOL, UMT and COMSATS present position and strategy.
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Substitute product introduction= Always keep an eye on substitute product to outclass competitors.
Competitor analysis= It is important for University university ton perform the competitor analysis to
keep upper hand in the competitive environment. Planning, collect data, analyse and facilitate.
Objectives
Understanding=this provides the general understanding of the industry
Vulnerability of competitors= always keep an eye on the vulnerability of the competitors to keep the
competitive advantage.
Improvement= University is studying the competitors to improve its firm condition.
PORTER 5 FORCE MODEL –Competitive forces
The porter five force model contains following five points
1. Bargaining-Power of suppliers
2. Bargaining-Power of buyers
3. Competitive rivalry
4. Threat of substitution
5. Threat to new entrants
[1] Power of suppliers PORTER 5 FORCE MODEL
The suppliers are those entity, who provides the information, material and knowledge to customers
and in return the organization provides the goods or services. The University University has following
suppliers in form of skilled employees.
 Faculty
 Administration staff
 Staff workers
 Visiting faculty
 Lecturers
 Researchers
The supplier increasing power is to keep discipline and deceasing power is to hire new suppliers. When
the limited faculty potential is available in market and there is increased number of students the
bargaining power of supplier is increased.
[2] Power of buyers PORTER 5 FORCE MODEL
In the educational institutes the customers are students or their guardians. Actually they purchase the
facility of education from the admitted institute. The bargaining power of customer increases as the
services and facilities offered are in wide context to attract the large numbers of potential students
present in the market. The basic attraction is to provide quality education and lower the cost of
education or institute fee. There are also other factors to be considered by the buyers like reputation,
advertisement and its brand image in the market. Increasing number of students has increased the
bargaining power of customer. The competitive advantage by the University University is
differentiation in education and brand identity in market. The buying power increases as the degree
of backward integration by buyer increases
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 Cost
 Reputation
 Quality
 Advertisements
 Brand image
 Differentiation
 Technology
[3] Competitive rivalry PORTER 5 FORCE MODEL
As the importance of education and technology is increasing in the global market. The competitive
rivalry can be increased by introduction of new services by University and its competitors.
 Decreasing cost of education or fee
 New course contents and new products
 Standard course content
 Flexibility and ease
 Quality certification like ISO
 Advertising and market strategy
 Service improvement
 Increasing the quality
 Increasing the transparency
 Students targets
 Faculty quality, attitude and education
 University own funding
 Government funding and grants
 Scholarship provided
 Accreditation of programs
 Research funding
 Research standard levels
 Expansion and innovation
 Differentiation to keep institute in market
 Number of competitors: Increased Number of quality institutes in the market can outclass the
University University.
 Financial targets: As the higher number of the institutes increases in the market, the
University sometime has to reduce the free so this can affect financial targets of the university.
Open market factors and variables effecting University
 Economics
 Cultural
 Technology present
 Future technology
 Social
 Governmental
 Legal issues
 Political
[4] Threat of substitution PORTER 5 FORCE MODEL
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The substitutes have the quality to provide the similar services or product with equal or lower price.
As in the global and local market the competition and importance of education is increasing. The
institutes are introducing new services, quality and new educational products in the market to outclass
their competitors like UOL, COMSATS, UET and LSE etc. The few substitutes are as follows
 Distance education
 Online education
 Training sessions
 Seminars
 Workshops
 Open universities
 Private academies
 Time table or schedule
The threat to the substitute is quantified by three factors
 Time: It is most important factor as students seek to save their time with spent cost
 Convenience: This factor determine how easy to seek education with flexibility. This factor
has a strong hold for the employed and business owner students. So the time table and
schedule presented by department is an important factor for potential students. The weekend
classes are preferred by employed or business owner students.
 Application: Is all the technologies are applicable
So to keep University in market the university must also consider and present it for the substitute
technologies, methods and services to outclass the competitors
[5] Threat to new entrants PORTER 5 FORCE MODEL
The threat to new entrant is always there in the market. But this threat is derived by the resistance
present in the market. The new entrant creates the competition among the universities and existing
universities have to reduce fee and increase the quality of education and services. In the market the
increased number of private institutes has created a strong competition among the universities.
Following factors are there to be considered for threat to new entrant and effect on University
University.
 Economic of scale
To enter in market and to outclass the competitors already present in the market. The new entrant
has to reduce cost and provide better education and educational service. Mainly the new entrants try
to increasing their initial efficiency. This is creating a big issue for University University. If the University
provides EOS then this threat would be reduced.
 Capital requirements
The threat to new entrant for University deeply dependent on how much capital investment does new
entrants have and investing for its projects. The huge capital investment by new entrant can bring
greater threat for the existing universities and University
 Market competitors
The new entrant has a big challenge in the competitive market, So to attract new potential students.
They provide economic services with good quality.
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 Technology presented by new entrant
Bringing new technology and economic innovation in education sector by new entrant can create a
big challenge to University University to keep itself in the market.
 Competitor’s reaction
As the new entrant come in the market. The competitors provide the challenge to them with negative
reaction to confuse and discourage them. University University must also consider this factor.
 Customer resistance
The buyers has power and resistance to shift to new service or product provider. So the new market
entrant faces two types of customer resistance. This creates a good opportunity for University
University to attract the potential students by providing them quality product.
i. Failure to accept new product:
ii. Unwilling to accept extra or new cost:
 Efficiency
As the number of the educational providers are increasing the competitors have to increase their
efficiency. The University is focusing on innovation, economics, quality and differentiation. It must
emphasize in all these sectors to outclass the new entrants and existing competitors.
 University Campuses
Increasing the number of campuses by university can increase business, reduce cost, increase
popularity and attract the potential students. Thus the University University is working on this point.
This also creates the threat for the new entrant.
 Location
If the new entrant is located in expensive/rich and populated area, this can increase it potential to
grab the new students. So it is important for University University to locate its new campuses in the
populated areas.
OPPORTUNITY
Partnerships with other universities
The new construction opportunity is available for new departments.
Making of new parks, Pool Construction and Gym
THREATS
Unpopular among the universities
An increase in the fee due to inflation can give an advantage to competitors
Private, Low-cost universities & Private, On-Line universities
Competitor universities in the nearby areas and strong competitors.
Bargaining Power of buyer is higher
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(2) National level environment scanning factor
Economic forces= the economic forces that are effecting the University university at national level
are
Inflation, Funds available for University, National bank interest rates and capital investment done by
University University.
(3) broader socio-economic or macro-environment scanning factor
Social, Government and Legal issues=these are the issues related to law, regulations and taxes
Political= the political instability had deep impact on the business of University University business.
Government threats
State budget and economic crises
Reduced state funding
Technological= the innovation and revolution technology can change the way the organization
operates. The highly advance technology can affect the University university way of doing business.
The new innovative technology can affect the competitors, market, suppliers, customers, services and
potential customer sales.
Use of wireless and online technology:
 online student free payment and banking,
 online degrees and distance education
THREATS
Substitute technologies taking advantage
Lack of industrial liaison and technology
OPPORTUNITY
There is an opportunity for introduction of online degree system.
Online student accounts and plate forums
External factor evaluation matrix
Sr Key external factors Weight Rating Weighted
score
Opportunities
1 Partnerships with other universities 10 2 20
2 The new construction opportunity is available for new
departments.
10 2 20
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3 Making of new parks, Pool Construction and Gym 10 2 20
4 Substitute technologies taking advantage 10 4 40
5 Lack of industrial liaison and technology 10 5 50
Threats
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7 An increase in the fee due to inflation can give an advantage to
competitors
10 3 30
8 Private, Low-cost universities & Private, On-Line universities 10 5 50
9 Competitor universities in the nearby areas and strong
competitors.
15 4 60
10 Bargaining Power of buyer is higher 15 5 60
Total 1 3.50
ALL SELECTED SWOT FACTORS AVALIABLE
Strengths Weaknesses
Internal
Factors
 Organizational Structure and
planning is clear
 There is separate quality control
department for management of
quality.
 Multiple degree programs
available
 Most the customer students are
satisfied with education system
 There is separate sales team and
profitability is increasing
 Organization reward system is
lacking
 Quality is some time ignored
 Complex admission process
 Increase in free annually
 Symbolic actions are taken on
the complaint reporting.
Opportunities Threats
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External
Factors
 Partnerships with other
universities
 The new construction
opportunity is available for new
departments.
 Making of new parks, Pool
Construction and Gym
 Substitute technologies taking
advantage
 There is an opportunity for
introduction of online degree
system.
 An increase in the fee due to
inflation can give an advantage
to competitors
 Private, Low-cost universities
& Private, On-Line universities
 Competitor universities in the
nearby areas and strong
competitors.
 Bargaining Power of buyer is
higher
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CHAPTER-4
STRATEGY IN ACTION
MATCHING STRATEGY-TOWS
Matching the factors
Strengths Weaknesses
TOWS Matrix
S1=Organizational Structure and
planning is clear
S2=There is separate quality control
department for management of
quality.
S3=Multiple degree programs
available
S4=Most the customer students are
satisfied with education system
S5=There is separate sales team and
profitability is increasing
W1=Organization reward system is
lacking
W2=Quality is some time ignored
W3=Complex admission process
W4=Increase in free annually
W5=Symbolic actions are taken on the
complaint reporting.
Opportunities SO Strategy WO Strategy
O1=Partnerships with other
universities
O2=The new construction
opportunity is available for new
departments.
O3=Making of new parks, Pool
Construction and Gym
O4Substitute technologies
taking advantage
O5=There is an opportunity
for introduction of online
degree system.
The university has potential to
expanding in education and
technology platform with high
quality--,S3,S4,S5-O2,O3,O4.New
construction should be done with
higher technology integration..
 Horizontal integration
Increase in free annually due to budget and
economic crises. The fee should not be low
enough and may not put financial Burdon
on organization. So by increase in fee can
allow organization for expansion and new
construction of departments, gym, parks
and pools etc.
o3 ,w3
 Retrenchment and turnaround
Threats
ST Strategy WT Strategy
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T1=An increase in the fee due
to inflation can give an
advantage to competitors
T2=Private, Low-cost
universities & Private, On-Line
universities
T3=Competitor universities in
the nearby areas and strong
competitors.
T4=Bargaining Power of buyer
is higher
Multiple degree programs in Private,
Low-cost universities & Private, On-
Line universities Competitor, this will
increase the Bargaining Power of
buyer is higher. The online education
system should also be introduced.
S5,T2,T3,T4
 Related Diversification
The ignored quality will give the
advantage to Competitor universities in
the nearby areas and strong competitors.
W2, T3. The target should be to increase
quality.
 Retrenchment=product
Resultant Strategies for External and Internal Factors
Strategy in Action
Sr. no Internal
Factors-SW
External
Factors-OT
Resultant strategy in action Strategy
1 S3,S4,S5 O2,O3,O4 The university has potential to expanding
in education and technology platform
with high quality--
,S3,S4,S5,O2,O3,O4.New construction
should be done with higher technology
integration..
Horizontal integration
2 w3 o3 Increase in free annually due to budget and
economic crises. The fee should not be low
enough and may not put financial Burdon
on organization. So by increase in fee can
allow organization for expansion and new
construction of departments, gym, parks
and pools etc.
Retrenchment and
turnaround
3 S5 T2,T3,T4 Multiple degree programs in Private,
Low-cost universities & Private, On-Line
universities Competitor, this will increase
the Bargaining Power of buyer is higher.
The online education system should also
be introduced. S5,T2,T3,T4
Related Diversification
4 W2 T3 The ignored quality will give the
advantage to Competitor universities in
the nearby areas and strong competitors.
W2, T3. The target should be to increase
quality.
Retrenchment=product
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CONCLUSIONS
SO STRATEGY IN ACTION-1=
The university has potential to expanding in education and technology platform with high quality--
,S3,S4,S5,O2,O3,O4. New construction should be done with higher technology integration. This is the
horizontal integration, in which the company has control over market penetration and has ability to
remove its competitors in the way by adding more techniques and finance in business.
WO STRATEGY IN ACTION-2=
As the economic crises is taking place in third world countries and around the world. Increase in free
annually due to budget and economic crises is increased. o3 ,w3. The fee should not be low enough and
may not put financial Burdon on organization. So by increase in fee can allow organization for
expansion and new construction of departments, gym, parks and pools etc. This is the strategy of
Retrenchment and turnaround. The product is near to finish and we need to increase the cost of
product to remain our product, alive and have good earning business.
ST STRATEGY IN ACTION-3=
Multiple degree programs in Private, Low-cost universities & Private, On-Line universities Competitor,
this will increase the Bargaining Power of buyer is higher. The online education system should also be
introduced. S5,T2,T3,T4- The multiple degree program with flexibility will increase in online education
demand. This also increases the bargaining power of supplier as many universities in this business with
low cost. Related Diversification strategy is used to expand business without changing business track.
WT STRATEGY IN ACTION-3=
The ignored quality will give the advantage to Competitor universities in the nearby areas and strong
competitors. W2, T3. The target should be to increase quality. The resultant strategy used is
Retrenchment. In the retrenchment technology the quality product is near to finish and we have to
add some extra activities in it to make it alive again.
REFERENCE
[1] Fred R David, Strategic management concept and cases, 13ed
[2] Felicia Juliani Leliga, Janet Devina Koapaha, Anastasia Cherry Sulu. East African Scholars Journal
of Economics, Business and Management

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Template-internal & external factor assessment

  • 1. 1 Internal and External Factor Assessment of University. ENGINEERING MANAGEMENT PROJECT Bilal Masood Course = Engineering management
  • 2. 2 MS ENGINEERING MANAGEMENT TABLE OF CONTENTS CONTENTS PAGE NUMBER CHAPTER -1 INTRODUCTION 3 CHAPTER -2 INTERNAL FACTORS-SW 4 CHAPTER-3 EXTERNAL FACTORS-OT 10 CHAPTER – 4 STRATEGY IN ACTION 17 CONCLUSIONS 19 REFERENCE 19
  • 3. 3 CHAPTER -2 INTERNAL FACTORS- STRENGTH AND WEAKNESSES [SW] Internal Factor Assessment –IFA RBV-Resources based view-University University The resource based view contains three factors 1-physical Resource, 2-Human Resource, 3- organization resource. The RBV of University University is as follows in table. Sr. No Physical Resource Human Resource Organization resource 1 University location Staff or teachers training University structure 2 Technology used for education Experience and skilled employees Planning process to deliver education 3 Raw material-Suppliers /staff Intelligence level of employees Communication system 4 Research equipment’s and labs Knowledge level of employees Information system and structure 5 Building and campus Skill level of employees Legal issues 6 Transport resources-bus etc Abilities of employees Patents of research 7 Tax paid to government 8 Copy rights of organization 9 Data available & documentation MANAGEMENT FACTOR The organization like University is deeply dependent on the management function. Any university strong management function can create a big competitive advantage. The management functions effecting the University as follows. 1. Planning Factors For any task done in an educational organization the planning function by management is considered to be most important. If you fail to plan than you cannot get the required targets. The planning is done for all departments of the educational institute to get better results. The plan is usually done by using the forecasting tools. This planning is usually done for the potential student customers. o Forecasting: forecast the number of students o Establish objectives: establish the objectives o Devising strategies: device the strategies to attract o Developing the policies: Polices are made to implement those strategies. Avoid the wastes in all tasks. o Setting the goals: The final the goal is set to get the required results 2. Organizing The organization structure and employees management. The human recourse factor is very important. The HR department select the faculty and skilled staff. They design the job task for them and monitor their results to get the maximum output from their skills.  Organization structure  Job specification: These are the skilled required to perform the job. The faculty must have the skills to perform the specified job and satisfy the students’ knowledge and educational needs
  • 4. 4  Job description: These are the task, duties, function and responsibilities of the faculty and skilled employees to perform task. The job description must developed in the effective manner to get the high outputs student customer satisfaction.  Job specification: These are the list of recommended qualities present in the faculty for the success delivery of teachings and success in that position  Control: The controlling of the skilled employees should be there, so they may not exceed from their required set of instructions and duties. This is done by quality department and proper student feedback.  Unity of command: There must be unity of command, in which all the employees must report their duties, success and failures to the one required manager.  Coordinating: Proper communication and coordinating system must be developed with the employees and the manager.  Job design: It is the setting and organization of the job tasks or complete job of the faculty according to the specified requirements  Job analysis: After the job design, job description and job specification is done, it is important for the organization to analyse that the faculty job results are according to target and they satisfying the customer students and their guardian. 3. Motivating For the motivation of the employees and the students to get the required results for the organization it is important to motivate both skilled staff and customer students. The effective motivation is done by following factors. The proper motivation theories must be used in this context.  Leadership command: The leaders must be trained in such a way to motivate the faculty and customer students.  Behaviour modification: The skilled behaviours must be introduced and modified according to requirements and staff must be trained accordingly  Delegating authority: The authority must be in limited delegating  Job satisfaction: The faculty must be satisfied from their job and responsibilities  Organizational change: The need for change thinking must be employed in the organization  Employee’s moral managers moral: The moral must be kept high to get the required results. Which is strongly needed in University University. 4. Staffing: To keep the skilled employees or faculty within the organization. It is important that the employees must be given reward and benefits. There must be proper procedure followed to employee’s management. This is done in University University  Salary administration: The skilled staff is good paid in University university  Employees’ benefits: In University University the employees are given benefits and rewards  Hiring & Firing: There is proper hiring and firing procedure adopted in University university for the skilled employees 5. Controlling: For all the activities and defined policies. It is very important to control the required task to get the result results. The controlling is done by using the check lists, tables and control value charts. There is separate quality control department present in the University University to keep quality of education in university up to the mark. The variance in the
  • 5. 5 required values are reduced. To keep the quality up to the mark the reward is awarded to high skilled and best performing employees.  Quality control: The quality department of University keep the educational quality up to the mark.  Financial control: To keep the organization profit high and control the financial losses  Sales control: The sales are controlled by the sales department to achieve the highest results and to target the potential student customers. This is done by sales force and proper forecasting.  Expense control: The unwanted expenses are reduced in the university to get the financial benefits  Performance: o Performance standards are set by University. o Organization University performance is kept at highest possible levels. o The current performance is matched with the planned performance and to get the corrective actions.  Audit checking list  Does firm use the strategic management concept=YES  Are the companies goals are communicated=YES  Do mangers plan in all levels of organization=YES  Do managers delegate authority=YES  Is the employees moral at high level=YES  Is the job description and specification is done at effective levels=YES  Is the employees absentee are low=YES STRENGTH Complete planning is done for the organization strategy development Complete job design is established by University for employees There is separate quality control department for management of quality. Employee’s moral is kept high through motivating strategy Availability of skilled employees & Educated and expert faculty Multiple degree programs WEAKNESSES Organization reward system is lacking Quality is some time ignored MARKETING FACTOR 1. Customer analysis: for any organization the customer and voice of customer is very important. The customers are those entity on which the organization sustain in the market. So to retain the customers and bring them back again to the business, the customer analysis is done. The educational institutes have students as customers. o Needs: Quality education
  • 6. 6 o Desires: flexible and economic education o Wants: qualified faculty o Customer profile o Demographic characteristics: The Demographic characters and culture is very important for their product selection and return back to by the product. The university customer students are both national and international. o Organizational customers: The university customers are students. There is a category of the students as follows.  Normal regular students  Employed students  Business man students  Faculty students from university  Overseas students  Exchange students from other institutes  Credit transfer students from other institutes o Sales person: There sales people of the organization, who are internal customers of organization as employees and target the external customer students to enhance the business of educational institute. o Suppliers: : There are many skilled persons providing organizations, who provide registered skilled faculty and employees to the educational organization 2. Selling product and services- o Marketing: The marketing strategy is very important for the success of the business. If the proper marketing of the university education is not done than business is useless. o Strategy of marketing: Advertising: this can be done as follows 1. News papers 2. TV 3. Social media 4. Flayers 5. Billboards Sales promotion: giving discounts in admission fee for new students. Offering extra courses for free. Publicity: This can be done using the billboards of university in different places in cities Sales Force: For the success of any business the sales force is very important. The highly professional personals use the technique of forecasting, making new customers and retain old customers. So for bringing new students, sales force plays very important role. Customer retention: For bringing more new customers students. The customer retention is important, so old customer students will bring more new customers students. By telling their success stories. 3. Product & services planning: When the educational course and planning is done, these courses are test with the faculty and student interaction.
  • 7. 7 Moreover the potential student customer models are tested during the admission and in the market. 4. Marketing Research: For the success of any business the marketing research is an important factor. Following are the important steps of marketing research. o Systemic gathering of data: This is done by survey and other methods of gather the potential student data o Recording of data: After getting the data it is recorded. o Analysis of data: Then the data analysis is done, how to use that data and increase the number of students. Develop the resultant strategy. 5. Pricing: The best task for any business is to provide the highest quality services at lowest possible student customer desire. The price may affect the consumers, government, suppliers and competitors. To outclass the competitors from the market. It is important to provide the educational services better than competitors. University is up to that policy. o Keep price low o Provide high quality o Competitor bench marking o Provide no credits-student loans can affect the finance of organization in long run o Try to avoid condition sales to student customers o Provide the discounts and limited scholarships. o Audit checking list o Target to one market segment efficiently =YES o Is the organization is positioned good among the competitors=YES o Is the firm market share increasing by time=YES o Does the firm conduct market research=YES o Are the product quality and service according to student customer requirement=YES o Is the promotion and advertising strategically =YES o Is the budget of marketing is done effectively. =YES STRENGTH Most the customer students are satisfied with education system There is separate sales team. WEAKNESSES Symbolic actions are taken on the complaint reporting. Complex admission process Poor marketing some time Gaps in operation levels FINANCE FACTOR
  • 8. 8 o Financial ratios and discussion  The leverage value: The lavage value of University University is low. The organization is mainly dependent on the student’s free deposit. So the debt of the University organization is low. If the leverage value of University university is kept high. It would be risky for the business and to sustain in the market.  Assets: The assets of the University University is increasing as the university is opening new campuses. The current assets are increasing.  Asset turnover ratio: The asset turnover ratio is the efficiency of the company to generate revenue and sales by using assets. ATOR is increasing as expanding business and higher number of students are taking admission. Low asset turnover ratio shows are due to, the poor collection methods and poor utilization of assets.  The liquidity ratio is the company ability to pay its short-term debts obligations. This determines the company can use its assets. Liquidity Ratio=1 University can exactly pay its liabilities from its current assets  Current ratio: These are assets most readily available to pay its short- term obligations. It is high as the students customers are more paying fee and increase in the free.  Quick ratio: These are assets most readily available to pay its short-term obligations that are readily to convertible to cash. Which is high in case of University University.  Profitability and sales: As the University University is introducing more campuses and increasing number of students regard to sales. The direct increasing relation between the sales and profitability.  Operating profit: The operating profit of the company is high as higher number of customers are doing business with University University.  Growth ratios:The sales and net income of University university is increasing as the number of campuses are customer students are increasing. o Audit checking list  Do the ratio analysis =YES  Can organization raise long term capital=YES  Does the capital budget effective=YES  Does company has good relations with stakeholders =YES  Are the financial managers trained efficient=YES  Is debt is low=YES STRENGTH There is separate sales team and profitability is increasing The leverage value is low WEAKNESSES Increase in free annually Internal factor evaluation matrix Sr Key Internal factors Weight Rating Weighted score Strengths 1 Organizational Structure and planning is clear 10 4 40
  • 9. 9 2 There is separate quality control department for management of quality. 10 4 40 3 Multiple degree programs available 10 4 40 4 Most the customer students are satisfied with education system 10 4 40 5 There is separate sales team and profitability is increasing 10 5 50 Weakness 6 Increase in free annually 10 3 30 7 Organization reward system is lacking 10 3 30 8 Quality is some time ignored 10 5 50 9 Complex admission process 10 4 40 10 Symbolic actions are taken on the complaint reporting. 10 5 50 Total 1 4.10
  • 10. 10 CHAPTER-3 EXTERNAL FACTORS OPPORTUNITIES AND THREATES [OT] External Factor Assessment-EFA External Factor available for assessment The list of available external factors are as follows. o Economic forces o Social o Culture o Demographic o Political o Government o Legal o Technological o Competitive forces Environment scanning and forecasting The current University external environment is complex and there are many factors effecting this organization. With the environment scanning the following factors are much effecting the organization. In the external environmental analysis and scanning, there are three factors that should be analysed  Immediate organization environment scanning factor  National level environment scanning factor  broader socio-economic or macro-environment scanning factor (1) Immediate organization environment scanning factor Culture = in the internal factors the external cultural factors also have the culture effect on the organization. Demographic=  Age= mainly the low to middle age students study in University university, some are employed and business man, So the target population age is between 20-35 years.  Race= All race people are allowed to study in University. Without ethnic divisions.  Gender= The University university is based on gender equality. Competitive forces= the competitors respond to the current atmosphere. Company strategy = provide best education at low price Counter track competitors strategy=To benchmark and to check competitors position in the market. Other firms= Keep an eyes on the firm entering and leaving Present position of competitors= The UOL, UMT and COMSATS present position and strategy.
  • 11. 11 Substitute product introduction= Always keep an eye on substitute product to outclass competitors. Competitor analysis= It is important for University university ton perform the competitor analysis to keep upper hand in the competitive environment. Planning, collect data, analyse and facilitate. Objectives Understanding=this provides the general understanding of the industry Vulnerability of competitors= always keep an eye on the vulnerability of the competitors to keep the competitive advantage. Improvement= University is studying the competitors to improve its firm condition. PORTER 5 FORCE MODEL –Competitive forces The porter five force model contains following five points 1. Bargaining-Power of suppliers 2. Bargaining-Power of buyers 3. Competitive rivalry 4. Threat of substitution 5. Threat to new entrants [1] Power of suppliers PORTER 5 FORCE MODEL The suppliers are those entity, who provides the information, material and knowledge to customers and in return the organization provides the goods or services. The University University has following suppliers in form of skilled employees.  Faculty  Administration staff  Staff workers  Visiting faculty  Lecturers  Researchers The supplier increasing power is to keep discipline and deceasing power is to hire new suppliers. When the limited faculty potential is available in market and there is increased number of students the bargaining power of supplier is increased. [2] Power of buyers PORTER 5 FORCE MODEL In the educational institutes the customers are students or their guardians. Actually they purchase the facility of education from the admitted institute. The bargaining power of customer increases as the services and facilities offered are in wide context to attract the large numbers of potential students present in the market. The basic attraction is to provide quality education and lower the cost of education or institute fee. There are also other factors to be considered by the buyers like reputation, advertisement and its brand image in the market. Increasing number of students has increased the bargaining power of customer. The competitive advantage by the University University is differentiation in education and brand identity in market. The buying power increases as the degree of backward integration by buyer increases
  • 12. 12  Cost  Reputation  Quality  Advertisements  Brand image  Differentiation  Technology [3] Competitive rivalry PORTER 5 FORCE MODEL As the importance of education and technology is increasing in the global market. The competitive rivalry can be increased by introduction of new services by University and its competitors.  Decreasing cost of education or fee  New course contents and new products  Standard course content  Flexibility and ease  Quality certification like ISO  Advertising and market strategy  Service improvement  Increasing the quality  Increasing the transparency  Students targets  Faculty quality, attitude and education  University own funding  Government funding and grants  Scholarship provided  Accreditation of programs  Research funding  Research standard levels  Expansion and innovation  Differentiation to keep institute in market  Number of competitors: Increased Number of quality institutes in the market can outclass the University University.  Financial targets: As the higher number of the institutes increases in the market, the University sometime has to reduce the free so this can affect financial targets of the university. Open market factors and variables effecting University  Economics  Cultural  Technology present  Future technology  Social  Governmental  Legal issues  Political [4] Threat of substitution PORTER 5 FORCE MODEL
  • 13. 13 The substitutes have the quality to provide the similar services or product with equal or lower price. As in the global and local market the competition and importance of education is increasing. The institutes are introducing new services, quality and new educational products in the market to outclass their competitors like UOL, COMSATS, UET and LSE etc. The few substitutes are as follows  Distance education  Online education  Training sessions  Seminars  Workshops  Open universities  Private academies  Time table or schedule The threat to the substitute is quantified by three factors  Time: It is most important factor as students seek to save their time with spent cost  Convenience: This factor determine how easy to seek education with flexibility. This factor has a strong hold for the employed and business owner students. So the time table and schedule presented by department is an important factor for potential students. The weekend classes are preferred by employed or business owner students.  Application: Is all the technologies are applicable So to keep University in market the university must also consider and present it for the substitute technologies, methods and services to outclass the competitors [5] Threat to new entrants PORTER 5 FORCE MODEL The threat to new entrant is always there in the market. But this threat is derived by the resistance present in the market. The new entrant creates the competition among the universities and existing universities have to reduce fee and increase the quality of education and services. In the market the increased number of private institutes has created a strong competition among the universities. Following factors are there to be considered for threat to new entrant and effect on University University.  Economic of scale To enter in market and to outclass the competitors already present in the market. The new entrant has to reduce cost and provide better education and educational service. Mainly the new entrants try to increasing their initial efficiency. This is creating a big issue for University University. If the University provides EOS then this threat would be reduced.  Capital requirements The threat to new entrant for University deeply dependent on how much capital investment does new entrants have and investing for its projects. The huge capital investment by new entrant can bring greater threat for the existing universities and University  Market competitors The new entrant has a big challenge in the competitive market, So to attract new potential students. They provide economic services with good quality.
  • 14. 14  Technology presented by new entrant Bringing new technology and economic innovation in education sector by new entrant can create a big challenge to University University to keep itself in the market.  Competitor’s reaction As the new entrant come in the market. The competitors provide the challenge to them with negative reaction to confuse and discourage them. University University must also consider this factor.  Customer resistance The buyers has power and resistance to shift to new service or product provider. So the new market entrant faces two types of customer resistance. This creates a good opportunity for University University to attract the potential students by providing them quality product. i. Failure to accept new product: ii. Unwilling to accept extra or new cost:  Efficiency As the number of the educational providers are increasing the competitors have to increase their efficiency. The University is focusing on innovation, economics, quality and differentiation. It must emphasize in all these sectors to outclass the new entrants and existing competitors.  University Campuses Increasing the number of campuses by university can increase business, reduce cost, increase popularity and attract the potential students. Thus the University University is working on this point. This also creates the threat for the new entrant.  Location If the new entrant is located in expensive/rich and populated area, this can increase it potential to grab the new students. So it is important for University University to locate its new campuses in the populated areas. OPPORTUNITY Partnerships with other universities The new construction opportunity is available for new departments. Making of new parks, Pool Construction and Gym THREATS Unpopular among the universities An increase in the fee due to inflation can give an advantage to competitors Private, Low-cost universities & Private, On-Line universities Competitor universities in the nearby areas and strong competitors. Bargaining Power of buyer is higher
  • 15. 15 (2) National level environment scanning factor Economic forces= the economic forces that are effecting the University university at national level are Inflation, Funds available for University, National bank interest rates and capital investment done by University University. (3) broader socio-economic or macro-environment scanning factor Social, Government and Legal issues=these are the issues related to law, regulations and taxes Political= the political instability had deep impact on the business of University University business. Government threats State budget and economic crises Reduced state funding Technological= the innovation and revolution technology can change the way the organization operates. The highly advance technology can affect the University university way of doing business. The new innovative technology can affect the competitors, market, suppliers, customers, services and potential customer sales. Use of wireless and online technology:  online student free payment and banking,  online degrees and distance education THREATS Substitute technologies taking advantage Lack of industrial liaison and technology OPPORTUNITY There is an opportunity for introduction of online degree system. Online student accounts and plate forums External factor evaluation matrix Sr Key external factors Weight Rating Weighted score Opportunities 1 Partnerships with other universities 10 2 20 2 The new construction opportunity is available for new departments. 10 2 20
  • 16. 16 3 Making of new parks, Pool Construction and Gym 10 2 20 4 Substitute technologies taking advantage 10 4 40 5 Lack of industrial liaison and technology 10 5 50 Threats 6 7 An increase in the fee due to inflation can give an advantage to competitors 10 3 30 8 Private, Low-cost universities & Private, On-Line universities 10 5 50 9 Competitor universities in the nearby areas and strong competitors. 15 4 60 10 Bargaining Power of buyer is higher 15 5 60 Total 1 3.50 ALL SELECTED SWOT FACTORS AVALIABLE Strengths Weaknesses Internal Factors  Organizational Structure and planning is clear  There is separate quality control department for management of quality.  Multiple degree programs available  Most the customer students are satisfied with education system  There is separate sales team and profitability is increasing  Organization reward system is lacking  Quality is some time ignored  Complex admission process  Increase in free annually  Symbolic actions are taken on the complaint reporting. Opportunities Threats
  • 17. 17 External Factors  Partnerships with other universities  The new construction opportunity is available for new departments.  Making of new parks, Pool Construction and Gym  Substitute technologies taking advantage  There is an opportunity for introduction of online degree system.  An increase in the fee due to inflation can give an advantage to competitors  Private, Low-cost universities & Private, On-Line universities  Competitor universities in the nearby areas and strong competitors.  Bargaining Power of buyer is higher
  • 18. 18 CHAPTER-4 STRATEGY IN ACTION MATCHING STRATEGY-TOWS Matching the factors Strengths Weaknesses TOWS Matrix S1=Organizational Structure and planning is clear S2=There is separate quality control department for management of quality. S3=Multiple degree programs available S4=Most the customer students are satisfied with education system S5=There is separate sales team and profitability is increasing W1=Organization reward system is lacking W2=Quality is some time ignored W3=Complex admission process W4=Increase in free annually W5=Symbolic actions are taken on the complaint reporting. Opportunities SO Strategy WO Strategy O1=Partnerships with other universities O2=The new construction opportunity is available for new departments. O3=Making of new parks, Pool Construction and Gym O4Substitute technologies taking advantage O5=There is an opportunity for introduction of online degree system. The university has potential to expanding in education and technology platform with high quality--,S3,S4,S5-O2,O3,O4.New construction should be done with higher technology integration..  Horizontal integration Increase in free annually due to budget and economic crises. The fee should not be low enough and may not put financial Burdon on organization. So by increase in fee can allow organization for expansion and new construction of departments, gym, parks and pools etc. o3 ,w3  Retrenchment and turnaround Threats ST Strategy WT Strategy
  • 19. 19 T1=An increase in the fee due to inflation can give an advantage to competitors T2=Private, Low-cost universities & Private, On-Line universities T3=Competitor universities in the nearby areas and strong competitors. T4=Bargaining Power of buyer is higher Multiple degree programs in Private, Low-cost universities & Private, On- Line universities Competitor, this will increase the Bargaining Power of buyer is higher. The online education system should also be introduced. S5,T2,T3,T4  Related Diversification The ignored quality will give the advantage to Competitor universities in the nearby areas and strong competitors. W2, T3. The target should be to increase quality.  Retrenchment=product Resultant Strategies for External and Internal Factors Strategy in Action Sr. no Internal Factors-SW External Factors-OT Resultant strategy in action Strategy 1 S3,S4,S5 O2,O3,O4 The university has potential to expanding in education and technology platform with high quality-- ,S3,S4,S5,O2,O3,O4.New construction should be done with higher technology integration.. Horizontal integration 2 w3 o3 Increase in free annually due to budget and economic crises. The fee should not be low enough and may not put financial Burdon on organization. So by increase in fee can allow organization for expansion and new construction of departments, gym, parks and pools etc. Retrenchment and turnaround 3 S5 T2,T3,T4 Multiple degree programs in Private, Low-cost universities & Private, On-Line universities Competitor, this will increase the Bargaining Power of buyer is higher. The online education system should also be introduced. S5,T2,T3,T4 Related Diversification 4 W2 T3 The ignored quality will give the advantage to Competitor universities in the nearby areas and strong competitors. W2, T3. The target should be to increase quality. Retrenchment=product
  • 20. 20 CONCLUSIONS SO STRATEGY IN ACTION-1= The university has potential to expanding in education and technology platform with high quality-- ,S3,S4,S5,O2,O3,O4. New construction should be done with higher technology integration. This is the horizontal integration, in which the company has control over market penetration and has ability to remove its competitors in the way by adding more techniques and finance in business. WO STRATEGY IN ACTION-2= As the economic crises is taking place in third world countries and around the world. Increase in free annually due to budget and economic crises is increased. o3 ,w3. The fee should not be low enough and may not put financial Burdon on organization. So by increase in fee can allow organization for expansion and new construction of departments, gym, parks and pools etc. This is the strategy of Retrenchment and turnaround. The product is near to finish and we need to increase the cost of product to remain our product, alive and have good earning business. ST STRATEGY IN ACTION-3= Multiple degree programs in Private, Low-cost universities & Private, On-Line universities Competitor, this will increase the Bargaining Power of buyer is higher. The online education system should also be introduced. S5,T2,T3,T4- The multiple degree program with flexibility will increase in online education demand. This also increases the bargaining power of supplier as many universities in this business with low cost. Related Diversification strategy is used to expand business without changing business track. WT STRATEGY IN ACTION-3= The ignored quality will give the advantage to Competitor universities in the nearby areas and strong competitors. W2, T3. The target should be to increase quality. The resultant strategy used is Retrenchment. In the retrenchment technology the quality product is near to finish and we have to add some extra activities in it to make it alive again. REFERENCE [1] Fred R David, Strategic management concept and cases, 13ed [2] Felicia Juliani Leliga, Janet Devina Koapaha, Anastasia Cherry Sulu. East African Scholars Journal of Economics, Business and Management