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Star University

A new Business Plan


2/14/2012 IIM Raipur Devendra Sahu (Roll No: 12)

Executive Summary
Star university is founded in 1996 and is operational, since then it has gradated about 15000 students who are working in various organizations private, public, family business, and entrepreneurial across the Globe spreading the name of Star University. Recently star university has been recognized by UGC and Govt. of India. The university is planning to broaden its base geographically as well as horizontally (in terms of courses offered) and to attract foreign students. Being newbie and less faculty base, the university is also planning ways to get the best faculty in the industry and more talented students from across the globe. This report presents the business plan for Star University. The opportunities are discussed regarding students base and their preferences. The plan also discusses about attracting faculty members, attracting students and positioning itself as a R&D and innovation center by various marketing techniques. The marketing, operational and financial funding plans are also discussed in detail. SWOT analysis of Star University and Porters 5 Force analysis for education industry as a whole is also done.

Table of Contents
Executing Summary .........................................................................................................................2 The opportunity................................................................................................................................4 The University and courses ..............................................................................................................4 The management team .....................................................................................................................6 The marketing plan ..........................................................................................................................7 The Operating plan ..........................................................................................................................9 The financial plan ..........................................................................................................................10 SWOT analysis ..............................................................................................................................11 Porters 5 force Analysis ................................................................................................................12 References ......................................................................................................................................13 Exhibits 1. 2. 3. 4. State wise University distribution and categorization....14 Indias population distribution according to consensus 2011.15 Comparison of University distribution and population distribution percentages ..16 Students demographics for 2011.17

The opportunity
According to various surveys conducted by various agencies and the consensus of India about 315 million people are aged 10-24 years representing 30 percent of the countrys population. Looking at the various liberal policies of government it is expected that this level of young generation is going to be maintained in future also, there are chances of increasing the population due to immigration to India from other countries as the country is performing quite well in economic terms. According to Exhibit 1 there are total of 20 universities in Delhi out of which 0 are private universities, so the opportunity for a private university is huge. From Exhibit 3 and Exhibit 4 it is deducted that the potential for students is much higher than the availability of institutes and universities. Apart from this every year thousands of students moves to US, UK, Australia, Canada, Singapore, Dubai etc. for study purposes, which clearly indicates the requirement for a world class reputed University in Indian territory.

The University and its courses


Star University has been established under the state legislature of Uttar Pradesh through Act no. 14 of 2009 as a private university under the Start Trust. Apart from university the trust is running various Engineering and management courses. Presently Star University is having its campus in Greater Noida sprawled across 50.86 acre of land. The university has a total built up area of more than 12 lakh square feet consisting of academic blocks, hostels, staff residence and guest houses. Students are provided with healthy and hygienic food. There are about 6 cafeterias in different blocks of the campus. The cafeterias and other eateries are functioning based on the 'Pay as you eat concept'. Apart from cafeterias, the campus also holds mini refreshment joints and Vending Machines in various spots. Star University provides a student with all the amenities and facilities to enjoy the fast paced metro lifestyle right within the campus. Leading Restaurants and Food Chains would open their outlets in the Central Food Court soon. Sagar Ratna, Amul Milk Parlour, Bikano, Caf Coffee Day are already running their outlets in the campus. Library is having a vast collection of books and journals. The tie up with various publishers provides all the latest books published to the university campus at earliest time.

Having one auditorium and 6 conference halls in all the course territories gives star university an edge over other institute and universities that the students here can have international meetings, online placement interviews, online presentations with allied institutes, corporate sessions and online demo of projects and presentation simultaneously across different functional levels. The other facilities included are a) Dedicated computer center b) High speed seamless internet Wi-Fi connectivity c) IP and dome cameras to monitor any unnecessary activity inside campus d) All the educational softwares with firewall and virus protection e) IT helpdesk support along with call center for providing academic information. f) Cafeterias, healthcare center, Gymnasium, Sports facilities, accommodation and transportation The University is presently running UG , PG programmes in Engineering, Management, doctoral, dental and medical programmes. The various course selection opportunities at Star University are 1) Engineering and technology courses 2) Medical science courses 3) Business and management course 4) Arts and science courses 5) Dental courses 6) School of foreign language 7) Basic science and research institute 8) School of law 9) School of Architecture planning 10) Investigation and security school

The Management Team


The management team consists of various industry and education experts, who are holding research and industry innovation experience. The team is always motivated to have innovative ideas and encourage each and every member of Star University family to come forward to renovate the education field, building strong and creative leaders and experts in the industry across the world. The team always focuses on globalization and encourages and welcomes the students from across the globe to take admission in Star University and enjoy learning with invention and razzmatazz. Managements plan to attract the best teaching Profs and talent in the country is visible by 1) The highest paymaster in the country ( much higher than governments sixth pay commission) 2) Location is Greater Noida which is well developed and secured location, having high connectivity with the capital, malls and shopping complexes, sports facilities, nearby schools, and low traffic transportation facility attracts the residents. 3) Profs are given flexibility in teaching methodologies. 4) Due to high faculty/student ratio, Star University gives flexible timing for Profs which are not given in any of the other institute or university in India. Making it the center of attraction for all the faculties across India and International level. 5) On campus stay facility for faculty and staff members connected with essential services 6) Facility for leased accommodation in vicinity to the university. 7) Medical and Medi-claim facility 8) Subsidized laptops and other equipments 9) Transportation facility 10) Facility for research and development and helping in paper presentations at national and international level. To attract students management is trying very hard and faculty members are also very committed to attract more students as their existence is solely depends on the availability on students. 1) Very accommodative hostel facility provided, along with cafeterias to serve taste of India 2) Library, transportation, high speed internet, subsidized laptops, film clubs, sports facilities and play grounds. 3) Internship and final placements facilities by having industry tie-up and alumni help. 4) Lawn and spacious gardens are also designed very well so give natures feeling to students and faculty members. 5) Very high teachers/ students ratio. 6) Online material and tests, quizzes and competitions. 7) Scholarship and prizes are given to promising students.

Marketing Plan
Marketing is an important aspect and a deciding factor for the success of any organization. Unless and until we will not be able to sell our product it is worthless. The product may have superficially excellent features but without selling that does not hold any importance. The Star University is focusing to promote itself as Research and Development Activity University. R & D center is already established and running well. Professors are from all the disciplines and are very much motivated to promote R & D. Star University is having tie-up with CINVESTAV Mexico, HOSHSCHULE BREMERHAVEN Germany, Northumbria England, Middlesex London UK, TEC Mauritius. 1) Print media a) Attractive brochure needs to be designed, b) Regular Placement reports publishing in news papers and other print formats, c) Almost every day the national dailies should contain an article from university regarding innovation, pedagogy techniques, new findings, co-curricular activities, competitions or anything that is eye catching to media. d) Hoardings of university should be implanted on various students gathering locations. 2) Television media a) Documentaries on various social issues created by university students should be encouraged to be broadcasted on television by having tie-up with television channels. This will also encourage students to participate more and come up with innovative ideas in order to come into media and accrue some fame for themselves. If the documentaries will be interesting then television channels will also provide financial support for broadcasting. b) Law and mass communication Students should be encouraged to participate in national and international level issues by providing them with basic facilities and monetary benefits backing up by news media tie-up. This will surely bring the university in headlines at national and international level. c) National and international level weekly quizzes and competitions should be telecasted having tie-up with television channels. This will bring the university immediately in focus of everyone. 3) Social media a) Regular updating is required for University website regarding any news item, competitions, results, placements. There should be study material available in the form of notes, presentations, class room videos; which should be freely available to all the students across the world for downloading and studying. b) The regular updating of FACBOOK, MYSPACE, ORKUT, GOOGLE PLUS pages should be done. Videos of most of the activities should be uploaded to YOUTUBE and other video sharing websites. 4) Viral marketing a) Funny activities like onstage dance performances, jokes competitions, debates should be encouraged and these should be available in Social as well as Television media. b) The Mass Media Marketing and Arts students should be encouraged to create marketing advertisements for various organizations and industries and submit them to the respective

companies. This will help in building relationship with industries and help students to get placements. 5) Telemarketing a) The customer care system should be operational 24X7. There should be minimum waiting time and IVR (interactive voice reply) can also be installed to minimize waiting time. b) Students information should be collected from various resources and they can be contacted by telemarketing persons to give details about the course plan and the future growth in the university. Students should be encouraged and convinced to visit the University campus and collect brochure. c) Text messages should be sent to students regarding new courses and offerings at Star University. d) Marketing persons can also contact international schools and have tie up with them to spread the word of Star in those schools and encourage students to take admission in Star University. e) Calling and conversation facility should also be available on Skype and G-TALK.

Operations Plan
The operations plan is the way in which Star University will be operated and presently operational. The operations is the very important aspect of any industry (especially education sector), this is the deciding factor which marks the future goals and objectives of any organization. The operations should be at par with the industry standards, meeting minimum requirement in all the aspects and exceeding in some fields in order to lure more customers (students in this case). The various operations plan for Star university are 1) University encourage students to have international exposure by split site training in research labs across the world, having tie up with Mexico, American universities. 2) Faculty is regularly encouraged to participate in international and National conferences. 3) University is having wide sprawled campus facility having Fiber Optic backbone and high end CISCO Network. University has 20MBPS of bandwidth from private data providers and 1 GBPS from NKN. 4) University is having large number of books in libraries across various courses. The online journals from INDEST, DELNET, SPRINGER, and EMRALD are very well functional. There are many more subscription of leading journals and magazines in research and development. 5) University is also having ERP system fully functional so as to control and monitor all the activities in all departments and to make future plans of university based on present working data and expected changes in External environment. This also helps in recruitment, admission works, placements, maintaining alumni information, and reduces paper works. 6) The course structure of the university is framed by industry experts, Education icons, foreign educational amulets and renowned personalities in education, development and research field. 7) LMS is operational, which is an online internal forum, blog and chatting, notice board, dashboard, Time table platform for students and teachers. This also provides facility to provide online assignments and tests to students. 8) University also focuses on providing sports, national and international level presentations and competitions; curricular and cultural events facility for overall growth of students. 9) To provide real time experience for students, bodies like Court, Executive council, Academic council, hospital, engineering equipments, and experimental labs are also established. 10) Evaluation of students will be done on continuous basis with Midterm, End term, class tests, assignments, tutorials, quizzes, presentations and projects. The exams are having written papers, practical and viva, inspection in classes and labs, project reports and final results or findings.

Financial Plan
The funding is provided by national level agencies like DST and DSIR and state level funding from Ministry of Agricultural Education and Research, Government of Uttar Pradesh. Unlike government run Universities Star University in non-subsidized having incurred very high cost in erecting the huge infrastructure and investing very high on the marketing plans and equipment purchases along with add-on benefits to students and faculty in order to attract them from more established organizations. The funds incoming required is much more as compared with any established educational firm. There are various financing sources which are available and can be availed in future are written here 1) Students Fees 2) Hospital Receipts 3) State Govt. funding 4) UGC funding 5) Promoters contributions 6) Bank Loan 7) Donations 8) Selling patents and research reports 9) Industry sponsorship for industry focused research issues. 10) Alumni contributions 11) Placement agencies and companies for providing talented pool of students. 12) Selling monthly magazine subscription 13) Selling the creative advertisement campaigns designed for various companies 14) Providing other courses like distance learning and course materials selling which involves very less costs and returns are very high.

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SWOT Analysis
Strengths 1) 2) 3) 4) 5) Best faculty in the country is available Highest number of international students in any Indian university The best marketing plans Focus on R&D No government intervention, due to which the functions are smooth, processes are fast and independence in course structure, evaluation and curriculum. Being private university it is having low reliability perception in students and parents Due to late inception awareness is less among the population of India as compared to other universities. Geographical presence is limited to one state only Move to other states of India where private universities are less and the ratio of university and population is less (Exhibit 3) Diversify the course structure in more R&D specific departments like pharmaceutical developments, aeronautical developments engineering, space exploration, renewable energy resources developments, defense weapon research and developments Tie up with government departments in order to get real time projects in security and other development projects Tie up with various manufacturing and services industries to get real life projects problems into campus. Established government universities following the same structure Future government policies regarding narrowing the scope of private universities. Decrease in population growth rate of country. New universities establishing in near viscinity

Weaknesses

1) 2) 3) 1) 2)

Opportunities

3) 4) Threats 1) 2) 3) 4)

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Porters 5 Force analyses


Bargaining power of buyers 1) Students are becoming more price conscious 2) Students seek more secured industry where they can get good salaried job instead of focusing on R & D. 3) Students are very selective in courses which weakens the idea of diversifying the course portfolio 1) Faculty members are demanding more salaries with less work for them 2) The building costs, transportations costs, equipment costs are raising very rapidly. 3) Books are becoming more costly as due to stringent environmental law on wood cutting. 1) Due to financial conditions students are dropping out of education after completing schooling 2) Due to diploma courses students are joining industries early and gaining positions on the basis of number of years of experience as the degree completing students studies more number of years. 3) Being distance learning and online learning more accessible students are opting out of attending University and refraining from research process and co-ed learning, developments and R&D options. 4) Those with family business are focusing more the business as compared to studies and research programmers. 5) With the evolving internet and social networking activities Students are more involved in those traits, instead of focusing on studies and research problems. 1) Online courses and video tutorials which are transferred from one student to another easily and cost effectively. 2) More foreign players are expected to come in India as the growth opportunities in terms of population are very high in India. 3) Small coaching institutes and schools who are well reputed, are moving to get accreditation as a deemed university. 1) Old Government Universities are the more preferable destination for students as they have more Alumni base and strong foundation with robust system evolved over the years. 2) Old established institutes opening new branches (like New IIM s and IITs coming up) 3) The number of Government universities in NCR is very large which are already established and receives subsidy from government for operations, but for new Private Universities the time is really tough as they have to charge high students in order to recover the costs involved.

Bargaining power of suppliers

Threat of substitutes

Threat of new entrants

competitors

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References:
1) http://www.sharda.ac.in/ 2) http://www.indiaeducationreview.com/article/analysis-private-university-lawsrecommendations-policy 3) Guidelines 4) www.wikipedia.com

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Exhibit 1
University distribution and categorization in India
Summary of universities in India by state and type State Andhra Prades Arunachal Pradesh Assam Bihar Chandigarh Chhattisgarh Delhi Goa Gujarat Haryana Himachal Pradesh Jammu and Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Pondicherry Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttar Pradesh Uttarakhand West Bengal Total Central 3 1 2 1 0 1 4 0 1 1 1 1 1 1 1 2 1 2 1 1 1 1 1 1 1 1 2 1 4 1 1 41 State 30 0 4 14 1 10 5 1 18 10 4 6 7 20 11 15 19 0 0 0 0 12 0 7 14 0 24 0 23 6 20 281 deemed 7 1 0 2 1 0 11% 0 2 5 0 0 2 15 2 3 21 0 0 0 0 2 1 2 8 0 29 0 10 4 1 129% Private 0 0 1 0 0 3 0 0 9 5 11 0 1 2 0 3 0 0 7 1 2 1 0 3 18 4 0 1 16 6 0 94 Total 40 2 7 17 2 14 20% 1 30 21 16 7 11 38 14 23 41 2 8 2 3 16 2 13 41 5 55 2 53 17 22 545

Does not include Central University of Jammu which has not started operating.
%

does not include the National School of Drama which changed status on 7 October 2011, and its current status is unclear.

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Exhibit 2
State wise Population of India as per 2011 Census
State /UT Code 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 India/State/ Union Territory # INDIA Jammu & Kashmir Himachal Pradesh Punjab Chandigarh # Uttarakhand Haryana NCT of Delhi # Rajasthan Uttar Pradesh Bihar Sikkim Arunachal Pradesh Nagaland Manipur Mizoram Tripura Meghalaya Assam West Bengal Jharkhand Orissa Chhattisgarh Madhya Pradesh Gujarat Daman & Diu # Dadra & Nagar Haveli # Maharashtra Andhra Pradesh Karnataka Goa Lakshadweep # Kerala Tamil Nadu Puducherry # Andaman & Nicobar Islands # Population 1210193422 12548926 6856509 27704236 1054686 10116752 25353081 16753235 68621012 199581477 103804637 607688 1382611 1980602 2721756 1091014 3671032 2964007 31169272 91347736 32966238 41947358 25540196 72597565 60383628 242911 342853 112372972 84665533 61130704 1457723 64429 33387677 72138958 1244464 379944 Males 623724248 6665561 3473892 14634819 580282 5154178 13505130 8976410 35620086 104596415 54185347 321661 720232 1025707 1369764 552339 1871867 1492668 15954927 46927389 16931688 21201678 12827915 37612920 31482282 150100 193178 58361397 42509881 31057742 740711 33106 16021290 36158871 610485 202330 Females 586469174 5883365 3382617 13069417 474404 4962574 11847951 7776825 33000926 94985062 49619290 286027 662379 954895 1351992 538675 1799165 1471339 15214345 44420347 16034550 20745680 12712281 34984645 28901346 92811 149675 54011575 42155652 30072962 717012 31323 17366387 35980087 633979 177614 Percent 100.00 1.04 0.57 2.29 0.09 0.84 2.09 1.38 5.67 16.49 8.58 0.05 0.11 0.16 0.22 0.09 0.30 0.24 2.58 7.55 2.72 3.47 2.11 6.00 4.99 0.02 0.03 9.29 7.00 5.05 0.12 0.01 2.76 5.96 0.10 0.03

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Exhibit 3
Comparison of population and university distribution in India
State Andhra Pradesh Arunachal Pradesh Assam Bihar Chandigarh Chhattisgarh Delhi Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Orissa Puducherry Punjab Rajasthan Sikkim Tamil Nadu Tripura Uttar Pradesh Uttarakhand West Bengal Population 84665533 1382611 31169272 103804637 1054686 25540196 16753235 1457723 60383628 25353081 6856509 12548926 32966238 61130704 33387677 72597565 112372972 2721756 2964007 1091014 1980602 41947358 1244464 27704236 68621012 607688 72138958 3671032 199581477 10116752 91347736 Percentage 7 0.11 2.58 8.58 0.09 2.11 1.38 0.12 4.99 2.09 0.57 1.04 2.72 5.05 2.76 6 9.29 0.22 0.24 0.09 0.16 3.47 0.1 2.29 5.67 0.05 5.96 0.3 16.49 0.84 7.55 universities 40 2 7 17 2 14 20 1 30 21 16 7 11 38 14 23 41 2 8 2 3 16 2 13 41 5 55 2 53 17 22 percentage 7.34% 0.37% 1.28% 3.12% 0.37% 2.57% 3.67% 0.18% 5.50% 3.85% 2.94% 1.28% 2.02% 6.97% 2.57% 4.22% 7.52% 0.37% 1.47% 0.37% 0.55% 2.94% 0.37% 2.39% 7.52% 0.92% 10.09% 0.37% 9.72% 3.12% 4.04%

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Exhibit 4
Students information 2011
1) 2) 3) 4) Total students taken CAT 2011 is 2.05 lakh (approx. 45,000 from NCR) Total students taken GATE 2011 is 552530 Students attended AIEEE in 2011 is 11 lakh. Students attended AIPMT in 2011 is 2,21,867

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