THE STRATEGIC MANAGEMENT FOR EDUCATIONAL INSTITUTIONS

HANUMANTHAPPA U M 1RV12MEM07

Contents Abstract Introduction Background Theory

Methodology
Influences

Case Study
Conclusion

Abstract

Strategy development in higher education (HE) institutions has not been investigated a great extent. The theoretical background draws on two theories of strategy and competitive advantage, namely, industrial organization (IO) and resource-based view(RBV). These are used to guide 32 in-depth interviews that explore the elements of external industry structure, internal resources and capabilities, and institutional performance with senior HE decisionmakers. Factors of competitive advantage and the indicators of institutional performance identified in the study verify and further develop the limited understanding relating to strategic marketing of educational institutions. Keywords: Marketing higher education, marketing strategy, qualitative research, competitive strategy

Introduction

Competition amongst higher education (HE) institutions is largely due to an oversupply of student places and slowing demand from suitably qualified students. As a result, managers in the HE sector are seeking to rethink their strategic positions. Lynch and Baines (2004) have shown that it is appropriate to use RBV to guide strategy development for HE. They argued that the RBV approach can be applied to the national system of competitive UK, HE and given the international nature of HE suggest that further research is justified. Like many other institutes, universities are now concerned with market share, productivity, return on investment and the quality of services offered to the customers.

Background Theory
Institutions of Higher Technical and Vocational Education (HTVE) in Taiwan were faced with the pressures of student loss as well as with competition from many domestic and international institutions. Strategic management for educational institutions helped to identify the elements and indicators of competitive advantage as they apply specifically to HE institutions. Investigating these strategic development constructs, within the confines of the HE sector, represents an important next stage for the development of strategic management and marketing of these institutions. This study uses two of the principal theories of strategy and competitive advantage, namely IO theory and RBV theory, in exploring elements of external industry structure, internal resources and capabilities, and institutional performance.

Significance of the Study

The presented information, hence, are found that the higher education requirement in 2002 2011 according to The Higher Education Development Plan Issue 10 B.E. 2550 2554 and the estimated students in 10 years : academic year 2004-2013 trends to increase or implies that the higher education market is larger. It causes the spreading market to the vocational education together with the increase of various institutions. The competition is respectively increased.

 Moreover the private institutions must fundraise to manage all higher education matters, but the public ones have been supported by the government. The private vocational institutions survival and growth depend on the students who register because it is the main income of the institutions. UNESCO and many marketing academics support to apply the marketing concept to administrate and provide for the public and private institutions finance.

Review of Related Methods and Procedures

The factors of competitive advantage and the indicators of institutional performance were explored via in-depth interviews with a sample of senior decision-makers and professionals The interviews focused on three major domains: 1. External industry structure 2. Internal resources and capabilities 3. Institutional performance. These three qualitative research methods commonly used in business research: Interviewing Focus groups Observation

The interviews were conducted with a prepared guide, which included a list of topic headings and key questions in three categories: External industry structure: Questions to identify the external industry factors that affect how HTVE institutions operate and perform in achieving competitive advantage; Internal resources and capabilities: Questions to determine the organisational resources and capabilities that provide institutions with a foundation for achieving competitive advantage; Institutional performance: Questions on a range of performance indicators for evaluating the competitive advantage of institutions.

Influences
1.External industry structure With reference to the effects of external industry structure, the following five themes were identified as the strongest areas of concern:
Themes
Competitive rivalry

Sub-themes
The increase in the number of HTVE institutions, the decrease in the number of HTVE students, the high intensity of competition between institutions Threat from domestic academic universities, threat from foreign institutions of higher education, threat from China-based institutions of higher education, threat from private business enterprises The regulations and policies of government on the operation of an educational institution, the minimum number of students required for The operation of an educational institution, the minimum capital required for establishing a new educational institution The power of students, the power of parents, the power of employers the power of the Taiwan Ministry of Education, the power of vocational high schools, the power of faculties

Threat of substitutes

Threat of entrants

Bargaining power of buyers Bargaining power of suppliers

 Internal resources and capabilities In terms of internal resources and capabilities, the comments received from the respondents were classified into the following themes that link to the six dimensions of internal resources and capabilities
Themes Organis ational resources Sub-themes Organis ational structure, organis ational efficiency, integration of administrative resources Media promotion, scholarship and financial aids offered, participation in extracurricular activities, strategic alliances with vocational high schools, partnerships with other higher education institutions Faculty qualifications, teamwork building, leadership, personnel staffing, job loyalty Campus location, campus facilities, teaching & research infrastructure sufficient financial capital, financial planning budgeting, financial Implementation Curriculum design, curriculum quality, range of majors & degree programs, Collaboration with private business enterprises, participation in

Marketing

Human resources

Physical resources Financial resources

Products R&D

 Institutional performance
The stet of interviewees indicated that institutional performance is interrelated to the competitive advantage of institutions, and can be evaluated on three levels:
Themes Student performance Sub-themes employment rate of fresh graduates, percentage of graduates pursuing further studies, pass rate on certificate/licensure examinations, professional knowledge and capabilities of graduates staff performance in teaching, staff performance in academic research, staff performance in applied research, practical experience and skills of teaching staff institutional culture, graduate/ alumni evaluations, institutional distinctiveness, community service, holistic education development, professional curriculum development, institutional reputation, facilities management, industry-academia collaboration, magazine ranking, industrys evaluation on the quality of graduates,

Staff performance

Institution-level Performance

Conclusion
This study explored the factors determining the competitive advantage of institutions , the types of strategy undertaken by HE institutions, as well as the indicators measuring their overall performance. From this study, it can be concluded that the competitive strategy that will produce the best results is dependent on the match between the state of the environment facing HE institutions and their existing resources and capabilities. The major implications of these strategies can be applied to strengthen the competitive advantage of HE institutions. Further investigation is required to verify a series of actions that could be taken, including establishing market-exit mechanisms, advocating strategic alliances and partnerships between institutions, co-operating with foreign institutions of higher education, advocating industry-academia collaborations, and ensuring curriculum design in compliance with industry requirements. An important advancement would be to undertake scale development and/or modification of existing scales to quantitatively assess these indicators in a specific educational sector.

Bibliography / References
Private Higher Education Institutions Activity, Office. Act of Private Higher Education Institutions B.E.2522 amended B.E.2535. Bangkok : Ministry of University Affairs, 2545. Board of National Education, Office. Office of Prime Minister. Act of National Education B.E. 2542. Bangkok : Prikwhan Graphic. 2542. Board of National Education, Office. Office of Prime Minister. Estimation of Population In Thailand B.E. 2542-2559. Bangkok : 2542. Board of National Education, Office. Office of Prime Minister. Estimation of Students Academic Year 25422559. Bangkok : Chuanpimp Press.2543. Board of National Education, Office. Office of Prime Minister. National Education Plan (B.E. 2545-2559): Summary Issue. 2nd press. Bangkok : Prikwhan Graphic. 2545. Board of National Economic and Social Development. Office. Office of Prime Minister. National Economic and Social Development Plan Issue 9 B.E.2545-2559. Bangkok : Chuanpimp Press.2545. Council of ministers Resolution. (2007) Draft Act of Vocational Education. Bangkok Ministry of University Affairs. Higher Education in 21th Century: Vision and Performance. Bangkok: Mor.Por.Por. 2541. (photocopied document). Ministry of University Affairs. Act of Private Higher Education Institution B.E. 2522 amended B.E.2535. Bangkok: Mor.Por.Por. 2541. (photocopied document). Ministry of University Affairs. (Draft) Higher Education Development Plan Issue 9 (B.E.2545-2549).Bangkok: Ministry of University Affairs.2545. Siamrath. (2551) When university must compete vocational education Newspaper issue 20154 p.19 on 1 July B.E. 2551. Office of Board of Private Education. Students Information Report divided into level of education academic year 2551.source www.opec.go.th Samran Boonchareon.(2004). The marketing strategy developing for private higher education institutions. Ph.D. Dissertation. Chulalongkorn University

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