(Tiểu luận) strategic management group assignmentexternal analysis of the higher education industry

NEU Business schoolE-BBA13.1 class Group 06 – Strategic Management current on higher education developments in order to connect their services with the jobmarket while preserving a compe

NATIONAL ECONOMICS UNIVERSITY

NEU BUSINESS SCHOOL

-  

-STRATEGIC MANAGEMENT GROUP ASSIGNMENT

External Analysis of the Higher Education Industry

Đỗ Quang Đăng – 11219047

Hồ Sĩ Minh – 11219093Nguyễn Mai Dương – 11219042

Vũ Tú Oanh – 11219113

Lê Thu Hường – 11219066

Lê Thị Thùy Dương – 11219041

Hanoi, May 2023

NEU Business school

E-BBA13.1 class Group 06 – Strategic Management

INDEX

INDEX -1

INTRODUCTION -2

MACRO ENVIRONMENT ANALYSIS -3

Policy -3

Economic -4

Social -6

Technology -9

Cultural -10

INDUSTRY ENVIRONMENT ANALYSIS -11

Threats -11

Bargaining -13

The Intensity of industry rivalry -14

KEY SUCCESS FACTORS OF THE INDUSTRY -16

REFERENCE -18

NEU Business school

E-BBA13.1 class Group 06 – Strategic Management

INTRODUCTION

Numerous studies have been done on education in general and higher education inparticular Any society's foundation is its higher education system The standard of a nation'shuman resources is determined by the caliber of its higher education system Highereducation encompasses the teaching and learning processes at colleges and universities,which students pursue as they work to achieve higher educational credentials In-depthinformation and understanding are taught in higher education in order to take pupils to newareas of study Additionally, lifelong learning possibilities are provided through highereducation, enabling individuals to periodically update their knowledge and abilities inaccordance with societal demands

There were very few higher education institutions in the past because only a smallpercentage of people could read or write Producing a seniority list for the first universitieshas always been challenging It is impossible to do so with any degree of precision, owing tothe fact that the first universities, which arose in the eleventh to the thirteenth century, werethe result of spontaneous social events As the first universities arose from student unions,many of them arose as a result of student mobility from one location to another Padua wasthus founded by Bologna professors Paris, the first of the northern kind of university, wasunique in that its masters founded it

The primary goal of higher education is to produce adequate and qualified humanresources for the economy as a whole, of such quality and quantity that they contribute to thestate's production activities and, as a result, the state's social, economic, political, civil, andcultural environments become self-sustaining and vibrant As a result, the ultimate goal ofhigher education will be to educate our graduates and postgraduates to compete on a globalscale (Annual Administration Report, Directorate of Higher Education, Manipur, 2004-05)

In recent years, industry and academic specialists have seen an alarming prevalence

of skills gaps in the workplace (SHRM, 2019) Too many positions go empty despite lengthyjob postings, or they are filled with poorly suited candidates This is in stark contrast to thenorm of posts being immediately filled by fresh college graduates, notwithstanding theireducation and training At least, that has always been the concept behind aligning a collegedegree to the demands of the profession However, recent changes in business methods,cultural milieu, and student demography bring this long-held norm into doubt

With these causes driving massive shifts and the most recent university data to backthem up, learning institutions must do more to ensure that graduates obtain relevantinformation and skills that better equip them for the future of employment (Inside Higher

Ed, 2020) However, this is easier said than done, and universities and colleges must stay

2

NEU Business school

E-BBA13.1 class Group 06 – Strategic Management

current on higher education developments in order to connect their services with the jobmarket while preserving a competitive advantage

MACRO ENVIRONMENT ANALYSIS

Policy

For the higher education sector or any other industry to develop smoothly, it isnecessary to pay close attention to the impact of political factors This is a very importantindustry and receives great attention from the people to the state, so there are many policiesintroduced that affect the size, structure, and quality of training, either in the direction ofencouraging or constraining

In Vietnam, the State has also adopted specific policies on higher educationdevelopment specified in Clause 7 Article 1 of the amended Law on Higher Education 2018:

1 To develop higher education in order to train highly qualified human resources to meet economic development requirements and ensure national defense and security.

socio-2 To allocate budgets and resources for higher education on the principles of competition, equality, and efficiency through investment expenditures, research and development expenditures, research and training orders, scholarships, student credits, and other forms Prioritize and give preferential treatment of land, taxes, credits, and other policies to develop higher education.

3 To prioritize investment in the development of a number of regional and international higher education institutions, training sectors, and high-quality teacher training institutions; develop several specific sectors and higher education institutions capable of performing national strategic tasks and regional development tasks of the country Encourage the process of arranging and merging universities into large universities; application of technology in higher education.

4 To socialize higher education and encourage the development of private higher education institutions; give preference to private not-for-profit higher education institutions; adopt preferential policies for organizations, enterprises, and individuals investing in education and training, science and technology activities at higher education institutions; adopt tax exemption and reduction policies for donated assets, support for higher education, grant scholarships and participate in student credit programs.

5 Having synchronous policies to ensure the autonomy of higher education institutions associated with responsibilities.

6 Linking training with labor demand of the market, researching and applying science and technology; promoting cooperation between higher education institutions and enterprises, scientific and technological organizations; adopting tax incentives for scientific and technological products of higher education institutions; encouraging agencies, organizations, and enterprises to receive and create conditions for learners and lecturers to practice, practice, conduct scientific research and transfer technology, contributing to improving the quality of training.

NEU Business school

E-BBA13.1 class Group 06 – Strategic Management

7 To attract, employ and give appropriate treatment to improve the quality of lecturers; Focus on developing the teaching staff with doctoral degrees and leading professors in higher education institutions.

8 To give priority to beneficiaries of social policies, ethnic minorities, people in areas meeting with extremely difficult socio-economic conditions, and learners of specific disciplines meeting human resource needs for socio-economic development; realizing gender equality in higher education.

9 To encourage and promote international cooperation and integration with a view to developing Vietnamese higher education at regional and world levels.

Looking at the above regulations, it can be seen that the State has introduced policies

to promote and create favorable conditions for the higher education sector to develop This isalso one of the basic social policies in the system of socio-economic policies of the State,showing significant attention to the higher education sector In addition, the State alsoenhances the autonomy in the administration and administration of the education system ofuniversities, helping to make the operation of schools more natural, and flexible, increasingthe ability to meet the diverse requirements of society

Besides, not all policies are completely effective in promoting the education sector

"Budget investment per student is low, while public universities account for 84%, soexpecting high quality is extremely difficult We urgently need a breakthrough policy forhigher education," said Deputy Minister Nguyen Van Phuc From 2013 up to now, budgetexpenditure on higher education in Vietnam has only accounted for about 9-10% of the totalstate budget expenditure on education; about 2% of the total state budget expenditure, andjust over 0.5% of the country's GDP; The average cost for 1 student per year in Vietnam isalso only about $ 630, very low compared to developed countries With the low amount ofinvestment in universities, schools also cannot increase tuition fees unreasonably to make aprofit, leading to quality problems that are difficult to guarantee

From there, it can be seen that the State's decision has a great impact on thedevelopment of the higher education sector If an improper decision is made, not only theeducation sector will be affected, but also the economy and people’s life

Economic

In Vietnam, in models of long-run economic growth, economists often refer to theconcept of a production function, whereby the output of the economy is a sub-function OurParty and State are consistent in the view that education and training are the top nationalpolicy With the awareness that education and training policies together with science andtechnology policies are two national policies that need to be considered the highest priority

to realize long-term sustainable development goals, over the years, education and trainingpolicies in our country have been paid attention to and renewed, creating many importantresults, and contributing to the overall development of the country The fields, education, and

4

NEU Business school

E-BBA13.1 class Group 06 – Strategic Management

training are given priority to invest large resources from the state budget From the role ofeducation, we can understand that higher education is a process of training quality humanresources Higher education is seen as a system for nurturing future scientists andresearchers Besides the labor force, the knowledge force is the factor to promote thedevelopment of science and technology and the economic growth of a country

The growth and development of higher education partly depends on the ability of thestate budget to invest in universities Allocate budget and resources for higher education onthe principles of competition, equality and efficiency through investment spending, researchand development spending, research and training orders, scholarships, student credits andother forms Priority, incentives on land, taxes, credits and other policies to develop highereducation In 2015, the total state budget for education and training was VND 224,826billion, accounting for about 20% of total state budget expenditure Spending on vocationaltraining, secondary schools, colleges, universities and continuing education accounts for30% of total expenditure on education In which, spending on college and university trainingaccounts for over 12% In terms of GDP, Vietnam's ratio of spending from state resources oneducation and training to GDP is higher than that of many countries, regions, and evencountries with a higher level of economic development In 2012, the ratio of publicexpenditure on education and training to GDP of Vietnam accounted for 6.3%, higher thanthat of Singapore (3.2% in 2010), Malaysia (5.1%), Thailand (3.8%), South Korea (5.2% in2011), Hong Kong (3.5%) In 2010, the proportion of budget expenditure per universitystudent in Vietnam was approximately 40% of per capita income, while in the United States,this rate was 21%, Singapore was 28%, South Korea was 21% 13%, Japan 25% This showsthat the priority that the Vietnamese Government gives to education is quite large compared

to the financial capacity of the country However, the rate of expenditure on higher education

is low, budget expenditure on higher education in Vietnam only accounts for about 9-10% ofthe total state budget expenditure on education; about 2% of total state budget expenditureand just over 0.5% of GDP of the whole country The ratio of spending on scientific researchand equipment procurement is almost not guaranteed due to lack of capital The use andallocation are not efficient, still average and spread, thereby affecting the training quality ofuniversities

The attraction, use and reasonable remuneration in order to improve the quality of theteaching staff; The focus on developing a team of lecturers with doctoral degrees, leadingprofessors in higher education institutions to help dedicated, enthusiastic and satisfiedteaching staff also partly influence the decision to determine the success of higher education

It is necessary to prioritize the consideration of salary increases and preferential allowancesfor teachers, so that teachers no longer have to calculate the details and pull the tight salaryfor customers dozens of payments per month; wholeheartedly, confidently teaching

Management 100% (1)

27

NATIONAL ECONOMICS UNIVERSITY

NEU Business school

E-BBA13.1 class Group 06 – Strategic Management

knowledge to students Only then will the teaching staff's dedication to education be fullypromoted, thereby attracting students, improving the quality and economics of Vietnamesehigher education

In addition, the economic conditions of the students' families also have a significantinfluence on the success of higher education The income level of families also affects thenumber of students attending school The changing economic situation, the changes in theeconomic cycle such as economic recessions or during the Covid outbreak, the economygoes down leading to the reduction of personnel in enterprises due to insufficientperformance KPI, These changes have a great impact on employment and income ofhouseholds in Vietnam This also has a lot of impact on the school's decision to better matchthe current economic situation Many universities have to cut tuition fees, cut facultyallowances, reduce extracurricular activities as well as practical activities, sightseeing Insummary, the change in the general economy of the home country affects the economic andenvironmental changes of higher education

Social

International cobollation

International educational collaboration in this context is defined as the partnershipbetween domestic universities and foreign counterparts aimed at affording academicopportunities for Vietnamese students, including overseas study programs and internationalcurricula for foreign students studying in Vietnam

At present, there exist international training initiatives in Vietnam, either facilitated

by foreign institutions or through collaborative efforts between Vietnamese and foreignuniversities Successful completion of these programs may lead to the conferment of degrees(bachelor's, engineer's, master's) solely by the foreign university or jointly by both foreignand domestic institutions

In recent years, particularly since the early 1990s, international educationalcooperation has produced a considerable number of graduates across various fields, adhering

to global educational standards Of note are the thousands of business administration andeconomics masters who have received training, contributing significantly towardsaccelerating the transition from a centrally planned to a market-oriented economy

The impact of international educational cooperation has undoubtedly beeninstrumental in enabling Vietnamese universities to take decisive steps toward integrationinto the global academic landscape Through these collaborations, numerous largeinstitutions have fostered a highly competent faculty capable of delivering internationalprograms while also facilitating knowledge-sharing exercises with other universities

Tổng hợp Strategy management

Strategic Management 100% (1)

41

NEU Business school

E-BBA13.1 class Group 06 – Strategic Management

worldwide Moreover, domestic universities possess an educational management cadrecapable of designing and implementing international programs successfully Severaluniversities' curricula have been recognized by reputable institutions in Europe, the US, andAustralia, thereby allowing for the transfer of academic credits across borders ManyVietnamese universities have actively participated in international education partnerships,with some receiving recognition as official members by esteemed international educationorganizations

The academic level of lecturers

The current state of expertise among lecturers

Resolution 29-NQ/TW of the Communist Party on fundamental and comprehensiveinnovation in education and training stipulates that "College and university lecturers musthold a Master's degree or higher and be trained and developed professionally in pedagogy."However, according to the charts presented, the level of lecturers at universities is stillinadequate, with many not meeting the standard (i.e., not holding a Master's degree).Furthermore, many lecturers lack professional competence, pedagogical skills, andparticipation in cultural and social activities As a result, the increasing demand for high-quality human resources training has yet to be met, while the lecturer team is considered acrucial factor in the success of teaching

The cause of this status quo stems from two factors: firstly, the legal documents onremuneration policies for teachers and educational managers are not synchronized, theeffectiveness is not high, and the management mechanism and remuneration system are not

7

NEU Business school

E-BBA13.1 class Group 06 – Strategic Management

attractive enough to recruit good lecturers both domestically and internationally Secondly,many educational institutions do not prioritize the development of young lecturer resources.The current state of scientific research by lecturers

Scientific research plays a critical role in enhancing the scientific capacity oflecturers, positively impacting the quality of education and asserting the reputation ofeducational institutions during the era of international integration Scientific research isconsidered a leading criterion for evaluating the accomplishments of each lecturer ateducational institutions worldwide However, in Vietnam, many universities are notcurrently prioritizing this issue

Statistics reveal that the number of published articles in domestic professionaljournals or works published at various levels by university lecturers indicates that manyuniversity lecturers with doctoral degrees, associate professor titles, or years of teachingexperience have hardly produced any corresponding research publications or have notcompleted any research projects

The reasons for this situation stem from several factors: Firstly, the research abilities

of lecturers, especially young lecturers, are still limited Secondly, some lecturers do notfully understand the role and benefits of scientific research in their work Thirdly, themajority of university lecturers are not genuinely committed to research activities, resulting

in a prevalent trend of lecturers conducting research in response to workload requirements.Fourthly, shortcomings in research achievements and methodologies also lead to a commonoccurrence of low-quality scientific papers

The academic level of students

Currently, the academic level and skills of Vietnamese students are quite diverse anddepend on many factors:

Specialized knowledge: Many Vietnamese students have good specialized knowledge

in specific fields of study, especially in science and technology However, some students stillstruggle to apply their knowledge to practical situations

Soft skills: The majority of Vietnamese students still lack soft skills, includingcommunication, teamwork, problem-solving, and leadership skills This makes it difficult forthem to find employment and develop their careers after graduation

English language: Although many Vietnamese students have been studying Englishsince childhood, many still struggle to use the language fluently and confidently This makes

it challenging for students to seek study and work opportunities abroad