2. BUSINESS EXPANSION PLANS
2.2. ETUGEN UNIVERSITY EXPANSION PLAN
2.2.3. ETUGEN UNIVERSITY INTRODUCTION
As mentioned before, after loosening the standards and restrictions due to encouraging higher education system, many incompetent institutions started operating and the whole high education system went down in quality-wise. The government of Mongolia has been trying to correct the failure and start accrediting universities and start eliminating those disqualified. Besides that, since so called highly educated labor force supply is exceeded market demand; the government is trying to discourage those private universities, particularly offering education in social and humanitarian fields. While these government policy and market demand constitutes a challenge and opportunity to Etugen University and similar other institutions, thus leaving in constriction, on the other side well educated labor force in business, financial, mining and engineering demand is increasing due to expected economic boom is giving an another opportunity.
2.2.3. ETUGEN UNIVERSITY INTRODUCTION
University Mission Statement - We generate modern doctors, pharmacists, nurses, economists and accountants who possess scientific theory and methodology, medical and economical management skills as well as practical competency consistent with Mongolian education and development policy.
Vision - We generate an education service that produces elites with core values of humanism and high skills.
Core Values – Humanism, Professional Skills and Abilities, Time, and Team play Motto - Spirit, Effort, and Future.
Etugen College was established in 2001. And within the time being, it was unstoppably developing and expanding its operation and services and today the university has 1576 students in professions of physicist, pharmacist, bio-medical professions in medicals, accounting, tax accounting and supervision, economics and management on tourism, food production and service management and computer software professions in social fields. It started develop its foreign relationship with institutions and universities from Japan and Korea, constructed and exploited new constructions, laboratories and dorm.
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Moreover, within last few years the university exponentially increased its brand name to students through its well planned marketing strategy as well as gradual investments and developments in its service quality both in intellectually and in physically. Specifically, it is encouraging its teaching crew to make academic researches, promoting qualified instructors into full time teachers at the university.
Etugen University is supporting the ideas of establishing companies under its roof those train, experiment and produce drugs, establishing pharmaceuticals, and generating complexes in tourism and agriculture businesses. Saying so, it already started taking measures towards realizations of these projects which will help the university to diversify the business risks, foster financial soundness and to provide collateral and applicable internship and practice opportunities to its students and alumni.
2.2.4. MARKET ANALYSIS
Population growth looks promising and recent years university and college enrolled students and highly educated graduates are increasing in numbers and trend seems to be similar in coming years. See Figure 14 and 15.
Figure 16. Population growth in last three years
Figure 17. Graduates in last 4 year
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Figure 18. Newly enrolled students to universities, colleges and vocational schools in last ten years
In 2009, more than 89 thousand students graduated from primary and secondary school and 11.2 thousand students entered to technical and vocational schools whereas 33.0 thousand students entered to universities and colleges.
Same year, number of students who entered technical and vocational schools is increased with 6.8 thousand which is 17.9% higher than in previous year. In the same year 29.2%
of secondary school graduates entered technical and vocational school, it shows that demand for this type of school has been increased and will be following the same track in foreseeable future. This number is expected to be equaled mutually according to education master plan which will be mentioned in following Government policy part.
Number of universities and colleges has been reduced with 8 than in previous year, by contrast, the number of students has been increased with 3.7 thousand (2.3%) and reached 164.8 thousand.
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29 Figure 19. Numbers of universities and colleges in last ten years
Figure 20. Student number in universities and colleges in last ten years
Since students and newly entrants to the state university due to government policy, lot more students tend to study in universities, thus student enrollment trend in 2009-2010 education year experiences steep increase in private universities. Unless government strictly limits the number of schools this trend may increase in short run according to my estimation.
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Figure 21. Graduates dissemination in profession-wise as of 2009
Figure 22. Students’ dissemination in profession wise as of 2009
Thirty thousand students graduated in 2008-2009 which is 11.5% increase than in previous year. 44.4% is in social sciences, 5.4% is in scientific fields, 13.7% in education and training, 11.7% engineering, technique and technology, 9.5% in humanitarian and art, 7.2% is in health medical and social welfare, 2.4% in agriculture and 5.7% of graduates is in other fields of profession. See Figure21.
University and college students are falling into segments as 59.0 thousand (35.8%) is in social sciences, 11.5 thousand (7%) are in scientific fields, 28.1 thousand (17.1%) is in technique and technology, 22.0 thousand (13.3%) is in education, 16.1 thousand (9.8) health and medical sciences, 14.2 thousand 8.6% humanitarian related, 4.6 thousand 2.8% agricultural, 9.3 thousand (5.6%) is in other fields. See Figure22.
Statistics shows that teachers’ number increase during last years’ and government encouragement policy for teachers will provide Etugen University with competitive and competent labor market for both university and high school.
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31 Figure 23. Growth of teachers in education industry in last ten years
Figure 24. Average students number per teacher in primary and secondary schools, technical and vocational schools, university and colleges
Since number of students per teacher is maintaining at same level if not increasing, is a good signal for “Etugen” university. Increasing number of teachers in labor market is for the pros of the university since it indirectly affects competitiveness of teachers thus efficiency of university.
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Figure 25. Graduates vs. recruited graduates in last ten years
Government Policy
As of 2004, research shows that in terms of majors of graduates 59% belong to social and humanitarian sectors, such as lawyers, journalists, economists and financials, and 3% - to agricultural sector, while 23.3% of economic structure is constituted of agriculture, 50.1% - services and 26.6% - manufacturing.
The current status of training national professional human resources still does not fit to needs and demands of the labor market, economic structure and specifics. According to research of 2005, employment rate among graduates with higher education is 34.8%, according to “Study on household income, expenditure and livelihood, National Statistical Office” in 2004. And according to “Report on Study of Educational Sector” by Ministry of Education Culture and Science in 2005 34.2% of senior students at universities were interested not to work by their profession upon graduation and 25.5% of poor people were people with high education.
Implementation of strategies to increase participation and increase coordination by the state to relate operations of professional educational schools needs to support development of national production and technology, strengthen national economic capacity and complying with demands of the labor market will be the important part of
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the national strategy to ensure growth not only of education, but of the economy.
However, since current education system leads to large excess number of highly educated workforce that is indeed incompetent and unnecessary for market needs and qualifications, government has been raising up the barrier to run private universities and decide to apply a policy to reduce the numbers of universities that are offering similar and unnecessary services with that market is already exceedingly supplied, and instead government is encouraging the programs preparing professionals whose need is already in shortage and exponentially has been increasing in recent years, such as engineering in mining and related other fields, IT and other technology fields.
On Master Plan to Develop Education of Mongolia in 2006-2015, out of priority issues following statements are determined as crucial factors for Etugen University:
Cons
According to current government policy enrollment of students majoring in social and humanitarian science will be reduced from 18.5% to 10.0%; enrollment of students majoring in health and medical sciences will be reduced from 7.7% to 7.0%.
Percentage of students studying in private universities will be reduced by 6.7% and will reach 25.0% in total enrollment of universities and college.
Percentage of enrolled to universities among graduates with complete secondary education will be reduced by 11.0% and will reach 70.0%.
Percentage of graduates with complete secondary education to be enrolled in universities will be reduced by 31.0% and will reach 50.0% and percentage of other new recruits will be increased by 25.2% and will reach 50.0%. (See Table9. at appendix.)
Pros
Make strong investment to human resource development and resolve issues of professional methodological development, salaries, benefits and social issues in conformity with the priority status of the sector, which impact the social development, and with substance of methodological changes to occur in content of work of teachers of general educational schools.
Increase in enrollment of students majoring in teaching professions from 9.8% to
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10.0%.
General policy shows that nationwide importance on education system is increased and re-training will be offered by government for primary and secondary school teachers, will cause for human capital increase for private schools.
Expenses for re-training of teachers of higher education domestically will be increased by 8% annually.
Investment to higher education will be increased by 8% annually.
As a result, what we can see is that the government is simultaneously trying to de-escalate private universities in higher education since their exceeded actuality, as well as offering services that are considered as inferior.
There is another consideration would be, if the trend goes as what government planned, the university team must switch into different fields as engineering and technology, agricultural profession, or natural sciences where market demand is growing, besides that paying attention on increasing its competitiveness and competency in social fields.