成立Etugen教育機構之商業企畫書 - 政大學術集成

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(1)國立政治大學商學院國際經營管理英語碩士學位學程 International MBA Program College of Commerce National Chengchi University. 碩士論文治. 政. 大. 立Master’s Thesis. ‧ 國. 學 ‧. 成立Etugen教育機構之商業企畫書 y. Nat. n. al. er. io. sit. Business Expansion Plan for “Etugen” Education Institute. Ch. engchi. i Un. v. Student: Battur Bold Advisor: Professor Chester Ho. 中華民國九十九年七月 July 2010 .

(2) 成立Etugen教育機構之商業企畫書 Business Expansion Plan for “Etugen” Education Institute 研究生：. 巴特而. Student: Battur Bold. 指導教授：何小台. Advisor: Chester Ho . 國立政治大學 . 政治大. 商學院國際經營管理碩士學程 . 立. 碩士論文 . ‧. ‧ 國. 學 A Thesis. Nat. er. io. National Chengchi University. sit. y. Submitted to International MBA Program. n. a l fulfillment of the Requirements in partial iv Ch. for e thendegree g c hofi U. n. Master in Business Administration. 中華民國九十九年七月 July 2010 i .

(3) CONTENTS LIST OF FIGURES ..................................................................................................................................... iv LIST OF TABLES ....................................................................................................................................... v EXECUTIVE SUMMARY .......................................................................................................................... 1 INTRODUCTION ................................................................................................................................ 6 1.1. . WHY HUMAN DEVELOPMENT .............................................................................................. 7 . 1.2. . BRIEF OVERVIEW OF MONGOLIA .................................................................................... 9 . 1.2.1. . GENERAL INFORMATION............................................................................................... 9 . 1.2.2. . ECONOMY ........................................................................................................................ 10 . 1.2.3. . EDUCATION ..................................................................................................................... 14 . 1.3. . 1.3.1. 1.3.2. . ETUGEN INSTITUTION MILESTONES ....................................................................... 16 . 學. BUSINESS EXPANSION PLANS .................................................................................................... 17 2.1. . HULEG HIGH SCHOOL EXPANSION PLAN ........................................................................ 17 . ‧. PURPOSE ......................................................................................................................... 17 . 2.1.2 . BACKGROUND ............................................................................................................... 17 . 2.1.3. . HULEG SCHOOL INTRODUCTION ............................................................................. 18 . 2.1.4. . MARKET ANALYSIS ..................................................................................................... 18 . 2.1.5. . SWOT ................................................................................................................................ 22 . 2.2. . y. sit. al. iv n C MARKETING PLAN AND h eSTRATEGY ........................................................................ 23 i U h n c g EXPECTED OUTCOME .................................................................................................. 25 n. 2.1.7. . io. 2.1.6. . Nat. 2.1.1. . er. 2. . 政治大 MANAGEMENT TEAM .................................................................................................. 15 立. ETUGEN EDUCATION INSTITUTION ................................................................................. 15 . ‧ 國. 1. . ETUGEN UNIVERSITY EXPANSION PLAN ........................................................................ 25 . 2.2.1. . PURPOSE ......................................................................................................................... 25 . 2.2.2. . BACKGROUND ............................................................................................................... 26 . 2.2.3. . ETUGEN UNIVERSITY INTRODUCTION ................................................................... 26 . 2.2.4. . MARKET ANALYSIS ..................................................................................................... 27 . 2.2.5. . EXPANSION PLAN ......................................................................................................... 34 . 2.2.6. . SWOT ................................................................................................................................ 34 . 2.2.7. . MARKETING PLAN AND STRATEGY ........................................................................ 36 . 2.2.8. . STRATEGY ...................................................................................................................... 38 ii . .

(4) 2.2.9. 2.3. . EXPECTED OUTCOMES ................................................................................................ 40 . ET LLC CONSULTING COMPANY ....................................................................................... 40 . 2.3.1. . INTRODUCTION ............................................................................................................. 40 . 2.3.2. . BUSINESS MODEL ......................................................................................................... 43 . 2.3.3. . MARKET ANALYSIS ...................................................................................................... 44 . 2.3.4. . SWOT ................................................................................................................................ 48 . 2.3.5. . STRATEGY ...................................................................................................................... 49 . 2.3.6. . TECHNOLOGY AND ASSETS ....................................................................................... 51 . 2.3.7. . FINANCIAL PLAN .......................................................................................................... 52 . 2.3.8. . EXIT STRATEGY ............................................................................................................ 58 . 治政大 APPENDIX ................................................................................................................................................ 61 立 TABLE OF REFERENCES ....................................................................................................................... 67 學. . SUMMARY AND CONCLUSION ............................................................................................... 59 . ‧. ‧ 國. 3. . n. er. io. sit. y. Nat. al. Ch. engchi. i Un. v. iii .

(5) LIST OF FIGURES Figure 1. Missions of Huleg High School, Etugen University, and ET Consulting __________________ 3 Figure 2. Interrelationship between Huleg High School, Etugen University and ET Consulting Company __________________________________________________________________________ 4 Figure 3. The most problematic factors for doing business in Mongolia __________________________ 8 Figure 4. Mongolian competency illustrations in various measures vs. factor driven countries. ________ 8 Figure 5. Mongolian international trade turnover in 2007-2009 _______________________________ 11 . 政治大 Figure 7. Gold price in last 30 years _____________________________________________________ 13 立 Figure 8. World coal consumption ______________________________________________________ 13 Figure 6. Total sales and in subsectors on monthly basis as of 2009 ____________________________ 12 . ‧ 國. 學. Figure 9. Copper price in 2000-2010 ____________________________________________________ 13 Figure 10. Coal price in 2002-2008 _____________________________________________________ 13 . ‧. Figure 11. Population growth in last three years ___________________________________________ 19 Figure 12. Graduates from high schools, technical and vocational schools and universities and. Nat. sit. y. colleges in last three years ____________________________________________________________ 19 . er. io. Figure 13. Student numbers in universities and colleges in last ten years ________________________ 20 Figure 14. Primary and Secondary school students in dissemination of grades as of 2009 ___________ 21 . n. al. Ch. i Un. v. Figure 15. Students per teacher in primary and secondary schools, technical and vocational. engchi. schools, and university and colleges in last four years _______________________________________ 21 Figure 16. Population growth in last three years ___________________________________________ 27 Figure 17. Graduates in last 4 year ______________________________________________________ 27 Figure 18. Newly enrolled students to universities, colleges and vocational schools in last ten years _____________________________________________________________________________ 28 Figure 19. Numbers of universities and colleges in last ten years ______________________________ 29 Figure 20. Student number in universities and colleges in last ten years _________________________ 29 Figure 21. Graduates dissemination in ___________________________________________________ 30 Figure 22. Students’ dissemination in profession wise as of 2009 ______________________________ 30 Figure 23. Growth of teachers in education industry in last ten years ___________________________ 31 iv .

(6) Figure 24. Average students number per teacher in primary and secondary schools, technical and vocational schools, university and colleges _______________________________________________ 31 Figure 25. Graduates vs. recruited graduates in last ten years _________________________________ 32 Figure 26. Retained Earnings/Earnings __________________________________________________ 53 Figure 27. Four Year Pro Forma Revenue/Profit ___________________________________________ 55 Figure 28. Four Year Pro Forma Revenue/Net Income ______________________________________ 55 Figure 29. Huleg high school current pricing ______________________________________________ 61 Figure 30. Huleg high school short run pricing plan ________________________________________ 61 Figure 31. Huleg high school pricing versus quality plan ____________________________________ 61 Figure 32. Etugen institution __________________________________________________________ 66 . 政治大. Figure 33. Simulation game plan _______________________________________________________ 66 Figure 34. Etugen institution first building _______________________________________________ 66 . 立. Figure 35. Training room plan _________________________________________________________ 66 . ‧ 國. 學 ‧. LIST OF TABLES. y. Nat. sit. Table 1. Plan to introduce new extension lines to the university ________________________________ 38. al. er. io. Table 2. Marketing penetration plan for ET consulting _______________________________________ 46. n. Table 3. Four year pro forma Sales Revenue _______________________________________________ 54. Ch. i Un. v. Table 4. Four year pro forma Income Statement ____________________________________________ 56. engchi. Table 5. Four year pro forma Cash Flow __________________________________________________ 57 Table 6. Four year pro forma Balance Sheet _______________________________________________ 58 Table 7. Government control plan of higher education _______________________________________ 62 Table 8. Employment rate of Etugen university graduates ____________________________________ 63 Table 9. ET consulting target market penetration plan _______________________________________ 63 Table 10. Office and Training facilities list ________________________________________________ 64 Table 11. Four year pro forma Operating Expenses __________________________________________ 65. v .

(7) EXECUTIVE SUMMARY The paper is about Etugen education institution’s expansion plans in three services in different markets. First two expansion plans, to extend service line with high school and to extend accounting and economic school into competent business program, are dedicated for Etugen Institution’s management team as a guideline, whereas last ET Consulting company plan is for managers’ guidance and potential investors. The plans are to improve competitiveness, to adapt and to sustain compatibility of Etugen. 治政 policy on education development of Mongolia and opportunities 大 emerged due to expected 立 economic growth.. institution in this competitive market during the constrictions caused by government. ‧ 國. 學. The introduction part of the plan explains purpose, methodology and structuring of the paper, followed by importance of human development issues in current Mongolian needs. ‧. and demand; brief overview of Mongolia with its current economic situation and trends,. io. er. and milestones of Etugen Institution achievements.. sit. y. Nat. education industry backgrounds, an ending with brief introduction of management team. The Business Expansion plan consists of three business development plans.. al. n. iv n C Initial high school expansion plan h is in order of background information of industry, engchi U market analysis including government policy, SWOT, marketing plan and strategies with its expected outcome. This high school development plan is focused on its marketing plan and strategies to set a good foundation to grow and to improve its quality to provide the needed education services to the growing market. Etugen university extension plan is to develop accounting and economics program into mining and technology oriented business school and to develop into business graduate program. Moreover, to guide the university plan in the direction of becoming university that has medical technology programs which is consistent with government development plan towards technologies. Followed by SWOT, marketing plan, strategy and tactics, and 1 .

(8) expected outcomes. This plan is mainly focused on strategy and plan of attracting good quality candidates by improving its policy and strategy, so that in coming years the university competency will grow substantially which will help it to become a leading university in terms of medical technology and business fields amongst other private universities. ET Consulting company plan covers company introduction which includes its vision, mission and keys to success and details, followed by explanations of the services being offered, business models, market analysis, SWOT, technology and assets to be exploited, financial plans, strategies and expected outcomes.. 政治大. If we try to integrate all these ideas into illustration, it shows following figures.. 立. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i Un. v. 2 .

(9) 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi U. v ni. . Figure 1.Missions of Huleg High School, Etugen University, and ET Consulting. 3 .

(10) National University of Mongolia. Huleg High School . Junior high school students . National University of Science and Tech. Other Technology and Business Schools. High school graduates. Etugen University. Companies State Hospitals. Companies. 立. Big companies . ‧ 國. Foreign Companies . ‧. Small and start ups. ET Consulting. Private Hospitals. 學. Mid sized companies . 政治大. Customers‘  flow. . n. er. io. sit. y. Nat. al. Cooperation. i Un. v. Figure 2.Interrelationship between Huleg High School, Etugen University and ET Consulting Company. Ch. engchi. Huleg High School recruits junior high schools students and educate them with science oriented courses to be able to enter top technology and business schools in Mongolia and international universities, some participants may become potential candidates to Etugen University. In long run, these students are expected to be leaders in technology fields of Mongolia and their success will bring reputation to the high school. Etugen University recruits senior high school graduates, through educating and training them in its competitive business program and medics based technology schools, it prepares competitive workforce for Mongolian labor markets, especially for companies 4 .

(11) and hospitals. During these processes Etugen University will be working in cooperation with technology universities, state and private hospitals as well as Huleg high school in various activities such as students clubs and other joint events, and with ET consulting company to conduct its simulation services for own students with special pricing while supporting newly established company with its facilities and some other collateral services with privileged pricing. ET consulting is focused on different segments with various strategies in different sequences of its operational periods and it will cooperate with Etugen University for training its students in consistent with its goal of contributing Mongolian labor market, as. 政治大 Last, Summary and Conclusion part briefly explains expected and predicted results of 立 interrelation of these three combination plans, particularly explains the relationship of well as developing prospective customers in long run.. ‧ 國. 學. these institutions by means of output of an institution can be exploited as input of another institution of Etugen Institution as a whole. This part concludes with each institution’s. ‧. respective contributions in human assets development of Mongolia.. n. er. io. sit. y. Nat. al. Ch. engchi. i Un. v. 5 .

(12) 1. INTRODUCTION The paper demonstrates business expansion plan for “Etugen” education institution that provides education services in social and medical fields. After analyzing and assessing current situations in different aspects I prepared my expansion plan as in following purpose and methodology.. Purpose. Indirectly it will be a contribution to Mongolia through providing solution for. 治政大 term and long term business paper be supporting for Etugen education institution’s short 立 developments in different segments.. human resources by developing and training various age ranges of people, directly this. ‧ 國. 學. This Business Expansion Plan is dedicated for the advisory board members of Etugen institute, venture managers of the new consulting company and for potential angel. ‧. investors or financiers.. y. Nat. sit. Methodology. It is needed to be examined the current situation of already running. al. er. io. education institute business in different aspects and in measures. As such, I read and. n. analyzed as much as relevant materials and papers could possibly be reviewed, besides. Ch. i Un. v. that I interviewed some people in Taiwan, including Dr. Jan Juy Ling, Director of IMBA. engchi. at NCCU in Taiwan and Dr. Peter Kuo, founder and chairman of EIS Globe HR training and consulting company, and my own ideas have been added as value-add in this project planning.. Structuring. I divided my business expansion plan into three parts which will be focusing on expanding service lines with high school expansion plan, establishing business program by offering some business courses on existing courses, and a human resources consulting company under Etugen education institution. All analysis, assessments, plans and strategies, and expected results are made respectively in accordance with these three plans. 6 .

(13) 1.1.. WHY HUMAN DEVELOPMENT. In 2009, on his thesis, Munkhjargal Javkhlan wrote that Mongolia economy has been experiencing unprecedented economic growth rate for the last five years mostly because of significant amount of foreign direct investments directed toward its booming mineral resource exploration sector and the current high commodities prices. In result, six huge world class mineral reserves are explored. Many international non-government organizations (for example, The World Growth, World Bank and International Monetary Fund), scholars (for example, Robert, J Shapiro) and Mongolian government are urging the project to start its operation. Because they predict that Mongolian economy will take off, experiencing 30% GDP growth rate and creation of significant amount of job for the. 政治大. next two decades once the reserves undertakes extractions.. 立. He concluded with current assessment that if Mongolia can proceed its wealth. He. ‧ 國. 學. stressed that escaping ways from resources curses are developments of fiscal and monetary policy, economic diversification, natural resources funds, transparency,. Nat. y. ‧. accountability and public involvement, and direct distributions.. sit. At the same time when we scrutinize statistical assessments of Mongolia in competency,. al. er. io. Global competitiveness report 2009-2010 by World Economic Forum illustrates that. n. iv n C which is quite weak indication. Even h eworse, h i Ulast three years of same report, n g cwithin Mongolian competiveness rate has been descended. With number 117 out of 133 in 2009-. Mongolia has been ranked #117 in Global Competitiveness Index out of 133 countries. 2010, and number 100 out of 134 in year 2008–2009, while 101 out of 131 in 2007–2008. On the same report “the most problematic factors for doing business in Mongolia” are shown in following figure.. 7 .

(14) 立. 政治大. . Figure 3. The most problematic factors for doing business in Mongolia. ‧. ‧ 國. 學. Source: Global competitiveness report 2009-2010. n. er. io. sit. y. Nat. al. Ch. engchi. i Un. v. Figure 4. Mongolian competency illustrations in various measures vs. factor driven countries. Source: Global competitiveness report 2009-2010. Besides needs for infrastructure, all other factors are somehow related to human development factors. Because of policy makers are not qualified enough that they cannot 8 .

(15) adopt right structuring thus government bureaucracy is existing; entrepreneurs and businesses are facing problems in terms of access to financing to maintain stable operation, due to inappropriate financial sector policy that gives privileges to banking sector 1 solely which is inflexible and conducts high interest rates. Because of indecency in ethics and dissatisfactory compensation system, existence of corruption is viable in state organizations. Central bank is not operating independently because of deep interference from politics that carries various interests of certain people and group, causes instable and shortsighted monetary policy. Therefore I prioritized importance of human resources for further development of Mongolia and my interest area of further studies.. 政治大 resources for domestic market in international standard, particularly in a field of mining 立 related businesses as well as to increase awareness and influences on developing and Due to above reasons and in order to supply the rising demand of competent human. ‧ 國. 學. maintaining the ways to escape from resources curse, human resources is considered as one of the most important issues that Mongolia is facing nowadays.. BRIEF OVERVIEW OF MONGOLIA. y. Nat. GENERAL INFORMATION. io. sit. 1.2.1.. ‧. 1.2.. al. er. Mongolia is a landlocked country in East and Central Asia. It borders Russia to the north. n. iv n C U listed on number 236 in this hen populated nation with 1.75 km square per person g c h i and and the People's Republic of China to the south, east and west. It is world’s least densely. criterion. Mongolia is a land of temperature extremes. The Gobi desert in southern Mongolia can reach 40°C (104°F) in the summer and fall to a bone-chilling -40°C (-40°F) in winter. The capital Ulaanbaatar has an annual average temperature - day and night, summer and winter - of just -0.5°C (31°F) Precipitation is sparse in Mongolia, averaging only 378 mm (14.9 in) for the entire year at Ulaanbaatar city.. As of December 2009, population was 2,736,000 with density of 1.75 km square. Its                                                              1. Banking sector covers 95% of financial market in Mongolia - Source:National Statistical. Office 9 .

(16) gross domestic product-purchasing power parity (GDP - PPP) totaled $8.4 billion USD, with per capita of $3400 USD and GDP Nominal Total $5.243 billion and per capita $1,975 USD. Official language is Mongolian and territorial area is 1,564,115.75 km square. Semipresidential republic, presidential and parliamentary elections are being held in every 4 years. Prime minister is being appointed by the parliament and the cabinet is nominated by the prime minister in consultation with the president and must be approved by the State Great Khural which is Mongolian parliament.. According to Global Peace Index by Institute for Economic and Peace Mongolia ranked. 政治大 Index by Transparency. 80 out of 144, and 115 out of 182 in Human Development Index by UN Development International shows that 立 Mongolia is 120th from 180 countries, and in Global Competitiveness report by World. 學. ‧ 國. Program, Corruption Perception. Economic Forum Mongolia is in 117 out of 133.. ‧. Ulaanbaatar, the capital and largest city, is home to about 38% of the population as well as the biggest business hub of the country.. sit. y. Nat. io. er. 1.2.2. ECONOMY. Economic activity in Mongolia has traditionally been based on agriculture and the. n. al. Ch. i Un. v. breeding of livestock. Mongolia also has extensive mineral deposits: copper, coal,. engchi. molybdenum, tin, tungsten, and gold account for a large part of industrial production.. After the democratic revolution in 1989-1990, free market system have been introduced to Mongolia and The Democratic Union Coalition (DUC) government, 1996–2000, has embraced free-market economics, easing price controls, liberalizing domestic and international trade, and attempting to restructure the banking system and the energy sector. Major domestic privatization programs have been undertaken, as well as fostering of foreign investment through international tender of the oil distribution company, a leading cashmere wool company, and banks. Nowadays most important businesses are considered as mining and due to explorations of world class deposits of mainly coal and 10 .

(17) copper.. Most exported commodities are copper, apparel, livestock, animal products, cashmere, wool, hides, fluorspar, other nonferrous metals, whereas, most imported commodities are machinery and equipment, fuel, automobile, food products, industrial consumer goods, chemicals, building materials, sugar, tea.. Mongolia has foreign trade relations with 118 foreign countries and 2009 total trade turnover hit USD $4033.9 million, out of which USD $1902.6 million is export and USD $2131.3 million is import. In 2009, total trade turnover amount reduced with USD. 政治大 and import fell down with USD $1113.3 million, 34.3%. Trade balance indicates trade 立 deficit of USD $228.7 million in same year.. $1745.1 million which is 30.2%, in which export declined by USD $631.9 million, 24.9%. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i Un. v. Figure 5. Mongolian international trade turnover in 2007-2009 Source: National Statistical Office Report 2009. Mongolia is becoming much dependent from mining industry, lately. Above graphic is the indication of Mongolian export, import and trade balance caused by the commodities price fall followed 2009 world financial crisis and economic downturn.. 11 .

(18) 政治大 Source: National Statistical Office Report 2009 立. Figure 6. Total sales and in subsectors on monthly basis as of 2009. ‧ 國. 學. 2010 January, Dale Choi, on his professional blog, wrote that “According to National Statistical Office of Mongolia, even with 68% Windfall Profit Tax (WPT) on gold in. ‧. 2009 Mongolia exported 11.4 tons of gold in processed and unprocessed form worth 326 million USD constituting 18.4% of exports. Prominent economist D.Jargalsaikhan. Nat. sit. y. estimates that due to WPT on gold about 20 tons of gold is produced and exported. er. io. illegally. WPT on gold will be invalidated starting January 1, 2011”. This will positively effect for economy in 2010 years. Moreover, sources predict to be more positive from. n. al. Ch. i Un. v. start of 2010. For instance, on its 2009 May report, the economist intelligence unit of. engchi. Columbia international affairs online forecasted that Mongolian economic growth as “Given the continued deterioration in the external and domestic environment, combined with tighter fiscal policy, we have revised down our forecast for real GDP growth this year, to 2.5%. Growth will pick up in 2010 as commodity prices begin to recover. The upturn could be reasonably strong, provided that the government can resolve outstanding mining investment deals, allowing the sector to benefit from strong foreign direct investment (FDI) inflows. However, the recent deterioration in the economy has highlighted the problems caused by Mongolia's narrow tax and export base (it is dominated by copper and gold), which leaves export earnings and government revenue exposed to fluctuations in global prices for commodities.” 12 .

(19) In nutshell, the economy is expected to be better due to adoption of Invalidation law of windfall profit tax on gold, as well as increase in world commodities price, especially in metals starting from 2010.. Source: http://www.infomine.com. 政治大. 立. Source: http://goldprice.org . 學. ‧ 國. Figure 7. Gold price in last 30 years Figure 10. Coal price in 2002-2008 Source: McCloskey Coal Price Index; “The. ‧. Renaissance & the Economics of Steam Coal”. n. er. io. sit. y. Nat. al. Ch. Figure 8. World coal consumption. engchi. i Un. v. Source: www.freecharts.com. Figure 9. Copper price in 2000-2010 13 .

(20) 1.2.3.. EDUCATION. . In General Education in Mongolia follows the kindergarten, twelve years of primary and secondary school, and university. After a decline in enrollment ratios during the transition to a market economy in the 1990, school attendance is now once more near-universal: primary school attendance rate is estimated at 97%, and adult literacy at 98%. Mongolia's school system, previously based on the ten-year school, has been placed with twelve years of education. The official school entrance age has lowered to six starting from 2008.. 政治大. Compulsory education is eight years and government policy and plan is in direction of encouraging to continue next level education or at least to maintain at this level by. 立. decreasing the drop out numbers.. ‧ 國. 學. Secondary Education. ‧. Secondary education is covering sixth to twelfth grades. Usually secondary schools consist of public schools, however in Ulaanbaatar and cities like Darkhan, Erdenet there. Nat. sit. y. are private schools are being established though of mixed quality. In recent years. io. er. Ulaanbaatar also has had some foreign-language themed public schools, for example Russian, Chinese, English and private and public high schools specializing on scientific. n. al. Ch. i Un. v. programs besides the emphasis on language. Lately, numbers of new private high schools. engchi. are increasing in numbers as market segmentations are increasing due to social class disparity that is caused by system changes started in 1990s. Overall, government policy is on a side to support the increasing number of private primary and secondary schools.. Higher Education It used to be only public universities in main industry fields and number of university students, education services are provided and controlled by strict state policy. Even today, after the system changes in 1990s and following 20 years where private education services are allowed to be initiated, those public universities are considered as prestigious 14 .

(21) and differentiating themselves with their student size, service quality and etc. Establishments of these private institutions’ existence caused vicious education system starting from 2000. Later, government policy rectified its wrong decision that was adopted in early 2000 which caused large excess number of highly educated workforce that is indeed incompetent and unnecessary for market needs and qualifications. Government has been tightening up qualifications and setting high requirements to run private universities. Since market demand is declining naturally, causing for bankruptcies and withdrawals of the weakest educational institutions. Quality of education in the privately owned institutions is still perceived as inferior. . 政治大 Literally, a vocational school (or trade school or career school), providing vocational 立 education, is a school in which students are taught the skills needed to perform a Technical and Vocational Education. ‧ 國. 學. particular job. It applies similarly in Mongolia and these technical and vocational schools are offering services for students who graduated from secondary education and wanted to. ‧. be specialized on particular services. Since government policy is supporting these types of technical and vocational schools, moreover, finding job opportunities in labor market. y. Nat. sit. is considerably higher in technical and vocational school graduates than major mass. al. er. io. graduates possess higher education diploma, number of applicants to these schools are. v. n. increasing recently, this phenomena will be discussed more on market analysis section of high education.. 1.3. 1.3.1.. Ch. engchi. i Un. ETUGEN EDUCATION INSTITUTION MANAGEMENT TEAM. Nyamzagd S. Ph.D. Professor, Rector of Etugen university, former Parliamentarian and former Vice Minister of Planning Commission, former Rector of the State University of Trade and Manufacturing (currently Institute of Commerce and Business) in Mongolia. He has enormous experiences in education as well as management in fields of business and economics. Batsereedene B. Sc. D, clinical professor, Head of Advisory Board of Etugen institution, 15 .

(22) former Minister of Health, former Director of 3rd State Clinical Hospital. She is very reputable by her management measures when she served as president of 3rd State Clinical Hospital. Oyuntsetseg B.. Dean of student affairs.. Batrinchin P.. Member of advisory board, and specialist who is in charge of contents, evaluation standards and policy of universities and colleges at Ministry of Education Culture and Science.. Mishigdorj D.. Member of advisory board. State fund specialist who is in charge of supporting public servants’ children issues.. Erdemsaikhan N.. BS in finance. Vice director of Financial Department of Etugen. 政治大 establishment of the institution. 立 Present student council presidents in respective education years.. institution, is in charge of all finance related issues since ever the. ‧ 國. 學. 1.3.2.. ETUGEN INSTITUTION MILESTONES. ‧. 2001 Etugen College was established.. 2002 Started operating with 2 teachers and 36 students in accounting and aftercare. Nat. sit. y. treatment courses.. io. er. 2003 Established morphology and chemistry cabinet and pharmacist courses. 2004 Nursery full time and evening classes are introduced and at the same year. n. al. Ch. i Un. v. aftercare treatment class is being developed into physicist class.. engchi. 2005 It reinforced services with most used software “interactive” in Mongolia for business accounting. 2006 Tourism economy and management course started offering, first graduation in accounting and nursery, and signed agreement of cooperation with Japanese social welfare corporation. 2007 Accredited by Ministry of Education, Etugen college expanded into university and formed academic council consist of seven highly educated members in education, launched courses for bio-medical fields, signed cooperation agreement with Jeonju university in Korea as well as mounted full facilities of internet connection to computer laboratory and teachers’ room. 16 .

(23) 2008 Offered new classes on food production and management, tax accounting, and formed plantation for medicinal herbs. Masters program in medical field has started. Number of university students reached 1200. 2009 New school building and dormitory building constructed and put into exploitation.. Today, 1576 students are studying at Etugen in fields such as physicist, pharmacist, biomedical in medicals, accounting, tax accounting and supervision, economics and management on tourism, food production and service management and computer software professions in social fields.. 政治大 and 11th grade of the school, respectively. Program is concentrated more on students 立 who have interests in science for their further studies.. Huleg high school was recently established in 2009 and recruited 12, 15 students in 10th. ‧. ‧ 國. 學. 2. BUSINESS EXPANSION PLANS. sit. n. al. er. PURPOSE. y. HULEG HIGH SCHOOL EXPANSION PLAN. io. 2.1.1.. Nat. 2.1.. i Un. v. The expansion plan that I am offering to Huleg high school will be dedicated for mostly. Ch. engchi. on its marketing plan, operating direction and strategy, in order to settle and to develop for some extensions and reinforce its position in the market through cost saving strategy.. 2.1.2. BACKGROUND. Right after whole country system changes in 1990s, Mongolian massive compulsory secondary education system is still considered as in transition. Although recently our system upgraded into 12 years of primary and secondary education system as internationally agreed, certain time is needed to achieve a standard, so called western system; moreover, it will take longer time for majority of primary and secondary schools’ managements those are still conducted by Ministry of Education, Culture and Science to 17 .

(24) be managed as real well developed schools. As such, besides that weak economical factors, majority of schools are cheap so that the teachers, facilities and services being offered are inferior. Schools are quite different in terms of quality, students, price, and terrain. Recently new initiatives of high school business are being emerged and creating their segmentations through unique strategies such as teaching arts, languages and/or natural sciences or combinations of these subjects. Huleg is one of the schools that try to optimize this opportunity and contribute to the current education system in transition, as combination of scientific and language school.. 2.1.3.. HULEG SCHOOL INTRODUCTION. 政治大. The high school was founded in 2009. The same year 27 students registered in 10, 11th grades. High school is located at the same building and of the university and program. 立. content in short run is only focused on scientific courses such as mathematics, chemistry,. ‧ 國. 學. biology since the mission of the high school is to prepare students who qualify the requirements of natural studies based programs in universities. According to school plan,. ‧. it is aiming at offering language programs in couple of years, once it already stood stable in its current initiatives, besides that it will be unavoidable due to market trend and. sit. y. Nat. competition.. a. n. 2.1.4.. io. board members.. l C MARKET ANALYSIS. Target Market. hengchi. er. In terms of management, university and high school will exist from the same advisory. i Un. v. There is a huge gap between state secondary schools and private secondary schools. Our target market will be somewhere in this gap, focused on students who are interested in science and planning their future in scientific fields, as well as we offer to parents whose children are good at scientific courses and can afford good quality education package for their children in decent price. This segment of the population generate the majority of Ulaanbaatar citizens whose family income range is in between 500USD to 1000USD in a month with family members of average 4-5 such as civil servants, small, medium sized business owners, lower level employees in private companies who cannot afford to send 18 .

(25) their kids in expensive private high schools with pricing of USD 2500 and more on yearly basis. Background. 立. 政治大. ‧ 國. 學. Figure 11. Population growth in last three years. ‧. Figure 12. Graduates from high schools, technical and vocational schools and universities and colleges in last three years. al. y er. io. sit. Nat. . n. Population growth looks promising since 1.98% increase than in start of previous year,. Ch. i Un. v. moreover, this growth is highest amongst last years since 1990, reached 19.4 in each. engchi. 1000 people in 2009. Consistent with economic uptrend this number can be predicted to be increasing in coming years. Yet, we cannot ignore average numbers of children in a family is reducing.. 19 .

(26) The graduates’ numbers in primary and secondary school is reducing. In 2009-2010 education year average number of primary and secondary schools decreased with 7 (0.9%) and number of students who are studying in these schools decreased with 10000 (1.9%). While, out of total 522.1 (2009) thousand students, 178.8 thousand are in 7-9 grade, and 69.4 thousand are in 10-12 grade. Yet, number of parents investing in their children’s education is growing, considering that number of applicants to both public and private universities and colleges is not declining despite government policy which is trying to deescalate the increasing trend of private universities. Thus private high school business can be successful if schools differentiate their students through qualified education services, to reach higher education opportunities. As such we can still consider that market is in growing trend.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. i Un. v. Figure 13. Student numbers in universities and colleges in last ten years. engchi. Consistent with growing trend of applications to universities and government policy which encourages increase in the number of scientific field search students, Huleg high school is in advantageous position with its program of its scientific concentration. Below graph shows us 7-9th grade segment is greater than 10th and 11th grade which shows high school demand will be stable if not increasing in coming years. In 2009-2010 education year, out of all students 274.0 thousand in 1-5th grade, 178.7 thousand in 7-9th grade, and 69.4 thousand in 10-12th grade.. 20 .

(27) Figure 14. Primary and Secondary school students in dissemination of grades as of 2009. . 立. 政治大. ‧. ‧ 國. 學 er. io. sit. y. Nat. Figure 15. Students per teacher in primary and secondary schools, technical and vocational schools, and university and colleges in last four years. n. al. Ch. engchi. i Un. v. By reviewing master plan to develop education of Mongolia 2006-2015, below factors are known as pros and cons to our expansion plan.. Cons Government encourages private high schools so competition will increase. Number of students in secondary education may not be as high as in next five years in long run which means as overall market is shrinking. Pros Student and family numbers interested in private schools will remain constant if not 21 .

(28) increasing. Government policy which encouraging private schools may have positive effects in intellectual and physical resources on Huleg School. Government pays attention on quantity and quality of teachers thus labor market will be indirectly more competitive and market efficiency is expected to increase.. 2.1.5.. SWOT. Strength Location. The school locates at “A” zone in Ulaanbaatar city and school building is in utmost 10 minutes walking distance to the all buildings and facilities of National. 政治大 and the State College of Art and Music, as well as the biggest swimming pool. We 立. University of Mongolia, major complex of University of Science and Technology,. can take the opportunity to offer bundled services. Bundling will be triple win. ‧ 國. 學. strategy for these institutions student and high school as well.. Innovative spirit – Offering cram school, mentoring and tutoring program, and some. ‧. students clubs those are not existing in Mongolian schools.. y. Nat. Strong management team - Experience in management of higher education and. n. al. er. io. Weakness. sit. management in medical fields.. Ch. Less experience in high school management.. engchi. i Un. v. Not offering language classes in short run may cause not to attract good quality students. Less resource base at current stage while needed more investment for marketing expenditures. Opportunities Government’s growing interest for private high schools, public awareness growth of education significance. Labor market efficiency in education industry is increasing. Take advantage of university students who are cheap, yet competent workforce. Encouraging government policy. 22 .

(29) Threats Price competition can be expected by some new competitors. Transplanting our business model by competitors. ‐ Attract students with more salary ‐ Deal with our partner institutions and business entities. Try to offer new services as same as we offered already. ‐ Language schools may start offering scientific programs. Average numbers of children in a family is reducing.. 2.1.6.. MARKETING PLAN AND STRATEGY. 政治大. For a high school started with 27 students and high school plan for first 2 years will be 0.25% of the market share which means need to reach around 170 students (calculated on. 立. a basis of 2009-2010). Huleg high school is aiming at possessing good reputation for sake. ‧. ‧ 國. reputation.. 學. of its next round enrollment, watching slow but solid strategy and plan to implement high. Recruit good quality teachers but in less numbers, including university teachers. y. sit. University.. Nat. specialized on sciences. Offer some laboratory courses in cooperation with Etugen. al. er. io. Use university students as mentors and tutors2 – Initially the high school recruits. n. iv n C h eandn g scientific classes, music, painting so forth c h i toUthe high school students. School. university students who are qualified and having interest in mentoring and tutoring. teachers firstly train university students how to deal with mentoring and tutoring with high school students. At the end it will be combination of triple win strategy. The school can cut costs by offering tutors than high paid professional teachers and by doing so we can prepare prospective teachers at the same time. Students will have jobs and financial support. Increase in efficiency of the high school students’ success.                                                              2. School building destination is 3 minutes walking distance from University of Science and Technology, and the most 10 minutes walking distance from school of mathematics, biology, chemistry of National University of Mongolia. 23 .

(30) The cram school. Since there is almost no permanent cram school in Mongolia, the high school will try to take first mover advantage. Teachers and tutors will be offering special courses for preparation of university entrance examinations. And our own students will benefit through discount to attend these courses. In long run, preferably from middle school, the school plans to offer language courses including, English as main course and either Chinese, Korean, Japanese or other languages depending on a marketing research which will be undertaken by management. Make binding contracts with the swimming pool administration, teachers or tutoring students that they won’t offer same courses or arrange similar activities being. 政治大 Take marketing survey from students and parents regarding courses to be offered in 立 what direction and dimension besides scientific courses. “Customers are kings”. conducted at the Huleg high school, to the competing high schools and institutions.. ‧ 國. 學. In order to increase applications through raising awareness the school plans to offer Student clubs –Dance, music, painting, swimming and etc. Students must have. ‧. enjoyable environment and life. These clubs can be offered to university students and senior high school students at the same time, considering that having same. y. Nat. al. er. io. price policy.. sit. interest and similar age ranges. High school students can benefit with discounted. v. n. Direct marketing and word of mouth are important tools in increasing awareness and. Ch. to attract good quality students in recruitments.. engchi. i Un. Pricing - Current pricing is around USD $XXX a year. Together with offering English courses, considering extra costs of classes and services being offered, price may rise (estimated to double), yet, still be observing our target market income situation. (See Figure 24, 25,26. in Appendix page1) Discounts - Merit and top student awardees, prodigies or talented students in art or sports or other considerable awards holders can have discounts on pricing and will be granted with various scholarships. Siblings’ discounts, students who are belonging in poor classification, but with good achievements in performance may benefit from discounts in pricing. High school students will be encouraged to attend the university and high school clubs and cram school through discounted pricing 24 .

(31) policy. Stationery and others – High school generate not only stationeries but t-shirts, cups, and etc. things that can increase the awareness. Joint events – With certain extent within our capability organize and host events like permanent lectures by well known people, debaters and so forth, in cooperation with respective Ministry, NGOs or high schools. And mixed marketing strategy will be applied.. 2.1.7.. EXPECTED OUTCOME. Once the high school is settled down firmly, service quality better off by fostering. 政治大. initiatives such as teachers from university, cram school, mentoring and tutoring, university/school clubs and other services, school starts to offer language program in next. 立. stage which will attract even more students, academic quality wise the high school. ‧ 國. 學. prepares the foundation of a way to university as well as to international opportunities.. ‧. With the marketing plan and strategy executions, the awareness increase and the high school may expect better quality applicants in coming years which allows the high school. Nat. er. io. sit. y. to achieve net round goals as private high school.. Directly the high school prepares potential candidates of Etugen University besides. n. al. Ch. i Un. providing qualified candidates to the national universities.. 2.2. 2.2.1.. engchi. v. ETUGEN UNIVERSITY EXPANSION PLAN PURPOSE. The expansion plan for Etugen University is focused on improving its competency and competitiveness of the university in the phase of fierce market competition and strict government policy on private universities, especially in social fields. I have included well illustrated market analysis of Mongolian higher education industry, followed by my plan expansion plan description and management which is dedicated for Etugen management to consider in development plan in short term.. 25 .

(32) 2.2.2.. BACKGROUND. 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. 政治大 expected economic boom is giving an another opportunity. 立. labor force in business, financial, mining and engineering demand is increasing due to. ETUGEN UNIVERSITY INTRODUCTION. ‧ 國. 學. 2.2.3.. 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. y. Nat. io. sit. Mongolian education and development policy.. n. al. er. Vision - We generate an education service that produces elites with core values of humanism and high skills.. Ch. engchi. i Un. v. 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. 26 .

(33) 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. 政治大. the business risks, foster financial soundness and to provide collateral and applicable internship and practice opportunities to its students and alumni.. 立. MARKET ANALYSIS. 學. ‧ 國. 2.2.4.. 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.. n. er. io. sit. y. Nat. al. Ch. engchi. i Un. v. Figure 17. Graduates in last 4 year Figure 16. Population growth in last three years. 27 .

(34) 政治大. Figure 18. Newly enrolled students to universities, colleges and vocational schools in last ten years. 立. ‧ 國. 學. 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.. ‧ y. Nat. Same year, number of students who entered technical and vocational schools is increased. io. sit. with 6.8 thousand which is 17.9% higher than in previous year. In the same year 29.2%. al. er. of secondary school graduates entered technical and vocational school, it shows that. n. iv n C number ish e expected to ibeUequaled ngch. demand for this type of school has been increased and will be following the same track in foreseeable future. This. 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.. 28 .

(35) Figure 19. Numbers of universities and colleges in last ten years. 立. 政治大. ‧. ‧ 國. 學 y. Nat. sit. Figure 20. Student number in universities and colleges in last ten years. al. er. io. Since students and newly entrants to the state university due to government policy, lot. v. n. more students tend to study in universities, thus student enrollment trend in 2009-2010. Ch. i Un. education year experiences steep increase in private universities. Unless government. engchi. strictly limits the number of schools this trend may increase in short run according to my estimation.. 29 .

(36) Figure 22. Students’ dissemination in. 政治大profession wise as of 2009. Figure 21. Graduates dissemination in profession-wise as of 2009. 立. Thirty thousand students graduated in 2008-2009 which is 11.5% increase than in. ‧ 國. 學. 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. sit. y. Nat. and 5.7% of graduates is in other fields of profession. See Figure21.. al. er. io. University and college students are falling into segments as 59.0 thousand (35.8%) is in. n. iv n C technique and technology, 22.0 thousand is in education, 16.1 thousand (9.8) h e n(13.3%) gchi U. social sciences, 11.5 thousand (7%) are in scientific fields, 28.1 thousand (17.1%) is in. 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.. 30 .

(37) Figure 23. Growth of teachers in education industry in last ten years. 立. 政治大. ‧. ‧ 國. 學 sit. y. Nat. n. al. er. io. Figure 24. Average students number per teacher in primary and secondary schools, technical and vocational schools, university and colleges. Ch. i Un. v. Since number of students per teacher is maintaining at same level if not increasing, is a. engchi. 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.. 31 .

(38) 政治大. Figure 25. Graduates vs. recruited graduates in last ten years. 立. Government Policy. As of 2004, research shows that in terms of majors of graduates 59% belong to social and. ‧ 國. 學. 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.. y. Nat. sit. The current status of training national professional human resources still does not fit to. n. al. er. io. needs and demands of the labor market, economic structure and specifics. According to. ni income, expenditure U engchi. v. research of 2005, employment rate among graduates with higher education is 34.8%, according to “Study on. Ch household. 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 32 .

(39) 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. . 政治大 following statements are determined as crucial factors for Etugen University: 立 Cons. On Master Plan to Develop Education of Mongolia in 2006-2015, out of priority issues. ‧ 國. 學. 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. y. Nat. sit. will reach 25.0% in total enrollment of universities and college.. al. er. io. Percentage of enrolled to universities among graduates with complete secondary. v. n. education will be reduced by 11.0% and will reach 70.0%.. Ch. i Un. Percentage of graduates with complete secondary education to be enrolled in. engchi. 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 33 .

(40) 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 deescalate private universities in higher education since their exceeded actuality, as well as. 政治大 There is another consideration would be, if the trend goes as what government planned, 立 the university team must switch into different fields as engineering and technology, offering services that are considered as inferior.. ‧ 國. 學. agricultural profession, or natural sciences where market demand is growing, besides that paying attention on increasing its competitiveness and competency in social fields.. EXPANSION PLAN. Nat. y. ‧. 2.2.5.. io. sit. In order to enhance the competency and competitiveness, expansion plan directs to. n. al. er. extend university service line with business courses which will be leveraged by already. iv n C fieldshbesides i U research e n g that c h conduct. existing economical and accounting programs. Specifically encouraging entrepreneurship and mining related business. on bio and nano. technologies on basis of well developed medics, for further development.. 2.2.6.. SWOT. Strength Location - Close to city center, other biggest state universities and student campuses. Innovative spirit – University has been successful for its development and expansion since its establishment. Culture that empowers teachers and students for initiatives and self improvements. Good management team with experience and high quality teaching crew with team 34 .

(41) spirit. Reputation of rector and academy council members. Saying so, school is in cooperation with State 1st and 3rd hospitals and other organizations, provides internship opportunities for their students. School building and facility is new, having laboratory, plantations and other facilities. Employment rate of graduation is average 88% in 2006-2010 (See Table 10. at Appendix) Weakness. 政治大. Equipments are outdating, needed renewal.. Fund for academic and other educational materials is insufficient, books and other. 立. printouts are getting older, updates needed.. ‧ 國. 學. Current students’ living standard is relatively lower in terms of purchasing power. Engineering equipment in 1st block is quite old. Massive construction and. ‧. operational maintenance is needed.. Lack of human resources in different field of studies thus hard to switch, or to offer. sit. y. Nat. service extension.. io. Opportunity. n. al. er. University pricing policy is weak, hard to attract good teachers.. Ch. i Un. v. Domestic demand in competent human force in some special professions is. engchi. increasing in labor market, those are offered by Etugen University. Economic development and investment needs specialized workforce thus domestic and international investment for education in so called new development fields. In medical field government encourages medical universities and colleges offers medical education to increase numbers of doctors in rural areas. Government is taking measures in developing technology fields and expected to encourage and to support all universities are involved in technology due to policy to generate science park in Mongolia. Threats 35 .

(42) Universities and colleges offer similar services and foreign institutions may increase in numbers. Newly entrants’ education level difference may cause service quality to decline. Pricing position is not enough to retain the highly skilled and competent teachers as full time teachers.. 2.2.7.. MARKETING PLAN AND STRATEGY. Initially university social program shall offer business program on basis of its good economics and accounting program. It is going to offer elective new courses that encourages and equip its students for business environment. Undergraduate business program. 政治大. University shall offer courses in following dimensions. Depending on self assessment on. 立. graduates and market needs (interview and survey leading and mid-sized companies,. ‧ 國. 學. entrepreneurs, government organizations and NGOs involved in encouraging business) some of these courses can be offered as required courses in their program.. ‧. Management. Taking into consideration that students are quite passive/not being self. y. Nat. confident in innovation and initiation is being observed which directly reflects to. sit. business success rate, the university shall offer leadership courses to its students for. al. er. io. future career developments. And offer other complex courses like project. n. iv n C management which will help students be competent in business environment. h e nto g chi U. management, strategic management, operational management and human resources. It is suggested some entrepreneurship and leadership courses which include case studies in different aspects and phases of ventures, leadership and management, business ethics and its direct effects on a society through business entities. Law. Considering that Mongolia already started receiving investments in mineral extractions projects as well as big amount of investment is expected in the field, however together with this, big arguments turning around in Mongolia concerning environmental issues, disputes in contracts in government with mining giants, to medium and small sized companies, and conflicts between local people at mining 36 .

(43) sites, and unavoidably, returns and exploitations, shares and smuggles and etc. Moreover, since university plans to play important role in next trend of development in Mongolian biomedical, biotechnology and nanotechnology developments, it is necessary to introduce intellectual protection program in its program. As such, following courses should be offered in business school Environmental law, Contract law, Taxation law, Intellectual property law plus business law courses. Finance. From start-up, early ages investments to public offerings. Considering that government gives significance in capital market development, the university shall start offer courses that show ways to raise fund in capital markets and other investors. 政治大. like venture capitalists and angel investors. These courses must help graduates to get insights of “How to make business plans for potential investors both domestically and. 立. internationally”. Since corporate governance is important topic in fund raising, the. ‧ 國. 學. course should be included. Furthermore, propose advanced financial and accounting courses especially on mining accounting.. ‧. University shall start looking opportunities and conduct marketing research in mining engineering, biotechnology, nanotechnology fields in cooperation with the technology. y. Nat. sit. universities such as Faculty of Biology at National University of Mongolia at University. n. al. er. io. of Technology and Science.. i Un. v. Considering the fact foreign invested companies increasing in Mongolia, in line with. Ch. engchi. their interest and demand, the university shall start offering English courses in business program in order to bring closer its education standard into international standard. At initial stage even if it is hard to conduct fully in English, the university should offer well known business cases such as Harvard business cases, Ivey cases and others. It can gradually increase the capability. Graduate business program On the basis of business program in undergraduate program university shall plan to offer graduate business program (MBA) starting from 2011 using its solid background on accounting and management enhancements done to the undergraduate program. Try to 37 .

(44) register around 20-30 students in first year, reach this number to around 60-80 in next year splitting into two classes. And enhance itself with master’s program in biomedical field from 2012 and increase its other programs from coming years such as masters in biotechnology and nanotechnology in medical fields. 2011 2012 2013 2014 2015 Undergraduate Business Elective financial, management, law courses. Program Offer business course in English Graduate Marketing Launch MBA Domestic Business research program Accreditation Program Biotechnology Domestic Undergraduate Research courses and Nanotechnology Accreditation Medical class Masters Masters Graduate Masters program Research Research program program Medical Biotechnology Biomedical nanotechnology. 立. 政治大. ‧. ‧ 國. 學. y. Nat. al. n. Strategy. er. STRATEGY. io. 2.2.8.. sit. Table 1. Plan to introduce new extension lines to the university. Ch Differentiation and innovation.. engchi. i Un. v. Providing top quality - Recruiting good instructors and lecturers would work as visiting professors who specialized and experienced in business projects and cases, and professors who is in different technology fields, who preferably having both international and domestic experiences. Constant renovation and enhancements - Generate fund of necessary books, cases and other equipments with certain extent and accomplish gradual enhancements on timely basis. Be Attractive - Student clubs –Professional clubs like entrepreneurial club, marketing club, financial and corporate governance club which discuss most 38 .

(45) challenging issues in the industry and solutions besides that cheerleading and dance club, music, painting and etc. for students to enjoy their student life. Strategic Alliance - Cooperate with government for subsidy for the medical and technological developments. Good start up with big business entity for business program and with one of the main hospitals for biomedical technology fields for joint ventures. Marketing Strategy Advertising – Direct marketing through television, newspaper and radio, email marketing especially during times of graduation and enrollment period. Word of mouth is an important tool in increasing awareness and to attract good. 政治大 Website and internet - www.etugen.mn is launched. The web provides information 立 of university and contains necessary information and guidance to current students. quality students in recruitments.. ‧ 國. 學. Permanently use open source internet tools such as Facebook, Twitter, Youtube and other sources to attract customers and increase the awareness. Using search engines. ‧. is not in short term plan and strategy. Development and sophistication of website is needed, as long as giving importance on technology development.. y. Nat. sit. Develop more activities such as forum, video classes, conference and similar others. al. er. io. to attract prospective customers and to improve the quality of applicants.. v. n. Stationery and others – Not limited to stationery but t-shirts, cups, and etc. things. Ch. i Un. that can increase the awareness, attract new customers and anchor the brand image in customers mind.. engchi. Joint events. At certain extent within our capability, organize and host events like permanent lectures by well known people, debaters’ discussion and so forth, in cooperation with respective ministry, NGOs. Publishing researches conducted by teachers and students on business, scientific papers. And mixed marketing strategy will be applied. Pricing Pricing specially considered for poor students at this point. However, since the 39 .