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Module Name: WEC-MBA-08-0106 : CISM Module Number: 08 Assignment Title: Contemporary Issues in Strategic Marketing Submission Due Date: 28 February 2010 Students Electronic Signature: Ratha a/p Letchimanan Word Count : 4519
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EXECUTIVE SUMMARY
Inline with the governments objective, College Top World Sdn Bhd emerged as an ultimate education provider in the area of diploma in Production and Inventory Management. The college is location in Klang and is currently targeting on the working adults from manufacturing industries. According to MOHE statistics, the number of intake for the overall diploma program has kept increasing since the year 2002. Therefore its expected that, there will be about 20% increase in the intake of the overall diploma programs from various fields and categories. This program is very unique and among the list of 11 colleges in Klang, only 3 are offering Executive Programs in which none of them are focusing on the Production and Inventory Management. Therefore based on the Porters Five Force Analysis, its proven that, the Competitive Rivalary is low as discussed in detail in Chapter 3. STEEP Analysis was conducted and it clearly supports the intention of the College to support Environmental Friendly activity by going paperless education as well as the other areas which are promising. SWOT analysis is conducted as the follow-up activity. Some of the opportunities that they could be looking at is like offering hostel and transportation services for those working adults from other states. Apart from that, the College still needs a lot of publicity and going towards ISO9001 education could further help to advertise the college. The objective of the college is to increase the students intake by 10% in the following year while maintaining the administration staffs. Apart from that, theres also activity to reduce the marketing expenditure by 20% by the 3rd year of operation. Based on the Product Strategy, its using Product Development as its giving a new product to the existing market with a Premium Pricing since the program comes with a competitive pricing with a reasonable duration with extra bonus program. The action plans are carefully studied and designed to meet the objective and the success of the college. A net profit margin of 26.93% is expected at the end of 2year of operation. Necessary controls and contingency plans has also been carefully studied and designed in case theres problem with the initial arrangements.
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Table of Contents
EXECUTIVE SUMMARY ...............................................................................................................................2 TABLE OF CONTENTS .................................................................................................................................3 1. 2.
2.1. 2.2. 2.3. 2.4.
3.
3.1. Market Summary .......................................................................................................................................... 10 3.1.1. No of Universities / Colleges providing Executive Program ....................................................................... 10 3.2. 3.3. Market Trend / Size ...................................................................................................................................... 11 Competitive Situation ................................................................................................................................... 12
3.4. Porters Five Force Analysis .......................................................................................................................... 16 3.4.1. Threat of New Entry ................................................................................................................................... 16 3.4.2. Buyer Power ............................................................................................................................................... 17 3.4.3. Threat of Substitution ................................................................................................................................. 18 3.4.4. Supplier Power............................................................................................................................................ 19 3.4.5. Competitive Rivalry..................................................................................................................................... 19 3.5. 3.6. Macro environmental Situation .................................................................................................................... 20 Potential Market Size ................................................................................................................................... 20
4. 5.
5.1. 5.2.
6.
OBJECTIVES ........................................................................................................................................ 25
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7.
7.1.
7.2. Target Markets ............................................................................................................................................. 26 7.2.1. Non-Target Markets ................................................................................................................................... 27 7.3. Market Positioning ....................................................................................................................................... 28
7.4. Marketing Mix .............................................................................................................................................. 29 7.4.1. Product Strategy ......................................................................................................................................... 29 7.4.1.1. Features and Size ................................................................................................................................... 29 7.4.1.2. Duration ................................................................................................................................................. 30 7.4.1.3. Bonus ...................................................................................................................................................... 30 7.4.2. Pricing Strategy ........................................................................................................................................... 31 7.4.3. Place Strategy ............................................................................................................................................. 32 7.4.3.1. In College Top World Sdn Bhd which will be located in Klang Town...................................................... 32 7.4.3.2. In students company itself .................................................................................................................... 32 7.4.3.3. Online Portal .......................................................................................................................................... 32 7.4.4. Promotion Strategy .................................................................................................................................... 32 7.4.4.1. Personal Selling ...................................................................................................................................... 33 7.4.4.2. Catalogue Distribution ........................................................................................................................... 33 7.4.4.3. Sales Promotion ..................................................................................................................................... 33 7.4.4.4. Education Fairs and Exhibitions.............................................................................................................. 34 7.4.4.5. Advertising ............................................................................................................................................. 34 7.4.4.6. Email / Fax .............................................................................................................................................. 34 7.4.4.7. Talks / Seminar ....................................................................................................................................... 34 7.4.5. People Strategy ........................................................................................................................................... 34 7.4.5.1. Training................................................................................................................................................... 34 7.4.6. Physical Evidence Strategy ......................................................................................................................... 35 7.4.7. Process Strategy ......................................................................................................................................... 35
8. 9. 10.
10.1. 10.2. 10.3. 10.4.
ACTION PLAN ..................................................................................................................................... 36 PROJECTED P&L FOR THE 1ST 3 YEAR ....................................................................................... 38 CONTROLS ....................................................................................................................................... 39
Monthly / Quarterly, Yearly Project Meeting................................................................................................ 39 Quality Controls/ Benchmarking ................................................................................................................... 39 Feedback from Students Feedback / Survey ................................................................................................ 40 Budgets ........................................................................................................................................................ 40
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11.
11.1. 11.2. 11.3. 11.4. 11.5. 11.6. 11.7. 11.8. 11.9.
12. 13.
13.1. 13.2. 13.3.
14.
14.1. 14.2. 14.3. 14.4.
APPENDIX ........................................................................................................................................ 46
Appendix 1 : Projected P&L Working File ...................................................................................................... 46 Appendix 2 : Management Team .................................................................................................................. 50 Appendix 3 : Business Model To Be Used .................................................................................................... 52 Appendix 4 : The Assumptions..................................................................................................................... 54
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1. INTRODUCTION
College Top World Sdn Bhd is located in the heart of Klang town. The college is fully owned by a local graduate who is working as a Project Manager with more than 7 years of experience in various manufacturing and 3rd party logistics processes. The college was established with the aim to help those working adults to climb on their career goals. It is one the only college that is providing the Executive Diploma in Production and Inventory Management Program in Klang. The vision of the college is to be the leading Paperless Education Provider for the field of Production and Inventory Management in the next 5 years. Presently this course is designed specially to those working adult in the Manufacturing Industries. Apart from that, the program is also open for others who are interested to learn more on this specific process. Apart from being the education provider, the college also provides practical experience by tying up the course with some of the leading manufacturing company. This will definitely gives the student, the feel of the working environment in any manufacturing sector. On top of that the college also does the job placement services for those excellent students to pursue their career.
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2. CRITICAL LITERATURE
2.1. Market Segmentation, Targeting & Positioning
Market Segmentation is according to may textbooks, one of the fundamental principles of marketing (Kotler, 1997). Marketing theory suggest that businesses adopting a market segmentation approach can enhance their organizational performance (Kotler, 1997). Marketing segmentation is grounded in economic pricing theory, which suggest that profits can be maximized when pricing levels discriminate between segments (Frank et al., 1972). The leading textbook by Kotler (1997) states that, Customers are too numerous, and diverse in their buying requirements. Marketing segmentation arises because it is necessary to balance diverse customer needs with the capabilities and resources of competing organizations in the marketplace. (Dibb and Simkin, 1997). There are various approaches possible for creating market segments, including survey-based quantitative studies of customer behaviour, more ad hoc qualitative approaches such as intuitively interpreting sentiments expressed during customer focus groups, to the macro-micro evolution to newly defined segments based on assessing existing customer groupings or classifications. 2.2. Market Targeting
The creation of a target market strategy is widely viewed as integral to developing an effective business strategy (cf. Doyle, 2006; Grant, 2004). Leading strategists argue that product, product market and customer characteristics alone are poor indicators of customer behaviour and that target market strategies should be more aligned to the behaviours and attitudes of targeted customers (cf. Christensen et al., 2007). A target market is the chosen segment in the market that the company has determined to serve (Jobber p.185). 2.3. Market Positioning According to Jobber (2001) repositioning can lead to a company finds new customers they have not intended to serve in the first place (p.235). According to Solomon (2007) position strategy is an essential part in the marketing efforts because companies have to use the elements in the marketing mix to influence the customers understanding of the position (p.74). the ones responsible for the repositioning have to evaluate why a reposition is necessary and if the offer is the one who will change or just the brand name. According to
Prepared by Ratha A/P Letchimanan (KG9128) Due Date : 28/02/10 Page 7
ASSIGNMENT CONTEMPORARY ISSUES IN STRATEGIC MARKETING Uggla (2006) there are several risk factors that have to be taken in consideration when preparation for a repositioning of the offering or the brand. During repositioning, the risk of losing the credibility and reliability is high and the need for a thorough strategy is therefore necessary to avoid this occurrence. (Uggla, 2006), but in some circumstances a repositioning is necessary to gain creditability if the brand is eroded (p.180). 2.4. Marketing Mix
The term Marketing Mix was first used in 1953 when Neil Borden, in his American Marketing Association presidential address, took the recipe idea one step further and coined the term Marketing-mix. Marketing mix is an imperative concept in modern marketing and academically it is referred to as the set of controllable tools that the firm blends to produce the response it wants in the target market, so it consists of everything the firm can do to influence the demand for its product (Kotler and Armstrong, 2004). It is important to realize that marketing mix strategy of any company can have one major function, that is, strategic communication of the organization with its customers (Proctor, 2000). It was further argued that marketing mix provides multiple paths as such communication can be achieved either in spoken form and written communications (advertising, selling, etc) or in more symbolic forms of communication (the image conveyed in the quality of the product, its price and the type of distribution outlet chosen). However the key element is the main aspects of marketing mix that will be discussed below should not be seen as individual entities, but as a set of interrelated entities which have to be set in conjunction with one another (Proctor, 2000:212). The easiest way to understand the main aspects of marketing is through its most famous synonym of 4Ps of Marketing. The classification of four Ps of marketing was first introduced and suggested by McCarthy (1960) and includes marketing strategies product, price, placement and promotion. The 4Ps of the marketing mix are briefly described as follows (Copley,2004). Product : The item or service being marketed, through its features, quality, benefits and quantities Price : This includes the price of the item and product assortments and lines, price changes and payment methods
Prepared by Ratha A/P Letchimanan (KG9128) Due Date : 28/02/10 Page 8
ASSIGNMENT CONTEMPORARY ISSUES IN STRATEGIC MARKETING Place : The location where the product or service is available to the customer, including distribution channels Promotion : Market communication is achieved by personal selling, advertising, direct marketing, public relations, sales promotion and sponsorship Booms and Bitner (1981) suggested 7Ps mix which they extended the traditional 4Ps with including 3Ps: People, Physical Evidence and Process. The 7Ps of marketing mix have been conducted by some researches in marketing fields; Low and Tan (1995), Pheng and Ming (1997) & Melewar and Saunders (2000). There is a substantial difference between services and products and this difference deserves a separate treatment in terms of marketing. Consumers evaluate products and services differently and research studies (Ettenson and Turner, 1997) have represented services as a distinct group of market offerings. Zeithaml and Bitner (2000) define services as deeds, processes and performance that are produced not only by service businesses but also integral to the offerings of many manufactured good producers.
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ASSIGNMENT CONTEMPORARY ISSUES IN STRATEGIC MARKETING 3.2. Market Trend / Size Further study has been conducted for the various diploma programs that are available in the market. Since this proposal will be classified under the private education centre, in dept research was conducted especially on the private sectors. Table 2 : Intake of Students for Private Centre for the field of Business and Administration from the year 2002 till 2007. (Source : MOHE) Year Business & Administration % Increase 2002 21,897 2003 24,369 11.29% 2004 27,337 12.18% 2005 14,806 -45.84% 2006 18,677 2007 23,473
26.14% 25.68%
The data above shows that theres a continuous increase in the number of intake for this program. Theres an increase of 10% for the year 2003 and 2004 and 20% increase for the year 2006 and 2007. There was a drop in the year 2005 but however the increase percentage is much higher, therefore it can be estimated that the intake for the next 5 years will also increase with an average percentage of 20% to 21%. Table 3 : Estimated intake of Students for Private Centre for the field of Business & Administration from year 2008 till 2012 Field of Study Business & Administration % Increase 2008 28,304 2009 34,107 2010 41,114 2011 49,552 2012 59,726
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Business & Administration can further be divided into various types of specialization. Production & Inventory management can be categorized under Business & Administration course. Therefore this proposal will be focusing on Executive Diploma in Production & Inventory Management. This is one of the most required skills among the working adult in Manufacturing Industry. 3.3. Competitive Situation Competition in this Education industry is limited to only those education providers which is offering that Executive Diploma and to be more specific those who are providing Production & Inventory Management course. Currently there are 88 active private colleges in Selangor in which 11 of them are located in Klang itself. Since the college will be opened in Klang, the competitive analysis is done for only for those colleges located in Klang. Table 4 : List of Private Colleges in Klang, Selangor. Source : MOHE No Name 1 2 3 4 5 6 Inpens International College Institut Eksekutif Bisnes Malaysia Institut I-Systems Institut Quantum Kolej ALC Kolej Antarabangsa Teknologi HELP
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ASSIGNMENT CONTEMPORARY ISSUES IN STRATEGIC MARKETING 7 8 9 10 11 Kolej Automotif TEKAT Kolej Elitejaya Kolej Teknologi Antarabangsa Cosmopoint Cawangang Klang Knowledge Universe Kolej WIT
Based on the list in Table 4, only 3 private colleges are offering executive program for working adults in Klang.
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ASSIGNMENT CONTEMPORARY ISSUES IN STRATEGIC MARKETING Table 5 : Competitive Analysis of the 3 Private College offering Exeutive Program in Klang with College Top World Private College Program Offered Proposed College Top World Diploma in Production & Inventory Management + Bonus topic Project Management Kolej ALC Diploma in Business Studies Diploma in Accounting UUM Executive Diploma in Leadership Mgmt Executive Diploma in Branding Executive Diploma in Logistics & Supply Chain Mgmt Executive Diploma in Quality Mgmt Executive Diploma in Corporate Governance Executive Diploma in Occupational Health & Safety Mgmt Executive Diploma in Security Science Mgmt Bachelors Degree Kolej Elitejaya Open University Executive Diploma in Accounting Knowledge Universe Diploma Programs Space UTM Executive Diploma in Corporate Communication Executive Diploma in Corporate Communication Executive Diploma in Marketing Executive Diploma in Office & Administrative Mgmt Executive Diploma in Purchasing & Supply Mgmt Executive Diploma in Information Technology Executive Diploma in Advertising & Media Studies Executive Diploma in Mgmt Studies Students Working Adults
Market Segmentation Working Adults in Manufacturing Industry Students Working Adults Working Adults
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ASSIGNMENT CONTEMPORARY ISSUES IN STRATEGIC MARKETING Working Position Clerk Supervisor Storekeeper Executive Manager 2 to 2 years Assignment, Examination & Practical RM 15,000 Full / Instalment Various Position 1 to 2 years Assignment & Examination RM 12,200 Full / Instalment Clerk, Executive Manager Various Position
Production Operations Supply Chain Management Procurement Material Management Purchasing Warehousing & Logistics Online Portal
Various Industries
Finance
Various Industries
None
None
Surf Portal
None
None
None
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ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES 3.4. Porters Five Force Analysis Porters Five Force is used to discuss the intensity of Rivalry in the Education Sector Diagram 1 : Porters Five Force Analysis of College Top World Sdn Bhd
MEDIUM
Supplier Power
LOW
Buyer Power
LOW
Threat of Substitution
LOW
New Entry is referring to new education providers. Education sectors can be easily penetrated as long as theres a valid proposal with the approval from relevant authorities supported with quality education system. The approval process may take between 6months to 1 year. Furthermore the operating cost is not high and very much depending on the program offered as well as the focus industry and the market segment. However not many people are involved in Inventory Management at the moment, therefore there might be
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ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES some difficulties in getting experienced part time lecturers to conduct the program. The program is also assessed in term of practical, which is not being offered by any of the private colleges. Its an advantage because the owner is working in the Manufacturing and Supply Chain Industry and able to use her influence to get this assessment approved On top of that, the owner is also qualified to conduct the classes. Refer to Appendix 2: Management Team details. Theres always an increasing demand in this Manufacturing Industry due to the nature of
Malaysias business, therefore many competitor may try to penetrate into this area of specialization in a couple of years so necessary action may need to be taken to protect the business in the near future unless the economic drops. 3.4.2. Buyer Power In this context, buyer is the working adults who are looking forward to enhance their career path thru education. Diploma in Production & Inventory Management is focused on clerk, supervisor,
storekeeper, exec and managers who are specializing in this field and the fees is slightly higher as compared to the other executive program offered by the 3 competitors in Klang. The competitor Kolej ALC and Knowledge Universes are offering Logistic, Supply Chain and Quality Management as a individual program where else, some of the modules is being covered on FOC by College Top World upon successful completion of the Executive Program. According to Survey done by Jobstreet,
ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES nature of the work; therefore, the working adults should be able to select this program even though its slightly higher in fees. Furthermore, the working adults will be getting a better package with Project with just an additional of RM3,000. Therefore College Top World is able to control the buyers by offering the relevant package that is essential in todays growing industry. 3.4.3. Threat of Substitution In education sector, the mode of course delivery often distinguishes a substitute offering from a duplicate offering. If the offering makes significant use of technology relative to existing delivery avenues or reduces the time it takes to complete the course, then it is distinct enough to qualify as a substitute rather than a new entrant. In this proposal, the Executive Diploma in Production & Inventory will be focused to those intend or already working in the Manufacturing Industry. Based on the Competitive Analysis data, none of them are offering any program focused on this area. Furthermore additional modules, has been included as a bonus in the package. Even if the competitors wants to include this sort of bonus module in their program, they may not be able to sell the product with the same fees as they have to look for different individuals for all those 3 separate courses, where else in College Top World, all can be handle by the owner herself or can use her influence in getting better rate in hiring lecturers. Since none of the colleges in Klang are offering the same type of course and services, College Top World Sdn Bhd stands a better chance in doing the business.
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ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES The threat of substitute seems to be low in Klang. However, the success of the existing centre also very much depending on time, convenience and
application, largely because of expanded delivery options made possible by technology. 3.4.4. Supplier Power In this analysis, suppliers are defined as those organizations or individuals who provide the
materials, information or knowledge that allow an organization to produce its products and services. Lecturers can also be classified as the supplier. Since the owner is already exposed in this Manufacturing and Supply Chain, as well as Project Management, its much easier for her to bargain the lecturers fees. This is because she already has all the knowledge in this industry and cant be cheated easily. Furthermore the course material can be designed by the owner herself. If in worst case, she cant find any lecturer, she can still conduct the classes as she is fully qualified. 3.4.5. Competitive Rivalry The intensity of rivalry is low. The threat of New Entry is Medium while the rest; supplier, buyer and substitution threat seems to be low. Based on the Porters 5 Force analysis, the existing competitors in Klang can been eliminated, therefore it is still a wise idea to go ahead with the opening of the College Top World Sdn bhd. The business model used in this marketing plan will be Differentiation Focus. The model is discussed in depth in Appendix 3
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ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES 3.5. Macro environmental Situation
Malaysia put a very high priority on the Education System and they have been very supportive towards building a knowledgeable nation. The vision of the Government is to make Malaysia a centre of educational excellence. Government also provides more than 95% of primary and secondary education as well as about 60% of the tertiary education, with the private sector providing the balance. 3.6. Potential Market Size
Since the intensity of rivalry is low, the potential market size for College Top World is estimated approximately 10% of the student population in Klang Valley. The approximation was done based on the expected overall increase of 20 to 21% of diploma program in the field of business & administration based on the analysis done in table 2 & 3.
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4. PERFORMANCE REVIEW
Based on the analysis done in Chapter Market Trend / Size, it shows that the overall intake for Business and Administration field from year 2002 till year 2007 has increased except during the year 2005. It shows that there is a continuous demand for the Business of Administration field of study. This marketing plan is focused on working adults and those who are staying around Klang area. Therefore the past performance review is done against those private colleges that are offering a similar program. Only 3 colleges were identified offering the same program in Klang Valley. The program is offered in collaboration with local universities. These colleges are also offering other programs other than the Diploma Programs from various fields. Apart from that, the program is opened to both students and working adults from various field and position. The duration of the program is about 1 to 2 years. The assessment of the effectiveness of the program is done via Assignment and Examination while the program fees is within the range of RM10,000 to RM12,500 with the flexibility of Instalment payment. However, only one of the colleges in Klang uses Surf Portal as medium of communication and submission of assignments. There are no other benefits or scholarship awarded during the program duration. The program is promoted and advertised during the Education Fair and also via major newspaper and radio.
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5. KEY ISSUES
5.1. STEEP Analysis
This analysis is conducted to get a bigger picture of the environment of where the college is going to be operated. Effective SWOT analysis can be derived based on this STEEP Analysis. Factors Social Demographic o Focus on age group between (18-25) years old with minimum SPM or Certificate Qualification o Focus on low / middle income group with Exec and below position Culture o Studying to keep self updated with latest manufacturing trend o Support the government in manufacturing own goods Technology Youngsters are technology minded and they prefer to get moving with the help of technology
Economy Country economy seems to be booming and its recovering and there have been many opportunities available. Therefore it increases the buying power The spending power of Selangor residence among the target group (youngsters) are quiet high
Environment Everybody is going towards Green Technology and being friendly to nature by doing the necessary to save the nature
Politics The country seems to be stabile despite minor political issues which could be ignored
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ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES 5.2. SWOT Analysis
TOWS / SWOT analysis is done to identify the main opportunities and threat while keeping together the Strength and Weakness. The analysis is done by looking at the STEEP Analysis as the guidance Threat Emerges of new education centres Poor results upon completion of the program Drop out of students Competition from new education centres Assumption that online learning replaces classroom studies Lower fees structure by competitor Opportunities A growing market with a significant percentage of target market that is unaware of the existence of the centre A superior service offering relative to competition Flexibility of services Hostel staying for those students from outstation Weekend classes ISO 9001 certification E-Marketing Usage of solar system in being nature friendly Strength Strong relationship with some manufacturing company Online portal Automated services Excellent program structure Experience owner Practical training Value for money programs Paperless education Virtual chatting / web conference Study from home via online web portal
Weakness Focused only on one course Building is on rental which may require to relocate the centre Lack of customer loyalty since its a new centre
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ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES Sophisticated online portal to store all the exam marks and course information Instant online / sms on the exam results Online Library Auto registering with job service provider for those with distinction results Certification / Qualification awarded to be registered with My Kad Environmental Friendly Policy Skilled professionals
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6. OBJECTIVES
6.1. Financial Objectives
The main financial objectives of Top World College is to achieve a net profit of RM2.8 million in the 3rd year of operation and continue to increase the revenue per student. Apart from that the no of intake of students is expected to grow at least 10% to 20% per year by maintaining the same number of teachers and administration staffs. 6.2. Marketing Objectives
The marketing objective is to reduce the marketing expenditure by 20% by the 3rd year since the college is expected to be well known during that period. On top of that, the college is expected to maintain a positive, steady, growth each intake thus increasing the number of intake by 2 per year. Apart from that, College Top World expected to have continuous support by affiliated Manufacturing Company by sending in continuous number of their workers as students to this college due to the best services and program quality. At the same time the college would like to maintain the quality of its education system by getting the ISO 9001 certification as one of its additional selling point. Towards the government support of going green, the College would fully go on E-Education by implementing paperless education.
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7. MARKETING STRATEGY
7.1. Market Segmentation
The education is focused to individual consumer to meet their functional requirement. Its also segmented to those working adults who need to reduce the expenses, improve the company productivity and manufacturing quality. On top of that, this is a great program for those who have special interest and those who would like to gain knowledge in the field of Production and Inventory management. The strategy is further discussed in detailed based on the Target Market and Non-Target Market groups as below. 7.2. Target Markets The strategy is based on educating a group of working adult that is already working in a Manufacturing Industry and also to those who intend to pursue their career in this line. Manufacturing can be further divided into Production and Supply Chain Management in which both this area are relevant and depending on each other to work efficiently. Its focus on the following group of people who wish to specialize in Production or Supply Chain Management within Klang Valley. Clerk Supervisor Storekeeper Assistant Senior / Junior Executive Senior / Junior Manager
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ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES Diagram 3 : Target Market Group of College Top World Sdn Bhd
MANUFACTURING
Production
Procurement
Warehouse
Logistic
7.2.1. Non-Target Markets In addition, this program is also able to attract those working adults who wish to enhance their knowledge in Manufacturing Industry. The non-targeted group could be those who are working in Manufacturing Industry but not directly involve in Production and Inventory or those totally not involve in the Manufacturing line within Klang Valley.
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ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES Diagram 4 : Non-Target Market Group of College Top World Sdn Bhd
NON-TARGET MARKETS
Manufacturing
Non-Manufacturing
Maintenance
Service Industry
HR
Education Industry
R&D
Accounting
Communication
IT
IT & Others
Finance
7.3. Market Positioning College Top World would position itself as one of the leading education provider for the field of Production & Inventory in Klang Valley for working adults. It would be supported by experienced lecturers who have worked with top companies. Apart from that the education would be provided in paperless environment in support with the governments effort of ECO friendly. The college would also provide top services to its student in which all their enquiries or feedback would be answered within maximum 1 working day. This positioning would help to gain more trust and loyalty among the students while maintaining their education quality and service standard.
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ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES 7.4. Marketing Mix The easiest way to understand the main aspects of marketing is through its more famous synonym of 4Ps for Products and 7Ps for Services. 7.4.1. Product Strategy Product is the most important strategy among the rest. Executive Diploma in Production and Inventory Management is the product that is being sold, therefore in order to market the product, necessary strategy need to be taken. College Top World uses Ansoffs Matrix to evaluate the appropriate strategy. Diagram 5 : Ansoffs Matrix of College Top World
Product Development
Diversification
Market
Based on the Ansoffs Matrix, it is very clear that, College Top World will be using New Product to sell it to the existing market. Earlier analysis justifies that none of the private colleges are offering any program on Production and Inventory Management; therefore its a new product. However, the college still targets the same market group. Therefore the Product Development strategy is used by College Top World Sdn Bhd.
Executive Diploma in Production and Inventory Management is program designed for working adult. As the title goes, the programme actually covers two topics in details; Production and Inventory. Usually, these two topics go
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ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES together as Inventory is produced in Production and theres no Inventory without a Production. All the individual topics will be covered in depth based on current market. Production and Inventory consist of 12 modules, in which each modules will be covered in 2 months. Thereafter upon completion of this Production and Inventory Management, the students are required to continue with Project Management which will take about 6months. Students can study via online portal as well as its part of the program offered. The program is accessed via examination, assignment and practical. Practical is a new features which is not being offered by other private colleges for Executive Program.
7.4.1.2. Duration
Its a total 2 years program in which Production and Inventory will be taught in 2 years and the balance 6 months with Project Management course.
7.4.1.3. Bonus
Apart from the main subject, the course is also being offered with bonus subject which includes Project Management. This knowledge comes in handy in any industry and not focused only at Manufacturing.
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ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES 7.4.2. Pricing Strategy Pricing is an important strategic because it is related to product positioning. Furthermore, pricing affects other marketing mix elements such as product features, decisions and promotion. Pricing Strategy is chosen based on the Pricing Strategies Mix Model. Diagram 6 : Pricing Strategies Mix of College Top World Quality Low Economic Price Low High Penetration
Skimming High
Premium
Based on the above analysis, it states that College Top World Sdn Bhd is using Premium Pricing Strategy to attract its customers. This is due to the reason that, its providing equally high quality education system with a high price as compared to its competitors in Klang. College Top World offers a competitive pricing for Executive Diploma in Production and Inventory Management which comes with bonus subject, Project Management. The program is offered at RM15,000 per student for the duration of 2 years. The price is slightly higher than the other competitors as 2 main areas are covered; Production and Inventory Management. Apart from the main topic, Project Management is also being offered on FOC basis. The pricing is also set by taking into consideration the fixed and variable costs, competition, company objective, proposed positioning strategies and the target group and willingness to pay. On top of that, the students are also given a chance on practical assignment based on unusual case studies that often occur in a Manufacturing Industry which is not
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ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES offered by any other competitor. Students will be taken to selected Manufacturing Company and given a case study on group basis to come out with an answer. The course materials are all newly designed as per the current market and work requirement and focused more on real working experience instead of just a study material. 7.4.3. Place Strategy Place is also known as distribution or channel and very much depending on the product and the chosen market segments. Students are given 3 options to pursue their study.
7.4.3.1. In College Top World Sdn Bhd which will be located in Klang Town
This would be the ideal option as students from various industries or places can meet in the same place. Furthermore the college will be equipped with all the required facilities
7.4.3.2. In students company itself
This option comes in handy, if there are a many students from the same company or the company sponsors their employee to pursue their studies.
7.4.3.3. Online Portal
Students will be given unique Portal ID upon registration and are allowed to study online if unable to attend any of the classes due to work restrictions. 7.4.4. Promotion Strategy Now, when the rest of the Ps are in place, its time to take care of the Promotion. Promotion is a must to gradually build public awareness and tend to give a boost to the sales.
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ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES Diagram 7 : A typical Communication process. Source : www.marketingteacher.com
The message from the marketer during promotion follows the flow as illustrated in Diagram 7. The elements of the promotion mix used to promote the college are as follows :7.4.4.1. Personal Selling
The management team are expected to use their influence in introducing the new program to the market thru their friends and relatives. Since the marketing segment is focused on Manufacturing Industry, the management team will get the details of those companies in Klang Valley and will walk in to meet their HR department to introduce the course.
7.4.4.2. Catalogue Distribution
This is one of the popular ways of promoting the program. The course details will be printed in detail into a catalogue format and will be distributed at the various locations. Identified location are stores, personal distribution at housing areas, community centres, companies and offices, schools, post offices and shopping malls.
7.4.4.3. Sales Promotion
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College will take advantage on the education fair and will market and promote the product during the exhibition on April 2010. This is an effective to promote the product to the actual potential student
7.4.4.5. Advertising
Newspaper advertisement will be done on monthly basis for the first 6 month to attract the students. The information will also be registered online with the Malaysias training department which will enable the employers and employees to search the details. Apart from that, an official website will be updated with all the detail information upon approval from MOE. Advertisement will also be done in major radio channels at the prime time every 2 weeks for the first 3 months.
7.4.4.6. Email / Fax
Talks and seminar to be arranged with manufacturing companies to give the important of the course and how it can help in personal career growth and knowledge 7.4.5. People Strategy People are the most important element in this College. Services tend to be produced and consumed at the same moment, and aspects of the customer experience are altered to meet the students need.
7.4.5.1. Training
The management team including the lecturers will be trained and developed to maintain a high quality of personal service. The training will be conducted even before the commencement of the program. Thereafter there would be refreshment on the topic from time to time. Customer Service topic would also be covered in the training
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ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES 7.4.6. Physical Evidence Strategy The material part of the college service. Since there are no physical attributes to a services the student tends to rely on material cues. Some of the physical evidences are as follows : Internet / web pages Paperwork (receipts, certificates) Brochures of the college information and program details Logo Business Cards of the management team The college building and its settings
7.4.7. Process Strategy Process is an element of service that sees the customer experiencing an organizations offering. In College Top World, when a student enrol in the program via online or walk in, all the necessary information and particulars will be completed within 3 working days. All that the students need to do is register and make the necessary payments and the rest would be taken care by the management team. On top of that, when the student achieves an outstanding result, the job placement would be done by the college and the student just need to join the company as an employer.
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8. ACTION PLAN
Action plan required to open the College Top World Sdn Bhd has been converted into the below Ganth Chart to keep track all the necessary activities for the first year.
No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Task Submit Application to CCM & local authority Submit Application to MOHE Submit Application to MQA Submit Business Proposal for loan Expected ROC Approval Expected MOHE Approval Expected MQA Approval Expected loan aproval from FI Confirm the building rental Building Renovation Recruitment of Management Team Purchase of Electrical Fittings Purchase of Computer hardware & Software Purchase of Furnite & Fittings Setup of Server Room Setup of Online Portal, Hosting & Emails Module Development Artwork design of Promotional Materials - Catalogue, Brochure, Banner Purchase of Motor Vehicle Distribution of Catalogue & Brochures Arrangement of Talks and Seminar Education fair and Exhibitions Student Intake Induction Program Commencement of Executive Diploma in Production & Inventory Management Duration (Weeks) 4 4 4 4 20 20 20 28 4 4 4 4 4 4 4 2 10 4 2 8 8 4 8 2 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11
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ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES College Top World Sdn Bhd is a new college and would be located in the heart of Klang. In order to proceed, the necessary application is being made to CCM and local authority, followed by to MOHE and MQA. Since the college is new, some amount is required for the start-up, therefore the necessary loan application with all the supporting business proposal will be submitted to the selected bank. All this will be done in January 2010 and they are expected to feedback by June 2010 except the loan approval. The financial institute is expected to feedback by Aug 2010. The money will be used as a model to start-up the business. During the feedback period, a suitable building to run the business will be identified which will only be confirmed upon approval from the financial institute. This is followed by the necessary building renovation which will take up till the 2nd week of Oct 2010. Concurrently, recruitment of management team, purchase of electrical fittings, computers, furniture, setting up of server room and online portals, hosting and emails will be done. All these activities are expected to be completed latest by end of Oct 2010. At the same time, the required modules for the course will be developed by the owner and the identified lecturers. Its expected to complete by end of Nov 2010. Concurrently, the artwork design of promotional materials will take about 1 month to complete. In order to carry out the promotional activities, a motor vehicle is expected to be purchased in Oct 2010. Thereafter, the distribution of catalogue, brochures, talks and seminar, education fair and exhibitions would be completed by end of Nov 2010. Detailed promotional activities are discussed under the marketing strategy chapter. Student intake will be open from Nov till Dec 2010 concurrently during the promotional activities. Upon completion, there would be an induction program during the last week of Dec 2010 and the program starts on January 2011.
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COLLEGE TOP WORLD SDN BHD INCOME STATEMENT AS AT 31 DECEMBER 2010, 2011 AND 2012
Expenses: Admin Expenses Finance Cost Total Expenses Net Profit Net Profit Margin 3 4 348,150.00 180,000.00 528,150.00 (528,150.00) 1,282,400.00 180,000.00 1,462,400.00 698,800.00 26.93% 1,282,400.00 180,000.00 1,462,400.00 2,860,000.00 55.11%
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10.
CONTROLS
Marketing control is the process of monitoring the proposed plans as they proceed and adjusting where necessary. Controls help to track the effectiveness of the actions plans. Control involves measurement, evaluation and monitoring. Standards will be set and the progress of each activity will be compared against the standard to see the effectiveness of the activity. Necessary corrective actions to be taken if the result doesnt meet the actual standard. Activities Controls The college will conduct a monthly meeting with all the working committee to discuss all the relevant issues and the progress update. A project manager will be appointed to update and keep track of all the activities using a Gantt chart. This chart will be inclusive of all the required activities to operate the college. The necessary resources, duration, budget and the person in charge will be stated accordingly. The task will be allocated to the individual PIC and the PIC will be responsible to update the progress and completion during the monthly meeting. The chart will be updated or amended accordingly based on the actual situation to meet the target or dateline The college will monitor the Quality of the education by setting up criteria in term of student performance. The criterion includes, Distinction, Good, Average and Fail. Apart from that the necessary SOPs will be created to ensure the workers and students are aware of what need to be done to maintain a Quality Education System at all the time
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ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES Students will be forced to give feedback on each module registration. It would be done online and the results will be forwarded directly to the CEO. The results will be converted to an analysis and the necessary action and counter measure will be taken to maintain the education system and services Budget will be monitored to ensure it doesnt exceed the budgeted amount for each activity. This is to ensure a smooth cash flow and to avoid unnecessary debts The CEO and the key management team will pay a visit to manufacturing companies to find out the latest trend, technology and requirement to ensure the education system is updated on timely manner based. Apart from that it also helps to maintain the good relationship among the manufacturing people with the college. The college will carry out corporate social responsibility twice a year to show the support towards governments effort in our education system. This will be conducted with the selected secondary school students. Apart from that, the college will support the paperless by turning the college into a paperless education system provider The management team is expected to conduct the competitor performance analysis on every quarterly basis to ensure that the college is updated with the ongoing changing trend and requirement. Necessary changes will be made based on the individual analysis if its contradictory or would affect the student intake
10.4. Budgets
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11.
CONTINGENCY PLANS
It is also known as the worst-case scenario plan, backup plan or a disaster recovery plan that can be implemented in the event that the main plan fails. It allows the college for continuous operation by quickly adapting to changing circumstances. Activities Contingency Plans Since the College is heavily depending on Internet and wireless communication, a backup telephone line will be activated automatically to replace the communication breakdown Electricity is one of the necessities in providing the education; therefore a generator would be a great substitute to overcome the issue In case of any natural disaster, the education system will still work as classes can be conducted via web conference. Therefore theres no need for the students to attend the class physically but rather virtually Each of the staff are trained to do all the job that is involved in running the college; therefore there wont be any hiccup in handling the students enquiries
Spare unit of projector has been purchased in case of emergency. On top of that, theres a projector renting outlet available nearby the College Management Team would contact the external consultant immediately in which a contract has been signed up to ensure the down rate doesnt go more than 1 day
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ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES Extend the promotional activities to non-manufacturing working adults as well as to secondary school students who are leaving the school soon. Give discounts and implement student referral incentive scheme Prepare disaster recovery plan to backup and protect all the online data. The data to be stored in different location Check on the course details and do the necessary action in the coming activities. The cost should be relevant to the course that is being offered In case the lecturer resigned, the CEO of the college is able to do the teaching as she is well versed with the industry Revision of the existing method of teaching and the course module
Performance
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12.
CONCLUSION
Marketing Plan is an essential tool in taking a business from paper to profit. Even a brilliant Marketing Strategy and Plan is pointless if the company doesnt know how to implement it properly. Marketing Implementation is what turns marketing plans into marketing actions. Implementation is the day-to-day activities that will effectively put your plan into action. In your marketing plan you focus on the what and why, but in the implementation process you focus on the who, where, when, and how. Proper implementation can give a company the edge in a market with similar market plans. If a company is better and faster at execution, they are sure to have the advantage in terms of market share. In order to maintain the effectiveness of the marketing plan, all the analysis to be studied carefully and the all the relevant designed action plan to implemented according to timeframe. All the employees involved to be rewarded accordingly upon meeting up the objectives. At the same time, ask for feedback and always open for improvement to serve the customer better. A successful marketing plan depends upon how well a company can blend its people and get the job done. If everyone is on the same page and know what it is they are striving to accomplish, the possibilities of success, are endless.
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13.
REFERENCES
13.1. Electronic And Print Media What is Segmentation, http://www.marketsegmentation.com/what_is_segmentation.html Segmentation is Essential for Strategy Success, http://www.jointcommunications.com/id7.html Market Segmentation, http://www.businessplans.org/Segment.html Marketing Mix, http://en.wikipedia.org/wiki/Marketing_mix The Marketing Mix, http://www.quickmba.com/marketing/mix/ Marketing Mix, http://university-essays.tripod.com/marketing_mix.html Marketing, business The ingredients of a Marketing Plan, http://www.entrepreneur.com/marketing/marketingbasics/marketingplan/article4302 6-3.html What is Contigency Plan?:, http://www.wisegeek.com/what-is-a-contingencyplan.htm Differentiating the Differentiation Models, http://www.eric.ed.gov/ERICWebPortal/custom/portlets/recordDetails/detailmini.jsp ?_nfpb=true&_&ERICExtSearch_SearchValue_0=EJ746261&ERICExtSearch_Sear chType_0=no&accno=EJ746261 Strategy competitive advantage, http://tutor2u.net/business/strategy/competitive_advantage.htm How to Develop a Product Market Strategy and Plan for Marketing Product Introduction, http://www.robertwinton.com/marketing.htm Lesson Ansoffs Matrix, http://www.marketingteacher.com/Lessons/lesson_ansoff.htm Pricing Strategy, http://www.netmba.com/marketing/pricing/ Pricing Strategy: Four Pricing Methods, http://entrepreneurs.about.com/od/salesmarketing/a/pricingstrategy_2.htm Promotion, http://www.marketingteacher.com/Lessons/lesson_promotion.htm What is PEST Analysis, http://www.coursework4you.co.uk/essays-anddissertations/pest-analysis.php
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ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES 13.2. Journal Articles And Research Publications Bass, F., Tigert, D., Lonsdale, R. (1968), "Market segmentation: group versus individual behaviour", Journal of Marketing Research, Vol. 5 pp.264-70. Dibb. S, Richardson, Scott A. & Sloan, Richard G. & Soliman, Mark T. & Tuna, Irem, 2005. "Accrual reliability, earnings persistence and stock prices," Journal of Business & Industrial Marketing, vol. 12(1), pages 57-65, 1997 Abratt, R. (1993), "Market segmentation practices of industrial marketers", Industrial Marketing Management, Vol. 22 pp.79-84. Konan Chan & Louis K. C. Chan & Narasimhan Jegadeesh & Josef Lakonishok, 2006. "Earnings Quality and Stock Returns," Journal of Business, University of Chicago Press, vol. 79(3), pages 1041-1082, May Amit, K. Mallik, Debashish Sur and Debdas Rakshit. 2005. Working Capital and Profitability: A Study on their Relationship with Reference to Selected Companies in Indian Pharmaceutical Industry , GITAM Journal of Management, 3: 5162 . Vijaykumar, A. and A. Venkatachalam. 1995. Working Capital and Profitability an Empirical Analysis , The Management Accountant, ICWAI, Kolkata , June: 748 50 . 13.3. Books Morris B. Holbrook (1994), "ETHICS IN CONSUMER RESEARCH: AN OVERVIEW AND PROSPECTUS", in Advances in Consumer Research Volume 21, eds. Chris T. Allen and Deborah Roedder John, Provo, UT : Association for Consumer Research, Pages: 566-571. Kotler, P & Armstrong, G (2004), 'Principles of Marketing', Tenth Edition, New Jersey: Pearson Education Inc Lauterborn, R (1990), 'New Marketing Litany: 4P's Passe; C-Words Take Over', Advertising Age, Oct 1, 1990:26 Lazer, W (1971), 'Marketing Management: A Systems Perspective' New York: John Wiley & Sons McCarthy, E J (1960), 'Basic Marketing - A Managerial Approach', Illinois: Irwin Proctor, T (2000), 'Strategic Marketing: An Introduction', London: Routledge
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14.
APPENDIX
69,600 5,800
69,600 5,800
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5,000 5,000 1,500 306,000 6,000 240,000 60,000 6,000 30,000 9,000 6,000 3,000 106,500
5,000 5,000 1,500 306,000 6,000 240,000 60,000 6,000 30,000 9,000 6,000 3,000 106,500
1,282,400
1,282,400
1,500,000 180,000
1,500,000 180,000
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23,200
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Education Fair - Nov 2010 Newspaper advertisement [RM2000 per mth] (Oct - Dec) Radio Advertisement [RM1000 per mth x 3mth] (Oct - Dec) Talks / Seminar [RM1050 per talk x 3mth] Utilities Water Electricity Indirect Telephone Postages Stationary Account Payable Auditor fees [RM4000 per year] Total Startup Expenditure
5,000 6,000 3,000 3,150 15,300 800 12,000 2,500 1,000 5,000 4,000 4,000 348,150
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College Top World Sdn Bhd is being managed by a small team of professionals. Ms Ratha is a Computer Science graduate with total 7years of experience in various department and field. Have extensive knowledge in Manufacturing Industry; budgeting, people management, Continuous Improvement Plan, Risk Management, Planning, Contingency Plan, 7 QC Tools, ERP, Training, ISO 9001, Supply Chain Management and overall flow of business unit. Currently she is working as Project Manager in well known logistic and distribution company. Well versed with Project Management methodologies to get the project live based on the given scope, budget and timeframe. Ms Ratha Letchimanan CEO @ Founder of College Top World She is also In the midst of completing her MBA from Nottingham Trend UK and the only Shareholder of College Top World Sdn Bhd Dr. John obtained his First Class Honours from the University of Liverpool with the B.Eng.(Hons) in Engineering Science and Industrial Management. He proceeded with the University of Liverpool to complete his Doctor of Philosophy, Ph.D., in integrated manufacturing management systems. Dr. John is the APICS Certification Administrator in Malaysia and is responsible for the promotion of the CPIM professional certification in Malaysia. He has been involved in the training programmes using the APICS CPIM body of knowledge for more than a decade working with leading MNCs and Malaysian corporations as highlighted in the track record. He is also actively involved in business consulting to help enterprises to be globally competitive by ensuring better funding through Initial Public Offering (IPO) or mergers and acquisitions (M&A). He has worked with MNCs and Malaysian corporations including Agilent, AISB, Altera, Asian Driveshaft, Auto Parts Manufacturing, BICC Group UK, Bristol-Myers Squibb/Mead Johnson, ColgatePalmolive, Corning Glass, Dell, Emerson Process Management, Entegris, F&N, Flextronics, Henkel Chemical, Hitachi Electronics, Intel, IOMEGA, Jabil, Kayaba Malaysia, Knowles, Kumpulan Jebco, LRC, Matshushita Electronics/MECOM, Motorola, MK Electric, Nippon Paint, Nestle, Petronas/Optima, Phillips Group Singapore, Pilkington Bros UK, Seagate, Shin-Etsu, Siemens/OSRAM, Solectron, Stirling Drug, Tamura Electronics, Toshiba, Toyota/ASSB Malaysia, TRW, UMW Group, Varitronix, and others through the public training.
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ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES Mdm. Wong is one of the few pioneering students from Malaysia that completed a Certificate of Interior Design from the Royal Melbourne Institute of Technology in 1963 before it became a university. Mdm Wong Mei Sin Lecturer Having worked for Interior Design Consultancy firms since the 1960s, she has worked on many large projects before she retired to a teaching profession in 1997. Some of the projects Mdm. Wong has participated in includes, the Arab Malaysian Merchant Bank HQ, renovation work for Istana Negara, Dayabumi and the Malaysian High Commission in Bangkok. Mr Frank has more than 15 years of experience managing sales and marketing at the district and corporate level for both start-up and established retail, franchise and manufacturing companies. He is also very successful in identifying opportunities for accelerated growth Ms Nora has wide exposure working in education firm. She has been attached to a private college in KL handling all the administration job. She is well versed with all the standard protocol and requirement. Organizational Structure
CEO
Marketing Executive
Admin/Finance Executive
Senior Lecturer
Lecturer
College Top World Sdn Bhds organization structure is very straight forward as the owner wants a smooth flow of ideas and effective implementation. There are three direct report: Marketing, Admin/Finance and Senior Lecturer under CEO by emphasizing the team value.
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ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES 14.3. Appendix 3 : Business Model To Be Used Based on the analysis from Porters 5 Force Model, it justifies that, the intensity of rivalry in this Education Sector of offering Executive Diploma in Production and Inventory Management is low. Michael Porter suggested four generic business strategies that could be adopted in order to gain competitive advantage. Michael Porters Four Strategies Diagram 2 : Business Model of College Top World Sdn Bhd Degree of product differentiation
High
Differentiation Focus
Differentiation
Low
Cost Focus
Cost Leadership
Narrow
Broad
College Top World Sdn Bhd would be using Differentiation Focus Strategy in this proposal. Executive Diploma in Production & Inventory Management is something unique since its not being offered by any of the competitors. Differentiation Focus of College Top World Sdn Bhd This program is designed for those working adults in a Manufacturing Industry. Its focused on clerk, supervisor, storekeeper, executive or managers from both Production and Supply Chain Management area. Supply Chain Management is consist of Procurement, Warehouse and Logistic as well. Apart from that, the Executive Diploma is being offered with additional bonus topic which includes Project Management topic. This is something new and not being
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ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES offered by any of the competitors even though it might be offered as separate Executive Program with additional fees. This approach give more value for money and the working adult wont hesitate to enrol in this program as both bonus module are some of the top programs in the market. The assessment method also differs from the rest of the competitors as this program is evaluated based on three approach; exam, assignment and practical. The practical will be conducted in the industry itself based on some case study or situational based questions. This allows the candidates to have hands on practices or decision making on the scenarios based on the case study. This differentiation focus approach will help to sustain the College Top World business in the market.
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ASSIGNMENT MANAGING & ACCOUNTING FOR FINANCIAL RESOURCES 14.4. Appendix 4 : The Assumptions
Many assumptions have been made in the attempt of submitting this proposal. Some of the assumptions are as follows. The College Top World is able to recruit the desired number of students, 300 students The license is approved by end of June 2010 The program commenced exactly on July 2010 and ends on Dec 2012 which covers the duration of 2 years Class will be conducted from Monday till Friday from 6.30pm till 9.30pm and expected to have 2 classes, 20 students in each class The centre location will be in Klang Town which will be equipped with 2 lecture halls. 20 students per lecture hall per day Activities in Gantt Chart is calculated based on 5 working days All the application are done on FOC basis with the countrys policy to encourage the emerges of more education provider Tax and fluctuation currency rate is ignored in the computation of financial statement Loan is approved on 31st July 2010 Payment from students are expected to be received by 1st week of Jan 2011 and Jan 2012 Only 2 instalment is allowed for each intake CAPEX purchases are made only on 2010 during the startup year The program module is developed on the year 2010 but only printed and paid on the first week of year 2011 and 2012
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