NEW INTERNATIONAL ENGLISH

SCHOOL
BUMKT6942-INTERNATIONAL BUSINESS
IIBIT-ADELAIDE, SEMESTER-1, 2015
GROUP ASSIGNMENT REPORT
P.RAJA SEKHAR-30308758
KARAN MEHTA-30120021
AJU K THOMAS-30117451
DAN
-30117451
DUE DATE: BY 11:30 PM, 29/05/2015 ON
FRIDAY

S U B M I TT E D T O M r. D E S S

CONTENTS
1.EXECUTIVE SUMMARY

2.INTRODUCTION

3. GLOBALIZATION

4.MARKET ENTRY STRATEGIES

5.FINANCING

6.STAFFING

7.WHY CHINA

10

8.WHERE TO CHINA

13

9.IMPLEMENTATION PLAN

15

10.CONCLUSION

18

11.REFERNCES

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EXECUTIVE SUMMARY
S.A.M.S Sri Aurobindo Memorial School is one of the famous Private
institutions situated in Bangalore, India established in the year 1962. They
have a vision of excellence in English learning. Now the school is in ahead to
globalize their services. As the name is not suited in the environment in global
wide, suggested to change the name to NIES NEW INTERNATIONAL
SCHOOL OF ENGLISH. As it was English based service school China is the
best place to startup their school. So this following report is a plan of
globalizing Sri Auribindo Memorial School. It explains how to enter into the
China, how to choose the marketing, financing and how to hire the staff.
Overall this is an implementation plan for NIES in china.

INTRODUCTION
Education in India is provided by public sector and private sector with all their
funding coming from Central level, state level and local. Only free education is
a fundamental right to children between ages 6 and 14. Education has been a
very primary thing all over the world these days. Furthermore, to qualify for
any job, or any business an individual has go through a basic level which is
knowledge and knowledge comes from education. This is the main reason
why education is very much compulsory for everyone these days. SAMS- Sri
Auribindo Memorial School has a good brand reputation, established in the
year 1962, which is situated at Bangalore, India. It is an English medium
school; it has a vision in excellence in English learning. It offers CBSECentral Board of Secondary Education and SSLC Karnataka State Syllabus
Curriculums. Now group of SAMS institutions trying to globalize their
educational services. In a part of that its recommended to enter into the
China market to have a good scope of improvement. China is the one of the
developing countries in the world and their language is Chinese and their
second language is English. The culture of the Chinese is, the parents tries to
provide good education to their children. As per the survey in the year 2014
china is in first place that overseas students flew to different parts of the world
for their education. This shows how the educational market is in china. At
present there are many international schools already being serving their
services in china. Now SAMS wants to enter into the market of china. The
present name of the school SRI AURBINDO MEMORIAL SCHOOL is not a
comfortable name because of the local tradition and language concerns and it
is good to change the name and it would be good if it was NIES NEW
INTERNATIONAL ENGLISH SCHOOL to start. As its not an easy process to
enter into the world market with any business, they need a proper research
and business plan. So now this paper gives complete research of the china
educational market, where to startup and also proper steps to move forward in
each and every aspect of process. A complete implementation plan is advised
for the SAMS in this report.

GLOBALIZATION
GLOBALISATION- GLOBALISATION OF EDUCATIONAL
SERVICES
The trade and FDI can have a positive effect on the education and training as
well. This can be viewed as direct and indirect process. Furthermore, the after
effects can be positive in the who have started to gain abundance knowledge
in education sector.
Education going globalized can help a developing economy but at the same
time there can be issues related to access and accreditation.
If education going global what can be the outcome:

It provides the basic skills on which a firm can build and train further

IT provides CSR to have a good quality education in future

Develop own university laws, rules and regulations to keep the students
on-going

Joint venture with a already developed and well-known firm can be a

great success.

It can b a emerging trend of the developing countries to go global and

provide the best education to the students as significant students from these 2
countries seek education abroad.

MARKET OF EDUCATIONAL SERVICES IN THE

INTERNATIONAL MARKET
The international education is at a very high growth from 2008 onwards to
other developed countries like Australia, USA, Canada, New Zealand, and
Europe etc. At least 37% of all international students are Indians and Chinese.
The rapidly growing demand for international education in Asia has grown the
demand for English at a very high level. Almost 74% of students according to
report in 2012 stated that student are more focusing on the English language
rather than their own native language. Today, Indias first language is
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considered as English. To go to a foreign country to study every one from

Asian countries have a pass an IELTS test, which is the first step to qualify for
a foreign university. Thats it why many schools have taken step forward to
provide their students a better platform of English level.

DEMAND OF ENGLISH IN THE WORLD

English is proudly been called as the first language in the world. Every
business, university, schools, local colleges are known with one language in
common and that it English. Many regional international organizations such as
European free trade association, Association of Southeast Asian Nations and
Asia-pacific Economic cooperation have set their English as their
organizations first language to communicate. Many business have started to
follow the trend of doing business in the English language. Every western
country you take these days like Canada, USA, Australia, New Zealand, UK,
India etc. have their first language as English.

GROWTH OF EDUCATIONAL SERVICES

The education contributes to economic performance is more corporate in
findings based on earnings. The growth of education in our world is expanding
day by day. The more the western world is expanding the more the students
as well as teachers are getting formulated in that process. Mostly people from
developing countries want to pursue their studies abroad to have a good
quality command over the English language as well as to adopt the new
trends in the. The rate of return in developing countries has gone to 23% over
the last few years.

MARKET ENTRY STRATEGY

JOINT VENTURE
Two or more firms mutually possess a Joint venture. This is one of the best
possible ways for the organizations to go into the overseas market where they
have limitations on straight foreign investments. Launching of joint venture
with host country is the common method used to enter into a foreign market.
The advantage of joint venture is that they get detailed info about the market
and cultural values of the country.
There are several types of entry methods to get into the market such as direct
investment, join venture, indirect approach and strategic alliances. Out of
these, the top conceivable solution for the school is to enter through a
Cooperative joint venture with a reputed organization. Sri Aurobindo Memorial
School entered into the china market by a joint venture with BIBS (Beanstalk
International Bilingual School). They have to implement the name of the
school from SAMS to THE NEW INTERNATIONAL SCHOOL (NIES) for the
convenience of Chinese customers.

MARKETING MIX
It is a business tool used for marketing to determine a service or Product by
the Price, Product Promotion and Place. Marketers should consider how to
exploit, position configures their product and strategies to develop the
product.
The SAMSs marketing mix is primary education, Higher education,
Secondary education and Adult education and Vocational education. In China
primary education is compulsory for all students. As they are expanding their
firm to china they have to mix up their teaching practice especially in primary
schools and secondary schools with BIBS (Beanstalk International Bilingual
School) one of the well reputed institutions providing high quality of
education). It concludes with ideas as how a school business can move
internationally and expanding their growth especially in china by implementing
a special curriculum in their joint venture.

CUSTOMER EXPECTATION
The institution should be well reputed among customers to fulfill the customer
expectations especially in terms of excellent service and organizational
values. BISS is a very well reputed international educational institution in
Beijing with international students so its become a successful strategy of
SAMS to collaborate with BIBS to expand their business in future. The
teaching staff should be friendly, knowledgeable and also give vital support in
their studies. They should understand the knowledge of cultural backgrounds
and values of students in order to develop strong fostering relationships. The
institution should improve their infrastructure from latest technologies and
eco-friendly initiatives through school maintenance Audit. A good school,
which offers a well-structured environment, which suits for learning, a clean
and tidy setting helps in enhancing the learning and teaching practices. And
also they have consistent service sources to meet the requirements of
students to deliver excellent performance by providing sports equipments and
library supplies.

FINANCING
Financing is a process of providing capital for commercial activities, investing
to help them to succeed their goals. Financing is the most important thing in
the establishment of a new firm especially in overseas. It will help the
business to employ the staffs, payment of taxes, acquiring licenses and also it
helps to enlarge their firm value. There are three types of financing 1) Bank
loans- Business loans are available from many banks as short term and long
term. These loans are popular for enterprises for expanding refinancing and
for acquisition. 2) Self assets- In this type of financing the owner's tangible
and intangible assets is being possessed by investor is counted as an
Asset. It includes inventory, buildings, cash and equipments. 3)
Partnership Financing- It is the financing of two or more firms to run
a business by sharing its profit and risks. In partnership financing
Both firms have to invest equally by means of money, time and the

Concepts. In order to run a business smoothly honesty the

Communication is necessary in between partners.

As an Indian institute establishes its firm in China it's a bit

Challenging for financing for the organization. First of all, Indian
Banks denies giving loans for foreign business investments. But at
the same time BISS can get loan easily from Chinese bank for inventory
Purchase and utilities for launching their service. Because they are
Investing the money and infrastructure in their economy. Because mostly
native banks only provide loans for establishing the business or firm
in their home. Self assets is one of the better way to invest
Especially in foreign markets. Business owners investing the capital so
that they have full control and flexibility in bank deposits and
property. Partnership financing or joint venture financing is also
another option for SBMS for their foreign investment because which
helps in reducing the risk of loss, reduce legal obligations and
consequences of taxes.

STAFFING
Staffing is a process of allocating qualified personals into different positions to
fill the organizational needs (Donald, 1997). In the school industry especially
in China they need mentors from countries like Australia, UK, US & New
Zealand Cross cultural competency is the challenging factor for Indians
because Chinese people believe that native English speakers can only teach
them well. In administrative staffing polycentric staffing is a better option,
which means employee, recruits locally to reduce the communication and
cultural barriers (Doinska, N et.al 2005). Hiring professional advisors from
host country is necessary to understand the rules and regulations, contracts

and complex regional paperworks and which helps to reduce the risk factors
which affecting externally. The advisor, which includes insurance team,
Business and legal advisers auditor and bankers.

WHY CHINA
EDUCATION IN CHINA
As we know, China has a huge population in the world, also its education
system is the largest one all over the world. The Ministry of Education (2014)
estimates that 99.7% of the population in China has achieve universal nineyear basic education. There is a long history of education that China provided
to international students since 1976 (China education center, 2015). Now,
higher education sector in China seeks the way to improve the education
quality, international school is one of the suitable methods. Therefore, China is
a potential market for this school.
1. With the rapid development of economy in China, there appears to be
a substantial increase in the population of foreigners across major
cities such as Shanghai and Beijing. This has led to a higher demand
in establishing more international schools with a wide range of
language diversities. Furthermore, the development of major language
school is observed to spread to smaller cities in China, in which has
been proven very successful as government has gathered valuable
experiences in recent decades in developing these special language
school in major cities. In the meal while, local Chinese schools have
realized the importance in recognizing the increase in foreigners
population and have made considerable progress towards
internationalization process. This combination of expansion in number
of international school and local Chinese schools undergoing
internationalization have provided more opportunities for local Chinese
student to study in a very unique studying environment. Globally
speaking, the number of international schools has doubled in the last
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ten years, which has provided convenience for foreign personnels

children in accepting quality education. Its advantages in offering
English teaching courses with high quality teaching curriculum and its
direct pathway to major international universities have attracted a
growing number of local Chinese students

As the population of foreigners has increased dramatically across all major

cities in China, these foreigners have limited options but to send their children
to international schools. Rich families in China, in which the parents would
consider to send their children to international schools because of its English
teaching courses, high tech facilities and high quality teaching team, also
follow this trend. These rich Chinese parents think that by providing their
children with early-internationalized education, it would prepare their children
better for any overseas work opportunity in the future. As this high demand in
high end education is getting more and more obvious with the rapid
economic development in China, this will inevitably lead to more competition
between international schools. Although the number of international school is
still relatively small compared to mainstream local schools, but they provide all
level of education from kindergarten to high school; and its rather expensive
tuition fee has not prevented parents from sending their children into these
international schools.
Despite of unprecedented increase in economic strength for the past 30
years, but the influence of Chinese language is relatively small if it is to be
used as a global scale communication tool. One the major reason is the
Chineses ability to speak foreign language is very low in average Chinese
population. Unfortunately, the percentage of Chinese population who can
master foreign language is very low in terms of both quality and quantity,
which simply cannot meet the demand of national development. This urgent
need of high end foreign language talents is a critical task for the entire
population considering that the average middle and primary school cannot
make their English courses too difficult. This challenging task needs another
way of approach to solve this problem, which has led to the rapid
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development in a variety of special international schools across China.

According to the data report, China education industry market demand is big
with the whole Chinese education training market in 2010 estimated about
760 billion Yuan. The total cost of the expected by 2013 that figure will be 960
billion Yuan and the annual compound growth rate will reach 12% (Ministry of
Education, 2014). Therefore, an investor must pay close attention to many
elements when establishing the school; and its location is considered to be
the most important elements among many others. If the school site is chosen
at a very remote area, then the school definitely cannot success.
2013 the international school in China
No. of international

No. of students

school
Worldwide

5,973

2,929,342

China

285

144,636

4.68%

4.96%

Data sources: China's ministry of education

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WHERE CHINA
SCOPE OF EXPANSION PLAN
Firstly, focus on the first-tier city, like Beijing, Shanghai, Guangzhou and
Shenzhen. Then, based on the market survey to expand to the second- tier
cities, like Nanjing, Chengdu, Wuhan and Hangzhou. Not only as a traditional
school but also a English language training school for adults over the age of
18, with different interests in learning needs, such as professional work,
traveling or study abroad.
A lot of people ignored when choosing schools or city, actually a city's cultural
characteristics, diversification, internationalization, is also a key to students'
parents to choose international school. International education experts believe
that Shanghai and Beijing is the most suitable place for students in China
international course. Reasons for the following:
1. The teachers' internationalization. International high school courses, the
need to attract international education talent, really very good sea turtles or
foreigner all like working and living in international metropolis, smaller cities
will be more stable, so choose Shanghai international metropolis such as
Beijing study also is to choose the home of the best teachers in the field of
international education.
2. International peer groups. If students read in Hangzhou international high
school, his classmates are basically or Zhejiang Hangzhou. But in metropolis
like Beijing and Shanghai to study, students from all over the world, so that
more help to the students' internationalization and diversification. Because our
students through three years after high school, is going to study abroad life,
their classmates from all over the world, so how to adapt to different cultures
and communicate with people of different cultural background is very
important, it also has been plagued many of the students. And for the big
cities in high school is an important step in university to make the transition to
international students.
3. The international surroundings. Because in the metropolis, Shanghai

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Beijing students can become more widely contact with many new things, to
see and feel things are much more second-tier cities. These, for them to study
abroad in the future, to adapt to the foreign environment to lay the solid
foundation.
The data show that the level of English third tier cities are generally lower than
first-tier cities, which allow people demand to improve their English in second
- tier cities feel more urgent than big city. China's English learning population
estimated to have reached 2.5-3.5 million champion training in language
classes. With good English skills raises potential than the north of
Guangzhou-Shenzhen-tier cities these cities even more. Compared with firsttier cities, have good English skills are more scarce in second-tier cities,
therefore, raise the potential will be greater.

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IMPLEMENTATION STRATEGY
RESEARCH
By regularly evaluating, the process the came to be on the positive side as
collaboration with one of the most reputed schools in Chinas capital state can
be a great success if formulated accordingly. Research can be done
accordingly with the use of the already developed educational industry
magazines, websites and books to collect ample data for taking the school at
a global.

CONSULT
Sri Aurobindo Memorial School can consult with the various other firms in the
developed countries who had already setup the joint venture with other big
institutions and how are they running the business now. Contact other
accountants and other business owners to ask advice to join other firm in a
different country.

DECIDE
Mrs. Pearson was the founding principal of the school and Mr. Pearson was
its director of studies. The school has decided to have their school going
abroad and to a developing country, which has high, demand in English. They
choose BIBS (Beanstalk International Bilingual School) as their joint partner in
China, which was, minimize the risk of failure to a very much low level.

PLANNING FOR THE BUSINESS

Sri Aurobindo Memorial School is seeking to setup their global footprints and
exploit opportunities for their students. In the very beginning it was originated
as a primary school till 7th standard. Indeed, this was until 1970s when both of
them left for Australia from Bangalore. The main focus and principal objective
of the school became to have the school with English medium as a tagline.
Both of them had a vision for excellence in English learning and teaching as
well. The school has to have some start up cost with the other firm and
framework for Management

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FINANCING
The financing for the school to start as a joint venture in China will be at a
very much high risk. For implementation of high English standards to the
students lots of faculty has to be hired from China, India as well as from other
developed countries like Australia, USA, Canada etc. which can be very much
cost effective for the institution and for which both the institutions should have
a good finance with them. BIBS (Beanstalk International Bilingual School) is
already a highly reputed school in China, which also focuses on English as
one of their primary language. Financing at a low risk can be done by
collaborating the self-assets of both the schools, bank loans from Chinese
banks as well as partnerships with big sponsors etc.

HIRING
Hiring the staff should have to be in a very much effective way as the aim of
the school is to provide best English program to their existing students as well
as students who can get inspired from the institution. Their present focus is to
expand the school internationally for which they can put the best teachers
from home and host country as well as from other high institutions all around
the world to give a better education, which is also good for the future
expansion of the joint venture.

START THE INSTITUTION

Sri Aurobindo Memorial School in Bangalore, India is a profound school with
great cultural ethics and BIBS (Beanstalk International Bilingual School) is a
very highly reputed school teaching students from last 21 years and they have
8 campuses all around china with aim of becoming multicultural and bilingual
and have students with a global mind who are equipped with integrity and
knowledge to function successfully.

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MARKETING
Global marketing is a new phenomenon. Global marketing is all-together a
richer cocktail now. The marketing skills for the Indian school is best to have
joint venture with BIBS (Beanstalk International Bilingual School) as its
already one of the most highly reputed school of China. By this process the
school in Bangalore can have a good competence in the future. Joint venture
is the best marketing strategy for the institution to go global in the start. Going
with already developed countries will not at all work, as there is less demand
of English in those countries, which can be a big failure for this school.

TRY TO REACH OBJECTIVES

Sri Aurobindo Memorial Schools main objective is to provide competent level
of English to their students. As we know many students from India and China
are going abroad for their higher studies and so for that level of studies a
student must have a good command over the English to sustain in the market.

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CONCLUSION
It is good time globalize the New International English School as well as its a
good time to enter into the China educational market as the present market is
very good to start the school and also it is the best place for their entry to
globalize. Its not an easy to enter into the international market in every
business need to step forward in each end every single step in the process.
So it is very much recommended to follow the SLEPT concept. The given
implementation plan is suited to enter into China. NIES must go forward with
the prescribed implementation plan to enter and as well as to improve the
reputation and to reach its objectives.

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9.Fool, T., & market, H. (2014). Head of the class: Education is a key export
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