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National Economics University: Issues of Beta Education Business and Solution Suggested
National Economics University: Issues of Beta Education Business and Solution Suggested
National Economics University: Issues of Beta Education Business and Solution Suggested
Report
Class: English.TT2
The report draws attention to the fact that the Beta were remarkably
successful in the beginning of its operation and achieved great profit, but all the
indicators changed negatively when the company started to expand its business.
The results of data analyzed show that there are many defects in the business
strategy of the company.
5. Conclusion.
2. Background
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Math classes for Junior High School students who are vying to attend High
School for Gifted Students.
Each year, there are 3 different Math courses for different groups of
students depending on their targets whether they want to reach the specialized
classes for Math or foreign languages or non-specialized, but the city leading
schools. With a view to fulfilling the mission of re-recognizing Vietnamese
education in the world, during 2 years of hard work, Beta Education has been
formed with an image of high-qualified teachers, well-trained staff and the motto
“Humanism – Passion – Creation – Efficiency” is considered to be the core value
of the company. The leader of the company said that his will was to turn Beta
Education into “Harvard of Vietnam”. In order to make the dream come true, he
set out the plans for the coming years:
1. Until December 31st, 2019, there will be 10 active facilities in
Hanoi.
2. In 2020, the company plans to open 20 more facilities in Hanoi .
3. September 5th, 2022, Beta Education System will be inaugurated.
4. September 5th, 2023, Beta Valley – A symbol for Vietnamese
education – is going to be constructed.
5. September 5th, 2028, Beta becomes the “inspirational ecosystem” –
leading the market with supply chain of five-star services which
can be seen in big cities.
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3. Problem
After 2 years succeeded in running the first facility, Beta Education started
to operate their second center, in order to archive their founder’s pursuit: running
a chain that included 30 facilities in Hanoi. Unfortunately, this new facility has
not been working as efficiently as the directors had expected. The chart below
shows the net sales of both facilities since November 2018.
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The statistics show that both facilities got quite impressive net sales every
month, except for February 2019. As Tet holiday occurs in the month, the
number of lessons in February greatly decreased, as a r the sales in February go
down a little bit. However, instead of the net sales, the company’s net profit will
definitely demonstrate the efficiency of the business. Please have a look at
another chart – net profit of two facilities.
Through the chart above, we are now aware of how ineffectively the
second facility has been working. Since it was operated for the first time in
November 2018, this new facility has been recording loss for 4 out of 5 working
months. While struggling with the loss, some employees decided to quit their job,
this has led to lack of officers in this facility. Our research about the situation in
this company has revealed some significant mistakes, three of them are such
basic blunders that often get recognized in new business.
Firstly, the new facility is little known by parents and students as Beta
Education didn’t put enough effort in publishing it. Not only avoided doing any
marketing methods, they rarely showed the information about the new center to
their students studying in the first facility. As a result, there are very few classes
at the new facility, which also means that the second facility couldn’t make up
for the loss.
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The second mistake of Beta Education is that the place selected for the
second center has an extremely high rented price. The rented price often accounts
for nearly 44% of total expenses cost each month – that means too much. Some
employees consider rented price as financial burden of this new facility.
Last but not less, there is a problem with the courses fee that the company
is providing. Compared to the average price of the same courses from other
providers, the price that Beta Education applying is quite high. That’s another
factor contributed to the fact that they couldn’t attract many students to their
center.
4. Solution
Understanding the tough situation that Beta Education are dealing with,
our group started to find out some of the best solution for the company. We also
had a research by directly interviewing with 60% employees at the second
facility for the idea to solve the recent problems. As soon as the interview
finished, a group meeting was holding immediately. In that meeting, our group
came up with 3 ideal solution for 3 problems of the company.
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students and maybe teachers joining the system, boosting the company’s profit
and the most important factor – raising the company’s reputation.
The price of the courses is also an important element. The recent problem
is that the course fee in Beta Education is a bit higher than the fee of other
competitors, that make Beta’s courses less competitive. Our research showed that
if the price of a course is more than 90% of the recent fee, it would be hard for
the company to attract more students, but if the price go down for less than 60%
of the recent price, the company will suffer from loss. Our group agreed that the
ideal solution for this problem is decrease the course fee to 75% the recent price,
as it would not only help to attract more participants but also make profit for the
company.
5. Conclusion
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In summary, Beta Education is a potential company that has great vision
and high level of teaching quality. However, due to the inappropriate marketing
strategy and money investment, the company has encountered many problems
which eventually caused decline in both the revenue and the number of students
registering for classes. We suggest that the company should simultaneously
relocate their new facility and run a marketing campaign, which focus on
introducing the second center as soon as possible, since there is no individual
solution could put two and two together those troubles. With our deliberate
solution, we hope that we would be able to help the company to overcome the
current difficulties as well as to become one of the leading educational
organizations in Vietnam’s market.