ABS ASSIGNMENT ON HIGHER EDUCATION SYSTEMS

Submitted To: Professor Macaranas

LT3 Section A: Enrique, Erika, Prashant, Svetank, Smita, Pramurto, Abhishek & Patrick

Q1) Explain how the Limkokwing University fit the typology of business models in higher education in Asia Pacific (Table 1 of Macaranas article).

Limkokwing University aims to provide the Malaysians a center to foster creativity, innovation and content creation. Currently, Limkokwing University spans across three continents with campuses in China, Cambodia, United Kingdom and Botswana. The institution may be examined through exploring the different dimensions of business models in higher education in Asia Pacific. Specifically, the factors discussed in the article Business Models in Asia-Pacific Transnational Higher Education which includes acting as a provider, financing and mobility will be analyzed. In terms of its provider dimension, Limkokwing University is determined to be a private institution. Note that provider refers to the one that bears the responsibility of managing the finances of the institution s operations. The university s administration and control resides solely on the institution s founder which is evident in its decision making process. For example, the decision to create a Limkokwing University Botswana campus arose from Tan Sri Lim s vision to equip the youth of Botswana with the option to study in a university that offers creative studies and business. The decision of Tan Sri Lim was further intensified by the leader s rapport and relationship with the government of Botswana which allowed him to exhibit his vision of Africa. Tan Sri Lim s concept of taking the Best of Both Worlds also drove him to set up various campuses in countries like Lesotho, United Kingdom and Cambodia. Limkokwing University s financing dimension is characterized as a mix of both private and public funding. Private funding basically comes in the form of tuition fees paid by students in all campuses. Public funding, on the other hand, comes in the form of scholarship grants obtained by students from their governments. In Botswana, for example, students may opt to acquire scholarship grants to the University from the government once they have achieved a certain level of credit. Lastly, Limkokwing University s mobility may be described as both a student and program mobility. The institution was determined as a student mobility program primarily because students are able study and learn across all Limkokwing University campuses across the globe. One specific initiative that displays this type of mobility is the Global Classroom which allows students to study in different campuses as they finish their degree. This was initiated in aims to enhance the students multi-cultural exposure to enhance their creative experience. Program mobility, on the other hand, refers to the institutions ability to parallel various programs across their global campuses. This may be carried out through technology transfers, knowledge/information sharing and collaboration.

Q 2) In what way is it different from traditional private universities? Public universities? Page 2 of 6

Differentiating traditional private universities and public universities from Limkokwing University can also be made using the 3 dimensions stated in the article. In terms of provider dimension, Limkokwing University basically operates like any private university where decisions are done either by the proprietor or by the board of trustees of the private university. However, traditional private universities usually have a managerial committee that manages the universities finances as well as decides on specific issues such as additional manpower, expansion, tuition fees and the likes. Public Universities on the other hand is governed by the national government and this governance includes almost all decision making processes in public universities. As Tan Sri Lim is the sole decision maker for Limkokwing, the government is the decision maker for traditional public universities. Financially, traditional private universities obtain their needed funds through payments of tuition fees made by student enrolled with private scholarships available for students that meet certain criterion. Lastly, just like Limkokwing University, public funding can come from scholarship grants provided by the government. Traditional public universities on the other hand generally are funded or subsidized by their governments with a portion of tuition fees which may be paid by the students. Lastly, comparing mobility dimensions by Limkokwing University with traditional private universities and public universities, traditional universities offers student exchange programs with other universities in other countries. This is somewhat different with Limkokwing University in which they are allowed to study in different Limkokwing University chapters worldwide. Traditional private universities also show their mobility by acquiring grants from certain international universities or private institutions to have a library or any resource center that would house resources and readings from other countries. In addition, traditional private universities have also started to open their doors to having foreign professors to increase cross-cultural learning. Public universities on the other hand usually have tie-ups with foreign institutions to have some of their students visit the host country as exchange students.

Q3) What are the Elements of Corporate Universities and for Profit Universities that may change in the future in the case of the reading? Use a Blue Ocean Strategy canvas to answer this.

The Blue Ocean frameworki To answer this question we will be first introducing the blue ocean framework, this framework consists of four steps to create new enterprise value. In the context of the subject tertiary education, we can see that the traditional western method of education has its merits but also has its severe

Page 3 of 6

limitations. This is largely due to the fact that is mostly transplanted form systems that had its roots back in the earlier times where it was only designed for the elite and the royals.

REDUCE Which Factors should be reduced well below the industry standard?

Eliminate Which of the factors in the Industry should be eliminated? Creating New Value

Create Which Factors in the industry should be created?

Raise Which Factors should be raised well above the industry standard? The Current System s Merits and Limitations As mentioned current higher education systems have their merits and their limitation. Starting off with their merits, it is known that higher education is arguably one of the most effective ways of bringing people out of poverty by providing the necessary skills for its graduates to earn a living. There are also existing private and public universities, the latter of which cater to the generally gifted students as the environment is very competitive. The former serves the student segment that opted to go for a private education or was not able to make it to the very competitive cut;but who have the funding to make it. Inexisting State Universities, usually the number and capacity is not enough to cater to everyone who would want to study. The alternative, which are private universities often charge much higher rates than the state owned universities. What complicates these matters worse is that the system in itself (usually in the k12 or in another education format) takes more or less 12 years for completion1. This

http://www.britishcouncil.org/usa-education-uk-system-k-12-education.htm

Page 4 of 6

makes it a largely impractical model for developing countries whose populations have to contend with scarce resources. Another factor in the traditional higher education system is that it is indeed traditional in many aspects, often arising from academic bureaucracy. This means degrees that may not be practical for current trends. Many universities decide on entrance based on the factor of numerical and verbal score (Ex. GMAT), while both are important, many institutions also give weightage to personality traits such as creativity, an example best shown in the Limkokwing University case. With regards to international awareness (although this is becoming less of a reality with the newer education models with greater international integration), universities had been fixated in the context of their home culture and ideology, often lacking global awareness. Corporate and For Profit Universities can create new courses for today s information, student demands and an increasingly competitive world, often much better than more traditional universities. With the advent of technology and ease of transport students can be offered a higher degree of connectivity with other cultures and increased exposure to different world views. Given the case of Limkokwing, Corporate and for Profit Universities can connect to its different markets across the world and offer the same standard of education regardless of the student s location whether it is a developed country like England or a developing country such as Cambodia. Given that the new degrees can be taught to anyone, not necessarily hailing from the k12 or similar educational system, we are able to reduce entrance barriers (creative skills and business entrepreneurship need not have too much emphasis on numerical or verbal scores), enabling it to capture a wider audience. Since these universities can focus only on the practical aspects, matriculation costs can be reduced. Corporate and for profit universities are also quick to adapt non classroom teaching methodologies such as online teleconferencing, making it the more practical choice for students who are located in isolated regions. This can be even more cost effective especially if a franchise or a global network has been established. With regards to inter university program exchanges, like their corporate counterparts in the consumer sector, profit and corporate universities will find it easier to engage in program exchange and team ups for as long as the arrangement is compatible and provides higher value. Compare that to traditional institutions where academic bureaucracy will set in negotiation whether the team up will be prestigious. Traditionally, graduates from older more established educational institutions often from developed countries had the upper hand in career selection because the perceived bias of better training. Corporate and for Profit Universities can bridge the gap by offering courses that are relevant but are neglected by traditional institutions as mentioned in the earlier paragraphs especially in today s creative generation. True to what Tan Sri Lim has mentioned, these new universities can harness the passions of the youth.

Page 5 of 6

The fourth aspect of the blue ocean strategy is raising certain aspects of the course well beyond the standard. For this private and corporate universities can be more proactive in finding the right course offerings and tailor fitting existing ones to be more practical to students. This trend was first seen in German Universities when they offered the modular approach. Lastly both private and corporate universities can play a role in making higher education more applicable to developing countries, there should be less emphasis in theory and more emphasis in practical application, standards for entrance should be relaxed. By not strictly adhering to all the other prerequisites we also raise the number of eligible people who could improve their and their countries status through higher education.

Blue Ocean Strategy for Private and Corporate Universities REDUCE 1) Costs such as matriculation 2) Physical Access barriers 3) Entrance barriers 4) Bureaucracy in inter university exchange

Eliminate 1) The bias towards older more established institutions 2) Barriers for a good education

Creating New Value

Create 1) Relevant courses 2) Global Connectivity 3) Equal standards for all

Raise 1) Practicality 2) Applicability to developing nations

http://www.blueoceanstrategy.com/abo/4_action.html Page 6 of 6