Having conducted a thorough analysis of GSM's internal and external environments the plan shall now outline specific strategic objectives for the school and outline the proposed methods to employ in order to achieve these objectives. Clearly, there are a variety of factors, internally and externally, which impact on the objectives devised as well as how the organisation proposes to achieve them. Simultaneously, given the rate of change and unpredictability in terms of the external environment, continual monitoring, evaluation and re-appraisal is necessary so that the GSM can strive to achieve a "strategic fit" (Mintzberg, 1994; Aaker, 1992) between its internal resources and its external environment, thus increasing the likelihood of success. As a result, the objectives set and the proposed methods of achieving them are not static and must be continually analysed in terms of their appropriateness, suitability as well as feasibility in light of the dynamics at play.
"Within the last two years, planning processes in higher education institutions have revealed that, as we know, times are changing. New competitive contexts are coupled with more risks to explore and address. Each year new factors or concerns emerge, but, so too, do characteristics or behaviours that help to define successful institutions." (Stamp, 2008)
The external analysis of the School's marketing environment domestically and globally, has highlighted some specific threats as well as opportunities for the establishment as highlighted in the preceding sections. In addition, the internal analysis has also identified a number of strengths which the School can use to its advantage as well as a number of weaknesses which must be addressed in order to achieve the objectives set. Given the fact that the GSM does not appear to be highly ranked in terms of the wider market in management education, rather than see this as a distinct advantage it actually highlights the potential for the organisation to elevate its position and carve out a niche in the market so that it is not directly competing with the likes of London Business School, Cranfield or Harvard. In this respect, its size, location and reputation in specific areas such as Health, Oil and Gas and Tourism could afford it certain advantages and differentiate it from the other competitors in the market. The usefulness of a strategic marketing plan cannot be over-estimated in terms of improving the likelihood of achieving the objectives set and as Hammond et al (2004) rightly assert, "Several authors (Kotler and Levy, 1969; Hayes, 1989; Miller et al., 1990; Swenson,1998) have discussed and demonstrated the applicability of marketing to higher education" (pg.732). Given the pressures in terms of funding as well as the intensity of competition globally, a well-devised plan is highly recommended and should substantially improve the School's strategic position in its market. As Dobson et al (2006) contend, what is important is that "the key issue that should unite all discussion of strategy is a clear sense of an organization's objectives and a sense of how it will achieve these objectives. It is also important that the organization has a clear sense of its distinctiveness" (pg.1). Given the size and market positioning of the GSM, this appears as highly relevant.
Defining Strategies at Different Levels of the Organisation
Strategy generally includes a specific set of objectives or goals and also deals with the steps and actions required in order to achieve the desired result or objectives. Within organisations, however, varying sets of objectives are evident, especially in the case of larger companies or multinational enterprises whose operations may span the globe as well as product markets being quite distinct from one another. Despite GSM not corresponding to such descriptions, the fact that its target market is essentially global coupled with the variety of products (courses) on offer, it is important to evaluate Marketing Objectives in light of the organisation's wider objectives in order to appreciate the relevance and significance of them within the organisation as a whole. This variety of objectives which exist within different levels of an organisation was highlighted by Porter (1985), yet much of his research was conducted on large US multinational companies and consequently, many have criticised the usefulness of his strategic tools in application to other companies as clearly the dynamics both internally and externally shall differ enormously from a small domestic player to a large multinational conglomerate. In this respect, it makes sense that within such organisations, different levels of strategy much co-exist, and should ideally, complement each other, or at the least, not conflict. Corporate goals are generally communicated by the leadership of organisations and these can vary enormously from divisional business units, or even from specific geographical locations. Simultaneously, objectives can vary substantially from the operational objectives which have been set for the organisation at lower levels.
Corporate Level Strategy
Johnson et al (2008) see corporate level strategy as being concerned with the "overall scope" (pg.7) of an organisation. This could be related to decisions to expand, enter new product markets or introduce new offerings, and do come into play in terms of the subsequent Marketing strategy to be developed and implemented. At this level, however, strategy is generally concerned with resource allocation and investment decisions to be made as well as being developed in line with shareholder expectations regarding returns. Often, such goals as defined at this level are in monetary or market share terms.
Business Level Strategy
At this level, strategy is concerned with specific strategic business units which can largely be defined as having their own product markets in which they compete. In the case of GSM, this would be exemplified by its efforts to promote the MBA course or the MSc in Marketing as well as specific courses designed for industry sectors in Tourism and health Management. In smaller companies such as GSM, where there may exist only one product market or a specific complementary set of brands in one market, arguably, there may be wide overlap between both corporate and business level strategy, yet as Johnson et al (2008) contend, it is usually better to attempt to separate these levels as the corporate strategy should provide a framework for the business units. Within such an environment, goals are set and arguably achieved more easily.
Operational/Functional Level Strategy
Operational level strategies are concerned with the various aspects within the organisation and the resources used in the pursuit of objectives. These tend to entail different policies and methods applied to specific disciplines such as HR, Finance, and Marketing as we are concerned with here. As Johnson et al (2008) state, "successful business strategies depend to a large extent on decisions that are taken, or activities that occur, at the operational level." (pg.7)
In light of this wider analysis of the issue of strategic management, the Marketing Strategy is vital as it is directly linked to the achievement of the overall goals, specifically, with the methods employed to actually achieve them, primarily through the variables of product, promotion, place and price, though increasingly, a focus on internal resources is advised in order to ensure that objectives are feasible and more importantly, attainable.
Marketing Objectives
Before defining specific marketing objectives it is deemed necessary that the School conduct an analysis of how the overall strategy is linked to their strategic information systems within the School. As highlighted by Wiseman et al (1985), the new realities in the 1980s and throughout the 1990s, particularly with regard to the developments which had occurred in the field of technology, implied new challenges for organisations. It is vital therefore that there is an assessment of current capabilities and how these can be developed further in terms of assisting and facilitating the achievement of objectives. As outlined by the authors, organisations must therefore look at the wider environment in terms of suppliers in the industry, customers and competitors, and increasingly in today's environment, the wider stakeholder community, "as the strategic targets of five strategic thrusts:
Differentiation
Cost
Innovation
Growth and
Alliance" (Value Based Management, 2011)
The relevance of these thrusts shall be subsequently highlighted in the following sections of the report but it is felt necessary to highlight the relevance and significance of them in terms of highlighting how the resources which the School has available to it, with a particular emphasis on how technology can be employed, can ultimately assist it in terms of achieving objectives as well as in terms of carving out competitive advantage in its market through providing a differentiated approach to that of competitors.
Where does the company want to be and where is it now? The question posed by performing Ansoff gap analysis of the company.
The analysis has highlighted that a large proportion of students (60%) within the School are currently from outside the UK and Europe. Although this is a significant market for the School and one which it wishes to further develop, there also appears to be distinct gaps in its current positioning, especially in light of a massive untapped market for executive education in the UK as well as the MBA course. Thus, objectives shall primarily be concerned with this area as it appears to offer most potential in terms of development, especially in terms of forging stronger links with industry, locally and nationally. Given the new Government's heightened focus on vocational and management training, there is much potential in this specific segment, and GSM has a distinct advantage in terms of its geographical location.
Increase revenue for school by 10% over next 3 years
Elevate position of school in the market compared to competitors in UK focusing on specific areas of expertise as well as the benefits of being smaller, thus more personal and offering heightened customer service levels.
Offer choice and availability to customers in terms of courses offered, developing appropriate courses in light of the wider external factors which highlight growth sectors in the economy, and further penetration of the management/executive training on a part-time basis
Increase brand awareness of GSM internationally to recruit more foreign nationals especially from emerging markets and the Middle East thus heightening school's image in terms of being culturally diverse and widening pool of experience
Improve customer service levels and monitor customer satisfaction levels, thus heightening relationship aspects of School with former and current students/staff.
Improve sales revenue in existing markets and grow sales in growing market segments, such as part-time/evening courses.
Recruit and build relationships with leading experts in specific fields of study and expertise, thus heightening profile in market and extending research areas.
Improve School's research profile through encouragement of staff to engage in more research and publishing, both independently as well as in collaboration with other academics, institutions and industry.
Target Markets
Clearly, the School wishes to target a rather diverse range of segments in the market given the variety of courses on offer in terms of subject areas as well as at undergraduate, post-graduate, PhD, MBA and Executive courses on offer. At the same time, the target markets themselves are geographically dispersed which presents specific challenges in terms of how to target such customers cost-effectively as well as in terms of overcoming some of the specific challenges posed by the variance in cultural factors. In addition, it has also been highlighted by the external analysis, that the UK itself has become an increasingly culturally diverse nation and one in which females have increasingly taken on more prominent roles within business and society in general. There is an overwhelming opportunity to capitalise on this specific segment through highlighting the flexibility of the programmes on offer as well as taking into account child-care and other family commitments which may deter some individuals from pursuing courses or furthering their own personal development. The GSM should perhaps look at partnering with local authorities as well as private sector nurseries in offering flexible childcare facilities, etc. funding may also be available for this.
Overall, the strategy is focused on increasing sales revenue in the short-medium term, with a view to increasing available funds for investment in improvement of and additional facilities in the medium to long term, including recruitment of more eminent academics. There is also much potential to elevate the School's reputation, already regarded highly by many, and further market/product development should be executed from this starting point, focusing on increasing sales with a view to enhancing product and service offerings which shall appeal to other target markets, especially within specific industry sectors where courses can be developed with them specifically in mind. A feasible option may also be to attract additional funding from independent sources such as entrepreneurial-type individuals or venture capital associations, even through offering partnership investment opportunities, or through collaborating in research with leading companies.
Target Marketing
Source: Laukamann, date unknown
There are a number of options available to GSM in terms of segmenting the market. The predominant segments identified for proposed targeting and positioning are as follows:
By subject/discipline in terms of the courses available
By degree - undergraduate, post-graduate, executive-level, vocational
By status - full-time, part-time, open-learning, ICT
In addition to the division in terms of the products available, it is also feasible to segment on the following basis:
By geographic market
By age/sex of students
In the case of post-graduate and other courses, by industry sector experience
Clearly, there needs to be more closely aligned segments if the strategy is to be executed effectively and as a result of the analysis undertaken, the following target segments have been identified and subsequently, the marketing tactics employed shall be an attempt to directly target and appeal to these specific segments. Despite the variances which exist, the methods employed shall attempt to appeal across all of these segments which shall allow for more consistency in terms of positioning the GSM brand in the market as well as being more cost-effective. Given the international nature of the student body as well as the potential for recruiting a more diverse international customer base going forward, the target segments shall be predominantly defined by geographic location, with more precise targeting at lower levels in terms of discipline, age etc.
Main Target Segments Identified for Further Market Development:
UK Market - target specifically post-graduate courses at specific industry segments/professional groups such as business leaders, accountants and legal professionals across all sectors though predominantly within finance and health management given School's expertise in the area.
Middle East Markets - concerted effort to target both undergraduate and post-graduate students in the region as much potential has been identified in these markets. Given the importance of the oil & gas sector in this region as well as the School's reputation for courses in this field, there is a clear match between customer needs and what the School can offer which merits further market development and penetration.
Emerging Markets - given the increasing significance of many emerging markets across all industry segments globally, this appears as currently an untapped market in terms of other institutions in the sector specifically targeting such segments. Of particular relevance is the fact that despite economic progress at astounding rates, disposable income is not as high in comparison to Western standards and thus the availability of funds for further training, particularly with regards to executive education, is not as available as in Western or other more developed markets. Within this segment, it is believed that the School's pricing policy which is generally lower than some of the leading schools, shall appeal to these markets. There is also significant potential to offer open/distance learning courses facilitated by ICT which shall also overcome some of the more tangible obstacles such as distance and costs involved.
The company has to decide who it wants to target, and what target market would offer it the best opportunities regarding increased revenues and profits. It is also important to identify other existing gaps in the market on a continual basis in order to assess where competitors are currently not operational and wherein there may be potential for market and product development. As highlighted earlier, it is assumed that GSM would be better positioned in a niche segment rather than directly in competition with the likes of the leading business schools such as Wharton, INSEAD or LBS. Given the reputation and longstanding heritage of these organisations in the market, it is unlikely that trying to "jockey for position" (Porter, 1979) amongst these players would be a worthwhile exercise. Thus the distinctiveness, uniqueness and speciality aspects of GSM should be highlighted and allow it to carve out a niche in specific sectors of the market and thus increase the likelihood of developing and sustaining a competitive advantage. Success in terms of increasing revenues from these segments should also allow the company to further invest and develop its internal resources and in time, position it more favourably alongside some of the considered leaders in the market, though this is viewed as a more long-term strategy to pursue and one which is not feasible at present. By focusing on specific segments not currently being served and thus carving out expertise and reputation in specific research areas shall also increase the likelihood of the School in attracting more prominent academics as well as eminent leaders of industry, and subsequently elevate its profile and positioning in the market further.
Source: Laukamann
As the above depiction highlights, the target segments must also be selected in light of the available resources of the organisation itself, not just in financial terms but in relation to more intangible resources such as staff, facilities etc as well as in light of competitors' activities.
Positioning
"Institutional ability to manage positioning and reputation is also increasingly compromised by the extent to which the volume of corporately produced information is eclipsed by user generated communications and content." (Stamp, 2009)
In line with the above mentioned strategy and target market, the company could on the whole maintain its current market positioning, though it should seek to gauge some indication of how consumers see this positioning in the market, and how they view GSM. From here, it can be established the current strengths of the organisation's position in the market as well as highlight any weaknesses on which it can focus to develop and improve. The flexibility and availability of specific courses, with the target markets in mind, should be the main thrust of the positioning but price shall also be relevant, especially in light of attracting students and executives from emerging markets and should be highlighted as a key differentiating factor from other players in the market, particularly the leading schools. The geographical location and heritage of the school must also be fully capitalised upon, again in light of attracting foreign students, but also within the UK given the reputation, historical connotations etc, of the area as well as its excellent transport links to Central London. This could afford it a distinct advantage against other players who may be more remote as well as more central, and thus the living expenses related to rents etc. shall increase substantially. The Greenwich "experience" should be used to its full advantage.
Source: Laukamann, date of publication unknown
Of particular relevance in terms of positioning the School and setting it apart from competitors is the key elements of what it actually offers especially the flexibility of part-time, evening and weekend courses as well as the 3 semester calendar which again, sets it apart and ultimately differentiates it from other players, with course start dates in February, June and October. This should make it more appealing to a wider variety of clientele, particularly females who may have family responsibilities etc. as well as those with work commitments in the case of executive-level courses. This makes GSM stand out as being responsive to the variances in its client base whose priorities, commitments and motivations shall differ and impact on their ability to actually pursue a course of study.
The size of the School relative to other players should not necessarily be viewed as a weakness but as a Unique Selling Proposition and used in terms of highlighting the benefits this affords to it. Being small may actually heighten its profile by focusing on its unique skills sets within specific areas of expertise as opposed to larger schools who actually may offer more generalised courses with more Westernised (US, Europe) focus in terms of management education. There is also an overwhelming emphasis in larger schools on larger multi-national business and thus the relevance to many smaller organisations or those involved in the non-profit, health or public sectors is deemed low. There is a distinct opportunity to position itself apart from such players through more attention to specific customer needs and highlighting its specific areas of expertise so that customer requirements are more effectively met.
Source: Laukamann
Competitive Advantage
"The fundamental question in the field of strategic management is how firms achieve and sustain competitive advantage" (Teece et al, 1997, pg 509)
Many authors on the subject of strategy emphasised the significance of focusing on a more internal perspective towards strategic development in terms of the resources a firm may have available to it rather than the external view in terms of strategy development, as proposed by the likes of Porter (1979). Such authorities contended that focusing on internal resources and competences allowed a firm the best chance of executing a successfully strategy and ideally of creating the right conditions on which to build competitive advantage in its markets. Barney (1991) is generally considered as the "father" of the Resource Based View of the Firm and his theory continues to be applied extensively in organisations today, indeed, it has arguably gained even more prominence in the 21st Century. Many authors before him such as Mintzberg (1984) and Prahalad and Hamel (1989) also highlighted the significance attached to internal resources or "distinct competences". These authors believed that organisations could, through concentrating their efforts in developing internal resources, would be more likely to achieve and sustain favourable competitive positions in their markets and lead in specific skill sets, thus creating advantage in key areas over competitors. These resources, however, do not provide advantage on their own or through remaining "static" and are only of strategic value when they remain Valuable, Rare, Inimitable and Nonsubstitutable (VRIN) as highlighted by Terwiesch and Ulrich (2009). There appears to be a real viable opportunity for GSM to further develop and improve upon their existing resources, particularly within the realms of the current academic staff as well as through technology which shall facilitate them to broaden the range of products on offer as well as appeal to a wider target audience.
"Mintzberg reminds us that strategy formulation also occurs as a creative and, at times, subconscious act which synthesises experiences to form a novel strategy. Ohmae (1984) accepts that strategic thinking starts with analysis but stresses creative insight in the formulating of great strategies." (Henry, 2008, pg.10)
Source: http://www.istheory.yorku.ca/rbv.htm
The challenge for GSM is particularly in the realm of human resources as well as in developing the technology resources it has available to it which would facilitate it further in terms of providing open and distance learning courses through ICT as well as in terms of further promoting the image and positioning of the School in the market. Its size does present some distinct challenges in terms of its ability to attract talent in the realms of specific research areas but there is, nonetheless, an expert pool of available talent currently employed and these are not being viewed as being utilised to their full potential. Through development of these resources and encouragement to them to publish more, collaborate with external institutions and relevant organisations such as business and government, there is much potential to fully develop this resource base and competitive advantage. As Hamel highlighted in 2000, "It pays to hire the best. You can't build a forever restless, opportunity-seeking organisation unless you're willing to hire ever restless, opportunity-seeking individuals." (Stamp, 2009)
Marketing Strategy
Product/Service
In summary, the proposed strategy is as follows:
Seek to differentiate from competitors in the marketplace through more focus on specialist areas particularly within healthcare sector, public sector and oil & gas in Middle East.
Enhance the current product offering by expanding range of products available by introduction of open/distance learning through improvements to existing and investment in further development of technology capabilities.
Consider opening up "virtual" university campuses in specific markets whereby academics may make visits several times a year to visit open-learning students in their markets as well as through offering e-learning tutorials etc.
Seek to establish relationships with external bodies particularly within government and industry to heighten profile and expand through specifically tailored courses aimed at these stakeholders
Pricing
Pricing should be competitive and marginally lower than other players in the market, particularly given current recessionary pressures and continued uncertainty as to future economic recovery whereby many leading organisations have postponed or abandoned executive education for the meantime. Government initiatives to further the training of the British workforce and reforms taking place within health and benefits sectors may actually provide funding opportunities for the School and further collaboration with these stakeholders could allow School to maintain its competitive price offering in the market and thus widen the appeal to more prospective students. Open and distance learning courses as well as part-time courses also offer flexibility in terms of spreading costs for students.
Promotion
This is considered as an extremely important element of the Marketing strategy as it is necessary to improve the positioning of the GSM in the wider market domestically and internationally. Clearly, a major factor impacting on the feasibility of this element of the marketing mix is the cost involved which can reach very high levels. However, given the specifics and preciseness of the target segments defined, all efforts should be accurately targeted so as to achieve maximum benefits of any costs involved. In addition, increased collaboration with external stakeholders (government agencies, other schools/universities, businesses) should assist on offsetting some of the costs involved as well as offering benefits of complementary promotion and subsequent scale economies.
The website is currently not viewed as being particularly effective in promoting the School and further investment is needed in this area, including perhaps the employment of some sort of external agency to assist in terms of improving search optimisation, etc. Much more attention should be directed at the specialist nature and expertise of some of the prominent courses and the staff so as to appeal directly to specific segments of the market.
Social media channels are not being fully utilised in terms of the potential they offer. Comparison with other schools in the UK as well as in the USA highlights a rather poor utilisation of channels such as Facebook and LinkedIn. LinkedIn is actually viewed as being quite significant and could be used much more effectively. Presently, the School only has 24 followers on its LinkedIn page with only 30 employees actually being members. Current employees should be encouraged to submit profiles on to this platform in order to elevate their own personal career profiles, connections etc. as well as assist in heightening the profile of the School itself in terms of the internal resources it possesses. Establishing relationships with other members in leading positions in industry and/or other schools could also benefit GSM greatly. In terms of previous/former/current students, encouraging them to engage in such platforms shall promote information exchange and create a sense of belonging to the GSM community. It may also be effective in highlighting the successes of former students in terms of their career development and professional status as well as any links they may have with notable/leading companies/government bodies, further heightening the reputation of the school within specific communities.
In terms of published print, costs involved in major publications such as academic journals and business press can be very high. More specific targeting in target country publication needs to be evaluated as well as in specific industry publications or perhaps through establishing links with other external bodies, particularly companies/business so as to appeal to employees who may be interested in pursuing further education and/or executive courses. Attendance, even on a small scale at specialist trade shows/exhibitions may also be worthwhile form a networking perspective in gauging market perception of the school as well as helping promote it, again, with specific area such as health, tourism etc. in mind
Channel of Distribution
The current physical facilities offered by the Greenwich campus are regarded as excellent though need to be continually monitored to ensure it is offering the best service to students in terms of the range of facilities offered. Childcare was highlighted earlier as potentially allowing the School to further tap into the female sector, which incidentally, is predominant in terms of the demographic profile of health workers, but other facilities such as catering, local accommodation etc. should also be monitored in terms of how they meet customer expectations and thus identify areas of improvement.
Open Learning and distance Learning is viewed as offering real potential for further market development, particularly in further afield locations. Many other institutions, University of Strathclyde in Scotland, for example, have established effective and successful "remote" Schools in Singapore, Greece and other areas of the Middle East. This is deemed as an important strategic objective for the School and could offer enormous opportunity, especially in emerging markets of the world. It does, of course require substantial investment and needs to be closely evaluated, perhaps attempting it primarily in conjunction with a partner school in order to minimise the risks involved. Nonetheless, the rewards to be gained could far exceed the investment and risk involved and offers the School a viable opportunity to carve out specific advantage within key markets and sectors of industry expertise. Partnering with foreign schools/establishments should also be considered, again, to minimise risks as well as allowing "market insiderisation" (Ohmae, 1989) in terms of local cultural factors which could impact upon any strategy embarked upon. Such a strategy should also heighten the school profile not just in these markets but at an international level, further promoting the School's diversity and range of experience in terms of both culture and industry.
