The Management School Lancaster University

MNGT220 Week 5 Tutorial 3

Strategic Positioning The Environment PESTEL Framework The 5 Forces Framework

PESTEL Framework
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1. Undertake an audit of the tertiary education sector environment. What are the key environmental influences on organisations in that sector? What are the main drivers for change?

PESTEL Framework
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Political: Government agenda to have a greater percentage of students enter higher education. Other government agendas (Tuition fees). Governmental University rankings.

PESTEL Framework
The Management School Lancaster University

Economic: Student fees, student loans, funding sources. Cost of living in UK compared to other countries (very high), how the funds are allotted.

PESTEL Framework
The Management School Lancaster University

Social: Status of higher education in society. Equality of opportunity & access. International students. Influence of university on local councils and region.

PESTEL Framework
The Management School Lancaster University

Technological: E-learning (distant learning and the Open University). Computing skills requirement for students. Plagiarism (databases to check work), Collaboration of universities

PESTEL Framework
The Management School Lancaster University

Environmental: Amount of paper used. CO2 emissions. Energy consumption.

PESTEL Framework
The Management School Lancaster University

Legal: EU-wide harmonisation of degrees. Ethical considerations (research in genetics etc.) Safety and security (research in nuclear energy). Industry collaborations.

Key Drivers of Change

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Globalisation of research. Globalisation of education market. Major technological changes (elearning) bring about changes in teaching & learning methods and effectiveness of courses. Political pressure to deliver vs. free education and free research.

Key Drivers of Change

The Management School Lancaster University

2. Based on your identification of the main trends in 1 above construct two scenarios (logically consistent, possible futures) as a way of analysing the environmental influences.

Key Drivers of Change

The Management School Lancaster University

Scenarios project how the different key environmental influences and drivers of change might turn out. The analysis helps understanding the business set in the environment and how the business model might cope with change in the drivers of change.

Key Drivers of Change

The Management School Lancaster University

Possible scenarios: Information age: trans-national, global research & global information & competition, harmonisation of degrees, etc. The opposite of scenario 1.

Five Forces
The Management School Lancaster University

3. Choose an industry that you have some knowledge of; identify the strategic characteristics, which distinguish organisations in that industry and construct a strategic group map(s). What does the map suggest to you in terms of strategic

Five Forces
The Management School Lancaster University