Marketing Plan for opening IIM at Singapore

International Business Marketing

Marketing Plan

For setting up

Indian Institute of Management

In Singapore

Course Instructor: Dr Christopher Clott

Student Name: Kaushik Rana

Roll Number: 2005128

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Executive Summary

IIM-Asia Inc, the Alumni chapter of IIM in Asia intends to set up an IIM outside India. The idea is to

make IIM a global Indian brand and cater to the demand for high quality Indian education at affordable

rates. IIM-Asia Inc, has hence chosen to set up a satellite campus of IIM in Singapore.

The global education services market is estimated at 2.2 trillion dollars of which the market in Asia is

about 37 billion dollars. Singapore is known to be a safe, modern city with good infrastructure,

communication networks. The Government of Singapore is keen on promoting Singapore as an

Educational hub and Global Schoolhouse so as to attract well-known institutions, skilled migrants and

world-class corporations to Singapore, who all in turn will contribute towards the betterment of the

Singapore economy.

Singapore also has a large group of English speaking, professionally qualified people. 32% of the

people living in Singapore prefer to do a business education and there is a growing demand of foreign

students (apprx 45%) for management education in Singapore. 32% of the people in the age group of

25 to 29 has upgraded theirs skills in the last 5 years. Thus this represents a very attractive market for

providing management education.

Already there are more than 50 foreign institutions who are offering courses in management, some

even in alliance with local institutes. Brand analysis shows that the main competitors of IIM are Insead,

GSB Chicago, NUS and S.P. Jain. However, the courses offered by the institutes are ostly and catering

more towards the executive population. Going by the huge interest in India, IIM would offer an Indian

MBA at affordable rates to people between 2 to 8 years work experience from any nationality of the

world. The quality of student intake and pedagogy will not be compromised.

The 1 year management programme will be called “India International Management Programme”

and taught by the faculties of IIM-Ahmadabad, Bangalore, Calcutta and Lucknow. The institute will be

set up at Sembawang Road (Singapore) and since there is a high demand for Finance and sales

professionals, the courses offered will help people major in them. Road shows, web-site, word-of-

mouth advertising by the Alumni will be used to reach the people.

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Table of Content

Introduction...........................................................................................................................................4Indian Institutes of Management..................................................................................................4Analysis of Singapore (host country)...........................................................................................5

Cultural:..................................................................................................................................................5Education:...............................................................................................................................................5Political:..................................................................................................................................................6Economic:...............................................................................................................................................6Social:.....................................................................................................................................................7

Market Audit and Competitive Market Analysis.......................................................................8Advantage of Singapore:.........................................................................................................................8Popularity of Business Education in Singapore:.....................................................................................8Employment and Industries:...................................................................................................................9Competitor offerings:..............................................................................................................................9Market Size:..........................................................................................................................................13Government focus on Education:..........................................................................................................13Government Regulations:.....................................................................................................................14

India-Singapore..................................................................................................................................15MBA Service product offering.......................................................................................................17

Programme Details:...............................................................................................................................18Evaluation of the Service Product:........................................................................................................20Facilities:..............................................................................................................................................21Curriculum:...........................................................................................................................................21Admission procedure:...........................................................................................................................22Target Market:.......................................................................................................................................22Expected Sales:....................................................................................................................................22Revenues and Profit:.............................................................................................................................22Promotion mix:.....................................................................................................................................23Long-term plans:...................................................................................................................................23

Conclusion............................................................................................................................................23Exhibits..................................................................................................................................................24Appendices..........................................................................................................................................34References...........................................................................................................................................37

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Introduction

IIM-Asia Inc, the Alumni chapter of students passing out of the IIMs in Asia have decided that they

would set up a satellite campus of IIM in Singapore which will have a 1 year management programme

called “India International Management Programme” taught by the faculties of IIM-Ahmadabad,

Bangalore, Calcutta and Lucknow. The financing and management of the institute shall be done by the

Alumni while the directors of the 4 IIMs and some distinguished Alumni will sit on the board of the

Institute. Discussions are on with the Government of India to permit them to use the name IIM outside

India on payment of royalty. All measures shall be taken to maintain and enhance the brand and build a

global organization. This is the marketing plan of setting up IIM-Singapore that includes the reason for

choosing Singapore, analysis of the Global Education market, positioning the IIM brand in Singapore

and the marketing mix require to be done in the short and long run to ensure success of this venture.

Indian Institutes of Management

The Indian Institute of Management was set up by the Government of India after a team visited some of

the some of the leading business schools of USA and recommend measures to develop professional

management in India on similar lines. The first two management institutes were set up in Ahmedabad

and Calcutta. In the initial stages, these institutes offered educational programmes in Executive

Development but later started the flagship 2-year MBA Programme in 1964. Over the years, 4 other

IIMs were established in Bangalore, Lucknow, Indore and Khozikode and these institutions emerged as

premier management institutions, comparable to the best in the World for teaching, conducting

research and providing consultancy services in the field of management to various sectors of the Indian

economy. IIMs being role models have shared knowledge and skills with other institutions to improve

their quality and standards in management education. IIMs have earned an international reputation for

the quality of their alumni. Illustrious alumni include IMF chief economist Raghuram Rajan, Pepsico's

Indira Nooyi and management guru CK Prahlad. Today hundreds of alumni are well established in

USA, Europe, Dubai and Singapore and have formed formal associations called IIM-USA Inc, IIM-

Europe Inc, IIM-Asia Inc. As one of the alumni mentions, "We are a very well known and coveted

brand in certain pockets of the world. But, we want our brand to be a coveted global brand," Hence the

idea of a global IIM Inc was mooted by the IIM alumni. Hence, the alumni feel that the first step would

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be to set up a base outside India.

Analysis of Singapore (host country)

Cultural:

Singapore consists of a set of islands between Malaysia and Indonesia in the southeastern part of Asia

(see Exhibit 12). It has a tropical climate (that is hot and humid) with two distinct rainy seasons in a

year. It has just about 1.64% of arable land.

There are 4 official languages – English, Malay, Mandarin and Tamil. Malay is the official language

but English is the primary means of communication in educational institutions and administration.

About 35% of the population speaks Mandarin, 23% speak English, 14.1% Malay and the rest speak

various Chinese dialects or Tamil. The government of Singapore is promoting the use of Mandarin.

Education:

Lacking natural resources, Singapore relies heavily on human resources and manpower and must

continue to produce high-end citizens and knowledgeable employees in order to remain a competitive

economy.

Exhibit 3 gives the breakdown of educational qualification of Singaporean residents. The education

profiles have improved with an increase of tertiary education because of expansion of educational

facilities in the country. As we may note, there is a high proportion of educationally qualified residents

in Singapore with about 16.96% university graduates of which 81% are of Chinese origin, 11.5%

Indians and 2.5% Malays. The number of people without any formal qualification has dropped from

19.6% in 2000 to 16.4% in 2005.

.

The Government of Singapore (GOS) is also willing to invest in education systems to maintain the city-

nation as a competitor and an educational hub. Singapore is a service sector economy; the island nation

relies on human capital to develop their economic success (Ministry of Manpower). Continued success

is dependent upon how well the workforce performs in their respective occupations. Therefore it is es-

sential that Singapore maintain a work force with high standards by developing their knowledge and

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skills throughout their career. Hence, education and training plays a key role in this knowledge-based

economy.

Political:

Upon independence in 1965, Singapore adopted a pro-business, pro-foreign investment, export-

oriented economic policy framework, combined with state-directed investments in strategic

government-owned corporations. Singapore has what its government considers to be a highly

successful and transparent free-market economy. The government uses public opinion and feedback

when deciding policies, instead of rigorous lawmaking procedures. The government has a clean,

corruption-free image and Singapore has consistently been rated as the least-corrupt country in Asia

and amongst the top ten cleanest in the world by Transparency International. The People’s Action Party

is the dominant party in Singapore reelected continuously since independence; currently headed by PM

Lee Hseien Loong who succeeded PM Goh Chok Tong.

In order encourage foreign investors to develop industries, the government has set up the Economic

Development Board (EDB). EDB has many branch offices all around the world, including countries

like the USA, Britain and Japan. Another duty of the EDB is to set up regional industrial estates with

other countries. This will also help the industries in Singapore venture overseas.

The Government also set up SPRING Singapore, whose responsibility is to enhance the

competitiveness of enterprises for a vibrant Singapore economy. Their focus is to champion enterprise

formation and growth – through our network of valued relationships and resources – to nurture a host

of dynamic and innovative Singapore enterprises.

Ministry of Education (MOE) handles education related matters in Singapore.

Economic:

Singapore’s economy has grown on average 8.0% from 1960 to 1999. Its strategic location on major

sea lanes and an industrious population have given the country an economic importance in Southeast

Asia disproportionate to its small size. Singapore enjoys stable prices, and a per capita GDP equal to

that of the four largest West European countries. The economy depends heavily on exports, particularly

in consumer electronics and information technology products. Its GDP is $121.5 billion (2006 est.)

with a growth rate of approximately 7.4% (2006 est.) and GDP per capita of $30,900 (2006 est.). Its

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primarily a services economy with 66.2% (2006 est.) in services and 33.8% in manufacturing

industries.

It has a labor force of 2.4 million (2006 est.) and unemployment rate of about 3.1 % (2006 ets). 39% of

the labour force is employed in financial, business, and other services, 18% in Manufacturing, 6% in

construction, 11% in transportation and communication and rest in other categories. The major

industries include electronics, chemicals, financial services, oil drilling equipment, petroleum refining,

rubber processing and rubber products, processed food and beverages, ship repair, offshore platform

construction, life sciences. Its major export partners are Malaysia 13.3%, US 10.4%, Indonesia 9.6%,

Hong Kong 9.4%, China 8.6%, Japan 5.5%, Thailand 4.1% (2005) and import partners are Malaysia

13.7%, US 11.7%, China 10.3%, Japan 9.6%, Taiwan 5.9%, Indonesia 5.2%, Saudi Arabia 4.5%, South

Korea 4.3% (2005). It has free trade agreements with United States, Korea, European Free Trade

Association, Australia, Jordan and India and close economic ties with host of other countries including

Japan.

It has excellent communication network with 1.848 million (2005) main line telephone subscribers,

4.385 million (2005) mobile cellular users, 2.422 million (2005) internet users. Singapore has state-of-

the-art infrastructure with 9 (2006) airports, 3234 km of paved roadways (including 150 km of

expressway) and 1 port. Because of all the above factors, Singapore has attracted investments from

more than 7,000 multinational corporations from the United States, Japan, and Europe. Foreign firms

are found in almost all sectors of the economy.

Social:

The last 2006 census gives the population of Singapore at 4.48 million people and is the second most

densely populated country in the world. Singapore is a multiracial country with a majority population

of Chinese, with substantial Malay and Indian minorities. 80% of the population is Singapore citizens

and Permanent Residents (collectively termed 'residents'). Of this group of about 3.6 million people,

Chinese form 75.2%, Malays form 13.6%, Indians form 8.8%, while Eurasians and other groups form

2.4%. Exhibit 1 gives the ethnic composition of the population over the last few years. Exhibit 2 shows

the distribution of population in Singapore and interestingly 76% of the population fall in the age group

of 15-64, with a higher proportion of women compared to men.

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Market Audit and Competitive Market Analysis

Advantage of Singapore:

Singapore is a favourable destination both for industries and education because of Government’s proac-

tive efforts (see Exhibit 4). Industry and education are symbiotically dependent on each other and the

Government of Singapore has promoted both making Singapore a highly attractive destination.

The industries of Singapore are one of the most developed around the world. The reasons being

1). Singapore has one of the best ports and airports in the world to help in the efficient export and im-

port of goods.

2). It has good transportation infrastructure within Singapore.

3). Excellent education system has provided it with a highly-skilled labour force.

4). Proximity to expanding Asian economies like India and China

Singapore is among the fastest developing educational hubs in the world. The reasons being:

1). A safe, modern city with an affordable lifestyle and governed by a system of strict laws. Low cost

of living helps student manage their costs while applying themselves to learning.

2). Singapore's English language competencies and strong international reputation for quality education

makes it easier for brand-name institutions to set up an International campus and aids international stu-

dents seeking a good degree in a stable environment with comparatively lower living costs.

This is the closest to having the best of both worlds: a sleek, cosmopolitan, tech-governed city with a

strong sense of community and at-homeness, with an affordable and modern learning infrastructure that

seamlessly blends both traits. With the growing number of industries, it makes it easier for students to

get a job at Singapore.

Popularity of Business Education in Singapore:

Exhibit 5 shows the percentage of university graduates in various disciplines. We may note that the

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maximum number of people (about 32%) prefer to study Business Administration in Singapore of

which 45% students are from overseas countries. This shows that Singapore is considered as a good

place to earn a management degree by both residents and foreign nationals.

Analysis from the Singapore Government website shows about 32% of young adults in their late

twenties and thirties (mostly 25-29 years of age) in 2000 upgraded their educational attainment to

university level during 2000 – 2005 from earlier 25%. It is expected that this trend will continue

making prospect of business education by Singapore residents high. Hence, this is an attractive market.

Employment and Industries:

Exhibit 6 and Exhibit 7 give break-up of income from work and respective industries. As we may note,

73.59 % of the people work in services industries. We may also note that there is a higher proportion of

people earning above S$ 10,000 pm in Financial and Business services compared to manufacturing.

Data from GOS shows that the largest increase of occupation has been in Financial & Sales Associate

Professionals (21.3 % compared to 2005) followed by Shop sales Workers (20%), Department

Managers (17.9%), IT professionals (16.4%). Also to note is that the total hours worked per week by

professionals in Singapore has increased significantly to average 48.4 hours per week. The proportion

who worked 60 hours or more per week increased from 17 per cent in 2000 to 19 per cent in 2005. This

clearly shows that there is a huge demand for professionals in Singapore.

Competitor offerings:

International B-schools in Singapore:

In 2005, Singapore hosted more than 70,000 international students, drawn to the offer of an extensive

range of high-quality educational programmes, and the promise of a safe, cosmopolitan environment.

Singapore's vision of becoming a Global Schoolhouse has led to the cultivation of relations with

foreign universities, thus resulting in the 15 leading international universities that now call Singapore

home. These include MIT, INSEAD, Johns Hopkins University, University of Pennsylvania's Wharton

School of Business, University of Chicago Graduate School of Business, Georgia Institute of

Technology, Technical University of Eindhoven, Technical University of Munich, Shanghai Jiao Tong

University and Stanford University. Singapore has more than 50 key local education providers catering

to international executive programmes and corporate training. Exhibit 10 gives a list of foreign

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institutions and their local partners in Singapore. The list is classified in various categories based on the

quality of education provided.

Thus, Singapore couples diverse Asian school systems with Western-styled education practices making

it a truly global education hub, where students have the best institutions in the world within reach.

Main competitors to IIM

Insead:Insead has the first mover advantage of being one of the first institutions to set up base in Singapore in

2000 after considering 12 other destinations in APAC. Insead's Singapore campus offers a 1 year MBA

programme that is identical to that of its Paris campus, and it has close to 400 MBA students from over

70 countries.

The University Of Chicago Graduate School Of Business (Chicago GSB):

In 2000, Chicago GSB picked Singapore as the new home for its Asian campus, over such countries as

Hong Kong, Shanghai and Tokyo. Chicago’s GSB offers the prestigious executive management

programme with 16 week-long course modules held over a period of 21 months.

S.P. Jain Center Of Management:

Leading Indian business school S.P. Jain opened its third campus in Singapore in 2006. SP Jain is

offering 1 year Global MBA programme and 2 years EMBA in Singapore with specialization in Wealth

Management, Investment Banking, Banking Management, Retail Management, Services Marketing,

Product Management, and Information Technology Management & Global Logistics. It expects to

attract students from all over the world, including large numbers from the Indian sub-continent, as well

as the Middle East, the US and Europe.

National University of Singapore:

Ranked among top 100 in the FT list, NUS offers a range of course including MBA, International

MBA, APEX-MBA and UCLA-NUS EMBA. It offers specialization in Finance, Marketing, Real

Estate, Healthcare Management and Strategy.

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Other schools of repute in Singapore include Management Development Institute Of Singapore

(MDIS), Singapore Institute Of Management (SIM which partners with University of London,

Australia's RMIT University and the US-based George Washington University),

Singapore Management University (SMU) and EMBA offered by Nanyang Technical Institute.

Brand Analysis

Analyzing Brand IIM:

Key Aspects of the IIM brand:

1). High quality of students intake

2). Diverse areas of training & teaching

3). Contemporary nature of faculty

4). Toughest entrance exam in the world – rigorous student selection process

5). IIM alumni has performed and excelled

6). Top quality academic and physical infrastructure

7). An excellent learning environment,

8). Wide choice in the learning process

9). Flow back of experiences into syllabus and pedagogy

10). Nurtured exclusivity

IIM brand in India inspire trust and deliver value. However, the IIM brand is now analyzed in an

international context.

Based on the above key characteristics of IIM brand:

1. Presence – Yes, IIM as a brand is now globally well-known because of the performance of its

Alumni for the last 30 years.

2. Relevance –IIM provide am excellent learning environment where diverse and contemporary

areas of management are taught by world renowned faculty. Hence it is highly appealing to a

vast section of Indians and others.

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3. Performance – IIMs can deliver well as is evident by the increasing number of Indian and Inter-

national placements offering international salaries. The quality of student intake is very high be-

cause of rigorous selection criteria.

4. Advantage – They have the advantage of being one of the best known Indian brands. India is

much in demand today because of the huge market and skilled people. As a management insti-

tute, few people would understand the Indian market better than them.

5. Bonding - Some of the American and International B-schools have a bigger reputation on ac-

count of the diversity of students, high quality of research and resource availability.

Brand Strength – The IIM brand is different because of the quality of the faculty, the high caliber of

its students, the rigorous pedagogy. As discussed earlier it is highly relevant too. Hence, we can say

that it has high brand strength which it has built over the years through exclusivity.

Brand Stature – Based on its performance, the brand is held in high esteem and well respected.

However, the familiarity of brand IIM is restricted to Indians, the companies where IIM alumni have

worked and academic institutions. It is not a well known brand as GSB Chicago or Insead.

The star designates the current position of the IIM brand and where it needs to go to gain Leadership in

the International arena.

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Niche/Unrealized Potential

IIM Brand

SPJAIN

Leadership Insead

Chicago GSBNUS

New/Unfocussed Eroding

BRAND STRENGTH

B R A N D S TAT U R E ==>


Competitor Prices

NUS MBA would cost around S $ 34,000 while Insead programme cost 65,000 euros for 1 year full

time MBA and 85,000 euros for EMBA. Chicago GSB EMBA programme cost above USD 110,000.

Market Size:

The global education market is estimated to be worth US$2.2 trillion. Reputed local and foreign com-

panies have set up base in Singapore because of Government initiative to make Singapore the educa-

tion hub of Asia. An estimate by the Global Alliance for Transnational Education indicates $27 billion

worth of higher education is exported to Asia and Pacific by three countries -- the United States, the

United Kingdom and Australia. A business of $37 billion trade in tertiary education services in Asia

and Pacific region is projected in future. There is a growing demand from countries in the South Asia,

West Asia and Southeast Asia for Indian education because they are fascinated with the brand equity of

India's Indian Institutes of Technology and Indian Institutes of Management. Hence, after Indian IT

services, India has a huge potential to tap this market in Asia, which is now with the US and other

countries.

Government focus on Education:

In 1997, the Ministry of Education (MOE) of government of Singapore announced its target to attract

10 world-class universities to Singapore within a decade - 10 universities jumped on board in half the

time. In 2002, a government economic review panel recommended Singapore seize the opportunities

that had arisen out of newly thriving Asian economies, particularly that of India and China. At the time,

mature education exporters from the US, Britain and Australia were already on the lookout for fresh

markets to tap into, and it was estimated that the demand for international education would see a four-

fold increase over the next two decades - from 1.8 million students in 2002 to 7.2 million by 2025.

Government of Singapore feels that given its strong International reputation for quality education,

would help draw people from other countries which is likely to create about 22,000 jobs by 2015 and

also boost the education sector's GDP contribution from 1.9 per cent (S$3 billion/US$1.8 billion) to

five per cent. Most of the foreign institutions have hence set up programmes with local institutions like

Nanyang Technological University and National University of Singapore.

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Director Kenneth Tan of Singapore Economic Development Board (EDB) says that the grander aim

behind attracting top-notch institutions and students to Singapore is the hope that foreign talent will

remain in the country as employees or entrepreneurs. In turn, the growing pool of talent in Singapore

will help draw more world-class R&D firms and MNCs to the country.

"Our objective is to make Singapore a 'Global Schoolhouse,' providing educational programmes of all

types and at all levels - from pre-school to post-graduate institutions - [to attract] an interesting mix of

students from all over the world," says Singapore's Minister For Foreign Affairs George Yeo.

Investments in the education sector have seen an increase; before 2002, such investments were in the

single-digit millions, but by 2004, the number reached S$100 million (US$61.7 million) and created

over thousand jobs.

More details of government plans are given in the speeches by Ministers in Appendix 1 & Appendix 2.

Government Regulations:

Ministry of Education (MOE in Singapore) is not an accreditation authority on qualifications. Singa-

pore does not have a central authority that accords recognition to certificates/ qualifications issued and

courses of study offered by private schools. However, all private schools are governed by the Educa-

tion Act, Cap. 87(1985 Edition) copies of which are available from the MOE.

Singapore has instituted the Education Excellence Framework to ensure that commercial schools focus

on academic distinction, organisational excellence and comprehensive student protection and welfare

practices to safeguard students' interests.

The programme encourages academic distinction by rewarding local private schools with accreditation

according to their standards of quality courseware. The Singapore Quality Class for Private Education

Organisations, in partnership with SPRING Singapore, promotes organisational merit through the

recognition of commendable business performances of Private Educational Organisations (PEOs).

To ensure that schools adopt and maintain first-rate student protection and welfare practices and

standards for international students, the Economic Development Board (EDB), the Consumer

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Association of Singapore, the Singapore Tourism Board, the Immigration and Checkpoints Authority

and SPRING Singapore, have introduced the CaseTrust for Education scheme, which applies to all

PEOs.

Prospective private school operators are required to register the school, the courses they offer and the

teachers through the Online Business License Service (OBLS) and get the “"Registered with the Min-

istry of Education" certificate. MOE registration gives private schools the right to operate when they

have met basic statutory requrements but in any way represent an endorsement or accreditation of the

quality of the schools, courses and teachers offered.

For a private school application, one must be a company or business or limited liability partnership

(LLP) that is registered with the Accounting and Corporate Regulatory Authority (ACRA) formerly

known as the Registry of Companies and Businesses (RCB). The enterprise also requires obtain fire

safety clearance from the Fire Safety & Shelter Department (FSSD) or from the Housing & Develop-

ment Board (HDB). Other details are given in Exhibit

The government plans to introduce an enhanced regulatory framework for the private education

organisations to assure private schools meet certain standards in terms of academic rigor, financial

stability and student welfare before they are allowed to operate. They are also review plans for

accreditation system to recognise high-quality private education providers, and to help students in

selecting the right school that suits them.

India-Singapore

People across the world are cognizant of India's emergence as an economic power due to globalization

strategies, which are transforming various sectors of the economy including the fast developing sector

of higher education. India is undergoing a paradigm shift, which is reflected in the present economic

boom and growth rate.

India has become a surplus nation in food and foreign exchange earnings, currently up to $1.3 trillion

from a meager $4 billion to $5 billion in 1991. This unprecedented increase has been partly due to

direct investment by foreign companies and partly due to outsourcing activities. The modernization of

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industry is now a front-runner in the emerging knowledge-based economy with a diversified and large

industrial base, which is becoming globally competitive. India’s services sector growth has been very

high and auto parts industry has emerged as among the fastest growing manufacturing sectors. India’s

Tata Steel is one of the lowest-cost manufacturers and is now the world’s fifth largest producer after

acquiring Corus.

India with over a billion people is a growing market represented by about 300 million middle-class

which is very large. Hence, it has been attracting investment in India by world-class companies because

of the high profit-making potential. India’s prowess in the IT sector has increased the confidence of

India on the international level, and its ability to decrease the level of poverty. These factors indicate

that India's new economic policies are working. It is emerging as a global economic power and having

an impact on the fast growth of the educational sector.

Singapore's official interest in India began in 1994 when Prime Minister Goh Chok Tong, on his first

visit to India, declared that he wanted to ignite "India fever" in Singapore's business world. Today,

Singapore is an important trading partner of India with bilateral trade of about US$ 6.4 billion. The

Prime Ministers of India and Singapore established a Joint Study Group (JSG) in April 2002 to study

the benefits of an India – Singapore Comprehensive Economic Cooperation Agreement (CECA).

After due negotiations, the agreement was signed on 29th June, 2005 and effective from 1st Aug, 2005.

CECA is an integrated package comprising a free trade agreement, a bilateral agreement on investment

promotion and protection, an improved double taxation avoidance agreement and a work programme

for cooperation in healthcare, education, media, tourism, customs, e-commerce, intellectual property,

and science and technology.

There has been concerns from the Indian ministry on tariff issues, rules-of-origin factor, opening up all

major airports to Singaporean carriers. However, most issues have been ironed out but of significance

is chapter 13 of CECA which outlines India-Singapore cooperation in Education. The policy is outlines

as below

The education cooperation chapter is aimed at combining the strengths of the education system

in India and Singapore to the mutual benefit of the two countries.

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One of its key mandates is to facilitate joint post-graduate programmes between the world-

renowned Indian Institutes of Technology (IIT) and Institute of Science (IISc) with the Singa-

pore universities. These programmes will focus on research and education with clear industrial

linkages to companies from both countries. Arising from this, the National University of Singa-

pore (NUS) and IIT Bombay (IIT-B) have recently signed an MOU to establish a joint graduate

engineering programme. The NUS-IIT-B tie-up is the first alliance by any IIT with a foreign

university in a significant manner. The programme will draw heavily on existing NUS and IIT-

B infrastructure and course modules. IIT-B and NUS professors will jointly teach the course

and supervise the projects involved. The partnership is expected to yield some 40 Master of Sci-

ence (MS) and eight PhD graduates annually.

The chapter also provides that degrees specified by the University Grants Commission of India

or an Institution of National Importance of India, and by universities in Singapore, shall be

recognised for the purposes of admission into the universities of both countries. This is in addi-

tion to all other admission criteria that must still be satisfied.

A Joint Committee on Education will be established to emphasise the key role that education

will play in fostering the relationship between the two countries. Its members will be drawn not

only from government, but from the private sector as well

MBA Service product offering

IIM-Singapore will offer a one year full-time management programme called ‘India International

Management Programme’ (IIMP) which will be divided into 7 modules of 6 weeks each with exams

in the 7th week. The first three modules and the last one will be core while the rest 3 will have electives.

The major electives are offered in Finance and Marketing area and minor in Operations and Strategy

area. A student can choose any combination of electives from any of the four areas as per his likes and

career objectives.

The key highlight of the programme is that students would get a chance to stay and study in each of the

4 IIMs – Lucknow, Calcutta, Bangalore and Ahmedabad for a week after every 3 months to experience

India first hand. Various activities, seminars, industry visits will be planned for the students so as to

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learn about India’s culture, politics, social system, IT, financial and retail markets – all of which are

unique.

Right at the beginning of the session, students will stay at IIM-Lucknow and get an opportunity to visit

New Delhi (the capital of India) and Agra which will give them a flavour of North India. Visiting these

historical places will give the students a perspective of the history, culture and political system of India.

The participants will also get an early opportunity to show leadership skills and take part in team-build-

ing.

At the historic city of Calcutta, participants will get to understand the Social system and also learn to

practice yoga and meditation both of which can help maintain balance in this fast paced world.

While at IIM-Bangalore (which is in South India), students will get to see the Silicon Valley of the East

and understand the various aspects of outsourcing and Globally distributed work. They will also get a

chance to visit some IT companies in Bangalore. This section being mid-way down the course, students

will also be guided on various career aspects that help them make the right decisions.

The final leg, participants will get to visit IIM-Ahmadabad in the west of India. Here they will get to

understand the various prominent market opportunities in India and also visit Mumbai (the financial

capital of India) and meet some industrialists there. Participants will get a chance to test their caliber

through case-study contest and seminar with other IIM students.

These 4 weeks of the programme will not be graded but it is highly recommended that participants at-

tend all the four programmes.

The final week before graduation, companies will be invited from Singapore, India and from other

places for placement.

Programme Details:

Week 1 At IIM-Lucknow

Understanding India's culture & politics- Visit to New Delhi & Taj Mahal- Team Building

2 Financial Statements Analysis

Term 1 (core)3 Micro-economics for Managers4 Quantitative & Statistical Techniques5 Macro-economics

PGSEM-05 19 IIMB


6 7 8 Exams9 Organizational Behavior

Term 2 (core)

10 Marketing11 Information Systems & Operations12 Managerial Accounting13 14 15 Exams

16 At IIM-Calcutta

Understanding India's social system- Environment, Corpora-tion & social service- Yoga & Meditation

17 Operations Research

Term 3 (core)

18 Strategic Management19 People & Leadership20 Corporate Finance21 22 23 Exams24 Banking (Fin)

Term 4 (electives - Fi-nance & Marketing)

25International Finance & Global Financial Mar-kets (Fin)

26 Investments (Fin)27 Market Research & Analytics (Mktg)28 Product and Brand Management (Mktg)29 Consumer Behavior (Mktg)30 Exams

31 At IIM-Bangalore

Understanding Out-sourcing & Globally dis-tributed work- Visit to IT companies- Career Counseling

32 Mergers & Acquisitions (Fin)

Term 5 (electives - Fi-nance & Marketing)

33 Investment Banking (Fin)34 Options, Derivatives & Futures (Fin)35 Competitive Marketing Strategy (Mktg)36 Promotional Management (Mktg)37 Business to Business Marketing (Mktg)38 Exams39 Managing Technological Innovation (Str)

Term 6 (electives - Strategy & Operations)

40 Creating High performance Organization (Str)

41Strategic Leadership & Change Management (Str)

42 Service Operations Management (Op)43 ERP & SCM (Op)44 Spreadsheet Modeling for managers (Op)45 Exams

PGSEM-05 20 IIMB


46 At IIM-Ahmedabad

Understanding India's retail, financial & real estate market- Visit to Mumbai- Seminar & case analy-sis competition- Meeting Industrialists

47 Business Law & Corporate Governance

Term 7 (core)48

Project Course/Experiential Learning/Business Plan/Consulting Assignment/Academic Re-search Paper

49 Communication & Negotiation50 51 52 53 Placement Week & Graduation

The programme has been specially designed with International participants in mind who apart from

getting a management degree will also get exposed to Indian work and life. Owing to the strategic im-

portance of Singapore and India, this programme will help participants get a unique blend of Asia and

India in particular.

Evaluation of the Service Product:

1. Students get to be taught by some of the best professors in Asia if not in

the world.

2. Participants get to visit the 4 premier management schools in India. Singapore

to any destination in India takes on average just 4-6 hours flight, hence it will not be a big

hassle for participants to fly back and forth. Further, the time difference between India and

Singapore is just 2.5 hours which will not cause much jet lag.

3. Participants will obtain valuable insights and latest developments in manage-

ment thinking and their applicability in the Indian and global context. Also, people get to un-

derstand to some extent the unique characteristics of each of the 4 zones in India – North,

East, South and West

4. As Mr Prakash Apte, director of IIMB says "If you look at the global environ-

ment now, India is fast becoming an economic powerhouse. There is a great interest in the

knowledge of the Indian economy, in Indian companies and the peculiarities of the Indian

PGSEM-05 21 IIMB


market. And this is what we can provide better than Chicago or Insead. Fundamentally, this is

where our strong value-proposition lies."

5. The course will be focused in helping participants gain the knowledge and nec-

essary skills to enhance decision making in a corporate context.

6. This is achieved by discussing the latest developments in management thinking

and their applicability in the Indian and global context. Participants also obtain valuable in-

sights from extensive online interaction with their counterparts from other organisations.

The drawback is that the participants must be well aware of the quality of education being imparted by

the IIMs and also interested in knowing more about India. Hence, the challenge is to enhance the brand

stature (knowledge and familiarity of the brand; esteem of the brand outside the Indian subcontinent).

One of the ways would be to feature IIM-S in any of the world-wide B-school rankings which might

take anywhere between minimum of 3-5 years.

Facilities:To start with, the university will be located in a 3 storey rented independent building of 6000 square

feet having six rooms. It is on Sembawang Road in District 27 having lots of free parking and 5 min-

utes to beach and park. It is walking distance to Mass Rapid Transport, near Yishun North Point oppo-

site Sembawang Country Club (http://gateway.sembawanggolf.org.sg/joomla/) with all sports facilities

Sembawang is an area in the Northern-most portion of Singapore. The Sembawang Road End region

contains some of the historically important colonial architecture which remains standing on the main

land till this day. One of the key roads which was built to connect the navel base to the city centre in

the South is Sembawang Road. This road began as a track in the 1920s and was officially named

Sembawang Road in 1938.

The place will be renovated to have three 40 seater classrooms, an administrative room, 3 staff rooms,

3 student’s breakout room and a small reference library. Additionally, the institute will have tie-up with

Sembawang Community Library to provide library facilities for students and teachers. The class-rooms

will be audio-visually equipped with wireless connectivity. Students are however expected to carry

their own laptops. The institute will invest in IT facilities and provide an online integrated email, online

journal access, access to presentations and discussion forums.

PGSEM-05 22 IIMB

http://gateway.sembawanggolf.org.sg/joomla/


Details about Sembawang is given in Exhibit 9.

Curriculum:4 contact hours per subject per week will be provided by faculty. The term period is just six weeks

which will be challenging to students to learn new concepts and apply it. All books, reading material

will be provided to students before the start of each session. Students are required to prepare in advance

before any class. Several learning techniques will be used such as enhanced (modified) lectures, ques-

tioning and discussions, writing in cases, problem-based learning: cases and guided design, group

learning-teamwork, group learning-cooperative learning, drama, simulation games, technology-visual

and computer-based instruction, technology-based delivery, fieldwork-service learning, and fieldwork

internship and project work. Self-learning will also be emphasized upon. The idea is to drive a holistic

view of the management functions — finance, marketing, human resource development, production.

Admission procedure:Admission is through GMAT score, TOEFL/IELTS score (for participants who have not done their

graduation in English), two referee report and official transcripts. 2 years of minimum work experience

is necessary for admission. If short-listed, students will be called for personal interview or video-con-

ference.

Target Market:As detailed in the ‘Market Audit and Competitive Analysis’ section, the target market for this pro-

gramme are resident Singapore (about 32% prefer to do MBA) and international students (45% of stu-

dents are from overseas) in the 25-29 (32% have done university education) years interested in having a

career in Finance or Sales/marketing (job market grew by 21.3 % in Singapore). The overseas students

may include students from India, UK, USA, Australia, Taiwan who are interested in pursuing high

quality education at affordable rate and a future career in Singapore. The rigueur of the course would

demand full-time study. However, subsequently the institute hopes to offer short term executive or

management development programmes for working professionals.

Expected Sales: The expected number of intake for the IIMP programme will be 40 in the first year, 70 in the second

year, 80, 100 and 120 in the subsequent years. The idea is to have high quality and deeply motivated in-

dividuals who like the illustrious IIM alumni have the potential to act as brand ambassador in future.

Hence, the focus will be on quality and exclusivity.

PGSEM-05 23 IIMB


Revenues and Profit:Detailed revenues, expenses and profit based on expected sales in shown in Exhibit 14. The cost of the

programme will be USD 30,000 in the first year and expected to be increased at the rate of 10% per

year. Other costs are also proportionately increased. Note, that the 4 visits to India, all books, stationer -

ies are covered in the cost. Accommodation and living expenses are separate which participants have to

bear. Royalties to be made to Government, the IIMs is also detailed.

Promotion mix:Selected members from the IIM Alumni network in Asia, UK, USA would be promoting this in their

companies through word of mouth advertisement, during alumni meet sessions, holding road shows in

New York, Washington, San Francisco, London, Singapore, New Delhi, Mumbai and Bangalore.. This

will also be promoted in Indian media and via IIMs for Indians who want an International career. Web-

site of the institute will be set-up within 3 months and shall hold most update information about the in-

stitute.

Long-term plans:

a. Build school’s reputation

b. Have a success record of its career placement office

c. Provide scholarships and financial aid for meritorious students

e. Have tie-ups with other foreign and local MBA institutions to offer greater number of courses for the

student

f. Get into worldwide B-school rankings

Conclusion

IIM in Singapore will be a test case based on the experiences of which similar institutions can be set up

in other countries. Given the demand for India education and the huge potential in the Education mar-

ket, if this arrangement with the government works out well, then even IITs can be set up abroad in the

same model. This would also help government get much needed fund for developing more such pre-

mier institutions in India and making higher education more broad based. Further, the Professors teach-

ing at this institute can provide consultancy to both Indian and foreign corporations to analyze the mar-

ket trends in India over APAC or global markets. Singapore will open the flood-gates of research and

networking for the Professors as well. In this way, India like in IT services will establish a strong brand

PGSEM-05 24 IIMB


image in Educational services too and "leverage its position as a thought leader" in management stud-

ies.

PGSEM-05 25 IIMB


Exhibits

Exhibit 1:

Ethnic composition (%) of resident population

Ethnic 1970 1980 1990 2000 2006

Chinese 77.0 78.3 77.7 76.8 75.2

Malays 14.8 14.4 14.1 13.9 13.6

Indians 7.0 6.3 7.1 7.9 8.8

Others 1.2 1.0 1.1 1.4 2.4

Source: en.wikipedia.org/wiki/SingaporeExhibit 2:

Age structure

Age percentage male female

0-14 years 15.6% 362,329 337,964

15-64 years 76.1% 1,666,709 1,750,736

65 years and over 8.3% 165,823 208,589

Source: en.wikipedia.org/wiki/Singapore

Exhibit 3

PGSEM-05 26 IIMB


Total

No qualification

Primary Secondary Polytechnic Other diplomas

University Percentage of University graduates

2500913 410033 271,602 1,068,897 205,066 121,124 424,191 Percentage 16.40% 10.86% 42.74% 8.20% 4.84% 16.96% Chinese 1945656 335527 205224 787787 173209 100117 343791 81.05%Malays 306048 50370 43196 178150 16019 7787 10528 2.48%Indians 101609 21269 19982 84065 11913 9243 48971 11.54%

Source: singstat.gov.sg

Exhibit 4:

Source: http://www.wtec.org/loyola/em/04_05.htm

Exhibit 5:

Field of Study Total Singapore

Outside Singapore UK USA Australia

China/HK/Taiwan India Others

Total 424191 219396 204795 41225 24603 52769 18948 30286 36965

Education 9055Data Ignored

Fine& Applied arts 5084

PGSEM-05 27 IIMB


Humanities& Social Sciences 52702

Mass comm & Information Science 12030

Business & Administration 136200 74600 61600 10341 10075 23009 2151 6629 9396Law 8413

Natural, Physical, Chemical & Mathematical Sciences 38796

Data Ignored

Health Sciences 16733

Information Technology 36516

Architecture & Building 11916

Engineering Sciences 94699Others 2047


Exhibit 6:Monthly income from work

Total

Goods producing Industries

Total Manufacturing Construction

Other Goods Industries

1482579 391674 289661 90894 11119Below 999 173893 32664

Data ignored1000-4999 1101618 3075265000-9999 158381 40929 32335 7274 132010000 & 48687 10556 8722 1419 415

PGSEM-05 28 IIMB


OverSource: singstat.gov.sg

Exhibit 7:Monthly income from work

Service Producing Industries

Total

Wholesales & Retail trade

Hotels & Restaurants

Transport & Communications

Financial Services

Business Services

Other Service Industries

1090905 253673 93184 178038 87156 191236 287619Below 999 141230

Data not required1000-4999 6257525000-9999 117452 24431 2216 12399 17243 27801 3336410000 & Over 38312 7416 516 3792 10119 9470 6819


Exhibit 8:

Business Week:

1). 45% of the ranking based on graduating students' survey responses.

2). 45% based on recruiter poll accounts

3). 10% is based on an intellectual capital rating from tallying journal articles and books published by faculty.

AACSB:

1). The deans and directors ratings account for 25%

2). The ratings from the recruiter survey account for another 15%.

3). Placement success accounts for 35%

4). Student selectivity accounts for the remaining 25%.

Forbes:

They determine the rankings based on ROI by looking at compensation five years after graduation

minus tuition and the forgone salary during school. They survey graduates five years after graduation.

The Financial Times

The FT ranks schools based on three factors;

1). Performance of the MBA program accounts for 55%.

PGSEM-05 29 IIMB


2). Diversity accounts for 25%.

3). The research rating accounts for 20%.

Wall Street Journal rating

The ranking components for all schools measured include three equally weighted elements: perception

of the school and its students (20 attributes), intended future supportive behavior toward that school,

and a measure of mass appeal based on how many indicated that they recruit at the school.

Economist Intelligence Unit

The ranking measures career opportunities for graduates (35%), the quality of the educational experi-

ence (35%), increases in salary pre and post MBA (20%), and the potential value of the alumni network

(10%).

Exhibit 9:

Source from http://en.wikipedia.org/wiki/Sembawang

Sembawang New Town was built in 1996. The Sembawang Mass Rapid Transit (MRT) Station serves as the central hub, around which residential, commercial as well as industrial zones mushroomed.

Communal facilities

The new town contains some of the most common communal facilities found in Singapore, such as:

Sembawang MRT Station. To preserve the kampong atmosphere of Sembawang, this station has a uniquely-shaped kampong-styled roof. Acceding to a request by workers from the Sembawang Ship-yard, the Land Transport Authority constructed a bay for 350 bicycles as most of the workers cycle to and from work. This is in-line with the environmentally friendly mentality prevalent in the kampongs.

Shopping centres, including the Sun Plaza shopping centre next to the Sembawang MRT Station.

The Sembawang Community Library, managed by the National Library Board is situated within the Sun Plaza shopping centre. It serves residents in the North West areas of Lim Chu Kang, Mandai, Sem-bawang, Simpang, Sungei Kadut, Woodlands and Yishun.

Three primary schools (Canberra Primary School, Sembawang Primary School and Wellington Primary School), and three secondary schools (Canberra Secondary School, Sembawang Secondary School and the holding campus of Yishun Town Secondary School).

Sembawang Bus Interchange, strategically located next to Sun Plaza, was completed in December 2005. This replaced the old bus interchange located at the Northern tip of Sembawang Road, just next to Sembawang Park. Some photos of the old interchange can be found here.

Attractions

PGSEM-05 30 IIMB


Bottle Tree Village

The Bottle Tree Village is located at the end of Jalan Mempurong and is famous for its Bottle Trees (Brachychiton rupestris) which have been specially flown in from Queensland, Australia by the owner Mr. Alex Neo. Apart from the unique trees, other Australian flora can be spotted in the surroundings. An eatery, Sembawang Eating House, is located within this Village, serving traditional Chinese stir-fry dishes.

Sembawang Park

Sembawang Park, a 15 hectare tranquil park developed in the 1970s and maintained by the National Parks Board, is situated at the Northern tip of Sembawang Road. One of the few parks in Singapore with a natural beach, the Wak Hassan Beach, this park is a heaven for city dwellers who are tired of the never-ending concrete buildings and sky-scrapers. It's a popular spot for campers as well as families who wish to spend an idyllic day by the beach. One can dine at the Beaulieu House, built in 1910, which was the residence of Admiral Sir Geoffrey Layton (Commander-in-Chief British Eastern Fleet, 1940-1942). A wide range of fauna and flora awaits visitors, ranging from the spectacular Cannon Ball tree (Couroupita guianensis) to the many species of birds which have made the park their nesting grounds.

Sembawang Park Connector

The Sembwang Park Connector is part of the Park Connector Network managed by the National Parks Board. As their name imply, these connectors aim to form a continuous loop which would hopefully connect all the major parks within Singapore. The Sembawang Park Connector runs parallel to Sungei Sembawang, a canal which serves as the demarcation between Woodlands and Sembawang New Towns.

Simpang Kiri Park Connector

The Simpang Kiri Park Connector demarcates the Southern border of Sembawang New Town, starting from the Southernmost tip of Canberra Link and terminating at Jalan Mempurong, where the Bottle Tree Village and Masjid Penempatan Melayu Sembawang can be found.

Sembawang Hot Spring

The Sembawang Hot Spring, discovered in 1909, is located near the junction of Sembawang Road and Gambas Avenue, along Jalan Ulu Sembawang. It is Singapore mainland's only natural hot spring and was once bottled for sale under the label Seletaris by Fraser and Neave, a food and beverage company. Located on land used by the Ministry of Defence, improvement works were carried out in the area sur-rounding the spring and it was re-opened to the public on 1 May 2002.

Exhibit 10:

Ranking by government Foreign Institution

Country of Origin Degree Offered

Local institu-tion collabo-ration

Tier A City U of New York US MSc (Fin, Mkt) SMA

PGSEM-05 31 IIMB


Essec University France MBA Essec

Insead University (FT) France MBA Insead

Macquarie Univer-sity Australia MBA

MGSM-Raf-fles

Nanyang Tech U Singapore MBA NTU National U of S'pore Singapore MBA NUS

Nottingham Univer-sity UK MBA

PSB Acad-emy

NUS/UCLA S'pore/US EMBA NUS Rutgers University US EMBA CAE

S'pore Management U S'pore

MSc (Finance, Wealth Mngt) SMU

University of Chicago US MBA U of C/Asia

U of Manchester UK MBA (Finance) MBS MBA for Eng

U of Western Aus-tralia Australia MBA

PSB Acad-emy

Tier B Helsinki Finland EMBA Southern Illinois U US MBA APMI/Kaplan U of NY at Buffalo US EMBA SIM

University of Ade-laide Australia MBA, MPM, MAF NAA

U of Birmingham UK MBA AEC

University of Brad-ford UK MBA MDIS

University of London UK Masters (Fin) SIM

U of Nevada, Las Vegas US EMBA, Hosp Adm UNLV

University of Strath-clyde UK MBA, MSc (Mkt) TMI

Western Michigan U US MBA (Mkt) CAE Tier C Deakin University Australia MBA TMC Heriot-Watt U (FT) UK MBA EASB James Cook Univer-

sity AustraliaMasters (Ed)

JCU MBA Northumbria Univer-

sity UKMA (HR, Mng)

CIE MBA Nottingham Trent U UK MBA, TQM Raffles Acad Oklahoma City U USA MBA SCCIOB

RMIT AustraliaMBA (IM)

SIM MSc (Finance) University of Hull UK MBA APMI/Kaplan U of North Alabama US EMBA Harbridge U of San Francisco US MS (Finance) CAE U of South Australia Australia MBA APMI/Kaplan

Tier DAmerican U of Hawaii US MBA RSM

PGSEM-05 32 IIMB


Andrew Jackson University US MBA Hemsdale

Atlantic National U US MBA Queensfield

Central Queensland U Australia MBA Hartford

Charles Sturt U Australia MBA SIC

Columbia Southern U US MBA, MS (Health) Queensfield

Concordia Univer-sity US MBA Auston

Entrepreneurship In-stitute of Australia Australia MBA ERC

Ottawa University US MBA MDIS

Paramount Univer-sity UK MBA CES

Preston University US MBA CPS

Southern Cross Uni-versity Australia MBA MDIS

Queen Margaret UUK

MBA (e-com, Tourism, Health) EASB College, Edinburgh

Salem International U US MBA Informatics

Southern Cross U Australia MBA MDIS

Tourism Inst. of Australia Australia MBA ACPE

U of Ballarat Australia MBA, IT HEG

University of Can-berra Australia

Masters (Mkt, Coun-selling) Informatics

U of Northern Vir-ginia US MBA, IT UNVA, Sng

University of South-ern Queensland Australia

MBA Informatics MPA (Accnt)

Vancouver Univer-sity Canada MBA (Fin Ser) IFPAS

Victoria University Australia MBA SIC Warnborough U UK MBA SOFEA

Exhibit 11:

GNP rating of Singapore

Ranking: 21 (2003) - Show rankingUnit of measurement: Current PPP$Year 1975 1980 1985 1990 1995 2000 2003

GNI- Gross National Income per capita (PPP$)(Current PPP$) 2 500 5 020 7 780 12 230 18 360 23 700 24 180

PGSEM-05 33 IIMB

http://globalis.gvu.unu.edu/indicator.cfm?IndicatorID=140&country=SG#rowSG


Exhibit 12:

Exhibit 13:

The following legal documents and clearances are required for registering a private institution in

Singapore:

Approved Floor Plan by the Fire Safety & Shelter Department (FSSD)

Fire Safety Certificate

Grant of Written Permission (URA/ HDB)

ACRA Printout

Committee of Management Form (One form for each member)

Appointment Note (sole-proprietor/ownership/LLP) or Directors’ Resolution (for company) to ap-

point Committee of Management

PGSEM-05 34 IIMB


Teacher Registration Form (One form for each teacher)

Memorandum & Articles of Association of Company (M & A) [for company] School Constitution

Exhibit 14:

Yearly sales forecastAssumptions

2008 2009 2010 2011 2012Students 40 70 80 100 120Faculty 33 33 33 33 33Fees $40,000 $44,000 $48,400 $53,240 $58,564Increase per year 10%Rent $5,000 $5,500 $6,050 $6,655 $7,321Faculty rate per hour $100 $110 $121 $133 $146Faculty Travel $350 $385 $424 $466 $512Faculty accomodation $400 $440 $484 $532 $586Books & Stationeries $200 $220 $242 $266 $293Administrative cost $2,000 $2,200 $2,420 $2,662 $2,928Brand royalty $100,000 $110,000 $120,000 $140,000 $150,000Payment to IIM $20,000 $30,000 $40,000 $60,000 $80,000Student travel cost $1,000 $1,100 $1,210 $1,331 $1,464Hours of faculty time per term 27 54 54 81 81Legal expenses $30,000 $33,000 $36,300 $39,930 $43,923Marketing expenses $100,000 $110,000 $121,000 $133,100 $146,410

Revenue $1,600,000 $3,080,000 $3,872,000 $5,324,000 $7,027,680Less: ExpensesTotal rent for the year $60,000 $66,000 $72,600 $79,860 $87,846Total Salary of faculty $89,100 $196,020 $215,622 $355,776 $391,354Total faculty travel expenses $11,550 $12,705 $13,976 $15,373 $16,910Faculty accomodation $13,200 $14,520 $15,972 $17,569 $19,326Books & Stationeries $56,000 $107,800 $135,520 $186,340 $245,969Administrative cost $24,000 $26,400 $29,040 $31,944 $35,138Brand royalty $100,000 $110,000 $120,000 $140,000 $150,000Payment to IIM $80,000 $120,000 $160,000 $240,000 $320,000Total student travel $160,000 $308,000 $387,200 $532,400 $702,768Marketing $100,000 $110,000 $121,000 $133,100 $146,410Legal $30,000 $33,000 $36,300 $39,930 $43,923Total $723,850 $1,104,445 $1,307,230 $1,772,293 $2,159,645Profit before tax $876,150 $1,975,555 $2,564,771 $3,551,707 $4,868,035

PGSEM-05 35 IIMB


Appendices

Appendix 1:Excerpts of the speech by Minister on Preparing Students for a Global Future.Source: http://www.moe.gov.sg/speeches/2007/sp20070307a.htm….

10. There is a further, critical dimension to educating our young for the future, and which matters more to us than to most other developed countries. For Singapore to be a global city, we need to have a global outlook in our people. The whole tenor of our society has to be about looking outward, and welcoming new people into Singapore to live and to work. It will give us a big advantage in Asia. That’s why we have to groom young Singaporeans who feel quite comfortable working and collaborating with people who come from all over the place, looking for opportunities in new markets outside Singapore, and working in places quite different from Singapore. A good understanding of Asia, where the opportunities are the largest, will also give them advantage.

11. Developing a global outlook in our students is therefore an important strategy for MOE. We want to nurture Singapore-ans who are culturally versatile, but confident of their own identity.

We are also exploring opportunities for a few of our schools to establish satellite campuses in overseas cities so that our students can spend a longer time immersing themselves and interacting with their counterparts there, while benefitting from a Singapore curriculum

Our tertiary institutions are also linking up with partners abroad, through student exchanges and internships, and in the case of our universities, through collaborative research projects and joint degree programmes.

Our universities are also developing elective modules on Contemporary China and India, for students who are not majoring or specializing in these fields.

No other Asian city is making as determined a move to nurture in its young citizens a global outlook, a sense of the opportunities outside. We have to do more of this than others, because we can only succeed by being a global city. And if we do this well, it will give us advantage in time to come

Non-Tamil Indian Languages (NTILs), which are the mother tongues for the smaller Indian minority groups. These languages are not new to Singapore. But we must keep them alive so that they remain a vibrant part of Singapore’s cultural landscape. Like Tamil, they allow our communities to link up to different parts of South Asia.

Our education strategies are a key part of how we secure Singapore’s future as a vibrant global city. We are providing Singaporeans with opportunities from young to develop a global outlook, and to get a flavour of the opportunities that are emerging in Asia

Some of the challenges we face are no different from those of any other developed society. We know we have to work smarter, rather than work cheaper, in order to thrive amidst the competition from China and India, and before too long from new players like Vietnam

At the same time, Singapore has acquired a strong global reputation in education due to the quality of the education programmes in our publicly-funded schools and tertiary institutions. Many foreign students are attracted to study here. It is important for us to preserve the reputation of our education system.

Appendix 2: Remarks by Mr Ko Kheng Hwa, Managing Director Of The Economic Development Board, At The News Conference On The Singapore Quality Class For Private Education Organisations Programme On 24 Feb 2003, In EDB

PGSEM-05 36 IIMB


Boardroom At 3.00pmhttp://www.spring.gov.sg/Content/SearchForm.aspx?id=education

1. The EDB is leading efforts to develop Singapore into a thriving international education hub. Our vision is to create a distinctive "Global Schoolhouse" comprising a compelling ecosystem of large and niche, local and foreign insti-tutions and enterprises offering a rich and diverse mix of education and training programmes to international stu-dents and executives.

2. To achieve this vision, EDB will focus on 4 areas of development:

Attract a range of reputable foreign institutions and enterprises. This would build on the success thus far in anchoring top universities here, including INSEAD, Chicago, MIT and Shanghai Jiaotong.

Develop and strengthen the capabilities of promising Singapore-based educational institutions and enter-prises, especially their flagship presence in Singapore.

Encourage and support these educational institutions and enterprises to venture overseas and become re-gional or even global educational powerhouses but with their core capabilities and know how firmly an-chored here. The EDB will work closely with our sister agency, International Enterprise Singapore, to support these efforts.

Promote Singapore's education and training offerings to key student markets overseas. The EDB will work closely with the Singapore Tourism Board in this new initiative.

2. Cutting across these 4 strategic thrusts is the need to have quality providers and quality courses in place. Quality is the key to offering a solid value proposition to students and ensuring that Singapore is able to compete against and differentiate itself from other educational destinations around the world.

3. This Singapore Quality Class for Private Education Organisations scheme is an important quality excellence initia-tive targeting private local and foreign education providers that are based in Singapore. It would help grow the pri-vate education industry in several ways:

Instituting a high benchmark for quality excellence would help attract and anchor local and foreign educa-tion providers in Singapore, thereby creating a diverse and critical mass of local and international providers and courses.

For the schools, it offers a set of internationally recognised standards to benchmark and improve their in-ternal processes, be it in student services, content delivery, managing partnerships and people develop-ment. This would help upgrade the schools' products and services for their students.

Schools that qualify for the scheme will enjoy enhanced facilitation support from various government agencies. This support includes faster student passes processing, better terms for the student passes, and active promotion in overseas markets by IE Singapore and the Singapore Tourism Board. This would help the better schools to grow their business in the international arena.

For the students, both local and foreign, the SQC stamp of approval would serve as a public 'trust mark' to indicate these qualified schools are bona fide institutions that focus on offering quality education. The

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scheme would help identify and differentiate the better schools, thereby enabling prospective students to make more informed choices.

4. There are currently more than 300 private commercial, IT, fine arts and language schools registered with the Min-istry of Education. EDB is targeting to have at least 20 "SQC for PEOs" qualified schools by end of 2003. This would form the bedrock of the commercial and specialty education segment. With the SQC for PEOs in place, cou-pled with the government agencies' facilitation efforts, we are confident that the private schools would be able to attract more high-calibre foreign students, in line with the ERC's recommendations to increase the education sec-tor's contribution to the GDP

Building World-Class Private Schools

1. SPRING is pleased to work with EDB to launch this joint initiative. The Singapore Quality Class for Private Edu-cation Organisations programme supports the Economic Review Committee's strategy of making Singapore a re-gional education hub that provides world-class education services. It will help the estimated 300 private education organisations (PEOs) operating in Singapore to strengthen their capabilities and competitiveness. It aims to help these PEOs to attain world-class standards of performance based on an internationally-recognised set of criteria, namely, the Singapore Quality Award (SQA) framework.

2. Like other organisations, PEOs have to compete in an increasingly competitive global marketplace. With a rapidly increasing base of affluent Asian households, particularly in China and India, there will be a growing demand for high quality education services. In order to gain a competitive advantage, PEOs can use the SQA framework to put in place robust management systems and processes to deliver quality education outcomes and achieve sustainable high performance.

3. Many organisations in Singapore now use the SQA framework to identify the gaps in performance and take actions for improvement. The Civil Service uses the SQA framework to drive organisational excellence in the public sec-tor. The Ministry of Education has aligned its School Excellence Model with the SQA framework.

4. To recognise organisations that have achieved a commendable level of performance based on the SQA framework and to assist them on the business excellence journey, SPRING introduced the Singapore Quality Class (SQC) pro-gramme in 1997. The SQC programme seeks to recognise organisations that have achieved a commendable level of performance, based on the SQA framework.

5. There are now 305 SQC organisations, employing some 270,000 employees, or 13% of the workforce. These or-ganisations come from a wide range of sectors - from manufacturing and logistics to healthcare, hotels, and schools. While they are very different organisations, all SQC members share a common passion for improvement and a vision of becoming world-class leaders.

6. The SQC for PEOs marks another milestone in the national movement to develop a culture for excellence among Singapore organisations. It will help build up a pool of world-class private schools that will enhance Singapore's competitiveness and measure up to the best in the world.

7. By adopting the SQA framework, PEOs in Singapore will be able to benchmark themselves against internationally-recognised world-class business excellence standards. The SQA framework is aligned and on par with the frame-

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works of premier international business excellence awards, such as the US Malcolm Baldrige National Quality Award, European Quality Award and Japan Quality Award. These frameworks have also been adopted by educa-tion organisations in these countries.

8. To meet the specific needs of PEOs, four enhancements have been made to the SQC programme. First, an interpre-tation guide has been developed to help PEOs apply the SQA framework to their businesses. Second, all applicants have to comply with a set of mandatory requirements stipulated by various government agencies. These require-ments help to ensure that PEOs have a sound foundation in place for business excellence. Third, PEOs that achieve SQC status will enjoy additional benefits, such as enhanced facilitation support from various government agencies. Fourth, these PEOs will have the privilege of using the SQC logo with a tagline "for Private Education Organisa-tions" on their corporate and publicity materials. This will help them to distinguish themselves in the market and gain a competitive advantage.

9. With the adoption of the robust SQA framework, PEOs will be able to create value for their customers, upgrade the quality of their offerings, enhance student satisfaction, and help make Singapore a thriving regional education hub.

10. A joint initiative of the Economic Development Board (EDB) and SPRING Singapore (Standards, Productivity and Innovation Board), the Singapore Quality Class for Private Education Organisations (SQC for PEOs) is aimed at helping the more than 300 private commercial, IT, fine arts and language schools operating in Singapore to up-grade, excel and compete for a bigger market share in education services. Currently, these private commercial and specialty schools have an estimated total enrollment of more than 100,000 local and foreign students.

11. Mr Ko Kheng Hwa, Managing Director of EDB, affirmed the significance of the programme during a news confer-ence. He said, "The private education organizations (PEOs) have a key role in EDB's effort to develop Singapore into a leading international education hub. High quality PEOs offering high quality courses will attract good stu-dents from Singapore and overseas. The SQC will be a 'public trust mark' of quality that will help attract foreign PEOs and students to Singapore, and encourage Singapore-based PEOs to upgrade and expand internationally."

References

Extensive referencing has been done from the following websites.

Singapore Department od Statistics Http://www.singstat.gov.sg

Singapore Economic Development Board http://sedb.com

Singapore SPRING http://spring.gov.sg

Singapore MOE http://moe.gov.sg

Insead http://insead.edu

GSB Chicago http://chicagogsb.edu

SPJain http://spjain.org

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http://spjain.org/

http://chicagogsb.edu/

http://insead.edu/

http://moe.gov.sg/

http://spring.gov.sg/

http://sedb.com/

http://www.singstat.gov.sg/


HRD ministry (India) http://education.nic.in

High Commission of India in Singapore http://embassyofIndia.com

News website http://rediff.com

News website http://hinduonline.com

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http://hinduonline.com/

http://rediff.com/

http://embassyofIndia.com/

http://education.nic.in/