Professional Documents
Culture Documents
Contents
Part 1 4
1.0 Introduction .4
1.1 Defining Strategy 4
2.0 External Environment .5
2.1 Macro and Micro Environment ...5
2.2 PESTEL Analysis ...6
2.3 Porters Five Forces Analysis..7
2.4 Summary of the External Analysis .7
3.0 Internal Analysis 10
3.1 SWOT Analysis .10
3.2 BSM: Vision, Mission & Core Competences ....10
3.3 Summary of the Internal Analysis .10-11.
4.0 The Role of Employees in Strategy .......12
4.1 Why Employees Should be Involved in Strategy.......12
Part 2 ...13
Reflective Statement and Learning Log ..13
Reference List ..16
Appendices ...18
Appendix 1.1 - Table 1.1 - The Three Levels of Strategy ..18
Appendix 2.1 - Table 2.1 - External Environmental Analysis (Components) 19
Appendix 2.2 - Table 2.2 (A-F) - PESTEL Analysis..20-26
Appendix 2.3 Table 2.3 - Porters Five Forces Analysis ......27
Appendix 3.1 Table 3.1 - SWOT Analysis .. 28
2
Appendix 3.2 Table 3.2 - BSM: Mission, Vision & Core Competences . 29
Appendix 3.3 - Recommendations ...30
PART 1
1.0 Introduction
This report provides an appraisal and strategic analysis of Bangkok School of Management (BSM), a
Bangkok-based business school and course provider. Strategic frameworks are applied to the organizations
external and internal environment, so a critical evaluation can be made.
External factors may include government regulation, along with economic or technological changes that
an industry has no control over. For example, if legislation restricted immigration, this would belong in
a macro analysis if one were examining a company that relies on (legal) migrants, as it is likely to
impact upon the whole industry and not just one firm.
According to Campbell, Edgar & Stonehouse (2011), the micro environment can be defined as the
industry or competitive environment. Jeffs (2008 [Page 35]) suggests that the micro environment is
everything within the industry, which includes the business environment that the industry,
might have some influence over. Concerned with competitive dynamics and markets of a
sector or industry, this includes the industry itself and the customer interface. The former relates to
the competitive situation and strategic groups, while the latter refers to market segmentation and
products.
The acquisition and use of information about trends, events and relationships in an organizations
external environment is commonly referred to as environmental scanning. Jeffs (2008) defines
environmental scanning as:
the process of evaluating the external environment at the macro and micro level in order to identify
organizational threats and opportunities.
According to Aguilar (1967) and Choo and Auster (1993), this knowledge can be used to assist
management in planning future actions.
One of the major challenges when analyzing the external environment is that it is an area that is
fluid and therefore prone to rapid change, so timing is essential for the results to be relevant.
Environmental scanning is just one component within a four-tier process of external environmental
analysis. To view each component in detail, see Table 2.1 (Appendix 2.1, Page 23).
Benefits (advantages)
The UKs Chartered Institute of Personnel and Development (CIPD) states that the frameworks
simplicity is one of its key advantages.
A PESTLE analysis enables an organization to identify opportunities and fully exploit them, according
to Hopkin (2010). Hopkin suggests that it, encourages the development of external and strategic
thinking, while enabling an organization to anticipate future threats and take steps to avoid or
minimize their impact.
A PESTLE analysis allows for input from a diverse group of contributors. This can be useful, as aspects
which might not normally be considered by every area of an organization can come to the surface.
Limitations (disadvantages)
A presentation developed by the United Nations University Fisheries Training Program suggests that
the biggest problem with PESTLE is that the factors are, constantly changing. This means an
organization must constantly review the conditions, which can be time-consuming and expensive. It
adds that access to quality external data sources can also be expensive.
Some users, oversimplify the quantity of data used for decisions, according to Hopkin (2010).
Yuksel (2012) argues that since PESTLE factors generally have a qualitative structure, a quantitative
measurement cannot be made. Yuksel believes the present technical framework of a PESTLE analysis
ought to be further developed to accommodate measurement and evaluation.
Yuksel explains that a political situation, for example, could lead to social or economic implications.
Yuksel believes PESTLE ought to feature a format that examines the inter-dependence of the factors,
rather than examining each in isolation.
Since people from different domains need to be involved to ensure the accuracy of a PESTLE analysis,
this would typically be a barrier for smaller organizations, such as SMEs.
While Yuksel points to several disadvantages, Brooks, Weatherston & Wilkinson (2008) discovered that
by utilizing a PESTLE analysis, it is possible to develop a comprehensive, logical view of any
organizational environment. This supports Johnson, Scholes & Whittingtons view (2008) that applying
the framework identifies an important list of influences upon the possible success (or failure) of
particular strategies.
The PESTLE analysis of BSM (Table 2.2 [A-F], Pages 24-30) presents key factors that highlight
external issues or concerns that need urgent attention as well as ones that BSM has no control over.
PESTLE analysis
P (Political)
While the government does not directly influence BSMs strategy, the political environment, both
domestically and regionally, can influence the firms prospects and it is likely to continue to do so.
So long as there is a reasonable degree of stability, the public can easily identify with BSMs unique
offerings, such as its BA (Hons) program, which allows students to work towards a bachelors degree
with a foreign university while remaining in Thailand. This course minimizes the amount of time a
student needs to be based overseas. Typically, overseas study can be a very expensive experience, so the
BSM option offers good value.
A crucial factor in the development of Thailands northeastern region (known as Isan), as identified in
Table 2.2 (A [Pages 23-24), will be the governments willingness to deliver on its infrastructure goals.
As the full analysis within the table points out, the government relies heavily on voters in Isan, which is
currently enjoying robust economic growth.
The governments ability to deliver on the positive claims it has made regarding the establishment of
the Asean Economic Community (AEC) in 2015 is not entirely clear. Further analysis could be useful in
the sense that the development of this common market may generate threats as well as opportunities.
With its own campus now operating in Yangon, BSM is demonstrating that it is aware of the regional
possibilities the development of the AEC may provide. While the media has tended to hail Myanmars
reforms, news of civil unrest there earlier this year suggests that significant problems remain.
E (Economic)
The Ministry of Finance (MOF) is positive about economic prospects, as evidenced in Table 2.2 (B
[Page 25]). As highlighted in the political (Table 2.2 [1A & 1B]) and economic (Table 2.2 [B]) sections
of the analysis, the development of Isan may lead to significant opportunities given the regions close
proximity to Cambodia, Lao PDR and Viet Nam, which offer handy trade connections with China.
S (Social)
Social developments could generate tangible benefits for BSM. The demographic trend referred to in
Table 2.2 (C [Page 26]) poses a threat, though, as it is likely to result in a smaller pool of potential
students in the future. This may be countered by the fact that there is plenty of evidence to suggest that
a workforce lacking the required skills training and education to compete economically could severely
dent Thailands ambitions. This may encourage the government to take serious action.
T (Technological)
The limited data presented in this section (Table 2.2 D [Page 27]) poses some interesting questions,
which could only be fully answered by conducting more detailed investigations and analysis.
L (Legal)
While some basic information about the structure of the legal system has been provided (in Table 2.2
[E]), the author considers this element to be minor, since legal implications identified within the macro
environment can only be discussed in a meaningful way with the assistance and support of a Thai
lawyer or analyst.
While many factors in this analysis might appear quite vague on the surface, the author hopes the
information presented nevertheless provides some useful insights.
E (Environment)
As mentioned (in Table 2.2 [F]), environmental factors do not impact upon BSM in a significant way
and an executive from BSM confirmed this during a recent interview.
It is not unusual for a Thai company to be Bangkok-centric, which is noted under Internal
Weaknesses, as, until recently, the capital has generally been the focus of business, commerce and
industry in the country.
The point regarding poor response times for distance learners might be easily addressed, but it should
not be taken lightly as it could cause learners to switch should competition in the marketplace heat up.
The question marks added to internal weaknesses suggest that the author believes management may
already have suitable solutions prepared to address these points.
BSM has good networking relationships, as well as positive links with organizations in fellow Asean
member states.
The author is under the impression that the points listed under Vision, Mission and Core Competences
(Table 3.2) are suitably realistic. The author notes under the recommendations presented in Table 3.3,
however, that clearer indications of a quality improvement framework would have helped in the
compilation of this report.
11
12
13
July 5 12 (Topic 4)
This section of the course made me think carefully about exactly who is a stakeholder, as it may not
always be apparent. This section of the course requires students to review different corporate
governance systems and examine their relationships with various stakeholder theories. It made me
realize that different areas of an organization may serve different stakeholders.
August 9 16 (Topic 9)
Topic 9 examined Corporate Social Responsibility (CSR) and business ethics. CSR can seem quite
open to interpretation, so it is also open to misinterpretation. Since it is a topical subject, I plan to
conduct further research into CSR and business ethics.
August 16-23
This topic focused on strategizing, or the process of making strategy. Sections 2.15 and 2.16 of
Strategic Management explore this theme, asking the student to identify who is involved in the process
of making strategy while evaluating the different management roles and responsibilities.
Case Studies
It soon became apparent during the early part of this course that it was important that students begin to
refer to case studies as a method of supporting an argument or illustrating a point. In this regard, I found
it useful to refer to a publication called The Management of Strategy: Concepts and Cases (Ireland,
15
Hoskisson, Hitt). Although it is not a recommended text, it includes relevant material pertaining to
various areas of the course.
Reference List
Aguilar, F.J. (1967), Scanning the Business Environment. New York, NY: Macmillan Co.
Boyd, M. & Fales, A.W., (1983) Reflective Learning: Key to Learning from experience (article),
published in the Journal of Humanistic Psychology (Volume 23, Number 2).
Brooks, I., Weatherston, J. & Wilkinson, G. (2011) The International Business Environment:
Challenges and Changes. 2nd edn. Essex: Pearson Education Limited.
Campbell, D., Edgar, D. & Stonehouse, G. (2011) Business Strategy: An Introduction. Hampshire:
Palgrave MacMillan.
Chartered Institute of Personnel and Development (CIPD [UK]), Factsheet (PESTLE Analysis).
Available at: http://www.cipd.co.uk/hr-resources/factsheets/pestle-analysis.aspx (Accessed: 11 October,
2013).
Choo, C.W. & Auster, E. (1993) Environmental Scanning: Acquisition and Use of Information by
Managers (article) published in: Annual Review of Information Science and Technology, edited by
Williams, M.E., Medford, NJ: Learned Information, Inc for the American Society for Information
Science.
Grimm, C.M., Lee, H. & Smith, K.G. (2006) Strategy as Action. Oxford: Oxford University Press.
Hendry, J. (2000) Strategic decision making, discourse, and strategy as social practice. Published in
The Journal of Management Studies (Volume 37 [7], pages 955-977).
Hill, T. & Westbrook, R. (1997), SWOT Analysis: Its Time for a Product Recall (article), Long Range
Planning, 30, No. 1, 46-52.
Hopkin, P. (2010) The Fundamentals of Risk Management. The Institute of Risk Management. Kogan
Page (Safari Books Online).
Available at: http://my.safaribooksonline.com/book/-/9780749459420/14-risk-classificationsystems/137
(Accessed: 21 October, 2013).
Ireland, R.D., Hoskisson, R.E. & Hitt, M.A. (2013) The Management of Strategy: Concepts and
Cases. 10th edn. South-Western CENGAGE Learning.
Jeffs, C. (2008) Strategic Management. London: Sage Publications.
16
Johnson, G., Scholes, K. & Whittington, R. (2008) Exploring Corporate Strategy. 8th edn. Essex:
Pearson Education Limited.
Menon, A. et al. (1999), Antecedents and Consequences of Marketing Strategy Making (article),
Journal of Marketing, 63, pages 18-40.
Pearce, J.A. & Robinson, R.B. (2009) Formulation, Implementation & Control of Competitive Strategy.
11th edn. New York: McGraw-Hill Irwin.
Porter, M.E. (2008) The five competitive forces that shape strategy. Published in Harvard Business
Review (January, pages 78-93).
Prahalad, C.K. & Hamel, G. (1990) The core competence of the corporation. Published in Harvard
Business Review (May-June).
Seth, A & Berkshire Strategic LLC, Defining Strategy (2008), Berkshire Strategic.
Reference: Porter, M.E., What is Strategy? (1996), Harvard Business School Press.
Available at: http://www.berkshirestrategic.com/site/defining-strategy-strategies-are-sustainable
(Accessed: 10 October, 2013).
Thomas, H. (2007) An analysis of the environment and competitive dynamics of management
education. Published in The Journal of Management Development (Volume 26 [1], pages 9-21).
United Nations University Fisheries Training Program Powerpoint Presentation (reference: Page 12)
Available at: www.unuftp.is/static/files/short_courses/pcm_sri.../D2_L2_PESTLE.ppt
Waddell, D. & Sohal, A.S., (1998) Resistance: A constructive tool for change management (research
paper), Management Decision (Vol 36, Issue 8, pages 543 548).
Watson, G. & Reissner, S.C. (2010) Developing Skills for Business Leadership, Chartered Institute of
Personnel and Development (CIPD).
Yuksel, I. (2012) Developing a Multi-Criteria Model for Pestle' (article), The International Journal of
Business and Management (Volume 7, Issue 24 [published 24 November, 2012]).
17
APPENDICES
Operational
Strategies
18
TABLE
2.1:
(COMPONENTS)
SCANNIN
G
EXTERNAL
ENVIRONMENTAL
ANALYSIS
MONITORI
NG
FORECAST
ING
ASSESSI
NG
FACTOR 1 (A)
19
Politics
DOMESTIC
(Government Despite various upheavals over recent years, the Royal Thai government has shown a
)
serious commitment to improving the standard of education in the country. Four years ago,
it entered into the 2nd Decade of Education Reform [2009-2018] and the vision behind this
reform is based upon every Thai person being able to access high-quality lifelong learning.
In short, the government is committed to providing its citizens with 15 years of free
education.
BSM aims to attract Thais and Thai residents (aged 18-24) to enroll on its courses, based
on an interview conducted with a senior BSM executive. According to the management, the
companys courses, which are delivered in tandem with leading foreign universities, are
significantly different from rival offerings, as outlined in greater detail within the
Appendices of this report (see Table 3.2, Bangkok School of Management [BSM]: Mission,
Vision and Core Competences [on Page 33]).
While it is formally recognized by the Ministry of Education, BSM is operating in the private
sector at present (Oct 2013) and does not rely on government funding. While Thailands
education policy clearly promotes the ideal of delivering a high standard of education to its
citizens, a recent report (24 June, 2013) by the Education Policy and Reform Unit of UNESCO
Bangkok (the United Nations Economic, Scientific and Cultural Organization [Bangkok
office]) suggests that bridging policy and implementation gaps continue to pose a
challenge.
While government policy and implementation could easily influence BSMs strategy going
forward, the most significant aspect of domestic politics for any company doing business in
Thailand is stability. This point was made clear in an interview earlier this year with Kim Eng
Tan, an analyst from Standard & Poors Rating Services (S&Ps), which was published in The
Nation newspaper. Referring to the near term, Tan said that S&Ps greatest concern was
politics and political instability. To a large degree there has been general political
stability so far this year and while there have been some major protests, such as
demonstrations in the South by disgruntled rubber farmers, the protests have not featured
the level of violent upheaval seen on TV screens around the world between the colorcoded political groups (red, yellow and others) in 2010.
SUMMARY: The outlook generally seems to be quite positive, although Thai politics
might best be descr perpetually unstable and is notoriously difficult to predict.
FACTOR 1 (B)
20
Politics
REGIONAL PERSPECTIVE
(Governmen
At the 12th Asean Summit (Jan 13, 2007 [in Cebu, the Philippines]), members of the
t)
Association of Southeast Asian Nations (Asean), which includes Brunei Darussalam,
Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore,
Thailand and Viet Nam, reaffirmed their collective commitment to accelerate the
establishment of the Asean Community and its Asean Economic Community (AEC)
pillar by 2015.
During a recent interview with the author of this report, a BSM executive referred to
the
importance of the establishment of the AEC. The author notes that the
company has Malaysian citizens among its senior management and the school already
has a campus in Yangon
(Myanmar). While demographic trends and educational
abilities among the citizens of Asean member states are likely to play a role in the
development of an organizations strategy within
the region, this will be referred
to in further detail under other headings featured within this analysis.
While Asean and its members have stated their clear intent to support the
establishment of the AEC by December 2015, a report (October 2013) from the Asian
Development Bank (ADB) suggests this may be out of reach, describing the progress
as steady but slow.
Although it [Asean] has come a long way toward meeting its own targets, it is likely to fall
short of the deadline. How close it gets to these targets will depend on the progress of
reforms in the next two years.
SUMMARY: The outlook generally seems reasonably positive, but as the old
adage goes: The proof is in the pudding.
FACTOR 2
21
The Economy Thailand has had to focus on recovery since significant economic losses were
caused by the devastating floods (of 2011). While the floods claimed over 700 lives,
the World Bank
estimated in 2011 that the damage cost the country US$45.7
billion (1.4 trillion baht).
In a report issued in September (2013), the Ministry of Finance (MOF) projects that
the Thai economy will grow at an annualized rate of 3.5% this year (2013). Its
outlook for 2014 is an annualized rate of 5.1% (within a range of 4.6-5.6%). Growth
in 2014 will largely be driven
by the expansion of private consumption, a revival
in exports and substantial investment by the government sector, according to the
report. Private consumption is expected to expand faster
(at a rate of 3.4%) due to higher household non-farm income, the raise in the
minimum wage
(300 baht [US$10]), a positive employment situation and a very low unemployment
rate (estimated at 0.7%), according to the report. The MOF notes that in 2014,
government
spending will continue to be, the key growth driver for the Thai
economy.
On another positive note, Thailand ranked high (31st [and its best showing among
12 pillars] in the World Economic Forum (WEF) Global Competitiveness Report
(2012-2013) due to its
very favorable fiscal situation, its high savings rate, and
an inflation rate under control [at
about 3%], and [in an international
comparison] a relatively good debt-to-GDP ratio of about 44% [in 2012]. The
report notes that Thailand continues to improve in terms of its Financial
Development (32nd) and Market Efficiency (34th) pillars, climbing 17 and 10 places,
respectively, over the past four years, although there is room for improvement in
some areas, particularly when it comes to promoting domestic consumption (60 th),
according to the report.
There is a significant political side to the Thai economy. For example, the current
administration relies heavily upon the votes of residents of the countrys
northeastern region, known as Isan (or Isarn). According to Bangkok Business Brief
(Vol 2, Issue 9 [Aug-Sept
2013]): Isan is booming. The article notes that
growth in Isan reached 40%
during 2007-2011, whereas Bangkok only
recorded 17% growth during the same period (the rest of Thailand grew by 20%).
The floods (2011) led to another form of investment boost for Isan since some
facilities around Bangkok and other cities in the central region were forced to stop
production. Many firms decided to build facilities elsewhere and Isan benefited from
this trend. Isan is also handily located to benefit from flourishing trade opportunities
with
Cambodia, Lao PDR and Vietnam (and China [via these three nations]),
which has only added to its allure among domestic and foreign investors, the
report suggests. The bullish sentiment regarding Isan will be highly dependent upon
the realization of some highly-publicized infrastructure improvements. The
government plans to spend US$71 billion (2.2 trillion baht)
on rail, highway and
seaport projects during the period 2014-2020, the reports author notes.
To provide readers with some perspective, consider a quote from S&Ps Tan. Tan
said that
while Thailands infrastructure needs a lot of improvement, many
governments have come in and out, and many mega-projects have not been
pursued in a very major way.
SUMMARY: The outlook is positive overall, as long as the political situation
remains calm.
Navin Johnson.
FACTOR
3
Social
In a case study focusing on Thailand, which was launched in March 2012 by UNICEF (the United
Nations
International Childrens Fund) called Narrowing the Gaps for Equity (Imagining a
future for children in 2027), one common theme emerged: participants (from a variety of
backgrounds and age groups) want to see,
improved quality and access to education for all
children, including media literacy, maintaining Thai
culture, life skills and sex
education. While none of these factors seem to relate directly to BSMs current
course
offerings, such aspirations would suggest that Thai citizens, or society as a whole, would
appear to see the need for a significant improvement in the standard of education in the
kingdom in general.
While Isans roaring economic success recently has already been examined (under Political
and Economic), it is worth noting that the Bangkok Business Brief article points out that the
regions 21 million people now enjoy a higher level of disposable income thanks to improved
wages. Since many (former migrant) workers returned to Isan following the 2011 floods, the
region is now able to compete with Bangkok in the labor
market as wages are now on a par
with the capital, according to the report.
If the push from the Thai people (society) is not enough to spur the government into action,
perhaps
economic factors and face may do so.
S&Ps Tan cautioned in his interview earlier this year with The Nation that a lack of reforms in
the education sector could undermine the nations long-term economic prospects.
Meanwhile, the Education Ministry
announced in September that it would test the
accuracy of the World Economic Forum (WEF) Global
Competitiveness Report, which
states that the quality of Thailands education system ranks as the worst
among eight
Asean member states (after Singapore [1], Malaysia [2], Brunei Darussalam [3], the Philippines
[4], Indonesia [5], Viet Nam [6] and Cambodia [7]). Sermsak Pongpanich, the deputy education
minister
was quoted in an article published by Thailands National News Bureau in
September (2013) as saying that if it can be proven that the countrys education system is
substandard, measures would be urgently
worked out, such as preparing incentives for
teachers through increased salaries, curriculum reform and by lifting the standards of
instructors. He added that students must also be ready both physically and
mentally
for education reform.
Another important consideration when examining social factors in Thailand at this point in time
is
demographics. According to a report jointly commissioned by Thailands National
Economic and Social
Development Board (NESDB) and the United Nations Population
Funds (UNFPA) entitled, Impact of
Demographic Change in Thailand (2011), Thailand
benefited from, the positive effect of demographic
transition on economic growth until
2010 when the first demographic dividend [for Thailand] was expected to end. According to
the report: Population aging will eventually result in negative growth in Thailand if other
factors remain constant.
SOCIAL: The report cited above highlights some of the challenges facing Thai society
regarding
demographic trends. The author recommends that BSM study in
greater depth the content of this report.
23
FACTOR 4
Technologic As well as emphasizing the importance of learning a second and third language,
participants in the
Thailand survey produced for UNICEFs Narrowing the Gaps for
al
Equity (Imagining a future for
children in 2027) report stressed the need for
children to develop computer literacy skills that, all
children should have in 2027.
When considering technologies beyond mobile telephony, the WEFs Global
Competitiveness Report (2013-2014) ranks Thailands readiness as low (78 th in its
rankings). The report suggests that only a quarter of the countrys population accesses
the Internet on a regular basis and only a fraction of these users do so at broadband
speeds. Nevertheless, on the upside, growth in terms of Internet
usage is described
as rapid.
In Bangkok Business Briefs report on Isan, the author refers to a report by the research
company,
GfK. This research suggests that smartphone sales in Isan during the first quarter (2013)
grew by
344% compared with just 11-17% growth in Bangkok. It may be worth
conducting further research
in order to establish whether or not technological
development in Thailand is in fact being driven by
mobile telephony. If so, this might in
fact suggest that the outlook is somewhat rosier than the
Global Competitiveness
Report suggests.
SUMMARY: Largely negative based on these findings, although a more detailed
dedicated
technological analysis may reveal additional relevant factors (both
negative and positive).
24
FACTOR 5
Legal
The Thai legal system is based on civil law and all administration of justice has to conform to
written
legislation. The court system is divided into three sections: the Courts of First
Instance, the Courts of
Appeal and the Supreme Court.
Companies operating in the kingdom need to comply with Thai laws, while if they have any
significant
foreign ownership, they must comply with the Foreign Business Act (1999
[2542]). Due to the fact that
Thai law relies upon the Thai language, most businesses rely
upon the use of local legal representatives
order to ensure that their operations keep
abreast with legal developments.
There are some quite negative elements that relate to the law in Thailand from a business
perspective,
as highlighted in the WEFs Global Competitiveness Report (2013-2014),
which notes that: the
competitiveness challenges remain considerable.
Political and policy instability, excessive red tape, omnipresent corruption and clientelism,
security concerns, low
reliability and high uncertainty around property rights protection
seriously undermine the quality of Thai public
institutions [which are ranked 85th in the
report].
In light of these points, it is actually quite difficult for a foreigner or foreign resident to
comment on legal aspects relating to a business operating in the kingdom, as local-language
expertise is an essential
requirement in order to properly evaluate the relevant
elements. This is the main reason the author has
given the legal aspect of this PESTLE
analysis a lower priority than the PEST factors.
SUMMARY: For companies operating in the kingdom, the legal environment should be
addressed by a highly-qualified, local legal representative. The level of success for a
company operating in the kingdom will largely be determined by the quality of its legal
representation. Based on the facts available at the
present time, the author wishes
to categorize this element of the analysis as neutral to positive.
25
FACTOR 6
Environme Given the impact of the 2011 floods on Thailands industrial infrastructure and economy
as a whole, the environment is clearly a crucial PESTEL factor that the countrys
nt
business community needs to
monitor closely. However, since BSMs operations do
not rely much upon the physical environment, it not seem relevant to explore this factor
in too much depth within the context of this analysis.
A BSM executive explained in a recent interview with the author of this report that the
company only uses limited supplies of paper and office supplies. Nevertheless, the
company tends to purchase such items with the well-being of the environmental in mind.
The 2011 floods reminded Thais that the
environment (the weather and climate in
this case) is completely uncontrollable. However, the fact
that it is capable of being
the source of so much economic damage means that businesses operating the kingdom
clearly need to ensure they have appropriate contingency plans in place. In the case of
BSMs student population, a repeat of floods of the magnitude experienced in Bangkok in
2011 might require that they switch to distance learning (while working from home
options would need to be
considered for the companys staff, one might suppose,
based on the 2011 experience).
A joint World Bank-Asian Development Bank (ADB) report released in 2010, proved to be
somewhat prophetic, projecting that Bangkoks flood-prone areas, will experience more
extreme weather. In
2009, an ADB report noted that Thailand, is already
experiencing more frequent and destructive
extreme weather events than in the
past. The author would assume that persons regarding such
warnings as
scaremongering might have since adjusted their stance somewhat!
SUMMARY: Somewhat negative in that Bangkok is prone to extreme flooding.
Discounting factors relating to the weather and climate, the author would describe
the situation as neutral.
26
Table 3:
2. Porters Five Forces
Key Factors
Threat of New Entry
--
Competitive Rivalry ++
A companys power is also affected by the ability of others to enter your market.
Threat
of New
Entry
Supplier Power
Buyer Power
Competitive Rivalry
Supplier Power ++
Bu yer Power ++
This aspect of Porters Five Forces analysis asks: How easy is it for
buyers to drive down prices?
This aspect of Porters Five Forces analysis relates to the ability of suppliers to drive up prices.
BSMs
Threat of
Substitution
NEWS UPDATE
( Related Development
): For year one
and year two courses (including a diploma in Business Administration and a Higher Diploma, respectively), BSM h
using the Global Examinations Board of the University of East London
(UEL).
reported (on Sept 5 [2013])
that the subsidiary of UEL has been
The Times
Educational Supplement
wound up due to it incurring significant losses (324,000 [US$521,000] in one year, according to the article).
n at the
It time
is notofknow
submitting this report how this might
affect BSM, although it is likely that the company would have few problems in identifying an alternative exam board.
27
TABLE 3.1:
SWOT ANALYSIS
(BSM)
INTERN
AL S TRENGTHS
INTERNAL
W EAKNESSES
Very Bangkok
- centric?
EXTERNAL
O PPORTUNITIES
E XTERNAL THREATS
Positive +
Negative -
28
External Factors
TABLE 3.2: Bangkok School of Management (BSM): Vision, Mission & Core
Competences
Background
Operating since 1998 as a subsidiary of Ever Clever Co Ltd, Bangkok School of Management (BSM) runs courses and
programs leading to a wide range of foreign university bachelors degree qualifications.
BSM offers a Diploma in Business Administration and Higher Diploma in six specialization areas, which are accredited by
the University of East London Global Examinations Board (UELGB), England, under its quality mark standards recognition
program. BSM also offers a Year 3 Final Year Top-Up program in Business and Management of Leadership and
Management in tandem with Northumbria University (UK). The Year 3 program is also open to holders of a Diploma or
Higher Diploma from other recognized institutions worldwide.
Vision
Bangkok School of Management thrives to become a premier higher education institution that offers employment-oriented
Bachelor, Masters and Doctorate degree programs in collaboration with leading western universities, consequently
providing scholars with internationally recognized and globally marketable qualifications and knowledge/skill base.
Mission
The administration, faculty and staff at Bangkok School of Management place utmost importance on ensuring the
provision of meaningful, engaging and relevant learning experiences to post-secondary scholars. This is accomplished by
upholding and implementing the principles of adult learning in every aspect of management and operation of the college,
including acknowledging and encouraging life-long, self-directed learning, application of life experiences in the learning
process, providing opportunities to work on goal-oriented, context-specific and practically-based tasks, and most
importantly, giving scholars the respect they deserve to exercise independent thinking, within the framework of college
policy and vision.
Core Competencies
According to BSMs senior executives, BSM:
Focuses on the big picture, the larger vision, the long-term goals
29
30