Ideas Knowledge School

ILP 326 New Business Development

Table of Content

Title

1. Business Concept2
2. Mission and Vision 3
3. Target Market4
4. Competitive Strategy 5 – 6
   1. Product
   2. Price
   3. Place
   4. Promotion
5. PEST 7 – 8
   1. Political
   2. Economical
   3. Social
   4. Technological
6. Personal and Business SWOT 9
7. Social Aspect 10
8. References 11 – 14
9. Appendix 15 – 19

Initial Business Proposal

1. Business Concept

Ideas Knowledge (IK) School is an education related. We understand teachers in school are overworked, underpaid and having large amount (35-45) of students in every class and they do not have enough time to finish the syllabus and do further explanations. (Nair, 2012)

Slowly, it becomes parents and guardians worries because parents busy with works and they do not have time for their children education. IK will help to solve difficulty such as improving their weak subjects, coach them, motivate them in studies as well as answer their doubt on academic.

A research of 100 different categories of students was carried out earlier. (Appendix 1) It stated very clearly that only three out of hundred is not attending tuition or coaching. Besides that, tuition industry had contributed RM4 Billion in the growth of Malaysia. With these facts, it is very clear that tuition industry potential and future scenario. (Lim Seng Poh, 2006)

Malaysian parents even willing to spend RM200 to RM2000 a month on children tuition fees. (Nair, 2012) Research also stated that, two thirds (14%) of the households in Asia/Pacific spending enrichment classes for their children such as academic tuition, foreign language classes and public speaking. (MasterCard, 2013) 46% of Malaysian parents willing to spend extra tuition classes fees. (Appendix 2)

2. Mission and Vision

Mission

Ideas Knowledge (IK) School belief that it is our responsible to teach and ready them with academic skills and values so that they are able to meet the future challenges. We believe that encourage the students to challenge, question and debate their ideas is good because they able to do critical thinking and very creative individuals in the future. (Gan, 2012)

Vision

Ideas Knowledge (IK) School will inspire the desire for knowledge and learning. Not just with excellence result but also be enterprising, creative spirits, responsible and cultivate caring in children is the future needs and wants of society. We provide the society with independently, proactive learners with interest, motivation, confidence, discipline, skills and characteristics to succeed. In the future, IK will be the leader of tuition industry.
Target Market

‘Shadow’ education is expanding at an alarming rate. Household’s income being spend on tutoring. (ADB, 2012) Malaysia parents are more particular in academic tuition (46%), Sport (36%) and music instrument (32%). (Appendix 3) (MasterCard, 2013) From this research, we able to understand that parents nowadays are more concern on children education level.

The number of student enrolled at the primary level in government-aided religious school has increased 9,284 students. (Appendix 4) But, the enrolment in primary level decrease from 2,859,921 in 2011 to 2,708,981 in 2014. (Appendix 5) Tuition and extra classes become the growing industry within Malaysia because there are strong demands towards the supply. At the same time, 2,967 registered tuition centre with the attending number of 194,567 students. (Nair, 2012)

Around Selangor area, there are more than 600 primary schools. We will target the primary school students around Subang Jaya area such as SK Dato Onn Jaafar, SJK (C) Chee Wen and etc. Not just Chinese students, but all ethnic groups of Indian, Chinese and Malays.

3. Competitive Strategy

4. PEST
   1. Political

Since independence, Malaysia government keep sustain in investing of education. Malaysia federal governments spend the highest percentage of GDP (Gross Domestic Product) on primary and secondary education in East Asia. (Appendix 6) (MOE, 2012)

Programme for International Student Assessment (PISA) is to evaluate the quality of educational outcomes. Year 2009, it was the first time Malaysia participated in the program and the ranking was not good. (Appendix 7) But, Malaysia aim to rise from bottom third to the top third in PISA ranking within two decades. (Gan, 2012)

2. Economical

Year 2012, the inflation rate increased up to 1.6%. 2009 and 2012 Department of Statistics’ Household Income Survey stated that it is a huge income gap between years 2009 to 2012. (Appendix 8) (Shams, 2014) As for the Salary Survey 2013 by the Malaysia Employers Federation (MEF), stated that salaries for executive increased 6.3% while salaries for non-executive increased 6.7%. (The Malaysian Insider, 2014) Malaysia Prime Minister introduced a new proposal that will let the civil servant to enjoy annual salary increment between RM80 to RM320 called New Civil Services Remuneration Scheme (SBPA). (The Malaysian Insider, 2014)

Since Goods and Services Tax (GST) going to implemented in April 2015, KPMG Malaysia urged both public and private sectors to gradually increase salaries.

3. Social

Tutoring is one of the top 16 industries worldwide and the growth rate is 7% in year 2011. (ICEF Monitor, 2012) The magazine and website Inc. stated that start a new business, tutoring is the best choice.

Among the parents, tuition is the latest trend that keeps growing in this recent year. They will send their children into extra classes and early child education programmes. Survey stated that about 82.2% of students said that tutoring allowed them to gain knowledge and 62.4% of students able to aim higher marks are because tutoring. (Kenayathulla, 2014) Even thought parents does not have strong evidence of the effectiveness of tutoring but the strong belief in efficacy of tutoring regarding the teaching and delivery methodologies used in tuition centre. (Tsang, 2012)

4. Technological

Ministry of Education Malaysia said that the government is trying their best to improve in term of education system and aspiration of individual students. Nevertheless, they also introduce ‘1 BestariNet’ to society. (Terrapinnspore, 2013)Thus project able to provide students and teachers a virtual learning environment.

The latest technology that adopted by the Malaysia Ministry of Education is a technology which is a UK-based Frog / FrogAsia. It’s a type of e-learning system that allowed teachers, students, and parents have connection. They providing user to maximize own strength and develop leadership skills in flexible time and fast growing environment. (Frogasia, n.d.) They also provides effective access to classes, tests, homework, grades, assessments, academic or museum website links, etc. (Strauss, 2013)

5. Personal and Business SWOT

6. Social Aspect

Parents and guardians always busy with work and not involving in children growth. Ideas Knowledge (IK) School created positive impression to the society in tutoring academic. We offer academic tuition, coaching and outdoor activities to children because with this, they can leave electronic devices and enjoy. As for parents, we will discuss and update them their children behavior and academic result once a while. This is to make sure that no matter how busy parents are, they can still involve in children growth.

7. References

1. Lim Seng Poh (2006) The impact of Service Quality Dimensions Towards Customers’ Satisfaction in Tuition Centers [online], Available at: http://library.oum.edu.my/repository/241/1/The_impact_of_service_quality.pdf, [accessed 29 Jun 2014]
2. Venus (2013) Things You Should Know About Sending Your Kids to Tuition [online], Available at: http://www.venusbuzz.com/archives/41600/things-you-should-know-about-sending-your-kids-to-tuition/, [accessed 29 Jun 2014]
3. The Straits Times (2008) Tuition Nation [online], Available at: http://news.asiaone.com/News/Education/Story/A1Story20080616-71121.html, [accessed 29 Jun 2014]
4. MasterCard (2013) Press Releases: Two Thirds of Asia/Pacific Parents Spending on Extra Tuition for Kids: MasterCard Survey [online], Available at: http://newsroom.mastercard.com/press-releases/two-thirds-of-asiapacific-parents-spending-on-extra-tuition-for-kids-mastercard-survey/, [accessed 30 Jun 2014]
5. ADB (Asian Development Bank) (2012) ADB Study Highlights Dark Side of ‘Shadow Education’ [online], Available at: http://www.adb.org/news/adb-study-highlights-dark-side-shadow-education, [accessed 30 Jun 2014]
6. MOE (2012) Preliminary Report Malaysia Education Blueprint 2013-2025 [online], Available at: http://www.moe.gov.my/userfiles/file/PPP/Preliminary-Blueprint-Eng.pdf, [accessed 1 July 2014]
7. Penang Monthly (2013) Statistics – November 2013 [online], Available at: http://penangmonthly.com/statistics-november-2013/, [accessed 1 July 2014]
8. Penang Institute (2013) Statistics – November 2013 [online], Available at: http://penanginstitute.org/v3/resources/articles/statistics/541-statistics-november-2013, [accessed 3 July 2014]
9. Nair, N. (2012) Increase in Demand for Tuition in Malaysia [online], Available at: http://www.thestar.com.my/story.aspx/?file=%2F2012%2F11%2F5%2Fmetrobiz%2F12265348&sec=metrobiz, [accessed 3 July 2014]
10. Noordin, Z. (2014) Education first, politics second, says deputy minister [online], Available at: http://www.freemalaysiatoday.com/category/nation/2014/01/20/education-first-politics-second-says-deputy-minister/, [accessed 4 July 2014]
11. Malaysia Educational Statistics (2013) Quick Facts 2013 [online], Available at: http://emisportal.moe.gov.my/emis/emis2/emisportal2/doc/fckeditor/File/Quickfacts_2013/quickfacts2013.pdf?PHPSESSID=abafcb466e89e750e551d9c7308ad840, [accessed 4 July 2014]
12. Malaysia Educational Statistics (2012) Quick Facts 2012 [online], Available at: http://emisportal.moe.gov.my/emis/emis2/emisportal2/doc/fckeditor/File/Quickfacts_2012/quickfacts2012.pdf, [accessed 6 July 2014]
13. EMiS (n.d.) Statistik Ringkas [online], Available at: http://emisportal.moe.gov.my/mainpage.php?module=Maklumat&kategori=47, [accessed 6 July 2014]
14. Gan, P.L. (2012) Can it transform our education system? [online], Available at: http://www.selangortimes.com/index.php?section=insight&permalink=20121018152643-can-it-transform-our-education-system, [accessed 6 July 2014]
15. Penang Monthly (2014) East Malaysia in Numbers [online], Available at: http://penangmonthly.com/east-malaysia-in-numbers/, [accessed 6 July 2014]
16. MOE (2014) Bab 5 Membangun Dan Mengekalkan Modal Insan Bertaraf Dunia [online], Available at: http://www.moe.gov.my/userfiles/file/RMK10bab5%2014_6_10.pdf, [accessed 6 July 2014]
17. ICEF Monitor (2012) Global Tutoring Industry Experiencing Explosive Growth [online], Available at: http://monitor.icef.com/2012/11/global-tutoring-industry-experiencing-explosive-growth/, [accessed 6 July 2014]
18. Tsang, H. (2012) Private Tutoring in Malaysia: Regulating for Quality [online], Available at: http://www.asiapacificmemo.ca/private-tutoring-in-malaysia-regulating-for-quality, [accessed 7 July 2014]
19. Roth .S.A, (2007), “Penetrating Pricing, Understand Pricing Objectives and Strategies” [online], Available: http://pubs.cas.psu.edu/freepubs/pdfs/ua441.pdf, [accessed 7 July 2014]
20. Kenayathulla, H.B. (2014) Teachers’ perceptions on the effectiveness of private tutoring in Malaysia [online], Available at: http://ries.revues.org/3801?lang=en, [accessed 7 July 2014]
21. The Malaysian Insider (2014) Statistics Department survey shows average household income up 7.2% – Bernama [online], Available at: http://www.themalaysianinsider.com/malaysia/article/statistics-department-survey-shows-average-household-income-up-7.2-bernama, [accessed 8 July 2014]
22. Shams, H.N. (2014) [2727] Income Distribution of Malaysian Household, 2009 and 2012 [online], Available at: http://maddruid.com/?p=11965, [accessed 8 July 2014]
23. Eric (2013) Strategic Location for Main Place Resident [online], Available at: http://mainplaceresidence.blogspot.com/2013/08/strategic-location-for-main-place.html, [accessed 8 July 2014]
24. Riley, J. (2012) Pricing – Pricing Strategies [online], Available at: http://www.tutor2u.net/business/gcse/marketing_pricing_strategies.htm, [accessed 8 July 2014]
25. Strauss, K. (2013) Malaysia Taps Frog To Teach Its Youth [online], Available at: http://www.forbes.com/sites/karstenstrauss/2013/05/08/malaysia-taps-frog-to-teach-its-youth/, [accessed 9 July 2014]
26. Frogasia (n.d.) Careers at Frogasia [online], Available at: http://www.frogasia.com/v3/careers/, [accessed 9 July 2014]

Video

1. Terrapinnspore (2013) DDG of Ministry of Education, Malaysia, Shares on Education Technology, 11 May, Available at: http://www.youtube.com/watch?v=ceix4SpLBuo, [accessed 10 July 2014]
   Appendices

Appendix 1

(The Straits Times, 2008)

Appendix 2

Households in Asia/Pacific spend extra tuition classes for their children (MasterCard, 2013)

Appendix 3

Children’s Participation in Enrichment Classes in Asia/Pacific (MasterCard, 2013)

Appendix 4

Enrolment at primary level by type of schools, 2011-2013 (Penang Institute, 2013)

Appendix 5

Enrolment at Pre-school, Primary and Secondary Level (2011 – 2013) (Malaysia Educational Statistics, 2013)

Appendix 6

Strategic Location for Main Place Residence (Eric, 2013)

Appendix 7

Malaysia’s Basic Education Expenditure 1 As % of Total Government Expenditure for Malaysia and Peers (Penang Monthly, 2013)

Appendix 8

Comparison of Malaysia’s PISA 2009+ ranking against other countries (Gan, P.L., 2012)

Appendix 9

Households’ Monthly Income (Shams, H.N., 2014)

Module Title: ILP 326 New Business Development

Prepared by: Peck Jie YiPage 1 of 19