Factors impacting the functioning of the educational consultancy business
An environmental scan of a company leads to detailed analysis, critical thinking and aids in business strategy development and application (Sarsby, 2016).The environmental scan of Will World education will help the company identify its internal capabilities and the external influences and thereby enables the organisations to align themselves with the rapid changes taking place around it (Dolphin and Reed, 2009).
The external environment of a business refers to the outer forces within which the company functions, i.e. Laws and Legislations of the place, Economic and Climatic factors, National culture and Demographics, Environmental variety (Emanoil, Dumitru, and Elisabeta 2016).The analysis of policy changes, changes in government regulation and changes in national and global macroeconomic indicators and the related effects on the business of Will World Education is described in the following segment.
In order to operate in the business line of educational consultancy, an entity must possess the professional certifications and memberships from associations of consultancy business professionals of the concerned places. For instance, in order to work with the US universities, one needs to avail the membership of American International Recruitment Council (AIRC). Similarly,Canada Course for Education Agents (CCEA) is for Canadian universities and British Council Training for Agents is concerned with higher education in UK universities.Accordingly, policy changes of these associations makes the license availing process stringent or easier.
Political and economic changes have direct and severe impacts on the education consultancy sector. In events of the changes introduced in the rules and regulations by the universities, destination countries or the countries from which the business is operated, the business would be directly affected. An entity must be prepared for sudden changes, by keeping themselves updated with the concerned rules and regulations. For instance a change may arise in the quota limit or the fee structure, for foreign students or students of a particular region. That is why one needs to regularly evaluate and update ones business plan and strategies.
Changes in macroeconomic environment at global level also have a direct relationship with the working of educational consultancy business.Government policies may change from time to time. For instance friendly relations between 2 countries can be beneficial in terms of entry and exit of students of those countries. For instance, according to a latest reports,federal government of USA is expanding its optical training program (OTP) list for foreign students who seek graduation from the American Universities. As a result, more foreign students obtained authorization to remain and work in the U.S. after graduation and the students came from all corners of the globe. Out of them,the majority of the students held the Asian citizenship. Out of all the OTP studentsbetween 2004 and 2016, 57 % of the students were from India, China and South Korea (Pew Research Centre, 2018). This indicates friendly relations between countries of Asia and US.
Impact of macroeconomic changes on Will World Education
After analysing the macroeconomic factors the impact and the result of the same is ultimately related to the changes in the business organisation, the profitability, and decides the success and the failure of the company. The company achieved a market share of 5.45% in the year 2017 and the revenue has also increased from $25 to $50 million per year per student (Will world Education, 2018).
For example the government policies act as a catalyst in implementing the policy that can change the social behaviour of the business environment. For example the government which is a part of the macro environment can levy the tax on the Wills world Education, such as sales tax for providing the consultancy services (Gao, et al 2017). The government can also underwrite the development of the new technology which will be responsible for bringing the change which is necessary. The following table will represent the effects of the factors on the profitability, success/ failure and the business structure of the consulting company Will World Education.
|
Particulars |
Profitability |
Success/Failure |
Business Structure |
|
Policy change |
The interest rate or the monetary policy can affect the profitability of the Will World Education Group. The loans taken by the group to provide the services are affected by the fluctuations of the interest rates. |
The success of the group depends upon the impact of the policy changes. The monetary policy will direct affect the market share of the Group which will ultimately decide the success or failure of the company. |
The business structure involves the departments and the Will World Education falls under the category of the Consulting company. |
|
Change in the national and the global macroeconomic factors |
The profitability of the group can be affected by the political factors such as tariffs, trade restrictions and reforms. The instability of the political factors may decrease the profitability of the Group |
The success of the group depends upon the payment of the taxes on time and on the proper implementation of the employment laws and environmental regulations (Adegbite, et al 2018). |
Macroeconomic factors affect the business structure in terms of the working hours, wage rates and the cultural norms and expectations of the employees. |
|
Social factors |
The social factors such as population growth rate, emphasis on the safety is a base for the profitability of the company |
If the social factors are achieved a company can strengthen its market share and the position among the competitive |
Social factors are one of the important factors as the business structure is of the diversified range. |
The environmental factors such as the demographic, corporate social responsibility, the forces of demand and supply affect the overall performance of the Will World education group. It is necessary to monitor the factors on the regular basis to evaluate the variances if any. The group shall analyse the opportunities available in the environment and shall align them with the internal strengths of the organisation (Hillary, 2017). On the other hand the threats shall also be reflected and the weakness must be minimised with the formulation of the proper guidelines and the policies.
To improve the profitability of the business the factors that have been analysed above shall be taken into consideration and shall be evaluated on the basis of the implementation and its impact on the environment globally.
The risks associated with the microeconomic factors and the macroeconomic factors shall be addressed properly and shall be tailored with the help of strategic policies.
The response for the students shall be taken to analyse the areas in which the consulting group is lacking. An in-depth analysis can be fruitful and the goodwill is going to be accelerated (Schaltegger & Wagner, 2017).
The Will World Education Group must be engaged in the futuristic growth concept. It can develop a team of the members who can research about the future possibilities such as to offer scholarships to the students, to increase the quality of the studies, to attract the number of students by expanding it with the banks or the financial institutions to provide the facility of the loans to the students.
The group can also have tie up with different companies to provide the practical training to the students thereby enhancing the business structure and market value.
References
Adegbite, O. E., Simintiras, A. C., Dwivedi, Y. K., & Ifie, K. (2018). The Organisation Business Environment. In Organisational Adaptations (pp. 11-26). New York: Springer.
Dolphin, R. and Reed, D. (2009).The Fundamentals of corporate communications. Oxford: Butterworth- Heinemann.
Emanoil, M., Dumitru, I. and Elisabeta E. H. (2016).The Influence of the External Environment on Organizations. Journal of Defense Resources Management, 7(2), 133–138.
Gao, Y., Shu, C., Jiang, X., Gao, S., & Page, A. L. (2017). Managerial ties and product innovation: The moderating roles of macro-and micro-institutional environments. Long Range Planning, 50(2), 168-183.
Hillary, R. (Ed.). (2017). Small and medium-sized enterprises and the environment: business imperatives. Routledge.
Pew Research Centre. (2018). Number of Foreign College Students Staying and Working in U.S. After Graduation Surges.Retrieved from: https://www.pewglobal.org/2018/05/10/number-of-foreign-college-students-staying-and-working-in-u-s-after-graduation-surges/
Sarsby, A. (2016).SWOT Analysis. England: Spectaris Ltd, 4.
Schaltegger, S., & Wagner, M. (Eds.). (2017). Managing the business case for sustainability: The integration of social, environmental and economic performance. California: Routledge.
Will world Education, (2018). Who we are? Retrieved from com/about-us-willworld“>https://www.willworldeducation.com/about-us-willworld
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