Harvard Case - What to Propose?
"What to Propose?" Harvard business case study is written by David G. Fubini. It deals with the challenges in the field of Strategy. The case study is 1 page(s) long and it was first published on : May 12, 2022
At Fern Fort University, we recommend a multi-pronged strategy focused on strategic alliances, disruptive innovation, and global expansion to capitalize on the burgeoning online education market. This strategy will leverage Fern Fort's core competencies in personalized learning and its strong brand reputation to establish a sustainable competitive advantage in the global education landscape.
2. Background
The case study focuses on Fern Fort University, a successful private university with a strong reputation for personalized learning. Facing increasing competition and a changing educational landscape, Fern Fort is considering various options for growth and expansion. The university is exploring opportunities in online education, international markets, and potential mergers or acquisitions.
The main protagonists of the case are the university's leadership team, including the President, Provost, and Dean of Online Learning. They are tasked with developing a strategic plan to ensure the university's continued success in a rapidly evolving educational environment.
3. Analysis of the Case Study
SWOT Analysis:
Strengths:
- Strong brand reputation and established track record of personalized learning.
- Experienced faculty and dedicated staff.
- Strong alumni network.
- Established infrastructure for online learning.
Weaknesses:
- Limited international presence.
- Potential for technology obsolescence.
- Dependence on traditional revenue streams.
Opportunities:
- Growing demand for online education.
- Expanding global education market.
- Potential for strategic partnerships and collaborations.
- Emerging technologies and innovations in education.
Threats:
- Increasing competition from established online universities.
- Potential for regulatory changes in the education sector.
- Economic uncertainty and fluctuating student enrollment.
Porter's Five Forces Analysis:
- Threat of new entrants: High, due to the low barriers to entry in the online education market.
- Bargaining power of buyers (students): High, as students have numerous choices for online education providers.
- Bargaining power of suppliers (faculty and technology providers): Moderate, as faculty and technology providers are essential, but competition exists.
- Threat of substitute products: High, as students can choose alternative learning pathways, such as bootcamps or self-directed learning.
- Rivalry among existing competitors: High, as the online education market is highly competitive.
Value Chain Analysis:
Fern Fort's value chain can be analyzed through the lens of its core competencies in personalized learning, which includes:
- Inbound logistics: Recruitment and selection of faculty, development of curriculum, and acquisition of educational resources.
- Operations: Delivery of online courses, student support services, and assessment and evaluation.
- Outbound logistics: Graduation and alumni outreach.
- Marketing and sales: Promotion of programs and recruitment of students.
- Service: Ongoing support for students and alumni.
Business Model Innovation:
Fern Fort can leverage its existing strengths and explore new business models to enhance its competitive advantage. This includes:
- Micro-credentials and modular learning: Offering short, specialized courses and certificates to meet the needs of working professionals.
- Personalized learning pathways: Utilizing data analytics and AI to tailor learning experiences to individual student needs.
- Global partnerships: Collaborating with international universities and institutions to offer joint programs and expand its reach.
Corporate Governance:
Fern Fort should ensure strong corporate governance practices to maintain its reputation and credibility. This includes:
- Transparency and accountability: Clear communication of financial performance and strategic decisions.
- Ethical conduct: Adherence to high ethical standards in all operations.
- Board oversight: Active and engaged board members who provide strategic guidance.
4. Recommendations
Strategic Alliances:
- Form strategic alliances with leading technology companies: Partner with companies specializing in online learning platforms, AI-powered learning tools, and virtual reality technologies.
- Collaborate with international universities: Establish joint programs and exchange programs with universities in key global markets.
- Partner with industry leaders: Develop customized training programs for corporations and organizations.
Disruptive Innovation:
- Develop innovative online learning programs: Focus on emerging fields like data science, artificial intelligence, and cybersecurity.
- Leverage emerging technologies: Incorporate virtual reality, augmented reality, and gamification into online learning experiences.
- Offer flexible and affordable learning options: Provide micro-credentials, short courses, and blended learning programs.
Global Expansion:
- Target emerging markets: Identify high-growth markets with a strong demand for online education.
- Adapt programs to local needs: Develop culturally relevant and language-specific learning materials.
- Establish local partnerships: Collaborate with government agencies, businesses, and educational institutions in target markets.
5. Basis of Recommendations
These recommendations align with Fern Fort's core competencies in personalized learning and its mission to provide high-quality education. They also address the needs of external customers (students) and internal clients (faculty and staff). By leveraging strategic alliances, disruptive innovation, and global expansion, Fern Fort can differentiate itself from competitors and establish a strong position in the evolving education landscape.
The recommendations are attractive from a quantitative perspective, as they are expected to:
- Increase student enrollment: Expanding into new markets and offering innovative programs will attract a wider pool of students.
- Generate new revenue streams: Strategic alliances and partnerships will create new revenue opportunities.
- Enhance brand reputation: Offering cutting-edge online learning programs will strengthen Fern Fort's reputation as a leader in education.
These recommendations are based on the following assumptions:
- The demand for online education will continue to grow.
- Emerging technologies will continue to transform the education landscape.
- Fern Fort will be able to successfully adapt its programs and strategies to global markets.
6. Conclusion
Fern Fort University has a strong foundation for success in the future of education. By embracing strategic alliances, disruptive innovation, and global expansion, the university can capitalize on the burgeoning online education market and establish a sustainable competitive advantage. These recommendations will enable Fern Fort to remain relevant, innovative, and successful in the years to come.
7. Discussion
Other Alternatives:
- Mergers and Acquisitions: While mergers and acquisitions could provide quick access to new markets and resources, they also carry significant risks and require careful due diligence.
- Focus on Niche Markets: Specializing in a specific field or industry could provide a competitive advantage, but it may limit growth potential.
Risks and Key Assumptions:
- Technology Obsolescence: Rapid advancements in technology could render current investments obsolete.
- Regulatory Changes: Changes in government regulations could impact the online education market.
- Competition: The online education market is highly competitive, and new entrants could pose a significant threat.
Options Grid:
| Option | Strengths | Weaknesses | Risks | Assumptions |
|---|---|---|---|---|
| Strategic Alliances | Access to new markets, resources, and expertise | Dependence on partners | Potential for conflict or misalignment | Partners will be reliable and committed |
| Disruptive Innovation | Competitive advantage, increased student enrollment | High investment costs, potential for failure | Technology obsolescence, changing student preferences | Emerging technologies will be successful and adopted by students |
| Global Expansion | Increased market share, new revenue streams | Cultural and linguistic barriers, regulatory challenges | Political instability, economic downturns | Target markets will be receptive to online education |
| Mergers and Acquisitions | Quick access to new markets and resources | Integration challenges, potential for cultural clashes | High acquisition costs, potential for failure | The acquired company will be a good fit for Fern Fort |
| Focus on Niche Markets | Competitive advantage, specialized expertise | Limited growth potential, dependence on a specific industry | Industry downturns, changing market trends | The chosen niche market will be profitable and sustainable |
8. Next Steps
Timeline:
- Year 1: Develop strategic alliances and partnerships, launch new online programs, and begin global expansion efforts.
- Year 2: Expand international presence, invest in emerging technologies, and monitor market trends.
- Year 3: Evaluate the success of the strategy, make adjustments as needed, and continue to innovate and grow.
Key Milestones:
- Q1 2024: Sign strategic alliance agreements with technology companies and international universities.
- Q2 2024: Launch new online programs in emerging fields.
- Q3 2024: Establish local partnerships in target global markets.
- Q4 2024: Begin marketing and recruitment efforts for international students.
By implementing these recommendations and monitoring progress closely, Fern Fort University can position itself for continued success in the rapidly evolving education landscape.
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Case Description
Two audit and financial services firms, one of which your consulting firm has supported extensively, have merged to create one of the largest audit firms in the world. The audit firm's Executive Team has requested proposals aimed at re-evaluating their internal governance structure ahead of the CEO's retirement. As your team works to develop a proposal, your team wonders if a new governance structure is really what is needed given perceived shortfalls of the merger. With your presentation scheduled and fast approaching, how should you proceed?
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