Introduction Of The New Venture

Published Date: 02 Nov 2017

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Introduction of the new venture

The educational sector has undergone significant changes in the last few years and the biggest change has been the development of online or virtual learning programs; these programs are also known as e-learning or distance learning programs. Almost all the top-ranked universities and educational institutions have started offering e-learning programs. The main purpose of these programs is to provide opportunities to those people who are either employed as full-time employees or part-time staff members in various organisations. With the help of these virtual programs, the candidates or students can acquire the vital qualification required for boosting their professional competencies (Guitert & Romeu, 2009).

Business Idea

In order to avail the benefits that this attractive business is offering to diverse firms and entrepreneurs, my family has decided to develop an online learning program for postgraduates and professionals who are employed in diverse organisations. There are many people who are seeking guidance on enhancing their personality and undertake self-grooming courses that will polish their skills and prepare them to compete effectively in the employment market (Lemon & Pedro, 2012).

Even some undergraduate students are looking for online programs or courses in which they can get enrolled along with their jobs or work. The course curriculum and duration of the program are the crucial features that are considered by the people who are looking for such courses. Hence, our core business idea is to collaborate with the leading educational institutions in UK such as Cambridge University and Oxford University to develop programs that will provide assistance to the aspirants to learn both basic and advanced skills and competencies required to successfully make a prospering career in their respective industry.

Industry Analysis

According to Lemon and Pedro (2012) and Makropoulos et al. (2008), the market for e-learning is huge and it is getting competitive with the passage of time. The main areas that have to be focussed by the entrepreneurs are the curriculum of courses, content of the courses, fees structure, learning assessment criteria, qualification and aptitude of teachers, availability of course related books and materials, payment mechanism, infrastructure for handling the business and IT professional requirements for managing the website (Wang, 2006).

Since the e-learning industry is growing and there are many formal institutions that are offering these programs, the main authorities of the educational sector have developed various rules and regulations so that there is consistency in the program offerings. Some factors that have led to the designing of stringent policies for online educational programs is that they need to offer the finest quality offers that will help the candidates in enhancing their learning and they can be taught the mandatory expertise in their field (Masalela, 2011).

When the applicants are gathering information about these online programs, they are concerned about the duration of the course and level of flexibility allowed. In addition to these features, they even want to avail the opportunity of getting enrolled in complementary programs such as diploma in communication skills, six-month certificate in leadership skills, four-month certificate in management skills and many more (Lemon & Pedro, 2012). Now-a-days, this industry has become lucrative and appealing for new businesses who want to exploit this market and make a distinctive place among the potential students.

Target Market

In order to ensure that our business has clear focus, our target market will mainly comprise of those candidates who want to acquire Master level degrees and simultaneously get join the courses offered for the working professionals. It has been found that most of the working class people especially students who have joined the employment industry immediately after completing their studies want to continue their learning activities ().

As employed professionals are looking for programs that can completed according to their convenience and are also flexible, most of these online firms are presenting them a wide range of variations in terms of the type of courses that they want to get registered into, timings of the courses, assessment criteria such as assignments, projects, reports and examinations, level of complexity and communication mediums to be used for contacting the teachers (Hishop, 2009).

Initially, our target market will comprise of all those people who want to get enrolled in the full-time Master level programs (MBA/MSc/M.Phil) should have certain years of experience in the field and have also completed undergraduate program from a well-known educational institution. The other target market will consist of business class and professionals who are working in organisations and are looking for part-time programs that can grant them the option of moving up in their career ladder.

For Master level program, the degrees that will be offered will have affiliation either with Oxford University or Cambridge University. The main areas or elective course areas will be classified into five categories i.e. Business Management, Supply Chain Management, Health Management, Early Child Development and International Business Operations. Likewise, for the working professionals, the courses will last for six months and the choices available for them will be Interpersonal communication skills, Leadership skills, Social Entrepreneurship skills, Operational management skills, Employee motivation and management skills and Crisis Management skills.

The students of post-graduate programs will have to complete eight courses in the tenure of two years and they will have to ensure that they complete all the requirements of the courses to gain the passing grade. Likewise, the working professionals will have to clear an examination at the end of the course so that they can obtain the diploma or certificate for it. In order to assist the students, the teachers can be contacted through e-mails and the teacher and student can decide about the time to have a chat so that the queries can be effectively handled.

This online program will be offered only to the residents of UK for the first two years. Once the program will gain momentum and it becomes a successful venture, the expansion plan will be considered. During the initial two years, new courses will be offered to meet the changing demands of the target market.

Financial aspects

Since this virtual learning business will be a family business, the initial investment will be done by the family members which comprises of Mr. John Smith (CEO), Ms. Sara Smith (Director), Mr. Williams Paul (Assistant Director) and Ms. Julia Charles (Managing Director). The initial total investment amount will be £1 million for developing the URL and creation of website. Later on, £1 million will be injected to meet the expenses of the business as employees will be hired along with teachers.

In order to earn good stream of revenue, the company will allow educational institutions and other bodies to advertise on our website. When the advertisements will be done on our site, it will allow us to utilize this money for further development of our business. It is vital for the company to have sufficient amount of funds so that it can meet its short-term and long-term obligations. The adequacy rate of 40% will be maintained so that there is adequate cash reserve for meeting immediate monetary commitments.

Issues related to the business

Since every business has to encounter some problems during its term especially in the initial phase of development, following are some of the issues that our business will have to remain alert of in this competitive market:

The foremost thing required to run a business is the finances and the proficiency in operations is crucial for the successful launch and running of the firm. The problems that can arise are increased cost of setting up business because of rise in inflation rate, economic changes, imposition of higher tax rates and surge in the prices of educational books.

There is a possibility that the government imposes stricter rules and regulations or may deny approval for setting up the business. The official body may tighten the policies for starting the online business.

Oxford University and Cambridge University may be reluctant to enter into collaboration with us. They can even show low level of interest during the business operations.

There can be drastic changes in the demands of the target market as they can consider the fees structure to be too expensive, disapproval for the offered courses or dissatisfaction with the faculty.

Conclusion

In order to successfully prosper in the online program market, the company will have to ensure that it keeps a track of its surroundings and monitor the efforts of its competitors. An in-depth market survey has to be conducted to ensure that the information collected is accurate and there is adequate need for these kinds of courses in the market.

In order to assess the feasibility of the plan, one of the most effective ways is to do test marketing that will give an idea about the market response. Although there will be some initial investment but it will be worth as compared to the losses that will be incurred if the entire business plan fails. Hence, a model of the virtual program should be launched to gather information about the responsiveness rate of target market and whether the business will be viable in the long-term or not.