Question 1
Importance of Environmental Analysis
Figure 1: Maslow Hierarchy Theory of Motivation
Doing a business in the unstable economies like Nigeria is not an easy task where people still strives to get the necessities of living. As a result, it becomes essential for organizations specially the educational institutes to analyze the standard of living and average basic needs that population need to be satisfied. Abraham Maslow proposed the theory of hierarchy which consist of five level of needs that human tends to fulfill including psychological, security, belongingness, self-esteem and self actualization. The theory states that in order to achieve the higher needs, it is necessary to satisfy the lower needs. Thus, the first two levels of needs tend to focus on survival through food, shelter and safety. However, the next level determines the people’s need for belongingness with other society members and getting the higher education through which they can also able to find the most satisfied job (Oleson 2004, pp. 83-92). Taking into account the average people living in Nigeria tends to spend their whole life to satisfy their basic needs of getting food, health and home to live a peaceful life. As a result, they are not able to achieve their desire to obtain the quality education. In addition, due to poverty, around 5 million of Nigerian children do not have access of basic schooling. However, those lucky people who are able to enter into the school cannot reach to obtain higher education.
Moreover, it is equally important to analyze the technological and scientific advancement in the country that generate the need for more quality education. It has been observed that since the past few years, the existence and expansion of more multinational firms including Unilever, Nestle, Procter and Gamble has created many employment opportunities for local people of Nigeria due to which, many people are now able to get higher education. In addition, in order to avail job opportunities in multinational corporations, many students are sent abroad for post graduate education. However, there are many people in the country who cannot afford to go to foreign countries. As a result, it has created many doors for foreign institutes to enter into country for providing the required level of education.
Question 2
SWOT Analysis
In order to analyze the expansion opportunity in overseas, first tool that is to be used here is SWOT analysis. Without scanning the opportunities and threats, the company might face many challenges internationally. Therefore, when it comes to threat, it has been observed that Nigeria economy faces many instability issues. The country has high level of construction cost due to which the cost of university land and premise can overweigh the benefits. In addition, Nigeria has shortage of electricity issues, where power cut are common and frequent. This increases the additional expense for many foreign investors to invest in alternative energy generation sources. There is also overcrowding issue which causes high rates of death in the country. On the other hand, when it comes to opportunities, the recent change in lifestyle and the improvement in GDP have led country to shift to middle income status (Okonjo-Iweala & Osafo-Kwaako 2007, pp. 98-107). As a result, more people now opt for higher education. However, the country does not have efficient education system due to which many people go abroad for post graduation. Thus there are many opportunities for foreign investor to open the institute to provide quality education in the country by adapting low pricing strategy to get maximum number of students.
Cost Benefit Analysis
It has been observed that starting the business in Nigeria, many foreign organizations have to face high cost of investment that sometimes overweighs the benefits. Thus one way to analyze the Nigeria as the location for the university is through cost benefit analysis. The analysis of cost-benefit refers to systematic process of monetizing, comparing and calculating the economic cost and benefit of project including regulation and litigation actions. According to contingency theory, the decision making of investing in any project depends upon many aspects such as environment, project size and availability of technology (Daft, 2006, pp. 23-43). Thus, the cost benefit analysis can best assist the management of the university to analyze the benefit that the university can get. However, it can also help the institute to analyze the cost that it has to face investing in Nigeria including land, equipment and to get the efficient human resource. Thus British university can determine that instead of many uncertainty, poverty issues, and political barriers, whether this project can benefit the organization.
Question 3
PESTEL ANALYSIS
PESTEL analysis is used here to scan the environment issues in Nigeria to open the university in the country.
Figure 2: PESTEL Analysis of Nigeria economy
Political
In order to open the university in new destination, it is important for organizations to take into account the political stability in the country. Nigeria is the largest country of Africa in terms of population. The population of country consists of different ethnic groups. Therefore, equivalent opportunities are giving to different cultural and ethnic identities in the federal government. In addition, due to its larger reserve of human resource, Nigeria poises to build a strong economy through poverty reduction, improve health, infrastructure and education services. However, there is significant uncertainty mainly because of overcrowding and poverty due to which, somehow the means of getting education has been deviated to focus on political and social factors in the academic institute. As a result, many students are caught in different cases including armed robbery.
Economic
There is dramatic change has been noticed in the country. The significant increase in GDP has improved the standard of living in the country. According to World Bank, the country has reached the status of middle income. Moreover, it has abundant reserve of natural resources as well as developed communication, financial and legal sector. As a result, in 2011, it is ranked 31st in the world in terms of Purchasing power parity. The most powerful sector of Nigeria is oil and gas which positively contribute to export of the country. In addition, the country has low fiscal surplus and government debt. Thus, with this pace of economic development, the country is now attractive for many foreign investors to expand their businesses.
Social
According to the survey, the population of Nigeria increases every year at a rate of 1-2 percent. Moreover, almost 150 million population of Nigeria is young generation, which belongs to different ethnic groups including Muslim, Christians and some other religions. Nigeria was used to be the country which has higher illiteracy rate. However, since the past few years there is dramatic change in the lifestyles of people. The young generation of the country is now more ambitious and takes more interest in technological advancement. Also, the foreign influence mainly from the countries like Japan, U.S. and UK has shifted the trend of getting quality and higher education in the country. However, the country faces many social challenges including unequal distribution of wealth, high corruption and unemployment rate (Obadan 2001, pp. 159-188).
Technological
In today’s competitive environment, the social and economic development of any country largely depends upon the technological advancement in the country. Nigeria is developing country which puts great emphasis to adapt the technological change through welcoming the foreign direct investment. The country has one the strongest growing telecommunication sector of the world and also has its own space satellite.
Legal
In order to protect the local producer, Nigeria has put barriers on the trade of some imported items including cement that increases the cost of construction. Thus, it is important for the institute to consider the cost of acquiring the land in Nigeria which also helps it to have breakeven analysis. In addition, many organizations face disputes and difficulty over title of the firm due to which many times organization has to bear additional cost to transfer the name and resolving dispute.
Environment
When it comes to the environmental analysis of Nigeria, 50 percent of country’s area covers with forest. The country has also large number of different species. Thus, in order to protect environment related to animals and trees, foreign investors are needed to make sure that their operations do not have any impact on the environment of Nigeria. As a result, the university can engage in carbon foot print through adaption of the technologies that can reduce the carbon emission.
Question 4
Bringing change to successful implementation of the project
In order to successful implementation of the new project, there are many factors that organization needs to consider. Firstly, as most of the Nigerian population faces poverty, the university needs to focus on low pricing strategy through which, it can create opportunities for many students. According to consumer choice theory, the people prefer to opt for those options, where they can get maximum advantage in comparatively cheaper prices. Thus giving the standard of British education system in low price, the university can get maximum students of the country. Moreover, in order to build the strong relationship with the shareholder, the institute can give the maximum rights to the shareholders to select the top management of the institute.
The institute can focus on hiring the people of different backgrounds, which can also help the institute to increase the customer loyalty of many people who belong to different ethnic and race in the country. However, in order to manage diversity in the organization, there are many methods that university needs to follow. According to Ely and Thomas, (2001), one way of managing diversified workforce is to focus on discrimination and fairness paradigm through the involvement of women and people of color. However, it highly depends upon the leaders to make sure each and every member of institute is respected fairly and treated equally. It is important to provide equal opportunity, recruitments and fair treatment to the diversified workforce. In addition, it is important for the institute to take into account the job market in the country. Through the scanning of job opportunities, the organization can design the courses according to the work that is largely available in the country. This can also help the organization to get more students. However, in order to avoid the high cost of construction, the best way to go for joint venture with the existing home universities. This can help the institute to get current students of the local institute.
Question 5
Ways to manage new culture
People are no more the part of insular environment as the competition comes from every part of the world. Also, globalization has increased the competition due to which the interaction between the people from the diverse culture and background becomes necessary in the institution. However, it also helps universities to get ideas and experiences from all around the world. But, at the same time, it sometimes becomes challenge for manager to deal with different cultures. It is important to understand, acknowledge, accept and celebrate the differences among people of the organization. In the development of any organization, the culture is considered as the most important aspect. Nigeria is the multicultural country which has mix ethnic group. Thus, the organization can take advantage of diversified culture in the institute by hiring people, who belong to different backgrounds.
However, it has been observed that, when many different culture works together to achieve common objectives, there are high chances of conflicts arisen in the organization. These disputes often take place due to distribution of inadequate information as well as differences in the ideas. Thus, in order to avoid such issues, the institute can promote the team-based culture in the organization. According to synergy theory, working collaboratively in teams allows institute to achieve synergy benefits where collective performance is considered to be better than individual work. Thus, the new formed organization can adapt the team-based organizational culture in the university, which purpose is to promote the cooperative relationship between the employees to achieve the common goals of the institute. For example, in McDonalds, to fulfill the demands of customer, all employees’ jobs are interlinked with each other through value chain. Therefore, due to the nature of the environment, the firm has to promote team-based environment and culture where each employees communicate and corporate for the fulfillment of the orders successfully
In addition, in order to manage the new culture of the country, the employees can be provided with adequate training and development. This can also help the institute to educate the professors regarding new curriculum and effective ways of teaching.
Reference List
Daft, R, (2006). Organization theory and design. New York: Cengage learning, pp. 23-43
Ely, R. J., & Thomas, D. A, (2001). Cultural diversity at work: The effects of diversity perspectives on work group processes and outcomes. Miami: Administrative Science Quarterly.
Obadan, M. I, (2001), Poverty reduction in Nigeria: The way forward. Birmingham: CBN Economic and Financial Review, pp. 159-188
Okonjo-Iweala, N & Osafo-Kwaako, P, (2007), Nigeria’s economic reforms: progress and challenges. Washington, DC: The Brookings Institutions, pp. 98-107
Oleson, M, (2004), Exploring the relationship between money attitudes and Maslow's hierarchy of needs, Dallas: International Journal of Consumer Studies, pp. 83-92
