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Discuss the Merits and Potential Problems of American Business Schools Case Study


In the past, American business schools only invited foreigners to pursue business courses in America. Recently, these schools have expanded through establishing many business programs in foreign countries and residents can access education without necessarily going to America. This however, is not without several limitations and that is why this paper discusses the benefits and limitations of American business institutions with programs abroad.

Merits of American Business Institutions with Programs Abroad

Just like any other business, expanding into other countries creates more customers for an organization. When an institution like Chicago University establishes its programs in a new country, it is likely to tap more customers, and especially persons who may not be in a position to travel to foreign counties because of family reasons.

Moreover, American institutions benefit from cross-fertilization through expanding into other countries. For instance, lecturers from American Universities can research international issues relating to business while in other countries and at the same time, share their vast knowledge with students in these countries (Zhou 41).

In addition, by expanding into foreign countries, American business institutions reduce the possibility of a single bad decision spoiling the entire program. These universities are as well able to distribute the costs of production across other markets, and this lessens overheads and increases profits for the institutions.

Lastly, American business institutions are able to diversify their programs through establishing institutions in countries that have a different climate from that of America. As Rosenzweig and Daniel reveals, seasonal aspects such as climate may influence a product’s demand (195). For instance, the winter season may depress education at the University of Chicago, yet not all countries experience the winter season at the same time. American business institutions, therefore, use overseas markets to cater for the uneven demand.

Potential Problems of American Business Institutions with Programs Abroad

Establishing institutions in a foreign country involves huge spending and this may overstretch the capacity of the parent university to offer quality education due to limited resources. “When a company invests money and other resources to expand, it has less capital available for other business transactions.” (Kokemuller par.2)

Moreover, entering many new markets can make an institution to share its abilities to the extent that it does not perform proficiently in any area. American business universities send their personnel to overseas countries when they create a new establishment and this may leave the parent institution with inadequate staff.

Assume USF St. Petersburg is interested in Establishing a Program in Asia. Choose a Location in Asia and Outline a Strategy for Success.

The best location where University of Southern Florida (USF) St. Petersburg can establish a program in Asia is at the National University of Singapore.

One strategy that USF St. Petersburg must embrace, for the success of the program, is partnership. USF St. Petersburg may collaborate with the National University of Singapore in Asia in offering an MBA executive program. Directors of the new program should as well work together with collaborative partners of the parent organization for research and training.

USF St. Petersburg must also set up a market research strategy for analyzing and evaluating the market environment in Asia. Aspects such as the number of people in Singapore who are Alumni’s of USF St. Petersburg and those that would wish to support the university are some of the elements that may form the research. Identifying former students of USF St. Petersburg in Singapore would be necessary in marketing the university to locals in Singapore. Alumni’s of USF St. Petersburg in Asia are likely to be supportive of the program in their own country and are in a better place to market the university to their fellow residents.

Moreover, the university should promote its new brand through the internet, television media and advertisements in Singapore. Other methods that the university may use for promotion include “publications, open days, school liaison, public relations and involving main stakeholders” (Narasimha 105). Universities in foreign countries should align all their activities to the development plan of the country in which they operate.

The new St. Petersburg in Singapore should align its educational strategy with the global approach towards education and appreciate limitations that may occur due to global extension posed by international expansion. The strategy of the university should also focus on quality learning and teaching. Quality education is that which meets the needs of the learners. To establish the specific needs of learners, market research would be valuable.

USF St. Petersburg should incorporate its global strategy in Singapore into its planning and embrace popular business planning processes for ventures in foreign countries.

The university should guarantee local residents that the quality of education that they will obtain from university subsidiaries in their countries will be of the same quality with that received from the parent university in Petersburg. The USF St. Petersburg in Singapore should therefore hire competent personnel to offer learning at the university.

On the same note, the university may offer awards based on well-established standards like the Quality and Qualifications Framework and pursue quality assurance processes that govern operations of subsidiary universities and colleges (Clotfelter 374).

Another strategy that USF St. Petersburg may consider is establishing a common board that would be responsible for setting examinations for use in all branch campuses.

USF St. Petersburg may also consider enrolling some American students at the university in Singapore. This strategy is viable because it is likely to entice more Singaporeans to join the institutions. No one would expect American students to leave their country and join a substandard university in Singapore. Following this reasoning, many Singaporeans will have confidence in the school. Ways of recruiting American learners at USF St. Petersburg may be through direct recruitment or through collaborations with a study group.

Besides, USF St. Petersburg in Singapore can invest more in research in order to attain global excellence. This would entail branding USF St. Petersburg in Singapore as a global center for research and creativity, and making connections with the top researchers in the world. Another way of advancing research would be collaborating with other regional and international universities in research and knowledge exchange.

A further strategy that the USF St. Petersburg in Singapore may adopt is developing and nurturing an academic partner relationship with the National University of Singapore. Through such a relationship, the USF St. Petersburg may introduce new disciplines to students markets of the National University of Singapore.

Finally, the USF St. Petersburg may also consider making its postgraduate programs accessible to a larger student market through establishing flexible study schedules that include weekend lessons. Most postgraduate learners are usually busy working and they would appreciate a study program that understands their needs.

Works Cited

Clotfelter, Charles T. American Universities in a Global Market, Chicago: University of Chicago Press, 2010. Print.

Kokemuller, Neil. Advantages and Disadvantages of Expanding your Business. Web.

Narasimha, REddi Effective Public Relations and Media Strategy, New York: Oxford University Press, 2010. Print.

Rosenzweig, Cynthia, and Daniel Hillel. Climate Variability and the Global Harvest: Impacts of El Niño and Other Oscillations on Agroecosystems, New York: Oxford University Press, 2008. Print.

Zhou, Li. Liberalization of Trade in Educational Service and Its Impact on the Right to Education, München: GRIN Verlag, 2007. Print.

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IvyPanda. 2018. "Discuss the Merits and Potential Problems of American Business Schools." December 27, 2018. https://ivypanda.com/essays/discuss-the-merits-and-potential-problems-of-american-business-schools/.

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IvyPanda. (2018) 'Discuss the Merits and Potential Problems of American Business Schools'. 27 December.

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