The International Schools in the uae

The world-wide teachs in the uaeThe United Arab Emirates international inform is a hygienic established educational trust, which wants to open an international indoctrinate in Oman, wise(p) that on that point is now an opening for international schools in the educational sector. This searchk exit accept important depth psychology for the United Arab Emirates internationalist School to use in order for them to learn ab come on the international schools in Oman, like the environment surrounding them which is semipolitical, Economical, Social and Technological factors and also cognize as the PEST Analysis. Other than that the people that can own an solvent and impact on the business result be included as part of the abridgment, like clients, suppliers, substitutes, new-sprung(prenominal) entrants and competitors and also existn as the door guards fivesome Forces. So by conducting these outline and learning them the company impart then(prenominal)(prenominal) b e able to take a chance out their opportunities and threats which argon part of the turn out Analysis including the Strengths and Weaknesses. These analyses will be measured for iii different cities and three different regions which argon muscadel urban center in Muscat Region, Sohar City in Batna Region and Buraimi City in Dhahra Region. Then finally we will be able to give the United Arab Emirates international School recommendations.definitionPEST analysis is a technique utilise to identify, assess and pronounce external factors affecting the performance of an governing. A PEST analysis is undertaken to attend an memorial tablet gain an understanding of the wider business environment and whitethorn be carried out as part of an ongoing process of environmental analysis or scanning. The aim is to provide information to assist those responsible for system development and decision making. PEST analysis may be used in the context of overall fundamental lawal strategy or more(prenominal) than specifically to evaluate the feasibility of a new overlap or service, or expansion into a new market.(http//goliath.ecnext.com/coms2/gi_0199-5221632/Carrying-out-a-PEST-analysis.html)Advantages of PEST analysis.PEST analysis* provides an understanding of the wider business environment* encourages the development of strategic thinking* may raise aw beness of threats to an organizations ongoing profitability* can help an organization to anticipate future difficulties and take action to avoid or sully their effect* can help an organization to spot business opportunities and forge them successfully.It helps the firm in umpteen ways, its important that environmental analysis is carried out before entering into the indus tense. PEST analysis is a helpful system of summarizing the external environment in which a business operates. Nevertheless, it should follow up by studying how a business should act in response to these influences.(http//goliath.ecnext.com/co ms2/gi_0199-5221632/Carrying-out-a-PEST-analysis.html)Political and legal factorsPolitical factors are territorys and regulations that are made by the organization activity that has a direct impact on the business. These rules affect the daily travel rapidly of the business when it comes to policies and regulations. We believe that the school should take into consideration the following political factorsEmployment Laws Every country has its rules and regulations for a new inappropriate organization entering the country to establish its business, when talking about rules and regulations for usage Omanization the countrys rule is that these foreign companies must recruit Omani citizens as employees to help sign up the unemployment in the country and to gain experience from the foreign employees as well, in addition to that local partnership is one of the rules that a foreign possessor must take in consideration which is also called (Foreign Trade Regulations). public speaki ng of international schools in Oman SABIS of Muscat is one of the schools that are owned by both(prenominal) a foreign and local partners.Government Stability Because there is no war in Oman the government is staticd, secure and safe and not much of a change with the government. There are many foreign and local companies opening up in Oman, there are many international schools existing in Oman for example the AMERICAN BRITISH academy (ABA) if the government was not stabled then these tokens of schools wont exist because of the constant changes with the government therefore there will be less or no foreigners living in Oman. It is strongly safe for any foreign organization to establish its business in Oman.Economical Factors All businesses are touched by economical factors nationally and globally. Whether an economy is in a dilate, ceding back or recovery will also affect consumer confidence and look. equally economic factors affect the purchasing proponent of potential cus tomer, and the state of the ingrained/external economy in the short and long-term. The unit may direct to considerUnemployment Oman has been encouraging Omanisation to reduce the level of unemployment in the country. By the transport of the worldwide school from the UAE into Oman, it will play a role in reducing the unemployment and providing more jobs for local Omanies.Disposable income Oman is facing a boom in the economy due to the surplus they are getting from petroleum sales. Accordingly consumer spending is high. With high consumer spending, an increase of choose will appearance up. This demand will deplete to be satisfied. For that reason, the planetary school will surrender the chance to satisfy this increasing of demand.Socio- cultural Factors social factors will include the demographic changes, trends in the way people live and think. Moreover, it also includes the cultural aspects of the macro environment. These factors influence customer call for and the size o f potential markets (inside and alfresco of the global school).Lifestyle changes by time the life style in Oman changed and is continuing to change. People vex different views over many things such as Education. Many years ago there were no esoteric schools in the country and girls were made to stay at home and fount after their parents. As time passes by, things changed. Omani citizens thinking have changed. They started move all their kids to school, in order to gain education. In addition, when private schools open up in Oman, families didnt mind sending their despite the mixture of both male and female. Moreover, Omani families started going out and eating out more often.Population its the number of people in the country, when it comes to that the population in Oman is on the rise. Companies and organizations take population in consideration, because it means that people increase and the needs increase too. For example, for schools increase in the population of a country or a city means increase in number of students each year. The Chart below is an example of the rise in population in Oman.Educational levels the level of education throughout the years has increased tremendously, and the demand of worldwide schools in some parts of Oman is high, due to the increase of foreigners in the country for bend purposes.Technological factors technological factors are vital for matched advantage, and are the study driver of change and efficiency. Technological factors can for example lower barriers to entry and reduce minimum efficient overlapion level. reinvigorated technology has an impact on changing the way business operates. The net profit has the most effect on the strategy of organizations.New discoveries and development the advancement in technology has been beneficial to the foreign school in the industry. due to technology the administrative staff can now access to the earnings 24 hours a day comfortably from their homes. An early(a) a dvantage that technology has given the International school industry is the ability to reduce their be as new machinery is now available for them to reduce their paper work and also reduce the time wasted. In fact the Internet allows the managers of the International school to use video conferencing to keep up to date with their other branches without to physically go there. This technological revolution means a instant(prenominal) exchange of operating environment.(http//www.btinternet.com/katrina.severn/avce/PESTAnalysis.pdf)After looking at all quatern PEST analyses we believe that Sohar is the best place to open an international school due to the increasing of population by both local and foreigners. as well adding to that Oman tend to have a political stability due to the vox populi of the Sultan rather the change of government, economical Oman is stable at the importee sine they are at the boom due to the surplus of the fossil oil sales but this does not mean it will re main stable forever things might change if there was a decrease in oil costs. The socio- cultural in Oman is defiantly on the change to the smash people are moving forward and want the best for themselves and families.We have identified earlier PEST analysis which includes the external environment and it was think that the environment was in a favourable condition for the UAE International School to enter the Omani market. However, we must consider the internal environment. These factors are inwardly the control of the organizational members, to do so a Porters Five Forces analysis must be carried out.Porters Five Forces AnalysisPorters five forces model is a framework that describes how an industry grows, behaves and responds to five primal external and internal forces. The Porter 5 forces model is a framework for understanding the underlying organize of an industry or business segment, built around the five primary and dominating competitive forces that affect the short, in termediate and long-term effects of an industrys size, strength, vitality, and profitability. The rate of the 5 Forces model and subsequent analyses is to help understand and predict the behavior of the industry, and most importantly, the actions of rival companies.(http//drivedemand.com/logo.html)There are five vital forces which have been introduced by Michael Porter for the analysis, these areThe threat of New Entry The hypothesis of new firms entering the industry impacts contest.The threat of Substitution as those products that are available in other industries that meet an identical or comparable need for the end user.Supplier king An industry that produces honourables requires raw materials. The power of the suppliers to drive up the prices of your input.Buyer Power The power of corrupters describes the impact customers have on an industry.Competitive Rivalry the strength of competition in the industry. flagellum of New EntryCompetition in an industry will be higher if entry into the industry is easy therefore barriers to entry are there to protect the high levels of profits. Barriers reduce the rate of entry of new firms in order to allow the existing firms to enjoy levels of the profits.Product specialization since there are very little or no product differentiation in the International Schools industry, new entrants may feel that competition will be strong and profits will be unspoken to earn.Capital Costs Any normal person will take care it hard to come up with the be required to open an International School, as it is hard to find and buy a land plumping enough to accommodate such requirement. They would also have to pay suppliers for the initial stock, employees, etc. Capital costs are unbelievable high for this type of industry since initially large amount would be needed to buy land, resources, advertisement, etc.Economic of Scale this refers to the decline in unit costs of a product or a service that occurs as the absolute volume of p roduction per period of time increases. Economics of scale gives the International School competitive advantage as they can price their fees at a lower price than the others, and a new entrant will find it hard to compete with the low prices. This is because there is no product differentiation so competitors must compete in terms of price. holy terror of substitutesSubstitutes are goods or services that satisfy the comparable customer needs. A threat from substitutes exists if alternative products with lower prices and better value satisfy the aforesaid(prenominal) need. In the International School Industry the substitutes will be the competitors. The threats of substitutes are determined by factors such as node Relationship it is important to build a good birth with the customers to impede them from moving on to the substitutes, if a customer were to feel that he/she has a better relationship with a certain school than the others then that customer is more possible to go the p articular school than the others.Supplier PowerIt is important for The UAE International School to obtain the resources that is needed for them to successfully operate the school, therefore it is pivotal for them to have a good relationship with their suppliers. Moreover, for the UAE International School to succeed, they must try to reduce the power of their supplier, because the higher the bargaining power the supplier, the higher will be the price of resources.Buyer PowerBuyer Power is the power of customers to drive down your prices. If we look in the terms of the UAE International School, the buyers would be the customers that come to them and they have great power over the UAE International School, then the school will be forced to lower their change price. Two factors of buyer power are included as examples, which areBrand identity Is how the company wants the consumer to perceive the image of their product. The buyer has a power when it comes to steel identity its because they choose the brand that satisfies them the most. So if the brand in your company does not satisfy consumers then youll either have to lower your prices or lose the consumer. For example, if the UAE International School does not allow branded items to their customers, while Muscat International School offers branded items, then most of the buyers will choose the branded school.Threat of Backward desegregation This is when the buyer changes from buying your product to buying your competitors product even though they are similar. The reasons of this maybe the price or the quality of the product and so on. So in this case the buyer has power over the supplier. For example, if the buyer compares between two international school like Muscat International and Sabis, they may find that the price differs in both schools, where Muscat International School might be cheaper, so the buyers would definitely go for Muscat International School. So the UAE International School will have to cons ider the competitors price and try to offer lower or the same price or better quality, and they would also have to consider the needs of the buyers and try to reach their satisfaction.Competitive RivalryThe intensity of the competition between raise firms in the industry can be analyzed. It is important for the school to know the number of its competitors such as Azzan Bin Qais Private School, Muscat International School, Sultan Private School, Sabis International School and Sohar International School. Since the products are believably to be the same (homogenous), the UAE International School will have to find a way to offer something different to its competitors. High competition results in prices and margins thus, the profitability of the industry.Product Differentiation this is when the customers are made to feel that a brand is different from another even though the product is the same and since all products are provided at the International Schools, competition will be high, because all will be competing with the same products for the same crowd of customers.Customer Relationship it is important to build a good relationship with the customers to prevent them from moving on to the substitutes, if a customer were to feel that he/she has a better relationship with a certain school than the others then that customer is more likely to go the particular school than the others.Looking at this, we can see that three out of the five forces are favorable towards the UAE International School. In brief the internal environment is in good condition for the school to enter. From the analysis it can clearly be see the fast that there is no product differentiation is a major issue to the industry.