Xi’an International University: The Growth of Private Universities in China Harvard Case Solution & Analysis

What are the distinguishing characteristics of the higher education market in China?

            The major distinguishing factor of Chinese higher education market is that this market is divided into informal and formal streams as per the program structure and the curricular. China back in the early 1920s developed one of the strongest educational structures where it had major universities that were state owned.

            The Ministry of Education (MOE) has been quite committed to serve the community where the government has been keeping a check and balance on the operation of this market. It looks to develop plans and regulations to improve the quality of education.

            The higher education market of China has ensured that the local language should stay a part of the academics. Although English is the major language, still Chinese is also a part of the educational setup in the country.

Would you invest in Dade Education Company?  Why/Why not?

Investing in Dade Education Company is not the ideal option. The reason for this decision is simple, in order to actually become a part of the joint venture with Dade, a private entity needs to posses at least RMD 50 million in the paid up capital and another RMB 300 in assets before actually becoming eligible for the investment in Dade Education company. Therefore investing such a large amount cannot be the most feasible option. Along with this, setting up a subsidiary in a new province is also a risky move because of the limited resources. 

What advice would you give President Huang Teng regarding the next steps for XAIU?

The next step for the President Huang Teng will be to not only concentrate on the major or the metropolitan cities of the country, but in fact, it should also look to open up universities in second and third tier cities also.

Although the infrastructure might not be as supportive as it shall be in larger cities, but by doing so the management of XAIU can generate funds for the main stream universities. As educational market has become one of the major revenue generating industries, therefore Huang needs to consider it as a business.

Along with this, the idea of the pyramid should also be followed. XAIU should look o involve qualified and credible teachers, PhDs, professors from different parts of the world who can be presented as the face for the university. Since XAIU has been planning to charge higher, therefore they need to make certain amount of investment to ensure that the students who are being attracted by the university are attracted by the faculty and shall not hesitate in paying higher fees.Xi’an International University The Growth of Private Universities in China Case Solution

Therefore, the recommendation for XAIU shall be to consider education sector as a business rather than serving the social cause. Profit making should be the prime reason and the decision making should be made with repect to sustaining the profitability within the market. He should look to make it public which shall help the university attain the private money it has looking to pursue in order to ensure the success of the business model presented by Huang Teng............................

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