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Executive Education Opportunities In China
 

Executive Education Opportunities In China

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Back in 2001, Baker Strategy Group analyzed the market demand for MBAs in China in preparation for a discussion with Oakland University. Our conclusion was that demand for MBA was high and would ...

Back in 2001, Baker Strategy Group analyzed the market demand for MBAs in China in preparation for a discussion with Oakland University. Our conclusion was that demand for MBA was high and would continue to grow in the coming years.

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    Executive Education Opportunities In China Executive Education Opportunities In China Presentation Transcript

    • Oakland University Executive Education Opportunities in China Discussion MAKE IT HAPPEN BAKER Rochester, MI STRATEGY GROUP October 1, 2001
    • Executive Education Opportunities in China Discussion Paper Oakland University Section Page Executive Summary 2 I. Executive Education in China: 10 A look at the executive education market in China II. 5 Models of Partnering: 21 Sample models US organizations are using for executive education in China III. OU EMBA-HCM Program 32 Opportunities for OU to offer EMBA-HCM in China IV. Next Steps 44 BAKER STRATEGY GROUP Page 1 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper Oakland University Executive Summary Although there are concerns for investing in China at this time, the opportunities outweigh the drawbacks. 1 MBA programs have grown quickly in China over the last 4 years to meet the changing needs of 2 managers in a variety of enterprises While there is heavy competition for corporate and business training, universities are uniquely 3 positioned to offer executive MBA degrees Many foreign universities are offering executive MBA programs in China using at least five models for 4 partnering with Chinese schools OU currently offers 5 graduate degrees from the School of Business Administration, 1 of which is an executive MBA in health management 5 Oakland University has 5 key strategic resources which enable OU to successfully offer the EMBA- 6 HCM program in China Depending on existing relationships, OU may want to start with a mutual partnership, and later 7 develop into a Consortium Partnership BAKER STRATEGY GROUP Page 2 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper Executive Summary Oakland University Pros and Cons of Investing in China Although there are concerns for investing in China at this time, the opportunities outweigh 1 the drawbacks Pros Cons • WTO Accession • Current terrorist Crisis International • 2008 Summer Olympics • Global Recession • Strong domestic economy • Underdeveloped stock market Economic • High levels of FDI • Unperforming loans at Chinese • SEZ’s offer economic incentives banks • Office government support for • Uncertain leadership succession Political markets and private sector • CCP divided on foreign enterprises • Emphasis on management • Uncertainty from CCP policy development meddling • Growing legal system • Corruption Other • General Chinese concern for • Poor Infrastructure economic and political stability • Unemployment BAKER Source: Baker Strategy Group STRATEGY GROUP Page 3 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper Executive Summary Oakland University MBA Program Growth in China MBA programs have grown quickly in China over the last 4 years to meet the changing 2 needs of managers in a variety of enterprises Cumulative MBA Holders in China Enrollment in Chinese MBA Schools Participating Chinese Schools 40,000 30,000 80 75 35,000 35,000 25,000 70 25,000 30,000 60 56 20,000 23,500 25,000 50 20,000 15,000 40 15,000 26 30 10,000 10,000 20 5,000 5,000 5,000 9 5,000 10 1,000 86 0 0 0 0 1991 1997 1999 2001 1991 1997 1999 2001 1991 1997 1999 2001 BAKER Source: Asia One, US Consulate in Hong Kong, US Army Research office – Far East STRATEGY GROUP Page 4 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper Executive Summary Oakland University Business Training Services While there is heavy competition for corporate and business training, universities are 3 uniquely positioned to offer executive MBA degrees Basic General Management MBA English Skills Training Programs Nature of coursework Business English Business and Hand-on courses and Degree program reading, writing, and administrative skills workshops to develop providing a complete speaking manager business orientation effectiveness • Business Writing • Computers Examples • Managing Teams Emphasis in: • Market Terms • Basic Finance • Business Planning • Finance • Specific Industry • General Marketing • Negotiation • Marketing Terminology • Time Management • Performance • Accounting • Cultural Sensitivity Reviews • Etc. Who is equipped to offer this • Universities • Corporate Universities • Training Companies • Individual Training BAKER Source: Baker Strategy Group STRATEGY GROUP Page 5 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper Executive Summary Oakland University Five Partnering Models Many foreign universities are offering executive MBA programs in China using at least five 4 models for partnering with Chinese schools 1 2 3 4 5 Mutual Partnership Consortium Partnership Consortium Partners Individual Branch Joint Entity Model Global Management Executive MBA in Program International MBA International MBA Executive MBA Program Leadership • Thunderbird • The University of • Shanghai Jiao Tong • Tsinghua Univ. • Beijing Electric Power Partners Graduate School of British Columbia University • Fordham University College International • Shanghai Jiao Tong • The European • Santa Clara Univ. • Shanghai Metallurgy Management University Foundation for • Renessler Chengdu Hydro Elect. • Team Canada Trade Management Dev. Polytechnic Univ. Power College Mission • MOFTEC • Loyola University • Plato College • European • 22 other US • Napier University Commission Universities • James Watt College Degree Certificate UBC MBA CEIBS MBA Fordham Univ. MBA Certificate Length 8 Courses 18 Courses 22 Courses 12 Courses 8 Courses 1 Year Program 1.5 Year Program 2 Year Program 2-Year Program 1 Year Program Tuition $ 13,250 $ 19,133 $ 23,614 $ 19,500 $? English Language English, but Chinese English Both English and English can be arranged Chinese BAKER Source: website of schools, WSJ Interactive STRATEGY GROUP Page 6 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper Executive Summary Oakland University OU Graduate Degrees in the School of Business OU currently offers 5 graduate degrees from the School of Business Administration, 1 of 5 which is an executive MBA in health management OU Schools Graduate degrees currently offered Executive MBA • Health Care Management MBA (and accelerated MBA) • Accounting • International Business • Business Economics • Management Information • Entrepreneurship Systems • Finance • Marketing • Health Care Management • Production/Operations • HR Management Management MAcc • Public Accounting • Managerial Accounting • Systems Accounting Post Master Certification Programs • Accounting • Management Information • Business Economics Systems • Finance • Marketing • HR Management • Production/Operations • International Business Management MS in Engineering Management BAKER Source: Oakland University STRATEGY GROUP Page 7 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper Executive Summary Oakland University OU Strategic Resources Oakland University has 5 key strategic resources which enable OU to successfully offer the 6 EMBA-HCM program in China Strategic Resources Implications • Makes Guizhou area a natural geographic starting point Guizhou Relationship 1 • Allows existing framework to form basis for Pilot Program Familiarity and Experience • Enables OU to move quickly on a Pilot Program 2 with China Existing Accredited Executive • Provides a degree program that can be adapted for China 3 MBA Program • Equips OU to successfully deliver needed courses Solid Core Faculty 4 • Gives OU staff support to pursue programs in China International Orientation 5 BAKER Source: Oakland University STRATEGY GROUP Page 8 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper Executive Summary Oakland University Model Evaluation Against OU Strategic Resources Depending on existing relationships, OU should start with a mutual partnership, and later 7 develop into a Consortium Partnership Individual Mutual Joint Consortium Consortium Branch Partnership Entity Partnership Partners Model Strategic Resource Guizhou 1 relationship China 2 experience Existing 3 program 4 Core faculty 5 International orientation Overall BAKER Source: Baker Strategy Group STRATEGY GROUP Page 9 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper Oakland University I. Executive Education in China BAKER STRATEGY GROUP Page 10 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper I. Executive Education in China Oakland University Pros and Cons of Investing in China Although there are concerns for investing in China at this time, the opportunities outweigh the drawbacks Pros Cons • WTO Accession • Current terrorist Crisis International • 2008 Summer Olympics • Global Recession • Strong domestic economy • Underdeveloped stock market Economic • High levels of FDI • Unperforming loans at Chinese • SEZ’s offer economic incentives banks • Office government support for • Uncertain leadership succession Political markets and private sector • CCP divided on foreign enterprises • Emphasis on management • Uncertainty from CCP policy development meddling • Growing legal system • Corruption Other • General Chinese concern for • Poor Infrastructure economic and political stability • Unemployment BAKER Source: Baker Strategy Group STRATEGY GROUP Page 11 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper I. Executive Education in China Oakland University China Economic Statistics General economic indicators show a fast-growing economy coupled with stable, low level inflation 1997 1998 1999 2000 * 2001 * 2002 * GDP (US$ bn) 902.0 964.0 1,012.0 1,101.0 1,204.0 1,324.0 YOY 6.9% 5.0% 8.8% 9.4% 10.0% Real GDP Growth 8.8% 7.8% 7.2% 8.2% 7.8% 7.9% YOY -11.4% -7.7% 13.9% -4.9% 1.3% GDP per head (US$) 730.0 780.0 810.0 870.0 940.0 1,030.0 YOY 6.8% 3.8% 7.4% 8.0% 9.6% Consumer Price Inflation 2.8% -0.8% -1.3% 0.4% 1.0% 1.8% YOY -128.6% 62.5% -130.8% 150.0% 80.0% Trade Balance (US$ bn) 46.2 46.6 36.2 36.7 32.9 28.8 YOY 0.9% -22.3% 1.4% -10.4% -12.5% Total Foreign Debt (US$ bn) 159.2 167.8 164.8 162.1 165.3 177.3 YOY 5.4% -1.8% -1.6% 2.0% 7.3% * Forecast BAKER Source: The Economist Intelligence Unit STRATEGY GROUP Page 12 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper I. Executive Education in China Oakland University Provincial GDP Growth (in RMB) Guizhou and Chongqing, OU’s most natural target markets, rank below the top 20 provinces in terms of GDP and GDP growth Province 1994 1995 1996 1997 1998 1999 2000 CAGR 1 Guangdong 412 530 656 756 826 1,001 1,121 18.2% 2 Shandong 376 493 600 687 747 906 1,012 18.0% 3 Jiangsu 394 508 604 690 751 902 1,004 16.9% 4 Zhejiang 259 347 417 479 520 632 707 8.2% 5 Henan 216 296 368 422 454 560 629 19.5% 6 Hebei 212 281 347 409 444 543 610 19.2% 7 Hubei 182 236 299 357 386 474 535 19.6% 8 Shanghai 192 243 292 347 385 461 517 17.9% 9 Liaoning 239 275 318 361 405 466 513 13.6% 10 Fujian 164 213 260 310 347 419 472 19.3% 11 Hunan 165 216 266 309 335 409 458 18.6% 12 Sichuan 270 348 300 343 373 404 426 7.9% 13 Anhui 145 197 235 276 293 359 402 18.6% 14 Heilongjiang 157 199 242 280 295 359 400 16.9% 15 Beijing 105 138 163 187 210 250 280 17.7% 16 Guangxi 121 158 188 208 198 248 272 14.5% ... 22 Chongqing NA NA 119 140 149 173 190 12.5% ... 27 Guizhou 51 62 72 82 88 104 118 15.1% BAKER Source: Access Asia STRATEGY GROUP Page 13 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper I. Executive Education in China Oakland University Provincial Population However, Guizhou and Chongqing are in the top 20 in terms of population, making up 5.4% of China’s 1,273 million people 2000 % Share 2000 % Share of Total Province 1999 2000 of Total Province 1999 2000 Fujian 33 34 2.7% Henan 99 100 7.9% Shanxi 33 34 2.7% Shandong 95 96 7.5% Chongqing 31 31 2.4% Sichuan 88 89 7.0% Heilongjiang 29 30 2.3% Jiangsu 76 76 6.0% Jilin 28 28 2.2% Guangdong 71 72 5.7% Gansu 26 26 2.1% Hebei 70 71 5.6% Inner Mongolia 25 25 2.0% Hunan 69 70 5.5% Xinjiang 17 18 1.4% Hubei 62 62 4.9% Shanghai 13 13 1.1% Anhui 56 57 4.5% Beijing 12 12 0.9% Guangxi 47 48 3.8% Hainan 8 8 0.6% Zhejiang 46 47 3.7% Tianjin 6 6 0.5% Jiangxi 46 46 3.6% Ningxia 6 6 0.4% Liaoning 43 44 3.4% Qinghai 5 5 0.4% Hunan 41 41 3.3% Tibet 3 3 0.2% Guizhou 38 38 3.0% Shaanxi 37 37 2.9% TOTAL 1,259 1,273 100.0% BAKER Source: Access Asia STRATEGY GROUP Page 14 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper I. Executive Education in China Oakland University National Labor Market Almost 80% of China’s 643 million labor market in 2000 is concentrated in traditional industries, such as agriculture and construction Total Population  = 1,273 Million National Employment  = 643 Million Employment Sector 1994 2000 CAGR Agriculture, forestry & fisheries 334 330 -0.2% Manufacturing 96 89 -1.4% Wholesale, retail and catering trade 39 52 4.9% 51% Construction 32 35 1.6% Transport, storage, post and telecom 19 21 2.3% Education, culture and the media 14 17 2.4% Government and social agencies 10 11 1.1% Service sector 6 10 7.9% Labor Mining & quarrying 9 7 -4.7% 49% Non Labor Market Health, sports & social welfare 4 5 2.5% Market 643 Million Banking and insurance 3 3 4.5% 630 Million Utilities (water, gas & electricity) 2 3 3.8% Scientific research 2 2 0.5% Water conservancy 1 1 -4.0% Real estate 1 1 5.7% Others 42 56 5.0% Total 615 643 0.7% BAKER Source: Access Asia, Understanding China: 了解中国 , John Bryan Starr STRATEGY GROUP Page 15 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper I. Executive Education in China Oakland University Urban Employment And 120 million, almost 65%, of the 187 million urban employment in 2000 is concentrated in state-owned enterprises Total Labor Market  = 643 Million Urban Employment by Ownership  = 187 Million 140 120 120 29% 100 Urban 80 187 Million 71% Rural 60 456 Million 40 40 20 20 7 0 State Private Collective Unemployed BAKER Source: Access Asia, Understanding China: 了解中国 , John Bryan Starr STRATEGY GROUP Page 16 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper I. Executive Education in China Oakland University MBA Program Growth in China MBA programs have grown quickly in China over the last 4 years to meet the changing needs of managers in a variety of enterprises MBA program growth in China Cumulative MBA Holders in China Enrollment in Chinese MBA Schools Participating Chinese Schools 40,000 30,000 80 75 35,000 35,000 25,000 70 25,000 30,000 60 56 20,000 23,500 25,000 50 20,000 15,000 40 15,000 26 30 10,000 10,000 20 5,000 5,000 5,000 9 5,000 10 1,000 86 0 0 0 0 1991 1997 1999 2001 1991 1997 1999 2001 1991 1997 1999 2001 BAKER Source: Asia One, US Consulate in Hong Kong, US Army Research office – Far East STRATEGY GROUP Page 17 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper I. Executive Education in China Oakland University Estimated Annual MBA Demand in China The current estimated 35,000 MBA enrollment translates into 20,000 estimated annual graduates, short of the 50,000 estimated annual demand Forecasted MBA Demand China’s demand for MBAs is expected to exceed 1.4 million in the next decade -William Daley US Secretary of Commerce, 1998 Forecasted Senior Managers Forecasted MBA Demand • 350,000 senior managers needed China’s goal is to have 50,000 annual Estimated annual in 5 years MBA graduates demand for MBA • 25,000 current MBAs -Siwei Chen graduates • 35,000 in-school MBAs Vice Chairman of NPC • Assume 50% of senior managers 1999 50,000 need MBA degree BAKER Source: Asia One, US Consulate in Hong Kong, US Army Research office – Far East STRATEGY GROUP Page 18 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper I. Executive Education in China Oakland University Business Training Services While there is heavy competition for corporate and business training, universities are uniquely positioned to offer executive MBA degrees Basic General Management MBA English Skills Training Programs Nature of coursework Business English Business and Hand-on courses and Degree program reading, writing, and administrative skills workshops to develop providing a complete speaking manager business orientation effectiveness • Business Writing • Computers Examples • Managing Teams Emphasis in: • Market Terms • Basic Finance • Business Planning • Finance • Specific Industry • General Marketing • Negotiation • Marketing Terminology • Time Management • Performance • Accounting • Cultural Sensitivity Reviews • Etc. Who is equipped to offer this • Universities • Corporate Universities • Training Companies • Individual Training BAKER Source: Baker Strategy Group STRATEGY GROUP Page 19 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper I. Executive Education in China Oakland University MBA Programs in China A foreign university, such as OU, offers an internationally accredited degree that has clear advantages over a Chinese MBA degree Traditional Full Time Executive Part Time Pros Cons Pros Cons • Top students go • Top students go • Easy to obtain • Easy to obtain abroad abroad • Often relatively • Often relatively • Degree not • Degree not inexpensive inexpensive recognized recognized • Manager Chinese internationally internationally continues to Degree contribute to the enterprise Pros Cons Pros Cons • More expensive • Top students go • Internationally • Internationally than Chinese abroad recognized recognized degree • More expensive degree degree • Often more than Chinese • Manager • US mgt. theory US demanding degree continues to Degree program • Often more contribute to the demanding enterprise program • US mgt. Theory and methods BAKER Source: Baker Strategy Group STRATEGY GROUP Page 20 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper Oakland University II. 5 Models of Partnering BAKER STRATEGY GROUP Page 21 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper Oakland University Five Partnering Models Many foreign universities are offering executive MBA programs in China using at least five models for partnering with Chinese schools 1 2 3 4 5 Mutual Partnership Consortium Partnership Consortium Partners Individual Branch Joint Entity Model Global Management Executive MBA in Program International MBA International MBA Executive MBA Program Leadership • Thunderbird • The University of • Shanghai Jiao Tong • Tsinghua Univ. • Beijing Electric Power Partners Graduate School of British Columbia University • Fordham University College International • Shanghai Jiao Tong • The European • Santa Clara Univ. • Shanghai Metallurgy Management University Foundation for • Renessler Chengdu Hydro Elect. • Team Canada Trade Management Dev. Polytechnic Univ. Power College Mission • MOFTEC • Loyola University • Plato College • European • 22 other US • Napier University Commission Universities • James Watt College Degree Certificate UBC MBA CEIBS MBA Fordham Univ. MBA Certificate Length 8 Courses 18 Courses 22 Courses 12 Courses 8 Courses 1 Year Program 1.5 Year Program 2 Year Program 2-Year Program 1 Year Program Tuition $ 13,250 $ 19,133 $ 23,614 $ 19,500 $? English Language English, but Chinese English Both English and English can be arranged Chinese BAKER Source: website of schools, WSJ Interactive STRATEGY GROUP Page 22 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper II. 5 Models of Partnering Oakland University Thunderbird’s China Global Management Program Thunderbird has set up a branch office in Shanghai and offers courses managed and 1 taught directly by Thunderbird staff and professors Thunderbird’s China Global Management Program School Program Overview Date Began General Management Program Program • 8 modules: - Initial 5-day orientation - One 4-day module - Five 3-day modules Thunderbird, The American Graduate -One final 5-day module School of International Management United States • Taught by Thunderbird faculty BAKER Source: Thunderbird, Baker Strategy Group STRATEGY GROUP Page 23 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper II. 5 Models of Partnering Oakland University Sample of Thunderbird’s CBSD clients in China Thunderbird’s Center for Business Skills Development (CBSD) has delivered programs to 1 over 40 US and Chinese business clients in China 3M China Ltd. Hilti (China) Ltd. ABB China Ltd., Beijing IBM China Co., Ltd Advanced Semiconductor Manufacturing Co., Ltd. International Nutrition Co., Ltd. Alcatel China, Ltd. Mary Kay Inc. Z Alcoa (Shanghai) Aluminum Products Co., Ltd. Motorola (China) Electronics, Ltd. AlliedSignal (Kaiping) Industrial Fiber Company, Ltd. Motorola University American Standard (Hua Mei) Sanitary Ware Co., Ltd. Ogilvy Public Relations Worldwide Tyco (AMP) Shanghai Ltd. Pepsico, Inc. Pepsi-Cola Division China Business Unit Astra Zeneca (Wuxi) Pharmaceutical Co., Ltd. Pepsico Foods (China) Co., Ltd. Aventis (China) Inv. Co., Ltd. Pepsico, Inc. HK BellSouth Shanghai Center, Ltd. Pharmacia & Upjohn (China), Ltd. Borg Warner Cooling System Polaroid of Shanghai Ltd. China Unicom Roche (China), Ltd. DuPont China Holding Co., Ltd. Shanghai Office Shanghai Bertelsmann Culture Industry Co., Ltd. EDS Electronic Data Systems (HK), Ltd. Shanghai CompAir Compressor Co. Ltd. Eli Lilly S.A. Shanghai Rep. Office Shanghai Eaton Engine Components Co., Ltd. Export Import of East Asia, Inc., Shanghai Shanghai Huateng Software Systems Co., Ltd. Fisher-Rosemount China Ltd. Shanghai Johnson Ltd. Global Sources Shanghai Municipal People's Government Guangzhou Pepsi-Cola Beverage Co. Shanghai Simicomix Electronic Co., Ltd. Henkel (China) Investment Co., Ltd. BAKER Source: Thunderbird, Baker Strategy Group STRATEGY GROUP Page 24 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper II. 5 Models of Partnering Oakland University Thunderbird’s Estimated Revenues and Costs Thunderbird’s Global Management Program appears to be profitable, based on a simple 1 estimate of costs and revenues Per Person Per Day Total Per Day Total Key Assumptions Revenue $ 552 $ 5,520 $ 132,480 Expenses • Estimated 10 students Training Facility $ 100 $ 1,000 $ 24,000 enrolled in the program Administrative $ 50 $ 500 $ 12,000 Faculty Fees $ 120 $ 1,200 $ 28,800 • 24 days of actual classes Faculty Expenses $ 50 $ 500 $ 12,000 Student Hotel $ 75 $ 750 $ 18,000 • 1 instructor for any given Student Food $ 25 $ 250 $ 6,000 module of classes Student Materials $ 10 $ 100 $ 2,400 Misc $ 50 $ 500 $ 12,000 • Tuition is paid by either participants or sponsoring Total Expenses $ 480 $ 4,800 $ 115,200 corporate partners Net Difference $ 72 $ 720 $ 17,280 % of Revenue 13.0% % of Costs 15.0% BAKER Source: Thunderbird, Baker Strategy Group STRATEGY GROUP Page 25 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper II. 5 Models of Partnering Oakland University UBC Partners with Jiao Tong UBC chose to partner with Shanghai Jiao Tong University to offer an executive MBA 2 degree from UBC Shanghai Jiao Tong University The University of British Columbia School: Commerce and Business Target: Senior manages in Chinese Administration enterprises, joint ventures, and government Sponsor: Team Canada trade mission to China, lead by Prime Minister jean Chretien Model: Majority of classes taken in Shanghai and 9 provincial premiers at Jiao Tong University. The last few classes are taken in Canada on UBC’s campus Graduates Over 300 Chinese have graduated from this program BAKER Source: University of British Columbia STRATEGY GROUP Page 26 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper II. 5 Models of Partnering Oakland University CEIBS Joint Venture with Jiao Tong CEIBS is a separate joint venture between Shanghai Jiao Tong University 3 and the European Foundation for Management Development European Foundation for Management Shanghai Jiao Tong University Development Shanghai, China Brussels, Belgium Mission: Europe's forum for As one of China’s most prestigious information, research, universities, shanghai Jiao Tong University Established 1994 networking and dialogue on has partnered with a number of foreign innovation and best practice universities to offer MBA programs to Program Target: Senior executives in management development Chinese students Program Length: 2 years, 22 4-day weekends BAKER Source: CEI BS STRATEGY GROUP Page 27 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper II. 5 Models of Partnering Oakland University CEIBS Information for 1995-2000 CEIBS has provided executive MBA degrees to 1,041 people, mostly men in manufacturing 3 and telecom in either state run or foreign  = 1,041 students By Gender By industry By Sector 3% Private 10% er on al al nt de m ng 14% th ti ti c c i e a c o r i O ruc eu an rnm Tr le tu 46% Te fac Govt. 86% u an M State Women Men Owned 150 891 st ac Fin ve o G JV/ WOFE on m C har P 0% 10% 20% 30% 40% 41% BAKER Source: CEIBS STRATEGY GROUP Page 28 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper II. 5 Models of Partnering Oakland University Jesuit Consortium and Tsinghua University Partnership The Jesuit Consortium, a group of 26 universities and colleges, has partnered with 4 Tsinghua University to form BiMBA US Partnering Schools China’s Tsinghua University Beijing International MBA BAKER Source: Jesuit Consortium STRATEGY GROUP Page 29 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper II. 5 Models of Partnering Oakland University BiMBA Program Structure This model allows the consortium to draw upon over 1,000 US professors while offering a 4 quality MBA degree from Fordham University Program Basics Year 1 Year 2 Year 3 •Financial Management •Innovation & Change Management Date Formed 1998 •Accounting for Executives •MIS & Information Technology Spring •PKU Heritage Lecture Series No. 3 Management •Global Issues Lecture Series. No. 3 •PKU Heritage Lecture Series No. 7 Model Courses taught •Global Issues Lecture Series. No. 7 in China, with 3- week study tour •Marketing Management •Global Policy & Strategy in US at the end •Operations Management •Cross Culture Management •PKU Heritage Lecture Series No. 4 &Negotiation of the program Summer •Global Issues Lecture Series. No. 4 Instruction: US professors •First Executive Residency •Entrepreneurship and Firm Growing •3-week study tour in US •Managerial Economics •Global Legal and Ethic Issues •Business Statistics •PKU Heritage Lecture Series No. 5 Winter •PKU Heritage Lecture Series No. 1 •Global Issues Lecture Series. No. 5 •Global Issues Lecture Series No.1 •Business & Economic Environment in •International Trade and Finance China •HRM and Leadership •Management & Organization Behavior •PKU Heritage Lecture Series No. 6 Fall •PKU Heritage Lecture Series No. 2 •Global Issues Lecture Series. No. 6 •Global Issues Lecture Series No. 2 BAKER Source: Jesuit Consortium, Baker Strategy Group STRATEGY GROUP Page 30 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper II. 5 Models of Partnering Oakland University The Delter Canada Model Delter Canada formed a separate entity that offers content from Scotland universities and 5 partners with local institutes in various Chinese cities US Consortium Chinese partner Institutions 北京 Beijing Beijing Electric Delter Canada Power College Canada Shanghai 上海 The Shanghai Metallurgy College Delter Napier University International 程度 Chengdu Scotland Business The Chengdu Hydro Institute Electric Power College 武汉 Wuhan James Watt College Wuhan Railway Vocational Scotland Technical College Changchun 长春 TBD BAKER Source: Delter STRATEGY GROUP Page 31 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper Oakland University III. OU EMBA-HCM Program BAKER STRATEGY GROUP Page 32 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper III. OU EMBA-HCM Program Oakland University Overview of Oakland University In 44 years, Oakland University has grown to become one of the top universities in the Midwest Brief history OU today 1957 Michigan State University created from Wilson land and money donation 1959 First students enrolled to Michigan State University – Oakland 1963 Named changed to Oakland University Enrollment 15,875 • Undergraduate 12,529 1970 First Board of Trustees • Graduate 3,346 1995 Strategic Plan, 1995-2005, was developed Academic Programs • Baccalaureate 110 1997 Creating the Future launched • Graduate and Certif. 69 1999 Full re-accreditation from the Central Other facts Association of Colleges and Schools • Undergraduate class size 30 • Student:Faculty Ratio 19:1 2000 Ranked among the top ten regional public • Faculty with Ph.D. 90% universities in the Midwest for 1999/2000 by • Kresge Library 688,000 U.S. News and World Report volumes BAKER Source: Oakland University STRATEGY GROUP Page 33 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper III. OU EMBA-HCM Program Oakland University OU Graduate Degrees in the School of Business OU currently offers 5 graduate degrees from the School of Business Administration, 1 of which is an executive MBA in health management OU Schools Graduate degrees currently offered Executive MBA • Health Care Management MBA (and accelerated MBA) • Accounting • International Business • Business Economics • Management Information • Entrepreneurship Systems • Finance • Marketing • Health Care Management • Production/Operations • HR Management Management MAcc • Public Accounting • Managerial Accounting • Systems Accounting Post Master Certification Programs • Accounting • Management Information • Business Economics Systems • Finance • Marketing • HR Management • Production/Operations • International Business Management MS in Engineering Management BAKER Source: Oakland University STRATEGY GROUP Page 34 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper III. OU EMBA-HCM Program Oakland University EMBA-HCM Program Courses The EMBA-HCM program involves 39 credits, 29 credits in core courses and 10 credits in elective courses Core courses Credits Elective Course Credits Forecasting in Health Care 2 Statistical Methods 2 Quality Assurance in Health Care 2 Financial & Managerial Accounting 3 Cost Management in Health Care 2 Managerial Economics 3 Government Policy in Health Care 1 Health Economics 2 International Comparisons in Health Care 1 Teambuilding, Leadership, & Communication 2 Managing Cultural Diversity 1 Human Resources Management 2 Hospital Administration 1 Strategic Management 3 Transforming the Health Care Organization 2 Operations Management 2 Contracts & Negotiation in Health Care 1 Healthcare Information Systems 2 Outcomes Assessment in Health Care 1 Legal & Ethical Issues 2 New Ventures in Health Care 1 Marketing Management 3 Facilities Planning and Evaluation 1 Financial Management 3 Project Management in Health Care 1 Managing Technology in Health Care 2 Data Warehousing in Health Care 1 Health Care Marketing & Consumer Satisfaction 2 New Health Care Services Development 1 Hospital Finance & Managed Care 3 Mergers & Acquisitions in Health Care 2 Choose a total of 10 Total 29 BAKER Source: Oakland University STRATEGY GROUP Page 35 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper III. OU EMBA-HCM Program Oakland University OU School of Business Faculty These courses are taught by the School of Business 60-member faculty, who teach the graduate and undergraduate Assistant Professors and Professors Associate Professors Lecturers Barclay, Elizabeth A. Bhargava, Mukesh Aigbedo, Henry Bazaz, Mohammed S. Callaghan, Joseph H. Bangs, Joann Braunstein, Daniel N. Coppin, Addington M. Cardimen, Frank P. Dillon, Gadis J. Fliedner, Gene Carter, E. Vincent Doane, David P. Folland, Sherman T. Deng, Xiaodong Esposito, Louis Henke, John W. Fountain, James Farragher, Edward J. Kim, John D. Ganesh, Usha Fosu, Augustin K. Mathieson, Kieran Gbane, Ousmann-Alain, Jr. Horwitz, Ronald M. Mukherji, Nivedita Heiple, Roger Izraeli, Oded Nathan, Kevin S. Isken, Mark Kleiman, Robert T. Parkash, Mohinder Lee, Yong-Shik Lauer, Thomas W. Pelfrey, Sandra S. McGowan, Carl Mayer, Donald O. Pisharodi, R. Mohan Miree, Cynthia Murphy, J. Austin Theisen, Barbara A. Rajagopalan, Balaji Murphy, Kevin J. Tracy, Ronald L. Savage, Arline Parameswaran, Ravi Wharton, T. J. Setzekorn, Kristina Peacock, Eileen Willoughby, Floyd G. Sharma, Sri Sahu, Anandi P. York, Kenneth M. Sidaway, David D. Schwartz, Howard S. Simon, Mark Stano, Miron Sugumaran, Vijayan Tanniru, Mohan Whitaker, Jim BAKER Source: Oakland University STRATEGY GROUP Page 36 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper III. OU EMBA-HCM Program Oakland University EMBA-HCM Program There are 4 basic requirements for admission into the EMBA-HCM program, a criteria that can be easily adapted for 4 General Requirements Other Information • 30 applicants accepted each year to form “cohort group” 5 years of 1 experience in health • Courses taught by faculty and health care care industry practitioners 2 Undergraduate • All courses taken from MBA program degree 3 • Program length = 21 months Employee endorsement • Courses taught on alternating weekends: - Friday afternoons 4 GMAT score - Saturday, all day BAKER Source: Oakland University STRATEGY GROUP Page 37 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper III. OU EMBA-HCM Program Oakland University Oakland University’s Strategic Plan, 1995-2005 Developing executive MBA programs in China would fit into Strategy 2 and Strategy 8 of OU’s Strategic Plan 1 2 3 4 Ensure an Strengthen Environment rich in Encourage undergraduate graduate study diversity, support research, environment of responsive to services and scholarship, and learning excellence regional and activities, and creative activities national needs sports activities 5 6 7 8 Expand efforts to Develop and Create an Increase self- serve the support areas of empowered assessment activity community institutional community of excellence diverse, unified, committed, and motivated employees BAKER Source: Oakland University STRATEGY GROUP Page 38 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper III. OU EMBA-HCM Program Oakland University OU Strategic Resources Oakland University has 5 key strategic resources which enable OU to successfully offer the EMBA-HCM program in China Strategic Resources Implications • Makes Guizhou area a natural geographic starting point Guizhou Relationship 1 • Allows existing framework to form basis for Pilot Program Familiarity and Experience • Enables OU to move quickly on a Pilot Program 2 with China Existing Accredited Executive • Provides a degree program that can be adapted for China 3 MBA Program • Equips OU to successfully deliver needed courses Solid Core Faculty 4 • Gives OU staff support to pursue programs in China International Orientation 5 BAKER Source: Oakland University STRATEGY GROUP Page 39 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper III. OU EMBA-HCM Program Oakland University Guizhou, China OU’s 15-year relationship with Guizhou universities makes Guizhou a natural starting point for offering the EMBA-HCM program BAKER Source: Guizhou Education and Research Network STRATEGY GROUP Page 40 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper III. OU EMBA-HCM Program Oakland University Schools in Guizhou Province Almost 23,000 students learn from over 3,500 faculty in the nine top colleges and universities in Guizhou School Students Faculty Offer Masters Guizhou University 10,000 1,231 Yes Guizhou College of Minority Nationalities 2,000 400* No Guizhou College of Finance and Economics 2,100 290 Yes Guizhou Institute of Technology 1,500 200* Yes* Guizhou Normal University 3,000 432 Yes Guiyang Medical College 1,200 324 Yes Guiyang College of Traditional Chinese Medicine 1,000* 250* No* Zunyi Medical College 1,000* 250* No* Guizhou Institute of Education 1,000* 250* No* BAKER Source: Guizhou Education and Research Network STRATEGY GROUP Page 41 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper III. OU EMBA-HCM Program Oakland University Model Evaluation Against OU Strategic Resources Depending on existing relationships, OU should start with a mutual partnership, and later develop into a Consortium Partnership Individual Mutual Joint Consortium Consortium Branch Partnership Entity Partnership Partners Model Strategic Resource Guizhou 1 relationship China 2 experience Existing 3 program 4 Core faculty 5 International orientation Overall BAKER Source: Baker Strategy Group STRATEGY GROUP Page 42 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper III. OU EMBA-HCM Program Oakland University Michigan Community Colleges One example of a consortium could be the 28 Michigan colleges that make up the Michigan Community College virtual Learning Collaborative Michigan Community Colleges Michigan Community Colleges 1. ... 15. Mid-Michigan Community College 2. Bay de Noc Community College 16. Monroe Community College 3. Delta College 17. Montcalm Community College 4. Glenn Oaks Community College 18. Muskegon Community College 5. ... 19. Northwestern Community College 6. Grand Rapids Community College 20. 7. ... 21. . . . 8. Jackson Community College 22. Oakland University Community 9. ... College 10. Kellogg Community College 23. St. Clair County Community College 11. Kirtland Community College 24. Schoolcraft College 12. Lake Michigan College 25. ... 13. Lansing Community College 26. ... 14. Macomb Community College 27. Wayne County Community College 28. West Shore Community College BAKER Source: Oakland University STRATEGY GROUP Page 43 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper Oakland University IV. Next Steps BAKER STRATEGY GROUP Page 44 October 1, 2001
    • Executive Education Opportunities in China Discussion Paper IV. Next Steps Oakland University Proposed Development Process The next steps are to agree to proceed and begin to coordinate with the School of Business Program Setup Program Growth 10/04/01 Oct., 01 Nov., 01 Nov., 01 Fall, 02 Winter, 02 Fall, 03 Fall, 04 Programs Initial School of Project Project Meetings Pilot Running EMBA-HCM EMBA Meeting Business Team Team Program Programs others Meeting Meeting in China Agree to Identify Develop Negotiate Outcomes • Good student, faculty, and school feedback proceed Project process and first Pilot • Satisfactory financial results Team timeline Program Support Offiline meetings Relationship Management Issues Management Communication BAKER Source: Oakland University, Baker Strategy Group STRATEGY GROUP Page 45 October 1, 2001
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