1. Strategic Management Project
“Misr International University”
Presented to:
Prof. Ashraf Labib
Names IDs
Afnan Hassan Mahgoub 19125066
Eslam Ahmed Sedky Mohamed 19222359
Radwa Hosny Mohamed 19222155
2. 1
Table of Content
Section 1: Strategic Posture
1.1 Mission 2
1.2 Vision 2
1.3 Strategic Objectives and Core Values 2
1.4 History 4
1.5 Board of Directors & Top Management 4
1.6 Organizational Chart 6
1.7 Strategy 7
Section 2: External Environment Analysis
2.1 PESTEL Analysis 8
2.1.1 Issue Priority Matrix for PESTEL Analysis 13
2.1.1.1 PESTEL Analysis Factors Used “Clarified” 15
2.2 Industry Analysis: Porter’s Five Forces Model 16
2.2.1 Issue Priority Matrix for Porter’s Five Forces Model 20
2.3 Strategic Group Map 22
2.4 Strategic Type 22
2.5 Value Discipline Model 23
2.6 Boston Consulting Group (BCG) Matrix 24
2.7 Industry Matrix 27
2.7.1 EFAS (External Factor Analysis Summary) 30
Section 3: Internal Environment Analysis
3.1 Value Chain Analysis 31
3.1.1 Financial Ratios 36
3.2 VRIO Analysis 40
3.3 IFAS (Internal Factor Analysis Summary) 42
Section 4: Strategic Factor Analysis
4.1 SFAS (Strategic Factor Analysis Summary) 44
4.2 Space Matrix (Strategic Position & Action Evaluation) 45
4.3 TWOS Matrix 47
4.4 Grand Strategies 50
4.5 QSPM (Quantitative Strategic Planning Matrix) 52
3. 2
1. Strategic Posture:
1.1MIU Mission:
Misr International University is committed to develop and sustain its academic programs and
research activities through integrating educational and scientific research with community
service and qualify its students to undertake leading roles in various professions, and actively
participate in the sustainable development of the Egyptian society. It also seeks upgrading its
material and human resources, while maintaining its independence and competitiveness, to
establish its national and international reputation.
Misr International University’s mission for the next two years is to expand the focus of the
institution by establishing a post graduate program. Additionally, MIU plans to introduce new
fields of specialization in different faculties.
On the international level, MIU is committed to collaborate with many reputable universities
worldwide to diversify its programs and qualify its graduates to meet the needs of the job
market and compete internationally.
1.2MIU Vision:
Misr International University aims to become a premier educational institution by providing an
academically and a socially supportive environment to nurture graduates to be lifelong learners,
professionals, pioneers, and initiative takers who endeavor to enhance scientific research,
community service, and professionalism, ultimately promoting development while preserving
national identity.
1.3 Strategic Objectives:
1. Preparing distinguished graduates with a high level of academic, professional and leadership
competence to meet the needs of the job market.
2. Developing graduate studies programs in accordance with the professional standards of each
specialization in the various faculties.
3. Advancing the University’s systems through cooperating and opening dialogue with
international academic and research institutions to strengthen its position on the
international scene as well as promoting scientific research to support the university’s
research contribution.
4. Cooperate with various community organizations through providing different services and
developing collaborative partnerships for mutual benefit.
5. Boost the University’s performance and strengthen its institutional capacity.
6. Develop the campus infrastructure and horizontal expansions and initiate self-funding
projects.
4. 3
Core Values:
The University’s system of values is the main power that allows it to creatively invest in its
human and material resources and potentials to achieve added value and improve the quality
of life of its employees. The University considers this a strategic goal to enhance its
development and stimulates organizational and institutional creativity and collective work to
accomplish the university tasks and support its progress. Accordingly, Misr
International University is committed to the following values:
Responsible Freedom
Development cannot be achieved without freedom and a healthy environment to implement
individual and collective development plans, and By supporting the academic freedom of the
teaching and administrative staff as well as students, while abiding by the legal framework,
and ethical- social responsibility to achieve development as an end result .
Independence
The University strives to eliminate all the factors that could hinder its scientific and
intellectual progress and stand in the way of independently achieving its strategic goals and
objectives.
Creativity
The University promotes individual and collective creativity to ensure optimum use of the
available potentials.
Transparency and Circulation of Information
The University believes that it cannot achieve its goals without transparency and disclosure.
The university allows efficient distribution and circulation of information among all the
employees in order to gain the trust of students and teaching and administrative staff; thus,
encouraging them to participate in development plans using transparency and disclosure to
achieve its strategic goals.
Participation and Teamwork
Development cannot be achieved without effective and positive participation that can improve
the performance of the individual and the institution.
The University emphasizes active and fair participation of all employees who are involved in
higher education and scientific research and community service, regardless of their posts, to
achieve integration, thus utilizing all capabilities and potentials. Thus, using positive
participation that can improve the performance of the individual and the institution to achieve
development.
5. 4
Fairness
Equality in education does not only mean that everyone should have the right to education,
but it also means that all students should be provided with all kinds of opportunities to
successfully graduate. The right to education is achieved through providing students with
opportunities to continue their education, succeed, and make achievements.
Quality and Excellence
Misr International University understands the current and future needs and expectations of its
stakeholders and is committed to meet the expectations of all the beneficiaries whether
students, graduates, teaching staff, job market and the administrative body. It is also
committed to achieve quality leadership and unity of vision, goals and strategies within the
university system, to create the proper academic and organizational environment to achieve
its goals at the lowest cost, to make fact-based decisions, and continuous improvement to
achieve excellence and enhance its competitiveness.
1.3MIU History
Misr International University in Cairo (MIU) was established in accordance with the presidential
decree no. 246 of the year 1996 with the purpose of developing an academic institution that
would directly and honestly address the practical realities of the 21st century.
MIU Board of directors & Top Management
Mr. Mohamed Hussein ElRashidy Prof. Ahmed Emad
Chairman, Board of Trustees University Vice
President
“Since Misr International University was established, we have been committed to academic
distinction and quality education. Looking back at the past years, I am filled with pride at the
6. 5
university’s achievements & continuous pursuit of intellectual, professional & creative
development of its students.
MIU is fully aware of the importance of opening up to the world. As such, we engage in a
variety of contacts with renowned American & European universities, giving our students the
golden chance to prepare themselves for entry into the global workforce.
With our unceasing commitment to excellence & unwavering nurture of the expanding
student body, Misr International University will continue to provide the necessary skills &
knowledge for tomorrow’s professionals.” MR. Hussein El Rashidy Founder of Misr
International University.
8. 7
Here is some information regarding the Business Administration faculty:
Facts about the faculty:
The Faculty of Business Administration and International Trade offers educational programs
that are in line with international quality standards and prepare graduates to serve the
community. Significant efforts are exerted by the faculty members and the teaching assistants
to support educational capacities and self-learning through skill-oriented courses. Our faculty
pays close attention to exploring and meeting the job market needs through the integration
between theory and practice. The Faculty of Business Administration and International Trade is
keen on supporting the academic level of students through collaboration programs with
distinguished and top ranked European universities to help faculty and students maintain a
competitive edge. To this end, the Faculty has developed and implemented a strategic plan that
ensures the continuous fulfillment of its mission.
Mission and Vision of the faculty:
Vision Statement: “We aspire to be a distinguished source of business knowledge and scientific
research nationally and internationally”
Mission Statement: “We are committed to prepare qualified human calibers who are able to
compete in national & international labor markets through delivering diverse academic
programs, providing appropriate environment for scientific research, and collaborating with
national, and international institutions in order to serve the community”.
1.7 MIU Strategies:
The factor analysis shows the cost leadership strategy (CLS) which focuses on how the university
determines its faculties fees as to remain competitive in its industry. The university’s target
customers are middle class. It achieves one of its competitive sides in setting tuition fees slightly
lower than other private universities. Fees increase is within limit and never exceeding when
compared to other private universities. The university cost minimization is a high importance
aspect with respect to the quality measurements. As an advantage, the university is considered to
be affordable in comparison to its fellow private universities.
The second factor includes service differentiation (SD) strategy which examines wide range of
differentiated services the university offers. It highlights how the university differentiates its
products/services on customer value proposition. The university offers wide range of
differentiated supplementary services in comparison to its competitors such as sports centers,
modern internet services as well as state of the library.
9. 8
2. External Environment
2.1 PESTEL OR STEEP ANALYSIS
Generally, the external environment facing MIU is composed of all the factors or influences that
are outside with an impact on the operation of business. For that reason, MIU must act or react
to be able to keep up its operations’ flow.
For that reason, applying the environmental analysis is very important to assess the changing
world which the MIU is operating on and to help the university have which called” the warning
system” to be able to identify both the potential opportunities and threats.
The Usage of the PESTEL or STEEP analysis is a tool for environment tracking:
Political & legal Factor: Political policy and politics always play a major part in a firm or
organization, as we analyse the current state of affairs and the influence of any changes on the
faculty of commerce and business administration. Developments in the political climate
constantly bring diverse socio-economic changes, which can become major variables in
determining corporate strategy and work functions of an organization.
Changes in the political system have an impact on numerous policy changes and changes in the
work pattern of educational institutions.
Throughout human history, government stability has been far from the norm. All political
regimes, including democratic ones, are vulnerable. People may concentrate on working,
saving, and investing if a country does not have to worry about conflicts or major regime
changes, regardless of political regimes. As a result, political stability might have an
impact on commercial stability
• • If the Ministry of Higher Education decides to revoke the licenses of all educational
institutions that have not completed accreditation, MIU will be in jeopardy because they
have not completed it yet.
• MIU has a good chance of obtaining accreditation in the Business Faculty, as they have
in other faculties.
• MIU (Faculty of Business) is regarded as one of the most cost-effective faculties in the
education market, which may pose a danger to the target clients if price restrictions
change.
• If public university cooperation improves, the overall number of applications to private
universities rises, providing an opportunity for MIU.
10. 9
• If public university cooperation deteriorates, the overall number of applications to
private universities would decline, posing a danger to MIU.
• Neighbor countries: Participation over time in an alliance may cause individual
members to interpret a broader set of shared interests and beliefs among them,
leading them to transform the alliance into a more-integrated political community
so it is very important for any country to have good relationships with neighbour
countries.
• MIU’s acceptance of immigrant students opens up opportunities to the university .
• Having a flexible emigration policy in neighboring countries has resulted in a big
number of people emigrating with their families in search of education and other
facilities.
• MIU's good links with neighboring nations allow it to award students international or dual
certificates while they are still studying in their home countries.
Economic Factor: We're looking at the current economic situation and how it might affect the
commerce and business administration faculty.
Changes in the economic climate will have an impact on our strategy, as every downturn or
upturn will have a good or negative impact on the investment.
Despite the economic crisis, no big modifications will be made to cope with it because the
university is targeting "the upper B class," and any changes in pricing will cause our targeting
to be misunderstood.
Availability of Credit: The university has a large available credit line to cover its expenses such
as taxes, salaries and wages, and other operating costs. Even if expenses rise due to ongoing
R&D projects, the annual ROI covers the difference, allowing the available credit to remain
stable.
Interest Rate: As a faculty, we are not concerned about a lesser return on investment, and we are
not looking to expand, but rather to increase the percentage of new students each year..
• Inflation Rate: As previously stated, we are targeting "the upper B class," and any
changes in pricing will mislead our target, so no strategic pricing decisions will be
made in response to the country's high inflation rate. Furthermore, the private
sector in education is one of the most price-increasing sectors. However, as wages
and salaries rise, as do usability costs, the issue of balancing ROI and expenses
becomes more difficult. To achieve the desired balance, the university is working
with the smallest yet most effective staff and increasing the fees for newcomers by
11. 10
a fixed amount each year. The second decision is to provide additional courses and
programmes to get profits to deal with the expenses during the high inflation rate.
• Social Factor: It was discovered that social and demographic changes have a significant
impact on all sectors, business and nonprofit alike. It also has an impact on the
organisation, regardless of its size. Also, if it was discovered that the population and
tastes of Arab regions had shifted. It was discovered that the majority of the population
is made up of people under the age of 25. As a result, 60% of the population is under the
age of 25. These characteristics also have an impact on how people work, live, produce,
and consume goods. New trends result in significant changes in the types of consumers,
resulting in new needs for services and products, as well as the need for new strategies.
• • In recent years, Egypt has experienced significant societal shifts. People's tastes have
shifted. Previously, education was only supplied to a limited percentage of the
population. When Egyptian culture shifted, however, this concept completely
transformed. Most Egyptians recognize the value of education and recognize the need
for opportunity to attend institutions. This raises the demand for university admissions.
In addition, their choices shifted away from vocational institutions and toward colleges.
This transformed the country's vision by increasing the number of public universities to
meet rising demand. However, they are having difficulty meeting all of these
requirements. They face a high density in public universities, which is seen as a danger
to the quality of education given.
• • As a result, the country's goal has shifted to a focus on expanding both the commercial
and public sectors. Egypt's educational system has undergone a significant
transformation. This is represented in the vision for 2030. Egypt's strategy emphasizes
the expansion of both public and private universities in order to assure educational
quality. The country intends to add six new private universities, bringing the total
number of private institutions in the country from 25 in 2018 to 28 in 2022, with 181
new faculties added by 2122. They are seeking to increase the number of additional
programmes available to graduates by 25. As the government provides greater support,
the private sector will be able to enter this market. This is evident in the rise of the private
sector in recent years. In addition, because they are working on a private one, they work
too on the public universities.
• Egyptians also had a high-faculty culture. As a result, the majority of Egyptians classify
faculties. Engineering and medicine, they believe, are the most important faculties. In
an ahram interview with one of the parents. The parent stated that by increasing the
number of private institutions, she no longer fears that her child would be denied
admission to one of the top faculties because there is space in the private sector.
Although this presents an opportunity for the private sector, it may pose a threat to the
rest of their faculties.
12. 11
• The growing demand for high-quality education. Because of the small number of kids
in the classes, most parents said they would be willing to spend more money to ensure a
higher quality of education. As a result of this transition, private colleges are placing a
greater emphasis on assuring and communicating the quality of their education. Also,
allow the people to reduce the density, which will improve the quality.
• The demographic shift has a significant impact on the industry. In recent years, research
has been conducted on both males and females. In comparison to boys, females have
fewer options to pursue higher education. However, as a result of these research, more
women are pursuing higher education nowadays. As the market for private universities
grows in Egypt, the analysis suggests that private universities have a lot of room to grow.
Technological Factor: This factor is primarily concerned with the existence, availability,
and development of technology. MIU should keep up with the newest technological
advancements as a university. In particular, automation in the sphere of education is
critical, especially in today's dynamic climate. As an example, the Covid-19 is a recent
illustration of the importance of technology and how it is viewed as an opportunity for
businesses that follow and adapt it, as well as a threat for businesses who deny and do
not adapt to technological advances.
Ø MIU is utilizing technological advancements to implement an effective education
system that is appropriate for the Covid-19 epidemic. MIU used an online
education system, including Zoom and Google Hangouts, to allow students to
continue their classes in the midst of the pandemic. In most circumstances, the
first tool, which is the Zoom programme, is deemed a solution. It's an internet tool
that may be used for everything from corporate meetings to casual chat. It also
allows businesses to conduct talks via "HD video, voice calls, and text chats"
from both mobile and desktop devices. As a result, MIU uses it to allow
instructors and students to meet, with the option of sharing slides with students by
using audio to accompany the information and slides supplied, as well as
providing the option of discussion in addition to the text chats option, which
allows students to communicate and be engaged with the lecturer via texting.
Ø According to Forbes, the famous video conferencing programme just had its
highest daily download total in history, with more than 340,000 employees,
lecturers, and teachers using Zoom. As a result, MIU is taking advantage of the
chance and adjusting to the changes by employing this application.
Ø Furthermore, the Google Hangout application is a well-known example of an E-
learning choice. Google Hangouts Meet is a remote alternative working platform
that allows employees to collaborate, especially during the unpredictable home
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working season. It's also a smart option for companies who currently use the G
suite's vast array of services. Gmail, sheets, presentations, and Google Docs are
just a few examples. So. MIU takes advantage of the opportunity and allows
academics to use it in addition to Zoom. It allows the professor to select which
of them to employ with the students, but in the end, both are effective methods
for E-learning adaptation.
Ø This type of technology also allows MIU to direct its resources into utilizing E-
learning technology, which is something MIU has already begun to do at this
moment. MIU begins to direct its resources, which include professors, teaching
assistants, and academic staff, toward serving students using the university's IT
capabilities in adapting to the new educational online system.
Ecological Factor:
Environmental considerations influencing business are linked to actions and processes that are
required to conserve the natural environment while also maintaining or increasing the corporation's
efficiency. Ecology frequently takes the form of so-called corporate environmentalism, which
encompasses all measures aimed at encouraging sustainability, increasing consumer acceptance
of environmentally friendly products and services, and projecting a positive image of a responsible
firm. Several ecological elements influence management decisions, corporate objectives, and
environmental objectives. MIU, like any other organization, must be conscious of environmental
considerations. For example, during any experiment in their labs, they must ensure that no
chemical substance that may harm the environment is used. Furthermore, they must exercise
caution when utilizing any nonrenewable resource. Going green is now highly desirable for every
firm. MIU cares about the environment where they work, therefore they began to green the region
surrounding the campus, hold an environment day for greening, and organize marathons, among
other things. MIU is also concerned with sustainability and sustainable development, which is why
the university hosted its first international conference, "Cornerstones of Sustainable
Development," on the 20th and 21st of April 2019 at the Triumph Hotel. The conference included
a variety of activities and discussions about the cornerstones of sustainable development in Egypt.
Ghada Waly, the Minister of Social Solidarity, spoke at the conference, underlining the Ministry
of Social Solidarity's role in promoting Egypt's social development. The conference drew over 200
people each day, including MIU workers, Egyptian and foreign guests, and keynote speakers.
Throughout the conference, the university underlined its commitment to sustainable development
by decreasing electricity and gas consumption, replacing paperwork with automated solutions, and
regulating water usage in green areas. In this regard, the university's initiatives include efforts to
foster sustainable development both on and off campus, as well as in the surrounding community.
The conference began on the second day with a keynote speech delivered by Dr.Howayda Barakat,
the head of the sustainable development unity in the ministry of planning, monitoring, and
administrative reform, on behalf of Her Excellency Dr.Hala Elsaid, the minister of planning,
monitoring, and administrative reform. Dr. Barakat stressed the need of sustainable development
14. 13
in preparing Egypt for the 2030 vision. Furthermore, Mr. Mohsen Adel, the chairman of the
investment and free zones authority, presented a lecture regarding the role of investment and free
zones authorities in supporting Egypt's vision and 2030 sustainable development plan. Several
scholars presented their papers with descriptive presentations supporting the achievement of
sustainable developmental goals on both days of the conference.
2.1.1 Issue Priority Matrix for PESTEL Analysis:
Threat
Probability of Impact on Corporation
Factor High Medium Low
Probability
of
Occurrence
P1 Legal Factor High
Medium 3
Low
Opportunity
Probability of Impact on Corporation
Factor High Medium Low
Probability
of
Occurrence
P2 Foreign
Students
High
Medium 4
Low
Threat
Probability of Impact on Corporation
Factor High Medium Low
Probability
of
Occurrence
E1 Changes in
the
Economic
Climate
High 2
Medium
Low
15. 14
Opportunity
Probability of Impact on Corporation
Factor High Medium Low
Probability of
Occurrence
S1 High
Education
Awareness
High 1
Medium
Low
Opportunity
Probability of Impact on Corporation
Factor High Medium Low
Probability
of
Occurrence
S2 Government
Vision 2030
High 1
Medium
Low
Opportunity
Probability of Impact on Corporation
Factor High Medium Low
Probability
of
Occurrence
S3 Awareness
of Female
Rights in
Education
High 1
Medium
Low
Opportunity
Probability of Impact on Corporation
Factor High Medium Low
Probability
of
Occurrence
T1 Technological
Advancements
High 1
Medium
Low
16. 15
Opportunity
Probability of Impact on Corporation
Factor High Medium Low
Probability
of
Occurrence
T2 Online
alternatives
High
Medium 1
Low
2.1.1.1 PESTEL Analysis Factors Used “Clarified”:
Analysis Factor Description
Political
Analysis
P1: Legal factor Legal Factors are considered a threat as all the university’s rules are
derived form the ministry of high education’s rules. So, any change
of any of the ministry’s rules and regulations would affect the
university’s system.
Political
Analysis
P2: Foreign students Egypt is seen as a country with a high educational level in the
middle east countries, which MIU sees as an opportunity because
it expands the target market from one to numerous countries along
with the students exchange programs that provide brand awareness
for MIU in the region.
Economic
Analysis
E1: Changes in the Economic
Climate
Any changes in the economy are frequently considered as a threat
since they will have an impact on the targeted customers,
potentially causing residents to move from the top B class to the
lower B class, lowering the number of people in our targeted group.
Socio-Cultural
Analysis
S1: High Education
Awareness
People are becoming more conscious of the value of higher
education and how obtaining a bachelor's degree would improve
their prospects. Furthermore, from a social standpoint, it is more
prestigious to be a higher education graduate than to have a high
school diploma.
Socio-Cultural
Analysis
S2: Government Vision 2030 The government's 2030 strategy is a huge opportunity because it
intends for a larger percentage of people to attend private colleges
in the future, which will boost the university’s consumer base.
Socio-Cultural
Analysis
S3: Female Rights in Education People have recently been more conscious of the need of females
receiving higher education in order to obtain career prospects, as
the market now offers positions that require both women and men,
prompting a huge number of females to pursue higher education.
17. 16
Technological
Analysis
T1: Technological
Advancements
Technological Advancements are considered a strength and an
opportunity as MIU has a strong IT Department specially that
recently the trend went towards online education which needs high
technological advancements.
Technological
Analysis
T2: Online alternatives Online educational resources are rapidly growing in quality. It's
easy to see a future in which large amounts of instructional
resources are available online, possibly for free.
2.2 Industry Analysis: Porter Five Forces Model:
(Industry Analysis) Porter Five Forces Model: This model is primarily intended to be used as a
framework for studying a company's competitive environment. It demonstrates how the number
and power of competitors, possible new market entrants, suppliers, customers, and alternative
products influence a company's profitability. Those five forces, in general, aid in determining the
competitive intensity of an industry and its attractiveness in terms of profitability.
Threat of New Entrants: due to numerous entrance obstacles, the education industry is
regarded as a difficult industry to break into.
Ø The first is the Capital Requirement, which refers to the massive investment
required: A large sum of money is required to establish a university. This cost
includes: the building itself (most universities have multiple buildings, not just
one like MIU), the land to build the university on, the necessary utilities and bills
(electrical and water bills, as well as central air conditioners), salaries for all
employees, classrooms with the necessary equipment (data shows, boards,
Porter Five force model:
Note:
1-Bargaining power of suppliers
2-Threat of substitutes
3-Threat of new entrants
4-Baragaining power of buyers
5-Rivalry among competitors
Industry Competitors
Rivalry among higher
education Institutions
Suppliers
• Faculty
• Administrators
• Part-Time Faculty
• Technology
1
Substitutes
• Online degree universities
• Training & seminar companies
• Distance, open and e-learning
2
Potential Entrants
• New institutions
• International institutions
• Duplicate offering from
existing players
3
Buyers
• Students
• Parents
• Alumni
4
18. 17
computers), and labs with the necessary equipment. Second of them is what is
called Economies of scale is about having a cost advantage related to size, and
in this industry, the cost advantage is when acquiring quantities from any
purchased items, and having a university or any academic place requires
quantities, which in turn gives a cost advantage and allows for cost reduction by
purchasing a large quantity of the items, as the price per unit decreases by
purchasing a large quantity of the items.
Ø The third part is government policies, which refers to the legal documents
required and the actions necessary to establish a private university, which is not
an easy process, as well as the approvals required by the supreme council of
universities. The majority of university proposals must include information such
as the university's name, location, and location of the proposed university, as
well as the university's objectives, which must be stated together with
explanation for the relevance of creating such a university. Guidelines for the
Establishment of Private Universities.pdf
(http://www.scdl.net/downloads/guidelinesfortheestablishmentofprivateuniversi
ties.pdf)
Ø The fourth is what is known as the Switching Cost, which is the cost
incurred when switching from one thing to another, and in the case of entering
the education industry, specifically universities, the decision to switch from one
university to another requires a great deal of effort and time, which is
considered a switching cost but an intangible one; this means that when the
decision to enter this industry is made, this point could be a barrier for entering
the industry as a whole. For example, if a student decides to transfer to another
university while already enrolled in one, this requires a large number of papers
to be transferred and modified in order to be admitted to the new university,
and in some cases, students are required to repeat years in the other university
as a requirement to enter and continue, which is a huge and difficult step for
students already enrolled in their current universities.
Ø The fifth is referred to as product (service) differentiation. It will be a
service differential rather than a product differentiation in this situation as it
pertains to the educational market. This is a significant issue that many people
considering entering the sector will consider because education is a valuable
service that must be distinguished to gain trust. It also necessitates a certain
level of advertising to be distinctive and well-known. As a result, MIU is
committed to advertising, focusing on billboards, particularly on Ismailia Road,
to draw attention to the road, which is considered a busy thoroughfare.
Ø The next point is about exit barriers, which are the barriers that prevent
institutions from exiting an industry or market. In the case of the education
industry, and specifically universities, as previously mentioned, the huge
investments and costs required to open such a university shows that there are
many obstacles to exist and close the university whenever the decision is made
19. 18
because of the assets acquired by the university from buildings, lan, and other
assets. And this is easily demonstrated since, logically speaking, if the entry
barriers are high, the exit barriers will follow suit and be high as well.
Ø However, the MIU is now facing a danger from new entrants from
new institutions in New Capital, which could escalate the existing
competition because the New Capital project is very appealing, increasing
the threat of universities establishing themselves there. (Especially in the
faculty we've chosen to focus on, the business faculty; new colleges may
readily add this faculty because business administration is a common
faculty in universities.)
Threat of substitutes: Substitutes do the same purpose but in a different way.
Some businesses compete fiercely with other manufacturers and businesses that
offer similar items. Before customers switch to the substitutes given, substitute
items establish a ceiling price for the products. The competition pressure is
defined by the strategies, sales, and profits of substitute product providers.
When substitutes are available at lower prices and switching costs are minimal,
the pressure increases. The market share gained by substitutes' products, as well
as their plans to expand their market penetration and capacity, define their
strength.
Ø Researchers discovered that technology is one of the most important alternatives
for higher education. Distance learning is preferred by students. This allows
individuals to complete courses faster than traditional universities, allowing them
to save time. It is also adaptable, meaning that distance learning can be done at
any time, including weekends and evenings. This eliminates the need for them
to attend early classes. But as noted in the portion of social variables. Egyptians
have a tradition of having outstanding institutions and faculties. As a result, in
the Egyptian market, this alternative is a poor substitute for higher education.
• • One of the articles discusses the country's new vision and how they are working to
bridge the gap between public and private institutions by establishing new types of
universities (El-Ahlyaa Universities). These were turned down because they were
considered as a tremendous financial burden on private universities. The country offers
these universities with extensive infrastructure as well as free land. The country is
moving to this form of university to assist students’ study what they want at a reduced
cost, as the cost of private institutions has risen dramatically and is no longer affordable
to all families. These institutions are non-profit, and the fees collected from students are
used to promote, enhance, and ensure the universities' long-term viability. These
universities provide a wide range of majors and specialisations. El - tanseque is also the
same as the private ones. However, these colleges set themselves apart by serving new
areas such as Sinai, which is why the government supports them. They assist Egypt in
providing a high-quality education by providing new facilities equipped with cutting-
20. 19
edge technology. They also ensure that these colleges produce graduates who are more
qualified to enter the workforce. It also aids the country's ability to continue working on
its development programmes. This type of university puts a lot of pressure on private
universities.
The threat here of the substitute is very high. They provide quality, technology,
majors with lowest prices and in new places.
Bargaining power of buyers: When there are many substitutes for the product or service
offered, customers exert more pressure on the university in terms of the quality of the service
and the prices it is offered with. The more the customer is aware of the service and its
competitors and has gathered information about it, the greater his bargaining power.
Due to the high amounts of substitutes, MIU faces a high level of buyer bargaining power
because we have more than one competitor who can be perceived by customers as offering the
same quality of service within the same price range, enhancing the consumers' authority to take
control and try to improve the quality they receive for the lowest possible price.
Bargaining power of suppliers: The Negotiating Power of Suppliers, one of Porter's Five
Forces Industry Analysis Framework's forces, is the inverse of buyer bargaining power and
refers to the pressure that suppliers can exert on organizations by raising prices, diminishing
quality, or restricting product availability. This framework is an important aspect of any
company's strategy. The buyer's profit potential and the competitive climate in an industry are
influenced by the supplier's bargaining power. The buyers are the businesses, while the suppliers
are the businesses' suppliers. Supplier bargaining power is one of the variables that shapes an
industry's competitive landscape and helps to determine its attractiveness.
Suppliers for the academic sector in general and MIU include:
1. Suppliers of needed furniture
2. Suppliers of needed electronic applications
3. Tool suppliers for language and communication labs, dental labs, and engineering collages.
4. Suppliers of the café's food and beverages
5. Books and material suppliers
6. Lecturers who work part-time can be regarded suppliers for the instructional services they
give.
So MIU deals with a lot of suppliers that may influence their pricing strategy,
As the competitive climate encourages academic organizations to adopt high-quality education,
facilities, and services, providers' bargaining strength increases in the academic sector.
However, the supplier's bargaining strength differs depending on the goods it provides. The
negotiation power of a furniture supplier, for example, will never be as significant as the
bargaining power of a dental school or a pharmacy school. The bargaining power of a well-
21. 20
known part-time professor who offers value to the educational service can never be equaled.
The bargaining power of well known, knowledgeable part timers’ professors is considered
extremely high as they supply the most important product for the university which is the
educational service.
Because supplier bargaining power varies from weak to strong depending on a variety of
conditions, there are five primary elements to consider when calculating supplier bargaining
power: The number of providers in relation to the number of buyers, Dependence of a supplier's
sale on a certain customer, switching costs (supplier switching costs), suppliers' availability for
immediate purchase, and suppliers' capacity to forward integrate.
Rivalry (Competition) among existing firms: MIU is up against fierce competition from other
colleges, which could limit our profits if we don't adapt and focus more on competitive actions
like cutting pricing, improving marketing operations, or developing for service improvements
to stay competitive and keep our market position.
There are numerous competing firms in the Business Faculty, but our main competitors are
private universities that offer the same academic content as ours, such as University of Canada
in Egypt , GUC, AAST and FUE as the competition is so fierce because they offer the same
reference books and sometimes hire the same professors, putting more pressure on us to
maintain our market share in comparison to those four universities.
Furthermore, the market is quickly expanding, as academic investing is currently very profitable
and appealing to both Egyptian and international investors. To cope with this market growth,
MIU comes up with new inventive ideas to serve consumers and provide them with the highest
possible quality of service in order to beat the competition.
2.2.1 Issue Priority Matrix for Porter’s Five Forces Model
Threat
Probability of Impact on Corporation
Bargaining Power of
Buyers
High Medium Low
Probability
of
Occurrence
High 1
Medium
Low
22. 21
Opportunity
Probability of Impact on Corporation
Bargaining Power of
Suppliers
High Medium Low
Probability of
Occurrence
High
Medium 1
Low
Threat
Probability of Impact on Corporation
Threat of New Entrants
High Medium Low
Probability of
Occurrence
High 1
Medium
Low
Threat
Probability of Impact on Corporation
Threat of Substitutes
High Medium Low
Probability of
Occurrence
High 1
Medium
Low
Threat
Probability of Impact on Corporation
Competition Among
Existing Firms
High Medium Low
Probability of
Occurrence
High 1
Medium
Low
23. 22
2.3 Strategic Group Map:
To identify direct competitors, we must measure the performance of a business against the other
businesses to identify internal opportunities for improvement and to do this we have:
1. Identify competitive characteristics. Based on customers priorities there are two main
variables affect them which are prices and quality
2. Plot the firms on a two variable (Prices – Quality)
Variables University Name Group
Higher quality–higher price
The American University in Cairo “AUC”
Group 1
The German University in Cairo
Universities of Canada in Egypt-New Capital
New Giza University
Higher Quality – Lower
Price
Arab Academy for Science technology &
Maritime Transport
Group 2
Misr International University
The Future University in Egypt
lower quality–lower price
6th
of October University
Group 3
Sinai University
Heliopolis University
And therefore, AUC, GUC, Universities of Canada in Egypt-New Capital and New Giza
University could be considered as direct competitors for Misr International University
2.4 Strategic Type
MIU is analyzer organization as they share characteristics with prospector and defender
organizations, so they are trying to balance between defender and prospector; thus,
• They face problem of how to find and exploit new markets opportunities
• MIU have problem of maintaining the efficiency of provided services, while remaining
flexible enough to pursue new business activities.
• They are seeking to maintain low costs, but they also emphasize new product and service
• development to remain competitive when the market changes.
24. 23
2.5 Value Discipline Model
Michael Treacy and Fred Wiersema created this model, which suggests that for a firm to be viable,
it must succeed in three important areas: customer intimacy, product leadership, and operational
excellence. MIU is successful at Customer Intimacy because their customer is their students, and
MIU tries as much as they can to address their students' and parents' needs; addressing the students'
need for strong academic content and programs, as well as allowing the students to satisfy their
need for the fun part, which is in the form of student activities at the university; MIU is keen on
providing a variety of activities with a purpose. There are activities such as: gaming days (defined
days) throughout the year, their goal is to provide students with a sense of challenge, as those
gaming days are about football, basketball, and so on; such days are designated sports days,
providing students with a fun aspect in addition to academics.
.
In terms of academics, MIU is committed to meeting the academic needs of its students by
providing high-quality content and programs, as well as an academic bookstore that stocks all of
the academic books that students will need for their courses and is always open, as well as an
academic library that includes books in various fields that students can borrow and return to the
library when they are finished. There are also tables, computers, and chairs to allow students to
study there, and as for parents, they address their needs by allowing them to find good quality
education at the lowest fees compared to other private competitive universities, and this last
sentence reflects on another variable, Product leadership, but in the case of a university providing
education as a service, it will be Service leadership; as previously stated, MIU is a university that
provides education as a service. Taking the final variable, operational excellence, as an example,
(Services)
25. 24
is to what degree the institution employs economies of scale as one of the previously listed industry
success factors, and MIU is well-known for its proficiency in this area, which is reflected in its
fees when compared to its competitors.
It can be concluded that:
Operational Excellence: MIU stands out for having the lowest prices in the business while
also increasing the transaction process' efficiency. They deliver quality while also looking for
methods to cut expenses, as MIU is well-known for its excellence in this area, which is
reflected in its fees when compared to its competitors. MIU is ranked #1 in this category.
Intimacy with customers MIU stands out in having loyal students and deeper relationships
with them because their customer is their students, and MIU does everything they can to
meet the needs of their students and parents, including providing strong academic content
and programs and allowing students to satisfy their student needs. The enjoyable aspect,
which comes in the form of university student activities, is required. MIU is also committed
to meeting the academic needs of its students by providing high-quality content and
programs. And the parents of those kids may be a key factor here, thus MIU caters to their
needs by allowing them to get high-quality education at the lowest possible cost when
compared to other private competitive institutions.
(Service) Leadership: If we consider a university that provides education as a service, it will
be Service leadership. As previously stated, MIU provides a high-quality education at a low
cost when compared to its competitors, but this does not imply that it is number one or the
leader in university education.
2.6 BCG (Boston Consulting Group) Matrix:
The Boston Consulting Group Portfolio Matrix (BCG-Matrix)
The Boston Consulting Group matrix provides the recommendations for the development of
strategic resource allocation and strategy development in the typical multi-business company. It
is argued that relative competitive position and growth are the two fundamental parameters which
must be considered in determining the strategy that an individual business should follow when
viewed within the context of the company's overall ‘business portfolio’. The likely patterns of
business strategy which will lead to overall corporate success are discussed and contrasted with
those which can lead to disaster. The key is that strategies should be made to differ widely from
business unit to business unit, as a function of the growth and relative competitive position of each
business unit and the company's overall resource position particularly with respect to cash.
26. 25
Faculty Pharmacy Currently Pharma D- & Business Administration as a Star: The faculty
of Pharmacy would be classified as a Star. In these scenarios, demand vastly exceeds supply,
there is little or no competition, and there is pricing power. Oftentimes the stars need more
resources to continue to grow and increase market share. Since demand exceeds supply, almost
any appropriate program will be successful. Many institutions have taken advantage of the growth
opportunity in the health care field as demand has increased for degreed students in this area. This
institution also took advantage of the demand and dedicated resources to successfully develop new
programming in health care.
Faculty of Business Administration:
The university is known for its education in business department, Business faculty generates high
profit share for the university as it has high rate of enrollment that increases gradually every year.
Faculty of Mass Communication and Dentistry as Cash Cows:
The university is known for its education in mass communication as well as dentistry department.
These are typically the largest departments in the university, mass communication and dentistry
departments were the most cost-efficient units, generating large amount of cash due to large class
sizes and low overhead. Having a good local reputation and a large market share in the mass
Star Question mark
Cash Cow Dog
Low
Market
Growth
Rate
Low
Relative Market Share
Company Wide strategic Planning
27. 26
communication undergraduate market as well as dentistry field. The departments fit the
description of a cash cow in the matrix.
One tactic to reduce costs, while maintaining quality, was the use of full-time faculty, through
overloads, to meet the high demand. The course offerings were quite successful with class sizes
of 30-40 for mass communication and 50-70 in Dentistry and free cash flow generated. Based on
the position in the matrix, suggested financial and management strategies would include
investment to maintain market share and supply necessary resources to monitor and maintain the
program.
Engineering departments (Electronics & Architecture) & faculty of Al-Alsun as dog because
they fit the criteria of poor performers. They provide little profit. They are not high on demand as
the number of students keeps getting lower each year. Moreover, they have a high rate of
apologizing faculty members over the years.
The Faculty of Computer Science as question mark, the number of students joining this faculty
have increased tremendously especially that the university went slightly flexible in accepting both
science branches from Secondary school. The university also invested in hiring more professors,
providing more classes, and reviewing courses material. It seems that this department is on its way
to become a star as it is expected to gain higher market share.
CONCLUSION
The program enrollment data provide profound evidence that the university could use the high
profit shares provided by the cash cow faculties to invest more in the question mark and the dog
faculties to help raise their market share and their growth rates. With keeping attention in
enhancing the others as well
However, we must be more specific in this section, taking into account one faculty and its
departments as the way to analyze it, because faculties have departments, and taking all of them
into account would be too broad. As a result, we will choose the business faculty as the department
to which the BCG matrix will be applied. (1) Preparing distinguished graduates capable of meeting
the needs of the national and worldwide labor markets is one of MIU's current strategic objectives
for the business faculty. (2) Improving human and physical resources to achieve greatness. (3)
Improving scientific research to enhance faculty members' national and worldwide research
efforts. (4) Strengthening the faculty's engagement in community service. (5) Improving the
educational environment to meet quality criteria.
The departments that lie under the faculty of business are Finance Major, Marketing Major,
Economics Major, Accounting Major, and Management Major. The Finance and Marketing
Majors are both in the Star section because they are in high demand in the market and have high
28. 27
demand in MIU; many students enter those two departments in MIU because of its good reputation
in comparison to other universities, and this means that MIU investments and strategic objectives
should be focused on those two majors.
Then there are the Cash Cows, and among those majors, the Management major is a cash cow
because the market demand for that type of study is not as great as the demand for that department
at MIU, where it is sought after by business faculty students. So MIU works on it by continuing
to create seminars that demonstrate the importance of studying management and the importance
of this field in practical real life and the workplace. In addition, the university is eager to bring in
guest speakers in this field to demonstrate the importance of that field by sharing their successful
personal experiences, and those seminars are held in the second year of business faculty students
because they have the option to do so.
The Accounting Major is then located in the Question Mark section because the Accounting
field is in high demand in the market, but the MIU number of students entering this department is
low in comparison to the market need.
The final section of the BCG matrix, which is the Dog part, considers Economics Major to be a
Dog because the market demand for this major is low, and the number of students pursuing it is
low.
2.7 Industry Matrix:
In this section, we must analyze the MIU competitors to compare MIU's overall performance to
the specified competitors; those competitors are the BUE, AAST, GUC and FUE. The
acronyms: BUE (British University in Egypt), AAST (Arab Academy for Science, Technology,
and Maritime Transport), GUC (German University in Cairo), and FUE (Future University in
Egypt), However, AUC is not a competitor to MIU because it caters to a different level and type
of people, namely Category A. The other specified universities, on the other hand, are almost
addressing the same level as MIU with similar levels of education.
Factor Rate Weight Weighted
Score
Technological advancements 3 0.30 0.90
Social consciousness 4 0.15 0.60
Bargaining power of supplier 3 0.10 0.30
Economies of scale 3 0.20 0.60
Product differentiation 2 0.25 0.50
29. 28
First column in Industry matrix contains the (Industry Success Factors): here in this part the
success factors of the industry will be mentioned. The threat of new entrants is low, and this is an
opportunity for the universities already existing like MIU; especially the Technological factor
with weight 0.30, as this number shows the importance of this factor.
Product (service) differentiation is also another success factor in this industry with weight
0.25
Economies of scale is the third success factor with weight 0.20.
Social consciousness is the fourth success factor with weight 0.15
Bargaining power of supplier is the fifth and least success factor with weight 0.10.
To demonstrate in detail how and why those weights were chosen for the educational industry's
stipulated success elements. The first factor, the Technological factor, received the most weight
because technology is extremely important to have in every educational institution, especially
universities, especially nowadays with the current coronavirus pandemic, which has increased
the importance and criticality of technological existence, especially in this industry; remote
education requires adequate technological interference in the form of E-learning.
The second success factor is Economies of scale, which is ranked third in importance. It
received this weight because this industry is reliant on having a quantity due to the large number
of students and the requirement to always have a similar thing with a quantity. The third
component, Social Consciousness, is the fourth most important and weighted success factor
since it implies that societal attitudes toward private education, particularly private colleges,
have shifted positively. As previously said, Suppliers are classified in this industry from
suppliers of furniture, electronic applications, and food and beverage required on campus, all of
which affect the quality of education, to suppliers of tools required on campus, such as lab
supplies. This factor is a success factor, but it is given a low weight since it is vital, but when
compared to the other success factors, it is the least important.
Finally, the last success factor in this industry is Product (Service) Differentiation; this factor
is considered the second most important success factor in this industry because it is about how
to differentiate your service, which in this industry is education, which should be differentiated
to attract parents and students to choose; for example, advertising could be one thing to
differentiate.
The second column comprises information about the company we chose, "Misr International
University," as well as a rating and a weighted score. The MIU's react to the previously
established success criteria is referred to as the Rate. The first success factor, the technological
element, will have a rate of 3, which symbolizes the MIU's reaction to this factor. The second
success factor, economies of scale, will have a rate of 3. The next component of success, social
consciousness, will have a rate of 4 percent. The fourth component of success is supplier
bargaining power, which has a rate of 3. The last success criterion, product differentiation, will
have a success rate of 2.
30. 29
Ø Taking the first factor into consideration, the Technological factor, the MIU's response to
this factor is high, as the MIU began to automate most of its practices, especially in light of
the coronavirus pandemic; the MIU's use of the E-learning system is very effective and well
applied, indicating their effectiveness in keeping up with technological changes. MIU is also
concentrating on automation to make life easier for most of its employees. The new app is an
HR system for MIU employees that makes HR operations easier. Vacations, permissions, and
attendance were all discussed. Previously, attendance was taken manually on paper by the
teaching assistant or professor, but today it is automated by allowing them to enter the
information electronically through the system. For academic staff, the attendance option
appears in the system in addition to vacations and permissions, but for non-academic staff,
the permissions and vacations options are the only two options available to them, and this
happened by entering the MIU staff mail by simply entering the full name and the position,
and the options related to this position appeared. Permission and vacation are the two most
popular alternatives for all employees, as previously stated. Permissions and vacations were
previously granted on paper, and papers go through a lengthy process to get all the requisite
signatures, which takes time and effort in addition to consuming a lot of paper.
However, by automating them, the process is much easier and faster because those permissions
and vacations are submitted through the system and sent to the heads and people who need to
approve them by simply clicking accept, which is much easier than the manual previous option
and saves the paper consumption that was previously consumed by doing everything on paper.
Because academic staff's attendance was previously taken on paper, it resulted in a significant
amount of paper usage. This technique is extremely valuable to all MIU employees.
Product differentiation factor, will be 2 because MIU does not place a high priority on
advertising itself, as previously stated, the Ismailia Road billboards are one way of doing so,
but the main way MIU builds its reputation and word of mouth is through its effective
education system, student portal, seminars, activities, and providing students with the
opportunity to have a voice. And, as we look at the business faculty, MIU stands out by giving
a variety of benefits to its employees, including qualified teachers and the ability to bring in
foreign experts for additional information. In addition to seminars specific to their major,
students are given the option of pursuing a minor, which is seen as an advantage for most
students involved in business activities. This helps to promote education and knowledge
transmission in a variety of ways.
The MIU's reaction to the third success element, Economies of scale factor, is high since the
university is focusing on bringing quantities from everywhere in the institution to cut costs and
support their cost leadership goal. As a result, the response will be 3.
The MIU's response to the next success factor, Social consciousness factor, will be 4 because
the MIU focuses on many different people's concerns, but at the end of the day, the university
cares about providing a quality education to gain the trust of people who have recently accepted
the idea of private education, and this happened by providing a high quality education with an
31. 30
effective student portal to help their students gain the necessary information in addition to
having
the opportunity to get a minor, particularly in the business faculty. This allows them to have
an extensive amount of information that can justify their admission to a private university.
Additionally, the university allows students to travel to specific universities abroad to study
business for one semester to obtain a certificate.
Finally, the rate for the last success factor, Supplier Bargaining Power factor, will be 3; this
rate is attributable to the university's capacity to deal with suppliers, but it is a neutral rate, not
too high and not too low it is moderate, and this number is given as previously stated that we
chose business faculty to focus on, and in this case the universities abroad that the MIU is
dealing with to make the exchange regarding the business faculty with all of its majors could
be one of the suppliers here, and due to the small number of universities the MIU is dealing
with in this faculty, this rate is described as moderate.
2.7.1 EFAS (External Factor Analysis Summary)
Factor Diagnosis Weight Rating
Weighted
Score
O1: Increase in awareness regarding the
importance of education
Opportunity 0.2 4 0.8
O2: Technological advancements that are usable for
the educational system
Opportunity 0.1 4 0.4
O3: Government support. Opportunity 0.2 4 0.8
O4: Online fulltime education system Opportunity 0.1 3 0.3
O5: Student exchange programs Opportunity 0.1 3 0.3
O6: Masters offered by the university Opportunity 0.01 2 0.02
Sub Total 0.71 2.62
T1: Large number of universities in Egypt Threat 0.05 4 0.2
T2: The changes in the economic climate. Threat 0.02 3 0.06
T3: The existence of the substitutes in form of al
ahlia universities.
Threat 0.01 4 0.04
T4: The threat of the entrants of the new capital
universities.
Threat 0.1 3 0.3
T5: The existence of inflation and rapid increase in
costs and expenditures compared with the tuition’s
income.
Threat 0.01 2 0.02
T6: The existence of limiting policies of government. Threat 0.1 3 0.3
Sub Total 0.29 0.92
Total 1 3.54
32. 31
3. Internal Environment Analysis
3.1 Value Chain Analysis:
Both support and primary operations are included in a value chain analysis. Management &
Administrative Services, Human Resource Management, Technology Development, and
Procurement are support activities, whereas Service, Marketing and Sales, Outbound Logistics,
Operations, and Inbound Logistics are primary activities.
- Inbound logistics:
The cost associated with the MIU university's obtained inputs is about the equipment that the
university purchases from the necessities of the classes, such as desks, computers, boards, data
shows, computers, and labs, and for the campus itself, it is about the equipment in socializing
areas, such as the waiting areas for both students and staff, in addition to the equipment brought
to the staff with the computers in each classroom. As a result, in the case of choosing a
university, the purchasing department could be the department that is dedicated to the
purchasing of any equipment in the university, particularly since the university's primary
strategy is the Cost leadership strategy, which means that the purchasing process should be
specified for suppliers who provide the university with cost-effective supplies, but as previously
stated, the university does not only follow the cost leadership strategy, This means that they
want to cut costs in order to compete with other comparable private universities, but they also
want to provide effective education. As a result, they're focusing on gaining quality accreditation
for all the university's faculties and establishing a respectable reputation for the university's
quality in comparison to other private competitor universities, which means that they're
competing on price. Because most of the university's supplies should be purchased in bulk,
economies of scale provide the university with a distinct advantage, allowing the university to
purchase high-quality goods at a reasonable cost, in addition to university supplies that are
competitively priced.
- Operations:
As the consultation element of a service company's activities, MIU is one of the service
institutions that provides education as a service to its students; as a result, the consultant part
here may be the university's advising center. The advising center at MIU is responsible for
creating students' schedules and consulting them on the courses they should take and the
appropriate consequences of those courses.
Furthermore, the majors’ orientation events teach or inform students about the advantages and
market potential of each major.
33. 32
Durability:
As we choose a university to analyze, the operations at MIU are about Durability; in this part, it
means focusing on the performance of the lectures provided to the students and seeing if it is
the same or if there are any changes in the performance; for example, whether the university
gives their academic staff (TA's for example) an overloaded schedule, which means giving four
lectures one after the other with no gaps or if there are gaps between the lectures. This is an area
where MIU has a weakness, as the institution overburdens the schedules of its TAs because of
the shortage of staff.
Marketing & Sales:
The MIU marketing activities are a mix of commercials, as indicated in previous portions, and
ads in the form of billboards on Ismailia Road. The mix is those billboard commercials and the
university's CSR, which both play major roles in the university's marketing, and the MIU CSR
focuses on serving the community. MIU, for example, is dedicated to assisting the poor and
ignorant areas by providing them with the necessary facilities and devoting a certain number of
students to educate a certain number of kids in disadvantaged areas on a regular basis.
Furthermore, every year on the university's campus, orphan children are brought to the
university from orphanages, and each year they choose a different orphanage, and on this day,
they play with the orphans and bring them toys, and this child festival is organized by some of
the university's students who have been chosen by the university to organize these events.
Moreover, because the institution is concerned about its students' health, it is holding a cancer
awareness campaign. This campaign is designed to create public awareness about cancer and to
collect donations from students for individuals who are afflicted with the disease. For these
reasons, the university's CSR is considered one of their marketing strategies, with most of their
efforts focused on charity; the university has a sense of commitment to carry out their business
in an ethical manner by implementing their CSR, which means that they are managing their
business processes while considering their social impact and human rights. Seminar on
"Becoming an entrepreneur" The third seminar, conducted by the Department of Management
and Marketing, Faculty of Business administration and International Trade, was titled
"Community Service.". Eng. Mohamed Farag, Founder and CEO of Egyptian Swedish Air
Conditioning Co., led the workshop on Monday, October 22nd, 2018. Eng. Farag, a successful
entrepreneur, articulated what it means to be an entrepreneur and the many sorts of
entrepreneurship. He provided real-life examples of successful entrepreneurs from throughout
the world, reiterating the necessity of entrepreneurship for Egypt's economic progress. In
addition to another seminar titled "Nothing is Impossible," which was held on Monday,
November 12th, 2018, by the Department of Management & Marketing, Faculty of Business
Administration & Foreign Trade, the discussion was enriched by highlighting the importance of
a sustainable business as well as the various challenges and opportunities to become an
entrepreneur. Dr Hayat Khattab, President of the Egyptian Paralympic Committee, President of
Para volley Africa, Member of the World Para volley Organization, and Member of the
34. 33
CPISRA, delivered the session. The tagline of our two hosted World Champions in Para Power
Lifting, Ms. Fatma Omar, and Mr. Hany Mohsen, is "What Is Impossible Can Make Things
Possible." The World Champions served as role models for our kids, demonstrating how they
overcame adversity and other obstacles to win gold medals and continue their success. The
champions wrapped up the seminar by emphasizing the necessity of having a clear direction and
goals in life, as well as the worth of perseverance and passion in overcoming obstacles.
Furthermore, MIU's reputation is based on its long history of providing high-quality education,
dating back to 1996, when it was founded with the goal of creating an academic institution that
would directly and honestly address the practical challenges of the twenty-first century.
After Sale Service:
This section is about the services provided after students leave the university and complete their
education years there, and it is related to the university's Alumni office; this office in MIU keeps
university graduates in touch with the university, their colleagues, and friends, as well as
providing them with a variety of facilities and special career services. MIU undergraduates can
also take advantage of these services. They hold employment fairs and provide graduates with
opportunities to attend and obtain good positions. This occurs because the alumni office sends
out emails to graduates each year with the dates of each employment fair, ensuring that they can
obtain good jobs.
Management Activities:
This section encompasses both the financial and information technology aspects, and it is
represented in both the finance and IT (Information Technology) divisions. However, the
financial ratios relating to MIU will be discussed and studied first. To begin, it is important to
note that there are four types of ratios:
(1) liquidity ratios.
(2) profitability ratios.
(3) activity ratios.
(4) leverage ratios.
Each of these categories contains a set of ratios that must be established and studied to assess
MIU's financial performance. The current ratio, quick (acid test) ratio, inventory to net working
capital, and lastly the cash ratio makes up the first category of liquidity ratios.
The profitability ratios are divided into five categories: net profit margin, gross profit margin,
return on investment (ROI), return on equity (ROE), and earnings per share (EPS). Inventory
turnover, Days of inventory, Net working capital turnover, Asset turnover, Fixed asset turnover,
Average collection period, Account receivable turnover, Accounts payable period, and lastly
Days of cash make up the third group of activity ratios. Debt-to-asset ratio, Debt-to-equity ratio,
Long-term debt to capital structure times interest earned, Coverage of fixed costs, and lastly
Current liabilities to equity make up the fourth category of leverage ratios. There are also
35. 34
additional ratios to consider, such as the price-earnings ratio, the dividend payout ratio, and the
dividend yield on common stock.
Ø As MIU is the institution chosen to be analyzed, those ratios will be analyzed in MIU,
considering the applicable ratios; those ratios will be made for three consecutive recent years to
be new and not outdated data: years: 2019, 2020, and 2021. As for year 2022 will not be
considered because it is not yet finished, so the analysis will be invalid.
MIU's IT department is very effective, since its goal is to increase the quality and cost
effectiveness of higher education at MIU by utilizing information technology, as well as to seek
to make IT a separate area. MIU's IT department has the important task of providing strategic
planning and technical direction through the integration of many new and current information
technologies. In addition, the IT department works to improve the institution's communication
process by providing an E-mail service to all students, alumni, and staff members, as well as the
students portal, MIU's own e-learning system, which has proven to be very effective,
particularly during the current pandemic. It aids MIU students in keeping track of their
schedules, transcripts, attendance warnings, online courses, lectures, and assignments. MIU
welcomes positive and negative feedback because it's the university's only way of ensuring that
they're providing you with a quality service. The university recognizes, however, that some
issues cannot be resolved informally and quickly, and that a more formal, written method is
required. The SSO (Student Support Office) provides the following services to students to
accomplish the ultimate goal of student satisfaction: Information on any questions or concerns
raised by students, as well as student complaints and petitions. There is also an E-library, which
provides students with materials that are provided online.
Human Resources Management:
There is a Human Resource Department at MIU, and this department is primarily concerned
with the issues of the employees. MIU has recently focused on automation to make life easier
for most of its employees. The new app is an HR system for MIU employees that makes HR
operations easier. Vacations, permissions, and attendance were all discussed. Previously,
attendance was taken manually on paper by the teaching assistant or professor, but today it is
automated by allowing them to enter the information electronically through the system. For
academic staff, the attendance option appears in the system in addition to vacations and
permissions, but for non-academic staff, the permissions and vacations options are the only two
options available to them. Permission and vacation are the two most popular alternatives for all
employees, as previously stated. Permissions and vacations were formerly done on paper, and
those papers went through a lengthy process of being signed by all the requisite signatures,
which took time and effort in addition to consuming a lot of paper. However, by automating
them, the process is much easier and faster because those permissions and vacations are
submitted through the system and sent to the heads and people who need to approve them by
simply clicking accept, which is much easier than the manual previous option and saves the
36. 35
paper consumption that was previously consumed by doing everything on paper. This
technique is extremely valuable to all MIU employees. In addition, the HR department
gives MIU workers with ongoing orientations to inform them of their rights and provide
them with cautions about policies that they should avoid; and the HR department also
provides academic staff with various trainings on how to conduct sessions.
Research & Development:
MIU has a research guidance center, which was founded in the Fall 2003 semester. It was
established to initiate research and academic integrity norms among students and to help them
as they conduct research. It serves as a link between professors, students, and research materials,
as well as an assurance that the research done is original and not duplicated, plagiarized, or
produced by someone other than the student. As a result, center assistants guide and support
students in writing research papers in the proper format, teach them how to use accessible
research sources correctly, and verify that they do not plagiarize. This is accomplished through
a series of one-on-one meetings with research center assistants and students. A different part of
the research process is reviewed at each meeting, and the student's progress is tracked and
assessed. MIU students benefit from this great system since it provides them with a true
opportunity to build research skills that will be useful throughout their academic and
professional careers.
Procurement:
This section is usually about the purchasing department, but since we're using MIU as our study's
institution, it'll be about the bookstore's availability, which gives students with the books they
need, and the books in this shop are always available. The university's library is effective
because it has a clear vision and mission: "MIU Library aims to be one of the leading
academic libraries by providing a large collection of printed and electronic resources to
enrich the learning and research experience within the university for today and tomorrow,
implementing innovative technologies and services to deliver information and electronic
resources wherever and whenever it is convenient to its users. To improve students' learning
experiences, the library intends to regularly expand its collection by combining printed and
electronic resources." Furthermore, the availability of security personnel, who are stationed on
each floor of each building and are responsible for reporting any problems in the classrooms or
rooms; For example, if there is a problem with the data shows, the professor or teaching assistant
who gives the lecture or sections reports the problem in the class, which could be a problem
with the computer or the data shows in the class, then security comes and reports the problem
to IT, who then comes and fixes it, but the problem is that this process takes a long time.
37. 36
3.1.1 Financial Ratios
As for the first category “Liquidity ratios”
1) Current Ratio: Current Assets
= Decimal
Current Liabilities
Current Ratio 2019 2020 2021
1.30 1.35 1.45
Comment: We can see that the current ratio rises each year as a result of the elimination of
numerous liabilities, such as outsourcing transportation tools to reduce costs and improve
liquidity.
2) Quick (acid test) ratio: Current assets – Inventory
=
Current liabilities
Quick (acid test)
ratio
2019 2020 2021
1.25 1.30 1.40
Comment: After completing a time series quick ratio analysis, we discovered that the liquidity
situation has improved as current assets excluding inventory have increased while liabilities
have been cut off during the analysis period.
3) Inventory to net working capital: Inventory
=
Current assets –Current liabilities
Inventory to net
working capital
2019 2020 2021
7.8% 7.6% 5.6%
Comment: We can see that the ratio of inventory to net working capital is dropping over time,
which is a good sign. The high rate of staff employment, which used a huge amount of
inventory, as well as the progressive increase in working capital, caused a dip in 2021.
38. 37
4)Cash ratio: Cash + Cash equivalents
=
Current liabilities
Cash ratio 2019 2020 2021
1.75 1.93 2
Comment: Following the three-year history, we can see that MIU's cash ratio has increased
over time as it has enhanced its ability to pay down any of its debts by raising cash and cash
equivalents while reducing liabilities.
As for the “Profitability ratios”:
1) Net profit Margin: Net profit after taxes
= %
Net Sales
Net profit Margin
ratio
2019 2020 2021
24% 28.36% 35.76%
Comment: After conducting a three-year time series ratio analysis, we can see how
much after-tax profit is generated per pound of sales, which is a good indicator of
MIU's financial profitability as the number of students, tuition fees, best resource
utilization, and cost cutting all contribute to increased profitability.
2) Gross profit Margin: Sales – Cost of goods sold
= %
Net sales
Gross profit Margin
ratio
2019 2020 2021
24.8% 28.28% 37.38%
Comment: We can see the entire margin available for MIU to pay other expenses
beyond cost of goods sold while still earning a profit after doing a three-year time
series ratio study.
39. 38
3) Return on investment (ROI): Net profit after taxes
= %
Total assets
ROI 2019 2020 2021
82% 91% 99%
Comment: After conducting a three-year time series ratio analysis, we can see an
increase in the percentage of ROI, indicating that the return on all assets under MIU's
control is increasing. This indicates that MIU is effectively utilizing their assets,
allowing them to generate more profits per invested pound.
4) Return on Equity (ROE): Net profit after taxes
= %
Shareholder’s equity
ROE 2019 2020 2021
60% 65% 80%
Comment: This signifies that the rate of return on each shareholder's entire investment
in the company has produced profits and has increased over time.
As for the “Activity ratios”:
1) Inventory turnover: Net sales
= Decimal
Inventory
Inventory
turnover
2019 2020 2021
7.1 7.3 7.9
Comment: In general, it counts the number of times average finished goods inventory was turned
over or consumed over the time period under consideration.
Given that MIU is a non-profit educational organization that provides services, the inventory
supplied is limited in number and is intended for consumption rather than sale, which explains
the high percentages.
40. 39
2) Net working capital turnover: Net sales
Net working capital
Net working
capital turnover
2019 2020 2021
3.9 4.2 4.7
Comment: In general, it measures how effectively net working capital is used to generate
sales. As current assets have increased while current liabilities have decreased, net working
capital has increased in the last period. This increase has been accompanied by a greater
increase in net sales generated, resulting in a continued increase in the networking capital in
turnover. Net working capital generates between 3.2 and 3.9 pounds of net sales per pound.
3) Asset turnover: Sales
= Decimal
Total assets
Asset turnover 2019 2020 2021
3.6 3.9 4.3
Comment: In general, it assesses how well all of the company's assets are being used; it
calculates how many sales are created per pound of assets. It is clear that total sales generated
rose with time in relation to total assets, demonstrating the influence of asset utilisation.
41. 40
3.2 VRIO Analysis:
Activities VRIO
Value Rareness Imitable Organization
Inbound Logistics
The quality of the supply’s efficiency YES YES YES YES
Operations
Majors’ orientation sessions. YES YES YES YES
Advising Center Consultancy. YES YES YES YES
Durability
Academic Staff Overloaded Schedules. NO YES NO NO
Marketing and Sales
Billboards Ads on the Roads. NO NO NO NO
Assist poor and ignorant areas YES YES YES YES
Child festival day (annually) YES NO YES YES
Cancer awareness campaigns YES YES YES YES
After sale service
Alumni office provide graduates with a lot of
facilities and special career services
YES YES YES YES
Annual employment fairs for graduates (jobs
and training opportunities)
YES YES YES YES
IT Department
Effective communication tools YES NO YES YES
MIU e-learning system. YES YES YES YES
The Existence of E-library for Students YES YES YES YES
The Existence of the Student portal. YES YES YES YES
HR Management
The automated HR system for the academic
staff.
YES NO YES YES
The Orientations for the newly hired staff
(policies, rights, warnings).
NO NO YES YES
The different trainings for the academic staff YES YES YES YES
Research & Development
The existence of the Research Guidance
Center.
YES YES YES YES
The accreditation gained by most of the
faculties
NO NO NO NO
Setting the principles of research and
academic integrity among students
YES YES YES YES
42. 41
Procurement
The constant availability of the books in the
bookstore.
YES YES YES YES
Long process of fixing the equipment brought
to the university.
YES YES YES YES
Profitability Ratios
Non-Profit Margin YES YES YES YES
Gross Profit Margin (ROI) YES YES YES YES
Notes: Regarding the VRIO analysis, taking into account MIU's internal activities; taking into
account all of the criteria addressed in the preceding section but in a simpler summarized table.
The accreditation discussed in the research and development section is a point of weakness at
the university, hence we gave this section four NO. And for the financial area, we give four YES
because all the university's ratios suggest that it is in a solid financial situation, particularly the
ROI and Net profit margin, which are the two ratios we choose to focus on in the rest of the
analysis.
43. 42
3.3 IFAS (Internal Factor Analysis Summary):
Factor Diagnosis Weight Rating
Weighted
Score
S1: Access of faculty members and staff to
science resources and internet
Strengths 0.1 3 0.3
S2: The Service of the Alumni office for both
graduates and undergraduates.
Strengths 0.09 4 0.36
S3: The good reputation coming from strong
CSR as a community service.
Strengths 0.05 3 0.15
S4: The constant availability of the books in the
bookstore
Strengths 0.03 4 0.12
S5: Financial position of the university Strengths 0.1 3 0.3
S6: Proactive Partnerships with other
international universities, agencies and
corporations giving the students a chance to
semester abroad to one of these universities and
allowing students exchange
Strengths 0.03 3 0.09
S7: MIU is considered one of the most affordable
universities in comparison to other private
universities as well as the quality of education
attained.
Strengths 0.02 4 0.08
S8: Office Hours: another factor that has been
consistently addressed as a point of strength in
all surveys is the fact that our faculty members
are ethically and institutionally obliged to
provide extra hours to respond to the individual
needs and inquiries of students.
Strengths 0.03 3 0.09
S9: Strengthening bonds with the community
and the market Maintaining effective links with
the local business community, for example yearly
employment fair, etc.
Strengths 0.05 4 0.2
44. 43
S10: The university has an effective role in
community service. It hosts many charitable
events.
Strengths 0.05 3 0.15
Sub Total 0.55 1.84
W1: High turnover in administrative
departments.
Weaknesses 0.06 2 0.12
W2: Number of lectures among faculty members Weaknesses 0.05 2 0.1
W3: Limited faculties/majors Weaknesses 0.1 2 0.2
W4: Lack of concentration in participating in
international conferences.
Weaknesses 0.03 2 0.06
W5: Few full-time assistant professor scientific
board members in some majors.
Weaknesses 0.03 2 0.06
W6: Operational structure/bureaucracy Weaknesses 0.1 1 0.1
W7: The fact that the university hasn’t
considered opening new branches in different
regions to be more accessible for people in
different areas
Weaknesses 0.03 1 0.03
W8: The low number of research paper
publication in the faculty of business.
Weaknesses 0.05 1 0.05
Sub Total 0.45 0.74
Total 1 2.84
45. 44
4. Strategic Factor Analysis
4.1 SFAS (Strategic Factor Analysis Summary)
Factor Diagnosis Weight Rating
Weighted
Score
S2: The Alumni Office provides services to both
graduates and undergraduates. Strengths 0.05 4 0.2
S3: Strong CSR as a community service has earned the
company an excellent reputation Strengths 0.1 3 0.3
S:5 Student Financial Assistance Strengths 0.1 3 0.3
Sub Total 0.25 0.8
W1: High turnover in administrative departments. Weaknesses 0.07 2 0.14
W:2 Number of lecturers among faculty members Weaknesses 0.04 2 0.08
W:3 Limited faculties/majors Weaknesses 0.1 2 0.2
Sub Total 0.21 0.42
O2: Technological advancements that are usable for
the educational system Opportunity 0.1 4 0.4
O3: Government support. Opportunity 0.2 4 0.8
O5: Student exchange programs Opportunity 0.1 3 0.3
Sub Total 0.4 1.5
T1: Large number of universities in Egypt Threat 0.03 4 0.12
T4: The threat of the entrants of the new capital
universities. Threat 0.1 3 0.3
T5: The existence of inflation and rapid increase in
costs and expenditures compared with the tuition’s
income. Threat 0.01 2 0.02
Sub Total 0.14 0.44
Total 1 3.16
Note: As the total number is 3.16 and this number is higher than 3; for that reason, it means
that MIU is doing well.
46. 45
4.2 SPACE Matrix (Strategic Position & Action Evaluation):
Financial Position (FP) +1(Worst), +7 (Best) Stability Position (SP) -1(Best), -7 (Worst)
• Return on Investment +5
• Liquidity +3
• Work capital +6
• Cash Flow +5
• Earnings per Share +5
Total +22/5
=+4.8
• Technological changes -4
• Demand Variability -6
• Price Range of Competing
products
-2
• Competitive pressure -4
Total -16/4
=-4.0
Competitive Position (CP) -1(Best), -7 (Worst) Industry Position (IP) +1(Worst), +7 (Best)
• Market share -5
• Product quality -1
• Customer loyalty -3
• Capacity Utilization -3
• Technological Know-how -4
• Control over Suppliers &
distribution
-3
Total -19/6
=-3.17
• Growth Potential +3
• Profit potential +4
• Financial stability +4
• Productivity, capacity
utilization
+6
Total +17/4
=+4.25
Internal Strategic Position External Strategic Position
48. 47
4.3 TWOS Matrix:
Internal Factors
External Factors
Strengths (S)
S1: Access of faculty members and staff to science
resources and internet
S2: The Service of the Alumni office for both graduates
and undergraduates.
S3: The good reputation coming from strong CSR as a
community service.
S4: The constant availability of the books in the
bookstore.
S5: Financial position of the university.
S6: Proactive Partnerships with other international
universities, agencies and corporations giving the students
a chance to semester abroad to one of these universities
and allowing students exchange.
S7: MIU is considered one of the most affordable
universities in comparison to other private universities as
well as the quality of education attained.
S8: Office Hours: another factor that has been
consistently addressed as a point of strength in all surveys
is the fact that our faculty members are ethically and
institutionally obliged to provide extra hours to respond
to the individual needs and inquiries of students.
S9: Strengthening bonds with the community and the
market Maintaining effective links with the local business
community, for example yearly employment fair, etc.
S10: The university has an effective role in community
service. It hosts many charitable events.
Weaknesses (W)
W1: High turnover in administrative departments.
W2: Number of lectures among faculty members
W3: Limited faculties/majors
W4: Lack of concentration in participating in
international conferences.
W5: Few full-time assistant professor scientific
board members in some majors.
W6: Operational structure/bureaucracy
W7: The fact that the university hasn’t considered
opening new branches in different regions to be
more accessible for people in different areas
W8: The low number of research paper publication
in the faculty of business.
49. 48
Opportunity
O1: Increase in awareness regarding the
importance of education
O2: Technological advancements that are
usable for the educational system
O3: Government support.
O4: Online fulltime education system
O5: Student exchange programs
O6: Masters offered by the university
SO Strategy
S1, O2
MIU exquisite IT services are used and will be used to
facilitate the access to scientific content and thus the
quality of education will be enhanced.
S2, O1
ALUMNI department’s services include undergrads and
grads to increase the awareness of the importance of
education and as well as awareness to what the labor
market needs
S6, O5
Co-operation with international universities led to
offering MIU students the opportunities to study abroad
and allow also for student exchange programs
WO Strategy
W3, O6
MIU overcomes the disadvantage of having a limited
number of faculties and majors by offering MA
programmes.
W8, O1
Using increased educational awareness to urge
MIUians staff members to publish more research
papers to achieve accreditation
50. 49
Threat
T1: Large number of universities in
Egypt
T2: The changes in the economic climate.
T3: The existence of the substitutes in
form of al ahlia universities.
T4: The threat of the entrants of the new
capital universities.
T5: The existence of inflation and rapid
increase in costs and expenditures
compared with the tuition’s income.
T6: The existence of limiting policies of
government.
ST Strategy
S7, T4
As MIU is eliminating the threat of the fact that there are
many competitive universities in the New Capital by
being one of the most affordable universities in
comparison to other private universities and thus
increases the number of students enrolling in it.
S5, T2
By taking full advantage of our strong financial position
MIU is able to survive any changes in the economic
situation
WT Strateg
W1, T2
MIU should take into consideration any changes in
the economics status quo with regards to salaries
and wages to avoid high turnover of the academic/
administrative staff members.
W3, T4
MIU should consider adding new majors to its
faculties as there are many competitive universities
especially in the New capital to attract new
customers on the basis that it already has a good
reputation thus it is trustable than the new
universities
W7, T5
Inflation and the increase in cost and expenditures
is a huge risk that MIU should avoid by considering
opening new branches in different areas accordingly
it will make it more accessible
51. Page | 50
4.4 Grand Strategies:
Grand strategies come in a variety of shapes and sizes. One of them is expansion tactics, which
include concentration, integration, diversification, cooperation, and internationalization, among
others.
Product creation and market development are examples of expansion through concentration.
MIU has decided to pursue product development. They will develop new items by launching an
MBA program for business students in the same market and location. "Based on BCG Matrix,"
with a focus on Finance and Marketing Departments. Based on MIU's screening of its internal
and external markets, they have discovered that there are still unmet market gaps that need to be
filled. They also discovered that postgraduate degrees in many majors, as well as MBA, are in
high demand. They also understand how they are viewed in society as one of Egypt's most
prestigious colleges. MIU's goal is to provide a unique educational experience that incorporates
both the Egyptian and Western systems. This allows the university to expand in a variety of
ways, all of which fall under the area of product development. MIU plans to provide new fields
of specialization in several faculties, according on the overall study. As a result of their success
in dentistry, they have a sizable market share. To complete their accomplishment in this sector,
they begin to plan to open a medical faculty. From our analysis to the internal and external
analyses, we've got you covered. It was discovered that the social component aids MIU's
expansion as the demand for higher education grows. In addition, there has been a cultural shift
in recent years. It's also worth noting that the top colleges' cultures are in sync with these
expansions. Furthermore, because the supplier's bargaining strength is modest, they are able to
maintain their economies of scale strategy. MIU also has a great financial situation, according to
the report. They also have a dominant market position and a long track record of success,
allowing them to readily grow. They also have available lands, allowing them to continue their
expansion.
We decided to go with the Aggressive Strategy after identifying key strategic aspects using the
IFAS, EFAS, SFAS, and SPACE Matrix and combining our strategic alternatives using the TWOS
Matrix. Along with the "Expansion strategic alternative," two main strategies will be pursued:
Product Development and Market Penetration, as it was decided to invest in the new capital by
expanding into a new market and opening a new MIU branch in the new capital with the assistance
of Government Vision 2030, as mentioned in the Socio-Cultural Factor.
