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Oakland University
Executive Education Opportunities in China

                  Discussion




               MAKE IT HAPPEN
                                             BAKER
                 Rochester, MI               STRATEGY GROUP

                October 1, 2001
Executive Education Opportunities in China
Discussion Paper
                                                                                                              Oakland University




           Section                                                                                       Page
           Executive Summary                                                                                   2

      I. Executive Education in China:                                                                      10
           A look at the executive education market in China

     II. 5 Models of Partnering:                                                                            21
           Sample models US organizations are using for executive education in China

    III. OU EMBA-HCM Program                                                                                32
           Opportunities for OU to offer EMBA-HCM in China

    IV. Next Steps                                                                                          44




                                                                                                               BAKER
                                                                                                               STRATEGY GROUP

                                                                                                                          Page 1
October 1, 2001
Executive Education Opportunities in China
Discussion Paper
                                                                                                               Oakland University

Executive Summary


          Although there are concerns for investing in China at this time, the opportunities outweigh the
          drawbacks.
    1


           MBA programs have grown quickly in China over the last 4 years to meet the changing needs of
    2
           managers in a variety of enterprises

           While there is heavy competition for corporate and business training, universities are uniquely
    3
           positioned to offer executive MBA degrees

          Many foreign universities are offering executive MBA programs in China using at least five models for
    4
          partnering with Chinese schools

          OU currently offers 5 graduate degrees from the School of Business Administration, 1 of which is an
          executive MBA in health management
    5

           Oakland University has 5 key strategic resources which enable OU to successfully offer the EMBA-
    6
           HCM program in China

           Depending on existing relationships, OU may want to start with a mutual partnership, and later
    7
           develop into a Consortium Partnership
                                                                                                                BAKER
                                                                                                                STRATEGY GROUP

                                                                                                                           Page 2
October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     Executive Summary                                                                                    Oakland University

     Pros and Cons of Investing in China
     Although there are concerns for investing in China at this time, the opportunities outweigh
 1
     the drawbacks


                                                 Pros                                  Cons
                               • WTO Accession                      • Current terrorist Crisis
        International
                               • 2008 Summer Olympics               • Global Recession

                               • Strong domestic economy            • Underdeveloped stock market
           Economic
                               • High levels of FDI                 • Unperforming loans at Chinese
                               • SEZ’s offer economic incentives      banks
                               • Office government support for      • Uncertain leadership succession
            Political
                                 markets and private sector         • CCP divided on foreign enterprises
                               • Emphasis on management             • Uncertainty from CCP policy
                                 development                          meddling
                               • Growing legal system               • Corruption
             Other
                               • General Chinese concern for        • Poor Infrastructure
                                 economic and political stability   • Unemployment




                                                                                                           BAKER
Source: Baker Strategy Group                                                                               STRATEGY GROUP

                                                                                                                      Page 3
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     Executive Summary                                                                                                              Oakland University

      MBA Program Growth in China
      MBA programs have grown quickly in China over the last 4 years to meet the changing
 2
      needs of managers in a variety of enterprises



     Cumulative MBA Holders in China                        Enrollment in Chinese MBA Schools                Participating Chinese Schools
                                                               40,000
       30,000                                                                                               80                                 75
                                                                                                   35,000
                                                               35,000
                                           25,000                                                           70
       25,000
                                                               30,000                                       60                       56
       20,000                                                                             23,500
                                                               25,000                                       50
                                                               20,000
       15,000                                                                                               40
                                                               15,000                                                       26
                                                                                                            30
       10,000
                                                               10,000                                       20
                                  5,000                                           5,000
        5,000                                                                                                      9
                                                                5,000                                       10
                         1,000                                            86
                  0
                                                                    0
            0                                                                                               0
                                                                         1991     1997    1999     2001
                 1991     1997     1999    2001                                                                  1991      1997     1999      2001




                                                                                                                                     BAKER
Source: Asia One, US Consulate in Hong Kong, US Army Research office – Far East                                                      STRATEGY GROUP

                                                                                                                                                Page 4
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     Executive Summary                                                                                                      Oakland University

     Business Training Services
     While there is heavy competition for corporate and business training, universities are
 3
     uniquely positioned to offer executive MBA degrees


                                                  Basic                General                Management                   MBA
                                                 English                Skills                  Training                 Programs

         Nature of coursework            Business English        Business and             Hand-on courses and      Degree program
                                         reading, writing, and   administrative skills    workshops to develop     providing a complete
                                         speaking                                         manager                  business orientation
                                                                                          effectiveness
                                         • Business Writing      • Computers
         Examples                                                                         • Managing Teams         Emphasis in:
                                         • Market Terms          • Basic Finance          • Business Planning      • Finance
                                         • Specific Industry     • General Marketing      • Negotiation            • Marketing
                                           Terminology           • Time Management        • Performance            • Accounting
                                                                 • Cultural Sensitivity     Reviews                • Etc.
         Who is equipped to offer this

            • Universities

            • Corporate Universities

            • Training Companies

            • Individual Training



                                                                                                                             BAKER
Source: Baker Strategy Group                                                                                                 STRATEGY GROUP

                                                                                                                                        Page 5
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     Executive Summary                                                                                                                            Oakland University

      Five Partnering Models
      Many foreign universities are offering executive MBA programs in China using at least five
 4
      models for partnering with Chinese schools


                                           1                        2                   3                           4                             5


                                                         Mutual Partnership                          Consortium Partnership          Consortium Partners
                                 Individual Branch                                 Joint Entity
          Model




                                Global Management                                                                                   Executive MBA in
          Program                                        International MBA      International MBA        Executive MBA
                                Program                                                                                             Leadership
                              • Thunderbird            • The University of    • Shanghai Jiao Tong   • Tsinghua Univ.              • Beijing Electric Power
          Partners              Graduate School of       British Columbia       University           • Fordham University            College
                                International          • Shanghai Jiao Tong   • The European         • Santa Clara Univ.           • Shanghai Metallurgy
                                Management               University             Foundation for       • Renessler                     Chengdu Hydro Elect.
                                                       • Team Canada Trade      Management Dev.        Polytechnic Univ.             Power College
                                                         Mission              • MOFTEC               • Loyola University           • Plato College
                                                                              • European             • 22 other US                 • Napier University
                                                                                Commission             Universities                • James Watt College
          Degree                Certificate             UBC MBA                 CEIBS MBA                Fordham Univ. MBA          Certificate
          Length                8 Courses                18 Courses             22 Courses               12 Courses                  8 Courses
                                1 Year Program           1.5 Year Program       2 Year Program           2-Year Program              1 Year Program
          Tuition               $ 13,250                 $ 19,133               $ 23,614                 $ 19,500                    $?
                                                                                 English
          Language              English, but Chinese    English                                          Both English and           English
                                can be arranged                                                          Chinese

                                                                                                                                                   BAKER
Source: website of schools, WSJ Interactive                                                                                                        STRATEGY GROUP

                                                                                                                                                              Page 6
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     Executive Summary                                                                                     Oakland University

      OU Graduate Degrees in the School of Business
      OU currently offers 5 graduate degrees from the School of Business Administration, 1 of
 5
      which is an executive MBA in health management


                             OU Schools                         Graduate degrees currently offered
                                                      Executive MBA
                                                        • Health Care Management

                                                      MBA (and accelerated MBA)
                                                       •   Accounting                     • International Business
                                                       •   Business Economics             • Management Information
                                                       •   Entrepreneurship                 Systems
                                                       •   Finance                        • Marketing
                                                       •   Health Care Management         • Production/Operations
                                                       •   HR Management                    Management
                                                      MAcc
                                                        • Public Accounting
                                                        • Managerial Accounting
                                                        • Systems Accounting

                                                      Post Master Certification Programs
                                                       •   Accounting                     • Management Information
                                                       •   Business Economics               Systems
                                                       •   Finance                        • Marketing
                                                       •   HR Management                  • Production/Operations
                                                       •   International Business           Management

                                                      MS in Engineering Management


                                                                                                            BAKER
Source: Oakland University                                                                                  STRATEGY GROUP

                                                                                                                       Page 7
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     Executive Summary                                                                                             Oakland University

      OU Strategic Resources
      Oakland University has 5 key strategic resources which enable OU to successfully offer the
 6
      EMBA-HCM program in China

                     Strategic Resources                                  Implications

                                                  • Makes Guizhou area a natural geographic starting point
                  Guizhou Relationship
           1                                      • Allows existing framework to form basis for Pilot Program


                  Familiarity and Experience      • Enables OU to move quickly on a Pilot Program
           2
                  with China


                  Existing Accredited Executive   • Provides a degree program that can be adapted for China
           3
                  MBA Program


                                                  • Equips OU to successfully deliver needed courses
                 Solid Core Faculty
           4



                                                  • Gives OU staff support to pursue programs in China
                 International Orientation
           5




                                                                                                                    BAKER
Source: Oakland University                                                                                          STRATEGY GROUP

                                                                                                                               Page 8
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     Executive Summary                                                                          Oakland University

     Model Evaluation Against OU Strategic Resources
     Depending on existing relationships, OU should start with a mutual partnership, and later
 7
     develop into a Consortium Partnership

                                  Individual     Mutual      Joint    Consortium              Consortium
                                    Branch     Partnership   Entity   Partnership              Partners
                          Model
          Strategic
          Resource
           Guizhou
     1
           relationship

           China
     2
           experience

           Existing
     3
           program

     4     Core faculty

     5     International
           orientation

           Overall



                                                                                                 BAKER
Source: Baker Strategy Group                                                                     STRATEGY GROUP

                                                                                                            Page 9
     October 1, 2001
Executive Education Opportunities in China
Discussion Paper
                                                                            Oakland University




                   I. Executive Education in China




                                                                             BAKER
                                                                             STRATEGY GROUP

                                                                                      Page 10
October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     I. Executive Education in China                                                                         Oakland University

     Pros and Cons of Investing in China
     Although there are concerns for investing in China at this time, the opportunities outweigh
     the drawbacks


                                                    Pros                                  Cons
                                  • WTO Accession                      • Current terrorist Crisis
        International
                                  • 2008 Summer Olympics               • Global Recession

                                  • Strong domestic economy            • Underdeveloped stock market
           Economic
                                  • High levels of FDI                 • Unperforming loans at Chinese
                                  • SEZ’s offer economic incentives      banks
                                  • Office government support for      • Uncertain leadership succession
            Political
                                    markets and private sector         • CCP divided on foreign enterprises
                                  • Emphasis on management             • Uncertainty from CCP policy
                                    development                          meddling
                                  • Growing legal system               • Corruption
             Other
                                  • General Chinese concern for        • Poor Infrastructure
                                    economic and political stability   • Unemployment




                                                                                                              BAKER
Source: Baker Strategy Group                                                                                  STRATEGY GROUP

                                                                                                                       Page 11
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     I. Executive Education in China                                                                        Oakland University

      China Economic Statistics
      General economic indicators show a fast-growing economy coupled with stable, low level
      inflation

                                            1997     1998      1999       2000 *      2001 *           2002 *

              GDP (US$ bn)                  902.0    964.0     1,012.0    1,101.0     1,204.0         1,324.0
                   YOY                                 6.9%        5.0%       8.8%        9.4%           10.0%

              Real GDP Growth                 8.8%      7.8%       7.2%      8.2%           7.8%            7.9%
                   YOY                                -11.4%      -7.7%     13.9%          -4.9%            1.3%
              GDP per head (US$)            730.0    780.0      810.0      870.0        940.0         1,030.0
                     YOY                               6.8%       3.8%       7.4%         8.0%            9.6%

              Consumer Price Inflation        2.8%     -0.8%     -1.3%       0.4%         1.0%             1.8%
                  YOY                                -128.6%     62.5%    -130.8%       150.0%            80.0%
              Trade Balance (US$ bn)         46.2     46.6       36.2       36.7          32.9            28.8
                     YOY                               0.9%      -22.3%      1.4%        -10.4%          -12.5%
              Total Foreign Debt (US$ bn)   159.2    167.8      164.8      162.1        165.3            177.3
                     YOY                               5.4%       -1.8%      -1.6%          2.0%            7.3%
                                                                                                     * Forecast


                                                                                                             BAKER
Source: The Economist Intelligence Unit                                                                      STRATEGY GROUP

                                                                                                                      Page 12
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     I. Executive Education in China                                                                     Oakland University

     Provincial GDP Growth (in RMB)
     Guizhou and Chongqing, OU’s most natural target markets, rank below the top 20
     provinces in terms of GDP and GDP growth


                 Province              1994   1995   1996   1997   1998   1999        2000            CAGR

                  1    Guangdong       412    530    656    756    826    1,001       1,121           18.2%
                  2    Shandong        376    493    600    687    747      906       1,012           18.0%
                  3    Jiangsu         394    508    604    690    751      902       1,004           16.9%
                  4    Zhejiang        259    347    417    479    520      632         707            8.2%
                  5    Henan           216    296    368    422    454      560         629           19.5%
                  6    Hebei           212    281    347    409    444      543         610           19.2%
                  7    Hubei           182    236    299    357    386      474         535           19.6%
                  8    Shanghai        192    243    292    347    385      461         517           17.9%
                  9    Liaoning        239    275    318    361    405      466         513           13.6%
                 10    Fujian          164    213    260    310    347      419         472           19.3%
                 11    Hunan           165    216    266    309    335      409         458           18.6%
                 12    Sichuan         270    348    300    343    373      404         426            7.9%
                 13    Anhui           145    197    235    276    293      359         402           18.6%
                 14    Heilongjiang    157    199    242    280    295      359         400           16.9%
                 15    Beijing         105    138    163    187    210      250         280           17.7%
                 16    Guangxi         121    158    188    208    198      248         272           14.5%
                       ...
                 22    Chongqing        NA     NA    119    140    149     173          190           12.5%
                       ...
                 27    Guizhou          51     62     72     82     88     104          118           15.1%



                                                                                                          BAKER
Source: Access Asia                                                                                       STRATEGY GROUP

                                                                                                                   Page 13
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     I. Executive Education in China                                                                                   Oakland University

     Provincial Population
     However, Guizhou and Chongqing are in the top 20 in terms of population, making up
     5.4% of China’s 1,273 million people


                                                                                                          2000 % Share
                                                        2000 % Share
                                                                                                             of Total
                                                                       Province         1999    2000
                                                           of Total
                  Province             1999    2000
                                                                       Fujian              33        34         2.7%
                  Henan                   99      100       7.9%
                                                                       Shanxi              33        34         2.7%
                  Shandong                95       96       7.5%
                                                                       Chongqing           31        31         2.4%
                  Sichuan                 88       89       7.0%
                                                                       Heilongjiang        29        30         2.3%
                  Jiangsu                 76       76       6.0%
                                                                       Jilin               28        28         2.2%
                  Guangdong               71       72       5.7%
                                                                       Gansu               26        26         2.1%
                  Hebei                   70       71       5.6%
                                                                       Inner Mongolia      25        25         2.0%
                  Hunan                   69       70       5.5%
                                                                       Xinjiang            17        18         1.4%
                  Hubei                   62       62       4.9%
                                                                       Shanghai            13        13         1.1%
                  Anhui                   56       57       4.5%
                                                                       Beijing             12        12         0.9%
                  Guangxi                 47       48       3.8%
                                                                       Hainan               8         8         0.6%
                  Zhejiang                46       47       3.7%
                                                                       Tianjin              6         6         0.5%
                  Jiangxi                 46       46       3.6%
                                                                       Ningxia              6         6         0.4%
                  Liaoning                43       44       3.4%
                                                                       Qinghai              5         5         0.4%
                  Hunan                   41       41       3.3%
                                                                       Tibet                3         3         0.2%
                  Guizhou                 38       38       3.0%
                  Shaanxi                 37       37       2.9%
                                                                       TOTAL            1,259    1,273       100.0%




                                                                                                                        BAKER
Source: Access Asia                                                                                                     STRATEGY GROUP

                                                                                                                                 Page 14
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     I. Executive Education in China                                                                                      Oakland University

     National Labor Market
     Almost 80% of China’s 643 million labor market in 2000 is concentrated in traditional
     industries, such as agriculture and construction

          Total Population  = 1,273 Million                                       National Employment  = 643 Million
                                                                                                           Employment
                                                                          Sector                           1994   2000           CAGR

                                                                  Agriculture, forestry & fisheries           334       330        -0.2%
                                                                  Manufacturing                                96        89        -1.4%
                                                                  Wholesale, retail and catering trade         39        52         4.9%
                                                   51%            Construction                                 32        35         1.6%
                                                                  Transport, storage, post and telecom         19        21         2.3%
                                                                  Education, culture and the media             14        17         2.4%
                                                                  Government and social agencies               10        11         1.1%
                                                                  Service sector                                6        10         7.9%
                                          Labor                   Mining & quarrying                            9         7        -4.7%
       49%            Non Labor          Market                   Health, sports & social welfare               4         5         2.5%
                       Market           643 Million               Banking and insurance                         3         3         4.5%
                      630 Million
                                                                  Utilities (water, gas & electricity)          2         3         3.8%
                                                                  Scientific research                           2         2         0.5%
                                                                  Water conservancy                             1         1        -4.0%
                                                                  Real estate                                   1         1         5.7%
                                                                  Others                                       42        56         5.0%

                                                                  Total                                       615       643         0.7%


                                                                                                                           BAKER
Source: Access Asia, Understanding China: 了解中国
                                             , John Bryan Starr                                                            STRATEGY GROUP

                                                                                                                                    Page 15
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     I. Executive Education in China                                                                                Oakland University

     Urban Employment
     And 120 million, almost 65%, of the 187 million urban employment in 2000 is
     concentrated in state-owned enterprises

           Total Labor Market  = 643 Million                       Urban Employment by Ownership  = 187 Million

                                                                  140
                                                                         120
                                                                  120
                                                    29%
                                                                  100

                                           Urban                  80
                                         187 Million
        71%               Rural                                   60

                       456 Million                                                   40
                                                                  40

                                                                                                     20
                                                                  20
                                                                                                                       7
                                                                   0
                                                                        State      Private       Collective     Unemployed




                                                                                                                     BAKER
Source: Access Asia, Understanding China: 了解中国
                                             , John Bryan Starr                                                      STRATEGY GROUP

                                                                                                                              Page 16
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     I. Executive Education in China                                                                                                Oakland University

      MBA Program Growth in China
      MBA programs have grown quickly in China over the last 4 years to meet the changing
      needs of managers in a variety of enterprises

                                                          MBA program growth in China
     Cumulative MBA Holders in China                        Enrollment in Chinese MBA Schools                Participating Chinese Schools
                                                               40,000
       30,000                                                                                               80                                 75
                                                                                                   35,000
                                                               35,000
                                           25,000                                                           70
       25,000
                                                               30,000                                       60                       56
       20,000                                                                             23,500
                                                               25,000                                       50
                                                               20,000
       15,000                                                                                               40
                                                               15,000                                                       26
                                                                                                            30
       10,000
                                                               10,000                                       20
                                  5,000                                           5,000
        5,000                                                                                                      9
                                                                5,000                                       10
                         1,000                                            86
                  0
                                                                    0
            0                                                                                               0
                                                                         1991     1997    1999     2001
                 1991     1997     1999    2001                                                                  1991      1997     1999      2001




                                                                                                                                     BAKER
Source: Asia One, US Consulate in Hong Kong, US Army Research office – Far East                                                      STRATEGY GROUP

                                                                                                                                              Page 17
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     I. Executive Education in China                                                                                               Oakland University

      Estimated Annual MBA Demand in China
      The current estimated 35,000 MBA enrollment translates into 20,000 estimated annual
      graduates, short of the 50,000 estimated annual demand



                                                                      Forecasted MBA Demand
                                                                China’s demand for MBAs is
                                                                expected to exceed 1.4 million in
                                                                the next decade
                                                                         -William Daley
                                                                US Secretary of Commerce, 1998


                 Forecasted Senior Managers                                                                Forecasted MBA Demand

              • 350,000 senior managers needed                                                      China’s goal is to have 50,000 annual
                                                                         Estimated annual
                in 5 years                                                                          MBA graduates
                                                                         demand for MBA
              • 25,000 current MBAs                                                                                 -Siwei Chen
                                                                             graduates
              • 35,000 in-school MBAs                                                                         Vice Chairman of NPC
              • Assume 50% of senior managers                                                                           1999
                                                                              50,000
                need MBA degree




                                                                                                                                    BAKER
Source: Asia One, US Consulate in Hong Kong, US Army Research office – Far East                                                     STRATEGY GROUP

                                                                                                                                             Page 18
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     I. Executive Education in China                                                                                        Oakland University

     Business Training Services
     While there is heavy competition for corporate and business training, universities are
     uniquely positioned to offer executive MBA degrees


                                                  Basic                General                Management                   MBA
                                                 English                Skills                  Training                 Programs

         Nature of coursework            Business English        Business and             Hand-on courses and      Degree program
                                         reading, writing, and   administrative skills    workshops to develop     providing a complete
                                         speaking                                         manager                  business orientation
                                                                                          effectiveness
                                         • Business Writing      • Computers
         Examples                                                                         • Managing Teams         Emphasis in:
                                         • Market Terms          • Basic Finance          • Business Planning      • Finance
                                         • Specific Industry     • General Marketing      • Negotiation            • Marketing
                                           Terminology           • Time Management        • Performance            • Accounting
                                                                 • Cultural Sensitivity     Reviews                • Etc.
         Who is equipped to offer this

            • Universities

            • Corporate Universities

            • Training Companies

            • Individual Training



                                                                                                                             BAKER
Source: Baker Strategy Group                                                                                                 STRATEGY GROUP

                                                                                                                                      Page 19
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     I. Executive Education in China                                                                                   Oakland University

     MBA Programs in China
     A foreign university, such as OU, offers an internationally accredited degree that has clear
     advantages over a Chinese MBA degree


                                               Traditional Full Time                    Executive Part Time
                                            Pros                 Cons                Pros                    Cons
                                                                                                      • Top students go
                                                            • Top students go   • Easy to obtain
                                       • Easy to obtain
                                                                                                        abroad
                                                              abroad            • Often relatively
                                       • Often relatively
                                                                                                      • Degree not
                                                            • Degree not          inexpensive
                                         inexpensive
                                                                                                        recognized
                                                              recognized        • Manager
                      Chinese
                                                                                                        internationally
                                                              internationally     continues to
                      Degree
                                                                                  contribute to
                                                                                  the enterprise


                                             Pros                 Cons                Pros                Cons
                                                                                                    • More expensive
                                                            • Top students go   • Internationally
                                       • Internationally
                                                                                                      than Chinese
                                                              abroad              recognized
                                         recognized
                                                                                                      degree
                                                            • More expensive      degree
                                         degree
                                                                                                    • Often more
                                                              than Chinese      • Manager
                                       • US mgt. theory
                        US
                                                                                                      demanding
                                                              degree              continues to
                      Degree
                                                                                                      program
                                                            • Often more          contribute to the
                                                              demanding           enterprise
                                                              program           • US mgt. Theory
                                                                                  and methods


                                                                                                                        BAKER
Source: Baker Strategy Group                                                                                            STRATEGY GROUP

                                                                                                                                 Page 20
     October 1, 2001
Executive Education Opportunities in China
Discussion Paper
                                                                       Oakland University




                   II. 5 Models of Partnering




                                                                        BAKER
                                                                        STRATEGY GROUP

                                                                                 Page 21
October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
                                                                                                                                                  Oakland University

      Five Partnering Models
      Many foreign universities are offering executive MBA programs in China using at least five
      models for partnering with Chinese schools


                                           1                        2                   3                           4                             5


                                                         Mutual Partnership                          Consortium Partnership          Consortium Partners
                                 Individual Branch                                 Joint Entity
          Model




                                Global Management                                                                                   Executive MBA in
          Program                                        International MBA      International MBA        Executive MBA
                                Program                                                                                             Leadership
                              • Thunderbird            • The University of    • Shanghai Jiao Tong   • Tsinghua Univ.              • Beijing Electric Power
          Partners              Graduate School of       British Columbia       University           • Fordham University            College
                                International          • Shanghai Jiao Tong   • The European         • Santa Clara Univ.           • Shanghai Metallurgy
                                Management               University             Foundation for       • Renessler                     Chengdu Hydro Elect.
                                                       • Team Canada Trade      Management Dev.        Polytechnic Univ.             Power College
                                                         Mission              • MOFTEC               • Loyola University           • Plato College
                                                                              • European             • 22 other US                 • Napier University
                                                                                Commission             Universities                • James Watt College
          Degree                Certificate             UBC MBA                 CEIBS MBA                Fordham Univ. MBA          Certificate
          Length                8 Courses                18 Courses             22 Courses               12 Courses                  8 Courses
                                1 Year Program           1.5 Year Program       2 Year Program           2-Year Program              1 Year Program
          Tuition               $ 13,250                 $ 19,133               $ 23,614                 $ 19,500                    $?
                                                                                 English
          Language              English, but Chinese    English                                          Both English and           English
                                can be arranged                                                          Chinese

                                                                                                                                                   BAKER
Source: website of schools, WSJ Interactive                                                                                                        STRATEGY GROUP

                                                                                                                                                            Page 22
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     II. 5 Models of Partnering                                                                                    Oakland University

     Thunderbird’s China Global Management Program
     Thunderbird has set up a branch office in Shanghai and offers courses managed and                                                   1
     taught directly by Thunderbird staff and professors

                                            Thunderbird’s China Global Management Program



                                  School                                            Program Overview


                                                                     Date Began   General Management Program

                                                                     Program      • 8 modules:
                                                                                      - Initial 5-day orientation
                                                                                      - One 4-day module
                                                                                      - Five 3-day modules
              Thunderbird, The American Graduate
                                                                                      -One final 5-day module
              School of International Management
                            United States                                         • Taught by Thunderbird faculty




                                                                                                                    BAKER
Source: Thunderbird, Baker Strategy Group                                                                           STRATEGY GROUP

                                                                                                                             Page 23
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     II. 5 Models of Partnering                                                                                              Oakland University

     Sample of Thunderbird’s CBSD clients in China
     Thunderbird’s Center for Business Skills Development (CBSD) has delivered programs to                                                         1
     over 40 US and Chinese business clients in China



                   3M China Ltd.                                           Hilti (China) Ltd.
                   ABB China Ltd., Beijing                                 IBM China Co., Ltd
                   Advanced Semiconductor Manufacturing Co., Ltd.          International Nutrition Co., Ltd.
                   Alcatel China, Ltd.                                     Mary Kay Inc. Z
                   Alcoa (Shanghai) Aluminum Products Co., Ltd.            Motorola (China) Electronics, Ltd.
                   AlliedSignal (Kaiping) Industrial Fiber Company, Ltd.   Motorola University
                   American Standard (Hua Mei) Sanitary Ware Co., Ltd.     Ogilvy Public Relations Worldwide
                   Tyco (AMP) Shanghai Ltd.                                Pepsico, Inc. Pepsi-Cola Division China Business Unit
                   Astra Zeneca (Wuxi) Pharmaceutical Co., Ltd.            Pepsico Foods (China) Co., Ltd.
                   Aventis (China) Inv. Co., Ltd.                          Pepsico, Inc. HK
                   BellSouth Shanghai Center, Ltd.                         Pharmacia & Upjohn (China), Ltd.
                   Borg Warner Cooling System                              Polaroid of Shanghai Ltd.
                   China Unicom                                            Roche (China), Ltd.
                   DuPont China Holding Co., Ltd. Shanghai Office          Shanghai Bertelsmann Culture Industry Co., Ltd.
                   EDS Electronic Data Systems (HK), Ltd.                  Shanghai CompAir Compressor Co. Ltd.
                   Eli Lilly S.A. Shanghai Rep. Office                     Shanghai Eaton Engine Components Co., Ltd.
                   Export Import of East Asia, Inc., Shanghai              Shanghai Huateng Software Systems Co., Ltd.
                   Fisher-Rosemount China Ltd.                             Shanghai Johnson Ltd.
                   Global Sources                                          Shanghai Municipal People's Government
                   Guangzhou Pepsi-Cola Beverage Co.                       Shanghai Simicomix Electronic Co., Ltd.
                   Henkel (China) Investment Co., Ltd.


                                                                                                                              BAKER
Source: Thunderbird, Baker Strategy Group                                                                                     STRATEGY GROUP

                                                                                                                                       Page 24
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     II. 5 Models of Partnering                                                                                           Oakland University

     Thunderbird’s Estimated Revenues and Costs
     Thunderbird’s Global Management Program appears to be profitable, based on a simple                                                        1
     estimate of costs and revenues


                                              Per Person Per Day   Total Per Day       Total
                                                                                                               Key Assumptions
   Revenue                                    $             552    $      5,520    $    132,480
   Expenses
                                                                                                          • Estimated 10 students
                          Training Facility   $             100    $      1,000    $      24,000
                                                                                                            enrolled in the program
                          Administrative      $              50    $        500    $      12,000
                          Faculty Fees        $             120    $      1,200    $      28,800
                                                                                                          • 24 days of actual classes
                          Faculty Expenses    $              50    $        500    $      12,000
                          Student Hotel       $              75    $        750    $      18,000
                                                                                                          • 1 instructor for any given
                          Student Food        $              25    $        250    $       6,000
                                                                                                            module of classes
                          Student Materials   $              10    $        100    $       2,400
                          Misc                $              50    $        500    $      12,000          • Tuition is paid by either
                                                                                                            participants or sponsoring
                          Total Expenses      $             480    $      4,800    $    115,200             corporate partners

   Net Difference                             $               72   $        720    $      17,280
   % of Revenue                                                                            13.0%
   % of Costs                                                                              15.0%




                                                                                                                           BAKER
Source: Thunderbird, Baker Strategy Group                                                                                  STRATEGY GROUP

                                                                                                                                    Page 25
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     II. 5 Models of Partnering                                                                                      Oakland University

      UBC Partners with Jiao Tong
      UBC chose to partner with Shanghai Jiao Tong University to offer an executive MBA                                                    2
      degree from UBC




                                                                                     Shanghai Jiao Tong University
                        The University of British Columbia

           School:                Commerce and Business                  Target:      Senior manages in Chinese
                                  Administration                                      enterprises, joint ventures, and
                                                                                      government
           Sponsor:               Team Canada trade mission to China,
                                  lead by Prime Minister jean Chretien   Model:       Majority of classes taken in Shanghai
                                  and 9 provincial premiers                           at Jiao Tong University. The last few
                                                                                      classes are taken in Canada on UBC’s
                                                                                      campus

                                                                         Graduates    Over 300 Chinese have graduated
                                                                                      from this program




                                                                                                                      BAKER
Source: University of British Columbia                                                                                STRATEGY GROUP

                                                                                                                               Page 26
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     II. 5 Models of Partnering                                                                                            Oakland University

     CEIBS Joint Venture with Jiao Tong
     CEIBS is a separate joint venture between Shanghai Jiao Tong University                                                                     3
     and the European Foundation for Management Development




          European Foundation for Management                                                       Shanghai Jiao Tong University
                      Development                                                                       Shanghai, China
                    Brussels, Belgium
        Mission:        Europe's forum for                                                   As one of China’s most prestigious
                        information, research,                                               universities, shanghai Jiao Tong University
                                                       Established       1994
                        networking and dialogue on                                           has partnered with a number of foreign
                        innovation and best practice                                         universities to offer MBA programs to
                                                       Program Target:   Senior executives
                        in management development                                            Chinese students
                                                       Program Length: 2 years, 22 4-day
                                                                       weekends




                                                                                                                            BAKER
Source: CEI BS                                                                                                              STRATEGY GROUP

                                                                                                                                     Page 27
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     II. 5 Models of Partnering                                                                                                       Oakland University

     CEIBS Information for 1995-2000
     CEIBS has provided executive MBA degrees to 1,041 people, mostly men in manufacturing                                                                    3
     and telecom in either state run or foreign


                                                                              = 1,041 students

                   By Gender                                                    By industry                                   By Sector


                                                                                                                                      3%
                                                                                                                                                Private
                                                                                                                        10%
                                             er on al al nt de m ng
          14%
                                           th ti ti c c i e a c o r i
                                          O ruc eu an rnm Tr le tu

                                                                                                                                                        46%
                                                             Te fac


                                                                                                                              Govt.
                                   86%
                                                                u
                                                              an
                                                            M




                                                                                                                                            State
            Women            Men                                                                                                           Owned
              150
                             891
                                            st ac Fin ve
                                                       o
                                                     G




                                                                                                                           JV/ WOFE
                                          on m
                                         C har
                                           P




                                                                        0%       10%    20%       30%   40%
                                                                                                                        41%




                                                                                                                                       BAKER
Source: CEIBS                                                                                                                          STRATEGY GROUP

                                                                                                                                                Page 28
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     II. 5 Models of Partnering                                                                Oakland University

     Jesuit Consortium and Tsinghua University Partnership
     The Jesuit Consortium, a group of 26 universities and colleges, has partnered with                              4
     Tsinghua University to form BiMBA


                                  US Partnering Schools        China’s Tsinghua University




                                                                            Beijing
                                                                      International MBA




                                                                                                BAKER
Source: Jesuit Consortium                                                                       STRATEGY GROUP

                                                                                                         Page 29
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     II. 5 Models of Partnering                                                                                                                        Oakland University

     BiMBA Program Structure
     This model allows the consortium to draw upon over 1,000 US professors while offering a                                                                                    4
     quality MBA degree from Fordham University



          Program Basics                                            Year 1                                  Year 2                                Year 3
                                                                                                 •Financial Management                   •Innovation & Change Management
    Date Formed          1998                                                                    •Accounting for Executives              •MIS & Information Technology
                                                  Spring                                         •PKU Heritage Lecture Series No. 3       Management
                                                                                                 •Global Issues Lecture Series. No. 3    •PKU Heritage Lecture Series No. 7
    Model                Courses taught                                                                                                  •Global Issues Lecture Series. No. 7
                         in China, with 3-
                         week study tour                                                         •Marketing Management                   •Global Policy & Strategy
                         in US at the end                                                        •Operations Management                  •Cross Culture Management
                                                                                                 •PKU Heritage Lecture Series No. 4       &Negotiation
                         of the program
                                                  Summer                                         •Global Issues Lecture Series. No. 4


    Instruction:         US professors

                                                           •First Executive Residency             •Entrepreneurship and Firm Growing       •3-week study tour in US
                                                           •Managerial Economics                  •Global Legal and Ethic Issues
                                                           •Business Statistics                   •PKU Heritage Lecture Series No. 5
                                                  Winter   •PKU Heritage Lecture Series No. 1     •Global Issues Lecture Series. No. 5
                                                           •Global Issues Lecture Series No.1



                                                           •Business & Economic Environment in    •International Trade and Finance
                                                            China                                 •HRM and Leadership
                                                           •Management & Organization Behavior    •PKU Heritage Lecture Series No. 6
                                                  Fall     •PKU Heritage Lecture Series No. 2     •Global Issues Lecture Series. No. 6
                                                           •Global Issues Lecture Series No. 2




                                                                                                                                                        BAKER
Source: Jesuit Consortium, Baker Strategy Group                                                                                                          STRATEGY GROUP

                                                                                                                                                                      Page 30
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     II. 5 Models of Partnering                                                                Oakland University

     The Delter Canada Model
     Delter Canada formed a separate entity that offers content from Scotland universities and                       5
     partners with local institutes in various Chinese cities


            US Consortium                                         Chinese partner Institutions
                                                                                 北京
                                                                   Beijing
                                                                   Beijing Electric
                             Delter Canada
                                                                   Power College
                             Canada
                                                                   Shanghai 上海
                                                                   The Shanghai
                                                                   Metallurgy College
                                                      Delter
                             Napier University    International                程度
                                                                   Chengdu
                             Scotland               Business       The Chengdu Hydro
                                                    Institute      Electric Power College
                                                                                武汉
                                                                   Wuhan
                             James Watt College                    Wuhan Railway Vocational
                             Scotland                              Technical College
                                                                   Changchun 长春
                                                                   TBD



                                                                                                BAKER
Source: Delter                                                                                  STRATEGY GROUP

                                                                                                         Page 31
     October 1, 2001
Executive Education Opportunities in China
Discussion Paper
                                                                     Oakland University




                   III. OU EMBA-HCM Program




                                                                      BAKER
                                                                      STRATEGY GROUP

                                                                               Page 32
October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     III. OU EMBA-HCM Program                                                                                        Oakland University

      Overview of Oakland University
      In 44 years, Oakland University has grown to become one of the top universities in the
      Midwest


                                       Brief history                                       OU today
            1957             Michigan State University created from Wilson
                             land and money donation

            1959             First students enrolled to Michigan State
                             University – Oakland

            1963             Named changed to Oakland University             Enrollment                              15,875
                                                                                    • Undergraduate                  12,529
            1970             First Board of Trustees                                • Graduate                        3,346

            1995             Strategic Plan, 1995-2005, was developed        Academic Programs
                                                                                   • Baccalaureate                       110
            1997             Creating the Future launched                          • Graduate and Certif.                 69

            1999             Full re-accreditation from the Central          Other facts
                             Association of Colleges and Schools                    • Undergraduate class size           30
                                                                                    • Student:Faculty Ratio            19:1
            2000             Ranked among the top ten regional public               • Faculty with Ph.D.               90%
                             universities in the Midwest for 1999/2000 by           • Kresge Library               688,000
                             U.S. News and World Report                                                            volumes


                                                                                                                      BAKER
Source: Oakland University                                                                                            STRATEGY GROUP

                                                                                                                               Page 33
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     III. OU EMBA-HCM Program                                                                              Oakland University

      OU Graduate Degrees in the School of Business
      OU currently offers 5 graduate degrees from the School of Business Administration, 1 of
      which is an executive MBA in health management


                                OU Schools                      Graduate degrees currently offered
                                                      Executive MBA
                                                        • Health Care Management

                                                      MBA (and accelerated MBA)
                                                       •   Accounting                     • International Business
                                                       •   Business Economics             • Management Information
                                                       •   Entrepreneurship                 Systems
                                                       •   Finance                        • Marketing
                                                       •   Health Care Management         • Production/Operations
                                                       •   HR Management                    Management
                                                      MAcc
                                                        • Public Accounting
                                                        • Managerial Accounting
                                                        • Systems Accounting

                                                      Post Master Certification Programs
                                                       •   Accounting                     • Management Information
                                                       •   Business Economics               Systems
                                                       •   Finance                        • Marketing
                                                       •   HR Management                  • Production/Operations
                                                       •   International Business           Management

                                                      MS in Engineering Management


                                                                                                            BAKER
Source: Oakland University                                                                                  STRATEGY GROUP

                                                                                                                     Page 34
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     III. OU EMBA-HCM Program                                                                                  Oakland University

      EMBA-HCM Program Courses
      The EMBA-HCM program involves 39 credits, 29 credits in core courses and 10 credits in
      elective courses

        Core courses                                Credits   Elective Course                                          Credits
                                                              Forecasting in Health Care                                     2
        Statistical Methods                              2
                                                              Quality Assurance in Health Care                               2
        Financial & Managerial Accounting                3
                                                              Cost Management in Health Care                                 2
        Managerial Economics                             3
                                                              Government Policy in Health Care                               1
        Health Economics                                 2
                                                              International Comparisons in Health Care                       1
        Teambuilding, Leadership, & Communication        2
                                                              Managing Cultural Diversity                                    1
        Human Resources Management                       2
                                                              Hospital Administration                                        1
        Strategic Management                             3
                                                              Transforming the Health Care Organization                      2
        Operations Management                            2
                                                              Contracts & Negotiation in Health Care                         1
        Healthcare Information Systems                   2
                                                              Outcomes Assessment in Health Care                             1
        Legal & Ethical Issues                           2
                                                              New Ventures in Health Care                                    1
        Marketing Management                             3
                                                              Facilities Planning and Evaluation                             1
        Financial Management                             3
                                                              Project Management in Health Care                              1
                                                              Managing Technology in Health Care                             2
                                                              Data Warehousing in Health Care                                1
                                                              Health Care Marketing & Consumer Satisfaction                  2
                                                              New Health Care Services Development                           1
                                                              Hospital Finance & Managed Care                                3
                                                              Mergers & Acquisitions in Health Care                          2

                                                               Choose a total of                                           10
          Total                                        29



                                                                                                                BAKER
Source: Oakland University                                                                                      STRATEGY GROUP

                                                                                                                         Page 35
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     III. OU EMBA-HCM Program                                                               Oakland University

      OU School of Business Faculty
      These courses are taught by the School of Business 60-member faculty, who teach the
      graduate and undergraduate

                                                                     Assistant Professors and
                         Professors      Associate Professors
                                                                            Lecturers
                 Barclay, Elizabeth A.   Bhargava, Mukesh            Aigbedo, Henry
                 Bazaz, Mohammed S.      Callaghan, Joseph H.        Bangs, Joann
                 Braunstein, Daniel N.   Coppin, Addington M.        Cardimen, Frank P.
                 Dillon, Gadis J.        Fliedner, Gene              Carter, E. Vincent
                 Doane, David P.         Folland, Sherman T.         Deng, Xiaodong
                 Esposito, Louis         Henke, John W.              Fountain, James
                 Farragher, Edward J.    Kim, John D.                Ganesh, Usha
                 Fosu, Augustin K.       Mathieson, Kieran           Gbane, Ousmann-Alain, Jr.
                 Horwitz, Ronald M.      Mukherji, Nivedita          Heiple, Roger
                 Izraeli, Oded           Nathan, Kevin S.            Isken, Mark
                 Kleiman, Robert T.      Parkash, Mohinder           Lee, Yong-Shik
                 Lauer, Thomas W.        Pelfrey, Sandra S.          McGowan, Carl
                 Mayer, Donald O.        Pisharodi, R. Mohan         Miree, Cynthia
                 Murphy, J. Austin       Theisen, Barbara A.         Rajagopalan, Balaji
                 Murphy, Kevin J.        Tracy, Ronald L.            Savage, Arline
                 Parameswaran, Ravi      Wharton, T. J.              Setzekorn, Kristina
                 Peacock, Eileen         Willoughby, Floyd G.        Sharma, Sri
                 Sahu, Anandi P.         York, Kenneth M.            Sidaway, David D.
                 Schwartz, Howard S.                                 Simon, Mark
                 Stano, Miron                                        Sugumaran, Vijayan
                 Tanniru, Mohan                                      Whitaker, Jim


                                                                                             BAKER
Source: Oakland University                                                                   STRATEGY GROUP

                                                                                                      Page 36
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     III. OU EMBA-HCM Program                                                                    Oakland University

      EMBA-HCM Program
      There are 4 basic requirements for admission into the EMBA-HCM program, a criteria that
      can be easily adapted for



                             4 General Requirements                 Other Information

                                                      • 30 applicants accepted each year to form
                                                        “cohort group”
                              5 years of
                  1
                              experience in health    • Courses taught by faculty and health care
                              care industry             practitioners
                  2           Undergraduate
                                                      • All courses taken from MBA program
                              degree
                  3                                   • Program length = 21 months
                              Employee
                              endorsement             • Courses taught on alternating weekends:
                                                        - Friday afternoons
                  4           GMAT score
                                                        - Saturday, all day




                                                                                                  BAKER
Source: Oakland University                                                                        STRATEGY GROUP

                                                                                                           Page 37
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     III. OU EMBA-HCM Program                                                                        Oakland University

      Oakland University’s Strategic Plan, 1995-2005
      Developing executive MBA programs in China would fit into Strategy 2 and Strategy 8 of
      OU’s Strategic Plan



                             1              2                   3                             4
                    Ensure an           Strengthen      Environment rich in           Encourage
                 undergraduate       graduate study      diversity, support            research,
                 environment of       responsive to         services and           scholarship, and
               learning excellence     regional and        activities, and        creative activities
                                     national needs       sports activities


                             5              6                   7                             8
                 Expand efforts to     Develop and          Create an              Increase self-
                    serve the        support areas of      empowered            assessment activity
                   community           institutional      community of
                                        excellence       diverse, unified,
                                                         committed, and
                                                            motivated
                                                            employees




                                                                                                      BAKER
Source: Oakland University                                                                            STRATEGY GROUP

                                                                                                               Page 38
     October 1, 2001
Executive Education Opportunities in China
     Discussion Paper
     III. OU EMBA-HCM Program                                                                                      Oakland University

      OU Strategic Resources
      Oakland University has 5 key strategic resources which enable OU to successfully offer the
      EMBA-HCM program in China

                     Strategic Resources                                  Implications

                                                  • Makes Guizhou area a natural geographic starting point
                  Guizhou Relationship
           1                                      • Allows existing framework to form basis for Pilot Program


                  Familiarity and Experience      • Enables OU to move quickly on a Pilot Program
           2
                  with China


                  Existing Accredited Executive   • Provides a degree program that can be adapted for China
           3
                  MBA Program


                                                  • Equips OU to successfully deliver needed courses
                 Solid Core Faculty
           4



                                                  • Gives OU staff support to pursue programs in China
                 International Orientation
           5




                                                                                                                    BAKER
Source: Oakland University                                                                                          STRATEGY GROUP

                                                                                                                             Page 39
     October 1, 2001
Executive Education Opportunities In China
Executive Education Opportunities In China
Executive Education Opportunities In China
Executive Education Opportunities In China
Executive Education Opportunities In China
Executive Education Opportunities In China
Executive Education Opportunities In China

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Executive Education Opportunities In China

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