MGTS3301 Assignment 2 PDF

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Summary

Major Assignment - UQ Strategic Plan...

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The University of Queensland

Evaluation of UQ Strategic Plan 2018-2021 and Its Implementation MGTS3301 – Business Policy and Strategy

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Table of Contents

1.0 Introduction.........................................................................................................................2 2.0 Task 1 – Evaluation of UQ’s Strategic Fit..............................................................................3 3.0 Task 2 – Evaluation of UQ’s Strategy Implementation.........................................................6 4.0 Task 3 – Evaluation of UQ’s Strategic Initiatives...................................................................9 5.0 Task 4 - Recommendation…………………………………………………………………………………………… 12 6.0 Appendices…………………………………………………………………………………………………………………..13

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1.0 Introduction

This report will provide an evaluation of the UQ’s Strategic plan and its implementation for the years of 2018-2021. This evaluation cannot be understated as it could allow UQ to more effectively allocate resources and align stakeholders to achieve strategic goals while seizing opportunities to further strengthen their position as Queensland’s premier university. This evaluation will be structured as follows. Firstly, an evaluation into university’s stated long and medium-term objectives and positioning to the external and internal environment they are faced with. Secondly, we will evaluate the effectiveness of strategic implementation of the medium and long-term objective of the university based on the organisational structure of UQ. Thirdly, we will evaluate the strategic initiatives that UQ has implemented to achieve is long term objective of producing game-changing graduates. Finally, the report will conclude with one key recommendation for change to be made by UQ to more effectively implement the strategic plan based on our evaluations.

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2.0 Task 1 – Evaluation of UQ’s Strategic Fit

To evaluate the strategic fit of UQ’s strategic plan 2018-2021, one long term objective of the University and one medium term objective have been chosen to analyse how well these strategic focus areas address the issues faced in the external and internal environments. The long-term objective chosen was to ‘Transform students into game-changing graduates who make outstanding contributions and address complex issues with a global perspective’, while the medium term objective chosen was to ‘commit to activities that attract, support and retain a diverse and inclusive community of high achieving staff and students’.

The medium and long-term objectives chosen for evaluation are well aligned as by continuing to attract a diverse and high achieving set staff and students, UQ will be well positioned to continue to create game-changing students who contribute to complex issues with a global perspective. The external and industry analysis completed as part of Appendix 1 found that while there is high competitive rivalry among firms within the higher education industry, UQ’s focus on attracting and retaining the highest quality academic professors and lecturers acts as a key strength to capitalise on the high bargaining power of supplier and low bargaining power of buyers within the industry. By doing so UQ is able to retain higher quality students and subsequently graduates through taking advantage of key opportunities

4 such as the importance placed upon diversity and multiculturalism of its staff and students. In evaluating the strategic plan the high bargaining power of UQ’s suppliers (academics) is of crucial importance, as replacements these resources are difficult and often impossible to secure. UQ’s devotion and status of attracting the highest quality academics is a significant strength and is highlighted through statistics showing the universities ability to attract and retain exemplary global talent.

However UQ also manages to mitigate threats through the stated medium and long-term objectives. For example, in the face of declining GDP growth domestically in Australia as well as in China which serve as significant catch areas for their buyers (students), through these strategies UQ is enhancing strengthening their position in these markets despite the economic threats faced with declining gross domestic product growth rates. The stated strategic objectives are well placed to mitigate this threat faced by the university’s external environment and based on enrolment numbers both domestically and internationally these strategic objectives are performing effectively.

Furthermore, from our analysis we know that UQ has been able to seize another opportunity through the stated strategic objectives to attract a greater portion of foreign students. The analysis completed suggests that this has increased due to the depreciation of the Australian dollar against other countries which is significant for the university due to the lower relative

5 cost for foreign students. UQ’s strategy is taking advantage of this opportunity through the medium-term objective discussed as the institution is attracting high achieving students not only domestically but also abroad which can be seen through 33.6% of all enrolments being foreign students. The expectation would be that this strategic focus on continuing to attract foreign high achieving talent will lead to achievement of their long-term objective of transforming students into game-changing graduates.

Finally, UQ’s tangible and intangible resources have been bundled to create a key capability to exploit their core competencies which serves as a source of competitive advantage relative to others within their industry. This is namely: UQ provides the highest quality education through top and research capabilities underpinned by a world class reputation and facilities, highly qualified academic faculty, storied history and globally recognized ranking. This core competency and capability held by UQ is valuable to students, rare due to its reputation both domestically and aboard to prospective student, costly to imitate due to its storied history. While it is not non-substitutable as other institutions can offer this to prospective students, the table included as part of Appendix 1 shows that this can continue to be a source of sustainable competitive advantage for UQ. The strategic objective in both the medium and long term that are the focus of this section are aligned well to ensure the reinforcement and growth of the core competency derived from our analysis of the internal and external environment. In conclusion, UQ’s strategic Plan fits well with our findings of the Universities external and

6 internal environment. The plan takes advantages of opportunities while addressing threats faced by the university and complements and amplifies the core competency that the university possesses.

3.0 Task 2 – Evaluation of UQ’s Strategy Implementation

There is strong reciprocal relationship between strategies implemented by organisations and the corresponding structure that the organisation employs. However, it is vital that UQ is aware of issues that will arise that both constrain or support the strategy implementation of the medium and long-term strategies previously mentioned due to its organisational structure. UQ has structured itself predominantly to increase differentiation with elements of cost leadership due to its highly formalised status with centralisation at both lower and higher levels within its structure to maintain levels of flexibility. UQ have implemented a related linked form of the multi-functional divisional structure of which is a hallmark is the high degree of formalisation, centralisation and specialisation at varying levels that UQ has trended towards recently.

The structure has been implemented based on UQ’s long history of continued success and growth to allow for differentiation of its respective faculties and research institutes products. This has resulted in high levels of centralisation and formalisation for division department heads of each faculty/ institute or faculty level matters through delegated responsibility.

7 However, corporate executive level staff such as the Provost and Deputy Vice-Chancellors still oversee and manage where required.

Structural integration among the faculties with moderate integration amongst each, but levels of independence exist for the faculties to perform standalone functions. In this way operation are partially centralised in the faculties but is also centralised in upper corporate level of the structure to ensure successful management. As each of the strategic business units (faculties and institutes) are required to focus upon their own product to be successful, this structure can lead to issues of neglect in terms of constraining economies of scope amongst different departments which can limit efficiency and therefore hinder the abilities of the high achieving staff and students the University wants to attract and retain through the medium term strategy. If exploited correctly, economies of scope can be realised across departments to optimise each individual course and product for students to align and support the stated strategies. The use of a multi divisional structure for implementing related linked strategy rather than a related strained strategy is essential to support the effective implementation of the mediumterm and long-term strategy selected for this evaluation as high achieving students and staff are able to experience other faculties to transform into game changing graduates in their respective fields.

8 With higher formalisation, varied centralisation across the levels of the divisional structure and high levels of specialisation amongst department heads and upper corporate level managers such as the Provost (despite low levels of specialisation required for certain professional staff), there exists elevated layers of bureaucracy to be navigated for decisions to be made. Given the layers of bureaucracy associated with this structure for an outcome to occur, this could serve as a constraint amongst the medium-term strategy we have detailed as it could in fact constrain the retention or acquisition of potential high achieving staff and students due to the high levels of bureaucracy and formalisation which in turn could constrain the ability of UQ to transform students into game changing graduates.

Another issue with UQ’s organisational structure is the necessity of duplication of resources across the strategic business units which can inefficiently allocate resources where they could be better utilised elsewhere. This could constrain the medium-term strategy as high achieving staff may well depart due to under allocation of funding.

Through correct matching between strategies and organisational structure, UQ can further enhance a point of competitive advantage against competition and the structure implemented and described above offers characteristics that both support and constrain the implementation of the medium-term and long-term strategies as discussed in this evaluation.

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4.0 Task 3 – Evaluation of UQ’s Strategic Initiatives

This part of the report will focus upon evaluating strategic initiative 1 and whether creating game changing graduates can be enhanced through work integrated learning and student employability program expansion. The success of the initiative for the purpose of this evaluation will be measured through two means;

1. Will the initiative cause an increase in student satisfaction with their UQ student experience and;

2. Whether the initiative will lead to an improvement in the employability of UQ’s graduates.

Based on the research completed for this task, the evaluation would be that workplace integrated learning as an initiative would certainly lead to increased student satisfaction as a result of the experience as well as an improvement in employability so long as the workplace integrated learning is in the field that the student is pursuing. As these are the measures used to gauge success of the strategic long term objective of creating game changing graduates. This evaluation is justified through the findings of a qualitative study from Leanne Carter and Angela Romero of the Business School of Macquarie University in Sydney who looked to

10 address the viability of this initiative from the perspective of student satisfaction and employability skills.

This was done by selecting two sets of students, with one referent group being enrolled in workplace integrated learning (WIL) environments across their final semester through partner organisations associated the Macquarie Universities Professional and Community Engagement (PACE) program. This selection was completed via application and the non WIL group was selected from same cohort of students but from those who chose to not engage in the WIL program and instead continued with traditional classroom based learning. The WIL participating students were third year commerce and marketing students assigned to organisations in their field of study for two-week periods and then each respective group of students were surveyed on their satisfaction versus traditional university learning and belief of increased employability skills acquired. This was done via face to face interviews lasting from 20 to 30 minutes.

Responses from 95% of students who were involved in the WIL program showed that they were more satisfied with this teaching method and would highly recommend this method of delivery over traditional classroom curriculum due to the practicality of the experience rather than the usual learning of theory. Furthermore, through being in the practical environment and learning processes required to complete duties in a real workplace, both groups of

11 subjects were followed up via a survey one year following their graduation to gauge employment amongst each group and findings indicated that the referent group exposed to WIL were 3.7% more likely to be employed in a position related to their field of study within the first year following graduation.

Results of these data points for previous years from students are captured and compiled by a Student Experience Survey (SES) for all higher education institutions in Australia. These are made public via the Quality Indicators for Learning and Teaching (QILT) website. Considering this as a control, we can compare the scores for the two measures previously stated (student satisfaction with student experience and improvement of employability of graduates) and evaluate whether the stated initiative could further enhance the ability of UQ to achieve the long-term objective of creating game changing graduates. Data suggests that student satisfaction for university of Queensland as a whole is 80.9% versus the national average of 79%. In terms of graduate employment levels, the data shows a level of 75.1% for UQ versus 71,9% as a national average. Given that these figures are significantly below the figures stated by the students subjected to the WIL program in the Macquarie University study, we can clearly evaluate that strategic initiative of work integrated learning and student employability program expansions will both assist in achieving the long term objective of game-changing graduates according to the measures of success of the strategy mentioned.

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5.0 Task 4 – Recommendation

Based on the evaluations of this report, I would recommend that the University of Queensland continues its focus upon providing greater autonomy and responsibility to each of the faculties and institutes that make up its structure, while placing an even greater emphasis upon improving its already exemplary ability to attract and retain world class quality educators from both domestic and foreign markets. The analysis and evaluation completed in this report shows clear linkages between the highest quality educators and the subsequent production of more ready to contribute students, graduates and researchers. Seeing as this is of primary importance to the university based on its current strategy, this would be the key recommendation of this report.

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Appendix 1.1: External Environment, Internal Environment, Competitor and VRIN Analysis External Environment Analysis  -Visa requirements for international students becoming more Political / lenient (no criminal record, sufficient English proficiency, financial means) --> Opportunity for greater revenue with Legal increased foreign funds entering country from international students and business. 

Australia viewed as a safer country than most with very little terrorism and political upheaval. --> Opportunity with more immigration and therefore greater domestic expenditure.

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Zuckerberg testimony causing greater focus upon responsible data collection and storage with emphasis on protection from third party users --> Threat.



Scott Morrison and Liberal National Party are voted back against expectation --> Threat/ opportunity. Slowdown in global GDP (China down from 10% in 2011 to 6.6% in 2018, Australia 4.6% in late 2011 to 2.7% YoY in 2018) causing a slowdown in economy and dramatic slowdown in exports which is a large part of Australian economy. --> Threat.

 Economi c 

AUD depreciating against Chinese (5 Yuan to 1 AUD in Jan 18 to 4.8 Yuan to 1 AUD in Dec 18) and US currencies (from 78.6 US cents/ 1 AUD in Jan to ~70 US cents/ 1 AUD in late December) resulting in lower cost for foreign investment and cheaper Australian exports such as education--> Opportunity.



Initiation of US China trade war placing pressure on global economy and restricting trade for partners of each nation (i.e. consider Australian coal processing being held up in china) --> Threat. Consumer confidence falling from reading of 105 to 99 over 2018 implying that Australian consumers are spending less and more concerned with saving --> Threat.

 Sociocultur al 

Focus upon inclusion and acceptance of trans-community with diversity and multiculturalism of primary importance in public eye --> Opportunity.

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Same sex marriage vote and passing in legislation for recognition of marriage --> Opportunity.

14 Technological

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Digital platform technologies increase reach and diffusion of product offerings increasing audience and potential revenues --> Opportunity.

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Increase in machine learning/ automation and artificial intelligence creating greater efficiencies --> Threat/ Opportunity.

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3D printing becoming more prevalent and creating efficiency and standardization of product inputs in many industries. Demand for mastery of this new technology increasing --> Opportunity.



Increase in Australian population trend in 18-25 age brackets (2.7m reported in 2016 increase to 2.78m in 2018). Increased labour force resource for business --> Opportunity.

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High school graduation rates increasing year on year resulting in greater labour pool for workers looking to specialise and increase ability to become skilled workers --> Opportunity.

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Australia operates in the upper quartile for life expectancy against OECD countries (83.5 years) --> Opportunity as more within labour force will look to become specialised workers.

Demographic

Environmental /Physical

Electricity grid beginning to struggle with capital cities moving away from urban sprawl towards higher density housing. Demonstrated through increasing blackouts which threaten digital economy viability--> Threat Climate change activists and rallies becoming more common on advocates gaining more and more airtime on mainstream media --> Opportunity

Corporate soc...