Institute for Continuing & TESOL Education, University of Queensland School for International Training Cambridge ESOL

Transcription

1 Institute for Continuing & TESOL Education, University of Queensland School for International Training Cambridge ESOL International Diploma in Language Teaching Management Centre: Module No. & Name: Name: Assignment Title: No of separate documents: Document length: Date Submitted:

2 1.0 Executive Summary There exists a market within the EF intensive course suite for a Cambridge English Young Learners (YLE) test preparation course. Recent internal market research shows 72% of parents surveyed would be interested. Also, past success and viability of the Trinity test preparation course provides additional support for such a course. EF has 69% of its current Kids and Teens student population eligible to take these tests and as it already has the infrastructure to support such a venture it is well placed to capitalise on this need. The following costed proposal details a preparation course for the YLE test suite. This will allow EF to expand its product portfolio to attract new markets and retain its existing market share. There are future opportunities and benefits with this course, such as delivering it at other EF schools and seasonal intensive periods, bundling the course with the YLE testing components and also building a closer collaboration with Cambridge through becoming an accredited internal authorised test center. However, this costed proposal will focus exclusively on the development and implementation of this course in one EF Kids and Teens school in Beijing. Considering that EF already has the infrastructure, systems, markets, knowledge, experience and skills required to run his course the start-up costs amount to 5500 RMB. Cambridge has extensive preparation material available for students, parents and teachers that can help course development and delivery. A projected 5-month preparation period is required for the course and a delivery date scheduled for July Below is a summary of the key financial benefits of the course and further details are outlined in the budget and appendices. Budget Summary Total revenue per course Total course expenses NET profit % Margin 50% 76,800 RMB 38,570 RMB 38,230 RMB Break-even point 8 students 1.1 Needs Assessment There is no better proof of success in language learning for parents and students in China than obtaining a recognised language qualification. Many students find or even require a language certificate to give them access to a range of new educational opportunities. EF should look at further test preparation courses to be used during seasonal periods that connect with its own core functional syllabus products. Based on recent internal market research (see Appendix A), 72% of parents would be interested in a test preparation course for the YLE tests Starters, Movers and Flyers. In addition, this is a way EF can 1 P a g e M a n a g i n g F i n a n c i a l R e s o u r c e s

3 certify its CEFR aligned courses and establish a gateway to future English exams for its students. This course would deliver an additional revenue stream to EF s seasonal intensives, broaden its portfolio offering and provide new opportunities and potential customers. Evaluation of the suitability for Kids and Teens to venture into this course has been presented in the below SWOT analysis 2 P a g e M a n a g i n g F i n a n c i a l R e s o u r c e s

4 1.2 Proposal To implement a 3-week YLE test preparation course for students at primary and lowersecondary school (5-12 yrs. of age) during seasonal intensives in one Kids and Teens school by July Below is a summary of the key elements of the course: Course Summary Title Length Course Provision Number of Students Number of teachers Materials Location Availability Pre-requisites Course Fee Cambridge English Young Learners (YLE) test preparation course 3 weeks (12 days total), 4 ACH per day x 4 times a week = 48 ACH total contact hours (Note: 1 ACH = 40-minutes) 1 course per exam (Starters, Movers and Flyers) Max 12 per course Experienced International and Local Teacher YLE test preparation material 1 Kids and Teens school in Beijing To current and potential students All students must have completed the Cambridge English Young Learners placement test prior to the course 6,200 RMB (130 RMB/ACH) in line with existing course pricing (see Appendix B for competitor pricing analysis) 1.3 Scope of Work Plan and Timeline The key non-financial details of the proposal are listed below: Scope of Work Research Cambridge English Young Learners tests Course materials preparation Marketing Have a comprehensive understanding of the test suite including levels, requirements, grading criteria, procedure, teacher materials and supporting documentation available Collate all YLE test material including student and teaching support and develop an EF course specific outline to fit with school production (e.g. Lesson focus, assessment and parental communication) Develop and release marketing materials in line with other seasonal intensive courses (e.g. website, brochure, flyers, posters, standees, WeChat and other social media sites 3 P a g e M a n a g i n g F i n a n c i a l R e s o u r c e s

5 Staff Evaluation of course Deliver course Facilities Stakeholders Time Frame Appoint a project team and train the selected teachers on the course. The lead teacher of the course will complete the 'How to teach Cambridge English: Young Learners' course and support training of other teachers Course to be evaluated by (1) NET profit (2) Students success rate on achieving YLE award shields and (3) Parent feedback via a course survey on satisfaction and likelihood to recommend the course Deliver course according to the course outline and ensure constant monitoring through Director of Studies and Lead Teacher observations Ensure classroom availability during summer intensive to run the course Beijing General Manager, Production Director, Regional Director, Centre Director, Director of Studies, Sales Team, Service Team, Teachers, EF Labs, Odin+ Team and Parents and Students An estimated 4-5 months will be needed for this course. Time frame includes preparation, material collation, development, course outline, marketing and delivery of the course 4 P a g e M a n a g i n g F i n a n c i a l R e s o u r c e s

6 Here is a Gantt chart of project scope and timeframe Owner Begin Date End date Description Appoint a project team Project Manager 01st Mar 08th Mar Research Cambridge English Young Learners tests Project Team 09th Mar 05th Apr Course materials collation, preparation and design of EF course specific outl Project Team 06th Apr 31st May Market the course (in line with summer intensive sales and marketing literatu Marketing 18th May 12th July Facilities (schedule classroom) Director of Studies 18th May 24th May Training and preparation Lead Teacher 22nd Jun 19th Jul Course delivery and monitoring Director of Studies 20th Jul 09th Aug Evaluation of the course Project Team 10th Aug 06th Sept Status Meeting / Update with Key Stakeholders Project Manager 07th Sept 13th Sept March April May June July August September Key Project Milestone 1.4 Evaluation Plan There will be continuous monitoring of the project to ensure successful implementation and completion. The main methods involved include: What How By whom Period Monitoring 1 Monitor, assess, track and review progress in the project by highlighting parallel actions, sequential actions, decision points and report periods in the project timeline. Gantt chart Project Manager Project Team 01 st Mar 13 th Sept 2015 Monitoring 2 Ensure standards of delivery and implementation of the course. Observations Lead Teacher Director of Studies 20 th Jul 09 th Aug P a g e M a n a g i n g F i n a n c i a l R e s o u r c e s

7 The success of the course will be evaluated by three key measures shown in the table below: What How Goal By whom By when Outcome evaluation the outcome of the course Compare the actual NET profit of the course against the projected costed proposal in the profit and loss statement Profit and Loss Statement (NET profit) <=15% deviance from projected % profit margin Project Manger 06 th Sep 2015 Students attainment of Cambridge English Young Learner shields Test results 12=> Cambridge shields on examination Project Team 06 th Sep 2015 Feedback from parents on their overall satisfaction of the course and if they d recommend the course to their friends Survey Net Promoter Score => 70% Project Team 06 th Sep P a g e M a n a g i n g F i n a n c i a l R e s o u r c e s

8 1.5 Budget Here is the projected financial performance showing the revenue and expenditure for the duration of the course period (refer to Appendix C for a detailed breakdown through a profit and loss statement) Projections Operating Revenue Tuition Fee = 6,200 RMB per course (12 classes x 4 ACH = 48 ACH) Materials Fee = 200 RMB per student Projections Operating Expenditure Direct costs Teacher salary calculated at a total of 72 academic hours per course (including training, preparation and 90 RMB per academic hour. Lead teacher allocated 24 hours total for the course as support, training (includes 10 hours completing the YLE training course) and 100 RMB per hour Course 150 RMB per student Start-up costs include: Teacher s 200 RMB per school Audio 250 RMB per school Cambridge English Young Learners Training 250 RMB per school Course research and 3000 RMB per school Indirect costs Support salaries calculated at a percentage of monthly salary per group Director of Studies at 2% = 400 RMB per course Progress Advisor at 2% = 90 RMB per course Cashier at 2% = 80 RMB per course Other salary costs calculated at 20% of total cost of salaries Payroll tax and insurance at 20% = 1890 RMB per course Other overhead costs calculated using the operating ratio (total school monthly cost divided by the number of school groups) and divided by 4 weeks to calculate a weekly cost. This is then multiplied by the length of the course (3 weeks). This is divided further by number of students per group. A complete weekly cost per student = 1811 RMB and includes the following overheads: Classroom supplies and equipment Teacher Resources Copying/Printing (including rental fee) 7 P a g e M a n a g i n g F i n a n c i a l R e s o u r c e s

9 Promotional materials Utilities (electricity and gas) Telephone and Internet Maintenance and Cleaning Rent Institutional Support (calculated at an assumed 35% of course revenue) Break-even Analysis The costed proposal has calculated that the fixed costs add up to 36,770 RMB. The variable costs associated with delivering the course have been calculated to be 1,800 RMB. The course is priced at 6,400 RMB (including materials fee). Therefore, based on the projected figures, the course requires 8 students enrolled to break-even and make it viable (see break-even graph below). This results in a 50% profit margin for the course. 1.6 Conclusion Based on the evidence outlined in this proposal, I would highly recommend implementing the 3-week YLE test preparation course at one of the EF Kids and Teen schools. The data provided highlights the financial viability of the course and demonstrates how the course can fit into the seasonal intensive courses that EF provides and extend on its existing 8 P a g e M a n a g i n g F i n a n c i a l R e s o u r c e s

10 course suite offering. There are also future opportunities to extend to other EF schools and seasonal intensive periods based on its success in achieving <=15% deviance from projected % profit margin, students achieving 12+> Cambridge shields on examinations and a net promoter score (NPS) => 70%. In addition, there are opportunities to develop this program to generate further contributions to the corporate margin through bundling the course and testing components and becoming a recognised internal authorised exam center for the YLE tests. This will provide further ties with the Cambridge brand and facilitate accreditation of EF s existing core products. 9 P a g e M a n a g i n g F i n a n c i a l R e s o u r c e s

11 Bibliography Brookson, S. (2000) Managing Budgets. New York: Dorling Kindersley Press Barr, M.J. (2002) Academic Administrator s Guide to Budgets and Financial Management. San Francisco: Jossey-Bass. Crooks, T. (1996) Budget Planning: An Approach for ELT Managers. ELT Management Number 21 GOV.UK (2014) Write a Business Plan. [Online] Available from: [Accessed: 04 th February 2015] Ward, S. (2015) Business Plan Outline. [Online] Available from: [Accessed: 08 th February 2015] Ward, S. (2015) Why You Need to Write a Business Plan. [Online] Available from: [Accessed: 08 th February 2015] White, R. et al. (2008) From Teacher to Manager. Managing Language Teaching Organizations. Cambridge: University Press. Zahorsky, D. (2015) Critical Steps to Writing a Business Plan. [Online] Available from: [Accessed: 11 th February 2015] 10 P a g e M a n a g i n g F i n a n c i a l R e s o u r c e s

12 Appendices Appendix A Survey conducted with parents of children aged between 5-12 yrs. at an EF school (Total - 93 responses) Figure 1.1 Shows their child s study goal Figure 1.2 Shows interest in a Cambridge English Young Learners test course 11 P a g e M a n a g i n g F i n a n c i a l R e s o u r c e s

13 Appendix B Competitor pricing analysis for Beijing (generated 05 th January 2015) Name Come from Logo Price Per ACH # of schools 1 Best Learning USA 150 RMB/ per ACH 10 2 Hampson English China 70 RMB/ per ACH 5 3 MaxEn education China 110 RMB/ per ACH 4 4 Disney USA 130 RMB / per ACH 8 5 E-PUS China 150 RMB/ per ACH 12 6 LILY English China 100 RMB / per ACH 16 7 first leap China 100 RMB/ per ACH 16 8 rise China 200 RMB/ per ACH P a g e M a n a g i n g F i n a n c i a l R e s o u r c e s

14 Appendix C Projected profit and loss statement for course period Projected Profit and Loss Statement for course period Account Line Gross Revenue Total in CNY Per student cost # of SS Per Class Total Per Class # of Groups 01 Individual Tuition Fee per course group Materials Fee Total Revenue Direct Expenditure Total Direct Salaries Hourly Cost # of Hours Total Per Class # of Groups 04 Lead Teacher (training and support) Full time Teacher Full time Teacher (preparation and planning) Training Total 8880 Indirect Expenditure Total Indirect Salaries Monthly salary % per class Total per class # of classes 09 Director of Studies 20, Progress Advisor Cashier Total 570 Other % Total 13 Payroll tax and insurance Total Total Salaries Other Direct Expenditure Unit of measure Unit cost # of units Total 16 Course Book per student Start Up Costs 17 Teacher's Book per school Audio CD per school Cambridge Young Learners Training Course per school Course research and development per school Total 5500 Other Indirect Expenditure Monthly cost Weekly Cost / student Total 22 Classroom supplies and equipment Teacher Resources Copying/Printing (including rental fee ) Promotional materials Utilities (electricity and gas ) Telephone and Internet Maintainence and Cleaning Rent Institutional Support Total Total Expenditure Total Revenue Total Expenses NET % Margin Fixed costs Unit revenue or price/unit Unit variable cost Break-even point in units 8 13 P a g e M a n a g i n g F i n a n c i a l R e s o u r c e s