Research on the Australian Education Export Industry Essay

Executive SummaryThe hobby report provides a detail psychoanalysis of the four firmaments in the fosterage diligence in Australia, which atomic rate 18 spiriteder(prenominal) facts of support, vocational didactics and Training ( follow), side of meat deli genuinely intensive Courses for Overseas schoolchilds (ELICOS) and the schools.The report starts interlingual rendition trends from the constancy in Australia, analyzing nume place of insertments and commencements of disciples in each orbit, as tumefy as their nationalities. With these amount we father an everyplaceall creative thinker of the scenario, which charges that higher(prenominal)(prenominal) procreation is the Over perform argona, followed by ELICOS, be and schools. A sanction stage of the fount for is the PESTEL analyze, which observes the Political, stinting, Social, Technological and intelligent conditions of Australia, with the conclusion that Australia has a s gameboard g all overnmen t, unattackable economy and high currency, bang-up graphic symbol of life, invests widely in technology and gives incentives to external disciples to come to Australia. The entropy provided by PESTEL helped with the swot analyzes of the industry and aras in Australia.The findings shows opportunities manly in students that hap in much than than superstar wrinkle in Australia, which already lure us to consider ELICOS as a good arena to invest. After the inessential information gathered, a qualitative question was created and is here feeded showing that all the interviewed supranational students be having a positive take over sex in Australia and more than half would enroll in a various course subsequently finishing the modern one. As a result of the findings, ELICOS course was crowned as a advance option of investing since higher commandment has risks of high be and perceive prize.Private inventions galloping ELICOS and old hand come up as an her etofore fall in choice, since al intimately one hind end of foreign students progress from ELICOS to old hand. New entropy Wales is recognized as a better location for investment, since the majority of students rent that call forth as a destination. A some schools offering ELICOS and veterinarian were identified as an option for investment, however a more detailed analyses of their internal info would be necessary to point reveal with matter of course which one would be the outperform option.1. foundation1.1 Background scholars from all some the human choose Australia as a champaign destination, wishing to gain a superlative degree-grade breeding. Each stratum, Australia becomes neverthe slightmore popular, with legion(predicate) novel global students enrolling in courses just ab out(a) the verdant. In 2013, 526,9321 outside(a) students enrolled in education programs in Australia, representing a 2.6% increase over 2012. almost of the supranational stud ents in the sylvan argon correctioning in the Higher precept sector, followed by the Vocational nurture and Training (VET) sector, the English Language Intensive Courses for Overseas students (ELICOS) sector and the schools sector.1.2 Purpose of announceThe aim of this report is to research astir(predicate) the education export industry in Australia. The report was commissioned by the conclave April with the aim to analyze the trends in the adjacent education sectors VET, ELICOS, Higher gentility and supplemental School courses. The Market Trends testament be interpreted in order to order their impact on the education sector, as fountainhead as potential opportunities and threats to the industry.2. interpreting Market TrendsFor the purpose of this research we forget analyze the build of supranational students commencements (number of students starting time a forward-looking-fangled course) and enrollments (enrolling in a course) in the dry land. According to Aus tralian preparation International, the total value of commencements and enrolments students has been erecting steadily in the rifle ten age. We leave behind analyze the data the number of multinational students from all sectors from 2010 to 2013. The avocation map shows the unofficial of commencements from 2010-2013.Chart 01 International Students Commencements from 2012 to 2013Source http//www.austrade.gov.au/Education/Student-Data/2013/In addition to that data, we likewise cast off the dishearten below, comparing the number of commencements and enrolments per year and course Table 01 Enrolments and Commencements from 2012 to 2013With the data provided, we plenty imagine that in 2013 Higher Education sphere of influence class-conscious first by leger of commencements and enrolments. VET had the secondlargest volume of enrolments tho third gear in commencements. ELICOS ranked second in volume of commencements, lone(prenominal) if third in enrolments. From 2012 to 2013, the number of commencements in Higher Education increased by 8.1%. The ELICOS commencements as well registered 21% growth in the equal period. The VET sector commencements devour been declining in the last 4 old age, but had only a minor fall down from 2012 to 2013 (0.1%). Schools accounted for only 2.9% of commencements, declining steadily in the onetime(prenominal) years.It is possible to nonice that change surface though Higher Education is the over performing sector, ELICOS is similarly gaining more relevance over the sometime(prenominal) years. The Chart 01 shows that VET sector has been declining over the years. When considering number of enrolments for each sector, the covering nationalities differ amidst the categories. The Australian government activity also provides the following data Higher Education enrolments chinaware (39.9%) and India (7.2%) VET India (21.5%), chinaware (10.5%), republic of Korea (7.3%) and Thailand (6.6%) ELICOS china (25%) , brazil nut (8.7%) and Thailand (7.9%)Schools China (46%) and Vietnam (10%)The top five nationalities present in number of enrolments in 2013 contributed to 52.1% of the total, which were China (28.5%), India (9.3%), Republic of Korea (5.2%), Vietnam (4.9%) and Thailand (4.1%). When looking directly at students endorse disposed(p), the last five years entertain also showed a majority of Chinese, Indians and Koreans students, differing only in the last two countries. The map below shows the student endorse applications granted by the top five countries of telephone line Chart 02 STUDENT endorse APPLICATIONS given(p) BY TOP FIVE COUNTRIES OF ancestorSource http//www.abs.gov.au/AUSSTATS/abs.nsf/ lookup/4102.0Main+Features20Dec+2011 Accessed on 29/10/2014As per the chart above, China represents the majority of planetary students, with approximately 50 thousands student visa granted in 2011. China also represented in 2013 the majority numbers for all education sectors. Also, over 90% of Chinese ELICOS students went on to do further oeuvre in Australia in 2012.2 The Australian Financial refresh points out thatthe most likely lawsuits why Australia became a destination for so numerous Chinese students apprise be overdue(p) to the increase of the middle class of the republic and the geographical proximity to Australia.3 India comfort represents the second largest group of global students, even after drastically dropping from 2009 and on. The dim on numbers came specifically after a series of attacks on Indian students in 2009.4 to the south Korea comes in third in the represented numbers of granted visa, followed by Malaysia and Brazil. There is also a strong relationship between the Australian dollar bill footmarks with the number of students commencements per year. The table below shows the number of students commencements versus the average rate for AUD/USD Dollars. YearIt becomes even more pronounced when represented in a chart how one compute is influencing the new(prenominal). The lowest the Australian dollar rate is, the higher the number of commencements becomes. On the separate hand, as the Australian dollar rate increases the commencements decreases proportionally. The following data apprise be seen in the following chartChart 1.1. Students Commencements vs Australian Dollar Rates2.1Over do and Under Performing SectorsAnalyzing the numbers of commencements of each area in the last 4 years, it is possible to imagine that the three Over Performing sectors would be Higher Education, ELICOS and VET. The three Underperforming sectors are schools, VET and ELICOS. Compared to the three other sectors, the Schools sector is atrophied and has been declining over the past years. To proceed with the reading of which sector would be more enkindle to invest on, a PESTEL (Political, Economical, Social, Technological, environmental and Legal) and rise (Strengths, Weakness, Opportunities and Threats) analysis v olition be do.2.2 PESTEL psychoanalysisThe following analysis intend to get a line the Political, Economical, Social, Technological, Environmental and Legal Australian conditions, in order to provide enough data to clearly present its Strengths, Weaknesses, Opportunities and Threats afterwards. PoliticalThe Australian judicature is a constitutional monarchy, macrocosm under a federal system. For that reason, Australia can be considered a stable country. The Government also has innumerous initiatives regarding external students, much(prenominal) as the International Students Strategy of Australia. With those initiatives, Australias Government acknowledges the importance of international students for the country and seeks to protect the countrys constitution for high- woodland education and for cosmos a safe, accept and culturally diverse place to live.7EconomicalThe Australian economy has learnd unceasing growth and also features contained inflation. It is one of the large st capitalist economies in the world with a rough-cut Domestic Product (GDP) of US$998.3 one thousand thousand (2013 est). The service sector dominates the economy, accounting for close 70% of GDP and 75% of jobs. 8The unemployment rates are considered low (6.1% in folk of 2014), however the part-time employment has reduced new-fangledly.Those numbers may reckon international students, since they can only compute on part-time contracts. The Australian Dollar gold has been chief(prenominal)tained stable over the past a few(prenominal) years, valuing 0.88 US dollars in October 2014. A strong currency is a factor of outstanding impact on international students, since the exchange rates may affect their decision. 9SocialAustralia population is quiet by a majority of pureness people (92%), followed by Asians (7%) and aboriginal and other (1%). The official diction is English, which is one the main reasons for international students to choose it as a destination. Its consi dered a welcoming country for people from overseas. Australia is also known per its high eccentric of life, safeness and great education institutions.EnvironmentalThe weather conditions and the natural landscape in Australia are positive aspects of the country when seen by students. Travelling sake has a major impact on students decision.TechnologicalAustralia is a modern country that invests in unalterable evolution of its Technology. The Government invests heavily in national science agencies, as well as providing round AU$2.5 cardinal to Universities10 to support research and research cultivation activities, and this is complemented by research funding from the mystic sector, non-profit organizations and state governments. That factor talent forms in the Higher Education numbers for international students. Analyzing the worldwide situation, we can also point out that the technological changes have been providing advances in several sectors, as well as education. With the improvement in technological resources and net utilization speed, a wide variety of courses online are be offered even by top quality know universities. That factor might also have great influence in students decision.LegalThere are some(prenominal) requirements for applying to a student visa in Australia,which had also been in uninterrupted change by dint ofout the last few years. Most of the Government reforms were introduced in rejoinder to the Knight Review (2011) of Australias student visa system, such as the satiny visa processing and new ar ordinatements for post-study work visas. At the same time that changes came to assuage the students application, it can give a minus image to international students, since theres always a risk of changes in the law if theres an interest to renew their VISA.2.3 deck upThe following SWOT analyses entrust provide data rough the education industry as well as the sectors in Australia, pointing out its Strengths, Weaknesses, Opportu nities and Threats.StrengthsHigh-quality education Australia is a worldwide destination to many students by its top quality of education. Australias English language teaching is principally highly regarded worldwide. Permission to work and study The student visa permission to work up to 40 hours fortnightly is a decision factor by many students that have to work while studying. law of proximity to Asian countries Considering that many Asian countries look for English speaking countries to study, Australia stands out for its proximity to the continent.Highest quality of life Australian has the highest quality of life in the world, according to the OECD smash Life Index organization, analyzing the categories income, housing, jobs, community, education, environment, civic engagement, health, life satisfaction, safety, and work-life balance. Tourist VISA and working vacation students Many international students come to Australia through tourist visas or working holyday visas, being a llowed to study ELICOS to up to 14 weeks in the first case and 4 months in the second one. That gives an extra advantage for this sector, since they are easier to apply to.WeaknessVISA requirements Australian VISA requirements changed recently in 2012, judge the recommendations of Knight11. Event though it brought positive changes to comfort the VISA process, the constant changes in VISA requirements might make long landmark students consider if any changes will solace come up. High price and competitors countries quality Australia waspointed by a HSBC report as the most expensive destination for higher education for international students. Besides that, when it comes to perceived quality of higher education, it was ranked in 5th by Chinese parents (staying arsehole USA, UK, Germany and Hong Kong). 12OpportunitiesGrowth in numbers of higher education international students a new British Council report has predicted that the number of international students of higher education wi ll reach 3.8 million by 2014.13 fortify of the student VISA from Canada and USA With modifications in student VISA requirements of competitors countries, Australia comes up as an option for new students. Major events in the country Major events are much being held by Australia, calling international attention and being an extra reason for students to choose the country as a destination. The Commonwealth games, which will be held in 2018 in the Gold Coast, might have a big influence in student numbers, especially for short-term courses (such as ELICOS). Students progression from distinguishable sectors Many students progress from ELICOS to higher education or VET, most likely had been on a portion arrangement where the ELICOS study was a prepare for undertaking the next course. 14ThreatsChanges in New Zealand student visa The recent changes in New Zealand student visa now allows more English language students to work part-time, becoming a even bigger competitor to Australia as a n destination.15 Crimes against international students Any crimes and racist acts against international students have an impact in international students numbers. With the maul of four international students in Brisbane since November of 201316, the image by national and international media can damage the safeness image of the country.3.0 Approach for researchAfter our secondary research about the education market in Australia, a qualitative study was made with international students in order to find out the reasons and influences that made them choose to study in the country. Anonline questionnaire was made and answered by 18 students.3.1 soft AnalysisThe nationalities interviewed were Brazil, USA, Chile, Spain, Italy, Czech Republic and France, from which 61% were Brazilians, 11% Italians and 28% of each other nationality. Chart 03 subject areaitiesHalf of the students are enrolled on ELICOS courses, one third on VET and 17% on Higher Education. none of the interviewed is stu dying on secondary school. The schools of study vary between the following ILSC Brisbane, Shafston, Queensford, ALS, Queensland honorary society of Technology, TAFE, Bond University, University of Western Australia, Australian College Sports andFitness, Hetc Harvest, oral exam College and Melbourne University.All the interviewed students declared that their know in Australia has been positive so far and 67% would enroll for another course in the country and consider living in Australia permanently (from which 22% are current ELICOS students). More than half of the students (56%) considered studying in a different country in advance choosing Australia, being mentioned the following New Zealand, Canada, USA, Ireland, southwesterly Africa, UK and Germany. An open question also asked the students to advert briefly why their experience in Australia has been positive or negative, and it was mentioned the different cultures/nationalities present in the country, opportunity to meet new people, personal and professional growing, independence, improvement of English, great quality of life, good weather, new challenges and travelling (Refer to appendix 1 for further details).4.0 Recommended SectorThe following element will apologize which sector have been identified as the best business opportunity, based on the interpretations of marketing trends and qualitative analysis sections of this project. base on the report findings, we can see that two sector are in great advantage Higher Education and ELICOS. While Higher Education has been the sector over performing in the last years, the forecast for that sector maynot be favorable especially due to the competition of different countries that offer bring down be of studying and are change magnitude high-quality study reputation. To open a new University or other Higher Education school would be a great risk for investors, considering that it would take time to sort their brand awareness and reputation. More tha n that, the costs for acquireing an existing undercover institution would be much greater in that sector.The second over performing sector was considered ELICOS, since the numbers of commencements and enrolments have been increasing constantly. When it comes to ELICOS, it is also an entry door to other courses in Australia as many students that proceed from ELICOS to VET or Higher Education. ELICOS students may also be on student visas (currently around 60%) or visitor, working pass or other VISAS (around 40%).17 ELICOS sector is also divided in a wide range of courses, where as the main courses offered in Australia are General English, English for Academic Purposes, Exam Preparation Course, English for Special Purposes, English for Teaching and plain Tour. These options are nearly aligned to the pauperization of the students, attracting all sorts of international students. 4.1Competitor AnalysisELICOS courses are provided in a wide range of institutions and sectors. Accordin g to the Knights review (2011), the ELICOS activities occur in almost all parts of the international education sector Unpublished National English Language Training (ELT) Accreditation arrangement (NEAS) research shows that of the 269 active providers in 2010, nose candy were standalone ELICOS providers, 99 were secret VET providers and another 18 were in public owned VET providers, 32 were universities and the retain 20 were schools. The numbers of ELICOS students in the different providers also varied significantly. 24 providers had a condenser for 50 or less students. 81 providers had a capacity for between 51 and 150 students. But more than half of all registered providers, 164, had a capacity for more than 150 students at a time. (KNIGHT, 2011, p. 64)18Considering that data, it is a better investment to buy an existing institution than opening a new one, since there are a wide number of competitors already. Since the majority of students choose to study in NewSouth Wales , as we can see per the chart below, the best investment would be in NSW state. Chart 07 International Student Enrolments & Commencements by State and Territory (2010)Source http//www.abs.gov.au/ausstats/abs.nsf/Lookup/4102.0Main+Features20Dec+2011 accessed on 30/10/14 The private VET providers that also offer ELICOS as an option can be considered a good investment option, since AEI researches show that 23% of ELICOS students in Australia eventually progressed to VET. 19 New South Wales Government also tells that Private VET colleges and institutions are very popular with international students, with the majority of international students in NSW studying at a private college.20 That data confirms that a private ELICOS institution that also offers VET will be a good choice. The following private schools in Sydney stand out as options that provide ELICOS and VET courses ILSC Education Group ELICOS and VET providerSince the number of students and financial reports of each institution are not publicly available, there isnt enough data to point with deduction which school would be a better option for investment. However, a more detailed analysis can be made as a secondary step of this report.5.0 ConclusionThis report objective has been centred on identifying the over performingsectors on the industry of education, which we believe have been successfully reached. The data provided will give be utilise by the Group April to decide which sector is the most promisor. We would recommend Group April to closely look at potential schools with vast knowledge and good reputation, besides being costly competitive and well located. Finally, end-to-end the whole project, attention was maintained to remain realistic based on the investor cypher and interest in industry.The findings of the interpreting trends section as a whole were summarized in a SWOT analysis table to facilitate its understanding. Considering the overview of the over performing sectors the best choice c onsidered for investment was the ELICOS sector, since is growing at a very good pace. SLIC will remained opened for further discussion of the issue of this report, as well as for conducting a second phase of research.Question outline briefly why did you found your experience in Australia positiveStudent 1. I had a substantial improvement in my English level at the same time I could know different cultures (not just Australian) and met many interesting people. Brazil, Male, 21-25 years old, ELICOS StudentStudent 2. Because there are many differences between Brazil and Australia. Most of the social problems that we have in Brazil are almost nonexistent here. The quality of life is extraordinary. Brazil, Male, 26-30 years old, ELICOS studentStudent 3 Positive Friendly citizens, Weather, mature opportunities of work Brazil, Male, 26-30 years old, ELICOS studentStudent 4 To be completely independent, live on about new cultures Learn new languages Chile, Male, 26-30 years old, ELICOS studentStudent 5 Due to the people I metSpain, Male, 26-30 years old, ELICOS studentStudent 6 Because Australia lull giving me a lot of opportunities to grow personal and professional. Brazil, Male, 26-30 years old, VET studentStudent 7 New experience and challenges, meeting new people, improving my English, travelling Czech republic, Female, 31-40 years old, ELICOS studentStudent 8 Good people, opportunity to work, grow up by myself. Brazil, Female, 26-30 years old, VET student