PEST ANALYSIS

1. INTRODUCTION: Understanding any industry/section in detail, PEST Analysis is the principle that knowledge, which is acquired by external and internal environment scanning allows a industry to know their opportunities and threats (forces of change) which are surrounding them considering for competitive advantage. Understanding and analyzing the vital information related to Politics, Economics, Social and Technological data (PEST) on a particular area/sector, industries are better able to adapt their own values, products or services, strategies, position and to build relationships with communities/societies. It is applicable to any industry providing values in terms of product or services in market for their competitive strategy. PEST Analysis provides adaptability to the realities of the new environment by making informed decisions free of unconscious assumptions which mitigate risk in near future. (Manktelow 2005). Also we can extend our analysis by considering PESTLE ANALYSIS, in which we can determine the legal and environmental factors which also affect any industry. 2. PURPOSE: PEST Analysis is a simple and special tool that gives s broader picture of any industry in terms of the political, economic, socio-cultural and technological environment that frames a potential business development in any sector/industry/organization (Manktelow 2005). It shows a policy of framework of macro- environment factors which a industry/sector will need to consider in planning of new project anywhere in the world. It helps in taking decisions that matches positively with the forces of change, as well as gives lights to the critical flaws and the means to avoid failure in the industry (Manktelow 2005). It is one means to enable situational analysis. The number of macro-environmental factors is unlimited in current scenario for any industry. But from all of this, the firm must prioritize and take in consider and evaluate & monitor those factors that really influence its industry. Though, it may be difficult to forecast future scenario with an acceptable level of accuracy. In this regard, the firm may turn to scenario planning techniques to deal with high levels of uncertainty in important macro-environmental variables 3. OVERVIEW OF PEST ANALYSIS FOR MANAGEMENT EDUCATION IN INDIA: Considering management education in India, along political, economical, social, technological but also legal and environmental factors affect this sector. This macro environmental analysis has some positive and negative impact in management education in India. Due to governmental initiatives in education, management education is growing day by day. Social media and technology changes made this sector booming in current market. Legal and economical issues regarding education in India improves quality of this sector affects much. Emerging and revolutionized in current industries demand takes this sector to bring to lifelong and evergreen industry in India. Taking budget 2013 as whole for education sector, education is the major challenge in this country. So its necessary to consider management education a challenge industry in future.

Considering PEST ANALYSIS for management education in India in table form:

POLITCAL FACTORS

A skill required by tutor/teacher is changing day by day. Changes to curriculum of management education with short lead times are very difficult. Requirement to be self managing and self financing is very important foundation of this industry. India and china are maturing markets, allowing innovation to lead the way in professional training and development. The success of Indian business schools is largely due to the government becoming more open to the training and development needs of its people. this is result of : Policy reform Recognition of a wide training gap. The openness of Indias educational environment. Rapid Indian economic development.

More people are turning to education during a recession. MBA programme applicants have gone up according to the Dean of CASS Richard Gillingwater analysis. Interest rates for loans also helps in management education in great demand

ECONOMIC FACTORS

Over provision of business schools places in the area resulting in competition from neighboring business schools. Cost of providing resources related to staffteaching & support, basics- books/papers and technology solutions laptops etc. Ability of parents to raise the funds for optional activities in business school. Governmental subsidies towards management education in India

SOCIAL FACTORS

Schools should give greater considerations to gender and generation types Social networking blogs, facebook, twitter Changes to qualifications expected Diversity of participants becomes ever more important. E.g. London Business School increasing its diverse population from 20 nationalities in 2007/08 to 35 on its recent EMBA programme

TECHNOLOGLOCIAL FACTORS

Advances in technology provide business schools with the opportunity to consider programme delivery online and with remote access. This is still in its infancy but creates opportunities for the future. The technology landscape will create new economies and new breeds of individuals. This will transform lifestyles, working practices and attitudes to training and development. Move from paper based books to e-book readers

ENVIRONMENTAL FACTORS

Reduction of green space available for activities Using a significant amount of paper and photocopier toner to produce printed information. Waste disposal.

BUSINESS DIVERSIFICATION STANDALONE OR CONGLOMERATE

Taking consider todays world in management education in India, many top b schools are having standalone business that is there are giving only management degrees like MBA or PGDM with wider or different specialization. But some other top business schools are also which is having diversified business as they provide management degrees also with engineering degrees, other undergraduate degrees, also in medical and many others. Below is the table taking some salient features of select major private players in higher education: Company Alliance university Amity university Bharatiya Vidya Bhavan Trust Christ university ICFAI Location/main campus Bangalore, Karnataka Noida, NCR Mumbai, Maharashtra Bangalore, Karnataka Hyderabad, AP Model of stream operation Private university Engineering, management, others Private university Diversified Colleges, Engineering, Polytechnics in Management, India and abroad Others Private university diversified Private University, Colleges, Certification programmers Phagwara, Punjab Private University Private Universities, Vocational, Education, Elearning, Overseas Universities Private University Management, Others Est. no of students 2500-3500

>60000 NA

>5000 >10000

Lovely Professional University Manipal Education Group

Phagwara, Punjab Manipal, Karnataka

Diversified

24,000 campus

on-

Engineering, Medicine, Financial Services training, Others Diversified

Over 18,000 on campus, and 100,000 in distance Education >15,000

Symbiosis International University VIT University

Pune, Maharashtra Vellore, Tamil Nadu

Private university

Engineering, Management, Others

>12000

Source: Industry, Anand Rathi Research

Establishment of personal Universities has been a significant milestone within the field of upper education in Asian nation. Along with this diversified education stream comes in picture in top management business schools. Along with management education they provide other stream of education like engg, mba, medical and others education. Personal Universities could be a new thought wherever self supported personal universities are often established by personal players while not money help from the State. variety of personal universities are established in numerous States as additionally Central Govt of Asian nation has granted Deemed University standing to variety of instructional establishments. during this era of easing and world education, it's related to draw in, encourage and promote the personal sector investment within the realm of upper Education and lay the legislative pathway to determine and incorporate personal self-financing Universities in Asian nation. Its the proper time to develop and implement a progressive framework that has for opportunities to worthy personal establishments and academic promoters, with relevant and sufficient expertise and exposure within the field of upper education, thus on contribute towards the growth of upper education and analysis. Mutualism could be a personal, un-aided establishment and has contributed vastly to the upper education sector of Asian nation. Mutualism was based by the visionary specialist, Padma Shree Dr. S. B. Mujumdar in 1971 as a home aloof from home for college kids returning to Pune, Asian nation in pursuit of upper education. Mutualism is these days a family of over thirty six establishments providing education from preschool to Post Graduation. Mutualism has over twenty five, 000 students on-campus and over two hundred, 000 students following distance teaching programs. This idea note is a trial to help you in your endeavor to effectively formulate a broad statutory mechanism to determine and regulate the functioning of personal universities in our state considering below the present UGC rules.