Project Report on

Premier Ventures Strategic Management

Introduction:
Premier Ventures Limited is a mid-sized Venture Capital Firm, which is planning to start an
MBA Program specialized in Entrepreneurship. The entire course structure is designed &
operated by Premier Ventures Limited itself. Premier Ventures Limited tries to apply backward
integration of both the Venture Capitalists as well as the B-schools (Educational Industry) and
this is entirely new to the globe.
The MBA program is entirely designed to the students who wish to pursue some course which
can help them enhance their skills in entrepreneurship. So that after the completion of the
program, the students can directly start their own companies or even work with the companies
that are associated with Premier Ventures Limited. This ensures their placement as they offer a
bond of about 5 years as well as the fundamental problem of any budding entrepreneur i.e.,
funding.
This project further walkthrough various concepts of strategic management and tries to
understand the consequences of backward integration. Also this project deals with the feasibility
factors of the educational program in the market based on the current trends.

Program Details:
Name of the School: Premier School of Entrepreneurship
Course: PGP, 17month fully residential program
Intake: 120 per annum
Location: Bombay
Reduce Strategic Gap:
The basic reason to start this type of program is to reduce the strategic gap that exists in the
current market between the requirements of Venture Capitalists and the quality of entrepreneurs.
Hence Premier has come up with the concept of backward integration of Premier Venture
capitalists to MBA Program. This provides funding opportunities to students passed out of the
program right away.

Business Model:
Key Partners:

Other Venture Capital Firms

Banks
Entrepreneurial skill building institutions

Upcoming start-up companies

Key Activities

Handpicking upcoming/passionate entrepreneurs to provide them with the required

training and formal education to implement their business plan.
Engineering the students to procure funds.
Providing all round education in marketing, finance, operations and marketing.
Safeguarding the business plan of the students from counterfeiting

Key Resources

Collaborative learning, techniques for discussion, reciprocal teaching, problem solving,

graphic information organizers, writing
Academic Accommodation for Students with Disabilities
Academic Freedom & Freedom of Expression
Crime Awareness and Campus Security
Drug and Alcohol Use
Elder and Dependent Adult Abuse
Prohibition of Harassment
Service Animals
Smoking Regulation
Student Records, Release, Correction and Challenge
Students Rights & Responsibilities and Administrative Due Process
Students Right to Know
Complaint Process

Value Propositions

Unique combination of Entrepreneurship training and Formal MBA education.

Eye for Opportunity
Premier , we embed the issues into the classroom, create top-flight research centers that
produce state-of-the-art knowledge about important topics, and then become the venue in
which the expertise is translated for the public.
$35 Million Concourse Project Interlinks NYU and Premier B School
Develop Loyalty towards Premeir as a brand and their by decrease attrition rate.

Customer Relationships
Social Customer Relationship: Facebook, Twitter, Youtube, Google+
Two stages of establishing CRM for the program are as below:

Automated CRM System in order to reduce response time and increase Accuracy
Automated Ticket reviewed by Human Resource

Promotional Channels:

Flyers
Banners
Online/Offline Social Media
Email
Newspapers

Customer Segments

MBA STUDENTS
Working Professionals
Cities Selected are a blend of metros & Tier 1 and Tier 2 Cities, Hence we have a Perfect
Mix and Variety in our target audience (MBA Colleges, Tier I Undergrad Colleges)
If this approach proves to be successful, we can expand our target market to other towns
and further includes students from cross functional backgrounds.

Potential Issues

Risk of having too high expectations within some teams/team members

Challenge to manage teams with a big diversity.One needs to have a clear follow up
strategy
Premeir will insist individuals pursuing MBA to execute a 5 year bond as per the pre
discussion with the ideator.

Cost Structure:

Revenue Streams

For Everybody, Premeir Charges Rs. 23 Lakhs for MBA Programme Tution, Room, and
Board, even though it spends Rs. 37 lakhs Per Student.
43% of the balance fees of Premeir Students is received from Corporate Funding every
financial year
Premeir Venture Capital Firm invests the rest to reserve rights of the B-Plans of the
students as per terms and conditions.
Few Special Cases are also encountered every year.

Porters Generic Strategies:

Low Cost Focus:
The MBA Program offered by Premier is framed to reduce the failure of start-ups founded.
Hence Venture Capitalists themselves guide the entire alumni in understanding the risks of
starting new companies, formulating strategies that cater to maximum success of the firms,
Industry understanding though the help of expert faculty & associated members. The prime focus
of this program is to nurture the talent of entrepreneurs and make them part of their Venture
Capital firm to ensure maximum success rate in the Start-ups they fund. This helps the
stakeholders of Premier to focus only on their interested industries, existing companies
associated with Premier along with the match of the students backdrops and goals.
Differentiation Focus:
This program stands out with the existing competitors due to various differentiating factors viz.,

Entire Course focus is on Concepts of Entrepreneurship

Opportunities to the students to become Entrepreneurs right after the course;
Funding from the venture capitalists of the Premier directly to their companies;
Bond of five years to work for the companies and help them in launching IPOs;
Experts from the Venture Capitalists industry in the mentoring of the program;
Network access to Venture Capitalists, Industry Experts, Alumni Association for life;
Challenging environment with extreme focus on real-time scenarios, live projects

STP Analysis:
The STP analysis of the Premier Ventures Limited MBA program is as below:
Segmentation:
To match the set of requirements to match with the set of companies associated with and the
interests of the Firm to invest in, right set of students who can attend this program depends on
various Demographic, psychographic, behavioral, geographic factors as below:

Location of the program offered (On Campus: Metro City preferable)

Age groups of students who attend the program (Expected Age: 21-40 years)

Occupation of the students (Eg: Engineers, Doctors, Chefs, Legal Professionals,

Advertising etc)
Experienced professional from diversified industries (Eg: Telecom, Consumer Goods,
PSUs, Software, Educational, Creative Arts etc)
Nationality: Global students intake yet major intake from the localites
Social: Abilities to take risk, Adaptability, Consistent Academic Performance etc are
preferred majorly
Equal opportunities to all religions, castes, genders, Income groups

Target Group:
The intake to the course is based on some eligibility criterion as below:

Min Qualification: Degree or above

Min 60% across X, XII, Degree
Degree should be valid by Indian Universities
Age Group: 21- 40years
Work experience: Min 1 year

Students who satisfy the above mentioned criterion are allowed to participate in the MBA
Program offered by premier. The entire selection process depends on the assessment of various
qualities like Risk taking capabilities, Quick learning, Leadership, Quality of work experience,
Diversity etc.
TG: Students, Working Professionals, Entrepreneurs, Aspiring Business leaders
Positioning & Strategic Fit:
The Positioning of this MBA program is Exclusively Entrepreneurial. This program is whole
and solely designed keeping in view the issues of failure of starts-ups and hence it is purely
based on the Entrepreneurship. The positioning is blend of need based as it strategically fits
between the Venture Capitalists requirements and the quality of entrepreneurs.

Vision:
Providing a robust platform that bridges the gap between management and entrepreneurship

Mission:
To deliver a high quality management program to ensure maximum success rates of start-ups
and encourage entrepreneurs

Objectives:
To provide a robust platform to learn management, leadership, successful businessmen
To achieve high quality education and maintain it consistently
To increase success rates of new ventures

 To encourage entrepreneurship in the country and among aspiring students

To reduce the problem of Capital to start-ups

Goals:

To become one of the top entrepreneurship courses in the country

Achieve high quality standards in education, infrastructure facilities & funding
Increase the success rates of the Companies associated with Premier, New Ventures
funded by Premier to 20%

Strategic Capabilities:
Threshold Resources:

Collaborative learning, techniques for discussion, reciprocal teaching, problem solving,

graphic information organizers, writing
Academic Accommodation for Students with Disabilities
Academic Freedom & Freedom of Expression
Crime Awareness and Campus Security
Drug and Alcohol Use
Elder and Dependent Adult Abuse
Prohibition of Harassment
Service Animals
Smoking Regulation
Student Records, Release, Correction and Challenge
Students Rights & Responsibilities and Administrative Due Process
Students Right to Know
Complaint Process

Threshold Competences:

Unique combination of Entrepreneurship training and Formal MBA education.

Eye for Opportunity
Premier, we embed the issues into the classroom, create top-flight research centers that
produce state-of-the-art knowledge about important topics, and then become the venue in
which the expertise is translated for the public.
$35 Million Concourse Project Interlinks NYU and Premier B School
Develop Loyalty towards Premier as a brand and their by decrease attrition rate.

Unique Resources:

Diploma along with assurance of a funding for a resourceful business idea

Ability to work with upcoming companies associated with the firm
Alumni Network

Mentoring from real time Venture Capitalists

Core Competences:

Unique combination of Entrepreneurship training and Formal MBA education.

Top-flight research centers
Fully funded Incubation centers

Strategic Planning:
Branding your website is more than looking good; it is communicating the value that you stand
for, the unique personality of your business in a world full of competition and mass-produced
sites. A website cannot be treated as independent of your other branding efforts. It needs to be a
reflection of all other branding, marketing and advertising efforts. Our website messaging and
online marketing efforts should communicate valuable information that is useful to our students.
The voice and tone of communication should be in alignment with our students mindset. To get
the most out of our communication efforts, there are four essential elements all sites should
include. They are: Clear and effective messaging, strong calls to action, stickiness factors and
social media integration. Color schemes, logo design, layout our website should be designed
with our target consumer in mind. Use a Brand Perception Survey to quickly understand how
your brand is viewed in the market, what brand attributes are preferred by customers, and to
identify how your customers competitively position your products/services. Benefits of Internet
advertising It reaches out to the masses, it is targeted advertising, it enables good conversion
tracking, has lower investments and can have a greater range. Our students who are primarily in
their young 20s are heavy users of the internet and online advertising is a huge opportunity to
targets this online community.
No matter where you are or whom you need to reach, targeted emails pave the way. Borders are
no obstacles in email marketing. Costs incurred in designing, executing, testing, sending and
receiving an email is up to 78% less for a run of 5000 over paper-based direct mail version.
When you add e-mail to your marketing mix, you spend less time, money and resources than
with traditional marketing vehicles like direct mail or print advertising. Email enables you to
personalize and greet every person you target. This helps in creating a special bond with the
prospects. Webcasts help us reach out to people who are not able to travel and attend seminars or
programs. An on-demand version of your event is automatically archived for availability to those
who have missed it. Cut costs on many factors associated with in-person meetings, such as
travel, accommodations, and refreshments. By using online conferencing methods you can also
save money on long distance international calls. Calling provides an effective way to perform
relationship marketing. You can use the phone to stay in touch with existing students/corporates.
Allows for interaction and personal selling. You can immediately respond to feedback from
prospects while youre engaged in the sales process.

Press Releases are the most popular means of providing publicity online and offline. One surefire way to get PREMIER B-SCHOOL known is by using press releases. A press release is
written material that announces a news type event. Television networks, radio stations,
magazines, and newspapers as well as online resources will publish the announcement if your

news story peaks interest. The press release that gets published on one of the media outlets will
have our website link provided within it. Those who have reviewed our release and want more
information will click through the link or check out the website. The more a prospect sees
PREMIER B-SCHOOLs name being mentioned the more likely they will remember. The press
release can also help to get PREMIER B-SCHOOL more credibility. Prospects will start to see us
as an expert in our field and think that we should be the one to go to when they quality
education.
Social media is the new age communication tool and more youngsters are now taking up this
activity than ever before. Social media is a great tool to reach targeted audience in the fastest
way possible. It as well enhances the reputation of the institute as a world name. This is why any
full educational institute requires constant Social media presence to be seeable online. Scholarly
persons are the most frequent users of the Cyberspace. When they are essaying institutes to see at
a higher grade, or subject fields that arent available in their country, they seek information
considering such subjects online. Peer reviews are highly valued while deciding to join a certain
MBA college and it is essential for PREMIER B-SCHOOL to have presence in all such forums
like Pagalguy.com, Facebook, and Twitter etc. It can also provide a cost effective way for
PREMIER B-SCHOOL to interact with prospective students, announce events and draw
participation from the student community.

Event marketing can be accomplished in two ways, either as a participant or as a sponsor. There
is no limit to the different ways that event marketing can increase awareness about PREMIER BSCHOOL and introduce prospects to the advantages of partnering with PREMIER B-SCHOOL.
Event marketing activity can be held locally or on a national forum. Both activities can bring
new prospects, and in some cases demonstrate goodwill, which can make a favorable impression
and impart a positive image for PREMIER B-SCHOOL. The advantage of event marketing is to
move from the one-on-one basis of selling to group selling. Events offer a more personalized and
customized message to the audience. Events like competitions, cultural shows and corporate
events are a good platform to highlight student potential, academic ability and corporate
readiness of PREMIER B-SCHOOLs students.

Branding your website is more than looking good; it is communicating the value that you stand
for, the unique personality of your business in a world full of competition and mass-produced
sites. A website cannot be treated as independent of your other branding efforts. It needs to be a

reflection of all other branding, marketing and advertising efforts. Our website messaging and
online marketing efforts should communicate valuable information that is useful to our students.
The voice and tone of communication should be in alignment with our students mindset. To get
the most out of our communication efforts, there are four essential elements all sites should
include. They are: Clear and effective messaging, strong calls to action, stickiness factors and
social media integration. Color schemes, logo design, layout our website should be designed
with our target consumer in mind. Use a Brand Perception Survey to quickly understand how
your brand is viewed in the market, what brand attributes are preferred by customers, and to
identify how your customers competitively position your products/services. Benefits of Internet
advertising It reaches out to the masses, it is targeted advertising, it enables good conversion
tracking, has lower investments and can have a greater range. Our students who are primarily in
their young 20s are heavy users of the internet and online advertising is a huge opportunity to
targets this online community.
No matter where you are or whom you need to reach, targeted emails pave the way. Borders are
no obstacles in email marketing. Costs incurred in designing, executing, testing, sending and
receiving an email is up to 78% less for a run of 5000 over paper-based direct mail version.
When you add e-mail to your marketing mix, you spend less time, money and resources than
with traditional marketing vehicles like direct mail or print advertising. Email enables you to
personalize and greet every person you target. This helps in creating a special bond with the
prospects. Webcasts help us reach out to people who are not able to travel and attend seminars or
programs. An on-demand version of your event is automatically archived for availability to those
who have missed it. Cut costs on many factors associated with in-person meetings, such as
travel, accommodations, and refreshments. By using online conferencing methods you can also
save money on long distance international calls. Calling provides an effective way to perform
relationship marketing. You can use the phone to stay in touch with existing students/corporates.
Allows for interaction and personal selling. You can immediately respond to feedback from
prospects while youre engaged in the sales process.

Press Releases are the most popular means of providing publicity online and offline. One surefire way to get PREMIER B-SCHOOL known is by using press releases. A press release is
written material that announces a news type event. Television networks, radio stations,
magazines, and newspapers as well as online resources will publish the announcement if your
news story peaks interest. The press release that gets published on one of the media outlets will
have our website link provided within it. Those who have reviewed our release and want more
information will click through the link or check out the website. The more a prospect sees
PREMIER B-SCHOOLs name being mentioned the more likely they will remember. The press
release can also help to get PREMIER B-SCHOOL more credibility. Prospects will start to see us
as an expert in our field and think that we should be the one to go to when they quality
education.

Social media is the new age communication tool and more youngsters are now taking up this
activity than ever before. Social media is a great tool to reach targeted audience in the fastest
way possible. It as well enhances the reputation of the institute as a world name. This is why any
full educational institute requires constant Social media presence to be seeable online. Scholarly
persons are the most frequent users of the Cyberspace. When they are essaying institutes to see at
a higher grade, or subject fields that arent available in their country, they seek information

considering such subjects online. Peer reviews are highly valued while deciding to join a certain
MBA college and it is essential for PREMIER B-SCHOOL to have presence in all such forums
like Pagalguy.com, Facebook, and Twitter etc. It can also provide a cost effective way for
PREMIER B-SCHOOL to interact with prospective students, announce events and draw
participation from the student community.

Event marketing can be accomplished in two ways, either as a participant or as a sponsor. There
is no limit to the different ways that event marketing can increase awareness about PREMIER BSCHOOL and introduce prospects to the advantages of partnering with PREMIER B-SCHOOL.
Event marketing activity can be held locally or on a national forum. Both activities can bring
new prospects, and in some cases demonstrate goodwill, which can make a favorable impression
and impart a positive image for PREMIER B-SCHOOL. The advantage of event marketing is to
move from the one-on-one basis of selling to group selling. Events offer a more personalized and
customized message to the audience. Events like competitions, cultural shows and corporate
events are a good platform to highlight student potential, academic ability and corporate
readiness of PREMIER B-SCHOOLs students.

Monthly Calender:

SWOT Analysis:
The SWOT analysis for the MBA program offered by Premier Ventures Limited is as below:
Strengths:

Flexibility and Acceptability

Association with the Venture Capitalists
Self-study
Affordable in comparison to Competitors
Royalty Model

Weakness:

New to the Indian Markets

Lack of awareness
Lack of Concerted Marketing
Distribution channel
E Learning Modules

Opportunities:

Few Competitors
Minimal Threat from New Entrants
Learning Curve of 10 Years
Increasing Focus on Standardization
Increasing Focus on KM
Increasing Requirements of Skilled and Differentiated Work Force

Threats:
Quality Relevance Perception
Economic Slowdown

Porters Five Forces:

Degree of Industry Rivalry
The higher education industry includes approximately 4000 degree granting colleges and
universities. The adjacent pie chart illustrates the industry breakdown by sector. Although, higher
education may appear fragmented with over 4000 competing entities, the industry is actually
quite concentrated due to over 50 percent of the approximately 17.7 million students being
enrolled in only 400 of these colleges or universities. The resulting consequence of this
enrollment pattern is that 10 percent of the industry has over 50 percent of the market share. In
2007, the industrys combined revenue was approximately $200 billion. Although the for-profit
sector only earned $13 billion, this sector represents the fastest growing segment of higher
education and revenues for the top 10 for-profit universities are predicted to double over the next

five years. This growth trend appears to be long term and predictable, with 17.7 million students
currently enrolled in universities, and projected to grow to 19.5 million by 2014. As demand for
higher education escalates, state supported universities and community colleges will most likely
cap enrollments with the for profit sector quickly responding to the increased demand with a
corresponding increase in supply. The for-profit segment is much more flexible, agile to market
conditions, and eager to accept change than the traditional state supported universities,
essentially due to its governance structure. Generally, organizations within the higher education
industry have an exceedingly high fixed cost to total cost ratio. This financial structure requires
these organizations to operate at full or near capacity, as measured by enrollment, to have a
chance of realizing competitive economies of scale. The for-profit segment is an exception here.
Most of these organizations lease classroom space, do not provide residential accommodations,
have limited library resources, and do not provide tenure tracks for faculty employees, so
consequently, have substantially lower fixed costs.
Degree of Industry Rivalry Assessment
The higher education industry has a high fixed cost ratio and is effectively concentrated, which
makes competitive rivalry predictably high. To some extent, the benefits of being a growth
industry offset the high degree of rivalry. Overall rivalry is mitigated because large non- profit
universities have capacity enrollments, and are content seeing for-profit colleges satisfy growing
demand by targeting niche markets. An overall competitive rivalry assessment is moderate.
Barriers to Entry
Public universities and colleges are usually very large organizations with extensive
administrative operations, pervasive facilities and grounds, invaluable brands and a alumni base
that can have a legacy well over a hundred years old. These characteristics, the capital and
endowments required to support these long-term assets, including land grant entitlements, almost
per se define large economies of scale, which certainly represent formidable barriers to entry.
Federal and state governments also regulate the establishment of publicly supported schools
based on policy needs and budget constraints. While public sources of student loans continue to
decline, one unintended consequence is mounting barriers to entry as related to the for-profit
sector. Approximately 93 percent of for profit institutions cash flow consists of tuition and fees.
The crucial point is 64 percent of the tuition and fees consist of federally backed student loans.
An additional barrier to entry, although tangential, is the existence of intellectual property and
technology transfer offices within most university systems. These offices protect and monetize
university research, which represents addition cash flow, and benefit from existing economies of
scale and departmental synergies. Probably one of the most controversial barriers to entry into
specific areas of higher education is the requirements and restrictions imposed by accrediting
associations. These organizations, while promoting curriculum standards, affinity group branding
and visible education outcome metrics, also cleverly protect the incumbent members with an
accredited by license.
Barriers to Entry Assessment
A high fixed cost structure, extensive federal and state regulation, enormous economies of scale
and restrictive curriculum accrediting processes, all act as higher barriers to entry and serve the
incumbent schools well by protecting their current market shares.

Threat of Product or Service Substitution

At first, one may think that the options or alternatives related to earning a college degree or
obtaining additional higher education would be constrained by location, level of income or
possibly cultural influences. Although possibly true 20 years ago, these limitations to higher
education are significantly less relevant today. At present, the variety of educational products
is extensive and continues to increase as influenced by the exponential advances in information
technology. Classic economic theory classifies information technology as product compliment,
because the existence of the product or service augments the features and benefits of an
incumbents product offering. An additional economic process that measures the threat of
substitution is the availability of price-performing product alternatives. Not to over generalizing
but, younger adults are more disposed to change than older adults. Youth brings out the attitude
of what do I have to lose as contrasted to the anchors of age associated with older adults. It
is not a stretch to conclude that younger adults have a higher propensity to substitute than older
adults do, within the same population of higher education students. Of course, these examples
are hypothetical and best measured by transfer rates and graduation rates.
Threat of Product or Service Substitution Assessment
There are an estimated 4000 universities and colleges in the United States and that quantity alone
would arguably indicate a wide variety of higher education options. Although the majority of
students attend only 10 percent of the schools, it can be argued that the selection opportunities
are high. This is in stark contrast to rapidly growing Middle Eastern countries where perhaps
there is only one viable public or private university. Capacity limits and escalating admissions
requirements do to some extent decrease the available alternatives. Price points widely differ
between the public, private and for-profit higher education segments. For-profit universities
deliberately price their degree programs between the public and private tuition schedules. In
economic terms, the for-profit sector overall, prices at the price elastic point of the higher
education demand curve. However, this strategy does have some weaknesses, including the
unintended consequence of effectively minimizing switching cost between a public university
and a for-profit institution. In addition, since for-profit tuitions are high relative to public
universities, the student is already price conditioned which makes transferring to a more
expensive private school a realistic option. The overall assessment of the threat to substitute is
high and not beneficial to the industry incumbent.
Degree of Buyer Power
With roughly 17.5 million currently enrolled students in higher education institutions in the
United States, without any specific target groups representing a majority market share, buyers are
fragmented and diffused across the market. This buyer characteristic limits the effective power
any one specific student may have in terms of negotiating tuition rates, admission requirements
and other amenities. There is one acceptation to this observation. Public and private universities
are targeting and aggressively recruiting the standout 15-25 percent of high school classes with
the predictable, but unintended consequence of giving this market segment generous power to
choose their options and to negotiate. In todays information age, the contents of an
undergraduate record of course descriptions is only a mouse click away. School search and
evaluation data is a frictionless, symmetrical and essentially free process. Of course, this not was
always the case. Twenty years ago, a high school student had to patiently wait weeks to receive

an university record by mail to assist with college evaluations. It is axiomatic that the more
information a buyer has, the more balanced the transaction or exchange will be. Two additional
components that influence the degree of buyer power are the rate of growth for the specific
industry and the strategic value of the buyer to the industry as a whole. A growing market
diminishes buyer power relative to a market with an average growth rate and along that same
argument, the more distributed buyers are over a given geographic location, the less power they
accrue.
Degree of Buyer Power Assessment
Buyers are widely fragmented across the market and in general, these potential students have
limited influence on the higher education industry. As discussed previously, this observation does
not hold for the top 25 percent of high school seniors graduating from the most respected high
schools across the United States. Universities, whether public or private, feverishly recruit this
target market in anticipation of sustaining high SAT, GPA admission averages, and consistent
graduation rates, all of which enhance and distinguish their brand. In contrast, the for-profit
sector heavily recruits from the underserved inter-quartile of graduating seniors and is
generously rewarded for its efforts. The role of freely available and instantaneous information
relating to course descriptions, college amenities, and school rankings most certainly shifts the
information asymmetries of a generation ago, giving potential students more power of choice.
This shift, to a degree, offsets the effect of market fragmentation and consequently gives buyer
power an overall neutral assessment.
Degree of Supplier Power
The degrees of supplier concentration and supplier importance, in respect to the higher education
industry are essentially the same side of the economic coin. If there are few suppliers to an
industry and these suppliers sell an essential component or service to the industry, then supplier
power will be high relative to other industries. A classic example of this principle is the Industry
Rivalry Barriers to Entry Suppliers Buyers Substitutes clout and influence Intel has over the
personal computer manufacturing industry. There are effectively only two CPU manufacturers
supplying the most important component to the industry. Within the higher education industry,
there are numerous suppliers of a variety of products and services, fragmented across the
industry. Even highly regarded textbook publishers, clamor for faculty time and compete for
each text approval and unit sold.
Degree of Supplier Power Assessment
Universities and colleges frequently represent large stable contracts to vendors, so the ensuing
competition for bids among these vendors is typically frenzied. Based on the observation of
numerous vendors selling essentially generic products and services, and low motivation by these
suppliers to vertically integrate into higher education delivery, suppliers ability to influence
the industry is low.

ANSOFF Matrix:
To portray alternative corporate growth strategies, Igor Ansoff presented a matrix that focused on
the firm's present and potential products and markets (customers). By considering ways to grow

via existing products and new products, and in existing markets and new markets, there are four
possible product-market combinations. Ansoff's matrix is shown below:

Ansoff Matrix
Existing Products
Existing
Markets

New
Markets

Market

Market

New Products

Penetration

Development

Product

Development

Diversification

Ansoff's matrix provides four different growth strategies:

Market Penetration - the firm seeks to achieve growth with existing products in their
current market segments, aiming to increase its market share.

Market Development - the firm seeks growth by targeting its existing products to new
market segments.

Product Development - the firms develops new products targeted to its existing market
segments.

Diversification - the firm grows by diversifying into new businesses by developing new
products for new markets.

Selecting a Product-Market Growth Strategy

The market penetration strategy is the least risky since it leverages many of the firm's existing
resources and capabilities. In a growing market, simply maintaining market share will result in
growth, and there may exist opportunities to increase market share if competitors reach capacity
limits. However, market penetration has limits, and once the market approaches saturation
another strategy must be pursued if the firm is to continue to grow.
Market development options include the pursuit of additional market segments or geographical
regions. The development of new markets for the product may be a good strategy if the firm's
core competencies are related more to the specific product than to its experience with a specific
market segment. Because the firm is expanding into a new market, a market development
strategy typically has more risk than a market penetration strategy.

A product development strategy may be appropriate if the firm's strengths are related to its
specific customers rather than to the specific product itself. In this situation, it can leverage its
strengths by developing a new product targeted to its existing customers. Similar to the case of
new market development, new product development carries more risk than simply attempting to
increase market share.
Diversification is the most risky of the four growth strategies since it requires both product and
market development and may be outside the core competencies of the firm. In fact, this quadrant
of the matrix has been referred to by some as the "suicide cell". In the present scenario, Premier
Ventures is looking into this Diversification strategy. In the present case however, this strategy
would be a reasonable choice as the high risk is compensated by the chance of a high rate of
return as the MBA program would provide the required guidance for budding entrepreneurs. The
concept of bond would also increases the partake of Premier Venture when they would go for an
IPO. Other advantages of diversification include the potential to gain a foothold in an attractive
industry like the B- School industry into which they are trying to force into and the reduction of
overall business portfolio risk of investing into a completely unknown and unseen business
rather than overseeing the business from its grassroots in the MBA program itself.

BCG Matrix:
As the B- School and VC firm can be considered into separate business units they generally face
the challenge of allocating resources between both the units. BCG matrix is a framework created
by Boston Consulting Group to evaluate the strategic position of the business brand portfolio and
its potential. It classifies business portfolio into four categories based on industry attractiveness
(growth rate of that industry) and competitive position (relative market share). These two
dimensions reveal likely profitability of the business portfolio in terms of cash needed to support
that unit and cash generated by it. The general purpose of the analysis is to help understand,
which brands the firm should invest in and which ones should be divested.
Relative market share:
One of the dimensions used to evaluate business portfolio is relative market share. Higher
corporate market share results in higher cash returns. This is because a firm that produces more,
benefits from higher economies of scale and experience curve, which results in higher profits.
Nonetheless, it is worth to note that some firms may experience the same benefits with lower
production outputs and lower market share.
Market growth rate:
High market growth rate means higher earnings and sometimes profits but it also consumes lots
of cash, which is used as investment to stimulate further growth. Therefore, business units that
operate in rapid growth industries are cash users and are worth investing in only when they are
expected to grow or maintain market share in the future.
There are four quadrants into which firms brands are classified:
Dogs. Dogs hold low market share compared to competitors and operate in a slowly growing
market. In general, they are not worth investing in because they generate low or negative cash
returns. But this is not always the truth. Some dogs may be profitable for long period of time,

they may provide synergies for other brands or SBUs or simple act as a defense to counter
competitors moves. Therefore, it is always important to perform deeper analysis of each brand or
SBU to make sure they are not worth investing in or have to be divested.
Strategic choices: Retrenchment, divestiture, liquidation
Cash cows. Cash cows are the most profitable brands and should be milked to provide as
much cash as possible. The cash gained from cows should be invested into stars to support
their further growth. According to growth-share matrix, corporates should not invest into cash
cows to induce growth but only to support them so they can maintain their current market share.
Again, this is not always the truth. Cash cows are usually large corporations or SBUs that are
capable of innovating new products or processes, which may become new stars. If there would
be no support for cash cows, they would not be capable of such innovations.
Strategic choices: Product development, diversification, divestiture, retrenchment
Stars. Stars operate in high growth industries and maintain high market share. Stars are both
cash generators and cash users. They are the primary units in which the company should invest
its money, because stars are expected to become cash cows and generate positive cash flows. Yet,
not all stars become cash flows. This is especially true in rapidly changing industries, where new
innovative products can soon be outcompeted by new technological advancements, so a star
instead
of
becoming
a
cash
cow,
becomes
a
dog.
Strategic choices: Vertical integration, horizontal integration, market penetration, market
development, product development
Question marks. Question marks are the brands that require much closer consideration. They
hold low market share in fast growing markets consuming large amount of cash and incurring
losses. It has potential to gain market share and become a star, which would later become cash
cow. Question marks do not always succeed and even after large amount of investments they
struggle to gain market share and eventually become dogs. Therefore, they require very close
consideration
to
decide
if
they
are
worth
investing
in
or
not.
Strategic choices: Market penetration, market development, product development, divestiture

In the present case of Premier Venture, the two Business units would be the Venture Capitalist
part and B- School. As the success rate of ventures is below the Industry norms we can consider

their Relative Market Share as Low. But there is a lot of market growth in the Venture Capital
sector, which makes the Venture Capital Business Unit a Question Mark, that require much
closer consideration. They hold low market share in fast growing markets consuming large
amount of cash and incurring losses. It has potential to gain market share and become a star,
which would later become cash cow. Coming to B- School Business Unit, the market share
would be high as there are very less competitors when it comes to Entrepreneurial B-School
backed by a Venture Capital Firm. There is high market growth as Entrepreneurship is booming
in Young India. This business unit thus becomes a Star, that is both cash generators and cash
users. They are the primary units in which the company should invest its money, because stars
are expected to become cash cows and generate positive cash flows. Yet, not all stars become
cash flows. This is especially true in rapidly changing industries like in the B-School industry.

CSF& KSF:
CSF: Our Basic CSF will include world class administration and teaching staff and state of the
art learning equipment to provide an overall enriched experience of education

KSF: Our KSF factors include the likes of students (future entrepreneurs) because they are
where the money comes from

Strategic Management:
The myth is that venture capitalists invest in good people & ideas. Reality is that they invest in
good industries.

Strategic Group:
There exist some institutes that offer similar programs of entrepreneurship programs in the
country. Some examples of such program are: ISB, SPJIMR, XLRI, IIE, Amity, Nirma
university, NMIMS etc.

Control:
Premise Control: It is designed to check constantly whether the premises on which a strategy is
grounded on are still valid.
Special Alert Control: Acquisition of your competitor by an outsider.
Implementation Control: Implementing a strategy takes place as a series of steps, activities,
investments and acts that occur over a lengthy period

SAF Model:
Sustainability:
The program fits in to the current world of growing needs of entrepreneurship. This program
suits well to the aspirants who wish to start their own companies and want to be successful in

running them. In this era of high failure rate of start-ups, this program rights fits to bridge the gap
between the real world experiences to the aspirants.
Accessibility:
The Accessibility of the program is completely offline or on-campus program with some elearning modules, workshops from industry experts, internship opportunities in the starts-ups as
well as companies associated with Premier Ventures. Also Premier made sure that the MBA
program is offered in a metro city to have better access to the infrastructure, industries is high.
Feasibility:
This program is feasible to work in the current trends due to the fact that there exists a lot of
potential in start-up founders but lack in the mentoring, funding and right strategies to make it
successful. This MBA program resolves this problem by providing necessary facilities, realworld experience, right network, Capital directly from the VCs directly investing in the start-ups.

Decision Trees:
A decision tree is a decision support tool that uses a tree-like graph or model of decisions and
their possible consequences, including chance event outcomes, resource costs, and utility. It is
one way to display an algorithm. Decision trees are commonly used in operations research,
specifically in decision analysis, to help identify a strategy most likely to reach a goal. A decision
tree is a flowchart-like structure in which each internal node represents a "test" on an attribute
(e.g. whether a coin flip comes up heads or tails), each branch represents the outcome of the test
and each leaf node represents a class label (decision taken after computing all attributes). The
path from root to leaf represents classification rules.
In decision analysis a decision tree and the closely related influence diagram are used as a visual
and analytical decision support tool, where the expected values (or expected utility) of competing
alternatives are calculated.
A decision tree consists of 3 types of nodes:
1. Decision nodes - commonly represented by squares
2. Chance nodes - represented by circles
3. End nodes - represented by triangles

Given below is a portrayal of a solution for Premier Venture Capital Ltd. This gives alternatives for the
problem
including
the
B-school
option
and
their
consequences

Conclusion:
After analyzing all the models and concepts of Strategy like STP analysis, BCG Matrix, Ansoff
Matrix, SWOT, Posters Generic strategies, Porters five forces, SAF etc we recommend Premier
to go with the concept of backward integration and frame MBA program. Choosing strategic
location like the business capital of India i.e., Bombay, utilizing the expertise from Premier
network and building excellent infrastructure and accessing the opportunities available in
Premier associated companies, this MBA program can make a successful mark in the B-school
industry. This is because of the need for such differentiated course as well as the platform to
bridge the gap.

References:

https://quizlet.com/11997252/strategic-management-strategy-into-action-safe-criteriaflash-cards/
http://corporatemissions.blogspot.in/2007/11/indian-institute-of-management-iim.html