Executive Education Opportunities In China

47
BAKER STRATEGY GROUP Oakland University Executive Education Opportunities in China Rochester, MI October 1, 2001 MAKE IT HAPPEN Discussion

description

Back in 2001, Baker Strategy Group analyzed the market demand for MBAs in China in preparation for a discussion with Oakland University. Our conclusion was that demand for MBA was high and would continue to grow in the coming years.

Transcript of Executive Education Opportunities In China

Page 1: Executive Education Opportunities In China

BAKERSTRATEGY GROUP

Oakland UniversityExecutive Education Opportunities in China

Rochester, MI

October 1, 2001

MAKE IT HAPPEN

Discussion

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October 1, 2001 Page 1

BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

Executive Summary 2

I. Executive Education in China: 10A look at the executive education market in China

II. 5 Models of Partnering: 21Sample models US organizations are using for executive education in China

III. OU EMBA-HCM Program 32Opportunities for OU to offer EMBA-HCM in China

IV. Next Steps 44

Section Page

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BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

Although there are concerns for investing in China at this time, the opportunities outweigh thedrawbacks.

MBA programs have grown quickly in China over the last 4 years to meet the changing needs of

managers in a variety of enterprises

While there is heavy competition for corporate and business training, universities are uniquely

positioned to offer executive MBA degrees

Many foreign universities are offering executive MBA programs in China using at least five models for

partnering with Chinese schools

Executive Summary

OU currently offers 5 graduate degrees from the School of Business Administration, 1 of which is an executive MBA in health management

Oakland University has 5 key strategic resources which enable OU to successfully offer the EMBA-

HCM program in China

Depending on existing relationships, OU may want to start with a mutual partnership, and later

develop into a Consortium Partnership

1

2

3

4

5

6

7

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BAKERSTRATEGY GROUP

Executive Education Opportunities in China

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Discussion Paper

Executive Summary

Although there are concerns for investing in China at this time, the opportunities outweigh the drawbacks

Pros and Cons of Investing in China

Economic

Political

Other

International • Current terrorist Crisis• Global Recession

• Underdeveloped stock market• Unperforming loans at Chinese

banks

• Uncertain leadership succession• CCP divided on foreign enterprises• Uncertainty from CCP policy

meddling• Corruption• Poor Infrastructure• Unemployment

Pros Cons

• WTO Accession• 2008 Summer Olympics

• Strong domestic economy• High levels of FDI• SEZ’s offer economic incentives

• Office government support for markets and private sector

• Emphasis on management development

• Growing legal system• General Chinese concern for

economic and political stability

Source: Baker Strategy Group

1

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BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

Executive Summary

MBA programs have grown quickly in China over the last 4 years to meet the changing needs of managers in a variety of enterprises

MBA Program Growth in China

Source: Asia One, US Consulate in Hong Kong, US Army Research office – Far East

Cumulative MBA Holders in China

0

5,000

10,000

15,000

20,000

25,000

30,000

1991 1997 1999 2001

00

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

1991 1997 1999 2001

Enrollment in Chinese MBA Schools

0

10

20

30

40

50

60

70

80

1991 1997 1999 2001

Participating Chinese Schools

1,000

5,000

25,000

86

5,000

23,500

35,000

9

26

56

75

2

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BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

Executive Summary

While there is heavy competition for corporate and business training, universities are uniquely positioned to offer executive MBA degrees

Business Training Services

Source: Baker Strategy Group

BasicEnglish

GeneralSkills

ManagementTraining

MBAPrograms

Nature of coursework

Examples

Who is equipped to offer this

Business English reading, writing, and speaking

Business and administrative skills

Hand-on courses and workshops to develop manager effectiveness

Degree program providing a complete business orientation

• Business Writing• Market Terms• Specific Industry

Terminology

• Computers• Basic Finance• General Marketing• Time Management• Cultural Sensitivity

• Managing Teams• Business Planning• Negotiation• Performance

Reviews

Emphasis in:• Finance• Marketing• Accounting• Etc.

• Corporate Universities

• Individual Training

• Training Companies

• Universities

3

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Executive Education Opportunities in China

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Discussion Paper

Executive Summary

Many foreign universities are offering executive MBA programs in China using at least five models for partnering with Chinese schools

Five Partnering Models

Source: website of schools, WSJ Interactive

• Beijing Electric Power College

• Shanghai Metallurgy Chengdu Hydro Elect. Power College

• Plato College• Napier University• James Watt College

Degree Certificate

Length 8 Courses1 Year Program

Tuition $ ?

Executive MBA in Leadership

Language English

1 2 3 4 5

Model

Program

Partners• Thunderbird

Graduate School of International Management

Certificate

8 Courses1 Year Program

$ 13,250

Global Management Program

English, but Chinese can be arranged

• The University of British Columbia

• Shanghai Jiao Tong University

• Team Canada Trade Mission

UBC MBA

18 Courses1.5 Year Program

$ 19,133

International MBA

English

• Shanghai Jiao Tong University

• The European Foundation for Management Dev.

• MOFTEC• European

Commission

22 Courses2 Year Program

$ 23,614

• Tsinghua Univ.• Fordham University• Santa Clara Univ.• Renessler

Polytechnic Univ.• Loyola University• 22 other US

Universities

12 Courses2-Year Program

$ 19,500

Executive MBA

Both English and Chinese

CEIBS MBA Fordham Univ. MBA

International MBA

Individual Branch Joint Entity Consortium Partnership Consortium PartnersMutual Partnership

English

4

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Executive Education Opportunities in China

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Discussion Paper

Executive Summary

OU currently offers 5 graduate degrees from the School of Business Administration, 1 of which is an executive MBA in health management

OU Graduate Degrees in the School of Business

Source: Oakland University

Graduate degrees currently offered

Executive MBA• Health Care Management

OU Schools

• Accounting• Business Economics• Entrepreneurship• Finance• Health Care Management• HR Management

• International Business• Management Information

Systems• Marketing• Production/Operations

Management

MAcc• Public Accounting• Managerial Accounting• Systems Accounting

MBA (and accelerated MBA)

Post Master Certification Programs• Accounting• Business Economics• Finance• HR Management• International Business

• Management Information Systems

• Marketing• Production/Operations

Management

MS in Engineering Management

5

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BAKERSTRATEGY GROUP

Executive Education Opportunities in China

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Discussion Paper

Executive Summary

Oakland University has 5 key strategic resources which enable OU to successfully offer the EMBA-HCM program in China

OU Strategic Resources

Source: Oakland University

Guizhou Relationship

Familiarity and Experience with China

Existing Accredited Executive MBA Program

Solid Core Faculty

International Orientation

1

2

3

4

5

Strategic Resources Implications

• Makes Guizhou area a natural geographic starting point• Allows existing framework to form basis for Pilot Program

• Enables OU to move quickly on a Pilot Program

• Provides a degree program that can be adapted for China

• Equips OU to successfully deliver needed courses

• Gives OU staff support to pursue programs in China

6

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BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

Executive Summary

Depending on existing relationships, OU should start with a mutual partnership, and later develop into a Consortium Partnership

Model Evaluation Against OU Strategic Resources

Source: Baker Strategy Group

Overall

Model

StrategicResource

Guizhou relationship

China experience

1

2

4

Existing program

Core faculty

5 International orientation

3

IndividualBranch

JointEntity

ConsortiumPartnership

ConsortiumPartners

MutualPartnership

7

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BAKERSTRATEGY GROUP

Page 10October 1, 2001

Discussion Paper Executive Education Opportunities in China

Page 10

Oakland University

I. Executive Education in China

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BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

I. Executive Education in China

Although there are concerns for investing in China at this time, the opportunities outweigh the drawbacks

Pros and Cons of Investing in China

Economic

Political

Other

International • Current terrorist Crisis• Global Recession

• Underdeveloped stock market• Unperforming loans at Chinese

banks

• Uncertain leadership succession• CCP divided on foreign enterprises• Uncertainty from CCP policy

meddling• Corruption• Poor Infrastructure• Unemployment

Pros Cons

• WTO Accession• 2008 Summer Olympics

• Strong domestic economy• High levels of FDI• SEZ’s offer economic incentives

• Office government support for markets and private sector

• Emphasis on management development

• Growing legal system• General Chinese concern for

economic and political stability

Source: Baker Strategy Group

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Executive Education Opportunities in China

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Discussion Paper

I. Executive Education in China

General economic indicators show a fast-growing economy coupled with stable, low level inflation

China Economic Statistics

Source: The Economist Intelligence Unit

1997 1998 1999 2000 2001 2002

GDP (US$ bn) 902.0 964.0 1,012.0 1,101.0 1,204.0 1,324.0

GDP per head (US$) 730.0 780.0 810.0 870.0 940.0 1,030.0

Trade Balance (US$ bn) 46.2 46.6 36.2 36.7 32.9 28.8

Total Foreign Debt (US$ bn) 159.2 167.8 164.8 162.1 165.3 177.3

YOY 6.9% 5.0% 8.8% 9.4% 10.0%

YOY 6.8% 3.8% 7.4% 8.0% 9.6%

YOY 0.9% -22.3% 1.4% -10.4% -12.5%

YOY 5.4% -1.8% -1.6% 2.0% 7.3%

* * *

* Forecast

Real GDP Growth 8.8% 7.8% 7.2% 8.2% 7.8% 7.9%

YOY -11.4% -7.7% 13.9% -4.9% 1.3%

Consumer Price Inflation 2.8% -0.8% -1.3% 0.4% 1.0% 1.8%

YOY -128.6% 62.5% -130.8% 150.0% 80.0%

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Discussion Paper

I. Executive Education in China

Guizhou and Chongqing, OU’s most natural target markets, rank below the top 20 provinces in terms of GDP and GDP growth

Provincial GDP Growth (in RMB)

Source: Access Asia

Province 1994 1995 1996 1997 1998 1999 2000 CAGR

1 Guangdong 412 530 656 756 826 1,001 1,121 18.2%2 Shandong 376 493 600 687 747 906 1,012 18.0%3 Jiangsu 394 508 604 690 751 902 1,004 16.9%4 Zhejiang 259 347 417 479 520 632 707 8.2%5 Henan 216 296 368 422 454 560 629 19.5%6 Hebei 212 281 347 409 444 543 610 19.2%7 Hubei 182 236 299 357 386 474 535 19.6%8 Shanghai 192 243 292 347 385 461 517 17.9%9 Liaoning 239 275 318 361 405 466 513 13.6%

10 Fujian 164 213 260 310 347 419 472 19.3%11 Hunan 165 216 266 309 335 409 458 18.6%12 Sichuan 270 348 300 343 373 404 426 7.9%13 Anhui 145 197 235 276 293 359 402 18.6%14 Heilongjiang 157 199 242 280 295 359 400 16.9%15 Beijing 105 138 163 187 210 250 280 17.7%16 Guangxi 121 158 188 208 198 248 272 14.5%

22 Chongqing NA NA 119 140 149 173 190 12.5%

27 Guizhou 51 62 72 82 88 104 118 15.1%

. . .

. . .

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Discussion Paper

I. Executive Education in China

However, Guizhou and Chongqing are in the top 20 in terms of population, making up 5.4% of China’s 1,273 million people

Provincial Population

Source: Access Asia

Province 1999 2000

Henan 99 100 7.9%Shandong 95 96 7.5%Sichuan 88 89 7.0%Jiangsu 76 76 6.0%Guangdong 71 72 5.7%Hebei 70 71 5.6%Hunan 69 70 5.5%Hubei 62 62 4.9%Anhui 56 57 4.5%Guangxi 47 48 3.8%Zhejiang 46 47 3.7%Jiangxi 46 46 3.6%Liaoning 43 44 3.4%Hunan 41 41 3.3%Guizhou 38 38 3.0%Shaanxi 37 37 2.9%

2000 % Share of Total Province 1999 2000

Fujian 33 34 2.7%Shanxi 33 34 2.7%Chongqing 31 31 2.4%Heilongjiang 29 30 2.3%Jilin 28 28 2.2%Gansu 26 26 2.1%Inner Mongolia 25 25 2.0%Xinjiang 17 18 1.4%Shanghai 13 13 1.1%Beijing 12 12 0.9%Hainan 8 8 0.6%Tianjin 6 6 0.5%Ningxia 6 6 0.4%Qinghai 5 5 0.4%Tibet 3 3 0.2%

TOTAL 1,259 1,273 100.0%

2000 % Share of Total

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Discussion Paper

I. Executive Education in China

Almost 80% of China’s 643 million labor market in 2000 is concentrated in traditional industries, such as agriculture and construction

Source: Access Asia, Understanding China: , John Bryan Starr

LaborMarket

643 Million

51%

49% Non LaborMarket

630 Million

SectorEmployment1994 2000 CAGR

Agriculture, forestry & fisheries 334 330 -0.2%Manufacturing 96 89 -1.4%Wholesale, retail and catering trade 39 52 4.9%Construction 32 35 1.6%Transport, storage, post and telecom 19 21 2.3%Education, culture and the media 14 17 2.4%Government and social agencies 10 11 1.1%Service sector 6 10 7.9%Mining & quarrying 9 7 -4.7%Health, sports & social welfare 4 5 2.5%Banking and insurance 3 3 4.5%Utilities (water, gas & electricity) 2 3 3.8%Scientific research 2 2 0.5%Water conservancy 1 1 -4.0%Real estate 1 1 5.7%Others 42 56 5.0%

Total 615 643 0.7%

Total Population = 1,273 Million National Employment = 643 Million

了解中国

National Labor Market

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Discussion Paper

I. Executive Education in China

And 120 million, almost 65%, of the 187 million urban employment in 2000 is concentrated in state-owned enterprises

Urban

187 Million

29%

71% Rural

456 Million

Total Labor Market = 643 Million Urban Employment by Ownership = 187 Million

0

20

40

60

80

100

120

140

State Private Collective Unemployed

120

40

20

7

Source: Access Asia, Understanding China: , John Bryan Starr了解中国

Urban Employment

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October 1, 2001 Page 17

BAKERSTRATEGY GROUP

Executive Education Opportunities in China

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Discussion Paper

I. Executive Education in China

MBA programs have grown quickly in China over the last 4 years to meet the changing needs of managers in a variety of enterprises

MBA Program Growth in China

MBA program growth in China

Source: Asia One, US Consulate in Hong Kong, US Army Research office – Far East

Cumulative MBA Holders in China

0

5,000

10,000

15,000

20,000

25,000

30,000

1991 1997 1999 2001

00

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

1991 1997 1999 2001

Enrollment in Chinese MBA Schools

0

10

20

30

40

50

60

70

80

1991 1997 1999 2001

Participating Chinese Schools

1,000

5,000

25,000

86

5,000

23,500

35,000

9

26

56

75

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October 1, 2001 Page 18

BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

I. Executive Education in China

The current estimated 35,000 MBA enrollment translates into 20,000 estimated annual graduates, short of the 50,000 estimated annual demand

Estimated annual demand for MBA

graduates

50,000

China’s demand for MBAs is expected to exceed 1.4 million in the next decade

-William DaleyUS Secretary of Commerce, 1998

Forecasted MBA Demand

Forecasted Senior Managers

• 350,000 senior managers needed in 5 years

• 25,000 current MBAs• 35,000 in-school MBAs• Assume 50% of senior managers

need MBA degree

Forecasted MBA Demand

China’s goal is to have 50,000 annual MBA graduates

-Siwei ChenVice Chairman of NPC

1999

Source: Asia One, US Consulate in Hong Kong, US Army Research office – Far East

Estimated Annual MBA Demand in China

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October 1, 2001 Page 19

BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

I. Executive Education in China

While there is heavy competition for corporate and business training, universities are uniquely positioned to offer executive MBA degrees

Business Training Services

Source: Baker Strategy Group

BasicEnglish

GeneralSkills

ManagementTraining

MBAPrograms

Nature of coursework

Examples

Who is equipped to offer this

Business English reading, writing, and speaking

Business and administrative skills

Hand-on courses and workshops to develop manager effectiveness

Degree program providing a complete business orientation

• Business Writing• Market Terms• Specific Industry

Terminology

• Computers• Basic Finance• General Marketing• Time Management• Cultural Sensitivity

• Managing Teams• Business Planning• Negotiation• Performance

Reviews

Emphasis in:• Finance• Marketing• Accounting• Etc.

• Corporate Universities

• Individual Training

• Training Companies

• Universities

Page 21: Executive Education Opportunities In China

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BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

I. Executive Education in China

A foreign university, such as OU, offers an internationally accredited degree that has clear advantages over a Chinese MBA degree

Source: Baker Strategy Group

Traditional Full Time Executive Part Time

Chinese Degree

US Degree

Pros Cons Pros Cons

Pros Cons Pros Cons

• Easy to obtain• Often relatively

inexpensive

• Top students go abroad

• Degree not recognized internationally

• Internationally recognized degree

• US mgt. theory

• Top students go abroad

• More expensive than Chinese degree

• Often more demanding program

• Easy to obtain• Often relatively

inexpensive• Manager

continues to contribute to the enterprise

• Top students go abroad

• Degree not recognized internationally

• Internationally recognized degree

• Manager continues to contribute to the enterprise

• US mgt. Theory and methods

• More expensive than Chinese degree

• Often more demanding program

MBA Programs in China

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BAKERSTRATEGY GROUP

Page 21October 1, 2001

Discussion Paper Executive Education Opportunities in China

Page 21

Oakland University

II. 5 Models of Partnering

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October 1, 2001 Page 22

BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

Many foreign universities are offering executive MBA programs in China using at least five models for partnering with Chinese schools

Source: website of schools, WSJ Interactive

• Beijing Electric Power College

• Shanghai Metallurgy Chengdu Hydro Elect. Power College

• Plato College• Napier University• James Watt College

Degree Certificate

Length 8 Courses1 Year Program

Tuition $ ?

Executive MBA in Leadership

Language English

1 2 3 4 5

Model

Program

Partners• Thunderbird

Graduate School of International Management

Certificate

8 Courses1 Year Program

$ 13,250

Global Management Program

English, but Chinese can be arranged

• The University of British Columbia

• Shanghai Jiao Tong University

• Team Canada Trade Mission

UBC MBA

18 Courses1.5 Year Program

$ 19,133

International MBA

English

• Shanghai Jiao Tong University

• The European Foundation for Management Dev.

• MOFTEC• European

Commission

22 Courses2 Year Program

$ 23,614

• Tsinghua Univ.• Fordham University• Santa Clara Univ.• Renessler

Polytechnic Univ.• Loyola University• 22 other US

Universities

12 Courses2-Year Program

$ 19,500

Executive MBA

Both English and Chinese

CEIBS MBA Fordham Univ. MBA

International MBA

Individual Branch Joint Entity Consortium Partnership Consortium PartnersMutual Partnership

English

Five Partnering Models

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October 1, 2001 Page 23

BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

II. 5 Models of Partnering

Thunderbird has set up a branch office in Shanghai and offers courses managed and taught directly by Thunderbird staff and professors

Thunderbird’s China Global Management Program

Date Began

Program

General Management Program

• 8 modules:- Initial 5-day orientation- One 4-day module- Five 3-day modules-One final 5-day module

• Taught by Thunderbird faculty

Thunderbird, The American Graduate School of International Management

United States

Program OverviewSchool

Thunderbird’s China Global Management Program1

Source: Thunderbird, Baker Strategy Group

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BAKERSTRATEGY GROUP

Executive Education Opportunities in China

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Discussion Paper

II. 5 Models of Partnering

Thunderbird’s Center for Business Skills Development (CBSD) has delivered programs to over 40 US and Chinese business clients in China

Sample of Thunderbird’s CBSD clients in China

3M China Ltd. ABB China Ltd., Beijing Advanced Semiconductor Manufacturing Co., Ltd. Alcatel China, Ltd. Alcoa (Shanghai) Aluminum Products Co., Ltd. AlliedSignal (Kaiping) Industrial Fiber Company, Ltd. American Standard (Hua Mei) Sanitary Ware Co., Ltd. Tyco (AMP) Shanghai Ltd. Astra Zeneca (Wuxi) Pharmaceutical Co., Ltd. Aventis (China) Inv. Co., Ltd. BellSouth Shanghai Center, Ltd. Borg Warner Cooling System China Unicom DuPont China Holding Co., Ltd. Shanghai Office EDS Electronic Data Systems (HK), Ltd. Eli Lilly S.A. Shanghai Rep. Office Export Import of East Asia, Inc., Shanghai Fisher-Rosemount China Ltd. Global Sources Guangzhou Pepsi-Cola Beverage Co. Henkel (China) Investment Co., Ltd.

Hilti (China) Ltd. IBM China Co., Ltd International Nutrition Co., Ltd. Mary Kay Inc. ZMotorola (China) Electronics, Ltd. Motorola University Ogilvy Public Relations Worldwide Pepsico, Inc. Pepsi-Cola Division China Business Unit Pepsico Foods (China) Co., Ltd. Pepsico, Inc. HK Pharmacia & Upjohn (China), Ltd. Polaroid of Shanghai Ltd. Roche (China), Ltd. Shanghai Bertelsmann Culture Industry Co., Ltd. Shanghai CompAir Compressor Co. Ltd. Shanghai Eaton Engine Components Co., Ltd. Shanghai Huateng Software Systems Co., Ltd. Shanghai Johnson Ltd. Shanghai Municipal People's GovernmentShanghai Simicomix Electronic Co., Ltd.

1

Source: Thunderbird, Baker Strategy Group

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BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

II. 5 Models of Partnering

Thunderbird’s Global Management Program appears to be profitable, based on a simple estimate of costs and revenues

Source: Thunderbird, Baker Strategy Group

Key Assumptions

• Estimated 10 students enrolled in the program

• 24 days of actual classes

• 1 instructor for any given module of classes

• Tuition is paid by either participants or sponsoring corporate partners

Per Person Per Day Total Per Day Total

Revenue 552$ 5,520$ 132,480$

Expenses

Training Facility 100$ 1,000$ 24,000$

Administrative 50$ 500$ 12,000$

Faculty Fees 120$ 1,200$ 28,800$

Faculty Expenses 50$ 500$ 12,000$

Student Hotel 75$ 750$ 18,000$

Student Food 25$ 250$ 6,000$

Student Materials 10$ 100$ 2,400$

Misc 50$ 500$ 12,000$

Total Expenses 480$ 4,800$ 115,200$

Net Difference 72$ 720$ 17,280$

% of Revenue 13.0%

% of Costs 15.0%

Thunderbird’s Estimated Revenues and Costs1

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BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

II. 5 Models of Partnering

UBC chose to partner with Shanghai Jiao Tong University to offer an executive MBA degree from UBC

Source: University of British Columbia

The University of British ColumbiaShanghai Jiao Tong University

Target: Senior manages in Chinese enterprises, joint ventures, and government

Model: Majority of classes taken in Shanghai at Jiao Tong University. The last few classes are taken in Canada on UBC’s campus

Graduates Over 300 Chinese have graduated from this program

School: Commerce and Business Administration

Sponsor: Team Canada trade mission to China, lead by Prime Minister jean Chretien and 9 provincial premiers

UBC Partners with Jiao Tong2

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BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

II. 5 Models of Partnering

CEIBS is a separate joint venture between Shanghai Jiao Tong Universityand the European Foundation for Management Development

Source: CEI BS

Shanghai Jiao Tong UniversityShanghai, China

Established 1994

Program Target: Senior executives

Program Length: 2 years, 22 4-day weekends

European Foundation for Management Development

Brussels, Belgium

Mission: Europe's forum for information, research, networking and dialogue on innovation and best practice in management development

As one of China’s most prestigious universities, shanghai Jiao Tong University has partnered with a number of foreign universities to offer MBA programs to Chinese students

CEIBS Joint Venture with Jiao Tong3

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Oakland University

Discussion Paper

II. 5 Models of Partnering

CEIBS has provided executive MBA degrees to 1,041 people, mostly men in manufacturing and telecom in either state run or foreign

Source: CEIBS

By Gender

Men

891

Women150

86%

14%

0% 10% 20% 30% 40%Oth

er

Con

stru

ction

Pharm

aceu

tical

Finan

cial

Gov

ernm

entT

radeT

elec

om

Man

ufac

turing

By industry By Sector

State Owned

46%

JV/ WOFE

41%

Govt.

10%

3%Private

= 1,041 students

3

CEIBS Information for 1995-2000

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BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

II. 5 Models of Partnering

The Jesuit Consortium, a group of 26 universities and colleges, has partnered with Tsinghua University to form BiMBA

Source: Jesuit Consortium

US Partnering Schools China’s Tsinghua University

Beijing International MBA

4

Jesuit Consortium and Tsinghua University Partnership

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BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

II. 5 Models of Partnering

This model allows the consortium to draw upon over 1,000 US professors while offering a quality MBA degree from Fordham University

Program Basics

Date Formed 1998

Model Courses taught in China, with 3-week study tour in US at the end of the program

Instruction: US professors

Year 1

•First Executive Residency •Managerial Economics •Business Statistics •PKU Heritage Lecture Series No. 1•Global Issues Lecture Series No.1

Year 2 Year 3

Summer

•Business & Economic Environment in China

•Management & Organization Behavior•PKU Heritage Lecture Series No. 2•Global Issues Lecture Series No. 2

Winter

Fall

Spring

•Financial Management •Accounting for Executives •PKU Heritage Lecture Series No. 3•Global Issues Lecture Series. No. 3

•Marketing Management•Operations Management •PKU Heritage Lecture Series No. 4 •Global Issues Lecture Series. No. 4

•Entrepreneurship and Firm Growing•Global Legal and Ethic Issues•PKU Heritage Lecture Series No. 5 •Global Issues Lecture Series. No. 5

•International Trade and Finance •HRM and Leadership•PKU Heritage Lecture Series No. 6 •Global Issues Lecture Series. No. 6

•Innovation & Change Management •MIS & Information Technology

Management •PKU Heritage Lecture Series No. 7 •Global Issues Lecture Series. No. 7

•Global Policy & Strategy •Cross Culture Management

&Negotiation

•3-week study tour in US

Source: Jesuit Consortium, Baker Strategy Group

4

BiMBA Program Structure

Page 32: Executive Education Opportunities In China

October 1, 2001 Page 31

BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

II. 5 Models of Partnering

Delter Canada formed a separate entity that offers content from Scotland universities and partners with local institutes in various Chinese cities

Source: Delter

US Consortium Chinese partner Institutions

Beijing Beijing Electric Power College

Shanghai The Shanghai Metallurgy College

ChengduThe Chengdu Hydro Electric Power College

WuhanWuhan Railway Vocational Technical College

ChangchunTBD

北京

上海

程度

武汉

长春

Delter International

Business Institute

James Watt College

Scotland

Napier University

Scotland

Delter Canada

Canada

5

The Delter Canada Model

Page 33: Executive Education Opportunities In China

BAKERSTRATEGY GROUP

Page 32October 1, 2001

Discussion Paper Executive Education Opportunities in China

Page 32

Oakland University

III. OU EMBA-HCM Program

Page 34: Executive Education Opportunities In China

October 1, 2001 Page 33

BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

III. OU EMBA-HCM Program

In 44 years, Oakland University has grown to become one of the top universities in the Midwest

Overview of Oakland University

Brief history OU today

Enrollment 15,875• Undergraduate 12,529• Graduate 3,346

Academic Programs• Baccalaureate 110• Graduate and Certif. 69

Other facts• Undergraduate class size 30• Student:Faculty Ratio 19:1• Faculty with Ph.D. 90%• Kresge Library 688,000

volumes

1957 Michigan State University created from Wilson land and money donation

1959 First students enrolled to Michigan State University – Oakland

1963 Named changed to Oakland University

1970 First Board of Trustees

1995 Strategic Plan, 1995-2005, was developed

1997 Creating the Future launched

1999 Full re-accreditation from the Central Association of Colleges and Schools

2000 Ranked among the top ten regional public universities in the Midwest for 1999/2000 by U.S. News and World Report

Source: Oakland University

Page 35: Executive Education Opportunities In China

October 1, 2001 Page 34

BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

III. OU EMBA-HCM Program

OU currently offers 5 graduate degrees from the School of Business Administration, 1 of which is an executive MBA in health management

Source: Oakland University

Graduate degrees currently offered

Executive MBA• Health Care Management

OU Schools

• Accounting• Business Economics• Entrepreneurship• Finance• Health Care Management• HR Management

• International Business• Management Information

Systems• Marketing• Production/Operations

Management

MAcc• Public Accounting• Managerial Accounting• Systems Accounting

MBA (and accelerated MBA)

Post Master Certification Programs• Accounting• Business Economics• Finance• HR Management• International Business

• Management Information Systems

• Marketing• Production/Operations

Management

MS in Engineering Management

OU Graduate Degrees in the School of Business

Page 36: Executive Education Opportunities In China

October 1, 2001 Page 35

BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

III. OU EMBA-HCM Program

The EMBA-HCM program involves 39 credits, 29 credits in core courses and 10 credits in elective courses

Source: Oakland University

Elective Course Credits

Forecasting in Health Care 2Quality Assurance in Health Care 2Cost Management in Health Care 2Government Policy in Health Care 1International Comparisons in Health Care 1Managing Cultural Diversity 1Hospital Administration 1Transforming the Health Care Organization 2Contracts & Negotiation in Health Care 1Outcomes Assessment in Health Care 1New Ventures in Health Care 1Facilities Planning and Evaluation 1Project Management in Health Care 1Managing Technology in Health Care 2Data Warehousing in Health Care 1Health Care Marketing & Consumer Satisfaction 2New Health Care Services Development 1Hospital Finance & Managed Care 3Mergers & Acquisitions in Health Care 2

Choose a total of 10

Core courses Credits

Statistical Methods 2Financial & Managerial Accounting 3Managerial Economics 3Health Economics 2Teambuilding, Leadership, & Communication 2Human Resources Management 2Strategic Management 3Operations Management 2Healthcare Information Systems 2Legal & Ethical Issues 2Marketing Management 3Financial Management 3

Total 29

EMBA-HCM Program Courses

Page 37: Executive Education Opportunities In China

October 1, 2001 Page 36

BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

III. OU EMBA-HCM Program

These courses are taught by the School of Business 60-member faculty, who teach the graduate and undergraduate

Source: Oakland University

Professors

Barclay, Elizabeth A. Bazaz, Mohammed S. Braunstein, Daniel N. Dillon, Gadis J. Doane, David P. Esposito, Louis Farragher, Edward J. Fosu, Augustin K. Horwitz, Ronald M. Izraeli, Oded Kleiman, Robert T. Lauer, Thomas W. Mayer, Donald O. Murphy, J. Austin Murphy, Kevin J. Parameswaran, Ravi Peacock, Eileen Sahu, Anandi P. Schwartz, Howard S. Stano, Miron Tanniru, Mohan

Associate Professors

Bhargava, Mukesh Callaghan, Joseph H. Coppin, Addington M. Fliedner, Gene Folland, Sherman T. Henke, John W. Kim, John D. Mathieson, Kieran Mukherji, Nivedita Nathan, Kevin S. Parkash, Mohinder Pelfrey, Sandra S. Pisharodi, R. Mohan Theisen, Barbara A. Tracy, Ronald L. Wharton, T. J. Willoughby, Floyd G. York, Kenneth M.

Assistant Professors and Lecturers

Aigbedo, Henry Bangs, Joann Cardimen, Frank P. Carter, E. Vincent Deng, XiaodongFountain, James Ganesh, Usha Gbane, Ousmann-Alain, Jr.Heiple, Roger Isken, Mark Lee, Yong-Shik McGowan, Carl Miree, Cynthia Rajagopalan, Balaji Savage, Arline Setzekorn, Kristina Sharma, Sri Sidaway, David D. Simon, Mark Sugumaran, Vijayan Whitaker, Jim

OU School of Business Faculty

Page 38: Executive Education Opportunities In China

October 1, 2001 Page 37

BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

III. OU EMBA-HCM Program

There are 4 basic requirements for admission into the EMBA-HCM program, a criteria that can be easily adapted for

Source: Oakland University

5 years of experience in health care industryUndergraduate degree

Employee endorsement

GMAT score

1

2

3

4

4 General Requirements Other Information

• 30 applicants accepted each year to form “cohort group”

• Courses taught by faculty and health care practitioners

• All courses taken from MBA program

• Program length = 21 months

• Courses taught on alternating weekends:- Friday afternoons- Saturday, all day

EMBA-HCM Program

Page 39: Executive Education Opportunities In China

October 1, 2001 Page 38

BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

III. OU EMBA-HCM Program

Developing executive MBA programs in China would fit into Strategy 2 and Strategy 8 of OU’s Strategic Plan

Oakland University’s Strategic Plan, 1995-2005

Source: Oakland University

Encourage research,

scholarship, and creative activities

Ensure an undergraduate environment of

learning excellence

Strengthen graduate study responsive to regional and

national needs

Expand efforts to serve the

community

Environment rich in diversity, support

services and activities, and

sports activities

Develop and support areas of

institutional excellence

Create an empowered

community of diverse, unified, committed, and

motivated employees

Increase self-assessment activity

1 2 3 4

5 6 7 8

Page 40: Executive Education Opportunities In China

October 1, 2001 Page 39

BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

III. OU EMBA-HCM Program

Oakland University has 5 key strategic resources which enable OU to successfully offer the EMBA-HCM program in China

Source: Oakland University

Guizhou Relationship

Familiarity and Experience with China

Existing Accredited Executive MBA Program

Solid Core Faculty

International Orientation

1

2

3

4

5

Strategic Resources Implications

• Makes Guizhou area a natural geographic starting point• Allows existing framework to form basis for Pilot Program

• Enables OU to move quickly on a Pilot Program

• Provides a degree program that can be adapted for China

• Equips OU to successfully deliver needed courses

• Gives OU staff support to pursue programs in China

OU Strategic Resources

Page 41: Executive Education Opportunities In China

October 1, 2001 Page 40

BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

III. OU EMBA-HCM Program

OU’s 15-year relationship with Guizhou universities makes Guizhou a natural starting point for offering the EMBA-HCM program

Source: Guizhou Education and Research Network

Guizhou, China

Page 42: Executive Education Opportunities In China

October 1, 2001 Page 41

BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

III. OU EMBA-HCM Program

Almost 23,000 students learn from over 3,500 faculty in the nine top colleges and universities in Guizhou

Source: Guizhou Education and Research Network

Guizhou University 10,000 1,231 Yes

Guizhou College of Minority Nationalities 2,000 400* No

Guizhou College of Finance and Economics 2,100 290 Yes

Guizhou Institute of Technology 1,500 200* Yes*

Guizhou Normal University 3,000 432 Yes

Guiyang Medical College 1,200 324 Yes

Guiyang College of Traditional Chinese Medicine 1,000* 250* No*

Zunyi Medical College 1,000* 250* No*

Guizhou Institute of Education 1,000* 250* No*

School Students Offer MastersFaculty

Schools in Guizhou Province

Page 43: Executive Education Opportunities In China

October 1, 2001 Page 42

BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

III. OU EMBA-HCM Program

Depending on existing relationships, OU should start with a mutual partnership, and later develop into a Consortium Partnership

Model Evaluation Against OU Strategic Resources

Source: Baker Strategy Group

Overall

Model

StrategicResource

Guizhou relationship

China experience

1

2

4

Existing program

Core faculty

5 International orientation

3

IndividualBranch

JointEntity

ConsortiumPartnership

ConsortiumPartners

MutualPartnership

Page 44: Executive Education Opportunities In China

October 1, 2001 Page 43

BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

III. OU EMBA-HCM Program

One example of a consortium could be the 28 Michigan colleges that make up the Michigan Community College virtual Learning Collaborative

Michigan Community Colleges

Source: Oakland University

1. . . .

2. Bay de Noc Community College

3. Delta College

4. Glenn Oaks Community College

5. . . .

6. Grand Rapids Community College

7. . . .

8. Jackson Community College

9. . . .

10. Kellogg Community College

11. Kirtland Community College

12. Lake Michigan College

13. Lansing Community College

14. Macomb Community College

Michigan Community Colleges

15. Mid-Michigan Community College

16. Monroe Community College

17. Montcalm Community College

18. Muskegon Community College

19. Northwestern Community College

20.

21. . . .

22. Oakland University Community

College

23. St. Clair County Community College

24. Schoolcraft College

25. . . .

26. . . .

27. Wayne County Community College

28. West Shore Community College

Michigan Community Colleges

Page 45: Executive Education Opportunities In China

BAKERSTRATEGY GROUP

Page 44October 1, 2001

Discussion Paper Executive Education Opportunities in China

Page 44

Oakland University

IV. Next Steps

Page 46: Executive Education Opportunities In China

October 1, 2001 Page 45

BAKERSTRATEGY GROUP

Executive Education Opportunities in China

Oakland University

Discussion Paper

IV. Next Steps

The next steps are to agree to proceed and begin to coordinate with the School of Business

Source: Oakland University, Baker Strategy Group

Program Setup Program Growth

Initial Meeting

Mee

tin

gs Pilot Program

Pro

gram

s

Running Programs

EMBA-HCM EMBA others

10/04/01 Oct., 01 Nov., 01 Nov., 01 Fall, 02 Winter, 02 Fall, 03 Fall, 04

School of Business Meeting

Project Team

Project Team

Meeting inChina

Offiline meetings Issues Management

Sup

po

rtO

utc

om

es

CommunicationRelationship Management

Agree to proceed

Identify Project Team

Develop process and

timeline

Negotiate first Pilot Program

• Good student, faculty, and school feedback• Satisfactory financial results

Proposed Development Process

Page 47: Executive Education Opportunities In China

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