Executive Education Opportunities In China
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Transcript of Executive Education Opportunities In China
BAKERSTRATEGY GROUP
Oakland UniversityExecutive Education Opportunities in China
Rochester, MI
October 1, 2001
MAKE IT HAPPEN
Discussion
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
October 1, 2001 Page 2
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
October 1, 2001 Page 3
BAKERSTRATEGY GROUP
Executive Education Opportunities in China
Oakland University
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
October 1, 2001 Page 4
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
October 1, 2001 Page 5
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
October 1, 2001 Page 6
BAKERSTRATEGY GROUP
Executive Education Opportunities in China
Oakland University
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
October 1, 2001 Page 7
BAKERSTRATEGY GROUP
Executive Education Opportunities in China
Oakland University
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
October 1, 2001 Page 8
BAKERSTRATEGY GROUP
Executive Education Opportunities in China
Oakland University
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
October 1, 2001 Page 9
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
BAKERSTRATEGY GROUP
Page 10October 1, 2001
Discussion Paper Executive Education Opportunities in China
Page 10
Oakland University
I. Executive Education in China
October 1, 2001 Page 11
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
October 1, 2001 Page 12
BAKERSTRATEGY GROUP
Executive Education Opportunities in China
Oakland University
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%
October 1, 2001 Page 13
BAKERSTRATEGY GROUP
Executive Education Opportunities in China
Oakland University
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%
. . .
. . .
October 1, 2001 Page 14
BAKERSTRATEGY GROUP
Executive Education Opportunities in China
Oakland University
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
October 1, 2001 Page 15
BAKERSTRATEGY GROUP
Executive Education Opportunities in China
Oakland University
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
October 1, 2001 Page 16
BAKERSTRATEGY GROUP
Executive Education Opportunities in China
Oakland University
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
October 1, 2001 Page 17
BAKERSTRATEGY GROUP
Executive Education Opportunities in China
Oakland University
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
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
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
October 1, 2001 Page 20
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
BAKERSTRATEGY GROUP
Page 21October 1, 2001
Discussion Paper Executive Education Opportunities in China
Page 21
Oakland University
II. 5 Models of Partnering
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
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
October 1, 2001 Page 24
BAKERSTRATEGY GROUP
Executive Education Opportunities in China
Oakland University
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
October 1, 2001 Page 25
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
October 1, 2001 Page 26
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
October 1, 2001 Page 27
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
October 1, 2001 Page 28
BAKERSTRATEGY GROUP
Executive Education Opportunities in China
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
October 1, 2001 Page 29
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
October 1, 2001 Page 30
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
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
BAKERSTRATEGY GROUP
Page 32October 1, 2001
Discussion Paper Executive Education Opportunities in China
Page 32
Oakland University
III. OU EMBA-HCM Program
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
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
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
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
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
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
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
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
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
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
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
BAKERSTRATEGY GROUP
Page 44October 1, 2001
Discussion Paper Executive Education Opportunities in China
Page 44
Oakland University
IV. Next Steps
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
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