MGT489

Section: 10

Case - 6

A. M. Academy: Thirst for expansion

Prepared for:

Bobby Hajjaj
Lecturer, Department of Management
North South University

Prepared by:

Group #3

Fariha Rahman 121 0693 030

Urmi Rahman 122 0158 030

MSK Rownak Jahan 122 0679 030

Nabila Nur Us Saba 122 1030 030

Mohammad Tanvir Faisal 123 0922 630

Adnan Saquib Chowdhury 131 0577 630

Nafisa Anjum Amy 131 0880 630

M. A. Fattah Palak 132 1505 630

th
Date of Submission: 10 August, 2017

1
 Vision Framework
log
y

Mission Core purpose

I
n
t
Key
e
Issu
Vn
iss
es
ii
oo
nn
The Strategic intention
academ > Ideal planning for TOFEL, ILETS
y’s main and spoken English training
vision
was to > To provide supplementary
saturate services with updated information
the > To become a pioneer quality
market education provider in its industry
with
premiu
m
educati Core values
onal
services > Teach students by using updated
and to teaching method
prevent > Providing quality academic
monop coaching solution
olistic
structur
e, so I
that the
service d
can be
taken e
from all
classes o
of
people.
de ma cess.
1- Cen kin
trali Backdated
g
zed and
on pro
 inco
nsist
ent
teac
hing
met
hod
s
and
man
ager
ial
acti
ons.
3- Lac
k of
HR
and
man
age
men
t
trai
ning
.
4- Spe
cial
focu
s
only
on
exp
ansi
on.

2
 Goals
Explore the industry scenario, list down their competencies, and recommend best possible
ways to grow locally and globally providing quality education with networking and adequate
capital within shorter time period.

Trend:

1 There are 10,000 companies in the market among which 1000 are direct competitors.
So the market is very competitive.
2 Market is not growing in equal proportion to the existing competitors.
3 The need for the service will increase because economy of the country is rising.

4 People dominantly believe that it is a must to go to a coaching institution to do

Key Success Factors:

Future possibilities:

1 Global expansion will be required for the fact that many people from Vietnam,
Nigeria, Bhutan, Nepal are coming to Bangladesh.
2 Competition in job sector is increasing. The fact makes it clear that that people need
other technical skills and expertise to stand out and do well. So apart from theoretical
teaching, some training on other skills will be popular in coming times.

3 There is a rise in the number of tutors as more people are involving in the industry
individually to provide tuitions. So the bargaining power will reduce hopefully.

Outcome:

Emphasis in teaching method innovation, using technology to provide equivalent quality and
create distinct core value in all branches. Accept Paramanand’s proposal and spread globally
to capture the new market.

3
 Core competencies
1• Altaf’s teaching Style

2• Brand Value of Altaf Mahmood’s Academy

3• Financial ability to fund for the expansion

4• Network with Parmanand Kumar which will help Altaf to enter into the Nepal Market for
the expansion

Resource Based View

1 Exceptional tutors and capabilities outperformed competitors

2 Being debt free allowed them to carry marketing cost more freely and retain highly
qualified tutors.
3 Continuous training and expansion caused more cash flow
4 Focusing only academic service made them bigger brand than competitors.
5 Teaching method and innovative way of delivering lecture was not easy to imitate.

Focus Strategy
Among 3 generic strategies, A.M Academy follows focus strategy as they are providing
uniqueness perceived by students and also not charging them low price.

X- Factors
1 Convenient location
2 Qualified teachers

3 Security

4 Instruction materials

4
 Porter’s 5 Forces Analysis

(+) Leads to higher power

Result

The industry is not an attractive industry as buyer’s have a good deal of power over the price.
Entrance into the market is easy and many competitors exists with very little differentiation,
as a result, the product has become a commodity firms are competing over price. Other types
of firms also offer similar services hence the substitutes will also give a tough time. Although
the supplier power is not as high, their demand for higher wages can lead to lower margins.

5
 Synergy
1 Escalation of the brand value in Bangladesh and easy branding in Nepal.

2 Formation of other value adding facility to serve the Nepali students to come into
Bangladesh, this will lead to the advantage of extra profit stream.

3 Nepali students who are entering through AMA can do part time job like providing
tuition facilities which eventually can back up their higher pay demand by local tutor.

4 In a long run Nepali students who are willing to stay in this institution as a teacher can
help other Nepali students more efficiently through more understanding them by
communicating their own languages.

5 For the Nepali teacher’s there is little opportunities to turn out to be competition
because they are not the citizen of Bangladesh.

6 By developing the advanced teaching technique and financial capacity, AMA can
argue for opening proper University in Nepal to provide quality teaching at more
affordable budget.

Three Horizon of Growth

3 Horizon three: Expand globally

6
 Pestel Analysis:

(Considering global expansion in Nepal)

Element Driver of change

political Unstable government

Economic Unstable economy

social School enrollment rate

Technological Internet growth

Ecological Natural disaster

Legal Business law

Scenario Analysis:
Considering the drivers of change, we may conclude that expansion into this Asian country
will not be that viable.

7
 Recommendation
1. Do not fall in trap of price war but develop teaching methods make it the core
competencies.
2. Develop the teaching system/method which can be delivered by any good presenter if
trained properly. This will reduce the need for highly knowledgeable tutor.
3. According to PARTS the important element of the game of this industry is good tutors who
are asking for more payment. To change the player, set up research and development
committee consisting of knowledgeable tutors and Altaf Mahmud himself who will be
responsible for innovating the teaching system. Instead of holding lots of knowledgeable
tutors, implementing unified system to teaching will equalized the quality of teaching and
reduce the dependency on good tutors.
4. Enter the Nepal market and offer more value added services which will be very lucrative to
students willing to study in BD.
5. Arrange training session for the Nepali students who will come to BD for higher studies to
make them a part of AMA tutors.

Words Count: 889