ONLINE EXPORT OF ENGLISH TEACHING SERVICES TO BEIJING, CHINA

A Feasibility Study submitted to the

School of Management and Information Technology
of De La Salle-College of Saint Benilde

In Partial Fulfillment of the Requirements for thesis

CHAPTER 1: Business Description and Objectives
A. Business Description
Overview
In today’s increasingly globalized world, the English language is being increasingly seen
as the premier language for business (Harvard Business Review, Neeley 2012), and a
highly valuable skill for the modern day global citizen to learn. ​Leap Forward English
Institute (LFEI) ​will be centered on the online export of English teaching services to
potential consumers in Beijing, China. ​LFEI will be sourcing for English experts in the
Philippines, that will cater to the English learning needs of citizens in China. In addition,
the services will be customized to each of the students’ needs. The teaching headquarters
will be based in Pasay City, Philippines with the necessary equipment for online teaching.

With the growth of the internet, many entrepreneurs and organizations have been taking
advantage of using the world wide web as a medium for education and learning. Highly
esteemed educational institutions such as the Massachusetts Institute of Technology and
Harvard are offering online courses. Online tutoring is a particular industry that has seen
continuous growth in recent years (Business Wire, Staff 2018). With this in mind, the
proponents decided to capitalize on this growing industry and establish a business that
offers English tutorial services to an area where there is a demand for it.

The proponents have decided that the service is to be centered in Beijing, China since
Beijing is the capital and it is one of China’s main centers for international business. The
target market for the proposed service are middle to upper-middle class Beijing residents,
between the ages of 10-40.

The proponents aim to establish this business as a start-up due to the belief that they
can succeed without being a subsidiary of another company. The proponents would also
like to establish the service as a non-seasonal business, relying on constant demand for
the services rendered.
B. Business Objectives
● Achieve an increase of number of students by at least 10% by year one.
100 enrollees and an increase of at least 10 percent before the fiscal year ends is the
initial goal of the company. A growth of 10% in the first year will be a guideline for the
proponents in seeing the proposed business is becoming effective.
● To hire more Filipino language expertise by at least 5 in count by year two.
20 teachers for year one (1) and an increase of at least 5 in count before the fiscal
year ends is the initial goal of the company. The said increase in the first year will be
a guideline for the proponents in seeing the proposed business is becoming effective.
● Increase scope of market niche by 30% by year two.
The proponents have set an initial limit to the market niche to be tapped in the first
year in order to achieve the set of goals in a focused manner. Given that the entire
Beijing City is populated with 21.7 million people; a focus on the middle class, ages
10 - 20 is set. Once proven successful (positive lecture results, high customer
satisfaction, increasing no. of enrollees, progressive positioning of the company in the
industry) teaching to this market, the company will expand to older segments by
introducing lectures suitable to that specific learning needs and promotions --
organizational development.
● Increase of 5% in total net worth by year two.
In order to sustain the company, an increase of 5% as an initial goal for the net worth
is set to see if the proponents’ forecasts are attained. Therefore, leading to more
opportunities in the year to come and a continuous follow of the business plan will be
said advisable. To achieve this, progressive development shall be seen. Through the
achievement of all the objectives mentioned above, increase in net worth will certainly
take place. Also, through eliminating of debt incurred for capital.

C. Business Structure
Leap Forward English Institute ​will be classified as a corporation, mainly because the
business will be a separate juridical entity from the owners. Limited liabilities for the
shareholders and the assets are provided and protected under this business form. Due to the
corporation’s distinction from the owners, sudden deficiency or death of an owner will not
affect the operations of ​LFEI​.
 In addition, the proponents believe that a corporation structure would help in raising capital
for the business as it can be raised through the sale of stock. Another reason would be
increased credibility; many customers, partners and potential employees would only consider
working, or investing in a corporation, due to its public perception.

Leap Forward English Institute ​will have 5 incorporators with the info below:
Table 1.1: Incorporators Information
Name Nationality Residency
Deseo, Jewel Anne Filipino Nueva Ecija, Philippines
Lopa, Miguel Filipino Manila, Philippines
Piol, Kimberly Ann Filipino Nueva Ecija, Philippines
Roxas, Matthew Filipino Manila, Philippines
Villanueva, Franchesca Anne Filipino Manila, Philippines

Leap Forward English Institute ​organizational structure is pictured below:

Figure 1.1

Under the usual set up, the Shareholders will be appointing the Board of Directors;
whom will then appoint the CEO. For the operations of the company, the CEO will be having
four (4) downlines - Finance Director, Human Resource Director, Operations Director, and the
Communications Director.
 Finance Director​, together with her accountant and office support, are in charge of the
daily and long term expenses and investments of the company. It is their responsibility for all
areas related to financial reporting and analysis. Also, it is their role to report to the Board all the
financial status of ​Leap Forward English Institute to ensure that cash flows are on track. In
addition, other accounting activities such as general ledger preparation, year end audit
preparation and the support of budget and forecast activities are part of positions’
responsibilities.

Human Resource Director​, together with her training group, recruiting team, and office
support for payroll, benefits, etc. are in charge of the control of the manpower to be exported via
online services. It is their role to source for Language experts and in training them to meet the
standard requirement to meet the quality set by the company.

Operations Director​, together with the language experts, are responsible in doing the
day-to-day services for the clients abroad. It is expected of them to do their tasks under the
standards set; and, it is the role of the Director to ensure that everything is running smooth.

Communications Director​, together with her public relations and customer support
downlines are responsible in ensuring that all inquiries are answered well to maintain the
positive image of the company.

D. Company Location
The head office of ​Leap Forward English Institute ​will be placed in Pasay City, Philippines
for efficiency by providing good environment to the employees. Pasay City has developed and
progressed rapidly during the past years as they receive awards of 3rd place in Overall
Competitive Index in 2018 and 1st in economy dynamism award. Pasay City is also
convenient for having terminals of buses, jeeps, and uv expresses. The company doesn’t need
a large space since it’s only an administrative office. It only needs a space that is enough for
the employees to work comfortably with personal space and is well designed to increase
individual and team productivity. T​he proponents ​chose to rent a private office in Five Ecom
Center Building, Pacific Drive Extension near Mall of Asia that provides good ambiance that
could captivate applicants’ interest more.
 Figure 1.2: Office Location

Source: Google Maps

Location Analysis Worksheet

Table 1.2: Assessment of location

Location Price Rental Safety Accessibility Labor Force Cost

Makati City 7 10 7 10 10

Manila CIty 10 7 9 10 10

Pasay City 8 9 10 10 10

Quezon City 9 8 8 10 10

Scale of 1-10 (10 as the most effective)

● Price Rental

In terms of Price rentals, Manila city would have the cheapest rate but actually doesn't
have much fine office spaces to offer. The proponents rated Pasay CIty as second to
Makati City that offers high priced spaces. Regardless of cost, pasay city offers a lot of
commendable private offices. T​he proponents ​chose a building that provides an inviting
and flexible workspace with an acceptable price.

● Safety

In terms of crime rate as of September 2018, Makati City has a moderate level of crime
with 40.09. Pasay City with 63.89 high level of crime rate, Quezon City with 65.00 and
Manila with the highest level of crime rate with 67.04.

Figure 1.3: Crime and Safety Index

Source: Numbeo Site

● Accessibility

Business strategy expert Dr. Jack Jacoby from the Jacoby Consulting Group says
choosing the right location depends completely on the kind of business it is. We don’t
look for customers in the Philippines but rather we look for effective english teachers. If
 some are unlikely to use transportation, the target head office will be accessible for
them. Nevertheless, if they use transportation going to the location, it would also be
convenient for them considering it’s near the mrt-lrt connecting stations, terminals of
buses, jeeps, and uv expresses.

● Labor Force

As of September 2018, the minimum wage in Metro Manila in Non-Agricultural sector is

P512.00.

Figure 1.4: Minimum Wage

Source: DOLE

● Cost
Based on Meralco, As of September 2018, the electricity charge in Metro Manila is
P5.271/kwh (kilowatts per hour).

E. Vision Statement
To become a company that helps people ​improve their individual skills and self-worth, and
to people a chance at getting opportunities in the Global Industry by providing a service that
teaches the Universal language to break language barriers.
F. Mission Statement
To provide a quality English teaching service that caters to our clients’ needs so that they
may avail of our services without the worry of conflict, and enable them to participate in the
Global Industry.

G. Ansoff Matrix
Table 1.3: Ansoff Matrix

Existing Service New Service

Existing
Market Penetration Product Development Strategy
Markets

New
Market Development Strategy Diversification Strategy
Markets

The proponents attempt to increase market share by implementing an existing service in an

existing market with online english teaching services. China has already implemented an
english curriculum in most of their schools, there are also other existing english teaching
institutions there, and with the technology we have today there are already companies and
institutions offering english teaching services online as well. The proponents, on the other
hand will be targeting those people who have missed that chance or might not get what they
need from those other options and opportunities.

H. Conclusion
The proponents will be sourcing for English experts in the Philippines, who will cater to the
English learning needs of citizens in China. The proponents will also ensure that all
employees have met the required standard to ensure that the quality of service to be
provided will be secured. The services rendered will be customized to each of the students’
needs​. ​Teaching headquarters will be based in Manila, Philippines with the necessary
equipments for online teaching. The proponents will be flexible for both the clients and the
language experts’ needs as well.
CHAPTER 2: Marketing Aspect
A. Marketing Objectives
➢ Establish brand awareness for LFEI during the first six months of business.
Not only does this bring students to LFEI for the first time, but it encourages them to keep
coming back and maybe even refer their friends or family, therefore, attracting new
customers. This will be done through LFEI’s logo, advertisements (such as flyers and
infographics), hiring influencers, social media, and promotional discounts.

➢ Improve service ratings after six months of business.

After six months of service, the proponents will determine and analyze LFEI’s strengths and
weaknesses by collecting feedback from current and former students. The proponents will
then continue to play LFEI’s strengths and address weaknesses to improve the quality of
the service.

➢ Increase the profitability of LFEI by year two.

The proponents seek to reduce costs and boost productivity by cutting unnecessary
expenditures and streamlining the service processes to help plan for change and growth of
LFEI

B. Country Profile
1. Product Market Fit
The proponents believe that China’s Digital English Market is a healthy industry to
invest in due to its significant market revenues and sustained growth. Last year’s
projected growth in the industry was 8.5% ​according to the new report by Metaari called
"The 2017-2022 China Digital English Language Learning Market." ​According to the
report; “​there are six major catalysts driving the current Digital English Language
Learning market in China: a booming online English tutoring industry, a dramatic increase
in private investments made to digital English companies, emphasis on digital English in
Chinese schools, the growing use of English in the higher education segment, strong
consumer demand for mobile Digital English Language Learning apps, and a high
demand for English for Specific Purposes (ESP).” Another factor which leads the
proponents to believe China is viable market; is that in the Asia-Pacific region, the Digital
English Learning revenues are largely coming from China which accounts for 61% of
 revenues. And by 2022, the report also stated that China will still retain a respectable
51% of the market revenue.

One other factor is that English is becoming the most prevalent foreign language taught
in educational institutions and foreign language centers (​Chang, 2006). This directly
shows the extent of demand China has, in the English learning market. Another factor is
the increase in government and non-government funding in the development and delivery
of the English curriculum, at all levels of education in China (Yuan, Tangen, Mills,
Lidstone, 2015), this shows that China is striving for its citizens to become proficient in
the English language.

2. Business Environment
a. Economic Outlook
The country now accounts for one-third of global growth. Over 800 million people
have been lifted out of poverty and the country has achieved upper middle-income
status. China’s per capita GDP continues to converge to that of the United States,
albeit at a more moderate pace in the last few years. According to the World Bank
“​Economic activity in China remains resilient, with GDP growing by 6.9 percent in
2017 and 6.8 percent in the first quarter of 2018.”
 Figure 2.1: China’s GDP

Sources: ​https://www.worldbank.org/en/country/china/publication/china-economic-update-may-2018
https://www.imf.org/en/News/Articles/2018/07/25/na072618-chinas-economic-outlook-in-six-charts

b. Ease of Doing Business

According to the World Bank, China is ranked 78th in the ease of doing business
index. The rank of China remained unchanged at 78 in 2017 from 78 in 2016. Ease of
Doing Business in China averaged 86.70 from 2008 until 2017, reaching an all time
high of 99 in 2012 and a record low of 78 in 2016.
Source​: https://tradingeconomics.com/china/ease-of-doing-business
 c. Government regulations and trading across borders
Trading across borders indicators in Beijing, China:

Table 2.1: Exports

Time (Hours) Cost (USD)

Documentary Compliance 14 $78

Border Compliance 29 $425

Time is measured in hours taken and Cost is per container in USD (Note that insurance cost and
informal payments for which no receipt is issued are excluded from the costs recorded).

Table 2.2: Documents Required

Bill of Lading Required

Certificate of origin/Commercial invoice Yes

Custom declaration of trust Yes

Custom export/import declaration Yes

Customs power of attorney Yes

Packing list Yes

Terminal Handling receipt/Contract Yes

Import licence/Inspection declaration No

Telex release guarantee letter No

Source: World Bank. 2017. Doing Business 2017: Equal Opportunity for All. Washington, DC: World
Bank. (​http://www.doingbusiness.org/content/dam/doingBusiness/country/c/china/CHN.pdf​)
 d. Consumer Expenditure
According to a global macroeconomic analysis firm called CEIC, China’s Private
Consumption Expenditure was reported at $4,699.40 billion USD in December, 2017.
This records an increase from the previous number of $4,418.21 billion USD for
December 2016. China’s Private Consumption Expenditure data is updated yearly,
averaging $162.60 billion USD from December 1957 to 2017, with 61 observations.
The data reached an all-time high of $4,699.40 billion USD in 2017 and a record low
of $27.89 billion USD in 1957.
Source​: https://www.ceicdata.com/en/indicator/china/private-consumption-expenditure

C. Industry Analysis
1. Porter’s Five Forces
Figure 2.2: Porter’s Five Forces Model

T​he proponents have analysed the industry in the local sector due to the fact that the
competition will be based from the Philippines, together with the environment in the
target market, Beijing, in order to complete the data for the Porter’s Five Forces Model
using ​only​ the High and Low indicators.
Threats of New Entrants - HIGH
The threat of new entrants in this industry for Beijing, China is high due to reasons that
the Philippines is known for being highly competent in the use of English language,
therefore it is easily attainable for Filipinos to create a business as such. Second, other
countries are also capable of producing an online English tutoring service on a different
level of teaching. Third, no barriers and regulations are existing in this industry that can
impede those that are interested.

Bargaining Powers of Buyers - HIGH

Buyers in this case are the citizens in Beijing, China, that are willing to learn the English
Language through online services to be exported from the Philippines.

Figure 2.3: China’s Lifestyle

Source: Euromonitor International

Given the data presented on Figure 2.3, the high disposable income indicates that the
residents in China can afford extracurricular activities that can fit right the income
status. Therefore, the bargaining powers of buyers are high together with the fact that
there are many substitutes and industry players.

Bargaining Powers of Suppliers - LOW

Tutors, being the suppliers in this business, have a low bargaining power due to the
reason that, despite the abundant number (around 67% over the age of 5 nationwide
and nearly 82% in the NCR region alone, ​according to Philippine National Statistics)​ of
English speakers in the Philippines, it is difficult to acquire the necessary certifications
and licenses to be able to actually teach the English language to foreign students. In
addition to that, the quantity of Filipinos who can speak Mandarin is very limited. Given
that the company is aiming for a high-quality English tutoring institute, to be able to
communicate to the students through the student’s mother-tongue during the process of
teaching the English language is a must. That being said, the suppliers have a very
limited bargaining power.
Source:
https://www.investopedia.com/articles/personal-finance/012516/philippines-friendly-country-english-speake
rs.asp

Threats of Substitutes - HIGH

On site English teaching schools established in Beijing, China is the main substitute for
the services LFEI is offering. In addition, China has established in 1962 the learning of
English language starting in fourth (4th) Grade as an integral part of the curriculum
nationwide (Ruan & Leung, 2012), stating that learning primary English through the
Chinese Curriculum is also a substitute for the market.
All being said, these substitute pose a threat to the business because potential students
have an option of having a first-hand learning experience rather than through online
tutors.
Source:
http://www.ambientinsight.com/Resources/Documents/AmbientInsight_2015-2020_China_Digital_English_
Market_Abstract.pdf
http://www.academia.edu/4391576/Chinese_primary_school_EFL_curriculum_reform
Rivalry Among Industry Players - HIGH
Basis: Philippine Online Tutoring Services
Through the convenience and power of internet, anyone in the world can tap into the
Chinese market and teach the English language via internet. With over 200 well-known
online Language teaching companies all over the world.
Industry Players:
Top 3:
● China Online Education Group
● ITutorGroup
● New Oriental & Technology Group Inc.
Bottom 3:
● Simply English Language School
● 3D Universal Academy
● Keystone Academy
Source: https://www.goodairlanguage.com/non-native/

Industry Conclusion
Overall, despite the High level for New Entrants, Substitutes, and Industry Players,
Leap Forward English Institute is still considered to be feasible due to the reasons that
the demand is still high, and considered increasing, together with China’s huge
population and demand for English-speaking skills. Also, the supply of the tutors are
high indicating that increasing number of manpower can be exported online.
2. Industry Players
Table 2.3: Industry Players

MAJOR PLAYERS

Sales
Company Major CAGR
Volume Info Source
Name Brands (2013-2017)
(2017)

China Online 51Talk $82,054,000 115.01% https://51talk.invest

Education orroom.com/
Group

ITutorGroup TutorABC, $287,300,00 109.18% https://www.owler.c

TutorJR. om/company/tutor-
VipABC, group
VipJR,
TutorMing,
LiveH2h

New Oriental Koolearn $15,567,109 107.12 % http://investor.newo

Education & riental.org/investor-
Technology overview
Group Inc.

Table 2.4: Industry Players

COMPARABLE PLAYERS

Sales
Company CAGR
Major Brands Volume Info Source
Name (2013-2017)
(2017)

3D Universal 3D ESL $4,728,000.00 5.07% http://elsdirecto

Academy ry.com
 http://3d-univer
sal.com/en/cate
school/3d-gene
ral-english-cour
ses

Keystone Keystone $2,520,000.00 3.32% http://www.keys

Academy Academy tonesubic.com

http://elsdirecto
ry.com

SimplyEnglish Simply English $​499,000.00 1.63% http://elsdirecto

Language ry.com
School
http://www.sim
plyenglishonlin
e.net/offers

3. Service Life Cycle

Table 2.5: Service Life Cycle

Hypothesis Proof Proof Source

Global market for digital http://www.ambientinsight.

English language learning com/Reports/DigitalEnglis
products reached $2.8 h.aspx
Growth billion in 2015. The
worldwide five-year
compound annual growth
rate (CAGR) is 6.0% and
 revenues will surge to $3.8
billion by 2020.

4. Demand Analysis
4.1 Major Service Users
4.1.1 The number of English learners in China has rapidly increased because
English is the language of world trade and communications, which makes its
study an important strategy in implementing internationally-oriented policies for
modernization in China. Major users of the service will be students residing in
Beijing, China that are willing to learn the English Language for such reasons
that can either be for achieving a higher form of education, business or work
related transactions, or just simply desiring to learn the said language. In
addition, English acts as a link between speakers of different languages and
also symbolises modernity and prestige (Kachru, 1983; Velez-Rendon, 2003).
Source:
http://repository.lib.ied.edu.hk/pubdata/ir/link/pub/Gil%20and%20Adamson%20_prepublication
%20version_.pdf

4.2 Demand Determinants

4.2.1 Demand Indicators
➢ English has become the dominant foreign language in the curricula of
educational institutions and in foreign language learning in China (Chang,
2006)
➢ Enormous government and non-government funding has been committed
to the development and delivery of the English curriculum at all levels of
education in China. (Yuan, Tangen, Mills, Lidstone, 2015)
➢ There are 50,000 English training institutes in China (CNBC, Tan, 2018)
➢ The growth rate for Digital English Language Learning in China is a healthy
8.5% and revenues will spike to $1.4 billion by 2022 ​(“Digital English Market
in China”, 2017)

4.2.2 Demand Drivers

 Despite a slowing economy, consumer spending continues to grow, spurred
not only by the large cohort of middle-class, free-spending younger consumers
but also by older consumers spending more to trade up to premium products
and services. Parents in China spend $15 billion a year on children’s
English-language learning. After-school tutoring accounts for 15% household
income in China. There are 18 million new babies born in China every year
and only thousands of teachers residing in Beijing to cater to their English
learning needs. (Mi, 2018)
Source: ​https://www.euromonitor.com/consumer-lifestyles-in-china/report

4.3 Table on Target population

Table 2.6: Target Population

Country Target Market

Year City Population
Population Population

2018 1,390,080,000 20,031,500 9,635,151.5

2019 1,399,688,980 20,329,300 9,778,393.3

2020 1,403,182,700 20,597,300 9,907,301.3

2021 1,408,948,400 20,835,900 10,022,067.9

2022 1,414,184,200 21,049,500 10,124,809.5

​ Source: Euromonitor

This table shows the current and projected population of the country and the city and the
target market population age of Leap Forward English Institute.
4.4 Table on Annual Disposable Income of Population
Figure 2.4: Annual Disposable Income of Population

Source: Euromonitor

The image above shows the Annual Disposable income of China. The average annual
disposable income in rural household is at $11,713 in 2017 and in Urban household is at
$19,498 in 2017. Decile 1 as the highest with 67%, decile 5 with 63% and the lowest is
decile 10 with 60%. The country’s income distance provide more scopes and
opportunities for companies at both ends of income distribution.

4.5 Table on Sales Volume

Table 2.7: Sales Volume

Period Sales Volume

2015 $21,073,621.8

2016 $30,944,506.25
 2017 $45,438,912.98

2018 $66,722,499.82

2019 $97,975,318.73

2020 $143,866,958

2021 $211,254,241.2

The table above shows the historical and projected Sales Volume of Online teaching Industry. It
indicates that the demand for Online teaching in China is increasing.

4.6 Table on Demand based on Capita per consumption

Table 2.8: Historical Demand based on Capita per Consumption

HISTORICAL

Data Current
Category Unit 2013 2014 2015 2016 2017
Type Constant

Socio-
Disposable
econo
income per Current
mic CNY 31,952.3 34,820.9 37,875.5 41,284.4 44,657.0
Capita by Prices
indicat
Sex (Male)
ors

Disposable Socio-
income per econo
Current
Capita by mic CNY 20,449.5 22,285.4 23,482.8 25,596.3 27,789.5
Prices
Sex indicat
(Female) ors

Source: Euromonitor
 Table 2.10: Projected Demand based on Capita per Consumption

PROJECTED

Data Current
Category Unit 2018 2019 2020 2021 2022
Type Constant

Disposable
Socio-
income per CN Current
economic 48,614.0 52,945.9 57,664.8 62,258.0 67,061.9
Capita by Y Prices
indicators
Sex (Male)

Disposable
income per Socio-
CN Current
Capita by economic 30,260.6 33,022.3 36,060.5 39,026.6 42,153.9
Y Prices
Sex indicators
(Female)

Source: Euromonitor
The tables above shows an increasing consumption per capita for the years 2013-2017
and it is also projected that it will increase more in the following years. The data indicates
how much chinese’ are willing to spend for the past and incoming years.

D. Target Market
1. Description of the Target Market
The target market for the proposed service are middle to upper-middle class Beijing
residents, between the ages of 10-40. Among China’s three most urban cities, Beijing,
Shanghai and Guangzhou; Beijing ranks as the city with the highest amount of middle
class urbanites, composing 55% of all Beijing-residents (Beijing Review, Schwankert,
2015). According to a report of the Chinese Academy of Social Sciences, middle class
Beijing residents earn an average of 256,016 yuan (US $39,528) annually, significantly
more than the average annual income of the middle class which is 200,000 yuan
($28,905). Due to a sizable income, China’s middle class spend generously on improving
their skills and knowledge, as well as on education for their offspring. China’s middle class
also tend to read and travel more. The Chinese middle class tend to travel domestically six
 times on average, and overseas twice; they also read an average of 12 books a year as
compared to the national average of 6 books annually. Another finding worth noting was
that middle class residents are generally employed in the private sector, as opposed to the
public sector.

2. Consumer Lifestyle
While the number of China’s young-generation consumers is growing, their income is
also rising rapidly. According to ​United Nations estimates, the proportion of the Chinese
population aged 25-34 will climb from 14.6% in 2010 to 16.7% by 2020. A survey
conducted by the ​Hong Kong Trade Development Council finds that group, brought up in
an age when China experienced immense economic growth, is more confident and
optimistic about their future income and spending than older generations. They buy
high-tech and new investment products, and have a liking for relaxing holidays, exercise
and entertainment. They also keep an eye on trendiness and personal style. They accept
the practice of “spending future money” and their lifestyle is more westernised than that of
older generations. Although China’s economic growth has slackened in recent years with
its growth rate entering a “new normal”, mainland middle-class consumers are still upbeat
about the prospects for their income and spending. According to the present survey, 81%
of the mainland middle-class respondents expect their income to continue to increase in
the coming two to three years. Regarding the impact economic slowdown may have on
day-to-day consumption, 51% of the respondents say they will spend more than before in
pursuit of a higher quality of life. Observing monthly spending by category, the CSRI
analysts find that Chinese consumers are spending more on upgrading their lifestyles, on
such goods and services as education, cars, property and mobile phones.

Parents in East Asian contexts, in particular Chinese parents, have been

well-documented for their zealous involvement in their children's academic development.
They spend $15 billion a year on children’s English-language learning. After-school
tutoring accounts for 15% household income in China. There are 18 million new babies
born in China every year and only thousands of teachers residing in Beijing to cater to
their English learning needs. (Mi, 2018)

3. Geographic
 Leap Forward English Institute will target to export service to Beijing which is the capital
of the People's Republic of China, the world's third most populous city proper, and most
populous capital city. It is one of the world's leading centres for economy and business,
education, and more. The Land Area of Beijing is 16,411 km2 (6,336 sq mi).
Beijing’s current population is 20,031,500 and predicted to increase in the next years.
Beijing’s Population density is more concentrated with 14,276 people per square mile
(5,512 per square kilometer).

The target city has large seasonal temperature differences, summer with hot and humid,
while winter is cold and dry. Spring and autumn are short and cool. 75% of the annual
precipitation is concentrated in summer from June to August, with frequent showers in July
and August. The coldest month is January with an average of -4 °C (25 °F), and the
hottest month is July with an average of 26 °C (79 °F).

4. Demographic
China’s total population is estimated at 1,379,302,771. The country’s median age is 37.4
years, with the male age averaged at 36.5 years and the female median age at 38.4 years.
The population growth in 2017 was recorded at 0.41%, with 12.3 births per 1000 people
and 7.8 deaths per 1000 people. The average Chinese citizen’s life expectancy is 75.7,
while males have a median life expectancy of 73.6 years and females have a life
expectancy of 78 years (CIA World Factbook, 2017)

Figure 2.5: China’s Population

 In terms of urbanization, a total of 59.7% of the population live in urban locales,
with a growth rate estimated at 2.3% annually. Driven by the desire to migrate to urban
centers, China’s urban population has increased by 500 million people in the past three
decades. Today, China has more than 100 cities with a population exceeding 1 million.

Figure 2.6: Population

 Among the China’s major cities, Beijing is known as the educational center of
China. Citizens in Beijing have the highest educational attainment compared to
anywhere else in China. Beijing is home to an extensive number of colleges and
universities, hosting several universities with international reputations, including Peking
University and Tsinghua University. By the end of 2013, Beijing had 89 regular higher
education institutions, while Shanghai, for example, had 68. Beijing’s educational
prestige lies not only on the prominence of the municipality’s educational institutions, but
also because of its high level of investment in all levels of education. For example,
Beijing’s student-teacher ratio in both primary and secondary education is far lower than
the national average. Its senior secondary education student-teacher ratio ranks first
among China’s 31 provincial divisions (with Hong Kong and Macau excluded), as shown
in Figure 2.6. Beijing’s government appropriation for funds per school student, as well as
its government appropriated budgetary funds for education per school student, put it first
among all regions at all levels, as shown in Figure 2.8 (OECD, Education in China,
2016).

Figure 2.7: Student Teacher Ratio Ranked by Teacher Level

 Figure 2.8: Government Appropriated Budget for Education Per Student in Regular
Primary School, Regular Junior School and Regular Senior Secondary School

5. Behavioral
Purchase Occasion
In 2014, Hujiang and Baidu did a survey on the purchasing patterns of people that buy
education content in China and reported that "Foreign language studies were by far the
most popular type of course, with a dominant 89.3 percent of respondents, followed by
those accessing courses in lifestyle and hobbies (13.8%), and career certification and
examination (13.5%).”
In 2015, mobile language learning products generated the highest revenues for suppliers
in China. Mobile language learning products in the form of educational apps and Mobile
Learning VAS subscriptions are now the top selling types of digital English language
learning products in China.
Source: “The 2015-2020 China Digital English Language Learning Market” by Sam S. Adkins

Benefits Sought
According to results published in November 2013 from a survey on the demand for
English in China (conducted by the 21st Century Education Research Institute in
Beijing), 70% of Chinese parents want their children to learn English. "Although 90% of
the parents believe that learning Chinese and traditional culture is more important than
English, their children still pay more attention to the study of English than Chinese." One
interesting result from the survey was the age children are introduced to English. Just
over 47% of children were between the ages of three and six when they were first
introduced to English. Out of all PreK-12 students taking English, the largest cohort was
three-year old children at 16.2%.
Source: “The 2015-2020 China Digital English Language Learning Market” by Sam S. Adkins

User Status
In the results of a survey of over 25,000 people in 2014, language learning supplier
Hujiang and Internet giant Baidu found that 80% of the people who bought online
education content in China were under 30, college educated, and employed in
white-collar professions; 59% of the buyers were female. Almost 90% of the respondents
said that they bought language learning content.
Source: “The 2015-2020 China Digital English Language Learning Market” by Sam S. Adkins

Usage Rate
In 2015, consumers accounted for 54.8% of all spending on Mobile Learning products in
China. In 2020, consumers will account for a staggering 66.3% of all spending. In
January 2016, the China Internet Network Information Center (CINNIC), a government
Internet administration agency, reported that 50.3% (688 million people) had access to
the Internet in China and 90% of that access was via a mobile device. CINNIC reported
that over 200 million people in China use their phones on a monthly basis to access
Mobile Learning content in China. Language learning is in high demand in China, they
have 50,000 English language schools.
Source: “The 2015-2020 China Digital English Language Learning Market” by Sam S. Adkins

Loyalty Status
Online learning has become increasingly popular in China over the past few years.
Although China’s online education providers have been around since as early as 1998, it
wasn’t until the 2011-2013 period that the market really exploded. There are now around
2.6 new schools coming online every single day, which has made China’s online learning
market grow from around 500 institutions in 2012 to well over 4200 – and counting – in
2016. According to The China Online Education Report 2015-2020, the number of
people studying online in 2014 was estimated at a staggering 77,97 million.
Source: http://www.chinadaily.com.cn/china/2014-05/03/content_17480224.htm

Readiness State
China is the largest digital English language learning buying country in the world,
followed by the US, South Korea, and Japan. The aggregate growth rate for digital
English language learning products across six buying segments in China is a modest
2.8%. Revenues reached $938.6 million in 2015 and will climb to $1.0 billion by 2020. A
market with high revenues remains lucrative even with a modest growth rate.
Source: “The 2015-2020 China Digital English Language Learning Market” by Sam S. Adkins

Attitude Toward Product

China's online education industry has flourished following the government's relaxation of
the One-child policy, with English language providers enjoying robust demand. China’s
middle class place very high priority on education, this has created a huge secondary
market for educational goods and services. Consumers are most comfortable with digital
 goods and services. Parents will pay for digital education if they see the results in school
exams.
Sources: https://www.cnbc.com/2018/01/08/china-digital-education-market-english-teachers-in-demand.html
https://medium.com/human-learning/chinas-thirst-for-english-language-is-disrupting-traditional-lang
uage-providers-317711ff8f7a

6. Psychographic

Between 2016 and 2017, consumer spending increased by 5.6% (in real terms),
reaching CNY67,334 per household in 2017. Younger consumers tend to be the biggest
spenders, as well as the biggest borrowers, but their older compatriots are increasingly
becoming less frugal and less traditional in their approach to shopping, eschewing price
concerns and trading up, choosing products with quality and value.

“Chinese consumers are spending more on upgrading their lifestyles, on such goods and
services as education, cars, property and mobile phones,” according to a 2017 report from
the Credit Suisse Research Institute. In addition, they are “shifting their pattern of
spending to discretionary items. They are spending less on housing and food, but more on
travel and entertainment compared to other emerging markets”. For the most part,
members of the growing middle class are spending more on premium products rather than
less expensive mass-market products.

Young Adults and Middle Youth—aged 18 to 29 and 30 to 44 years-old,

respectively—are driving the country’s considerable and growing consumption rate and
the increasing demand for a wide range of modern goods and services. In 2017 these
cohorts combined accounted for 39% of the total population. Widely known as members of
the ‘Post-80s’ and ‘Post-90s’ generations, these consumers are in their peak earning
years and their disposable incomes continue to rise. They are generally inclined to spend
rather than save and do not hesitate to tap consumer credit options to buy what they want.

Young Adults are expected to become an even more formidable spending force as they
get older in coming years. According to a 2017 study of consumers by the Hong Kong
Trade Development Council, among those 25 to 30 years-old, 88% said they expect their
 future income to increase while 58% said that while they do not expect their income to
increase, they were nevertheless likely to spend more than before to improve their quality
of life. In addition, 37% of those 25-30 cited the desire to ‘follow trends and be an early
adopter’ as the reason they bought innovative or high-end services, a rate significantly
higher than their older counterparts. The survey also revealed “the proportion of
respondents in the 25-30 age group who have used ‘future money requiring interest
payment (excluding big-ticket items such as real estate and cars)’ is markedly higher than
that of older age groups”.

Source: (Country Report: Consumer Lifestyles in China, Euromonitor, 2018)

E. Service Information
1.1 N-S-P-S-USP Matrix
Table: 2.11

Chinese English learners need the service because

English is taught poorly in China despite it being
mandatory in their educational curriculum. Employers in
Need: China complain that only few graduates are prepared even
for the simple tasks of writing or responding to an English
email or answering business phone calls, much less
conducting trade negotiations with foreign clients.

People often opt for online learning for its convenience.

Students of LFEI choose their own tutoring schedules to fit
Situation: their everyday lives. They can take their sessions in the
comfort of their own home after school/work, or in between
breaks with their own computers/laptops.

Users of the service will most likely be high school students

in China. Chinese parents have high expectations for their
Person: children, wanting their kids to get into prestigious colleges.
English is a compulsory course in universities in China, all
students are required to complete.
 LFEI offers one-on-one English tutoring online.
Beforehand, students take an English proficiency test for
Service Description: the tutor see how much they know. Afterwards, the tutoring
sessions, and an oral exam after they’ve completed the
modules to test what they’ve learned.

LFEI offers a high quality and reliable service of English

Unique Selling
teaching with authentic Filipino teachers who have
Proposition:
tremendous work ethic and dedication.

1.2 B-A-F-F Matrix

Table: 2.12

Benefits Advantages

● Increase English vocabulary ● Service is customized to each of

● Become a fluent English speaker the students’ English learning
● Enhance pronunciation needs
● Improve international relations ● Online tutoring sessions are
● Gain employment opportunities conducted in real time

Features Functions

● Online tutorial services ● English proficiency test to

● Certified Filipino English tutors customize students’ learning
● LFEI Website needs
● Real time online tutoring
sessions
● Oral final examinations to test
what students’ have learned
 1.5 Brand Name and Logo

Figure: 2.8: Brand Logo

The image above shows the Leap forward English Institute’s logo. The proponents
based the colors of the brand logo on Six thinking hats which is a tool for being efficient and
effective individual in an organization. The yellow cater above the company name means
being logically positive. The company name and the cater below is color blue which means
discipline and focus. The two black caters represents the employees of being critic and
analysts. These equally proportioned caters represent the company’s asset of having
logically positive, disciplined, focused, and analysts people.

F. Marketing Mix
1. Product/Service
Leap Forward English Institute offers three (3) types of English Modules particularly for
Basic learnings, Intermediate and Advanced that will cater to the market in China, Beijing
City as the initial market. An entire course will be completed for about 37 hours. Services
will be rendered via an online platform - ​LFEI Software Interface​.

Table 2.13: Projected Schedule

Marketing Initiatives

Year 0: 2017 - Attend Educational Fairs

(preparation) - Create online websites
- Create online advertisements targeting Beijing, China
 - Acceptance of pre-enrollees

Year 1: 2018 - Introduction of LFEI in Beijing, China (website launch)

- Attend Educational Fairs
- Start spreading Feedback Forms
- Website enhancements
- Learning system enhancements
- Online advertisements targeting China

Year 2: 2019 - Attend Educational Fairs

- Increase of Market scope in Beijing, China
- Website enhancements
- Learning system enhancements
- Promotion of LFEI learning system
- Tap into Tianjin, China market
- Online advertisements targeting Tianjin, China
- Online advertisements for branding in China

Year 3: 2020 - Attend Educational Fairs

- Work on Tianjin, China market
- Online advertisements targeting Tianjin, China
- Promotion of LFEI learning system
- Work on negative Feedbacks and improvements

Year 4: 2021 - Attend Educational Fairs

- Work on negative Feedbacks
- Service and Learning System enhancements for Beijing and
Tianjin, China
- Online advertisements for branding in China

Year 5: 2022 - Attend Educational Fairs

- Establish a good branding in China by year end
- Online and offline advertisements for branding in China
 The table presented above outlines the marketing steps and goals LFEI will be targeting
from year of preparation to year 5. The table listed how the company is planning to improve
on the services offered together with the expansion of the captured market. Given that the
company is in the English Tutoring service, a focus on the Learning System enhancement
is seen on the table above, followed by online promotion as a primary tool for marketing.

The preparation year states how the LFEI focuses on exposure by attending the
Educational Fair on the said year until year 5. Presence on this fair can prepare the
company in identifying who the industry players are and who the target market is. In
addition, the creation of website is done during the preparation year as a prerequisite step
for spread online advertisement for year 1. Lastly, acceptance of pre-enrollees is done on
this year as a forecast for the first year of operation.

For year 1, the focus will be set on the website (service) launch and introduction of LFEI
English tutoring services in Beijing, China via online advertisements and other platforms.
Also, feedbacks are well accepted during this year and so on until the company is existing
and will start working on feedbacks the same year for company development.

The start of year 2 is all about working on the enhancements that are needed for the
company as preparation for tapping into the Tianjin, China market before the year ends. Of
course, online marketing will be set for Tianjin, China during the 1st quarter of year 2. The
online advertisements for branding in China is mainly to set the name in the industry to gain
trust from the market.

Since a new market is entered by LFEI, a focus on the Tianjin market is to be done on
year 3. As enhancements and advertisements are normally done by this time, together with
attending of Educational Fairs on a yearly basis.

Year 4 is all about gathering and working on the Learning System enhancements, with
the other services involved such as customer inquiries, website condition and other
feedbacks from both markets of Beijing and Tianjin, China.
 For year 5, a goal in establishing a good brand name in China is set. Once all are done
accordingly, the company will be able to achieve its goal. A continuous act in attending
Educational Fairs, promoting the company via online and offline marketing and in working
on the improvements needed are set from this point on.

2. Price
Table 2.14

Brand Tuition Rate Source

China Online Education 42 USD / session http://aa.51talk.co​m

Group

ITutorGroup 43 USD / session http://vipjr.com

New Oriental Education & 42 USD / session https://www.theseus.fi/bitst

Technology Group Inc. ream/handle/10024/94166/
Liu_Yang.pdf?sequence

3D Universal Academy 9,456 USD (24 weeks) http://3d-universal.com/en/

394 USD / week cateschool/3d-general-engl
ish-course

Keystone Academy 8,400 USD (24 weeks) http://www.keystonesubic.c

350 USD / week om/en/en-fee/

Simply English Language 110 USD / week http://www.simplyenglishon

School line.net/service

The table shown above is a representation of the top 3 and bottom 3 companies in the
industry and the tuition fee rate of the listed companies as a basis for Leap Forward English
Institute in computing and deciding for the applicable and feasible tuition fee rate.

As conclusion, the reasonable rate for this industry and with the type of service is around
42 - 43 USD, going with the rate of the leading companies catering to Beijing, China.
3. Place
With the estimate of 50,000 Engling Learning institutes catering to China with a
population of approximately 1.4 billion, states the opportunity of these institutes. As an
initial step, the proponents will target Beijing, China with a population of around 22 million
and with around 19 of the well known English tutoring establishments in the said city
[[Source: eslbase.com]]. As a belief that the students and young workers/entrepreneurs will
be the ones who will need the service to be provided by Leap Forward English Institute, the
proponents will focus on the said segments first.

LFEI will be exporting the service of English tutoring with the use of technology; an
online platform as a tool for exporting to China from the Philippines will be the flow of
conducting revenue for the company.

4. Promotion
Leap Forward English Institute will be promoted primarily through the use of online
advertisements so the Philippine based company can tap into the Chinese market. Listed
below are the marketing mediums to be used:

4.1 Online Advertisements

As an example of this is via facebook and website advertisements that LFEI can use
in order to spread word to the Chinese market that a new institute with a high-quality
teaching system is to enter the industry.
Examples below:
 Figure: 2.9: Facebook

Source: www.facebook.com

Figure 2.10: Website

Source: www.yahoo.com
4.2 Website
Website is the number one source of necessary information a potential client get get
from. LFEI will be providing a well detailed website with information to fill tabs such as
Contact Us, What We Do, Courses Offered, Fees, Testimonies, and Location
Services. ​Here, the proponents will include videos and photos of the company and
company services as one of the ways to portray to the clients that LFEI is a
trustworthy company, and as a way to give the ​potential​ client an overview of how the
company is.
4.3 Educational Fairs
The first attendance of LFEI in Educational Fairs is the most important because this
is where the company will know the industry players and clients. To promote the
company during Educational Fair is the main intention in attending due to the reason
that LFEI can first-hand promote the services and courses to be offered to potential
clients. Examples of the said Education Fairs are as follows:

4.3.1 China Education Expo

Figure: 2.11: Expo

Source: https://www.chinaeducationexpo.com/english/

4.3.2 Higher Education Expo China

Figure: 2.12: Expo

Source: https://10times.com/chee
 4.3.3. Linden Educational Services Fair - Beijing
Figure: 2.13: Fair

Source: http://www.boardingschooltours.com/our-fairs/times-venues-contacts.aspx

4.4 Brochures and fliers

These promotional tools are to be distributed in Beijing, China personally by hired
staffs of the company to increase awareness in the target market. Also, brochures and
fliers are to be given during Educational Fairs.
Examples Below:
Figure: 2.14: Brochures and fliers

Source: www.google.com - Kids Education

5. People
The primary service provided for by Leap Forward English Institute is made by
the staff hired, specifically the English experts (tutors) based in the Philippines. The said
expertise to be exported via an online platform to Beijing, China. Aside from the tutors,
another set of manpower needed for this company is the administrative staff in order to
keep the function of the company in good flow, e.g. Secretaries, HR Dept., Accountants.
Sourcing for the said required employees will start six (6) months prior the opening or
launch of the company to prepare and train them before the actual job performance are
needed. As additional information, a minimum contract of one (1) year is demanded for
employees with benefits (PagIBIG, PhilHealth, SSS), after a 3-month training or under
probation process.

For the company to ensure that the ​people​ hired are well equipped to do the task
required, processes prior hiring are set by the company to avoid hindrances in attaining
the company objectives and by keeping the high-quality standard.

6. Process
The process in order to ensure that the system and service are well placed, a
detailed procedure is presented in ​Chapter 3.1, ​stating how the company is planning to
go on with the steps from Student Registration to Processing of Certificate.

In addition to ensure the level of service is reliable and and consistent, LFEI will
provide a customer service system and standards to achieve the said goal.

7. Physical Evidence
The office or headquarters is one to be considered as the physical evidence of
Leap Forward English Institute due to reasons that although services are considered
intangible, the office to be located in Pasay, Philippines can provide the visitors a friendly
and trustworthy environment. The interior design, magazines and furnitures are some to
name a few for this type of physical evidence.

Reports and documentations can be considered as physical evidence also to

give assurance to investors and potential clients how the LFEI is performing.
G. Projected Sales
Table 2.15: Projected Sales

Target Target
City Population of Projected Projected Sales in
Period Market Market
Population Target Market Demand Volume
Ratio Share

2018 20,031,500 9,635,151.5 154162.42 48.10% 1.6% $66,722,499.82

2019 20,329,300 9,778,393.3 176011.08 48.10% 1.8% $97,975,318.73

2020 20,597,300 9,907,301.3 198146.03 48.10% 2.0% $143,866,958

2021 20,835,900 10,022,067.9 220485.49 48.10% 2.2% $211,254,241.2

2022 21,049,500 10,124,809.5 253120.24 48.10% 2.4% $310,205,727.7

The table above shows the forecasted data for the company. The target market
population was derived from the target age group and population of Beijing. The
projected demand is composed of target market population multiplied to target market
share. The projected sales volume were derived using the CAGR of 46.84% from the
historical data.

H. Conclusion
Leap Forward English Institute is will be exporting ​online English teaching
services​ to Beijing, China, initially. Amongst all the cities in the big population of China,
Beijing being the capital, means more opportunities for the LFEI for increasing brand
awareness. The schedule to work into the five (5) years of ​Marketing Projected
Schedule​ states that targeting Tianjin City as the second target city is achievable,
together with all the Marketing Mix for the first five (5) years.

The proponents have concluded in this section that residents in Beijing have
higher annual income than the country’s average rate, which states that the first target
city has a good potential. Also, the increasing high population of China, states that the
target country has potential to increase demand in the years to come.
CHAPTER 3: Technical and Production Aspect
I. Service Design and Process
a. Process Flowchart
Figure 3.1: Process Flowchart

b. Process Description
Initially, the process begins through the prospective student’s online registration on the
company website. After the registration, the firm will then wait until the payment of the
student is processed before beginning the lessons. Once the payment is processed the
lessons will formally begin. In the initial phase of the lesson plan, the student will take and
English proficiency test to determine the appropriate module for his or her proficiency in
speaking English. Once the student has taken the test, his or her grade on the test will
determine the appropriate course to take. Once the evaluation has been relayed to the
student, the student will be given a list of schedules to suit his or her schedule. Once the
schedule has been chosen the formal lessons will begin. After the completion of all the
tutorial sessions, the student will be given a final examination, to assess what he or she
has learned. If the student failed, the student will be recommended to redo, parts of the
course, wherein he or she had difficulty with. However, if the student has passed, he or
she will then be a certificate of completion and a survey to acquire feedback on the
company processes and module effectiveness.
 Module 1 (Beginner)
Objectives:
● Understand and use expressions that are very common in everyday situations, as well
as simple phrases designed to meet immediate needs.
● Introduce yourself and others, ask for and give basic information about your home, your
belongings and the people you know.
● Interact and communicate in minimally complex conversations with native speakers.
● To interact with natives in daily activities that, apart from asking for information, requiring
basic interaction: doctor, ask for directions, expressing simple opinions, ask for help.

Table 3.1

Day(s)/Hour(s) Grammatical Content Functional Content

Day 1 - Introduction to English

- English Assessment Test
2 hours

Total: 2 hours

Day 2-3 - Basic Phrases - Greet and say

- Important commands for goodbye.
1 ½ hours per day the class. - Introduce someone
and react when
Total: 3 hours presented.

Day 3-4 - Basic question - Asking for

- Survival phrases, forgiveness
1 ½ hours per day invitations, petitions - Giving thanks

Total: 3 hours
Day 4-5 - Alphabet - Pointing out when
- Basic concepts of one cannot be
1 ½ hours per day pronunciation and understood
intonation - Asking someone to
Total: 3 hours speak slower or
louder

Day 6-7 - Basic nouns - Spelling and to

- Adjectives request that
1 ½ hours per day - Verbs something be
spelled
Total: 3 hours - Request something
to be written

Day 8-9 - Days of the week, months - Identifying people,

and seasons places and objects
1 ½ hours per day - Numbers - Describing people,
places and objects
Total: 3 hours

Day 10-11 - Demonstrative nouns, - Referring to actions

pronouns and adjectives or the present
1 ½ hours per day - Possessive nouns, - Referring to plans
pronouns and adjectives and the future
Total: 3 hours

Day 12-13 - Adverbs of place - Expressing

- Basic prepositions of agreement and
1 ½ hours per day place disagreement
- Expressing
Total: 3 hours knowledge or
ignorance
Day 13-14 - Auxiliary verbs - Expressing yourself
- Regular verbs by asking whether
1 ½ hours per day - Irregular verbs you may or may not
do something
Total: 3 hours - Expressing yourself
through taste or
pleasure

Day 15-16 - Basic modal verbs - Expressing yourself

- Reflexive verb through desire and
1 ½ hours per day need
- Invitations and
Total: 3 hours offering things.
- Accepting or
rejecting invitations
or offers

Day 17-18 - Conditional tenses (Types - Starting and ending

1, 2 and 3) a speech
1 ½ hours per day

Total: 3 hours

Day 19 N/A - Ways of greeting

and presentation
1 ½ hours per day - The use of the
language in various
Total: 1 ½ hours social situations in
the English Speaking
World
Day 20 - Review for the final - N/A
examination
1 ½ hours per day

Total: 1 ½ hours

Day 21 - Final Exam - N/A

2 hours per day

Total: 2 hours

Total Hours: 37 hours

Module 2 (Intermediate)
Objectives:
● Express yourself with reasonable fluency about past, present and future events, as well
as a variety of topics that are of interest to you.
● Answer, ask, summarize, communicate and offer your opinion on topics of interest or
everyday, although ask to be repeated sometimes when the speaker speaks very fast.
● Understand broad, simple and brief speeches.
● Find and understand information to achieve a goal such as guiding oneself in the city,
renting a car, instructions for cooking a dish, etc.
● Express emotions and respond to feelings such as surprise, happiness, interest,
indifference.
 Table 3.2

Day(s)/Hour(s) Grammatical Content Functional Content

Day 1 - Introduction to
intermediate module
2 hours - Refresher test for
previous beginner
Total: 2 hours module

Day 2-3 - General review of the - Comparing people,

previous module places, objects and
1 ½ hours per day situations
- Expressing one’s
Total: 3 hours opinion about
something or
someone

Day 3-4 - Expansion of irregular - Asking for the

verbs degree of security
1 ½ hours per day - In depth expansion of - Asking about the
the first conditional obligatory nature of
Total: 3 hours doing something

Day 4-5 - Direct and indirect - Asking, denying

objects and pronoun and granting
1 ½ hours per day placement permission
- Imperfect tenses - Expressing
Total: 3 hours satisfaction and
desire
Day 6-7 - Extension of direct and - Expressing
indirect objects preferences
1 ½ hours per day - Present perfect, past - Expressing and
perfect and past asking for needs
Total: 3 hours indefinite

Day 8-9 - Days of the week, - Expressing

months and seasons physical
1 ½ hours per day - Numbers sensations and
pain
Total: 3 hours - Suggesting
activities and
reacting to
suggestions

Day 9-10 - Demonstrative nouns, - Reacting to a story

pronouns and with joy, surprise
1 ½ hours per day adjectives and interest
- Possessive nouns, - Congratulating
Total: 3 hours pronouns and someone
adjectives - Relating to the
elements and parts
of a speech

Day 11-12 - Adverbs of place - Asking for a word

- Basic prepositions of or expression that
1 ½ hours per day place is unknown
- Starting or ending
Total: 3 hours a speech
Day 13-14 - Auxiliary verbs - Referring to
- Regular present-tense actions or
1 ½ hours per day verbs situations from the
past
Total: 3 hours

Day 15-16 - Past indicative - Expressing

- Irregular negative intentions,
1 ½ hours per day conditions and
objectives
Total: 3 hours - Corroborating or
denying the
affirmation of
others

Day 17-18 - Present subjunctive - Expressing

- Imperfect subjunctive agreement or
1 ½ hours per day - Subjunctive mood vs. total/partial
indicative mood disagreement
Total: 3 hours - Indicating the
desire to keep
communicating

Day 19-20 - Review for final N/A

examination
1 ½ hours per day

Total: 3 hours

Day 21 - Final Examination N/A

2 hours per day

Total: 2 hours
 Total Hours: 37 hours

Module 3 (Advanced)
Objectives:
● Express yourself, describing and narrating fluently and almost effortlessly.
● Writing, clear and well-structured presentations on complex issues, expanding and
defending ideas with clear arguments and ending with an appropriate conclusion.
● Recognize, understand and follow an extensive discourse on complex and abstract
issues, even if it is not clearly structured.
● Participate, react, respond and ask questions on various topics, using the language with
flexibility and efficiency.

Table 3.3

Day(s)/Hour(s) Grammatical Content Functional Content

Day 1 - Introduction to advanced

module
2 hours - Refresher test for
previous intermediate
Total: 2 hours module

Day 2-3 - General review of the - Relating what has

previous intermediate been said by others
1 ½ hours per day module Relating information
through causal, final or
Total: 3 hours concessive
expressions

Day 3-4 - Imperfect subjunctive - Agreeing or

- Review of affirmative disagreeing with a
1 ½ hours per day and negative imperative proposal or idea
with pronouns - Justifying and arguing
Total: 3 hours an opinion
Day 4-5 - Review of subjunctive
mood (past, present,
1 ½ hours per day future)
- Review of classes of
Total: 3 hours conditional statements
Day 6-7 - Colloquial expressions
1 ½ hours per day
Total: 3 hours
Day 8-9 - Pluperfect subjunctive
- Frequently used prefixes
1 ½ hours per day and suffixes
Total: 3 hours
Day 9-10 - Connectors (additives,
counter-argumentative,
1 ½ hours per day causal, consequential,
ordering of discourse)
Total: 3 hours
Day 11-12 - Correlation of time in the
indirect style
1 ½ hours per day - Derivation of nouns and
adjectives
Total: 3 hours
- Expressing judgments
and assessments
- Expressing possibility
or impossibility
- Preventing and
warning others
- Giving instructions to
others
- Knowing how to
participate in social
exchanges with a
degree of formality
- Summarizing what
someone else had
said.
- Expressing partial
agreement
- Expressing disinterest
and boredom
- Giving encouragement
and reassuring
another
- Recommending or
asking
recommendations from
others
Day 13-14 - Comparative - Relating moments
constructions from the past
1 ½ hours per day - Neutral pronouns - Showing and
expressing skepticism
Total: 3 hours

Day 15-16 - Synonyms and - Formulating

Antonyms hypothesis in the past
1 ½ hours per day - The accentuation and and present
general rules of spelling
Total: 3 hours

Day 17-18 - Reading and - Arguing/debating a

interpretations of short point Summarizing and
1 ½ hours per day literary texts. argument

Total: 3 hours

Day 19-20 - Review for final N/A

examination
1 ½ hours per day

Total: 3 hours

Day 21 - Final Examination N/A

2 hours per day

Total: 2 hours

Total Hours: 37 hours

II. Managing Total Quality
a. Quality Control
Leap Forward English Institute will ensure that the process flowchart will be followed
accordingly with provided checklists mainly due to the reason that high-quality service is
what the company aims to offer to clients, not just in terms of teaching, but also to the whole
experience in engaging with LFEI. Smooth flow from registration of students to handing of
certificates is the company’s goal by allocating experienced and well-trained employees that
will handle every stage in the Process Flowchart and placing of system that suits best the
stages.

Leap Forward English Institute​’s goal is to teach top-quality English given the demand in
China. Given this, the company has provided a standard for Quality Control for the
manpower use and to be followed in order to keep and improve on the positive brand image
the company is aiming for.

Listed below are the standard required by ​Leap Forward English Institute:

1) Certification from ​A.

Certification either from ​B.​

Table 3.4
TITLE DESCRIPTION
A.1. HSK The Chinese Proficiency Test (​Hanyu Shuiping Kaoshi - HSK​) is
China's national standardized test for Chinese as a foreign language.
It has been designed and developed by the Beijing Language and
Culture University to assess the Chinese language proficiency of
non-native speakers.

B.1. TEFL T​EFL (Teaching English as a Foreign Language) certificate qualifies

teachers to teach English to students in countries where English is not
the first language.
 B.2. CELTA CELTA (Certificate of English Language Teaching to Adults) is the
most highly recognised and regarded initial English teaching
certification worldwide. It’s awarded by the University of Cambridge’s
English Language Assessment.

B.3. TESOL TESOL (Teaching English to Speakers of Other Languages) includes

the aspect of both TEFL and TESL, meaning this certification allows
the holder to teach teaching English in countries where the English
language isn’t so widely used in day-to-day lives, such as China and
Russia (TEFL) ​and focusing on teaching English to people who, in
addition to their native language, use English in their daily lives, for
example, in India (TESL).

2) A Bachelor’s Degree together with transcript of records

3) Two (2) years of post - graduate work experience
4) Required Language(s): English and Chinese
5) Excellent in both oral and written language communication skills.
6) Well-versed with grammar
7) Can deal with both young and adult (foreign) students

Other Requirements:
1) NBI Clearance
2) Health Clearance together with PhilHealth registration
3) Birth Certificate
4) PagIBIG registration
5) BIR Forms together with TIN no registration

Items listed above are prerequisites before hiring an aspiring teacher under ​Leap
Forward English Institute​. The said licences on ​Table 3.4 ​are indicators that the applicant
has gone through the proper processes and examinations required by the organizations.
HSK, TEFL, CELTA, and TESOL because these are the top licenses suitable for this market
niche and highly-regarded in the industry. In addition, a Bachelor’s Degree and
post-graduate experience are required due to reasons that the company is aiming for
top-quality teaching services; therefore, a good-profiled and well-educated representative is
mandatory for the company. The others listed are all to ensure that the applicant are
well-equipped to work in the field.

A high-standard requirements is in place to avoid hindrances for the company in

achieving a high position in the industry.

b. Quality Assurance Process and Procedures

In terms of processes for Quality Assurance (QA), the proponents have decided to adapt
to ​Kaizen​, a Japanese concept which means continuous improvement. A plan to instill the
said concept to the employees is in place to ensure that continuous improvement will be
attained in terms of manpower needed for the Process Flowchart. Also, the company will be
on the lookout for any system development available to increase efficiency. QA Audits will
also be implemented to confirm operational and maintenance procedures are being properly
implemented.

Quality Assurance is in place to ensure that those hired have gone through the
processes in order to avoid complications in the day-to-day operations of ​Leap Forward
English Institute.

Listed below is the procedure for sourcing staff (tutors) that will represent the company:
1. Application Processing
Receipt of application forms, resumes and requirements of applicants.
2. Interview
Evaluation of oral and grammar ability of the applicant.
Evaluation of what the applicant can do for the company.
Examination of applicant’s personality.
3. Examination
Personality test, a written examination for the applicant to gain insight if the
interaction style, personality traits, and behavioural tendencies of the individual is
suitable for the company.
Proficiency test, to examine the applicant’s skills for the job - oral and written.
 4. Processing of applicants’ results
Assess applicant full-process result, whether fit or unfit for the position.
5. Training
Training is in place to fill any minor deficiency by the potential employee.
To layout company guidelines in doing works.
6. Hiring
Giving of schedules.
Laying out of house rules.
Preparation for first day.

III. Operation Facilities Requirements

a. Location
Figure 3.2: Office Location
 Figure 3.3: Office Location

The company is intending to rent an office space in Five Ecom Center Building, Pacific
Drive Extension, Pasay City. The proponents decided to locate our office in Pasay city since bus
and jeep terminals are in there as well as the connecting stations of LRT and MRT.
b. Office Layout
Figure 3.4: Office Layout

Figure 3.5: Office Layout

 The office of ​Leap Forward English Institute will have 1 conference room, office of the
HR department with an interview room inside the office, Office of the Department of Finance, 1
pantry, 2 comfort rooms for male and female, and a big space for teachers working station.

c. Office Equipment
Table 3.5: Office Equipment

Item Picture Cost

Php 17,495

Computers
Total:
Php 559,840

Quantity: 32

Php 1,799

Headphones/Microphones
Total:
Php 57,568

Quantity: 32

LED TVs Php 11,750

Quantity: 1
 Php 4,985

Printer
Total:
Php 9,970

Quantity: 2

Php 2,899/per
month
WiFi Router
Total:
Php 34,788

Quantity: 1
 Php 99/per
month

Total:
Telephone
Php 4,752
(1 year)

Quantity: 4

Refrigerator Php 7,700

Quantity: 1

Microwave Php 4,498

Quantity: 1
 Coffee Maker Php 1,129

Quantity: 1

Php 1,150

Fire Extinguisher
Total:
Php 3,450

Quantity: 3

Total Cost:
Php 695,445
d. Office Furnitures and Fixtures
Table 3.4: Office Furnitures and Fixtures

Item Picture Cost

Front Desk Php 6,999

Quantity: 1

Php 5,499

Waiting Area Bench Total:

Php 43,992

Quantity: 8

Computer Desk with

Php 82,000
Partitions

Quantity: 20
 Php 4,999

Office Desk
Total:
Php 24,995

Quantity: 5

Php 999

Computer Chair
Total:
Php 25,974

Quantity: 26

Php 4,000

File Cabinet
Total:
16,000

Quantity: 4
Conference Room Table Php 6,990

Quantity: 1

Php 1,200

Conference Room Chairs Total:

Php 14,400

Quantity: 12

Cupboard Php 4,899

Quantity: 1
 Php 1,999

Coffee table
Total:
Php 3,998

Quantity: 2

Php 999

Chairs
Total:
Php 11,988

Quantity: 12

Kitchen sink Php 3,499

Quantity: 1
 Php 9,799

Lockers
Total:
Php 78,392

Quantity: 8

Php 5,999
Sectional Sofa

Quantity: 1

Php 5,499

Air-conditioning Total:
Php 38,493

Quantity: 7
 Php 6,500

Toilet Bowl
Total:
Php 26,000

Quantity: 4

Php 6,999

Urinal
Total:
Php 13,998

Quantity: 2

Php 7,199

Sink
Total:
Php 28,796

Quantity: 4
 Php 1,210

Bathroom Mirror
Total:
Php 4,840

Quantity: 4

Php 550

Fluorescent Lights
Total:
Php 9,900

Quantity: 18

Php 280

Lights
Total:
Php 1,680

Quantity: 6

Total Cost:
Php 453,830
IV. Legal Requirements
Listed below are the requirements needed in order to establish ​Leap Forward English
Institute:
Table 3.6
No. Requirement Additional Info.
1 Security and Exchange Commission ● Register name at SEC website or at
(SEC) office in Mandaluyong City, PH
● Prepare, sign and notarize forms and
requirements
● Submit documents at SEC Office in
Mandaluyong City, PH

2 Barangay Clearance ● Fill up application form from Brgy. 76

● Prepare two (2) valid ID’s
● Proof of address: Contract of Lease
● Submit documents at Brgy. 76

3 Mayor’s Permit ● Fill up application form from Pasay

City Municipal
● Submit at the said municipal with:
○ Cert. Of Business
Registration from SEC
○ Brgy. Clearance Cert.
○ Two (2) valid ID’s
○ Proof of address: Contract of
Lease
4 Bureau of Internal Revenue (BIR)
● Submit at the RDO with:
● Fill up FORM 1903 from BIR RDO –
Pasay
○ Cert. Of Business
Registration from SEC
○ Brgy. Clearance Cert.
○ Business Permit from Mayor’s
Office
○ Valid ID’s
○ Proof of address: Contract of
Lease
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