BUSINESS EXPANSION BRIEFING REPORT –KING EDWARD VII COLLEGE

A review of business performance data

King Edward VII College started its operations in the year 2015. It is a RTO - registration

trading organization which imparts training and development programs to the students in the

field of business and management assignments. The ultimate aim of the college is to provide

high quality training and education services to fulfill the purpose of the students.

There are both vocational and educational trainings provided by the college. The training

program is nationally accredited and recognized. The topics and courses are designed by the

highly qualified staffs and are having extensive training and industry experience. The college

draws a mutual relationship with the industry and the other stakeholders to guarantee that the

itineraries are appropriate and congregate the demands of the clients and consistently satisfies

their expectations.

The mission statement of King Edwards - VII College states to provide high quality industrial

training stimulate participation and achievement.

The strategic objectives of the college are as follows:

A. To be a leader in educational and vocational training

B. To maintain and establish a high quality, state of art infrastructure and sustaining

employees

C. To be well managed, high performing, cost effective and profitable and responsible

D. To culture and develop the employees and resources of the college

Presently, the college is planning two new campuses in Australia, one in Brisbane and

another in Adelaide. The below business plan and trend analysis will help the company to get

an understanding of the future course of actions based on the projected financials.

 Financial forecast

Financial Statement for the year ended 31st July of King Edward VII College
Statement of Comprehensive Income
Year Year Year Year Year
Particulars 2017 (A) 2018 (A) 2019 (F) 2020 (F) 2021 (F)
£'000 £'000 £'000 £'000 £'000
Growth Rate   6% 9% 15%
INCOME          
Funding body grants 4386 4387 4650 5069 5829
Tuition fees and education contracts 132 113 120 131 150
Grants and other contracts 0 0 0 0 0
Other Income 218 185 196 214 246
Investment income 0 0 0 0 0
Total income 4736 4685 4966 5413 6225
           
EXPENDITURE          
Staff costs 3565 3648 3867 4215 4847
Other operating expenses 1053 970 1028 1121 1289
Depreciation 277 239 253 276 318
Interest and other finance costs 42 34 36 39 45
Total expenditure 4937 4891 5184 5651 6499
Deficit before other gains and losses -199 -206 -218 -238 -274
Loss on disposal of assets 0 -4 -4 -5 -5
Deficit before tax -199 -210 -223 -243 -279
Taxation 0 0 0 0 0
Deficit for the year -199 -210 -223 -243 -279
Actuarial gain in respect of pension schemes 458 311 330 359 413
Total Comprehensive Income for the Year 259 101 107 117 134
Represented by:          
Unrestricted comprehensive income 259 101 107 117 134
  259 101 107 117 134
Surplus for the year attributable to:          
Corporation of the college 259 101 107 117 134
Total comprehensive income for the year
attributable to:          
Corporation of the college 259 101 107 117 134
300

250

200

150

100

50

0
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5

Total Comprehensive Income for the Year

300

250

200

150 Total Comprehensive Income for

the Year
100

50

0
2017 2018 2019 (F) 2020 (F) 2021 (F)
The above from profit and loss account or income statement 2017 & 2018 are the actual

figures while 2019, 2020 & 2021 are the estimated figures. For this we have assumed a

growth rate of 6%, 9% and 15% respectively for the year 2019, 2020 & 2021.

At first for the year 2017 we can observe the total comprehensive income is £259000.

Compared to this in 2018 there has been a huge fluctuation and as a result decrease observed

in the Net income figures. It has touched £101000. It was mainly due to reduction in the

tuition fees and the other income and a sudden hike in the staff costs.

We have predicted a gradual increase in the total comprehensive income of the college from

2019 till 2021. This gradual increase is based on the assumptions. After an estimation of 15%

growth rate in the year 2021 we can observe that the total comprehensive income of King

Edward VII College is forecasted at £134000. This figure has incorporated into account the

increase in staff costs and other expenses which are also likely to grow on a year on year

basis.

A review of staff survey results

It is estimated that the students’ admission will increase by 10% annually. Hence, there will

be a huge requirement of additional human resources. Therefore, there will be appointment of

qualified and experienced teaching faculty and support and administration staffs equivalently

in our college. Enrolment will be monitored continuosly and the plan will be reviewed twice

annually. The management will decide whether the number of human resources is appropriate

to the levels of the enrolments.

Assessors and faculties along with administrative and support staffs will be hired on part time

casual contract basis. There has been shortage of sound trainers and assessors, but it is

evaluated on an emergency basis to allocate minimum two full time contracts very soon.
The key skills required are high level knowledge and adult learning skills and designing and

expansion of assessment tools. Presently, the college employs 24 staffs members and 14

trainers and assessors.

The below is the criteria to be implemented as a guide for choosing the level of human

resources contrasted to enrolments.

Enrolment per month Number of training and Number of administration and

assessment staff (FTE) support staff

1 – 50 1 0.5
51 – 100 1.5 1
101 – 150 2 1.25
151 – 200 2.5 1.5

A review of student feed back

The students’ achievements and performances as on 31st July 2018 will help to judge the

students feedback about the King Edward VII College:

Starts Achievement Retention% Pass Rate % High Grades

Rate % %
Whole College 1609 87.1 92.2 94.5 39.8
A2 (Modular) 260 91.9 97.7 94.1 32.2
A Level (Linear) 751 83.6 89.3 93.6 29.5
Academic 1011 85.8 91.5 93.7 30.2
Vocational 598 89.5 93.3 95.9 56.1

By observing the above chart and particularly the category whole college it seems that that

pass percentage is very high at 94.5%. The high grades percentages achieved are 39.8%. Also

the students pass percentage rate of more than 90% in all the categories i.e. A2 (Modular); A

Level (Linear), Academic, Vocational depicts that the efficient teaching faculties, the
upgraded courses and the industrial exposure of the college are the factors which is

encouraging the students to learn more.

Business problems

The major business problems of King Edward VII College are as follows:

1. Reduction in government surplus and reduction in national college and universities

funding.

2. Substantial pay hike of the teaching and support staffs by 1% which is an additional

burden for the college.

3. Increase by 1% in the TPS – Teachers pension scheme and LGPS – Local government

pension scheme is an extra cost for the college.

4. Failure to comply with the planned academic conversion and reviews will be a

question on the college’s ability.

5. Brexit is a much more concern for the college as it will put the college’s budget under

pressure.

Identify further sources of information on VET

The quality of the college is met through the national VET Quality framework and striving

towards a continuous upgrading of the process. Our clients are the students and the main goal

is to continuously try to develop the skills and knowledge of these students and make the

industry ready. They are trained in such a way that they become job ready and are able to

competently commence their preferred role in a spacious range of business areas.

Analysis of trends

Observing the gradual enhancement in the comprehensive net income of the college after a
decline in 2018, it seems the slow progress is due to the above business problems

accompanied by a hike in the pay of the teaching and the administrative staffs, a slowdown in

the economy where students preferring to go for other studies at cheaper costs and due to

government’s policy on Brexit. But, the trend of King Edward VII College is positive and is

expected to grow from 2021 onwards. Also, the establishment of two more colleges in

Brisbane and Adelaide will help them to acquire more students and increase their

profitability.

A sensitivity analysis on any proposed options

Proposed Action Expectations

The college website must be improved It will attract the students and increase the

market share by 5%
Conduct internal audit annually It will help to identify the loopholes and rectify

the same
Staffs performance review programs It will help to identify their ambiguity and train

them to improve
Open two new college campuses in Brisbane This will increase the profitability of the

and Adelaide college and its reputation throughout Australia

Data storage and access options

The students’ privacy is of utmost importance. Hence, the data of the students will be store

through cloud based privacy system. It is the most secured form of database management

system. Also, without abandoning the physical servers the on-premises data privacy system

should also be implemented in few departments. This will help to keep the storage of data in

total control.

A risk management plan

 Risks Strategies
Government changes in policies Diversification through more establishment of

colleges and effective communication with

stakeholders
Drop in cash inflows Close monitoring of expenditures and plan

methods to arrange financing facilities

Global slowdown Monitor the changes and act accordingly
Shortage of training and administrative Develop workforce plan and improve the HR and

staffs retention policies

Growth in clients – students Develop sound courses commensurate with the

industry. More quality campus recruitment.

References

Assignment Task.com; Strategic and Management Plan;

https://assignmenttask.com/answers/bsbmgt517-strategic-and-manage-plan-assessment-task-

2-questions-and-answers/

Edtech Magazine; Storage Wars: Choosing a secure Student Data Solution;

https://edtechmagazine.com/k12/article/2019/10/storage-wars-choosing-secure-student-data-

solution-perfcon

PWC; Universities participating in TPS and LGPS;

https://pwc.blogs.com/pensions/2019/12/are-university-pensions-still-no-1-this-christmas-

and-new-year.html