Reference no: EM13782911

Executive Summary

English Zone is a small start up educational establishment that will be located in the city of Boston.

It is a business that expects to capture the heart of loyal Kazakhstan students moving into the United States and is seeking to learn the English language at affordable rates.

As a business English Zone is seeking to create a very strong market position in the city, and this is based on the extensive teaching knowledge that has been exhibited by the proprietor, which can be so important in this competitive environment.

English Zone seeks to offer its services at prices that are competitive and at the same time meets the demands of the middle income students moving into the United States from Kazakhstan.
As a business it will start as a sole proprietorship with no need for incorporation, it will be owned and run by its proprietor and owner. The proprietor has developed extensive knowledge in the field of teaching English language to people of his native Kazakhstan. The proprietor has been in a position of a teaching facilitator in other institutions of English language learning.

It is therefore important to note that this individual will be bringing in a lot of experience in teaching native students the English language. At the start the proprietor will be the only employee but later will seek to bring in new employees as the amount of revenue and size of the school will continue to expand.
The company will offer the English language learning services to the students as the only form of learning in the institution.

This is a business that will cater for all the clients through the provision of adequate customer services, which are tailored to the needs of the consumers who are the students. The information that is taught in this institution will be direct from the tutor who is of Kazakhstan background with the ability to understand the background and context through which the learning should take place.

Looking at the market, the US foreign language education sector is witnessing what analysts have described as rapid expansion.

The education environment in Boston has ensured that several students are coming in with the intention of gaining university education from the institutions around and it is important that an English school should be made available for the foreign students.
English Zone intends to create a wide customer base, and due to this will look to concentrate the business as well as marketing among the local students who come to Boston, this will make us quit dominant in the target market.

It is through this regular supply of clients that the business will be able to gain a regular flow of revenue. This will be amidst the high level of competition which will be posed by the other players.

Section 1: Business Plan

Company Description
This is a business institution that is intended to operate in the education industry, English for Foreigners Sector. This institution will be a startup company which will be run as a sole enterprise in the first year with a view of expansion in the future. The institution will be located in Boston and will target students of Kazakhstan origin who will have moved to the United States in search of higher education in the Universities.

The institution will start within a small leased premise which will be further widened according to the strategic plan over the years. The first year will see the proprietor act as the manager and the staff of the institution due to the limited budget.

The services that are offered by this business are basically educative and will ensure that the students can be able to learn better in the United States university through understanding how to communicate in English. The most specific group of students as has been stated already is students who are coming into Boston from Kazakhstan with the intention of learning in the local universities.
The Business Objectives
For the next three years the following are the business objectives that are intended by the management of English Zone:
Achieve a five percent growth in revenue every year for the next three years
Make an expansion in terms of creating branches within Boston
To be the only low cost institution in the entire Boston
Mission
The mission of English Zone is to offer high quality, comprehensive and convenient English course for a lower cost. The most important aspect of English learning is grasping communication; it is the goal of the institution that the graduates will be able to communicate effectively and efficiently as they pursue education

Key Success Areas
This institution intends to hit the highest success point in history through offering the lowest cost form of English communication learning, with no peer in the entire Boston region. The most important aspect is that the business will use its success in the first year to create more branches and projects in the subsequent years. The main endeavors that the business will be mostly concerns with in raising its success are:
To be able to lower the operational costs in order to increase the gross margins up to more than 66%
The proprietor should be able to act as the cost manager responsible to ensuring that the operational costs are down
Create a cost reduction scheme that is comprehensive and will be sustainable over the years
Pursue aggressive measures that aid in gaining more students, pulling them away from the other form of competition
Industry Analysis and Trend
This business will be set up in the higher education industry where there are several players such as Boston University and Kaplan International. Education industry is critical in the United States and the foreign language sector is one which is developing with every single passing day. The number of foreign students from Kazakhstan alone is estimated to be around 2000 every year. This makes the whole industry to be so lucrative though highly competitive. The main target market in this industry is the foreign students from Kazakhstan who come to the United States to further their education.
The most critical needs of the customer who are the student are is institution which can be able to teach them the language in the cheapest and most flexible means. In flexibility it means that the course should be structured in such a way that the students are able to learn according to their own needs and prescriptions. The majority of the group of students whom this institution will be targeting is those who are from Boston City as this is where the institution will be located.
The market is Boston is made up of more than 50 foreign language institution but there is none which has basically narrowed down to teaching only foreign students from Kazakhstan. This will be the first institution to do so. The estimated number of students who are admitted to the institutions who are from Kazakhstan is estimated at 2000 students per year and the forecasted growth is anticipated at 5% based on the demographic analysts. This institution targets a 5% growth every year of the market share of the students which is anticipated to be at 400 students annually.
The logic behind my estimated gain of 5% is the amount of fee that is charged in this institution which is different from what is charged in other institutions such as Boston University and Kaplan International. The same will be important when it comes to ensuring that the business is able to breakeven in the long run.
Target Market
The market that is being targeted by this institution is segmented into that which ranges from the middle to the upper income earners. It is this group of people that are doing so much when it comes to getting education in order to aid them move from one status or to suit that which they are already in even better. The most important people that will be targeted are the local residents in Boston who have come in to stay or even to study. The age means that those who stay will basically is young people up to the age of thirty years.
The market will also be made up of education tourists who come into Boston. The main target market in this industry is the foreign students from Kazakhstan who come to the United States to further their education. English Zone will be an English school that will target foreign students from Kazakhstan who come over to the United States to have college and university education. The school will be located in Boston City and will target foreign Kazakhstan nationals in the city and its environment. The students that are targeted should be aged from around 17 years up to 30 years. The students must be about to speak in dialects that are spoken in Kazakhstan ethnic, this will make it possible to teach them through their dialects.
Competition
There are three main competitors who the business will go head to head in order to have a piece of the market that is anticipated to grow at the rate of 5% every year. The biggest form of competition is Boston University which is an educational institution that is located in Boston that offers different courses to local and foreign students. This institution has been in existence for quite a while and therefore unlike the other competitors, it has gained a reputation among the clients. The second biggest form of competition is Kaplan International situated at in Downtown Boston and one can be able to visit them at Northeastern University.
The third form of competition is ELS, Boston Downtown located on Tremont Street; it is at the crossroads of Downtown Crossing and Beacon Hill. This institution is situated at a place that is flooded with several universities which makes it easy for the organization to get access to students who come around looking to gain university education. This is a factor which has contributed to the growth of the institution over the past few years. The three set of institution are so competitive due to the fact that they have been in the industry for a while and they have been able to set a brand that usually is difficult to compete against especially for a young institution as this one.
The overall competition is increasing in the industry with different institutions getting registration to offer English classes to foreign legion of students. Even though the competition has been high, this has not been able to push the market leaders out of business due to having the following characteristics.
Competitor #1: Boston University
This is an educational institution that is located in Boston that offers different courses to local and foreign students. This institution has been in existence for quite a while and therefore unlike the other competitors, it has gained a reputation among the clients. The organization does not have to carry out much advertisement due to the decent name that they have created. The level of educational services that they offer is not only limited to English language but also other disciplines.
Competitor #2: Kaplan International
Kaplan International is situated at in Downtown Boston and one can be able to visit them at Northeastern University. The language courses that they offer are for students who are 18 years and above. The institution is also located at Boston Fenway and Harvard Square. The fact that the institution has been able to find different sites where they are able to set up their different centers makes them accessible to several students.
Competitor #3: ELS, Boston Downtown
This is an institution that is located on Tremont Street; it is at the crossroads of Downtown Crossing and Beacon Hill. This institution is situated at a place that is flooded with several universities which makes it easy for the organization to get access to students who come around looking to gain university education. This is a factor which has contributed to the growth of the institution over the past few years.
Strategic Position and Risk Assessment
Strategic position in any typical sense refers to how one intends to position themselves in relation to the competitors. What the business intends to do in order to position itself as the main alternative for the students is to create a price that will be able to suit most of the consumers who are within the middle income earning level and up to the higher income earners. The other most important aspect that will be utilized is the location of the business. Basically this institution has intention of teaching people within Boston City therefore it will be located in areas that will be easily assessable by them. The biggest part of the business is the services that will be offered, there is need for this business to act uniquely when it comes to the services that are offered. The first aspect that is strategic is the flexibility when it comes to the mode of learning as well as the timing in learning.
Risk assessment basically can be stated as those issues that may have negative impact on the business. The example that may affect this business may include the changes in regulations set by the commission on higher education which may end up affecting the business heavily. The other risk may be a reduction of number of students from Kazakhstan due to government policies on immigration which may be negative to students from Kazakhstan who may intend coming to United States. Risk factors are unique to the business and if something goes wrong, it means that English Zone will go down, with the main part of its formation falling.

Section 1: Marketing Plan & Sales Strategy

The needs of the market will be analyzed before the marketing structure is created in the business. Most of the foreign students need trainers whom they can relate to in native background, an environment that they may not be able to get from other institutions that offer English lessons. The industry has experienced a rapid growth, and there are several students who are coming into the United States and seeking to learn how they can be able to communicate in English while they pursue their tertiary education. English Zone will take a position where the students can be able to enjoy the entire learning process.
English Zone will be an English school that will target foreign students from Kazakhstan who come over to the United States to have college and university education. The school will be located in Boston City and will target foreign Kazakhstan nationals in the city and its environment. The students that are targeted should be aged from around 17 years up to 30 years. The students must be about to speak in dialects that are spoken in Kazakhstan ethnic, this will make it possible to teach them through their dialects. This school will be accommodative of both gender (male and female) and their income should not be in excess of what is earned by middle class in Boston City which is around $50,000 to $74,000.