Mauritius became independent in 1968. At this time the economy was basically an agricultural one, sugar and tea being the main foreign exchange earners. In the 1970's it embarked on an industrialization program, with the setting up of the export processing zone ( EPZ ). Incentives were offered to foreigners to encourage them to invest in the EPZ. The Economy witnessed a real boom in the 80's and early 1990's.
There was full employment and foreign labour was imported from China and India in order to cater to the needs of the textile and construction sectors. However things worsened in the late 1990's. Factories started closing down. The Government in place had to review its economic strategy. The manufacturing sector could no longer meet the demand for jobs. The answer was the Services Sector. Several avenues were exploited and these include Tourism, The Freeport, Financial services and ICT. At present the Services sector is the biggest employer and the biggest contributor to the GDP. This sector needed a well educated labour and the output from the tertiary institutions could not meet this demand. Several training institutions were set up and the best known among these was the Mauritian Institute of Business Administration.
In 1995 Shyam Bhoyroo visited Mauritius in order to explore investment opportunities. He was born from Mauritian parents, settled in the UK and had an MBA with specialization in Finance. He was surprised by the lack of facilities for tertiary education. This was a big obstacle for those who could not go for further studies overseas. Shyam decided to take advantage of this opportunity by setting up a training centre. His wife Mary, also a management graduate, soon joined him.
For Shyam, the location of any business is crucial for its success. His choice fell on Curepipe. The town was centrally located and it had a cool climate, ideal for academic activities. Besides it housed some of the most prestigious secondary schools : Royal college, St Joseph college, Loretto convent, Lycee Labourdonnais to name just a few. He found a newly constructed building being offered on rent.
He liked the place and immediately booked it. It was just five minutes from the Ian Palach bus station and hence was easily accessible. The couple spent the next two months furnishing the building and in obtaining the necessary permits from the various authorities. The lecture rooms were provided with the latest audiovisual facilities, with comfortable sitting arrangements and were fully air-conditioned. The reception, mess, offices and resource centre were finely decorated. The opening ceremony of the Mauritian Institute of Business Administration (MIBA) took place on 15th January 1996 and was attended by eminent personalities including the Minister of education.
In the first instance Shyam decided to run courses up to the Diploma level. These Include those from British institutions like Institute of Commercial management, Chartered Institute of Marketing and London Chamber of Commerce and Industry. The target groups were the middle and lower middle classes, coming mainly from the southern and central regions. Many of those who enrolled were in search of an additional qualification in order to obtain a promotion or to effect a career move. The organization adopted an integrated marketing communications strategy in order to communicate with its target audience.
The majority of lectures were conducted by the couple. This had an advantage in that lecturing hours were not curtailed in order to reduce lecturers' fees. The two ensured that syllabus was completed and model answers discussed. Success rate was high. A pool of part-time lecturers was also maintained. They were made use of as and when needed and were paid on an hourly basis. The organization enjoyed early success and enrollment remained on the ascending trend for several years.
The marketing strategy remained unchanged. The organization did not have a mechanism for obtaining the perception of customers about the service being offered. Further complaints from students were on the rise. Some even complained to the Mauritius Qualifications authority. No mechanism for handling complaints existed. The enrollment fell drastically in 2006. Shyam decided to diversify and to move up-market by conducting courses up to undergraduate level. But things did not improve. In February 2009 a Customer Services manager was recruited.
(a) The case highlights one factor for the growth of the services sector in Mauritius. However several other factors have contributed to this growth. From your knowledge of the Mauritian society and economy discuss five other factors which have contributed to the growth of the services sector in the last decade.
(b) ‘The success and failure of a business is often attributed to its location'. Explain how the location of the Mauritian Institute of Business Administration (MIBA) has contributed to its success.
(c) (i) What is meant by Integrated Marketing Communications?
(ii) Propose a communications strategy for MIBA.
(d) (i) Explain the term market segmentation.
(ii) Discuss the segmentation bases which could be used to segment the market of tertiary education and identify the segments targeted by MIBA.
(e) Discuss the factors which contributed to the initial success of MIBA.
(f) (i) Why is it important for an organization like MIBA to monitor customer perception about the service being offered ?
(ii) Propose a mechanism for obtaining feedback from customers of MIBA.
(g) (i) Explain why complaints are important to an organization like MIBA.
(ii) Propose a mechanism for handling customer complaints.