StrategicAudit – Yukari Japanese Center 1.1External Environment Analysis 1.1 SWOT Analysis (Table 01) STRENGTHS WEAKNESSES v Language school in Sri Lanka v Education is Confined to a Language education v We direct and update students about the Japanese language exams and exhibitions v Lack of teachers v Students will be visited and monitored in Japan v Students must be less than 28 years of age and even genuine students above that age cannot enroll because of this reason v Different people from different ethnic backgrounds taken v Limited to an age v Course fee is low v Expected salaries of our Japanese teachers are high v Age limit less than 28 years and by doing so we get the genuine students who wants to go to Japan to study v Most students who wish to go to Japan has passed the O/L and not A/L v Institute standards are high ,so the knowledge capacity of students are high v Classes only on weekends v Prime location and easy access for students to travel v No full time Japanese native to teach the language v . Classes are on weekends v No replacement teacher v Class hours are from 10.00 am to 4.00 pm so students can travel from far on a Sunday v Apart from O/L and A/L basic Japanese Language exam score pass is a must v Exact syllabus likewise in Japan v Most students who wish to go to Japan are from low financial background families.
v Students get to work part time and jobs will be given OPPORTUNITIES THREATS v Growing language market v Too many Japanese language school competitors v Large market of students who wish to go to Japan for education along with employment v New Japanese immigration laws which are introduced to limit the students from overseas v Rupee value depreciation 1.2.MacroEnvironment Analysis PESTEEL ANALYSIS (Table 02) MACRO FACTORS DRIVERS IMPACT TO THE ORGANIZATION O/T LEVEL OF IMPACT H/M/L POLITICAL Inconsistent policies effecting industry Changes effecting the of the institute T M Political influences and Political attitudes Effects day to day business to the institute T H ECONOMICAL Rupee value depreciation Results in exchange gains & losses over foreign transactions T H Changes in the organizational Tax tariffs Effects net profits T H SOCIO CULTURAL Embracement of Japanese Culture Most Sri Lankans are migrating to study and work. Therefore increase in revenue to the organization O H Increase in Migration to Japan Japanese Language Literacy and Level of Education O H Society becoming more educated (Increase in educational institutes) More students who will seek for Japanese language education O M TECHNOLOGICAL Latest technology is introduced to the world Latest technology can attract students to go to Japan and to be connected to home easily O M ECO Climate change and natural disasters Students from affected areas do not attend classes T H ETHICAL Honesty and Integrity –Trustworthiness ,good will and credibility Number of Students can improve through positive feedback O H LEGAL Educational Laws Education law is quite strict at the Japanese Immigration T H Employment Laws Employment law is very strict in Japan T H Taxation Laws Effects net profits T H O – Opportunity , T-Threat , H-High , M-Medium , L-Low 1.
3. Micro Environment Analysis 1.3.a.PORTERS 5 FORCES (Table 03) FORCE DRIVER IMPLICATION IMPACT THREAT OF NEW ENTRANTS Capital Requirements The Education institutes needs a relatively low level of infrastructure which is a low capital investment. This encourages new entrants. H Products differentiation Yukari Japanese center established under Japanese Company is different against competitors. If properly managed the threat can be minimized.
H Proprietary technology Even though Japan is popular on technology ,it is not been used much at the institute which if properly practiced and utilized could bring more students to the institute H Government policies Every time an education or employment law changes we need to filter the students accordingly before they join the Institute for Japanese Language Education H THREAT OF SUBSTITUTE Relative quality of substitute services Japanese Education institutes or organizations that sends students abroad for education is a threat to Yukari Japanese Institute M BARGAINING POWER OF CUSTOMERS Clients volume Our clients would be our students H Price sensitivity students have a bargaining power as our competitors offer relatively low amounts H BARGAINING POWER OF SUPPLIERS Agent Volume Bargaining power of the agents relatively high as they do the marketing and they supply a mass amount of students, if we are not willing to pay they will approach one of our competitors M INDUSTRY RIVALRY Number of Competitors We have over 30 competitors in the market H Size of competitors Direct competitors are larger than us Price competition Relatively High, Larger players have better economies of scale henceforth the course fees they offer is relatively low L Product innovation Low level of innovation we have due to Autocratic management ,and less technology use to attract the students H H-High , M-Medium , L-Low 1.3.b.- Competitor Analysis (Table 04) Coss Lanka Hinomoto Market perception Market leader Professional Operator Key Strengths Market leader, Mass promotions, Business premises Location,Advanced infrastructure ,Strong Brand name, Technology, Attractive service such as free tickets to go abroad,Professionals are employed Latest Technology, ,More interactive sessions with Japanese,Online interviews, Market penetration using Japanese culture Key Weaknesses Name of the company Need to improve on Brand image Organization period 8 years 2Years 6 months Investment capacity High Average Asset base High High Pricing Average Average Brand visibility Strong Low Product development Status Good Average 2-InternalEnvironment Analysis 2.
1MCKINSEY’S 7S FRAMEWORK (Table 05) SHARED VALUE Shared value of the Yukari Japanese Center is to provide Japanese education and employment in Japan or Sri Lanka and to enrich students in developing their knowledge and skills to blend in to any culture and society. STYLE Autocratic leadership can be seen whereas the frontline staff are not involved in decision making SKILLS Uses current managers as lecturers STAFF The Yukari Japanese Center has an open door policy, downward and upward communication is practiced between employees and students STRUCTURE flat organization management which deliver high performance SYSTEMS Students are not been given any digital devices for further reference or self evaluation of the subject, however the company uses digital marketing to promote the Yukari Japanese center STRATEGY Yukari Japanese Center mainly targets the differentiation strategy 3.Innovation Record Analysis of Yukari JapaneseCenter3.1.
aMetaphoricalanalysis This institute is like dinosaurs slow Lumbering anddestined for extinction.3.1.b – Current Innovation Record Analysisof Yukari Japanese Center Current Innovation performance ( Table 06) Innovation record in 2017 Jan-March April-June No of new products launched within the year 0 0 Customer satisfaction ratings 7 3 Staff turnover 1 1 Amount of money spent on research & development 0 0 New products under development in pipeline 0 0 4.Leadershipstyle Evaluation of Yukari Japanese Center Leadership Style S1 S2 S3 S4 Scenario of Management style application This level is not observed at Yukari Japanese Center yet. Country manager to new comers to the institute who has less experience such as less experience language teachers and requires Directive style since the follower readiness is low and directions are expected by staff to perform.
Country Manager to Teachers and Administration assistants relationship level is very high. Follower readiness of the followers are moderate or high & requires low directing Board of directors maintains high relationship to persuade where follower readiness of Country manager and the teachers are high Readiness of Follower R1 R2 R3 R4 Figure 1 4.2 Advantages & Disadvantages of Situational model (Table 08) S1/R1 S2/R2 S3/R3 S4/R4 Advantages Advantages Advantages Advantages Not applicable to Yukari Japanese Center Support from Country manager and other senior staff are seen at this stage Since Motivation is high overall productivity is high High performance that leads to high Output Highly focused on development of organization Self Motivated and highly result oriented Disadvantages Disadvantages Disadvantages Disadvantages Not applicable to Yukari Japanese Center Proper time for training the staff is needed if not the out out can be low by the staff members Delegation of work needs to be constant and monitored if not staff can divert from the objectives of the institute High pressure to Country manager due to results expected by the board of directors New staff members will take time to perform High pressure to teachers and office assistants due to results expected by the country manager 5.Organizational Structure of YukariJapanese Center5.1.
Current Organization structure of YukariJapanese Center (Table 09) 5.2 Organization Structure Audit (Table 10) FACTOR DETAILS ADVANTAGES DISADVANTAGES IMPACT Size of Structure lean Fast decision making for the department limited resources to operate & develop High Clear communication between managers & subordinates High stress levels to Country manager and staff High Span of Control Board of Directors make the decision, Autocratic leadership is practiced Effective when decisions need to be made quickly, there need not to be any consultation or time spent on consulting to make the decision It fails to develop the workers commitment towards the job and to produce results in finding students to the institute as the employees ideas are not been used even for marketing or in other activities, in return productivity is low. Yukari Japanese Center Employees prefer not to say their creative ideas as they feel it is not worth it High Streamed line work processs,Because one individual has complete control over an operation, there is less of a need for layers of management, more efficient operation as fewer people are involved in the decision-making process Autocratic leaders tend to drive talent people out of the organization and we have a 20% annual Labor turnover rate at the moment.
High Expansion capable Having the same level of control through the structure Vertical expansions of the lean structure low Ability to change & Adopt Very much reluctant to adopt Incorporated with high standards If not change we might face the strategic drift in the institute High