BSBPMG637 - Assessment Task 2 V2

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The document discusses student assessment tasks and requirements for a vocational education and training course. It also provides statistics and reports on trends in the vocational education sector in Australia.

According to the reports, participation in vocational education and training has increased in recent years. There has also been growth in training roles and vocational teaching jobs. However, participation rates have decreased for those in and out of the workforce since 2013.

The suggested readings indicate that skills in high demand include those in areas like healthcare, technology, trades, and early childhood education. Specific skills mentioned are problem-solving, communication, leadership, and digital literacy.

Assessment

Task 2
Engage in collaborative
alliances
BSBPMG637
Student Declaration
To be filled out and submitted with assessment responses
◻ I declare that this task and any attached document related to the task is all my own work and I have not
cheated or plagiarised the work or colluded with any other student(s)
◻ I understand that if I am found to have plagiarised, cheated or colluded, action will be taken against me
according to the process explained to me
◻ I have correctly referenced all resources and reference texts throughout these assessment tasks.
◻ I have read and understood the assessment requirements for this unit
◻ I understand the rights to re-assessment
◻ I understand the right to appeal the decisions made in the assessment

Unit Title
Unit Code

Student name

Student ID
number
Student Date
signature

Task Number

------OFFICE USE ONLY-----

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RTO Provider: 91153 - CRICOS Code: 02672K
greenwichcollege.edu.au
For Trainer and Assessor to complete:

◻ Student requested reasonable adjustment for the assessment

Marking Sheet Comments

DNS
Completed successfully
The student has satisfactorily completed and ☐ ☐ ☐
submitted the following:

 Report on potential collaborative alliances x


2 in Task 2.1
 Planning Document in Task 2.2A
 Sample Document in Task 2.2B
 MOU in Task 2.3A
 Collaboration Plan in Task 2.3B
 Observation checklist in Task 2.4
 Summary of agreed changes to MOU and
Collaboration Plan in Task 2.4
Demonstrated ability to: ☐ ☐ ☐
 Identify and evaluate opportunities for
collaborative alliances according to
organisational and program objectives
 Identify and evaluate potential
collaborators according to organisational
policies

This is evidenced by:


 Report on potential collaborative alliances x
2 in Task 2.1
Demonstrated ability to: ☐ ☐ ☐
 Initiate and develop relationships with
potential collaborators according to
organisational policies and procedures.

This is evidenced by:


 Planning Document in Task 2.2A
 Sample Document in Task 2.2B
Demonstrated ability to: ☐ ☐ ☐
 Initiate, negotiate, agree and document a
collaborative approach with parties which
adhere to organisational policies and
relevant legal requirements
 Approve and review each formal agreement
to ensure continuation of envisaged value
and to identify potential need for changes
and additions according to organisational
policies and procedures

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RTO Provider: 91153 - CRICOS Code: 02672K
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Marking Sheet Comments

DNS
Completed successfully

This is evidenced by:


 MOU in Task 2.3A
 Collaboration Plan in Task 2.3B
 Observation checklist in Task 2.4
 Summary of agreed changes to MOU and
Collaboration Plan in Task 2.4

Demonstrated ability to: ☐ ☐ ☐


 Develop collaboration plans for each
agreement to support implementation

This is evidenced by:


 Collaboration Plan in Task 2.3B

Task Outcome: Satisfactory ☐ Not Yet Satisfactory ☐

Student Name:

Assessor Name:

Assessor Signature:

Date:

Table of Content

Student Declaration........................................................................................................................2
Task 2 – Identify opportunities for and establish collaborative agreements...............6
Task 2.1 Identify opportunities for collaboration.........................................................................8

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Task 2.2 Initiate and develop relationships with the potential collaborator............................12
Task 2.3 Develop a collaborative agreement and approach.......................................................14
Task 2.4 Negotiate and finalise the MOU and the Collaboration Plan.......................................18

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Task 2 – Identify opportunities for and establish collaborative
agreements

Task summary and instructions

What is this You are a change management practitioner contracted by MMI


assessment task Professional Education as Program Manager.
about?
The Program will help the company realise the following strategic
objectives:

 To position the company as a leader for quality business


education in Australia within the next three years
 To increase revenue by 10% annually for the next 3 years
 To increase profits by 10% annually for the next 3 years
 To position the company as a leader for quality business
education in Australia within the next three years
 To expand operations to Sydney, where the company has
experienced a high increase in demand for corporate training.
This will be achieved by opening a campus in Sydney

The projects within the Program are:

 Open a campus in Sydney


 Brand empowerment
 Introduce two new accredited courses, Diploma of Leadership and
Management and the Advanced Diploma of Program
Management, to offer to corporate clients

As part of your role as Program Manager, you are required to:

 Identify opportunities for collaboration with external companies or


between organisational departments to support the realisation of
program benefits
 Develop a collaborative alliance
 Establish collaborative agreements
 Support the evolution of collaborative agreements

This Task focuses on the first two points.

The program board includes:


o Ms Francis Green - Executive Director
o Mr Eli Brown – Non-executive Director

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Task summary and instructions

o Mr Leonard Black – CFO

The Program Sponsor is Taylor Magenta – Non- executive Director.

The trainer and assessor will play the role of the Program Sponsor in
simulated work conditions.
Consult with them as required.

The trainer and assessor, in their role as Program Sponsor, will


provide feedback on how collaborative alliances were managed for
the program. This feedback will be provided on the Marking Sheet in
Task 3.

This task comprises of the following assessment methods:


o Product-based ☒
o Direct observation of Role-Play ☒
o Case Study ☐
o Other (specify) ☐

It has been designed to evaluate your ability to/competency in:

 Identify and evaluate opportunities for collaborative alliances


according to organisational and program objectives
 Identify and evaluate potential collaborators according to
organisational policies
 Initiate and develop relationships with potential collaborators
according to organisational policies and procedures.
 Initiate, negotiate, agree and document a collaborative approach
with parties which adhere to organisational policies and relevant
legal requirements
 Approve and review each formal agreement to ensure
continuation of envisaged value and to identify potential need for
changes and additions according to organisational policies and
procedures
 Develop collaboration plans for each agreement to support
implementation

Your assessor will be looking for demonstrated evidence of your


competency in the above.

You are required to address the following:


 Task 2.1 Identify opportunities for collaboration
o Determine one opportunity of collaborative alliances for the
program.

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Task summary and instructions

o Identify and short list two potential alliances and develop a


report for each
 Task 2.2 Initiate and develop relationships with the
potential collaborator
o Develop a planning to initiate and shape the working
relationship with the preferred collaborator
o Prepare and submit a sample document used to approach
and/or develop the work relationship with the potential
collaborator.
 Task 2.3 Develop a collaborative agreement and approach
o Develop an MOU and a plan for collaboration
 Task 2.4 Negotiate and finalise the MOU and the
Collaboration Plan
o Perform a Role-Play to present the MOU, the collaboration
plan and negotiate their terms.

What do I need to do  submit the completed assessment tasks, according to instructions,


to complete this task  complete the tasks with sufficient detail and present them in a
satisfactorily? professional manner,
 use your own words and reference sources appropriately,
 meet the word count where required,
 use the scenario provided,
 use the templates provided where required,
 for your performance to be deemed satisfactory in this
assessment task you must satisfactorily address all of the
assessment criteria,
 if part of this task is not satisfactorily completed you will be asked
to complete further assessment to demonstrate satisfactory
performance.

Specifications You must deliver/participate in:

 Meeting (Role-Play) with the collaborator in week 4

You must submit to GOALS

 Report on potential collaborative alliances


 Planning Document
 Sample Document
 MOU
 Collaboration Plan
 Observation checklist
 Summary of agreed changes to MOU and Collaboration Plan
Resources and • Computer with Internet access

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Task summary and instructions

equipment • Access to Microsoft Office suites or similar software


• Learning material
• Scenario for assessment as provided
• Appendices as provided
• Relevant policies and procedures as provided
• Templates as provided

Re-submission You will be provided feedback on your performance by the Assessor.


opportunities The feedback will indicate if you have satisfactorily addressed the
requirements of each part of this task. If any parts of the task are not
satisfactorily completed, the assessor will explain why, and provide
you written feedback along with guidance on what you must
undertake to demonstrate satisfactory performance. Re-assessment
attempt(s) will be arranged at a later time and date. You have the
right to appeal the outcome of assessment decisions if you feel that
you have been dealt with unfairly or have other appropriate grounds
for an appeal. You are encouraged to consult with the assessor prior
to attempting this task if you do not understand any part of this task
or if you have any learning issues or needs that may hinder you when
attempting any part of the assessment.

Complete the following activities:

Task 2.1 Identify opportunities for collaboration

In this task, you will determine one opportunity for a collaborative alliance for the program.

The first step of this process is to identify suitable alternatives for a collaborative alliance.

Identify and shortlist two potential alliances and develop a report for each (Template 1)

To complete this task:

 Identify an opportunity for collaboration (consider the needs, requirements, constraints, strengths
and weakness of the program and the organisation).
 Shortlist and evaluate two potential collaborators in line with organisational policies and
procedures and program objectives. In your evaluation, consider:
o Why you have shortlisted the potential ally

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o Information about the potential ally
o Impact of working together
o Compatibility assessment
o The synergy of goals and strategies
o Risks
o Tangible assets and access
o Due diligence
 Create two (2) program reports for the program board and the program sponsor to brief them on
the opportunities for collaborative alliances that you have identified.
 Provide recommendations on the preferred collaborator for the program.
 Use the templates provided and follow the instructions.

Template 1 -Report on potential collaborative alliances


Potential Alliance - 1
Company/Department Name
Potential ally for the collaboration
Process of identification
Outline how the collaborative ally was identified
- this may include research and/or networking,
relevant organisational policies and procedures,
for example -and evaluated.
(50-100 words)
Criteria for shortlisting
List and outline two (2) criteria used to shortlist
the potential collaborator.
(30-50 words/criteria)
General Information
Summarise information about the potential
collaborator (for example, industry or
department, competencies and management).
(50-100 words)
Impact of working together
Positive and/or negative
(40-80 words)
Compatibility
Summarise a compatibility assessment
(organisational culture, leadership style, core
competencies, business processes, knowledge
management etc..) of the collaborator with the
program.
(40-80 words)
Synergy of goals and strategies
Outline how there is a synergy of
goals and strategy.
(30-50 words)
Risks
Identify and list four (4) possible key risks.

Tangible assets and access


For example, the reputation of the collaborator
in the field, expertise, technology, equipment,
human resources, intellectual property, and
access to other potential collaborators.
(50-100 words)

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Potential Alliance - 1
Due diligence
Summarise the due diligence that was
performed when shortlisting the potential
collaborative ally. (Example: evaluation of client
reviews, reputation in the industry, review of
publicly available financial statements etc..)
(40-80 words)

Potential Alliance - 2
Company/Department Name
Potential ally for the collaboration
Process of identification
Outline how the collaborative ally was identified
- this may include research and/or networking,
relevant organisational policies and procedures,
for example -and evaluated.
(50-100 words)
Criteria for shortlisting
List and outline two (2) criteria used to shortlist
the potential collaborator.
(30-50 words/criteria)
General Information
Summarise information about the potential
collaborator (for example, industry or
department, competencies and management).
(50-100 words)
Impact of working together
Positive and/or negative
(40-80 words)
Compatibility
Summarise a compatibility assessment
(organisational culture, leadership style, core
competencies, business processes, knowledge
management etc..) of the collaborator with the
program.
(40-80 words)
Synergy of goals and strategies
Outline how there is a synergy of
goals and strategy.
(30-50 words)
Risks
Identify and list four (4) possible key risks.

Tangible assets and access


For example, the reputation of the collaborator
in the field, expertise, technology, equipment,
human resources, intellectual property, and
access to other potential collaborators.
(50-100 words)
Due diligence
Summarise the due diligence that was
performed when shortlisting the potential
collaborative ally. (Example: evaluation of client
reviews, reputation in the industry, review of
publicly available financial statements etc.)
(40-80 words)

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Recommendations
Recommended alliance
and type of alliance
What collaborator do you
recommend?
What type of collaborative alliance do
you recommend?
Reasons for the
recommendation
(3-5)

Task 2.2 Initiate and develop relationships with the potential collaborator

Develop a strategy to approach and build a working relationship with the preferred ally and create a
sample document used to implement that strategy.

A) Planning Document

Develop a planning document, in the form of personal planning notes, to outline the strategies to
initiate and shape the working relationship with the preferred collaborator in line with organisational
policies and procedures.

The planning document must address:

 Mutual benefits of the collaboration


 Strategies to approach and develop the working relationship with the collaborator to include:
o Communication strategy
o Networking strategy
o Engagement strategy
 An action plan with the key actions to implement the strategies that have been identified to
include:
o Action
o Schedule
o Roles and responsibilities

Use Template 2 and follow the instructions.

Template 2 -Planning Document

Planning Notes

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Planning Notes
Approach Category Outline
How to approach the
collaborator. Communication
Outline 2 strategies for strategy
each category. 30-50
words/strategy. Networking
strategy
Development
of the working
relationship
How to develop the
working relationship.
(Outline 2 strategies,
50-100 words in total)
Action Plan Action Schedule Roles and Responsibilities
Add additional rows if Example: Example: Example:
needed. (5-7 actions Schedule a first meeting with First week of March 20XX Program Manager to contact the collaborator
actions) the collaborator. directly.

B) Sample Document

Prepare and submit a sample document used to approach and/or develop the working relationship
with the potential collaborator.

Example of samples may include:


 A PP that you prepared for an initial meeting with the collaborator to present your company,
the program and the benefits of the collaboration (4-6 slides)
 A video to present your company, the program and the benefits of the collaboration (2-3
minutes)
 An overview of the benefits of the alliance (50-100 words)
 Meeting agenda for a meeting with the collaborator
 Email to thank the collaborator for a successful event/action related to program work
 Schedule of a networking event organised to engage the collaborator

Copy and paste the sample in the space below or submit it separately with your assessment.

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Task 2.3 Develop a collaborative agreement and approach

A) MOU

Develop an MOU (template 3), and a plan for collaboration (Template 4).

Create an MOU for the collaborative alliance. The MOU must adhere to organisational policies and
relevant legal requirements.

Use the template below and follow the instructions. Refer to the Learning Material to help you create
the MOU, and consult with the Program Sponsor (played by the trainer and assessor in simulated
work conditions).

Template 3 -MOU
MOU
Date
Partner 1's
details
Partner 2's
details
Purpose
Objectives of
the
collaborative
alliance

(3-4)

Scope of the
collaborative
alliance
(30-50 words)

Period of
collaboration
Governance

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MOU
(40-80 words)

Confidentiality
(40-80 words)

Intellectual
Property
(40-80 words)

Financial
commitment
(40-80 words)

Roles and
responsibilities
(50-100 words)

Resources
(50-100 words)

Communication
and information
sharing
(40-80 words)

Review and
Evaluation'
(40-80 words)

Termination
(40-80 words)

B) Collaboration Plan

Create a high-level collaboration plan- to be agreed upon by both parties- to support the
implementation, review and evaluation of the agreement.

Use the template below and follow the instructions.

Template 4 -Collaboration Plan

Collaboration Plan
Action Plan Action Schedule Roles and
Responsibilities

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Collaboration Plan
Develop an action plan for implementation (5-7 Example: Example: Example:
key actions/tasks) Prepare MOU and First week of April Program Manager with
negotiate. 20XX support from legal
department.

Training plans Training Purpose Budget


Example: Example: Example:
Identify what training is needed, in what Online training. Induct collaborator on $ 150 to develop online
format, for whom, when and budgetary SOP for X process. training.
requirements. (3-5)

Information management
Summarise how data and information will be
collected, recorded and disseminated during
the collaboration. (40-80 words)
Technology
Identify technology (systems, apps, for
example) that will be used to implement and
maintain the collaboration. (30-50 words)
Resource Management Resource Type Management Strategy
Who is in charge of managing resources, and Human Resources
how the resources will be utilised? Outline a Physical Resources
strategy for each type of resource that will be
utilised when implementing the agreement. 3-4 (Example: Office
types of resources must be covered. space, equipment
etc..)
Services
(Example: IT)
Software
Other
Communication and
engagement strategy
Outline the communication and engagement
strategy.
Key communication needs, media to use, and
frequency.
Meeting – purpose, frequency, attendees.
(80-120 words)
Enquiry management process
Summarise the enquiry process.

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Collaboration Plan
This is particularly important at the beginning
of the implementation to address issues and
clarify any question from staff.
(40-80 words)
Issue management process
Summarise how issues will be dealt with, how
issues are logged, assessed, escalated- if
needed- and resolved.
(40-80 words)
KPIs
Determine and list the KPIs for the
collaborative alliance against the objectives of
the agreement (4-5 KPIs)
Progress report
Outline the process for progress reporting.
Progress reporting (types, formats,
responsibility to develop the progress
reporting, frequency, medium to disseminate
the reporting)
(50-100 words)
Change management
Summarise the change management process
(how requests for change are logged,
submitted and to whom, then revised,
escalated- if necessary- and approved and
implemented)
(50-100 words)
Consultation and feedback
Summarise the consultation and feedback
process (how parties are consulted; and how
feedback is sought and analysed).
(50-100 words)
Review
Outline the process to review the agreement.
(50-100 words)

Task 2.4 Negotiate and finalise the MOU and the Collaboration Plan

Schedule a time with the trainer and assessor in week 4 of class to:

 Present the MOU that you have developed


 Negotiate the collaborative approach
 Negotiate the terms of the MOU and the collaboration plan
 Present the collaboration plan
 Collect feedback from pertinent stakeholders
 Confirm and finalise the agreement and the plan

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A classmate will play the role of the representative of the collaborative ally.

Duration: 30 minutes.

Before the meeting (Role-Play)

 Make sure that the MOU and the collaboration plan are ready
 Prepare to present
 Prepare to negotiate
 Consider what policies and procedures, and legal requirements may apply

During the meeting

 Discuss the collaborative approach


 Present the MOU
 Present the collaboration plan
 Seek feedback from the ally
 Answer questions and provide the required information
 Negotiate the terms of the agreement on both documents
 Reach an agreement

After the meeting

 Document the changes/refinements/adjustments negotiated during the meeting.


Record the changes in the table provided below.

Changes to MOU Changes to Collaboration Plan

 Apply the changes to the MOU and the Collaboration Plan.

Please note that the trainer and assessor will check that the changes have been implemented in
the MOU and the Collaboration Plan in your assessment submission.

The trainer and assessor will evaluate your performance during the Role-Play.

If you are absent from class, it is your responsibility to make alternative arrangements with the trainer
and assessor to perform the Role-Play.

Appendix 1 – Scenario

The company

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XYZ Pty Ltd, trading as MMI Professional Education is an Australian boutique education provider in
Melbourne Registered Training Organisation -RTO), offering VET accredited and non-accredited
business courses to corporate clients and to local clients (domestic students).

MMI was founded in 1998 by brothers Mark and Andrew White, who built the company to become a
quality RTO with major accounts in Melbourne, Sydney, and Brisbane. Mark Brown sold his shares to
his brother Andrew who is the current chairman of the company.

The education provider is centrally located in Collins Street, Melbourne CBD, with state-of-the-art
facilities:

o Administration and Management Offices (including the main boardroom, 2 meetings rooms
and a computer lab with 20 PCs) on Level 45
o 15 Classrooms, kitchenette, client lounge room and a trainers' room on Level 46

Corporate training is mainly non-accredited and delivered at the clients' premises around Australia,
but it can also be catered for at Collins Street. Corporate clients include major Bank groups, National
Management Consultancy firms, Manufacturing companies and Government agencies.

Accredited courses are delivered in Collins Street with a combination of face to face and online
training delivery. The accredited courses are the Diploma of Business and the Diploma of
Project Management. MMI has a current capacity to enrol 500 clients, and current enrolment
number is 250 clients.

Important note:

o A VET accredited course has been assessed by the Australian Skills Quality Authority
(ASQA) as compliant with the Standards for VET (Vocational Education and Training)
Accredited Courses and the Australian Qualifications Framework (AQF). Accreditation means
that the course is nationally recognised and that the registered organisation (RTO) can issue a
nationally recognised qualification or Statement of Attainment (this for single units only).

o Non-accredited courses are business courses that have been highly customised to meet
clients' training needs.

The current organisational structure is as follows:

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Board of Directors

CEO CFO

Finance
Department

Client Services
Marketing Manager HR Manager Academic Manager IT outsources
Manager

Client Services
Marketing Team HR Team AcademicTeam
Team

The Teams are composed as follows:

 Board of Directors

o Mr Andrew White - Chairman

o Ms Francis Green - Executive Director

o Mr Eli Brown – Non-executive Director

o Taylor Magenta – Non- executive Director

o Ms Deborah Red – CEO

o Mr Leonard Black - CFO

 Finance Department: CFO and 2 x financial officers (full-time)

Summary of duties: account receivable, account payable; invoicing; payroll; financial record
keeping and reporting; taxes/fees

 Marketing Team: Manager (full time) and 1 x marketing officer (part-time)

Summary of duties: promotion; design of marketing collaterals for events; social media; market
research; public relations

 HR Team: HR Manager and 2 x admin officers (part-time):

Summary of duties: Recruitment; Induction and training; performance management support;


employee relations; safety; compensation and benefits

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 Client Services: Client Service Manager and 2 x receptionists; 4x client service officers, 1 x
team leader, 1 x maintenance officer

Summary of duties:

o front of office and back of office customer service activities (to include reception and
response to enquiries)

o support to academic staff

o client admin: client admission, enrolment, enrolment variations, pastoral care, completion

o building maintenance: 1x maintenance officer

 Academic Services: Academic Manager and 5 contract business trainers for corporate
training; 4 full time (ongoing) business trainers for accredited training

Summary of duties: accredited and non-accredited training and assessment; learning material
and assessment development and validation; support with compliance monitoring; pastoral
care.

 IT services: outsourced to an external company

Summary of duties: network service; database administration (inventory and staff files);
maintenance and update of the communication system including CRM (Customer Relationship
management system); data management and security.

Note: in loco computer maintenance is performed by the maintenance officer who has some IT
knowledge

Company Ownership structure

The company structure is a Pty Ltd:

 The Chairman Andrew White holds 51% of the shares

 40% of the shares are held by an external corporation since late 2017, as a silent business
partner

 The remaining 9% is owned by other members of the Brown's family

Vision

Our vision is to develop outstanding individuals through quality business training that encompasses
personal and professional growth.

Mission

o We create successful careers in business to advance business growth and to positively impact
on the broader community.

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o We strive to provide exceptional business training that focuses on quality of teaching, practical
learning, and successful outcomes

Values

Our core values are:

 Quality

 Integrity

 Accountability

 Respect for diversity

 Innovation

MMI quality standards

 Australian Skills Quality Authority (ASQA)


standards

 ISO9001 – Quality Management Systems

 ISO 27001 Information Security

 ISO 31000 Risk Management

 Australian Business Excellence Framework

MMI – Boards' of Director expectation

 Quality of practices

 Innovative solutions for business growth based on hard data and extensive research

 Build an innovative and agile company that can respond to the challenges of an ever-changing
business environment

 Become market leader

 Increase value for shareholders and clients

Industry, market, and strategic business direction

MMI Professional Education is a Registered Training Provider (RTO) based in Melbourne, Australia that
offers business accredited and non-accredited courses to corporate clients, and local clients.

Strategic Objectives:

 To expand the basis of the operation to Sydney where the company has experienced a high
increase in demand for corporate training

 To increase revenue by 10% annually for the next 3 years

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 To increase profits by 10% annually for the next 3 years

 To position the company as a leader for quality business education in Australia within the next
three years

 To expand the course offering by adding new qualifications to the scope of registration: the
Diploma of Leadership and Management and the Advanced Diploma of Program Management

 To increase the base of local clients attending accredited courses

 To implement sustainability to work practices: social, financial, and environmental

 To expand the offering to international students by repackaging accredited business courses to


add an internship component during the course

Current positioning

 MMI enjoys a good reputation in the industry as a quality provider of business courses for
corporate clients

 Courses are marketed as hands-on, with trainers that currently work in the industry, providing
current and cutting-edge skills to business professionals

 MMI currently holds 15% of the corporate business training in Australia

 MMI does not currently deliver business courses to international clients

 MMI does not currently deliver courses overseas

 The company is financially stable and sustainable

Operational overview

 State of the art facility in Melbourne to be replicated in Sydney

 Systems in use:

o Student Management System (MMI system)

o Learning Management System (Moodle)

o Accounting Management System (MYOB) – does not interface with MMI system

o Share drive

o Share points

o Zoom

o Project Management Application for remote teamwork (trainers): Wrike

 Trainers work both on-site in Melbourne and around Australia

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 Senior management to stay in Melbourne: campus director and team leaders to be employed
to manage and supervise Sydney's operations

 Staff to be employed for the Sydney Campus

 Administrative tasks such as enrolments will be undertaken by the Melbourne's campus

 Virtual teamwork practices to be implemented between Melbourne and Sydney

 Website tailored to international students to be developed

 Develop and implement sustainability policy and practices across the organisation, and
sustainability has not been on the top five priorities of the company so far

 All trainers are based in Melbourne; this impacts on financial costs when having to move
trainers to other Australian capitals to conduct corporate training. Trainers who deliver
corporate training receive a generous daily allowance when outside Melbourne ($250/day), all
travel and accommodation expenses are paid for by MMI. This generous package impacts an
average of 20% on the profit margin for each corporate course that is sold

Organisational culture

The organisational culture experienced at MMI is a mix of market and hierarchy culture.

 The Market Culture: This culture is built upon the dynamics of competition and achieving
concrete results. The focus is goal-oriented, with leaders who are tough and demanding. The
organisation is united by a common goal to succeed and beat all rivals. The main value drivers
are market share and profitability.

 The Hierarchy Culture: This culture is founded on structure and control. The work environment
is formal, with strict institutional procedures in place for guidance. Leadership is based on
organised coordination and monitoring, with a culture emphasising efficiency and
predictability. The values include consistency and uniformity.
(Source: https://popinnow.com/four-types-organizational-culture/ )

 The organisation is top-heavy, and there are concerns that this may not suit the strategic
objectives for growth and the opening of a second campus in Sydney.

 The Board of Directors is invested in the change process; however, intervention is needed to
bring departmental managers and teams on board.

 It is recommended that an organisational culture more suitable for innovation, sustainability,


agility, and progressive growth is developed and implemented.

Operational issues

The following operational issues have been identified internally:

 The increased number of complaints due to lack of cultural sensibility of trainers when dealing
with students from the non-Australian background (15% increase in the last 6 months alone)

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 All trainers are based in Melbourne; this impacts on financial costs when having to move
trainers to other Australian capitals to conduct corporate training. Trainers who deliver
corporate training receive a generous daily allowance when outside Melbourne ($250/day), all
travel and accommodation expenses are paid for by MMI. This generous package impacts an
average of 20% on the profit margin for each corporate course that is sold

 An increasing number of enrolments in Melbourne, projected student population to raise from


205 to 450 by mid-2021. Current facilities are not sufficient to accommodate the increase in
numbers (current facilities can accommodate max 350 students)

 Delays in achieving marketing objectives due to the composition of the team (2 part-timers
and one contractor) that cannot sustain the increased amount of marketing tasks (corporate
events to enhance networking and identify potential corporate clients have increased by 30%
in the past 6 months)

 A new student management system has been developed in-house. The system was
recommended by the Client Services and the Academic Managers for the seamless integration
of the student management and the learning management system. However, the two
managers failed to perform due diligence, and they did not consider that the new system does
not interface with the finance management system. This will cause operational disruptions to
the workflow as finance records (mainly revenues) will have to be manually inputted based on
the new system's reports on enrolment.

 Covid19 has decreased sales by 20%, the company has managed to deliver existing courses
and still maintain a reasonable margin of new enrolments online

Marketing

 MMI has not heavily invested in marketing activities, relying mainly on word of mouth.
 The company has a website:
o Old fashioned look, quite austere
o Not responsive
o In the mobile version, after you have clicked in a few pages, the navigation becomes
daunting
o Heavy use of text
o Infrequent updates
 Social Media: there is a FB page that is rarely updated, the LinkedIn Page is not in use
 Print advertisement: Industry magazine
 Referrals: education agents are paid 15% commission for referring students
 Discounts: twice/year MMI offers 10% for new enrolments to attract more students
 Yearly marketing budget: $75,000
 The marketing team is small and not experienced in digital and social media marketing

Pricing

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Product Target Market Price
Corporate Training  Management Face to Face classroom
Topics:  Individuals looking for (average of 10 participants) $
 Operational Management upskilling to advance their 2,000/participant
 Leadership career Online $ 800/participant
 Project Management Individual coaching $ 150/hour
 Emotional Intelligence
 Change Management

Diploma of Business Domestic students Blended learning:


$ 4,000/student
Diploma of Project Domestic students Blended learning:
Management $ 6,000/student

Workforce Overview

The following has been reported:

 Turnover rates are high in the academic department (30% yearly) due to the contractual
nature of some of the roles. Ongoing training staff is steady, however, there is a need to
invest more in their professional development to keep industry currency when teaching.

 Need for a succession plan for management roles

 Gender unbalanced

 Recruitment is done externally, few opportunities for advancement are offered to existing staff

 A recent staff survey outlined the following:

o Lack of opportunities for advancement

o Top heavy management

o Silo mentality

o Not enough room for innovation and improvement

o Lack of well-defined sustainability policy

o Diversity policy is very generic

 HR practices are mainly focused on administrative duties. The Board of Directors has
identified the need to embrace HR practices as an essential strategic tool for business
advancement.

 Training on HR practise is required for management

 Staff lament a lack of communication from the top

 Sense of working in silos

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Remuneration (average) for each role is as followed:

 Board of Director – 25-50 k/year

 CEO – 250 k/year

 CFO – 180 k/year

 Managers – 120k/year

 Receptionist $ 52k/year

 Officers (including team members in the Marketing dept) $ 65k/year

 Team Leader $ 78k/year

 Trainer (ongoing) $ 85k/year

 Trainer (contractor): $ 80/hour. Trainers who deliver corporate training receive a generous
daily allowance when outside Melbourne ($250/day), all travel and accommodation expenses
are paid for by MMI.

Note:

 The above remuneration must be considered pro-rata for part-time staff.

 Superannuation is excluded and should be added at 10% to employee's ordinary earnings

 Superannuation is paid to contractors (business trainers)

The following table provides an overview of the type of job arrangements:

Finance Department
Job Role Employment Gender Age Notes
Status
CFO Ongoing – full M 62
time
Financial Ongoing -full F-M 24;32
Officers time
Marketing Team
Job Role Employment Gender Age Notes
Status
Manager Ongoing -full M 58
time
Marketing Ongoing- part M 22
Officer time; 0.5 FTE
Social Media Ongoing- part M 21
Officer time; 0.5 FTE
Content Writer Contractor M 24

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HR Team
Job Role Employment Gender Age Notes
Status
Manager Ongoing -full M 54
time
HR Officer Ongoing- part M-F 35;38
time; 2.5 FTE
Client Services
Job Role Employment Gender Age Notes
Status
Manager Ongoing-full F 59
time
Receptionist Ongoing part F; M 21;22
time (0.6 FTE)
Client Service 3 Ongoing full 3M 26,22,25,24
Officer time 1F
1 Ongoing part
time (0.6 FTE)
Team Leader Ongoing-full M 31
time
Maintenance Contractor M 42
officer
Academic Services
Job Role Employment Gender Age Notes
Status
Manager Ongoing-full M 54 The contractors
time also run their
Contract Contractors 3 x M; 2 x F Average 42 own business.
Business
Trainers
Business Ongoing – full 2xM; 2x F Average 36
Trainers time

The industry and the market

Excerpt from IBISWorld report:

The Education and Training division has undergone significant reform over the past five years.
Ongoing effects from a demand-driven funding model for tertiary education introduced in 2012, a new
school funding model and policy initiatives aimed at increasing access to preschool education have all
boosted industry growth over the period. While Australia's population growth has increased domestic
demand for education and training, the division has expanded at a faster rate than the population
over the past five years. Increased government funding, growth in international student enrolments

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and rising tuition fees have contributed to the division's expansion over the period. Overall, division
revenue is expected to increase at an annualised 1.7% over the five years through 2019-20, to
$134.6 billion. This includes an expected rise of 1.3% in the current year. Slower growth in 2019-20 is
expected because of a decline in international student enrolments, due to the COVID-19 outbreak.

The Federal Government introduced a demand-driven funding model for the University and Other
Higher Education industry in 2012. This model significantly increased student enrolments and
government funding over the past five years. The VET FEE-HELP scheme has also boosted student
enrolments in vocational education. Similarly, the National Partnership Agreement on Early Childhood
Education has increased preschool enrolments. The division has also benefited from the Australian
dollar depreciating over the past five years, which has encouraged enrolments from overseas
students.

The Education and Training division is forecast to continue expanding over the next five years.
Increased funding for schools from the Quality Schools package will likely boost division revenue and
lift enrolments in government schools over the period. Division revenue is projected to grow at an
annualised 4.4% over the five years through 2024-25, to $167.2 billion. However, this forecast is
reliant on the travel restrictions implemented because of the COVID-19 outbreak being relaxed in
early 2020-21.

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Industry Performance

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The Education and Training division has grown over the past five years.

Several factors have influenced the division's performance, including population growth, changes to
government policy and funding, international student enrolments and labour trends. Population
growth is the main demand driver for education, particularly in the demographic aged five to 18.
Strong private school enrolment and tuition fee increases have also contributed to the division's
expansion over the period. Furthermore, underlying demand for tertiary education has increased as
more people upskill to compete in a tough job market. Overall, division revenue is expected to grow
at an annualised 1.7% over the five years through 2019-20, to $134.6 billion. This trend includes an
expected rise of 1.3% in the current year. Subdued growth in the current year is expected because of
a forecast decline in international student enrolments, due to travel restrictions imposed after the
COVID-19 outbreak in China.

Government policy

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Significant reforms to education policy and funding have influenced the division's performance over
the past five years.

Recurrent government expenditure is a large source of income for most division participants, so
changes to funding and education policy significantly affect the division's performance. While
government schools receive the most funding from relevant state and territory governments, funding
from the Federal Government has increased over the past five years. Following the Review of Funding
for Schooling in 2011, the Federal Government introduced a new funding model for primary and
secondary school education in 2014, known as Students First. Under the Students First model, schools
receive recurrent funding based on a benchmark amount per student, with additional funding
allocated to address student disadvantage.

The Federal Government implemented a demand-driven funding model in the University and Other
Higher Education industry in 2012. This model removed enrolment caps for undergraduate programs
supported by government funding. These changes have significantly increased student enrolments
over the past five years, lifting government funding for higher education institutions and boosting the
industry's overall revenue. In addition, the 2012 National Partnership Agreement on Skills Reform
expanded the VET FEE-HELP scheme nationally and removed credit transfer requirements, increasing
demand for vocational education over the period.

The Preschool Education industry has grown significantly over the past five years, partly due to
increased Federal Government funding from the Universal Access to Early Childhood Education
scheme. The Council of Australian Governments (COAG) implemented the National Partnership
Agreement on Early Childhood Education in 2008. This agreement aimed to provide all four-year-old
children with access to 15 hours of preschool education for 40 weeks per year. COAG endorsed the
second National Partnership Agreement on Early Childhood Education in 2013, reaffirming its
commitment to universal access to preschool education. Over 2016 and 2017, the Federal
Government allocated $840.0 million to the state and territory governments to support this goal. The
Federal Government allocated a further $428.0 million to continue funding the Universal Access to
Early Childhood Education program in 2018. An additional $453.1 million has also been allocated to
extend Universal Access to Early Childhood Education until the end of 2020.

International student enrolments

The number of international students studying at Australian Technical and Further Education (TAFE)
providers, universities and other tertiary education institutions heavily influences the performance of
the Tertiary Education segment.

The University and Other Higher Education industry generates approximately one-quarter of its
revenue from services provided to international students. This market also contributes significantly to
the Technical and Vocational Education and Training industry. International students also contribute
to the Art and Non-Vocational Education industry's revenue through English Language Intensive
Courses for Overseas Students enrolments.

International student enrolments have risen over the past five years, as the depreciation of the
Australian dollar has made tuition fees more affordable for international students. The Federal
Government introduced streamlined visa processing (SVP) arrangements for students in 2012, which

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have increased the number of international students studying in Australia. Under these arrangements,
students offered a place at an SVP-eligible institution were treated as low-risk, meaning that visa
approval did not depend on a student's financial capability and English language proficiency. In 2016,
the Simplified Student Visa Framework (SSVF) replaced the SVP. The SSVF reduced the number of
student visa subclasses and implemented a single immigration risk framework for all international
students. These reforms have contributed to increasing international student enrolments over the past
five years.

International student enrolments are expected to contract sharply in 2019-20, because of the COVID-
19 virus outbreak. A large proportion of Australia's international student body are Chinese nationals.
However, the Australian Government implemented travel restrictions on foreign nationals entering
Australia from China in early February 2020. This decision coincided with the beginning of the
academic year, limiting the ability of Chinese students to enrol in courses. In March 2020, the
Australian Government announced strict border regulations aimed at preventing the spread of COVID-
19. This regulation is expected to further reduce the number of international students enrolments and
contribute to a decline in profitability over the five years through 2019-20.

Industry trends

Most industries in the division operate either using government funds or on a non-profit basis.

Nevertheless, the division's growing number of private providers is expected to limit the decline in
division profitability over the period. Enterprise and establishment numbers in the division have
increased over the past five years, due to government reforms and increasing demand. For example,
the demand-driven funding model for university placements, introduced in 2012, has increased the
number of private enterprises operating in the tertiary education sector. However, merger and
acquisition activity in the private sector and the exit of providers unable to meet stringent operating
requirements have somewhat offset some of this expansion.

Cost concerns

Employment and total wage costs have risen over the past five years as the division has expanded to
meet growing demand.

Experienced and effective educators are crucial for delivering student learning outcomes. Effective
teachers have become more important as increasing significance has been placed on National
Assessment Program (Literacy and Numeracy) scores, and ATAR results, over the period. In addition,
universities have increasingly required teachers to hold PhD qualifications and the National Quality
Framework has introduced minimum staff-to-student ratios in preschools. These factors have caused
total wage costs to rise over the past five years.

Classrooms and lecture theatres have increasingly incorporated new technology over the past five
years, and digital platforms for learning and administration are now commonplace in the division.
Increased technology adoption has boosted capital costs for division operators and caused
depreciation expenses to rise as a share of revenue for many providers over the period. Use of new
technology is expected to be ramped up in the current year, as operators aim to allow students
unable to enter Australia to participate in classes remotely.

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Industry Outlook

Changes in government funding, and demographic and labour trends will continue to influence the
Education and Training division's performance over the next five years.

The population aged between five and 18 is forecast to continue rising over the next five years. This
trend will likely increase demand for private and government schools, which collectively represent
over half of total division revenue. Growth in government funding for schools, boosted by the Quality
Schools package, is projected to drive division expansion over the next five years. This expansion is
subsequently anticipated to support increases in employment and total wages over the period. As
many teaching positions will likely require higher qualifications, the division's average wage is also
forecast to rise over the next five years, constraining profit growth. However, the rise of online
courses will likely limit wage growth over the period, as online courses allow institutions to cater for
more students with fewer staff. Digital education is also anticipated to constrain growth in
establishment numbers across the tertiary and non-vocational education sectors over the next five
years. Population growth and increased public funding for primary, secondary and tertiary education
are projected to boost division revenue and enrolments over the period. Division revenue is forecast
to increase at an annualised 4.4% over the five years through 2024-25, to $167.2 billion. This
forecast is reliant on the travel restrictions imposed because of the COVID-19 virus outbreak being
relaxed in early 2020-21.

Government funding reforms

Commonwealth funding for Australian schools is anticipated to rise by $1.0 billion annually from 2018,
to total $32.4 billion in 2029 under the Quality Schools package (also known as the Gonski 2.0 funding
model).

This model allocates funding according to a base rate per student, with additional funding provided to
assist students with disabilities, low English proficiency, Aboriginal and Torres Strait Islander heritage,
or socio-educational disadvantage. Loadings will also depend on a school's size and location. This
additional funding is forecast to increase the resources available to public schools over the next five
years, making them more competitive compared with private schools. The Quality Schools package is
also projected to constrain revenue growth for some private schools over the period. Under the
package, the base amount received per student will be discounted based on the capacity to contribute
assessment for each school. This assessment measures a school's socio-economic status, calculated
using the local socio-economic index derived from the most recent Australian Census data and
students' residential addresses. Higher assessment scores will reduce the base amount of funding
provided. Therefore, many elite private schools are projected to receive less government funding.
However, increasing household discretionary incomes are forecast to support a continued rise in
private school tuition fees over the next five years. Enrolments in preschools, and public and private
schools, are anticipated to increase over the period, supporting division revenue growth.

In January 2017, the VET Student Loans scheme replaced the previous VET FEE-HELP program. The
VET scheme is forecast to reduce the funding available to the VET sector over the next five years.
This trend is due to a decreasing number of subsidised courses, stricter course eligibility requirements
for students and lower caps for student loans. Research initiatives undertaken by universities will likely
receive more funding over the period, supporting division revenue. However, the Federal Government

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has imposed a cap on funding for bachelor's degrees from January 2018 until 2020. From 2020
onwards, funding increases for bachelor's degrees will be linked to university performance, as well as
growth in the population aged 18 and 64. These changes are anticipated to restrict growth in the
University and Other Higher Education industry over the next five years.

International enrolments

The number of international students is forecast to increase over the next five years.

Favourable changes to post-study work visa requirements are projected to support international
enrolments, particularly at universities. However, Australia's high cost of living is projected to remain a
significant deterrent to international students over the period. Additionally, the anticipated
appreciation of the Australian dollar over the period will likely make tuition fees relatively more
expensive. Furthermore, countries such as the United Kingdom and Canada will likely intensify their
marketing campaigns to attract international students over the next five years, increasing external
competition. Consequently, the number of international enrolments is projected to rise at a much
slower rate over the next five years, compared with the previous five-year period. If travel restrictions
implemented because of the COVID-19 virus in early 2020 are retained for a long period of time,
international enrolments are likely to decline.

Demand trends

Demand for tertiary education is anticipated to grow over the next five years, driven by increases in
the population aged between 18 and 25, and a rising secondary school retention rate.

Formal qualifications are increasingly required for entry-level positions in the national workforce,
supporting future enrolments in tertiary education. However, profitability is forecast to decline for the
Art and Non-Vocational Education industry over the next five years, limiting growth in division profit
margins.

The Education and Training Division is counter cyclical, meaning demand can rise when general
economic conditions decline. The outbreak of the COVID-19 virus is forecast to have a largely
negative effect on the Australian economy, and potentially lead to a significant rise in unemployment.
When unemployment levels are high, many people upskill by enrolling in further education courses, to
make themselves more attractive to employers.

Industry Outlook 2020–2025

Bar chart with 6 bars.

View as data table, Industry Outlook 2020–2025

The chart has 1 X axis displaying Year. Range: 2019.95 to 2025.05.

The chart has 1 Y axis displaying Percentage (%). Range: 0 to 8.

Year Percentage (%) Industry Outlook2020–202520212223242502468Education and Training Source:


IBISWorld

End of interactive chart.

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Performance Data Outlook

Industry Data (Value)Industry Data (% change) Industry Ratios

Establishment Employmen Import


Revenue IVA Enterprises Exports Wages Domestic
Year s t s
($m) ($m) (Units) ($m) ($m) Demand ($m)
(Units) (Units) ($m)

2019– 81,94 72,37


134,563 46,881 26,614 825,563 N/A N/A N/A
20 9 0

2020– 85,42 75,36


144,696 48,812 27,166 849,484 N/A N/A N/A
21 2 8

2021– 87,61 77,18


150,290 48,417 26,963 863,133 N/A N/A N/A
22 2 2

2022– 88,85 78,05


156,383 49,497 27,621 864,441 N/A N/A N/A
23 7 3

2023– 92,23 81,01


160,928 49,952 28,079 883,444 N/A N/A N/A
24 1 6

2024– 94,99 83,40


167,239 50,967 28,246 900,168 N/A N/A N/A
25 4 9

2025– 95,01 83,55


168,382 51,021 28,922 900,122 N/A N/A N/A
26 2 2

Industry Life Cycle

The life cycle stage of this industry is Mature

The Education and Training division is in the mature phase of its economic stage of its economic life
cycle. Industry value added, a measure of the division's contribution to the economy, is projected to
increase at an annualised 2.4% over the 10 years through 2024-25. This trend represents an
outperformance relative to the economy, with Australian GDP forecast to grow at an annualised 2.3%
over the same period. This result is mainly due to higher government funding and strong demand for
more expensive education offerings such as private schools and universities.

Although some industries in the division are significantly expanding, others are growing more slowly.
The Technical and Vocational Education and Training industry is contracting, due to slowing student
enrolment numbers and changes to government funding arrangements. Conversely, revenue
generated by the Government Schools industry and the Private Schools industry is forecast to grow

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strongly over the next five years, mainly due to significantly higher funding provided by the Quality
Schools package.

Each industry in the division offers an extensive range of services, catering to a diverse group of
students across a range of markets. Operators continue to assess the needs of students to determine
what other facilities may be added. Universities and TAFEs are increasingly responding to market
needs and developing courses to fill labour shortages and skill mismatches. The division's growth has
encouraged many incumbent providers to expand their operations and private providers to enter the
division. However, the education sector is well established, with a largely saturated market and a
developed range of programs and services. Education courses and qualifications are also clearly
segmented. Furthermore, the market for services supplied by the division has displayed minimal
change over the past five years, as it is largely based on population demographics that do not
fundamentally change.

LIFE CYCLE REASONS

 Industry value added is growing primarily due to increasing government funding

 Courses and services in the division are clearly defined and segmented

 The number of industry establishments is growing

The Education and Training division consists of several industries that provide different levels of
education.

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Education levels range from preschool to university and other higher education. The Government
Schools industry is the largest industry operating in the division and the Sports Instructors industry is
the smallest.

Government schools

Government-administered schools provide primary and secondary education.

Some public schools charge voluntary fees to families, but they cannot deny access to students if a
family cannot pay these fees. School funding structures have been reformed following the Gonksi
reports and significant public pressure. These reforms include strong growth in state and federal
funding to the Government Schools industry. As a result, this segment has grown as a share of
division revenue over the past five years. The Quality Schools package, introduced in January 2018, is
expected to drive revenue increases for government schools in the current year.
University and other higher education

The University and Other Higher Education industry consists of accredited providers of undergraduate
and postgraduate degrees, as listed in the Higher Education Support Act 2003.

This segment shifted to a demand-driven model with the removal of caps on undergraduate course
places in 2012, causing domestic student enrolments to rise. However, enrolments in postgraduate
diplomas and undergraduate courses other than bachelor's degrees have declined, placing downward
pressure on revenue for this industry. Growth in international student numbers have driven this
segment higher as a share of division revenue over the past five years. However, the decline in
international student enrolments in the current year because of the travel restrictions implemented to
halt the spread of COVID-19 are expected to reduce the segment's contribution to division revenue in
the current year.

Private schools

Private school operators provide primary and secondary education for a compulsory fee.

Although state and territory governments do not administer schools in this industry, these schools
must adhere to education policies set by relevant jurisdictions. Private schools must be non-profit to
be eligible for government funding. Private school tuition fees and enrolment numbers have risen over
the past five years due to the growing importance placed on National Assessment Program (Literacy
and Numeracy) and ATAR scores and increases in household disposable income. As a result, the
Private Schools industry's share of division revenue has increased over the period.

Technical and vocational education and training

The Technical and Vocational Education and Training industry consists of registered training
organisations, including TAFEs and other private and community providers of technical and vocational
education.

An influx of registered training organisations and online providers has caused industry competition to
intensify over the past five years, placing downward pressure on prices for technical and vocational
education courses. Additionally, in 2017 the Federal Government replaced the VET FEE-HELP system

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with the more stringent VET Student Loans program. This program reduced the number of subsidised
VET courses and introduced stricter eligibility requirements for students and providers. The Technical
and Vocational Education and Training industry's share of division revenue has fallen over the past
five years, due to revenue declines in this industry.

Art and non-vocational education

The Art and Non-Vocational Education industry consists of a range of education providers such as
tutors, driving schools, language schools and performing arts colleges.

Increases in business coaching enrolments and revenue from English Language Intensive Courses for
Overseas Students has supported this industry as a share of division revenue over the past five years.
Demand for tutoring services has also risen over the period, as parents have sought to provide their
children with a competitive advantage in school. However, other industries have outpaced demand
growth in the Art and Non-Vocational Education industry over the past five years. As a result, this
industry's share of division revenue has fallen over the period.

Preschool education

Preschool operators provide accredited pre-primary education, which prepares children for school.

These programs educate children aged three through five, and are conducted by public, private and
community providers. The Preschool Education industry's share of division revenue has slightly
increased over the past five years, primarily due to growth in government funding. The Universal
Access to Early Childhood Education program has worked to improve the quality and consistency of
preschool education by setting compulsory national standards. As part of the program, the Federal
Government aimed to have all children aged four attend 15 hours of preschool education for 40 weeks
each year. Increased government funding and rising enrolment numbers have boosted revenue for
preschool education over the past five years.

Sports instruction

The Sports Instructors industry is the smallest industry in the Education and Training division.

This industry provides non-vocational instruction in sporting and physical recreation activities and
does not include fitness instructors. This segment's share of division revenue has declined over the
past five years, due to faster growth in other education industries.

Demand Determinants

Demand for education is primarily determined by demographics, the employment market, job skill
requirements and government policy.

To a lesser extent, demand for educational services is also affected by exchange rate movements and
immigration policy, which influence international student enrolment. Schooling for children aged
between six and 16 is compulsory, with some variation among the states and territories. The
population's age distribution affects demand for different levels of education. An increase in births
raises the demand for preschool and primary school services in the following four to five years. As
these individuals grow older, demand for education shifts to the secondary level.

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In an increasingly knowledge-based economy, more occupations now require higher education
qualifications. This trend has boosted demand for TAFE and university courses over the past five
years. Changes in the mix of skills and occupations required by various industries influence demand
for education. Mature-age individuals are returning to education due to shifting workforce skill
requirements. A growing skills mismatch and poor supply of labour in certain industries have
prompted government responses to close the labour gap. The introduction of technology into many
different fields of work has stimulated demand for training in new processes. This trend has
particularly benefited TAFEs over the past five years. Government support for students in post-school
education, such as TAFE and university, also encourages students to stay in school. Conversely, a low
and falling unemployment rate may encourage high school students to enter the workforce after
exiting high school instead of undertaking further study.

Non-vocational education is growing in prevalence, with greater numbers of international students


boosting demand for English language courses. Business confidence and labour market conditions also
affect demand for education. During periods of low business confidence, employers are reluctant to
invest in the professional development of their staff. However, a rising unemployment rate and slow
wage growth typically increases demand for educational services as a means of improving career
development opportunities.

International Trade

Exports in this industry are Low and Increasing

Imports Low and Steady

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While the Education and Training division does not directly participate in international trade, fees paid
by international students represent export revenue for education providers. This revenue derives from
education services delivered both onshore at Australian campuses and offshore via the internet,
correspondence, or Australian institutions located overseas. Universities and TAFEs are most
vulnerable to declining international student numbers as they heavily rely on this market for revenue.
International enrolments in Australian education surged at the beginning of the decade but started to
decline in 2010. Various factors were responsible for the weaker demand, including the effects of the
global financial crisis, an appreciating Australian dollar, visa and immigration changes and more
aggressive recruitment from competitor markets, such as the United States, the United Kingdom and
Canada. However, the number of international students has risen over the past five years, due to a
relaxation of student visa requirements and the depreciation of the Australian dollar.

Competitive landscape

Market Share Concentration

Concentration in this industry is Low

The Education and Training division exhibits low level of market share concentration, with the four
largest operators expected to account for less than 40% of industry revenue in the current year.
Industries in the Education and Training division typically feature many small operators that do not
have a dominant market share. The division's three largest players are the NSW Department of
Education, the Department of Education and Training Victoria, and the Queensland Department of
Education and Training. The Private Schools industry exhibits higher concentration than the
Government Schools industry, as private schools typically charge higher fees and tuition, boosting
their revenue and market share. The Preschool Education industry displays low market share
concentration as it mainly consists of community-based organisations.

The University and Other Higher Education industry's market share concentration is low, but high
compared with the rest of the division. This higher concentration is due to government policy and
historical development. In comparison, the Technical and Vocational Education and Training industry
is dominated by the different state governments which run separate TAFE systems. This industry's
market share concentration has fluctuated over the past five years in response to changing
government funding structures and revenue from international student fees.

The Art and Non-Vocational Education industry, and the Sports Instructors industry have the lowest
industry concentrations of the division. The Art and Non-Vocational Education industry offers a range
of services and many firms specialise in niche markets, contributing to low industry concentration.
This industry has many owner-operator businesses, such as driving schools and tutoring services.
Overall, the division's market share concentration is likely to remain low over the long term due to the
diverse nature of these industries.

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Excerpt from NCVER Report:

Market snapshot:

 In 2016, training activity was reported by 4279 training providers, with registered training
organisations accounting for nearly all training activity

 it is estimated there were 4.2 million clients enrolled in VET with an Australian training
provider in 2016, a 4.9% increase from an estimated 4.0 million in 2015

 the participation rate of VET clients in Australia as a proportion of the Australian population
aged 15—64 years is estimated at 24.2%, an increase from 23.5% in 2015

 there were 3.7 million program enrolments, a 3.8% increase from 2015

 nationally recognised training accounted for 85.2% of all program enrolments, a 2.3%
decrease from 2015

Excerpt from Seek Employment Report:

Workplace training and assessment was another area of job ad growth for December, with SEEK ads
up by 17% year-on-year. "That area of our business has certainly been busy and we're seeing a lot of
in-house workplace training roles," says Jones. "Training is still quite high on the agenda for many
organisations at the moment, which is good news for candidates across most industries."

Jo ads for early childhood teaching roles were also up by 12% year-on-year and adult education was
on the rise. Tertiary teaching roles grew by 11% compared to the same time last year and vocational
teaching increased by 2% over the same period.

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Excerpt from ABS Work Related Training and Adult Learning :

The Survey of Work-Related Training and Adult Learning (WRTAL) was collected throughout Australia
from July 2016 to June 2017.

 Four in ten (40.9%) Australians aged 15-74 years participated in formal and/or non-formal
learning in 2016-17. Participation has decreased since the last survey in 2013 (46.4%) and
since 2005 (48.9%).

 More men than women participated in formal and/or non-formal learning in 2005. By 2013,
participation was higher for women than men, and this continues to be the case in 2016-17.

 One in two (50.5%) men participated in 2005, decreasing to 45.1% in 2013 and then to
39.4% in 2016-17. Women's participation rate was relatively stable between 2005 (47.2%)
and 2013 (47.7%) but then fell to 42.3% in 2016-17.

 Participation in formal and/or non-formal learning in 2016-17 was higher for people who were
working or unemployed (in the labour force) (46.1%) than for those not in the labour force
(28.1%). However, participation by people in the labour force has decreased from the rates
recorded in 2005 (59.1%) and then in 2013 (53.1%) to 46.1% in 2016-17. In comparison,
participation by people not in the labour force increased from 2005 (25.2%) to 2013 (29.9%)
but then decreased in 2016-17 (28.1%).

Graph 1 - Participation in formal & or non-formal learning by age groups, 2005, 2013 & 2016-17(a)(b)
(c)(d)

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Suggested websites and readings:

 Department of education, skills, and employment – Skill shortages:


https://www.employment.gov.au/skillshortages

 Top 20 most-needed roles in Australia: https://www.seek.com.au/career-


advice/article/australias-most-needed-jobs

 20 Skills in Demand in Today's Workforce: https://www.indeed.com/career-advice/finding-a-


job/in-demand-skills

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