BSBPMG637 - Assessment Task 2 V2
BSBPMG637 - Assessment Task 2 V2
BSBPMG637 - Assessment Task 2 V2
Task 2
Engage in collaborative
alliances
BSBPMG637
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Table of Content
Student Declaration........................................................................................................................2
Task 2 – Identify opportunities for and establish collaborative agreements...............6
Task 2.1 Identify opportunities for collaboration.........................................................................8
The trainer and assessor will play the role of the Program Sponsor in
simulated work conditions.
Consult with them as required.
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)
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
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.
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.
Planning Notes
B) Sample Document
Prepare and submit a sample document used to approach and/or develop the working relationship
with the potential collaborator.
Copy and paste the sample in the space below or submit it separately with your assessment.
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
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.
Collaboration Plan
Action Plan Action Schedule Roles and
Responsibilities
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.
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:
Duration: 30 minutes.
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
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
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.
CEO CFO
Finance
Department
Client Services
Marketing Manager HR Manager Academic Manager IT outsources
Manager
Client Services
Marketing Team HR Team AcademicTeam
Team
Board of Directors
Summary of duties: account receivable, account payable; invoicing; payroll; financial record
keeping and reporting; taxes/fees
Summary of duties: promotion; design of marketing collaterals for events; social media; market
research; public relations
Summary of duties:
o front of office and back of office customer service activities (to include reception and
response to enquiries)
o client admin: client admission, enrolment, enrolment variations, pastoral care, completion
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.
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
40% of the shares are held by an external corporation since late 2017, as a silent business
partner
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.
Values
Quality
Integrity
Accountability
Innovation
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
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 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
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
Operational overview
Systems in use:
o Accounting Management System (MYOB) – does not interface with MMI system
o Share drive
o Share points
o Zoom
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.
Operational issues
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)
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
Workforce Overview
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.
Gender unbalanced
Recruitment is done externally, few opportunities for advancement are offered to existing staff
o Silo mentality
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.
Managers – 120k/year
Receptionist $ 52k/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:
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
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
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.
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
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.
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
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.
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.
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
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.
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
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.
Courses and services in the division are clearly defined and segmented
The Education and Training division consists of several industries that provide different levels of
education.
Government schools
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.
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
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.
International Trade
Imports Low and Steady
Competitive landscape
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.
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
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.
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)