Title: JOINT VENTURE PRESENTATION
1JOINT VENTURE PRESENTATION
- OECD forum
- 12 October 2004
2JOINT VENTURES GROWING THE FUTURE
- Jenny Hannan
- Group General Manager Education
- Insearch University of Technology Sydney
3Overview
- History of Insearch UTS and joint ventures
- The education environment
- Joint ventures
- Motivation for developing a joint venture
- Joint ventures the basic necessities
- Joint ventures marriages made in heaven
- Critical success factors
- Benefits
4History Insearch UTS joint ventures
- Recent awards
- 2003 National Education Exporter of the Year
Award - 2002 NSW Exporter of the Year Award
- 2004 UTS Human Rights Award
- Insearch UTS
- Controlled entity of the University of Technology
- 1987 began delivery of education programs
- 1991 introduced the pathway model for
international undergraduates to articulate to
university programs. - - Pathway program principles access to
education internationalisation and recognition
of prior learning. - 1994 Joint venture with Shanghai university to
establish the Sydney Institute of Language and
Culture SILC. 1994 200 students and a single
program. 2004 2700 students will multiple pre
and undergraduate programs.
5History continued...
- 1994 Joint venture with International
Development Program (IDP) the Australia Centre
ChaingMai Thailand - 1994 Joint venture with IDP the Australian
Centre Medan - 2002 Joint venture with IDP Australia Centre
for Education and Training (ACET) Ho Chih Minh
City and ACET Hanoi - 1996 Joint venture with the International Office
of the University of Technology to publish IELTS
preparation books and run the UTS IELTS testing
centre - 2003 Joint venture with the Australian
Broadcasting Commission ABC Asia Pacific for a
26-part series on IELTS broadcast across Asia and
the subcontinent with www text and sound linkage
6History continued...
- 2003 Insearch and UTS contract with the
government of Vietnam for the delivery of
lower-secondary teacher training in Vietnam as
part of an Asian Development Bank project. The
project involves the delivery of the UTS Masters
of Education degree in collaboration with Hanoi
University of Education Universitat Potsdam and
the University of South Australia. - 2004 Joint venture with the University of Essex
UK
7 and the future
- 2005 Joint venture with the Beijing Language and
Culture University and the University of
California for an English language training
institute in Beijing planned opening in March
2005 with 200 students.
8The Education Environment
- 1980s
- Australian government funded study for
international students decreased - Growth in global trade had implications for
internationalising the education system - Inadequate education infrastructure
- Australian international education in1990s
- Growth in transnational education delivery
- - 18.3 in 1996
- - 26.9 in 1999
- Growth in transnational programs
- - 200 in 1996
- - 500 in 1999
9The Education Environment cont.
- 2000 and beyond
- 2001 1000 partnerships in existence (AVCC
2001) - 2002 transnational study 36 of the
international student population (IDP 2002) - 2025 transnational study predicted to grow to c.
44 of the international student population
(DEST 2002)
10English language and transnational study
- Predictions are that by 2010 76 of the global
demand for English - Speaking destinations will be absorbed by
countries in Asia - Particularly China and India
- (Joint IDP and British Council report Vision
2020 Forecasting - International Student Mobility April 2004)
11Joint Ventures
The growth in transnational education is a key
driver for education joint ventures. Global
access to education is a political priority and a
key driver for joint ventures One of the
real threats to the future is that 85 percent of
the worlds population has inadequate provision
in education infrastructure.
12Joint Ventures and the scale of commitment
- Type of relationship Example Scale of Commitment
- no relationship No commitment
- one-off transaction delivery of one course
- co-development allianceonline consortia /
national branding - minor-equity alliance public-private
partnerships / franchises - shared-equity alliancejoint ventures
- merger / acquisition High commitment
13Motivation for developing a joint venture
14- The following areas need to be considered when
forming a joint venture -
- Capital
- Branding
- Expertise
- Resources
- Cultural
- Legal
- National/local government support
15Joint ventures the necessities
- (From Delloitte. Its Down to Business with the
Reality of Growth - Guide 2)
16- Success in a joint venture depends on the choice
of JV partner. - Successful choice depends on
- The partners sharing similar objectives
- The partners commitment to making the JV work
- A reward from the relationship and
- An equal share in the risks and rewards.
17- If there is a fit with your organisation and the
prospective partner - Financially
- Operationally
- Legally and from a
- Governance / regulatory perspective
- If you have researched your potential partners
track record in - Maintaining relationships
- Resources to commit to the venture and
- History of long-term commitment
- then the building blocks for an alliance are in
place.
18Joint Ventures Marriages made in heaven
19- Two quotes
- Breakdowns in business alliances in Australia
will outstrip marital - Breakdowns by 50 in five years.
- - Walter Dinale
- Leader Deloittes Growth Initiative
- Quite simply where there was a mismatch between
the Australian - University and the overseas education provider on
the primary objectives - and vision for the relationship deterioration
and potential termination in - the relationship often occurred
- - Heffernan Poole
- Catch Me Im Falling Key Factors in the
deterioration of offshore - educations partnerships.
20Critical Success Factors
- Assuming that financial legal and regulatory
elements are stable the two critical factors
are - Communication
- Shared goals and vision
21Communication and shared vision
- High levels of internal commitment communicated
clearly and consistently including - Involvement of senior management
- Involvement of link departments (eg. Library
student administration academic staff) - Appointment of a relationship manager
- Creation and propagation of protocols and
responsibilities
22Benefits
- There must be real benefits for both partners. If
the partnership is - successfully established it will provide
- Shared financial commitment
- Shared risk
- Growth
- Mutual learning professional development
- Increased research capacity
- Widening markets / programs / opportunities
23Thank you
