Enhancing Education Tourism with Participation of State Universities Essay

ENHANCING PHILIPPINE TOURISM THROUGH EDUCATION WITH FOCUS ON PARTICIPATION OF A STATE UNIVERSITY in partial fulfillment of the requirements for MHTM 206 “Business Strategies Applied in Hospitality Management” and MHTM 207 “Seminar on Risks and Safety Management in Hospitality Industry” Master in Business Administration Executive Program Major in Hospitality and Tourism Management Submitted to Prof. Dr. DiosdadoAmante Eulogio “Amang” Rodriguez Institute of Science and Technology Nagtahan, Sampaloc, Manila Phase I, AY 2010-2011

Submitted by MARYLEE D. SAN BUENAVENTURA PART I. PROJECT CONSIDERATION BRIEF DESCRIPTION The Philippine Tourism Law (Republic Act 9593) underscores that “the State declares tourism as an indispensable element of the national economy and an industry of national interest and importance, which must be harnessed as an engine of socio-economic growth and cultural affirmation to generate investment, foreign exchange and employment, and to continue to mold an enhanced sense of national pride for all Filipinos. ”

We will write a custom essay sample on
Enhancing Education Tourism with Participation of State Universities Essay
or any similar topic only for you
Order now

Among others, the State shall seek to a) Recognize sustainable tourism development as integral to the national socio- economic development efforts to improve the quality of life of the Filipino people, providing the appropriate attention and support for the growth of this industry; and b) Create a favorable image of the Philippines within the international community, thereby strengthening the country’s attraction as a tourism destination and eventually paving the way for other benefits that may result from a positive global view of the country”. The recent enactment of R. A. 593 is an effort of the Philippine government to strengthen the tourism and hospitality industry and articulate the role of the Department of Tourism in this development goal. However, the Tourism Department cannot accomplish the rapid development of the industry alone. Despite its best efforts, the number of tourists visiting the country, including Filipino balikbayans number only a little more than three million (3,000,000). International education has long been pointed out as one of the more lucrative strategies to increase tourist arrivals in the form of educational tourism. In a paper on international education penned by Prof.

Ma. Crisanta Flores from UP Diliman, she mentioned that more than two and a half million young people study overseas. Malaysia had 71,000 foreign students in 2009 and wanted to increase to 100,000 in 2010. Singapore had 97,000 foreign students in 2008 and wants to increase this to 150,000 in 2015. It appears that the Philippines can take a cue from its economically successful Southeast Asian neighbors. English proficiency, being a social capital that Filipinos can easily polish, is a much sought after “commodity” among non-English speaking Asians. In China, 175 million persons study English, according to Prof.

Flores. Koreans come to the Philippine to study English and stay to establish businesses. There are a number of reasons why Asian universities have become attractive to foreign students. After the 9/11 incident, the United States has restricted visa to foreign students. The expensive exchange rate of the Euro has prohibited students from going to Europe. The Philippines has unique advantages to Asian students wanting to study in an English language university—education is cheap, universities are established, and Filipino teachers are not as intimidating to Asian students as much as Caucasian teachers would be.

There are more than 1,600 higher education institutions (HEIs) in the Philippines and majority of them are privately owned. There are 110 state universities and colleges (SUCs) and around 70 local universities and colleges (LUCs). Although these public HEIs are criticized for the huge government expense of maintaining them, there are selected HEIs who are performing well and producing good graduates. One of the strategies for sustaining the operations of HEIs and improving their facilities is to increase their capabilities in generating income from operations.

The Higher Education Modernization Act of1997 (Republic Act 8292) spells out the powers and duties of the Governing Boards of State Universities and Colleges (SUCs), among others, “to enter into joint ventures with business and industry for the profitable development and management of the economic assets of the college or institution, the proceeds from which to be used for the development and strengthening of the college or university; and “to develop consortia and other forms of linkages with local government units, institutions and agencies, both public and private, local and foreign, in furtherance of the purposes and objectives of the institution”.

In recent years, the country has seen the corporatization of the private HEIs with infusion of investments from local companies, resulting in the escalation of tuition rates. The same strategy cannot be applied to SUCs because they have specific mandates to provide access to the less privileged. With limited resources, SUCs need to find ways to beef up their income not only from taxpayer’s money, but by using their core skills which are the provision of educational services and research. An offer from a group of Filipino investors based in Hong Kong was made to Philippine HEIs to participate in a program to accept as many as 2,000 foreign students per HEI beginning in 2013.

The investors, through their local marketing agent, will advance the financial resources required to improve the facilities of these HEIs and guarantee the tuition of the number of students the HEIs will agree to accept. For this purpose, a Memorandum of Agreement will be forged between the local marketing agent and the HEI, providing the local marketing agent 5% of the proceeds from the tuition fee as development fee. In return for the favor of accepting the foreign students, the investors, through the local marketing agent, will advance as well, the investment to build the dormitories, commercial centers, recreation facilities, and other life balance and support services.

They will lease property from the school on which to build these facilities and commercial buildings, to ensure the stay of the foreign students in the Philippines will be safe, comfortable and enjoyable. These facilities, and the goods and services sold therein will be private ventures and will be paid for by the students from their private funds. The HEI will no longer have any direct involvement in these businesses, except for regulatory purposes, to ensure the students’ interests are protected. In addition to these activities, the local marketing agent will also pay for the scholarships of Filipino students corresponding in number to 10% of foreign students that they will be able to bring in. VISION The Philippines as the destination of choice among Asian students for English proficiency training and baccalaureate degrees. MISSION

To provide quality educational services to Asian youth through the transformation of a number of Philippine state universities into institutions of higher learning that will rank high among the top 500 Asian universities in terms of English language teaching and business education. GOAL To certify 60,000 students in English Proficiency with international standard certification, and graduate as many as 54,000 students in baccalaureate degrees in each participating SU within a period of 31 years from 2013 to 2042. Objectives: 1. To transform the respective campuses of participating SUs into tourism destinations in the Philippines as evidenced by visitor count and student inquiries 2. To build additional infrastructure and facilities to prepare to accommodate 2,000 students in English proficiency and 10,000 students in baccalaureate programs between 2011 to 2043. 3.

To develop an English Proficiency Program (EPP) with international certification that will be delivered in ten months (2 semesters) to non- English speaking Asian students provided they have completed 12 years of basic education in their home country. 4. To upgrade the business education program, English language program, and information technology program of the SU, among others, to be a CHED Center of Excellence in these programs and obtain International accreditation. 5. To provide world- class teacher training to at least 500 teachers, and to make 375 of them obtain at least full fledged masters degrees. 6. To increase investment in education, the hospitality and tourism industry, and related sectors, to ensure reliable and steady supply of goods and services that will be needed by as many as 10,000 foreign students in the vicinity of the SU campus. 7.

To benefit local communities by opening up business opportunities, providing more training and employment, and increasing household incomes. PHILOSOPHY/ CORE VALUES 1. EXCELLENCE – product and service excellence are means to become world class and sustain competitive advantage 2. PATRIOTISM- love of country and pride in the Filipino—our culture, abilities, talents, values, and work ethics 3. RESPECT FOR DIVERSITY – that Filipino hospitability embodies respect of, and value for persons, of different nationalities, culture and belief systems 4. SERVICE – that the students/ tourists’ experience with the Filipinos’ sincere and enthusiastic service will be a memorable and valued experience, encouraging them to come back and “spread the word” 5.

TOLERANCE – that the Filipinos’ inherent compassion and non-judgmental character provides safety and comfort to every foreign student/ toruist 6. ENTREPRENEURSHIP – that the Filipinos’ creativity and pride compels us to consistently deliver only the best product, processes and service 7. SOCIAL JUSTICE – this commitment to excellence is a shared commitment by the whole university community and thus the gains from the enterprise ought to be equally shared by all 8. GLOBALIZATION- mindful that we are living in a shared planet, we commit ourselves to the preservation of peace, care for the environment and sustainable growth PART II: PROJECT MANAGEMENT STRATEGY Divide the management of various aspects of program implementation mong the stakeholders: the University, the Investors and the Marketing Conduit A. University 1. The state university will be solely responsible for delivery of the academic program and management of academic facilities 2. The Office of the President shall be on top of the program, to be assisted by the Vice president for Academic Affairs and the International Linkages Office under the Director for Public Affairs 3. Under the direction of the VPAA, the English Department shall be in charge of enhancing the English Proficiency Program (EPP), making sure that the program complies with the requirements of International Accreditation for TOEFL, TOEIC, and IELTS 4.

Strengthen the Office of Coordinator for Accreditation to facilitate improvement of the baccalaureate programs (in coordination with the respective units/ departments) , working for international accreditation and recognition of priority programs, and transforming the units into Centers of Excellence (COEs) or Centers of Development of their respective disciplines. 5. Strengthen the International Linkages Office. Beef up staff and assign 1 coordinator, for every 100 students on a consultancy basis, particularly make sure that the coordinators are proficient in English as well as the native language of the students 6. Strengthen the Human Resource Management Office to manage team/ community building activities among the members of the SU community; resolve conflicts and create a culture of cooperation and unity. 7. Strengthen the University Publication and media Services and direct them to innovate and develop non- conventional materials to advertise the university 8.

Enhance managerial skills and increase number of general administration support personnel to complement the work of the faculty 9. Auxilliary student services that can be out-sourced- such as residential facilities, food service, bookstore and school supplies, uniforms, and internet services– to local suppliers and providers (in conjunction with the financing strategy) 10. The university Pre-qualification, Bidding and Awards Committee (PBAC) shall undertake all procurement processes in accordance with Republic Act 9184, also known as the Philippine Procurement Law. 11. To enhance decision making, maximize information communication technology (ICT) systems. B. Marketing Conduit

The private conduit agency shall be primarily in charge of generating demand for services and to bring in foreign students according to a pre-agreed scheme. The company shall coordinate with the Embassies of foreign nationals in transitioning the students into the local community. C. Investor The investor shall be primarily in charge of ensuring that financial resources are secured for payment for educational services of the SU, and that investments for the infrastructure requirement of the academic program and support services will be available. D. Community Stakeholders The local producers, manufacturers and suppliers of commodities shall be tapped to provide the needed raw materials and finished goods.

They shall link up with concessionaires to take advantage of the opportunities in favor of the local economy. All things being equal, cooperatives and people’s organizations shall be given the first chance to come in as concessionaires. The local government unit shall be informed of these opportunities and their political support for the program shall be obtained. PART III: MARKETING MANAGEMENT STRATEGY A. PROJECT MARKETING DESCRIPTION 1. Consult the academic community, involve them in the strategic planning process, determine the participation of every member, and obtain their commitment to the program 2. Prepare a Benefit Plan for the faculty and staff and implement the plan. . Obtain the governing board’s approval and support. 4. Consult the district Congressman, LGUs, local development council, local chambers of industry. 5. Consult with local cooperatives, agricultural crops suppliers, food service providers, vendors associations to explain the benefits of the program to the community, and obtain their commitment to participate in provision of services. 6. Coordinate with investors and agents who will be bringing in the foreign students every step of the process. 7. Advertise the image of the University in mass media and the Internet as a reputable institution with capability to offer educational services. 8.

Advertise the tourist attractions in the vicinity of the University, the cultural events, tourism destinations, and indigenous cultural practices that are worth seeing. 9. Develop the English Proficiency program and selected low-cost, easy-to-manage, baccalaureate programs like Business Administration, information technology, and English Communication Arts. 10. Enhance these educational services to global standards by submitting to ISO certification of the university and/or international accreditation of the priority programs. 11. Strengthen international linkages through research and development. 12. Establish a system of accrediting foreign students agencies. 13.

Require long- term service contracts with accredited agents 14. Offer the program as a total package of quality educational and tourism experience B. MARKETING PROGRAMS 1. Building an International Culture: Workshops of Administrators, Faculty, Staff and Students 2. Seminars and Training for Faculty and Staff on Education Tourism as an Institutional Thrust 3. Social Mobilization for the Establishment of the University as an Educational Tourism Destination 4. Moving Towards ISO Certification of the University 5. International Accreditation of the EPP as an ESL Program for TOEFL, TOEIC & IELTS 6. International Accreditation of Business Education and Information Technology programs 7.

Information, Education and Communication Campaign to Project the Accession of the University to International Standards 8. Centers of Excellence/ Development in Business Education, Information Technology and English PART IV. TECHNICAL MANAGEMENT STRATEGY A. Infrastructure for Academic Services The SU shall set aside five hectares of their property for the expansion of facilities. The academic building for this project and other facilities will be financed by the investor and turned over to the SU as donation. In exchange for which, the SU shall lease to the investor five hectares of land for thirty (30) years, for the development of support facilities which will be privately operated. The academic complex shall consist of the following: 1.

Multi story main building will house the following rooms and will be appropriately provided with state-of-the-art furniture and equipment (See attached matrix for details): a. 250 classrooms with 45 seats (maximum of 40 students per class), airconditioned, multimedia facilities, internet access b. 20 speech laboratories with 20 seats, airconditioned, equipped with headsets and speech training software c. 16 science laboratory rooms, 2 each for earth science, biology, chemistry and physics with 40 seats each, equipped with state-of-the-art laboratory equipment which will be used both for research and instruction, with multimedia facilities, internet access d. computer laboratories with 45 seats, equipped with appropriate hardwatre and software, multimedia facilities, & internet access for teaching major subjects in IT. e. 5 lecture halls with 200 seats for combined lecture classes, with multimedia facilities, internet access f. 2 audio visual mini theatres with 2,000 seats for year- level or department level assemblies and conferences, with a theatre system g. 1 main theatre with 10,000 seats for campus- wide assemblies, with a theatre system h. 5 libraries – each with 1,000 seats for the major groups of discipline: (1) Liberal Arts (including Language) and Education, (2) Sciences and Mathematics, (3) Philosophy and Social Science, (4) Business Education, and (5) Information Technology, each with multimedia facilities and internet access i. Shared Faculty Offices j. Ten (10) individual offices for Senior Professors k. 4 meeting rooms with up to 50 seats for department level faculty meetings and student meetings l. 2 music rooms for recreation, equipped with musical instruments m. 2 art rooms for recreation equipped with materials and equipment n. 5 Administrative Offices for University President, Vice Presidents, Student Affairs, and International Linkage Office o. 1 Board Room for meetings of the Governing Board, and university Academic or Administrative Councils with the President 2. Construct the following outdoor facilities with appropriate state-of-the-art equipment: a.

Covered Court that can accommodate 10,000 persons for University- wide assembly, with movable stage and public address system b. 3 Function Halls for parties & events that can accommodate up to 500 persons c. 1 Olympic Size Pool d. Track & Field: i. Baseball/ Softball Diamond ii. Lawn Tennis iii. Soccer Football Field iv. Marathon Track v. High Jump vi. Long Jump e. Gymnasium i. Bleachers with 5,000 seats ii. Movable stage iii. 4 Table Tennis tables iv. 4 Dart Boards v. 4 Badminton Courts vi. 4 Volleyball Courts vii. 2 Basketball Courts viii. 1 Martial Arts Room ix. 1 Gymnastics x. Yoga/ Meditation Room xi. Aerobics & Dancing Studio xii. Fitness Facilities f.

Open Air Ampitheater that can seat 2,000 g. Wall Climbing h. Rapelling i. Obstacle Course/ Airsoft Field B. Infrastructure for Support Services The investor and marketing conduit shall lease a five- hectare land from the school at P1,000. 00 a year for thirty (30) years. The land will be used to construct support facilities in accordance with the development plan of the SU. After thirty (30) years, the improvements on the property will be possessed by the SU. An arewa development plan will be presented to the SU governing board for approval. The construction plan or rehabilitation of any infrastructure, shall be subject to approval of the governing board.

The following infrastructure for support services which they will directly operate or lease: 1. 10,000 bed dormitory(ies) for foreign students 2. 1,000- room hotel to accommodate family members of students who come to visit 3. Food Service: Concessionaires for Cafeteria, Snack Bars, and Specialty Food Retail Kiosks (Drinks, Chinese Dimsum/ Deli, Sandwiches, Ice Cream, Pizza, Coffee, Cake & Pastry etc. ), except for liquor, cigarettes and beer. 4. Raw Materials Market (Fresh fish, meat, poultry, vegetables, fruits and condiments) to supply concessionaires 5. Laundry (automated, self- service or manned) 6. Sports and Fitness Gym 7. Tailoring Shop for Uniforms & Other clothing 8. Bookstores and School Supplies 9. Cinema 10.

Commercial Center to be leased to: a. Banks b. Groceries c. Drug Store/ Pharmacy d. Clothing and Accessories Boutiques e. Grooming Salons and Spa f. Health & Fitness Salon g. Insurance Companies h. Travel Agents and Tourism Companies i. Transportation rental companies j. Dental, Optical and Medical Offices k. Electronics Equipment l. Computer and Electronics Repair Shop m. Package Courier/ Postal Service n. Restaurants o. Coffee Shops p. Specialty Stores q. Tutorial Centers C. Acquisition of Equipment An inventory of equipment to be procured for the program is attached. Equipment Number Whiteboard 320 Platform 280

Stage 3 Teacher’s Chair 591 Teacher’s Table 576 Teacher’s Cabinet 326 Silver Screen 325 Multimedia Projector 300 TV Set with Plasma Screen 301 Digital Audio-Video Player 278 Equipment Number Speaker System 278 Aircon Unit 286 Wifi LAN, Access Point 266 Electrical Outlet 1,913 Students Desks 45,500 Students Chair/Stool 46,780 Armchairs 15,000 Mini Theatre System 2 Main Theatre System 1 Speech Lab Consoles 500

Speech Lab Teacher Consoles 25 Speech Lab Software 525 Lab Cabinet 32 Science Lab Tables 320 Microscopes 160 Computers 1,293 Earth Science Lab Modules 80 Bio Lab Modules 80 Chemistry Lab Modules 80 Physics Lab Modules 80 6-8 Seater Tables 250 2-4 Seater Tables 750 Meeting Table (seats 20 persons) 5 Desks 330 Chairs 5,210 Cubicles 250 Shelves 516 Computer Chairs 833 Photocopiers 35 Scanners 28

Modular Computer Tables 4-seaters 80 Printers 33 Videocam 334 Headsets 585 Piano 1 Electronic Organ 4 Guitar 4 Amplifier 1 Violin 4 Tambourine 4 Lyre 4 Drum Set 2 Cymbals 4 Equipment Number Easel 10 Canvas 10 Sports Equipment To be determined later Library Collection: Book Titles X 3 Copies (Volumes) 60,000 Journals Annual Subscriptions 20 Video Collection (in Flash / MP56,000 Others (Paintings, Maps, etc) 100 D. Quality Assurance 1.

There shall be a Compliance Monitoring Unit within the SU’s Business Office to coordinate with the marketing conduit and private facilities providers and suppliers to make sure that government safety regulations are strictly, consistently complied with. 2. Organize a committee, to be chaired by the Head of Business Affairs, to rate suppliers of goods and providers of services (on a scale of ONE-STAR to FIVE-STAR) and recommend to the PBAC only the best ones. The Committee must establish the quality standards and rating criteria, and disseminate these to all interested suppliers and providers of goods and services. 3. All faculty shall polish their English proficiency and shall themselves pass international certification for English Proficiency. The SU shall purchase a standardized test to be used by students and faculty. 4.

Motivate faculty through more generous graduate scholarships and training. 5. Transform individualistic and competitive faculty culture into the transparent, collaborative and interdependent culture of excellence and team spirit (Introduce 6-Sigma to the faculty departments, starting with the English Department) 6. All SU faculty and staff shall be retrained on work ethics, personality development and servant leadership. 7. Sustain excellence through regular assessment and self- evaluation. Celebrate success of the community. 8. The HRDO shall initiate community building activities that will raise the morale of faculty and non-teaching personnel. 9.

Convince local government unit to pass ordinances setting higher standards of quality that will be followed by producers/ suppliers E. Human Resource Management 1. Strengthen recruitment capability of the Human Resources Development Office (HRDO) so that they can recruit faculty from a wide pool of applicants, using personal referral system, recruitment from the Internet job sites, and the usual media advertisement. 2. Increase the number of faculty, primarily the English Department, to be followed by other disciplines, and prepare for the increase of local enrolment and influx of foreign students 3. Ensure that there are sufficient quantity of faculty and staff, and then implement professional development programs to ensure quality. 4.

Ensure that the English department faculty are suitably prepared to train non-English speaking students (in conjunction with facilities improvement). 5. Implement a benefit package that will be enjoyed by all the SU personnel. 6. Sub-contract support services like construction, food production, lodging, laundry, food service, general services, and personal services to locals and generate employment and channel cash flow to the local economy 7. The SU shall train frontline workers prior to their being employed in the private establishments offering support services (dormitory, food service, etc. ) to ensure they are appropriately technically skilled, imbued with good manners and right conduct, work ethics, and possess self onfidence and customer service acumen. 8. The SU shall issue certification to trainees and training shall be paid for by the employers. F. Information, Communication and Telecommunication Technology 1. Establish campus wide broadband connection to connect all classrooms and offices to the Internet, and provide wireless internet access to students and personnel. 2. An in-campus payment gateway will be established so that all payment transactions of foreign students will be through their debit cards. 3. Every foreign student must own a laptop, a mobile phone and an official email account through which he/she can be informed of official announcements and policies.

For this purpose, students will execute a contract with the university that they are allowing the use of these personal accounts for university- related transactions, and that electronic transactions using these accounts will be deemed official notification. 4. Create systems to make students’ transactions with the university administration convenient and in real time, either through the internet, wise terminals or mobile phones. 5. Cyber- based knowledge management systems, social networks, and the like, will be used as support to classroom learning. Students will be expected to use these facilities to enhance community experience and be in touch with their families while they are here. 6.

The SU will subscribe to electronic journals and providers of books to keep learning materials current and accessible. PART V: FINANCIAL MANAGEMENT STRATEGY All infrastructure and equipment procurement will not involve expenditure from the university. The conduit and investor who offered to adopt the scheme will bear the cost of construction. Only the academic program will entail cost from the university which will be paid for from the students’ fees. For the purpose of this program, the following will be assumed: The SU will determine the increase of enrolment of local students through its admission policy. An intake of 2,000 new foreign students a year will be assumed, Government subsidy will continue at its current per capita level for local students.

The increase in salaries due to the salary standardization law will decrease the share and value of Maintenance and Other Operating Expenses; however, the additional revenue from the foreign students’ fees should compensate for it. Foreign students will be charged $2,500 for the ten-month EPP, and US$10,000. 00 for the 4- year program, inclusive of the application fee, foreign student fee, tuition and miscellaneous fees. The conduit marketing agent, having facilitated the market development of the program will be paid a 5% development fee from all collected fees. Thus netting for the SU, $2,375. 00 per student for the EPP and $9,500. 00 per student for the 4-year baccalaureate program.

Currently, the average per capita cost of SUCs runs to P37,000. 00 per year. However, this is expected to increase by around twenty percent by 2013. An estimates of per capita cost of EPP is placed at PhP 80,000. 00, which is more than double the current price. On the other hand, annual per capita cost of a baccalaureate degree will be estimated at PhP 50,000. 00. A static cost estimate is initially assumed for easier computation. An assured 2,000 students every year from 2013 is guaranteed by the conduit marketing agent, accumulating each year until the limit of 10,000 foreign student enrolment is reached by 2018 and continuing for the next 28 years up to 2040.

From the 2041 to 2043, the program phaseout will begin and only an increasing number of EPP students will be accepted, thus allowing the last batches of BSBA students to graduate. The cash flow for the program using the above assumptions is shown in Figure 1 below. It will be noted that twenty years from now, the accumulated net revenue from the program will have reached P8. 35 billion. If the profit from the program is invested wisely, this amount will enable the SU to earn P417. 56 million annually from investment at 5% interest rate. This is the point when it can be safely assumed that the SU will be capable of being self- sufficient. Figure 1. CASH FLOW FROM OPERATION OF ACADEMIC PROGRAM FOR FOREIGN STUDENTS |FINANCIAL ANALYSIS | | |YEAR |NEW ENROLMENT |CONTINUING |TOTAL REVENUE |TOTAL EXP | CUMULATIVE REVENUE | |  |  |STUDENTS |In PHP |In PHP |In PHP | |2010 |  |  |  |  |  | |2011 |  |  |  | 200,000,000. 0 |-PHP 200,000,000. 00 | |2012 |  |  |  |  |-PHP 200,000,000. 00 | |2013 | 2,000|  | 268,540,000. 00 | 841,987,743. 20 |-PHP 773,447,743. 20 | |2014 | 2,000| 2,000 | 476,311,250. 00 | 269,816,765. 60 |-PHP 566,953,258. 80 | |2015 | 2,000| 4,000 | 684,082,500. 00 | 352,946,139. 20 |-PHP 235,816,898. 0 | |2016 | 2,000| 6,000 | 891,853,750. 00 | 442,854,332. 80 |PHP 213,182,519. 20 | |2017 | 2,000| 8,000 | 1,099,625,000. 00 | 518,333,495. 20 |PHP 794,474,024. 00 | |2018 | 2,000| 8,000 | 1,099,625,000. 00 | 518,333,495. 20 |PHP 1,375,765,528. 80 | |2019 | 2,000| 8,000 | 1,099,625,000. 00 | 518,333,495. 20 |PHP 1,957,057,033. 60 | |2020 | 2,000| 8,000 | 1,099,625,000. 0 | 518,333,495. 20 |PHP 2,538,348,538. 40 | |2021 | 2,000| 8,000 | 1,099,625,000. 00 | 518,333,495. 20 |PHP 3,119,640,043. 20 | |2022 | 2,000| 8,000 | 1,099,625,000. 00 | 518,333,495. 20 |PHP 3,700,931,548. 00 | |2023 | 2,000| 8,000 | 1,099,625,000. 00 | 518,333,495. 20 |PHP 4,282,223,052. 80 | |2024 | 2,000| 8,000 | 1,099,625,000. 00 | 518,333,495. 0 |PHP 4,863,514,557. 60 | |2025 | 2,000| 8,000 | 1,099,625,000. 00 | 518,333,495. 20 |PHP 5,444,806,062. 40 | |2026 | 2,000| 8,000 | 1,099,625,000. 00 | 518,333,495. 20 |PHP 6,026,097,567. 20 | |2027 | 2,000| 8,000 | 1,099,625,000. 00 | 518,333,495. 20 |PHP 6,607,389,072. 00 | |2028 | 2,000| 8,000 | 1,099,625,000. 00 | 518,333,495. 20 |PHP 7,188,680,576. 0 | |2029 | 2,000| 8,000 | 1,099,625,000. 00 | 518,333,495. 20 |PHP 7,769,972,081. 60 | |2030 | 2,000| 8,000 | 1,099,625,000. 00 | 518,333,495. 20 |PHP 8,351,263,586. 40 | |2031 | 2,000| 8,000 | 1,099,625,000. 00 | 518,333,495. 20 |PHP 8,932,555,091. 20 | |2032 | 2,000| 8,000 | 1,099,625,000. 00 | 518,333,495. 20 |PHP 9,513,846,596. 00 | |2033 | 2,000| 8,000 | 1,099,625,000. 0 | 518,333,495. 20 |PHP 10,095,138,100. 80 | |2034 | 2,000| 8,000 | 1,099,625,000. 00 | 518,333,495. 20 |PHP 10,676,429,605. 60 | |2035 | 2,000| 8,000 | 1,099,625,000. 00 | 518,333,495. 20 |PHP 11,257,721,110. 40 | |2036 | 2,000| 8,000 | 1,099,625,000. 00 | 518,333,495. 20 |PHP 11,839,012,615. 20 | |2037 | 2,000| 8,000 | 1,099,625,000. 00 | 518,333,495. 20 PHP 12,420,304,120. 00 | |2038 | 2,000| 8,000 | 1,099,625,000. 00 | 518,333,495. 20 |PHP 13,001,595,624. 80 | |2039 | 2,000| 8,000 | 1,099,625,000. 00 | 518,333,495. 20 |PHP 13,582,887,129. 60 | |2040 | 2,000| 8,000 | 1,099,625,000. 00 | 518,333,495. 20 |PHP 14,164,178,634. 40 | |2041 | 4,000| 6,000 | 1,160,393,750. 00 | 432,854,332. 80 |PHP 14,891,718,051. 0 | |2042 | 6,000| 4,000 | 1,221,162,500. 00 | 342,946,139. 20 |PHP 15,769,934,412. 40 | |2042 | 8,000| 2,000 | 1,281,931,250. 00 | 259,816,765. 60 |PHP 16,792,048,896. 80 | Note that at the end of the contract period, which is 2043, the accumulated net revenue will have reached PhP 16. 7 billion, and if invested at 5% interest per annum, will earn for the SU PhP 839. 60 million annually. What is the assurance that the assumptions will hold? The returning students from abroad in China alone has exceeded more than 260,000 individuals in 2008. There are more than 2. million rich Chinese families who are all geared up to send their children to study English and obtain a college degree abroad. 10,000 students a year for ten universities is just a drop in the bucket. The demand for educational services is assured. The supply only needs to be prepared. How about the assumption of the cost? The figures provided are even way higher than the projections. Marginal cost per student declines as the number of enrolment increases. Granted that a more precise computation would have made the cash flow more realistic, it is safe to assume that estimate of the net revenue will no longer decline. PART VI: COST MANAGEMENT STRATEGIES The expenses of implementing the academic program of an SU consists of asically Personal Services (salaries, wages and benefits of administration, faculty and staff), Maintenance and Operating Expenses, and Capital Outlay consisting of equipment, buildings and land improvements. The assumptions in managing costs of this program are the following: 1. Government budgeting, accounting, and auditing rules set the parameters for allowable expenses of government organizations. 2. Salaries of government personnel will be according to the Third Salary Standardization Law (SSL3) that will be fully implemented by 2012, and thereafter will increase by 10% every three years, as mandated by law. 3. Inflation rates will apply to cost of construction, commodities, and others. 4.

Only the academic activities of the program will be shouldered by the SU; however, the university BOR shall review and confirm the costing plan of the facilities that will be built by the private investors. The following are the cost strategies for this program: 1. Utilize locally available materials and services whenever possible. This will not only eliminate cost of transportation and freight, but also lower cost of wages and salaries. 2. When goods and services are not locally available, use the government procurement system, but this must be done with efficiency. Establish a computer-based system of canvassing, soliciting bids, pre-qualifying and ordering. 3.

In pre-qualifying suppliers, make a background check with their other customers if they are reliable and if the products are of good quality. This will cut cost on re-processing and replacing suppliers when goods are not acceptable. 4. Always order academic requirements in bulk to negotiate for discounted prices. 5. Assign a quality assurance officer, an engineer who can validate the technical specifications claimed by suppliers. 6. Maintain good business relationships with suppliers that have a long- standing relationship with the SU, provided they are honest and have proven to serve the best interest of the institution. The estimated cost for the academic program and related activities are indicated in Figure 2. |Figure 2. | | | |ANNUAL COST FOR THE PROGRAM | | |Year |Personal Services |Capital Outlay |Maintenance & |Total Cost | | | | |Other Operating | | | | | |Expenses | | |2011 |  | 200,000,000. 0 |  | 200,000,000. 00 | |2012 |  |  |  |  | |2013 | 116,987,743. 20 | 670,000,000. 00 | 55,000,000. 00 | 841,987,743. 20 | |2014 | 144,816,765. 60 | 15,000,000. 00 | 110,000,000. 00 | 269,816,765. 60 | |2015 | 172,946,139. 20 | 15,000,000. 00 | 165,000,000. 00 | 352,946,139. 20 | |2016 | 207,854,332. 80 | 15,000,000. 0 | 220,000,000. 00 | 442,854,332. 80 | |2017 | 228,333,495. 20 | 15,000,000. 00 | 275,000,000. 00 | 518,333,495. 20 | |2018 | 228,333,495. 20 | 15,000,000. 00 | 275,000,000. 00 | 518,333,495. 20 | |2019 | 228,333,495. 20 | 15,000,000. 00 | 275,000,000. 00 | 518,333,495. 20 | |2020 | 228,333,495. 20 | 15,000,000. 00 | 275,000,000. 00 | 518,333,495. 20 | |2021 | 228,333,495. 0 | 15,000,000. 00 | 275,000,000. 00 | 518,333,495. 20 | |2022 | 228,333,495. 20 | 15,000,000. 00 | 275,000,000. 00 | 518,333,495. 20 | |2023 | 228,333,495. 20 | 15,000,000. 00 | 275,000,000. 00 | 518,333,495. 20 | |2024 | 228,333,495. 20 | 15,000,000. 00 | 275,000,000. 00 | 518,333,495. 20 | |2025 | 228,333,495. 20 | 15,000,000. 00 | 275,000,000. 00 | 518,333,495. 0 | |2026 | 228,333,495. 20 | 15,000,000. 00 | 275,000,000. 00 | 518,333,495. 20 | |2027 | 228,333,495. 20 | 15,000,000. 00 | 275,000,000. 00 | 518,333,495. 20 | |2028 | 228,333,495. 20 | 15,000,000. 00 | 275,000,000. 00 | 518,333,495. 20 | |2029 | 228,333,495. 20 | 15,000,000. 00 | 275,000,000. 00 | 518,333,495. 20 | |2030 | 228,333,495. 20 | 15,000,000. 00 | 275,000,000. 0 | 518,333,495. 20 | |2031 | 228,333,495. 20 | 15,000,000. 00 | 275,000,000. 00 | 518,333,495. 20 | |2032 | 228,333,495. 20 | 15,000,000. 00 | 275,000,000. 00 | 518,333,495. 20 | |2033 | 228,333,495. 20 | 15,000,000. 00 | 275,000,000. 00 | 518,333,495. 20 | |2034 | 228,333,495. 20 | 15,000,000. 00 | 275,000,000. 00 | 518,333,495. 20 | |2035 | 228,333,495. 20 | 15,000,000. 0 | 275,000,000. 00 | 518,333,495. 20 | |2036 | 228,333,495. 20 | 15,000,000. 00 | 275,000,000. 00 | 518,333,495. 20 | |2037 | 228,333,495. 20 | 15,000,000. 00 | 275,000,000. 00 | 518,333,495. 20 | |2038 | 228,333,495. 20 | 15,000,000. 00 | 275,000,000. 00 | 518,333,495. 20 | |2039 | 228,333,495. 20 | 15,000,000. 00 | 275,000,000. 00 | 518,333,495. 20 | |2040 | 228,333,495. 0 | 15,000,000. 00 | 275,000,000. 00 | 518,333,495. 20 | |2041 | 207,854,332. 80 | 5,000,000. 00 | 220,000,000. 00 | 432,854,332. 80 | |2042 | 172,946,139. 20 | 5,000,000. 00 | 165,000,000. 00 | 342,946,139. 20 | |2043 | 144,816,765. 60 | 5,000,000. 00 | 110,000,000. 00 | 259,816,765. 60 | | |ANNUAL COST PER COMPONENT | | |A.

ENGLISH PROFICIENCY PROGRAM | | | |Year |Personal Services |Capital Outlay |Maintenance & |Total Cost | | | | |Other Operating | | | | | |Expenses | | |2011 |  |  |  |  | |2012 |  |  |  |  | |2013 | 116,987,743. 20 | 65,000,000. 00 | 55,000,000. 00 | 236,987,743. 20 | |2014 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2015 | 116,987,743. 20 | 5,000,000. 0 | 55,000,000. 00 | 176,987,743. 20 | |2016 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2017 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2018 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2019 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2020 | 116,987,743. 0 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2021 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2022 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2023 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2024 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 0 | |2025 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2026 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2027 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2028 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2029 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 0 | 176,987,743. 20 | |2030 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2031 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2032 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2033 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2034 | 116,987,743. 20 | 5,000,000. 0 | 55,000,000. 00 | 176,987,743. 20 | |2035 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2036 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2037 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2038 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2039 | 116,987,743. 0 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2040 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2041 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2042 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |2043 | 116,987,743. 20 | 5,000,000. 00 | 55,000,000. 00 | 176,987,743. 20 | |B.

BACHELOR OF SCIENCE PROGRAM | | | |Year |Personal Services |Capital Outlay |Maintenance & |Total Cost | | | | |Other Operating | | | | | |Expenses | | |2011 |  | 200,000,000. 00 |  | 200,000,000. 00 | |2012 |  |  |  |  | |2013 |  | 605,000,000. 00 |  | 605,000,000. 00 | |2014 | 27,829,022. 40 | 10,000,000. 00 | 55,000,000. 0 | 92,829,022. 40 | |2015 | 55,958,396. 00 | 10,000,000. 00 | 110,000,000. 00 | 175,958,396. 00 | |2016 | 90,866,589. 60 | 10,000,000. 00 | 165,000,000. 00 | 265,866,589. 60 | |2017 | 111,345,752. 00 | 10,000,000. 00 | 220,000,000. 00 | 341,345,752. 00 | |2018 | 111,345,752. 00 | 10,000,000. 00 | 220,000,000. 00 | 341,345,752. 00 | |2019 | 111,345,752. 00 | 10,000,000. 0 | 220,000,000. 00 | 341,345,752. 00 | |2020 | 111,345,752. 00 | 10,000,000. 00 | 220,000,000. 00 | 341,345,752. 00 | |2021 | 111,345,752. 00 | 10,000,000. 00 | 220,000,000. 00 | 341,345,752. 00 | |2022 | 111,345,752. 00 | 10,000,000. 00 | 220,000,000. 00 | 341,345,752. 00 | |2023 | 111,345,752. 00 | 10,000,000. 00 | 220,000,000. 00 | 341,345,752. 00 | |2024 | 111,345,752. 0 | 10,000,000. 00 | 220,000,000. 00 | 341,345,752. 00 | |2025 | 111,345,752. 00 | 10,000,000. 00 | 220,000,000. 00 | 341,345,752. 00 | |2026 | 111,345,752. 00 | 10,000,000. 00 | 220,000,000. 00 | 341,345,752. 00 | |2027 | 111,345,752. 00 | 10,000,000. 00 | 220,000,000. 00 | 341,345,752. 00 | |2028 | 111,345,752. 00 | 10,000,000. 00 | 220,000,000. 00 | 341,345,752. 0 | |2029 | 111,345,752. 00 | 10,000,000. 00 | 220,000,000. 00 | 341,345,752. 00 | |2030 | 111,345,752. 00 | 10,000,000. 00 | 220,000,000. 00 | 341,345,752. 00 | |2031 | 111,345,752. 00 | 10,000,000. 00 | 220,000,000. 00 | 341,345,752. 00 | |2032 | 111,345,752. 00 | 10,000,000. 00 | 220,000,000. 00 | 341,345,752. 00 | |2033 | 111,345,752. 00 | 10,000,000. 00 | 220,000,000. 0 | 341,345,752. 00 | |2034 | 111,345,752. 00 | 10,000,000. 00 | 220,000,000. 00 | 341,345,752. 00 | |2035 | 111,345,752. 00 | 10,000,000. 00 | 220,000,000. 00 | 341,345,752. 00 | |2036 | 111,345,752. 00 | 10,000,000. 00 | 220,000,000. 00 | 341,345,752. 00 | |2037 | 111,345,752. 00 | 10,000,000. 00 | 220,000,000. 00 | 341,345,752. 00 | |2038 | 111,345,752. 00 | 10,000,000. 0 | 220,000,000. 00 | 341,345,752. 00 | |2039 | 111,345,752. 00 | 10,000,000. 00 | 220,000,000. 00 | 341,345,752. 00 | |2040 | 111,345,752. 00 | 10,000,000. 00 | 220,000,000. 00 | 341,345,752. 00 | |2041 | 90,866,589. 60 | – | 165,000,000. 00 | 255,866,589. 60 | |2042 | 55,958,396. 00 | – | 110,000,000. 00 | 165,958,396. 00 | |2043 | 27,829,022. 0 | – | 55,000,000. 00 | 82,829,022. 40 | PART VII. RISK MANAGEMENT STRATEGY The program risks that are identified shall be classified into personal, socio- political and environmental, product- related, institutional service- related, and financial. Personal risks are threats which involve persons’ ability to fulfill the objectives of the program. To eliminate, prevent, limit the damage and avoid personal risks, the following strategies will be implemented: 1. Require personal accident, medical and life insurance for foreign students. 2. Health and accident insurance shall be part of employee benefits. 3.

Prior to departure from their home country, the health and academic records of foreign students shall already be received by the SU. 4. Foreign students shall undergo pre-departure orientation on Philippine society and culture. 5. Upon arrival, the foreign students shall be under the care of coordinators who speak Mandarin, and who are responsible for their transition, facilitate their needs, and check their requirements. 6. The foreign students shall be housed in one dormitory or housing facility which shall be regularly inspected by the university office of student affairs and services. 7. Create a buddy system among the students and organize them for easier monitoring. 8.

Personalize materials and equipment that come in contact with their bodies such as laptops, headphones, books, eating utensils, etc. 9. Limit cash transactions of students and use debit cards for their purchases inside the campus to avoid loss of cash. Environmental risks are those risks that affect the conditions under which the program is being implemented. These may be the social environment, the political environment, or physical environment. Strategies to manage environmental risks are: 1. Orient the students about possible environmental risks and teach them how to avoid these. 2. Use fire safety equipment in the classroom buildings, cafeteria and dormitories. 3.

Maintain sanitation and strictly require observance of hygiene among students. 4. Ensure safety of building construction by employing an engineer to check quality of materials and engineering work. 5. Let the local authorities be aware that there are foreign students in the community so that they can be watched and protected when going out of the campus. 6. Allow the students to be integrated into the community to bond with the students and their families so that they have a wholesome social environment. 7. Make sure that dormitories are secured and have the required safety features such as fire exits, etc. 8. Train the students in first aid and disaster preparedness. 9.

Constantly gather feedback from the community about the program and educate the people about how we can all gain from it. Product and commodities – related risks are those that involve the availability and quantity of goods and commodities required by the program. These are some of the strategies for managing products- related risks: 1. The supply office shall monitor availability of materials and inventory, making sure that order processing and delivery time are accounted for when timing orders. 2. Set up a Risk Management Office to monitor product standards and ensuring that these are complied with by the suppliers. 3. With regard to suppliers of uniforms, food and beverages, make sure the concessionaires are pre-qualified and have proven track record.

Ensure also that their source of raw materials have complied with the safety and quality standards. 4. Strictly follow the procedure for pre-qualification and selection of providers of goods. Never compromise with the procedures and assign reliable and honest personnel to do the inspection and receiving of goods. Institutional service risks are risks of program failure due to inability of the institution to provide the service required by the clientele. These risks will be managed through: 1. A total approach towards forging a community – administration, faculty, staff and students will be involved in planning and strategizing how the program shall succeed. . There shall be a campaign towards excellent service orientation among the faculty and staff. Discourtesy, anger, rude behavior and other negative attitudes shall be eliminated through life process skills workshops and the like. 3. Conduct regular consultative meetings and airing of concerns. 4. Ensure that there are enough support personnel such as nurses, counselors, and security guards. 5. Maximize the foreign student coordinators to efficiently manage the students’ demands and needs. 6. Use a well planned block schedule to accommodate all students in classes. 7. Manage the facilities well, such as classrooms, library, laboratories, etc. o that there shall be no shortages. Risk management office shall monitor washrooms and repair problems within 24 hours. 8. Monitor the reliability of the supply chain for goods that are mission critical to the operations. 9. Hire legal counsels to check compliance with laws, policies and regulations. Financial risks are the risks involved with the availability of financial resources to sustain the program. The management of financial risks shall rest on the finance office of the SU. Some of the strategies to manage financial risks are: 1. Prioritize for funding critical activities that directly contribute to the achievement of objectives. 2.

Plan the budget with realistic assumptions on costs and inflation. 3. Set up a sinking fund for contingency in anticipation of inflation and other similar events. 4. Institutionalize financial monitoring and audit of operations. 5. Establish a system of accountability among the staff on the utilization of supplies and materials. 6. Always inform the governing board of the program’s financial position and to avoid occasions to misuse resources. PART VIII. LEGAL MANAGEMENT STRATEGY 1. All policies and projects of this program will be in accordance with the pertinent provisions of Republic Act 8292, the Higher Education Modernization Act of 1997, and the charter of the state university. 2.

The University Board of Regents, the highest policy- making body of the SU, will approve the program plan, the program of receipts and expenditures of the program, all memoranda of agreement, and the infrastructure construction plans under this program. 3. The SU shall employ the services of legal counsels who will assist in building a legal framework for the program and render legal advice on all contracts, to avoid liabilities that may arise from transaction related to its implementation. 4. The SU shall consult the local government councils and ensure that all local government regulations are complied with by the private sector partners (conduit for marketing and investors). PART IX.

ETHICAL AND SOCIAL RESPONSIBILITY MANAGEMENT STRATEGY The state university is the most important social capital in the city or province where it is located. In fact, the mandate of a public higher education institution is not primarily to earn profit from its operations, but to serve the human resource and development needs of the local economy. Thus, in addition to the ambitious goal of transforming the university into an international educational tourism destination, the academic community shall continue to fulfill its functions of research and extension as part of its mandate. The program itself shall support and allocate resource for these activities.

One of the activities to be pursued shall be the elevation of the standards of the laboratory school, to qualify it as an International Baccalaureate school. This means, adding a 5th and 6th year in high school and offering an IB curriculum. The graduates of the IB program shall sit for the Scholastic Achievement Test (SAT) which will qualify the passers for admission in any university abroad. Another project is the 10% scholars to be funded by the investors of this program. For every 10 foreign students brought in by the investors, one Filipino student will be sponsored with full tuition and school fees, uniforms, books and a reasonable living allowance. The students will be selected based on merit and equity. This program will serve to catalyze economic activity in the city and province.

Opportunities for gainful economic involvement by people’s organizations, cooperatives, and even individual entrepreneurs will be sure to accelerate. Apart from this, the opening up of support services such as dormitories, hotels, food services, will generate employment. Students of the Hospitality Management and Tourism institutes will be able to get wages while performing on-the-job training in these establishments. The presence of foreign students shall be an opportunity for Filipinos to showcase our national heritage, culture and art. Through events and performances which the foreign students will surely be enticed to see, taste and experience, our local artisans, artists and performers will be seen and appreciated.

The school management shall ensure that this opportunity to launch the university, the city and the province as a student tourist destination will benefit the most number of people and give back to the community much more than simply financial gains. This program shall make sure that we enhance self respect, pride and power as a people. Appendix A ANALYSIS OF THE ORGANIZATION, INTERNAL AND EXTERNAL ENVIRONMENT Strengths 1. There are 110 established Philippine state universiti

×

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out