The dilemma of private universities: the rules of the game in the system business model

Source: Internet
Author: User
Keywords Business model game rules
The business model of Xi ' an Eurasian college is constantly innovating, but it is difficult to have the powerful power of "latent rules" in the game system. It is one step closer to the institution's institutions, and the business model is refreshed. One day it suddenly found that the rules of the game in the system have been completely above the business model of the Enterprise "Mr. Hu, do you think you are now in accordance with the mode of doing business to run a university, appropriate?" "Is the question important?" I tell you, said Paul Krugman, the Nobel laureate in economics, that the best of the more than 3,000 universities in the United States is neither the rare Ivy League schools nor the local government-backed state universities, but the forty or fifty for-profit universities that have been listed. Why? Because they are efficient. "This is a dialogue that took place at the school of Education at Peking University, a young teacher in the Academy, and the answer was Jianbo, chairman and Dean of the XI ' an Eurasian College (hereinafter referred to as Eurasia). At this time Jianbo not a bit nervous, although he came from the Chinese university system in the most remote areas, although this is the best university in China in the classroom, he explained his speech in this way: "I heard that Beijing University has a civilians intelligent students, often invite some not inflow entrepreneurs, celebrities to come here to lecture, A business model has also been invented, which is to be paid by the invitees who are responsible for arranging venues and listeners. What I want to explain is that today my lecture is free, without a penny! "For the teachers and students who have been studying the Chinese education industry all day long, Jianbo is still qualified to strongly."  He is one of the founders of Xi ' An and even China's largest private university, Xi ' an Foreign affairs college, and then ran away and founded today's Eurasia, which is also currently one of the seven private colleges with national qualifications, with more than 20,000 students earning more than 200 million yuan a day. "To be honest, these days of the XI ' an private university are not easy, in Europe and Asia, for example, we were born a ' wild boar ', and then amnesty into the ' zoo ', but the garden is not fun, I have been thinking how to go out.  "Jianbo in the interview with the entrepreneur," Chen said.  Why XI ' an?  Most private universities in XI ' an have common backgrounds: from grass roots and savage growth. Jianbo is a typical example. After graduating from the university in the 80 's, was assigned to the then XI ' an College of Arts and Sciences as a teacher, spare time to Xi ' an translation institute of the predecessor of Xi ' an translation training institute to do part-time teacher, summer help recruit students. "At that time this kind of school is very few, is pure training, after each enrollment I dare not go to the streets," Jianbo recalls, "is afraid that some students recognize that I am a liar." "But the market does exist, especially in Shaanxi. "There are several reasons: first, compared with the eastern coastal region, Shaanxi belongs to the economically underdeveloped western region, the region has a lot of counties below the outskirts of the youth have a university dream, this group is the basic characteristics of our target customers." At present, nearly 90% of our students are from small places in different provinces. Second, although Xi ' an Pianan the western region,But the number of colleges and universities in the country in the forefront of the major cities, which means that teachers are rich in resources, which is our upstream advantage. Thirdly, some Shaanxi cities represented by Baoji, in fact, it belongs to the immigrant city, where there are many heavy industry enterprises, workers are mostly in the 670 's because of support for national construction from all over the country, their children want to go out of a small place, but the opportunity to further education than the big cities, this is our main market for entrepreneurship.  "Jianbo said. In the Translation Training Institute of Part-time let Jianbo taste the industry's sweetness. In the early 90, along with the opening of the Chinese economy, he and another friend co-founded the thunderclap of Xi ' an Foreign affairs college in the future. 1995, for a variety of reasons, Jianbo from the Foreign Affairs college, founded Europe and Asia. "I have an absolute holding power over Eurasia.  "Jianbo said. Starting a school is not as simple as opening a grocery store. "We and the general training institutions are not the same, they casually find a few bungalows, they will point English, in the Telegraph pole on a few small ads on the line, the private colleges need is the birthright, classrooms, teachers, enrollment, all links indispensable." "Jianbo said. At the beginning of the venture, the name of the school is through a linked to a school under the borrowed, teachers are recruited from the universities in Xian, the classroom is the chicken coop rebuilt, "at that time to the provincial enrollment, but also need the local government's permission."  Later, friends and Jianbo joked that Eurasia's school name is borrowed, the classroom is rented, the teacher is hired, students are deceived. When Eurasia had only hundreds of students, a director of the Ministry of Education visited and asked Jianbo what the plan was. ' My goal is to reach 10,000 people within three years, ' Jianbo said at the time. At that time, the director gave me a white look, he must think I was crazy.  "Jianbo said. Even with today's eyes, the Jianbo are really crazy. In the middle of the 90 's China, Angel Investment, venture capital is a very remote term, and private colleges and training institutions are another difference is the heavy assets. Upfront capital investment is high, much like traditional manufacturing, to expand the size of students, it is necessary to expand the size of the school, this is the industry's largest threshold.  But where does the money come from? An era has an era of rules of the game. You can look at the practices of the Eurasian peers. Xi ' an University in XI ' an has adopted a "self-financing + large-scale loan" step construction program. In 1998, when a school campus started construction, the account of only 200,000 Yuan deposit, West Beijing through the collection of tuition fees to the bank to mortgage the bold way, a loan of 50 million yuan. Xi ' an Foreign Affairs Institute uses "proceeds to change property rights" The Bold method, the school does not invest a penny in the case, completely relies on the external force to build the canteen, only temporarily the canteen façade rents the income to belong to the construction party all.  A year or two later, when the school was flush with money, the canteen was "bought" back. "In the hardware to dare to invest in XI ' an private university has always been the forefront of a major reason, this input is a significant impact of scale efficiencyShould。  "Jianbo said. Into the zoo, instead of eating 2000 years ago, the main source of Chinese private university students is a large number of college entrance examination, because at that time the proportion of college enrollment is very low, large and college added to a piece of about 30%, so the rest of the majority of students to enter the job market, or to the form of high self-  Xi ' an early became a haven for the students. The survival logic of private universities in this period is very simple: the country set up offices, enrollment, provide self-study courses, and then do large-scale, and then recruit more students. From the founding of the 1995 hundreds of people, to 1999 of 6000 people, the size of Europe and Asia has been expanding. Jianbo Friend, Qiqihar Vocational college Dean Cao Ann is "bombing-type propaganda, carpet-type enrollment, herding management, blind-style employment."  There was an American delegation in XI ' an to experience the recruitment of two university students to fight for candidates and the scene, and the foreigner exclaimed "China's private University of the western blockbuster"! "There are more and more students, which requires us to expand our school buildings every year to meet the needs of the market." "It is the opportunity-oriented, resource-based development phase of China's private economy, and it will never go back," Jianbo said. "There are business models to go back." These early models of Xi ' an private university are very simple, which is to organize the students who are scattered in the society and to climb the peak of the Diploma in the form of the school. "New Oriental Venture (9.70,0.00,0.00%) veteran Xiaoping to" entrepreneur "said," but this model belongs to the last century 90 's, already is nothing new. "Because 1999 is a turning point. This year, the Central Education Working Conference decided that from this year the university began to expand enrollment, an increase of 30%, while encouraging various forms of private schools. "The rules of the game have changed, first of all, a large part of our students (clients) will be transferred to the formal institutions." Secondly, Shaanxi Province has become the first province in the country to authorize private colleges, that is to say, these private colleges in Xian have the opportunity to be ' positive '.  "Jianbo said. Europe and Asia became one of the first four national colleges recognized in XI ' an. In 1999, there were about 6000 students from Europe and Asia, earning 20 million yuan annually. In 2000, the two figures turned out to be 10,000 people and 50 million incomes respectively. "The biggest benefit of this gold signboard is not how many planned candidates we can attract, but through it, we recruit more self-taught students because of this birthright," Jianbo said, "with more than 1000 people in the program, more than 4,000 in 2000." "This has brought about a change in the business model of private colleges: in the name of the plan, outside the plan."  The reason for this is also very simple, there are quota restrictions, and the planned enrolment is only related to the size of the school. With the growing size of students, Eurasia is also constantly buying land to build campus. This trend lasted until 2005. This year the nationalThird, the introduction of policies to suspend higher vocational colleges and universities, but excluding private colleges. This means that private colleges and universities are ushered in a second opportunity to name a rectification: The upgrade from a tertiary college. "At the time I thought it was a once-in-a-lifetime opportunity, because I always had a dream to make it into a century-old school and a famous world school," he said. "Jianbo said," Although this is a bit empty, but for each private university founder, the Heart does have a little ideal, so the promotion of the undergraduate for Eurasia is tantamount to the jinbangtiming. "Eurasia has once again become one of the first four private-owned undergraduate institutions in XI ' an, with the words of Jianbo, that is," wild boar "was amnesty into the" zoo "and began to live with Peking University, Tsinghua these" panda class "institutions.  Since you come to someone else's site, you have to adapt to the rules of the game, including software and hardware. Hardware is an undergraduate university must have a modern library, modern canteens, modern laboratories, modern stadiums and the corresponding various modern scientific research equipment. "In the past, Eurasia is not stingy with hardware input, but pay attention to practical, basic is teaching building and dormitory, which like now the whole is so fancy." Jianbo admits. Software is even more important, all public universities have compulsory courses, private universities must be set up, previously possible on the one or two departments of the establishment, and now started in batches to be expanded into a courtyard. This leads directly to a consequence: a massive expansion of the teaching staff. Moreover, these hardware and software construction is not the same as before, complete their own decisions. "Whether you build a building or a department, you have to wait for it to be assessed, and I spend 80% of my time coping with all sorts of evaluations."  Jianbo reluctantly said. In 2000, Europe and Asia a professional can reach 400, 2005 peak can even reach 1500 people, "but now 8 professional only 500 people," Jianbo said, "Formerly 1 teachers put 30 sheep, now 30 teachers put 1 sheep." "All this can be summed up to two words: cost. Although also called the University, but the private university and the public university's one biggest difference is, self-financing, does not have the national financial appropriation. Jianbo once taught a student in Eurasia, who asked the students, "Do you say that the interests of Eurasia coincide with yours?" Under a unanimous cry: "Consistent!" Jianbo asked, "Do you want to have as little tuition as possible?"  But I hope that the more the more the better, the best is that you pay tuition without a class directly to practice! "It is a very simple truth that private universities, despite the hat of non-profit organizations, can not afford to let the hundreds of teachers go to the northwest." "Jianbo said. Eurasia is the pig strong, before the ordeal has not died, did not expect to enter the zoo but fast eat, "in this face we can not fight public university!" "[Page] reposition, give up the diploma direction of course, private colleges and universities to enter the" zoo "is not a point of benefit, at least in the country after years of expansion of the big background, but also to ensure a relatively stableStudents. "Read more and less, because now 300 points can be a big Ben," said one industry personage, "but, if not into the ' zoo ' means the death penalty, that entered after the threat of a reprieve." "In Xiaoping's view, if the private colleges want to develop, they must give up the idea of running a diploma-oriented school, and should adopt a simple strategy of employment-oriented." "If they can cultivate the application-oriented, skilled middle-end employment as their own policy, they will be able to get out of a life; "Jianbo also noticed the problem, and the pressure came not just from the competition in public colleges. "The 2007-year college entrance examination in Shanghai seems to be 170,000, it has fallen to 80,000 last year, and the number of Shaanxi college entrance exams has dropped from 410,000 people a few years ago to 270,000 last year," Jianbo said, "which means that the potential market is shrinking first." "Over the years, Jianbo invited countless experts and scholars to the European and Asian Pulse, light consulting company before and after there are four or five, is to give Eurasia a clear positioning." After repeated research and deliberation, we finally abandoned the strategy of the school development as the basis of student development. "We're looking for flexibility as much as we can in a big environment, and everything is for the sake of the students because they are our clients," Jianbo said. "But Jianbo does not exclude diplomas, and thinks that this will still be a sign for private colleges, but practical talent is also necessary." Last year, Jianji to see the graduation design of journalism department, unexpectedly found a paper called "A Dream of Red mansions". "Isn't that nonsense?" This article if put in Peking University also is understandable, but Eurasia does not need so spring thing!  Now think of this, Jianbo or full fire. Now, many of Eurasia's faculty of Journalism are well-known editors from the frontline, and their courses are also interesting, such as the analysis of "girlfriend", "bosom friend" in the two or three-line city of the most popular magazine. "We have two students, after more than half a year of market research, editing design, made a book called" Tea "magazine, holding this graduation work, soon in Beijing, a well-known magazine found a job.  Jianbo said proudly. "Private colleges have both ends: one end is the student, one end is the employment, only the students to have a certain employment skills, you can calculate the production of qualified products." "Xiaoping said.
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