Contents

1.Introduction ............................................................................................. 3
2.History of sector ...................................................................................... 4
3.Brief introduction about the company .........................................................5
3.1.History ............................................................................................... 5
3.2.Current vision, mission, goals and strategies6
3.4.Key financial ratios..................................................................................... 7
4.External Environment Scanning 8
4.1.General Environment (PEST)8
4.2.Porter model ........................................................................................ 9
4.3. Strategic Group........................................................................................ 11
4.4.EFAS ..................................................................................................... 14
5.Internal environmental scanning 15
5.1.Resources and capabilities15
5.2.Structure ............................................................................................ 15
5.3.Strategic cultural...................................................................................... 17
5.4.Distinctive competencies ......................................................................17
5.5.IFAS ..................................................................................................... 19
6. Strategy Formulation ............................................................................ 20
6.1.SFAS ..................................................................................................... 20
6.2.TOWS ................................................................................................. 21
6.3.Corporate strategy , directional strategy and portfolio analysis...............................23
6.4.Business strategy...................................................................................... 24
6.5. Functional strategy.................................................................................. 24
7.Strategy implementation .........................................................................24
7.1. Matching structure with strategy................................................................25
7.2.Implement functional strategy.....................................................................25
8. Strategy Evaluation and control balance score card ..................................... 26
Conclusion.................................................................................................... 28
References.................................................................................................... 29

1
1. Introduction

2
The business strategy is one of the fields of study that has aroused greater interest,
both in the academic world and in the business world.

According to David (2009)1 defined strategic management as the art and science of
formulating, implementing and evaluating cross-functional decisions that enable an
organization to achieve its objectives.

Rothaermel (2012)2defined Strategic management as a continuous process of strategic

analysis, strategy creation, implementation and monitoring, used by organizations
with the purpose to achieve and maintain a competitive advantage.

Rothaermel pointed out the importance of strategic planning (1) Requirement for
sustained competitive advantage;(2) Views things from broader perspective; and
(3)Facilitates collaboration. Thus, strategic planning is used to achieve the
competitive advantage and to integrate all the functional areas of the company by
facilitating the communication between the managers of all levels.

Although strategic management brings many benefits to the company it also has its
limitations. (1) The costs of engaging in it are huge;(2) The process is complex; and
(3) Success is not guaranteed.

Above are the reasons why small and medium enterprises are usually reluctant to have
their own strategic departments.

The world is undergoing rapid and constant change, both in terms of production
technology and management organizations. This new reality promotes competition for
markets and creates a sharper competition between the various organizations. These
events have an impact in defining the strategies of companies, which need to be
prepared for this new situation and to respond rapidly to the increasingly demanding
market.

In this scenario, organizations are seeking a new approach by reformulating strategies,

essential reason for staying in the market. Thus, it is necessary that managers have at

1
David, F.R. (2009). Strat.Mgmt.: Concepts and Cases. 12th ed
2
Rothaermel, F. T. (2012). Strat.Mgmt.: Concepts and Cases.

3
their disposal relevant and timely information, relevant to business costs, so that these
subsidies to configure to optimize business performance. This information is provided
by Accounting, which provides reports that assist in cost management, with emphasis
on the development and definition of competitive strategies that will serve the control
and decision making of managers ( Porter , 1999).

Porter (1999)3 makes clear that the essence of strategy formulation is to face the
competition. However, it is easy to view the latter closely and excessive pessimism.
The company's relationship to its environment has been considered the essence of the
formulation of a competitive strategy. The company's structure has a strong influence
in determining the competitive rules, as well as the strategies potentially available to
the company.

Given the above, it is observed that, depending on the approach, the focus of the
strategy is different. The discussion of strategy formulation in organizations gain
importance as proposed changes are analyzed by the world scene, which impact the
performance of organizations and therefore require reformulation of developed plans.
This theme has achieved prominence in the context of organizational change, hoping
to make companies more competitive and, therefore, remain on the market. Grounded
in business strategy formulation is strategic cost management ( Porter , 1999).

2. History of sector
A. Key Milestone

Saudi Arabia universities have recognized the importance of Strategic Planning and
Management and has made milestone achievements in this regard, including the
development of the universities 2030 Strategic Plan, which has resulted in newly
established implementation entities such as the University Advisory Council, Project
Management Office as well as new streamlined university organization structure. In
addition, Ministry of higher education completed an ambitious project to develop
procedure manuals for all academic units, which would enhance and streamline
various administrative processes at the University. Ministry of higher education has
also established the new administrative system Madar, which has to a great extent
facilitated information exchange within the Universities and automated performance
statistics and report generation services.

3
Porter (1999) essential competitive strategies. Rio de Janeiro: Campus.

4
Furthermore, many universities in Saudi Arabia have actively encouraged all units
within its campus to obtain the ISO 9001 as a quality assurance measure.

Saudi universities have initiated several strategic infrastructure programs, with large
investments, in order to position itself as a leading regional and international
institution and to better deal with the associated challenges and competitions.

Quality Management has also been placed top on the agenda of ministry of higher
education , which reflects its continual strive for excellence. In this respect, several
far-reaching accomplishments have been realized, including:

(1) the development of the Quality Governance Structure

(2) the development of the Quality Model for

(3) the implementation of the KSUQMS,

(4) the development of the Management Information System (MIS), and

(6) the launch of the Data Warehouse Project.

B. Number and nature of Competitors: There are 9 private universities as compared to

30 public sector universities in kingdom (MOE Of kingdom 2016/2017).The private
universities are demonstrating a fierce competition by employing best and highly
qualified(foreign, local) faculty, offer market oriented courses and providing most
advanced facilities to their students. On the other hand public sector universities are
seriously short of these essentials.

In Egypt 29 public universities and 43 private universities ( MOE of EGYPT

2016/2017)

3. Brief introduction about the company

3.1. History

is a private research university located in Thuwal, Saudi Arabia. It was founded in

2009 and provides research and graduate training programs using English as the
official language of instruction. It was announced in 2013 that KAUST had one of the
fastest growing research and citation records in the world and in the 2016 Nature
Index Rising Stars was ranked #19 in the world of the fastest rising universities for
high quality research output. KAUST was ranked as the world's top university in

5
citations per faculty ranking indicator as per QS World University Rankings for 2015-
2016 and 2016-2017.4

KAUST aspires to be a destination for scientific and technological education and

research. By inspiring discoveries to address global challenges, and strives to serve as
a beacon of knowledge that bridges people and cultures for the betterment of
humanity.

KAUST advances science and technology through distinctive and collaborative

research integrated with graduate education. To be a catalyst for innovation, economic
development and social prosperity in Saudi Arabia and the world.

3.2. Current vision, mission, goals and strategies

- VISION

KAUST aspires to be a destination for scientific and technological education and

research. By inspiring discoveries to address global challenges, we strive to serve as a
beacon of knowledge that bridges people and cultures for the betterment of humanity.

- MISSION

KAUST advances science and technology through distinctive and collaborative

research integrated with graduate education. We are a catalyst for innovation,
economic development and social prosperity in Saudi Arabia and the world

We exist for the pursuit and advancement of scientific knowledge and its broad
dissemination and benevolent application. We strive to enhance the welfare of society
with a special focus on four areas of global significance food, water, energy and the
environment.

- Goals
1. It Provides distinctive and collaborative research
2. Enhance the welfare of society with a special focus on four areas of global
significance food, water, energy and the environment.
3. Desire to collaborate with people who share the belief that tackling global
challenges is a worthy endeavor

4
https://www.kaust.edu.sa ( accessed 20, April 2017)

6
 4. Opportunity to contribute to science and innovation within an historic
enterprise
5. Prospect of living in a uniquely international community where they and their
families can thrive.
- Strategies
1. Provide differentiation education services and research work
2. Innovation and creativity

3.4. Key financial ratios

KAUST did not publish the financial statement or the balance sheet on the internet we
assume that they did not publish their financial data due to competitive reasons.

Profitability
Gross Margin
49.36
Operating Margin
19.14
Pretax Margin
17.92
Net Margin
13.92
Return on Assets
8.16
Return on Equity
16.85
Return on Total Capital
11.33
Return on Invested Capital
13.13

Capital Structure
Total Debt to Total Equity
52.01
Total Debt to Total Capital
33.85
Total Debt to Total Assets
24.55
Long-Term Debt to Equity
29.09
Long-Term Debt to Total Capital

7
4. External Environment Scanning
4.1. General Environment (PEST)

According to Francis Aguilar (1967) PEST is an acronym for political, economic,

social, and technological external factors that commonly affect business activities
and performance. PEST can work alone or be used in combination with other tools,
such as Porter's Five Forces and SWOT analysis, to determine an organization's
overall outlook.

1. Political, Governmental, and legal forces:

This factor looks at how government regulations and legal issues affect a company's
ability to be profitable and successful. Issues that must be considered include tax
guidelines, copyright and property law enforcement, political stability, trade
regulations, social and environmental policy, employment laws and safety regulations.

When the KAUST establish new branch in Egypt, University will faces many political
issues such political instability, rigid governmental regulations and bureaucratic
policies. However university may gains many advantages such as tax exemption
grants to universities.

2. Economic forces:

This factor examines the outside economic issues that can play a role in a company's
success. Items to consider include economic growth, exchange, inflation and interest
rates, economic stability, anticipated shifts in commodity and resource costs,
unemployment policies, credit availability and unemployment policies.

KAUST may suffer from fluctuation of exchange rate, and Rate of inflation
determines the rate of remuneration for employees and directly affects the price of the
tuition and enrollment fees products . on other hand the cost of labor in Egypt is low.

3. Social and Demographic:

This issue analyzes the demographic and cultural aspects of the company's market.
These factors help businesses examine consumer needs and determine what pushes
them to make purchases.

Egyptian families prefer Egyptian Universities or western universities not Saudis '
universities

8
Previously known that Egypt society do not accept the idea of girls' education because
of habits and tradition, but now the female element accounts for 60% of the teaching
assistants recruited and they are the most loyal to the University compared with male
counterparts as well as they constitute the largest proportion in the movements of
foreign scholarship, which consider as a huge shifting in society awareness and
knowledge.

4. Technological Forces:

This factor takes into consideration technology issues that affect how an organization
delivers its product or service to the marketplace. Among the specific items that need
to be considered are technological advancements, government spending on
technological research

Egypt is one of the Middle East countries who realized the importance of the
technology in life especially when consider it as a tool of learning in its universities
or in distance education. Government in Egypt attempts to improve the infrastructure
of telecommunication and networks.

4.2. Porter model

The Five Competitive Forces are typically described as follows:

Source: Porter (1999) essential competitive strategies. Rio de Janeiro: Campus.

1. Threat of New Entrants

9
The threat of new entries will depend on the extent to which there are barriers to
entry. These are typically

- Economies of scale (minimum size requirements for profitable operations),

- High initial investments and fixed costs,
- Cost advantages of existing players due to experience curve effects of
operation with fully depreciated assets.

KAUST new branch in Egypt gain an advantage difficult for the others to enter and
compete in high level of education because there are high capital cost (initial
investment). Also KAUST has advantages comes from economies of scale because it
has experience in education service. (LOW)

2. Rivalry among competing universities:

This force describes the intensity of competition between existing players

(companies) in an industry. High competitive pressure results in pressure on prices,
margins, and hence, on profitability for every single company in the industry.

Competition between existing players is likely to be high when

- There are many players of about the same size,

- Players have similar strategies
- There is not much differentiation between players and their products, hence,
there is much price competition
- Low market growth rates (growth of a particular company is possible only at
the expense of a competitor),

We face high level of competitors from public or private universities in Egypt

especially when the public universities increase in number with providing more
facilities for the students. or when the government grants scholarships to Saudi
abroad. So KAUST must provide differential education services (High)

3. Potential development of substitute products:

A threat from substitutes exists if there are alternative products with lower prices of
better performance parameters for the same purpose. They could potentially attract a
significant proportion of market volume and hence reduce the potential sales volume
for existing players. This category also relates to complementary products.

Similarly to the threat of new entrants, the treat of substitutes is determined by factors
like

- Brand loyalty of customers,

- Close customer relationships,

10
 - Switching costs for customers,

There are many students prefer Egyptian universities and they can learn by using
online education or distance learning (virtual learning). Current trend toward
American universities (High ).

Through this age of developing education tools we need improve our skills to
compete the alternatives universities outcomes.

4.Bargaining power of customers:

the bargaining power of customers determines how much customers can impose
pressure on margins and volumes.

Customers bargaining power is likely to be high when

- They buy large volumes, there is a concentration of buyers,

- The supplying industry comprises a large number of small operators

Our students faces many alternatives now and we need to increase their loyalty to us
by take attention to their complaints and suggestions. Students have elasticity toward
enrollment fees (High)

5. Bargaining power of suppliers:

The term 'suppliers' comprises all sources for inputs that are needed in order to
provide goods or services.

Supplier bargaining power is likely to be high when:

- The market is dominated by a few large suppliers rather than a fragmented

source of supply,
- There are no substitutes for the particular input,
- The suppliers customers are fragmented, so their bargaining power is low,
- The switching costs from one supplier to another are high,

We have a number of efficient teachers and academics that has been contracted with
many of them from abroad, but we want more experts in the vital areas of future
demand. Low switching cost, and fragmented market(average).

4.2. Strategic Group

11
 A strategic group is a concept used in strategic management that groups companies
within an industry that have similar business models or similar combinations of
strategies.

Hunt (1972)5 coined the term strategic group while conducting an analysis of the
appliance industry after he discovered a higher degree of competitive rivalry than
suggested by industry concentration ratios. He attributed this to the existence of
subgroups within the industry that competed along different dimensions making tacit
collusion more difficult. These asymmetrical strategic groups caused the industry to
have more rapid innovation, lower prices, higher quality and lower profitability than
traditional economic models would predict.

MSA
High

Cost
of
enroll
KAS
ment UT

Cairo
Low

Low No. of faculties

High

Strategic group dimensions

Vertical axis : Study cost of enrollment of research or output

Horizontal axis : no. of faculties ( specialization)

KAUST has cost of enrollment higher than Cairo university and less than MSA.

5
Hunt, M. (1972) "Competition in the Major Home Appliance Industry", doctoral dissertation, Harvard University

12
 KAUST has no. faculties more than MSA and less than Cairo University

Industry success factors matrix

The matrix identifies a firms key competitors and compares them using industrys
critical success factors. The analysis also reveals companys relative strengths and
weaknesses against its competitors, so a company would know, which areas it should
improve and, which areas to protect.

in order to better understand the external environment and the competition in a

particular industry

Key success factors

MSA Cairo KAU

Key success Weight Score Weighted Score Weighted Score Weighted
factors score score score

Education 0.2 3 0.6 4 0.8 4 0.8

quality
Students 0.2 3 0.6 3 0.6 2 0.4
Loyalty
Overall, King Saud University got the highest score compared with the King Faisal
Providing 0.15 2 0.3 3 0.45 2 0.3
Services University and King Abdul-Aziz University, which means is the strongest in strategic
Infrastructure
position.0.15 3 0.45 2 0.3 4 0.6
s
Facilities 0.15 3 0.45 2 0.3 3 0.45

Global 0.15 2 0.3 1 0.20 1 0.30

Ranking
Total 1 2.7 2.6 2.85

13
Overall, King Abdallah University got the highest score compared with Cairo and
MSA, which means is the strongest in strategic position. Especially infrastructure and
education quality.

4.4. EFAS
identify the key external opportunities and threats that are affecting or might affect a
company.

Weighted
Key External Factors Weight Rating
Score
Opportunities

An increase in the donations. 0.1 4 0.4

Government support. 0.1 3 0.4

An increase in the number of population. 0.1 4 0.3

Internet infrastructure in Egypt 0.1 3 0.3

An increase in the job market. 0.1 2 0.2

Latest ranking as on of the top universities 0.1 3 0.3

Total 0.6 1.9

Threats

Foreign currency fluctuation 0.1 3 0.3

High competition 0.1 4 0.4

Students loyalty to Egyptian universities . 0.1 3 0.3

Contemporary openness of the educational process and

0.1 3 0.3
the increase in the number of new universities.
Total 0.4 1.3
Total 1 3.2

14
Comparing the total weighted score for both opportunities 1.9 and threats 1.3 for
Abdallah Saud University shows the willing to take advantages of the opportunities
especially the increasing of both donations and An increase in the number of population. 3.2
refers to moderate external environment.

5. Internal environmental scanning

5.1. Resources and capabilities

Abdallah university maintains high human capabilities check her excellence from
their counterparts in the kingdom and is characterized by Human Resource
Management:

1 - Creating educational value for students at the university or its clientele.

2 - Ability to creativity and innovation.

3 - Use of modern systems in the management and selection of human resources.

4 A friendly working group to respond to the rapid changes in the education sector.

Resources are including

- Academic structure an systems: King Abdullah university has follows a

traditional approach to course and classroom instruction and online courses.
- more than 840 full time faculty
- On academic side University is administrated by department chairs and
program director, deans and provost.
- Nonacademic divisions such as finance , marketing, business affair, student
affairs and intercollegiate athletics .
- 75% of full and part time faculty have PHDS.
- King Abdullah university provides more than 120 unergraduate major degree
programs and more than 80 undergraduate minors, and more than 50 master's
degree, 11 doctoral programs.
- King Abdullah university has exchange agreements in 5 countries and has
access to more than 130 univerities worldwide through the international
student exchange program.
- Libraries contain an extensive collection of information including 2.0 million
books and 20000 journal/ magazine.
- 36 residence hall, dinning halls , labs and sports stadiums.
5.2. Structure

15
The achievement of a Platinum rating on the LEED scale is a remarkable
accomplishment and unprecedented in Saudi Arabia. As the University grows in
success and scope, the challenge then becomes to maintain this pattern of sustainable
excellence both in the buildings and structures. This is because they will become
home to the vast array of scientific research that will be conducted at the university.
This research will not only enable KAUST to improve its environmental standards but
also to contribute sustainable solutions to the world.
KAUST integrates sustainable measures into the design of the entire community. The
University demonstrates new ways to build in the region, and new ways to live that
promote responsible stewardship of energy resources.

The KAUST Board of Trustees comprises international leaders in academia, science,

finance, industry and public life.

In accordance with the charter, members of this fully independent, self-perpetuating

body gather at least three times a year to oversee the University's activities and
monitor its progress and development. Trustees "shall embody wise and responsible

16
governance and supervision, and shall contribute to this pioneering endeavor and
promote the spirit of creativity the University represents."

The Board appoints the President of KAUST and approves the appointment of senior
administrators and faculty members, upon recommendation of the President. It is
responsible for approving rules that regulate academic, financial and administrative
affairs at the University, and for providing support to the officers who manage day-to-
day operations at KAUST.

Board Members from the Kingdom of Saudi Arabia

His Excellency Ali Ibrahim Al-Naimi Advisor to the Royal Court;

Chairman, KAUST Board of Trustees.

His Royal Highness Prince Abdulaziz bin Abdullah bin Abdulaziz

His Royal Highness Prince Mansour bin Abdullah bin Abdulaziz
His Royal Highness Prince Mishaal bin Abdullah bin Abdulaziz

5.3. Strategic cultural

1. Credibility, mutual respect, reliability and integrity

2. Customer loyalty

3. Innovation and continuous improvement

4. Working in a friendly environment

5. Human capital is our greatest asset

6. Quality is uncompromised

Cultural intensity- members of University accept the norms, values and other cultural
content associated with the unit

Cultural integration- the extent of which department throughout the university share a
common culture Shows the breadth of the culture

17
 5.4. Distinctive competencies
King Abdullah university resources characteristics by :
Distinctive competencies, especially in
A- Efficiency : Miami university efficient in use resources ( financial,
technical ,organizational and human ).
B- Quality : we offering the better education quality in a country
because we have innovating team.
C- Innovating.
D- High response for King Abdullah university students.
This lead to
1- Excellence
2- Decrease costs
3- Create value
4- Generate profits
5- Capabilities of the graduates are in line with the market

King Abdullah university is trying to create a competitive advantage through the

retention cadres education, which has a capacity of creativity and that in a short time,
as well as the capacity utilization of foreign and foreign experts, and do training new
cadres in all fields and send missions abroad.

VRIO analysis :

Key success Valuable Rare Inimitable Organization Competitive

factor support advantage
Quality and Yes Yes No Yes Temporary
innovation advantage
Supply chain Yes Yes Yes Yes Permanent
integration
(especially finance
support from)
Funding and Yes No No No Temporary
government support
HR management Yes Yes Yes Yes Permenant

5.5. IFAS

18
 s a strategy tool used to evaluate firms internal environment and to reveal its
strengths as well as weaknesses

Weighted
Key internal Factors Weight Rating
Score
Strength

Differential of educational services. ( Activities and

0.1 4 0.3
research work)

Supply chain integration (especially finance support

0.1 3 0.4
from)

Social responsibility 0.1 5 0.5

An increase in the awareness of the importance of the

0.1 4 0.4
education.
Quality and innovation ( use technology in teaching ) 0.1 5 0.5
HR management 0.1 3 0.3
Total 0.6 2.4
Weakness

lack of diversity 0.1 3 0.3

Low experience about Egyptian market 0.1 4 0.4

Sluggish responsiveness to student and community needs 0.1 4 0.4
Lack of pride of internal community (Student life
0.1 3 0.3
commuter school).
Total 0.4 1.4
Total 1 3.8

Creating a good image in students and society because it is committed to providing

quality and innovation , supply chain integration and Strong social responsibility into
protect environment activities or community organizations.

- King Abduallah University total weighted score of 3.8 indicates that they are
slightly above average in formulating strategies that capitalize on their
strengths and minimize their weaknesses.
6. Strategy Formulation

Strategy formulation tools

19
 6.1. SFAS

summarizes an organizations strategic factors by combining the external factors

from the EFAS Table with the internal factors from the IFAS Table

Strategic Weight Rating Weighted COMMENT

factor score
S1 Quality and .1 5 .5 Key success
innovation
Because
( use
university used
technology in
advanced
teaching )
technology in
learning and
application
practices
S2 Differential .1 5 .4 Committed
of educational toward society
services. and welfare
( Activities and
research work)

W1 .1 4 .4 Distinction
between
Low experience
Arabian staff
about Egyptian
and foreigner
market
staff
W2 .1 2 .2 Not easy to
Sluggish
control of
responsiveness
to student and industry factors
community
needs.
O1 An increase .1 4 .4 It Helps to
in the improve
donations. University
services
O2 An increase .1 4 .4 Increase
in the number number of

20
 of population. faculties to
absorb this
increase.
T1 High .1 4 .4
competition
T2 Students .1 3 .3 Bad use of
loyalty to technology
Egyptian
universities .
Total 1 3.0

KAU total weighted score of 3.00 indicates that they are slightly above average in
formulating strategies that capitalize on their strengths and minimize their
weaknesses. And matching between internal and external factors.

6.2. TOWS

The TOWS Matrix is a relatively simple tool for generating strategic

options. By using it, you can look intelligently at how you can best take
advantage of the opportunities open to you, at the same time that you
minimize the impact of weaknesses and protect yourself against threats.

SO Strategies: WO Strategies:

Quality and innovation ( use technology in teaching ) Low experience about Egyptian market

An increase in the donations. An increase in the donations.

Innovation strategy Alliance strategy

ST Strategies: WT Strategies:

Differential of educational services. ( Activities and research Sluggish responsiveness to student and community needs
work)
High competition
Students loyalty to Egyptian universities
Differentiation strategy
Differentiation strategy

Strengths-Opportunities

21
The SO alternative strategies for KAU are to present their Quality , innovation ( use
technology in teaching )., can use their reputation for quality education services to
promote to better-educated and more comfortable society by using government
support

Weaknesses-Opportunities

Using government support through donation to enhance quality and innovation

Strengths-Threats

KAUST should use or hire specialists in education to neutralize Low experience

about Egyptian market

Weaknesses-Threats (WT) Strategies

Overall strength opportunities is above weakness and threats because

- involves the creation of service that is perceived throughout the industry as

unique.

- can be associated with design, brand image, technology, features, and

customer service

Lowers customers sensitivity to price

Increases buyer loyalty

Can generate higher profits

Based on the TOWS Matrix, the following possible strategies were identified:

Differentiation

Cooperative strategies

22
 6.3. Corporate strategy , directional strategy and portfolio analysis

High low

Question Mark

Education service in the

university

High

Low Cash caw Dogs

University that is in a growth market but has low market demand. These
are question marks they propose the most difficult decisions for
management.

Should they keep investing or pull the plug. Here management must
decide if it will ever increase its market share, or decide their entry in the
market is not competitive and then withdraw from the market

6.4. Business strategy

From BCG analysis University should use Differentiation Uniqueness Strategy to

increase market share by increase quality of services and innovation that is depend on

- Educational services features

- Desirable Image
- Technological Innovation

23
 - University Reputation

6.5. Functional strategy

University should use outsources for their activity because lack of skills and
capacities , use foreigner expert in educational services.

Also KAU should use strategic alliance (cooperative ) by Knowledge-Link

Alliances with other universities.

7. Strategy implementation

7.1. Matching structure with strategy

KAU must adopt its structure with functional strategy by using flexible and simple
structure to increase the market share , enhance the innovation , differentiation and
aid the business strategy.

7.2. Implement functional strategy

OUTSOURCING MATRIX

The Outsourcing Matrix is a valuable tool to companies that have decisions to make
regarding where processes should be sent to be completed. The matrix considers both
how complex each process is and how important it is on a strategic level.

24
 1. HIGH COMPLEXITY; LOW IMPORTANCE

Contains tasks such as high tech education that should be sent to an outside experts to
be completed

2. HIGH COMPLEXITY; HIGH IMPORTANCE

Contains tasks that should be managed and completed within the university , such as
education management. These tasks should never be outsourced as they are very
important.

3. LOW COMPLEXITY; LOW IMPORTANCE

Contains tasks that should be 'outsourced' or sent to automated systems to be

completed, such online education.

4. LOW COMPLEXITY; HIGH IMPORTANCE

Contains tasks that should entail either a careful, effective outsourcing method or
automation, such as biotechnology education.

8. Strategy Evaluation and control balance score card

Evaluation and Control ensures that a company is achieving what

it set out to accomplish by comparing performance with desired
results and taking corrective action as needed

University use Two types of control

Types of Controls

Output controls- specify what is to be accomplished by

focusing on the end result ( quality of graduated students)

Input controls emphasize resources ( tools and material of

teaching, human and equipments)

25
 Primary Measures of Corporate Performance

Return on Investment (ROI)

Earnings per share (EPS)

Return on equity (ROE)

Operating cash flow

KAU should use balance scorecard to evaluate and control strategies

1. Financial measure
2. Non financial
A. Learning and growth: human capital and infrastructure
B. Customer (student ): satisfaction, student value
C. Internal : efficiency and quality

26
Strategy map Balance score card

Objective Measurement Target for

next three
years

Financial succeed financially Reduce operation by 5%

costs
Increase employee by 5%
efficiency Reduce wage
expenses

Customer Customer satisfaction Reduce number of By

customer 40%
complaints

Increase number of
student visits for
university site

Learning Innovation andUsing online education No. of

and R&D students
growth registering
online

Internal Process improvement Using advanced labs ISO 19000

27
Conclusion
Strategy identify the direction and scope of an organization over the long-term: which
achieves advantage for the organization through its configuration of resources within
a challenging environment, to meet the needs of markets and to fulfill stakeholder
expectations. KAUST will face high competition in Egyptian market of education
services. So it should provide differential services to attract Egyptian and meet
different needs with high quality services.

References
1. David, F.R. (2009). Strat.Mgmt.: Concepts and Cases.
2. Rothaermel, F. T. (2012). Strat.Mgmt.: Concepts and Cases. McGraw-
Hill/Irwin.
3. Johnson, G, Scholes, K. Whittington, R. (2008). Exploring Corporate
Strategy. 8th ed. FT Prentice Hall.
4. Cox, M. Z., Daspit, J., McLaughlin, E. and Jones III, R.J. (2012).
Strat.Mgmt.: Is It an Academic Discipline? Journal of Business
Strategies.
5. Blatstein, I.M. (2012). Strategic Planning: Predicting or Shaping the
Future? Organization Development Journal.
6. Porter (1999) essential competitive strategies. Rio de Janeiro:
Campus.

28