The Objective Of Business Firms Is To Obtain Profits
A country’s prospects for development depend on the quality of their people. Due to the scarcity of high education level in the whole education market in this 21th century, Taylor’s must play an important role to develop youth into well-rounded, competitive and resilient contributors with global perspectives under my administrative policy.
According to the supply theory, the objective of business firms is to obtain profits, supply decision always depent on profit potential. When the price of good increase, the supply education will increase. Whereas, when the price of good decrease, the supply education will decrease. This is always be a positive relationship with a upward slopping supply curve.
First of all, we should understand how a demand of education in whole world could affect the demand for Taylor’s education level and what are the factors could affecting the demand for Taylor’s education service.
When the demand of education in whole world increase and simultaneously increase the demand in all public and private institution. To futher understanding, we try to imagine a disease like SARS suddenly outbreak in whole world. When the health awareness increase , the demand of doctors and nurse will simultaneously increase. If not, how terrible would be occurs in that country when progressing to 21th century? Hence, when the disease suddenly outbreak in the country, rapid grow its supply of doctors and nurse to meet its demand of influenza patient.
However, how do we attract and recruit more students to enroll in our institution to maximised our profit in order to increase market share of Taylor’s University College? These are some the factors may affect the demand for Taylor’s education service with the assumption of the price (course fees of programmes) of Taylor’s University College is ceteris paribus.
1) Level of Consumer’s Income
If the level of consumer’s income rises, they are willing and able to pay a high course fees in Taylor’s University College, thus, the demand for Taylor’s education service will increase.
2) The consumer’s Taste and Preference
If the consumer prefer Taylor’s University College over INTI International College. The demand for Taylor’s rises even though the course fees of both university remain constant.
3) Quality in Taylor’s Education Service
People associate price to quality. The higher the price, the better the quality.
4) Branding of Taylor’s University College
5) Programmes Available
When the types of programmes available in the Taylor’s University College increase, student who intends to study in Taylo’s University College has more choices, the demand for the student study in Taylor’s University College will increase
6) Infrastructure and Facilities Provided
The more facilities provided such as hostel, international office,library,computer lab etc could increase the demand for Taylor’s education service.
7) Scholarship
helps poor
8) Advertisments
Advertising always can increase brand loyalty to the goods and increase demand.
Nowadys, advertising education has become widely popular with bachelor, master and doctorate degrees becoming available in the emphasis.From Wikipedia, A student-run advertising agency acts like a real advertising agency, but is owned and operated by students. Usually operating as a student club in a university, the student-run agency provides advertising services to various organizations such as school departments, small businesses, and large non-profit corporations. The main appeal of a student-run ad agency is the factor that the work is produced for free as well as the intimate knowledge of the student sector by the agency. They could bought student from international such as China, Indonesia, Paskistan
9) Goverment policy
When government give subsidy to Taylor’s University College, the cost of production of Taylor’s University College decrease, the low course fees may offers to every students. Hence, the demand for the Taylor’s education service increase.
10) Good Academic – find good teacher, student get experience
Employ some of the higher education lecturer to Taylor’s University College
The factors above would shift the Demand curve to the right (D1 to D2).So that, the demand for Taylor’s Education Service would increase from (Q1 to Q2).Hence, the lower the price of programmes, the higher the quantity demanded for Taylor’s Education.
Price elasticity of demand evaluates how responsive in price influences demand. In other words, price elasticity can also reference the amount of consumer’s money is willing to pay for something. In certain circumstances, demand remains inelastic, despite higher prices
When the price elasticity of demand is elastic, a person with a higher income is said to have higher price of elasticity, they are afford to spend more. In contrast, since the people with lower incomes, they tend to have lower price elasticity, because they have less money to spend. The goods of their purchase is called normal good. In both cases, the quantity demanded is depend on the price. If the thing being sold is in high price, even a consumer with low price elasticity is usually willing to pay higher prices to purchase it. Thus, the good with the high price could attract people with low price of elasticity to purchases it, is called luxury good.
To interpret the coefficient, e
Type of Demand
Value of Ed
Price
Total Revenue
Relationship
Elasticity
>1
Negative relationship
Inelasticity
<1
Positive RElationship
Ed = Elasticity of Demand
(Hence, if the absolute value of the price elasticity of demand is greather than 1, demand is elastic.Whereas, if the absolute value of the price elasticity of demand is less than 1, demand is said to be inelastic.)
Course Fees of
Foundation in Business 2010.
Quantity Demanded for Taylor’s Education.
Total Revenue for the course.
$20,000
600
$12,000,000
$15,000
900
$13,500,000
$12,000
1,200
$14,400,000
$10,000
1,500
$15,000,000
$ 8,000
2,000
$16,000,000
Total Revenue = Price x Quantity Demanded
Total Revenue 1 = $20,000 x 600
= $12,000,000
Total Revenue 2 = $15,000 x 900
= $13,500,000
Total Revenue 3 = $12,000 x 1200
= $14,400,000
Total Revenue 4 = $10,000 x 1500
= $15,000,000
Total Revenue 5 = $8,000 x 2000
= $16,000,000
From the Price elasticity of demand’s formula,
E = % change in Quantity demanded
% change in price
= % 900-600 x $20,000
600 $15,000-$20,000
= -2
(The Price elasticity of Demand in Taylor’s Education Service is >1. Hence, the elasticity of demand in Taylor’s Education Service is said to be elastic.)
In short, when the price of the programmes rises, the quantity demanded for the programmes fall with the assumption of ceteris paribus. A high course fees on programmes will result in students shifting their demand to other available alternatives universities. According to Wikipedia, when a good or service has numerous substitutes, prices are more elastic and will change with demand. In fact, numerous companies offering the same course can also affect price elasticity of demand. Generally, goods or services offered at a lower price lead to a demand for greater quantity. If Taylor’s make a reduction in several program that have many substitute university to attract more student. Hovewer, keep make a reduction in course fees could not maximized our profit.
To increase the total revenue always depends on the price elasticity of the course fees.Cut the price if it is elastic or raise the price it is inelastic.
The factors that influence price elasticity of Demand is available of substitutes,luxury goods versus necessity, proportion of income spent on the goods.
advertisement changed e ti inelastic.- bcs someone brand loyalty switch to it’s substitute
– TUChv make ppl loyal.
-graph
APPENDIX
Overview The Lastest Highlight in Taylor’s University College (TUC).
According to the Malay Mail, the Higher Education Minister Datuk Seri Mohamed Khaled Nordin this morning announced 18 “excellent” universities and private university colleges in the country, as outlined by the Malaysian Qualifications Agency (MQA) six-tiered rankings for last year. This 2009’s rating system result institution of higher learning were based on 25 criteria,
covering three generic dimensions of input, process and output to assess the quality of teaching and learning. The input dimension address talent, resources and governance; the process dimension focuses on curriculum matters; and the output dimension is on the quality of graduates.
Compared with 2007’s rankings, only 20 local universities were evaluated. For 2009, we have expanded the rankings to local and private universities. Of the 58 local participating institutions, 18 were ranked “Tier-5” or “Excellent”. Mohamed Khaled said among the top scorers were University Malaya, Universiti Teknologi Mara, International Medical University and Taylor’s University College.A total of 25 universities and university colleges were ranked in Tier-4 (Very Good) and four university colleges received Tier-3 (Good) ranking. However, none of the institutions were ranked Tier-6 (Outstanding), Tier-2 (Satisfactory) or Tier-1 (Weak).
Tier 6: Outstanding,
Tier 5: Excellent,
Tier 4: Very Good,
Tier 3: Good,
Tier 2: Satisfactory,
Tier 1: Weak.
The Tier-5 participants are…
1. Curtin University of Technology Sarawak
2. International Islamic University Malaysia
3. International Medical University
4. Management and Science University
5. Monash University Sunway Campus
6. Sunway University College
7. Swinburne University of Technology, Sarawak Campus
8. Taylor’s University College
9. The University of Nottingham, Malaysia Campus
10. Universiti Kebangsaan Malaysia
11. Universiti Kuala Lumpur
12. Universiti Malaya
13. Universiti Multimedia
14. Universiti Putra Malaysia
15. Universiti Sains Malaysia
16. Universiti Teknologi Malaysia
17. Universiti Teknologi Mara
18. Universiti Teknologi Petronas
As one of Malaysia’s oldest and leading private institutions of higher learning, Taylor’s has played a significant role over the years, in shaping the nation’s education landscape and the development of our human capital towards the realization of industrialized status and Vision 2020. Our 41-year heritage and tradition of excellence has resulted in over 59,000 successful graduates who have taken their places in the workplace, both locally and globally, with many becoming leaders in their fields.
We are truly honoured to have been rated as ‘Tier 5: Excellent’ with no institutions being rated in Tier 6. by the Ministry of Higher Education in the 2009 MQA Rating System for Malaysian Higher Education Institutions (SETARA ’09) announced on July 13, 2010.
This recognition from the Ministry of Higher Education reassures us and spurs us on to continue upholding the quality of our teaching and learning environment to fulfill the holistic needs of our students and meet Malaysia’s agenda of a world-class, high income economy.
Refrence
1) student-run advertising agency-
http://en.wikipedia.org/wiki/Student-run_advertising_agency
