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Pestle Analysis 1

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Pestle Analysis 1. Political Factors When it comes to a creation of new business venture in a market, a lot of factors may concern the political elements of one country. Basically all the influence that a government has on the business and throughout the process of the creation. By principle political parties are oriented to have power over common actions, where the ability to influence a decision making process or creation of law can have impact on a given community (Radovanovi?, 2015). In the context of higher education, what is applied in a classroom is considered to have a political power and there is constantly advancing the technology in the educational system or “forward-thinking” by political institutions. When it comes to Serbia and the system of education, it has a limited capacity to conduct system evaluation and some systems remain undeveloped (The Serbian education system, 2021). Therefore the evaluation of specific criteria’s cannot be specified, which adds possible problems to companies and business that what to advance in creation of programs valuable for the education system in view of digitalization. On the other hand Serbia is the richest country in Western Balkan and all of the public institutions are funded by the Ministry of Education, Science and Technological Development, where private institutions has main income of just tuition fees (Eurydice, 2017). To better understand the political impact on education, we can say the Serbia is fully focused to implement the best possible platforms and materials for learning, to meet European standards of teaching and learning. Thus the government is fully aware of the situation that the country is with its educational system and they are investing on it for the future generations. 2. Economic Factors As previously said, Serbia is the richest country in the Western Balkan and its economic status is at great level. When the Covid-19 pandemic hit, Serbia had a moderate decline of 1.8 percent of the GDP, but since cure for the pandemic was found and Serbia was the first country in the Balkans to have the most vaccines and vaccinate 20-30% of the population, its economic growth for 2021 is expected to be at 4.8 percent and it will be based on investments and personal consumption. The growth is also expected in 2022 by 3.8 percent, which will make Serbia the best country to start a business or invest in (China-CEE Institute, 2020). However unemployment rate is still high across Serbia, where the youth population of witch nearly one-third is without job, even those who attained a post-secondary education, around 27.8% were unemployed in last quarter of 2018 (OECD iLibrary, 2021). In the 2018/19 school year, the number of high education students totaled 256,172, which is a rise of 30% since 2000s and till now the number is growing at a pace (Anon, 2021). However back then, only 24% of Serbia’s workers aged 25-64 had any higher education compared to 32% in the EU28. 3. Social Factors Serbia’s population is among the most ethnically homogenous in the Balkan with 83% of Serbs and other minorities like Hungarians (3.5%), Roma (2.1%) and Bosniaks (2%). Also, Serbian population is projected to have a decline due to low fertility rate by 15% by 2050 (OECD iLibrary, 2021). On the other hand, the high unemployment is still present in Serbia with 23.7%, which is the prime economic and social problem of the society. However, having the most unemployment in the ages of 25-64, which is the biggest age group in Serbia, as shown below, creates as said before, decrease in fertility and increase in mortality rates (European Commission, 2017). Another social factor that is important, is the youth population that is dropping out of education which is a great concern for the Serbian government. Throughout a research study done, around 6000 to 9000 children from one generation is dropping out of compulsory primary education (Simi?, 2017). Factors of occurring this problem may be the various characteristics of the school that leads to having such a decision, and those may be: school size and type, school equipment and resources and teacher practices and quality of teaching (Simi?, 2017). Having those factors in mind, research has shown that teacher-student relationship has a considerable impact on the students being satisfied with the school and even on the academic achievements, which can drastically reduce the dropout circumstances and achieve better educational levels. However, fair disciplinary processes, diligent administrators, high standards, and numerous opportunities for active involvement are all characteristics of schools that effectively retain their students. Successful schools concentrate on their students' strengths rather than their weaknesses, and they maintain ongoing student support services that include parents and local community members (Simi?, 2017). 4. Technological Factors Serbia is the country with the highest relative rise in public investment in R&D in 2011, according to the new Innovation Union scoreboard survey, which is intended to aid in tracking the adoption of the leading initiative "European Union 2020 innovation" through a comparative evaluation of innovation success of the EU27 member states (Anon, 2021). Serbia's innovation deficit is best demonstrated by the fact that it ranks 29th out of 34 European countries, and it belongs to the last community of countries with a moderate innovation infrastructure and even modest economic influence. However, it has advanced in the ICT or so called information and communication technology, where was shown that Serbia has over 2.4 million Internet users in 2010 and till now it has grown rapidly (Stoši?, 2021). On the other hand the, the increased investment in the modernization of the industry has influenced a lot of companies, businesses and schools to use more modernized technology in their work. One example is with the hit of the pandemic, where 80% of the country has modernized their technology and gave people the ability to work from home (Stoši?, 2021). Productivity has increased as a result of new technologies. Increasing productivity is typically followed by increased employment: it increases wages, which are then expended, resulting in increased demand for goods and services throughout the economy. This boosts job growth by stimulating demand throughout the economy. 5. Environmental factors The environmental factors may vary from business to business and may have different criteria on how to evaluate those factors. However in our case, the environmental factors such as pollution and carbon footprint, raw materials and many more, does not affect and does not have any connection with the creation of a platform for educational purposes. On the other hand, factors such as hostility, dynamism and complexity, have a huge impact on the creation of our product. The environmental hostility refers to unfavorable external factors in a business environment, which it may result from different economic, social and political factors, like drastic changes in the industry or rivalry among competition (Chen, 2014). All of these obstacles may stop the company from improving the resources required for the development of IT skill. All of this may affect the working process of the company and how to further develop towards innovation, investments and changes. The environmental dynamism is mostly focused on the changes that may happened in the service, technology, competitors moves and shifts in customer demands (Chen, 2014). In this rapidly changing environment, a lot of companies have a degree of uncertainty of what may happened and how to act on it, due to the many changes that can happened, and to reconfigure their IT resources. Such activities may be capturing market information and sharing up to date information to partners. The environmental complexity is viewed as simplifying complex issues such as operational processes which has added complex and sophisticated knowledge to it. In a business environment the complexity has negative effect on engagement with the process and customers may be affected by it. However, in environment like this, is good to have a greater IT capability to improve and to help customers cope better with the complexity initiated by the process Chen, 2014). With generating all of this factors, the potential creation of the platform will have better understanding of what is expected to be in the future and how to cope with the potential threats that we may face. Thus the generated outcome of the process will have better view of what is better for the customer and what is better for the company that creates the platform. 6. Legal factors In terms of using digital devices, internet and online platforms such as video conferencing, people have the right of freedom and privacy. With the latest hit that the world has experienced with the pandemic, all businesses and schools have transferred to the online platforms and video conferencing, mainly for higher education and primary education, where a lot of kids are exposed, but still they don’t know it. In the case of Serbia, a lot of people had problems with the data protection which have caused a breaches of citizens’ rights and privacy. The current system that the country has it for the protection of citizens’ rights has difficulties to respond to the current needs and challenges that regarding it (Cendic, 2021). All of this factors are normal in our age, due to the rapidly increased digitalization, where governments does not have the rights sources to establish good protection of privacy for customers. In the case of the platform that will be used by universities in higher education, the privacy of information is of a great need for every student. Having said that by creation of servers that have high protection, the platform will ensure the customers that the potential hacking threats will be nonexistent to the faculty or to the students. In 2018, Serbia enchanted a new Law on Protection of Personal Data on 9 November, where was established that insight, deletion and change on processing of the citizens data may be restricted by law. This means that agencies and organizations that process Serbian citizens' personal data will limit their rights at will and without any formal legislative authorization (Cendic, 2021). Nonetheless, the law entered into force on 21 August 2019, and many companies public or private, as well as citizens had little time to be familiarized with the law and unfamiliar and unprepared for the society. However the law make difference in the protection of the citizen’s privacy and information that people hoped for, but at the same time all of these information can be used if the government was in need of them for profiling or marketing purposes. Cendic, K. (2021) Children’s rights to privacy in times of emergency: The case of Serbia in relation to internet education technologies.Repository.gchumanrights.org. Available at: https://repository.gchumanrights.org/bitstream/handle/20.500.11825/1705/06.Childs %20right%20to%20privacy%20in%20time%20of%20emergency.pdf?sequence=5&isAll owed=y Chen, Y., Wang, Y., Nevo, S., Jin, J., Wang, L. and Chow, W.S., 2014. IT capability and organizational performance: the roles of business process agility and environmental factors. European Journal of Information Systems, 23(3), pp.326-342. Stoši?, I., Nikoli?. D.and Zdravkovi?. A. 2021. Pest Analysis of Serbia. Core.ac.uk. Available at: https://core.ac.uk/download/pdf/33812293.pdf (Accessed: 10 May 2021). Simi?, N. and Krsti?, K., 2017. School factors related to dropout from primary and secondary education in Serbia: A qualitative research. Psihološka istraživanja, 20(1), pp.51-70. Population: Demographic Situation, Languages and Religions - Eurydice - European Commission (2017). Available at: https://eacea.ec.europa.eu/nationalpolicies/eurydice/content/population-demographic-situation-languages-andreligions-66_en Arsenijevic, J., Tot, V., Nikolic, M. and Milin, D., 2011. The gap between science, education and economy of Serbia and developed countries. African Journal of Business Management, 5(34), p.13176. Anon (2021) Serbia’s New Growth Agenda. Openknowledge.worldbank.org. Available at: https://openknowledge.worldbank.org/bitstream/handle/10986/33566/Serbia-sNew-Growth-Agenda-Country-Economic-Memorandum-Job-and-TrainingReady.pdf?sequence=1&isAllowed=y Serbia economy briefing: Economy of Serbia 2020 hit by COVID-19 – China-CEE Institute (2020). Available at: https://china-cee.eu/2020/12/27/serbia-economybriefing-economy-of-serbia-2020-hit-by-covid-19/ Radovanovi?, D., Hogan, B. and Lali?, D., 2015. Overcoming digital divides in higher education: Digital literacy beyond Facebook. New media & society, 17(10), pp.17331749. The Serbian education system | OECD Reviews of Evaluation and Assessment in Education: Serbia | OECD iLibrary (2021). https://www.oecdilibrary.org/sites/72483fab-en/index.html?itemId=/content/component/72483fab-en Higher Education Funding - Eurydice - European Commission (2017). Available at: https://eacea.ec.europa.eu/national-policies/eurydice/content/higher-educationfunding-66_en 1. U&Uni Company Summary U&Uni depicts an innovative approach to the process of digitalisation of educational services, specifically in the Serbian and Balkan markets. The main idea behind the U&UNI concept, is to provide an accessible and easy-to-use, web-based learning platform, which will allow for educational institutions to easily adapt to the newly introduced mechanisms of learning, and thus stay relevant in an extremely changing and evolving market. Whilst there is an abundance of online learning platforms currently in use, U&UNI embodies all the positive sides of the currently available platforms - intertwined into one product, thus providing synergy between the contemporary technology and innovative approaches to learning. The idea behind U&Uni was born during the team’s bachelor studies, due to the fact that whilst numerous positive aspects were visible and hence had an immense impact on our experience, negative factors were much more apparent. By having first hand experience with the current condition of educational systems and perceived weaknesses, we believe that this platform can embody all the positive aspects, thus exclude or improve all the adverse factors. Utilising such a platform will allow Universities to obtain numerous positive effects, whilst continuously bettering their services hence adapting to constant changes. By utilising our individual experiences, along with extensive the feedback provided by professors and academic staff from various educational institutions, it is assumed that U&Uni can become a high-quality product aimed at disrupting thus improving the educational system in Serbia, which is long overdue for a transformation. Thus, U&Uni aims to become recognised world-wide, as a virtual product which main purpose is to better the experience of students around the world, while simultaneously ensuring accessibility and a simple user interface intended to provide ease for professors. 1.1 Main short-term and long-term objectives of U&Uni Page 1 of 4 • U&Uni strives to become the number 1 online learning platform in the Serbian market, therefore obtaining high market capitalisation and a wide range of users. Specifically, the goal is to become attractive to private educational institutions which have demonstrated initiative towards utilising contemporary technology, thus digitalising their services in order to meet the demand of the modern-times. In order to achieve such a complex goal, U&Uni aims to dedicate significant efforts and resources into developing a platform which can be suitable for almost all users, hence - both the academic staff and students. • U&Uni aims to offer a high-quality, all-inclusive learning platform, which utilises all the existing technology and thus offers all the necessary factors, in order to ensure a smooth transition to web-based learning and provide outstanding user experience - for both user groups. • U&Uni endeavours to obtain at least 10 contracts with Universities in Serbia, within the first 5 years of penetrating the market, or in other words selling at least 10 licenses to targeted Universities. • U&Uni intends to generate positive cash flow from operations, hence obtain a profit margin of at least 5% during its first 3 operating years. Additional goal is to yield a yearly growth in revenue of at least 5% during the first three years of operations, apropos 10% growth in revenue within the next 5 years since entering the market. • Growth in revenue and constant attraction of new users will allow U&Uni to generate higher profit margins, which will in turn enable a continuous flow of funds to be dedicated towards research and development - hence the goal is to perpetually improve the existing offerings while developing new ones according to the technological advancements and customer needs. 1.2 The idea behind U&Uni Page 2 of 4 With every beginning of the university year, comes a handful of amount of students coming from abroad, not knowing to coordinate their location and lacking the skills to socially connect with the surrounding. Having said that, the new comers, have proven that it is more likely for international students to be grouped as a single entity, but also face an enormous need for adaptation (Gebhard, 2012). However, each student accommodates to individual, personal behaviour traits; meaning that every one of them faces and handles the problem differently. Therefore, the various researches have been conducted over the past couple of decades in order to identify the core of the problems, which resulted in mainly students closing into themselves due to anxiety, fear and misunderstanding of the professors, but also the grading systems (Zhou, Freg & Bang, 2006). Whilst various Universities provide an abundance of introductory material and information in their attempt of easing the students’ process of adaptation - students often experience difficulties within their daily activities - such as obtaining material, getting in contact with professors, getting used to utilising new, and often numerous platforms, and many more. On the other hand, research has shown that University professors and academic staff in general, usually experience difficulties when transitioning to new learning platforms, and would thus often provide hard-copy material, rather than digital copies. Many professors have lack of skills or experience when it comes to digital platforms such as Google Classroom, Zoom, Google Meet, and similar, hence not being able to utilise the fullest potential of those platforms and not employing all the features and options. Alongside being exposed to substantial amounts of academic material, and workload, students often experience difficulties within the daily transition and usage of various platforms - for example: E-mail, Mole, Turnitin, Google Drive; therefore their studying process may not be time-efficient and may include complex tasks that students may not be able to conduct. Subsequently, the idea behind U&Uni aroused from the aforementioned difficulties and challenges perceived by both students and academic staff, and it is believed Page 3 of 4 that having first-hand experience with these issues, allows us to better understand the factors in the current condition of educational systems that need to be improved or modified entirely, in order to reach the full potential of lecture delivery processes. 1.3 U&Uni philosophy and key values U&Uni is developed on the belief that undergraduate and postgraduate studies provide students with invaluable life experiences, and thus allow them to develop as people while simultaneously promoting academic excellence. Therefore, U&Uni strives to embody integrity, honesty, innovativeness, and continuous improvement as its key values which are deeply intertwined within U&Uni’s philosophy. Hence, U&Uni aims to disseminate positive traditional values, while having a contemporary approach to learning processes. 1.4 Target Market of U&Uni After careful examination of the current condition of educational systems in Serbia and in Balkan countries, and taking into account the on-going adverse repercussions of the Covid-19 pandemic on the global economy and educational processes, it is assumed that while U&Uni is developed to suit the needs of all highereducation institutions, private institutions depict a sustainable, and more appropriate target market for its first operating years. This decision comes as a result of numerous factors observed, such as the autonomy, budgeting and funding, student turnover rate, and other aspects in which private Universities exhibit better performance or a more suitable option than public Universities. The process of selecting a target market, and other aspects will be further elaborated within the marketing section of the business plan. Page 4 of 4 = U&Uni SUPPORT LOG IN Business Administration & Economics Department Computer Science Department Psychology Department English Studies Department CLASS RECORDINGS CBE0000 Principles of Marketing CBECOD1 Principles of Management CBEOOO2 Econometrics CBE0004 Accounting CBEC005 Principles of Business Statistics CBE0006 Managerial Accounting CBE0007 Cost Accounting CBE0008 Consumer Behavior CBE0009 Marketing Management CBE0010 Business Strategy CEE0008 CLASS MATERIAL CBE0000 Principles of Marketing UBEDOOL Principles of Management CEEDD82 Econometrics CBE0004 Accounting CHED005 Principles of Business Statistics CHEODOG Managerial Accounting CBE0007 Cost Accounting Consumer CBED009 Marketing Management UBEROLD Business Strategy Behavior GUEST LECTURES ACADEMIC CALENDAR Join your live class now Submit your question Thu Fri November 2020 Mon Tue Wed 2 CRE8506-MO. 0853504-NT. CE3300-CO CRE 11 EN 6 CE312:36-IN CRE3504 INT. 13 10 BE3506 MO.. CRESSOAINT *CREEN 11 12 CSE3308-CO-C8E31250N CHE 3504 INT SCHEDULE AN APPOINTMENT Counselling services Tutoring session Meeting with professor Career & employability 20 16 - CB3506-MO 17 18 19 Polytech CHE3300-co C7123 CBE3504 - NT - CE504NT. CET-EN- 24 25 26 CSE3504 - INT. CE3300-COL-C831230 CREEN CHE 3504 INT 27 23 CRE3506 MO INFO WORTH CHECKING Announcements Events at City College Parties & Events CSU Meetings 25.06.2021 20.08.2021 10.09.2021 19.10.2021 20 = U&Uni SUPPORT LOG IN Business Administration & Economics Department Computer Science Department Psychology Department English Studies Department CLASS RECORDINGS CBE0000 Principles of Marketing CBECOD1 Principles of Management CBEOOO2 Econometrics CBE0004 Accounting CBEC005 Principles of Business Statistics CBE0006 Managerial Accounting CBE0007 Cost Accounting CBE0008 Consumer Behavior CBE0009 Marketing Management CBE0010 Business Strategy CEE0008 CLASS MATERIAL CBE0000 Principles of Marketing UBEDOOL Principles of Management CEEDD82 Econometrics CBE0004 Accounting CHED005 Principles of Business Statistics CHEODOG Managerial Accounting CBE0007 Cost Accounting Consumer CBED009 Marketing Management UBEROLD Business Strategy Behavior GUEST LECTURES ACADEMIC CALENDAR Join your live class now Submit your question Thu Fri November 2020 Mon Tue Wed 2 CRE8506-MO. 0853504-NT. CE3300-CO CRE 11 EN 6 CE312:36-IN CRE3504 INT. 13 10 BE3506 MO.. CRESSOAINT *CREEN 11 12 CSE3308-CO-C8E31250N CHE 3504 INT SCHEDULE AN APPOINTMENT Counselling services Tutoring session Meeting with professor Career & employability 20 16 - CB3506-MO 17 18 19 Polytech CHE3300-co C7123 CBE3504 - NT - CE504NT. CET-EN- 24 25 26 CSE3504 - INT. CE3300-COL-C831230 CREEN CHE 3504 INT 27 23 CRE3506 MO INFO WORTH CHECKING Announcements Events at City College Parties & Events CSU Meetings 25.06.2021 20.08.2021 10.09.2021 19.10.2021 20