Answer to Question #239707 in Management for jailooooo

Question

An international MBA University by the name of INSEAD located in france wishes to enter india to set up a campus. Conduct a PESTLE analysis for INSEAD in india and suggest whether INSEAD should enter india or otherwise. 

Answer 1

POLITICAL FACTORS [P]

The political environment of the region or country, influencing management (higher) education in both ways (negative as well as positive) through federal regulation, reduction in government funding, In-campus elections (student leadership), political influence in education system activities, by local leaders as well as domestic leaders, government (political) interventions for the promotion of education and democracy etc. India currently has a stable political environment and favorable government policies in Education like the University grants commission. These factors would definitely favor the growth and development of INSEAD campus in India would they choose to set up one.

ECONOMIC FACTORS [E]

The Economic environment of the region or country, also influencing management (higher) education in both ways (negative as well as positive) through Economic Stability/Instability (financial condition of the country), opening of the Indian economy, family income, poverty level and hunger, child labour and Scenario of globalization, Inflation Rate, Lending and Borrowing rates of the fund (Interest Rate), Banking policies, Exchange Rate etc. India is the world’s sixth largest economy by nominal GDP and the third largest by purchasing power. This is as a result of its protectionist economic policies, with extensive state intervention and economic regulations. India has very effective and efficient economic policies that are favorable and conducive and would allow ISEADS campus in India to grow and thrive.

 

SOCIAL FACTORS [S]

Whole society has been affected with the course of action of education system. The social environment of the region or country, also influencing management (higher) education in both ways (negative as well as positive) through competition among education providers, Family background i.e. education level/income level/living status/parents involvement and awareness, gender disparity, education distribution, class and caste disparity, social responsibility, cultural diversity, social justice and harmony, Awareness for educational programs etc. India is a country with high educational values and is considered as a country with an asset of technically sound, motivated and hardworking student strength and dedicated faculty members. This is brought about by social factors such as positive career attitude and positive and supportive cultural aspects of India’s population. These factors favor growth and development of institutions of higher learning.

TECHNOLOGICAL FACTORS [T]

Technological factors have both opportunities and threats and capable to influence the management (higher) education in both ways (negative as well as positive) through the technological infrastructure support for country’s education system, computerization, ability to access internet and new technology, peoples compatibility with technologies, acceptance or resistance to emergent technologies, mobile phones, Television, cinema and media involvement, electricity backup, approaches for higher education information system (HEIS) development etc. India has improved its ranking in the Global Innovation Index 2021 report and currently stands at 46^th position. India ranks third among the most attractive investment destinations for technology transactions in the world. Modern India has had a strong focus on science and technology, realizing that it is a key element for economic growth. India is among the topmost countries in the world in the field of scientific research. The Government is extensively promoting research parks technology business incubators (TBIs) and (RPs), which would promote the innovative ideas till they become commercial ventures.

LEGAL/ REGULATORY FACTORS [L]

The legal or regulatory mechanism of the country has both positive and negative influence over any of the activity taken place, some of them can be GATS/WTO involvement, foreign collaboration and Umbrella higher education bill, regulatory mechanism, regulation conflict among various regulatory bodies, uneven education structure, transparency in the system, Rules-regulation for governance of education system, educational privatization, University and college admission system, and provision of fee refund etc. Today, higher education institutions face intense competitive pressures. They have to meet increased expectations of different stakeholders, are required to do more with less (be more efficient) and do it better (be effective).

Conclusion

Considering all these factors , INSEADS  campus in India would thrive and grow due to the favorable and conducive PESTLE environment therefore they can comfortably enter Indian market.