Collage Expansion Project

Collage Expansion Project

The Netherlands also called Holland, is a delta country with 17 million people located in Western Europe. The country boasts of a favourable business climate with an open and international outlook. The Netherlands is strategically positioned in Europe, has a flexible, multilingual and well-educated workforce with a commendable level of labour productivity. The country is a constitutional monarchy with parliamentary democracy and a civil law legal system that embodies French penal theory. The Netherlands is headed by His Majesty King Willem-Alexander, has twelve provinces, and its official language is Dutch. In the Eurozone, the sixth-largest economic power is the Netherlands, as the country is very open to trade with the main growth drivers being domestic demand and exports.

The recovery in Europe for the past few years has allowed the country’s economy to proliferate with a growth of 1.8% of GDP in 2019 despite a maturing business cycle. Netherland’s debt-to-GDP ratio is at 49.2% below the EU set threshold and expected to decline to 45.5% by 2021. Netherlands has a high, relatively equal distributed income per capita. The GDP per capita in 2018 was estimated at $53,024, which is above the Eu average. The country’s workforce has significantly expanded over the years, with an unemployment rate of 3.3% in 2019.

Netherlands has a prime minister-Mark Rutte whose political party- Freedom and Democracy (VVD) won the 2017 elections narrowly. This was a result of the fractured political landscape which was disoriented by the rise of anti-Islam Freedom Party- far-right and the traditional Labour Party collapse. Even though there is uncertainty about the Brexit, the Netherlands is an attractive investment location with top-notch technological and physical infrastructure with a competitive fiscal climate.

I will focus on six dimensions of culture similarities or differences using the Hofstede model of national culture.

Power Distance Index

Power distance index focuses on how people handle inequalities in society. It is the extent to which unequal distribution of power in the community is accepted and expected by less powerful citizens. A significant degree of power distance reflects acceptance of hierarchical order while a low score means people want to equalize the distribution of power. Both Canada and the Netherlands have a low score in the power distance, reflecting an interdependence in both cultures.

Individualism vs Collectivism

This category focuses on societal interdependence. Individualism generally referees to a society that prefers loosely-knit social framework with the individual and immediate family being the focus. On the other hand, collectivism reflects a culture that favours a tight-knit structure incorporating both relatives and friends. Collectivism society expects the family to take care of each other in exchange for loyalty. Both Canada and Netherlands have scored 80  reflecting both an individualistic culture.

Masculine vs Feminism

This aspect focuses on fundamental issues that motivate people. Masculinity focusing on achievement, assertiveness, heroism and success and feminine societies are focusing on cooperation, modesty, quality of life, and caring for others. Canada, with a 52 score, is moderately masculine, unlike Netherlands which has a 14 indicating a feminine society.

Uncertainty Avoidance Index

Uncertainty avoidance is the extent to which a society tries to avoid threatening unknown situations, uncertainty and ambiguity. Cultures exhibiting strong uncertainty avoidance index reflects the extent to which the community is uncomfortable with ambiguity and uncertainty. On the other hand, a weak uncertainty avoidance index reflects a society that is less principle-driven and has a relaxed attitude. The Canadian culture is more uncertainty accepting with a 48 score unlike Netherlands which has a 53-score reflecting a slight preference for uncertainty avoidance

Long-term Orientation vs Short-term Orientation

This aspect of culture deals with how societies deal with present and future challenges while linking it with the past. Low scoring societies in this category prefer to maintain traditional views on societal change while societies with a high score encourage efforts in modern education in preparation for the future. In this regard, a 67 rating by Netherlands reflects a pragmatic culture, unlike Canada, which has a 36-score reflecting a normative society.

Indulgent versus Restrained

An indulgent society allows for free gratification of without impulse control when having fun whereas a restrained culture suppresses gratification, impulses and desires regulating them with strict social norms. In this light, both countries are indulgent as they all score a 68 in this respect.

Ethics are what ensure an organization has an excellent corporate image, and the college has to consider these four-broad categories of possible ethical issues. The first, employee relation- it is vital for the college to look at possible employee unethical practices, the conduct of both students and the staff- either the student or staff can undertake unethical practices that can damage the collage’s image, social diversity is a crucial concern as the environment is different with a multilingual population.

The collage capabilities are its ability to manage resources efficiently to gain competitive advantage.  These capabilities differentiate the business and offer market security if optimally managed. The college has to ensure it has identified strengths and weaknesses in regards to competitors to enable it to optimize resource allocation. This will allow the college to fully employ and exploit its resources and capabilities. The college has four core resources; human resource, physical and material resource, information resource and organizational capabilities. I will focus on each of these resources and capabilities and the role they play in offering uniqueness and a competitive advantage to the college.

Physical and Material Resources

The college has a number of facilities within its premises that are geared towards the wholesome development of the students. The college hosting several campus facilities like the institute for food processing technology gives it an advantage over other institutions. Students can fully utilize these facilities, machinery and equipment in their daily activities while pursuing their different professions,

Information Resources

The college is on par with the latest technology facilitating most of its services. The institute of food processing utilizes modern technology to run smoothly. The college uses extensive technological advancements in conducting research, running its daily operations and managing student affairs. The technological edge provided by the collage enables it to gather information and feedback more efficiently and respond accordingly. There are various services offered on their website that facilitate efficient and timely services to students and other stakeholders. This technological advancement, combined with skilled employees gives the college a competitive advantage for the college, can respond accordingly to customer demands and remain flexible to changes in the business environment.

Human Resources

The college has skilled, educated and knowledgeable workforce that enables it to achieve its goals. The collage organizational capabilities such as training programs, effective recruiting and hiring policies and education assistance are all geared towards having a knowledgeable workforce. To maintain this capability, the college needs to ensure constant improvements by availing needed resources to the workforce. The number of employees at the college reflects the needs of the institution for they are experienced personnel in the different faculties. The college has a competitive advantage form managing a talented, skilled and experienced workforce who deliver on set goals.

Organizational Capabilities

The organizational capabilities of the collage are embedded in the practices, processes and the organization culture. The college has a wholesome learning focus and pays great attention to graduate employee satisfaction. This provides an advantage over its competitors resulting in enrolment growth over the years. The college has a different approach to graduate transition to employment and has strong ties with various industries training their students on theoretical and hands-on training for professional success.

Porter’s National Competitive Advantage Theory is the best international trade theory for the collage to use to guide its expansion prospects. This is mainly because the theory tries to explain a country’s competitive industries are linked to the industry ability to innovate and upgrade. This theory will focus on four primary areas that will be addressed to assess the Netherlands education industry competitiveness. The factor conditions, demand conditions, complementary industries and local suppliers, and the government involvement

The first aspect will be factor conditions. The first factor to be addressed is English language proficiency. Netherlands has the highest number of English speakers than any other European country. The multilingual workforce also offers a possible market to explore. The quality of secondary school will determine the transition to collages and as such plays a vital role as a factor for consideration. The Dutch overhauled its senior secondary vocation education to promote a qualified system. The third factor being the quality of human capital, Netherlands, has a well-educated professional workforce with multilingual skills. Its infrastructure is the final factor for it is critical in supporting teaching and administrative activities. Netherlands has a well-developed IT industry making the country viable for investment.

The second aspect, complementary industries, focuses on the availability of appropriate research activities and human talent to support investors. The employability of graduates and the availability of suitable academic staff with doctoral degrees are critical aspects of sustainability. Netherlands has all these factors considered for they have a high level of innovation and research activity; they have big corporations and a robust import/export industry that offers work with an unemployment rate of only 3.3%. The working adult population seek additional education from time to time, reflecting an educated nation.

The third aspect, demand conditions, is a crucial determinant of the national competitive advantage. The key factors that determine the demand for the tertiary education sector will be the demographic trends, inbound and outbound mobility and the capacity of higher education. Mobility rates determined the demand and type of required services. The inbound mobility rate in Netherlands is above European inbound mobility rate; however the outgoing mobility is at 2%.

The last aspect I will focus on is government involvement and regulations for it has a direct impact on the college rivalry. Governments recognition of qualification and programs, ease of doing business and income per capita are vital components to look at. Netherlands is considered a county where it is easy to do business, share close relationships with Canada and are both beneficiaries of the Comprehensive Economic and Trade Agreement.

The best option for the college to expand to Netherlands will be a foreign direct investment. This is mainly because the collage has to manage the campus in Netherlands to reflect the organizational culture of the college. Netherlands having an above-average expected growth and a skilled workforce it poses as an advantage to the college.

Netherlands is the sixth-largest FDI recipient in the world and the top in Europe. The rise in FDI growth from $58.2 billion to $69.6billion in a year is reflective of the attractive investment environment of the country. The Dutch government has no foreign direct investment regulatory restrictions for the investment policy of the country is characterized by; a liberal policy and strong international orientation towards foreign investment. These are all advantages for the college as the institution needs to establish a permanent footprint in the country. Netherland’s strategic location offers the college different markets to add to the advanced infrastructure and a competitive fiscal climate that the country offers.

The college can capitalize on the Dutch tax environment for the country has the lowest corporate tax rate of 21%. The new quadripartite government has a focus on lowering the tax more and increase spending in education and other sectors, making it easier to do business. There are more than 2,100 international study programs in Holland with high-quality international study environment. The collage can undertake a horizontal direct investment strategy to diversify its products, making them unique from the institutions in the country. The career-focused education approach that empowers students with theoretical and hands-on training is well suited for the country’s economic needs. Furthermore, the college can make use of the Comprehensive Economic and Trade Agreement between Canada and the European Union to enhance its competitiveness.

The main advantages the location offers the collage are reduced corporate tax, there are no limiting restrictions for FDI investments. The technological and infrastructure growth of the country is an advantage to the college. The geographical position of the country and its international economic focus offers the collage a more comprehensive market opportunity. Netherland’s internationally oriented, educated working population that is multilingual is an asset the college can capitalize on.