Weakening economies lead to diminished enrollments.
1) The free ride which Chinese universities have enjoyed due to a continuously
growing economy for the past two decades is coming to an end. As of the 1st
quarter in 2015
China's GDP growth rate is at its weakest
in the past 24 years. Twenty four years! And China's overall industrial production just saw its
weakest year-over-year reading ever outside the global financial crisis.
China’s annual growth rate has slowed from around 10% in 2011 to around 7.5%
as of the third quarter of 2014. Its domestic consumer market appears
subdued. In the third quarter of 2014, the Consumer Price Index (CPI), which
measures the average change in the prices of consumer goods and services, was
its lowest since February 2010. The real estate market has been weak and
domestic investments in fixed assets – which includes new building projects –
grew by only 16.1%. That number was above 21% in early 2013, and has been
The state of the Chinese economy in
China is entering into a era of transition, again.
Inevitably, slower and lower admissions due to a weakening economy, less
disposable money in the consumer's pocket coupled with dramatically less money
from the public purse will result in squeezed budgets and in an accelerated financial crunch at
universities throughout China. Particularly, at universities who haven't yet given
much thought or planned for this in advance.
Millions of college graduates won't find
jobs, and millions more will conclude that a university education is not
the path to riches.
This is the process which we
foresee unfolding in the higher education market in China (and around the globe) this
coming decade (2015-2025).
China is not alone in facing a deflationary dilemma. If these trends
continue, financially, TT® really makes sense beyond just the pedagogic value.
China's Dagong rating agency is implying the same trends continuing and
cascading further just as we are...
February 04, 2015.
A setback in the growth model focused on credit-based
consumption may become a source of a new crisis
BEIJING, February 4. /TASS/. The world economy may slip into a
new global financial crisis in the next few years, China’s Dagong
Rating Agency Head Guan Jianzhong said in an interview with TASS
news agency on Wednesday.
“I believe we’ll have to face a new world financial crisis in
the next few years. It is difficult to give the exact time but all
the signs are present, such as the growing volume of debts and the
unsteady development of the economies of the US, the EU, China and
some other developing countries,” he said, adding the situation is
even worse than ahead of 2008.”
2) In addition to the financial issues, technically, we believe the data
also shows that competitive online "Internet" educational opportunities
will continue to
considerable ground from
traditional brick-and-mortar universities just as they have done in the past decade.
They are slowing stealing your market share.
And their degrees are becoming more
widely accepted. More than ever before. Here is a
classic example of this process. His inspiration is to put Harvard
University and all the rest, including you, out of business. And with an IQ of
193, he is/they are on their way!
This phenomena is taking place not just in China but around the
globe (7 of the
top 10 Google "university" searches in 2014 were for online
Internet schools) thereby showing us that "already" the squeeze is on, even if
you insist on denying it. The time will come soon when there is
no difference between an on-campus degree and an on-line degree.
3) Plus, there has been a rise of Chinese students
universities outside of China, too.
"As graduates emerge from Chinese universities without jobs, more high school
students are directing their efforts overseas. Chinese students now make up 31
percent of all international college students at U.S. universities, according to
data from the Institute of International Education.
In contrast, gaokao test takers reached a low in 2012 of about nine
million since its peak of 10.5 million in 2008. The Financial Times reported
that an additional million students backed out of the test last minute in 2013.
The pressure that once came with the gaokao now falls for some students to the
SAT, ACT, and TOEFL."
4) Last but not least, adding stress to all the above is the fact that China is
experiencing a slowing down in population growth, already specifically
affecting the number of applicants to universities today. Some in China see this
population issue at the crux of the unfolding
enrollment crisis. We believe all the above factors explain it, and we
expect this problem to accelerate in the coming years bringing the question of
financial management of schools to the forefront of every administrator's
So, here's another way to look at TAJA T2®
and incentivize yourself to adopt it immediately ...
The writing is on the wall Mr. University.
Financials are going to
become critical very soon (if they are not already). Not the number of
buildings, not the nr. of campuses, nor the nr. of basketball courts.
Payrolls are going to have to be cut.
Or classrooms are going to have to
Or maybe both.
That's where we are all headed to.
We're saying do it intelligently so that students, school and teachers
profit, all simultaneously.
Instead of your starting point being "cutting," we're saying think "DIFFERENTLY."
Think merging. Then think teacher training. Taja Teacher Training. T2®. Two Teachers
trained in T2®. Two
teachers, one classroom. Big savings. Two cost less than three. Two do the job
better than one.
This makes sense.
We'll save you money, and make you money.
And enrich the learning and teaching experiences and environment too.
We're saying TAJA® your payroll NOW already in the
2016 AND 2017 fiscal year. Get ahead of the curve, now. TAJA T2 fosters
freshness and change. Standards are going to have to be
reset too as they always inevitably are in a deflationary spiral. TAJA T2 accomplishes all this
with the best possible outcomes, and more. This is how
capitalism, any type of capitalism, works. Raise the learning experience. Raise the teaching
bar. Don't wait. Cut fat from the balance sheet today. You have an incentive to TAJA
today because you profit. Immediately profit, as do your teachers, as do
As they say in America, "gutsy moves" usually pay great dividends. Don't wait to be forced into "shaping up"
because by then you'll only be responding to an enrollment and financial crisis whereas now
you have the opportunity to innovate, lead, and profit. Innovate Mr.
University or expect to be
financially squeezed probably like you have never seen before as both China and
economies around the world dramatically slow down while at the same time
more students "go online" for their degrees, more than ever
TAJA T2® the paradigm is clear.
Two do the job much better than one. Two costs less
Sunshine even on rainy days!
enriches the learning experience.
T2® unlocks the
TAJA T2® is a big boon for your school financials!