Issue link: http://www.e-digitaleditions.com/i/61380
"The real threat for business schools is low-cost schools competing with full-service schools." —Thierry Grange lower-cost educational services, often in areas of the world that may be too cost-prohibitive for brick-and-mortar busi- ness schools. As a result, business schools are striving to com- pete with lower-cost rivals, via expanded e-learning programs and global partnerships. "Five years ago, in all the deans and directors meetings, with curriculum revisions, rationalized offerings, innovative teaching, team-based collaborative learning environments, wireless technology initia- tives, internship and placement emphases, study abroad opportunities, faculty-student research part- nerships, learning outcome assessments, diversity commitment, high-tech facilities, mission-driven/ reward-based annual review and promotion & ten- ure processes, and excellence in all that we do. The College of Business and Economics Dr. Len Jessup, Dean Entrepreneurship. Innovation. Leadership. www.cbe.wsu.edu everyone thought that the main competition for business schools would come from consulting companies or corporate universities that would offerWeb-basedMBAs," says Grange ofGrenoble. "But it hasn't happened that way.What has hap- pened is comparable to what you see in the airline industry: Low-cost airlines are competing with full-service airlines. The real threat for business schools is low-cost schools competing with full-service schools." Still, say experts, it's that free-market reality that consti- instruction, information, and consulting to external markets. Rather than rely fully on state or university support, they have the unique opportunity to address budget shortfalls with entrepreneurial, potentially revenue-generating ventures. This advantage is not lost on Grange, who is looking at tutes business schools' greatest advantage over other academ- ic disciplines. Business schools have the ability to sell their students, 30 percent from companies, and 7 percent from supernational organizations such as the EU or World Bank," Grange explains. "We would like to reverse those numbers by reducing student contributions to 35 percent and increasing corporate contributions for the rest." Such an entrepreneurial model for raising revenue, which Grenoble's financial future with concern, given current demographic trends in France. The population of young peo- ple is decreasing, and with it, the school's pool of applicants. Therefore, although Grenoble Graduate School of Management is one of only a few European institutions to charge private tuition, Grange believes that the school cannot rely on tuition income for its financial security.He sees anoth- er possibility for Grenoble—he hopes to build its revenues by selling more of its services to corporate customers. "Currently, about 63 percent of our resources comes from sells services to corporations to subsidize individual tuitions, is one that business schools might more readily exploit, says Johnson of IUPUI. "Business schools are more sensitive to 30 BizEd MAY/JUNE 2004 We are Raising the Bar