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China is not a "promised land" for all business programs. Only new programs that take a measured approach and offer a demonstrable ROI will succeed. STRATEGY NO. 4—Study Abroad. Schools that want to offer study abroad opportunities face a choice: either offer short- term programs that are less expensive, easier to run, and less likely to present scheduling conflicts, or offer longer-term programs that provide students with more sustained expo- sure to Chinese businesses. In addition, some schools design their own study abroad opportunities, while others use out- sourced programs that take less time but may conflict with their own offerings. In many cases, it may be wise for schools to take an incremental approach. They can start with short-term and/or outsourced options, and gradually lengthen pro- gram duration and increase their oversight over time, as they gain experience. Western business schools with satellite programs in China face the additional challenge of balancing their own faculty with local academics. If they place too many Chinese faculty in the classroom, the program may be seen by the market as homegrown and not worth a global price tag. If they place too few, the program may be seen as irrelevant to the fast-changing Chinese environment. CHOOSE LEADERS WISELY. In the second year of its program in China, a Western school placed an unqualified faculty member in a supervisory role. It already faced problems because it had not sufficiently mapped out resources and processes. The faculty member's lack of experience only exacerbated that institutional weakness. The program lost ten qualified candidates and more than $200,000 in tuition. It spent two years recovering its reputation. EMPHASIZE CONSISTENCY AND QUALITY OVER COHORT SIZE. Another program has completely abandoned cohorts. Instead, it allows students to matriculate at any point dur- ing the year, in an attempt to compensate for low enroll- ment. This program is likely to suffer in the long term, as candidates and the market realize that the non-cohort model offers substantially less educational value. Demand for management education may be high in China. But that supply-demand ratio, which looks so prom- ising to wide-eyed multinationals, is not a "promised land" for all business programs. Only new programs that take a measured approach and offer a demonstrable ROI will succeed in China. Ilan Alon is the Jennifer J. Petters Chair of International Business and executive director of the Rollins-China Center at the Crummer Graduate School of Business at Rollins College in Winter Park, Florida. John D. Van Fleet is a senior advisor at Shanghai Jiao Tong University's Antai College of Economics and Management in Shanghai, China, and the former director of a joint-venture MBA program in China. BizEd MAY/JUNE 2008 41 STRATEGY NO. 5—Joint Programs. Approximately 50 non- Chinese institutions already offer MBAs in China, in conjunc- tion with local universities. Schools that would like to intro- duce new MBA programs to the market face four primary risks. First, Chinese law requires incoming institutions to partner with local universities to launch new MBA programs. The risks of such joint partnerships go beyond the financial and legal— they can possibly affect a school's reputation and brand. Second, unless programs have clear value propositions that distinguish them from the crowd, schools could invest mas- sive resources to attract very few students. Third, it is more difficult to maintain a program of high quality, worthy of a school's brand, from a distance. In all cases, schools should allocate more time, money, and faculty than they think they will need. Finally, it is difficult to set tuition rates that fit the market and support the school's efforts. Most institutions that launch programs in China don't aim to make substantial profits, but most must at least cover their costs. Otherwise, they tax their home programs too greatly. To minimize the risk, schools must create a plan that encourages minimal faculty turnover while increasing enroll- ments over time. Once a program is established, a school can increase its staying power by establishing follow-up initia- tives that include publishing new cases, conducting China- based research, and establishing nondegree programs. A Market to Watch Whether a business school chooses to adopt one or more of the five strategies above or opts to stay out of the fray, there's no doubt that China is a market to watch closely. It's a region with incredible ramifications for global business— and for business education. Perhaps the most important thing for business admin- istrators and faculty to remember: The best way to engage with China's exciting market is to plan well and build steadily. For most schools, the greatest chance for success comes with incremental development, rather than big- plunge initiatives. Schools that take the time to cement their relationships with institutional and industry partners place themselves in a much stronger position to grow right along with China's burgeoning economy. ■ z