The Business of University

My University has yesterday announced itself as the sixth in the UK to charge the full student fees amount of £9000 (http://tinyurl.com/5rljxy3). I would prefer to skirt around the contentious protests and heated arguments over the 'indignity' of the Browne review and subsequent breaching of the existing £~3000 covenant. Much has been said, written, and thrown off buildings about that topic already.

Instead it got me thinking about the emerging Business of University. I think we are witnessing a realisation of a now long established trend in Universities unveiling their murky guise as a commercial organisation much like any other. There is the prevalent sentiment amongst students that the charitable status of a University or the duty of care optionally extended to students means that they only have our best interests at heart and that we are safe. To a degree (pun intended) that is true. Universities do want to nurture students and provide them with a quality education, but I would argue that when you get down to it their intentions extend little beyond the caring behaviour of a commercial organisation looking after its customers. With the new fees systems this truth will become even more evident in the way in which students demand value for money.

This isn't necessarily a bad thing. By any model of Business competition this kind of situation (should) drive up standards and force providers to take a long hard look at what they are offering. A new market will emerge but those potential undergraduates creeping onto the field will need to have their wits about them as the University market just veered firmly towards the Phones4u model. Marketing departments will be going into overdrive, University Councils will be drawing up strategic plans, and student recruitment departments are going to need a few new phone lines and a lot more coffee. There are going to be battles fought, but not of the fire extinguisher chucking variety this time. Instead the battles are going to be pitched over the best students and the perceived best Universities. Whilst these battles are not necessarily new, a gradient of fees undoubtedly raises the stakes.

I am sure it will disappoint some that University can no longer be seen as a throw away exercise. Bank of Mum and Dad or trust funds are unlikely to shell out thrice the cash for tuition if the students heart isn't really in it. University is no longer a jolly in the financial sense, but that doesn't mean the party is over. Those who have solid reasons for their course choice and their selection of Academic institution will be fine. With more lenient repayment thresholds and a Universities scrabbling to improve their offerings things could be a lot worse.

Its a buyer's market ladies and gentlemen, the buyer just needs to beware.