does size matter - marketing strategies - oecd › education › imhe › 41058074.pdf · does size...

Does size matter - Marketing strategies Higher education in a small country

A NUS, NUAS, IMHE conference in cooperation with the University of Iceland, June 4-7, 2008

Dr. Ingjaldur Hannibalsson, Professor, Faculty of Economics and Business Administration, University of Iceland

6. júní 2008 Does size matter? 2

An overview• Iceland’s system of higher education• Marketing strategy• International competitiveness of a nation• What is a good University?• Shanghai Jiao Tong University’s and Times

Higher Education – QS’ World Universityranking of universities

• Rankings of small universities


The University of Iceland and Iceland

• The University of Iceland is a state university, founded in 1911

• The University of Iceland is a leader among Icelandic universities

• The University of Iceland offers opportunities for study and research in almost 400 degree programs

• At the beginning of the 20th. century Iceland was one of Europe’s poorest countries.

• In 2007 Iceland’s GNP per capita was 37.862 USD (ppp)

The University of Iceland

• 1911-1970 An institution educating professionals, (doctors, lawyers, ministers, teachers)

• 1970-1995 A large number of undergraduate programs started

• 1995-2005 A large number of master level programs started

• 2006- An emphasis on doctoral programs



Limitations of the University of Iceland

• The University of Iceland is state funded and is only allowed to charge students a registration fee.

• It is not allowed to charge a tuition fee like many of the world’s most prestigious universities.

• Traditionally the University of Iceland has accepted all applicants with a high school diploma and given them the chance of studying at a university.

• Only in the departments of odontology and nursing has there been a limited number of study places and students wanting to study medicine have had to take an entrance examination as the number of study places in medicin has been limited.

Iceland’s system of higher education


The marketing strategy 1911-2006

• 1911-2000 NO STRATEGY, (Very little competition, accept all applicants)

• 2000-2006 Emphasis on master programs, (Increased competition, number of students increasing, “private” universities start advertizing)


The marketing strategy 2006-

• A new strategy with a vision (top 100)• Emphasis on master and doctoral programs• Grants for outstanding students at all levels• Improved quality in all areas• An improved organization• More emphasis on marketing and public

relations• Improved facilities, a Science Park


The stragegy of the Faculty of Economics and Business Administration

• A marketing manager• Emphasis on continuing education• MBA• BS in business at night• Evening programs in service

management, marketing management and management of change

• Short courses for managers 6. júní 2008 Does size matter? 9

Vígsla 1. Desember 2007

Tillaga að deiliskipulagi háskólalóðar vestan Suðurgötu27. maí 2004

Teiknistofa arkitekta Gylfi Guðjónsson og félagar ehf

Economy of scale in HE

• Ideal class size 30-60• It is possible to provide the same standard

of service in larger classes (>300) but the cost is the same

• High quality distant learning is more expensive than high quality local learning

• In research economy of scale exists6. júní 2008 Does size matter? 20

Obligations of universities

• National – regional – local• Contributing to the prosperity of society

• Global – international• Contributing to the scientific community



International competitiveness of a nation

• The 2007 IMD report on international competitiveness shows the U.S. on top with Singapore, Hong Kong and Luxembourg lagging slightly behind

• In 2007 Iceland ranked 7 while ranking 4 in 2006


International competitiveness of a nation• According to Michael Porter Iceland ranked 13th.

On the Business Competitiveness Index in 2006• Telephone/fax infrastructure quality and quality of

electricity supply were in first place.• The quality of public schools ranked fifth among 121

countries• The quality of management schools ranked 11• The financial market sophistication ranked 14• Access to the local equity market ranked 15


International competitiveness of a nation• Iceland’s overall doing business rank of 12 out of

175 countries• Iceland tops the Scandinavian countries as well as

the United States for the effectiveness of public spending

• Iceland ranks 1 for it’s low cost of corruption• Iceland ranks 5 for the efficacy of corporate boards• Iceland ranks 6 for the decentralization of economic

policymaking• Iceland ranks 9 of intellectual property protection• Iceland ranks 10 when it comes to favoritism in

decisions of government officials


International competitiveness of a nation

• Iceland has one of the highest life expectancy at birth, 79 years for males and 83 years for females.

• Infant mortality is 2 infants per 1000 life births compared to 3 in Japan and 7 in the United States

• During the 20th century graduates from the University of Iceland have developed a sound educational system, an excellent health care system, a fair justice system, a good business environment and generally a progressive society that is the envy of most other countries of the world.


What is a good university?• The one that admits only a very low percentage

of applicants which are so qualified that they will graduate no matter what education they receive

• The one that accepts every applicant, gets them through the educational programs and provides society with candidates who become useful citizens building up a nation


Shanghai Jiao Tong University’s ranking of universities

• Alumni and staff winning Nobel Prizes and Fields Medals (10%/20%)

• Highly cited researchers (20%)• Articles published in Nature and Science

(20%)• Articles indexed in major citation indices

(20%)• Per capita academic performance of an

institution (10%).

Times Higher Education – QS’ World University Rankings

• Peer review, 40 %• Citations per faculty, 20%• Employer review, 10%• % of international faculty, 5%• % of international students, 5%• Staff/student ratio, 20%


Times ranking vs. Shanghai ranking (correlation 0,55)


0.0

50.0

100.0

150.0

200.0

250.0

1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97 103

109

115

121

127

133

139

145

151

157

163

169

175

181

187

193

Times World Rank

Times World Rank

Linear (Times World Rank)

What is a good university?

It depends on what is measured


Size vs. Shanghai ranking, correlation -0,15


0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97 103

109

115

121

127

133

139

145

151

157

163

169

175

181

187

193

Number of students in FTE


Linear (Number of students in FTE)

Size vs. Times ranking, correlation +0,15


0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

1 8 15 22 29 36 43 50 57 64 71 78 85 92 99 106

113

120

127

134

141

148

155

162

169

176

183

190



Linear (Number of students in FTE)

The rankings of small universities


Small Universities can rank high, how?

• Select students, only admit a low % of applicants

• Be active in research• Hire international faculty• Admit international students• Work closely with future employers of

graduates


What to do?

• The University of Iceland has to continue to be a comprehensive university in order to serve Icelandic society

• The University of Iceland has to specialize in a few narrow areas in order to comtribute to the scientific community



Thank you

does size matter - marketing strategies - oecd › education › imhe › 41058074.pdf · does size...

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