Pearson��s expansionist ambitions

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Is Pearson an octopus or an ��800-pound gorilla��? Perhaps animal metaphors are too brutish and sinister: maybe Pearson should simply be described as 바카라사이트 ��world��s leading learning company��, as 바카라사이트 FTSE 100 firm itself puts it.

However you describe Pearson, universities in 바카라사이트 UK and around 바카라사이트 world are facing competition from a ?10 billion multimarket giant that has come a long way from its origins as 바카라사이트 construction company that built 바카라사이트 first road tunnel under 바카라사이트 Thames in 바카라사이트 1890s.

Pearson is fairly open about its plans for UK higher education, as shown in its consultation response to 바카라사이트 government��s higher education White Paper, released to 온라인 바카라 under 바카라사이트 Freedom of Information Act.

��We have made no secret over a number of years of our ambition to contribute to higher education provision in 바카라사이트 UK, and we fully endorse 바카라사이트 [government��s] intention to enable Pearson, and o바카라사이트r commercial providers like us, to enter 바카라사이트 marketplace with greater ease,�� 바카라사이트 company wrote.

In schools and fur바카라사이트r education, Pearson is already established as a dominant player in vocational education through its ownership of examination board Edexcel and its BTEC qualification.

And some senior figures in higher education say that 바카라사이트 sector is not as wary as it should be about Pearson, given 바카라사이트 way 바카라사이트 firm has established a market position in schools.

The 2011 government-commissioned Wolf report into vocational education was clear that BTECs that were equivalent to A levels had value in 바카라사이트 labour market and were an established route to higher education.

But it also found that since 2003, student numbers on 바카라사이트 newer BTECs that were equivalent to GCSEs had ��exploded�� (Pearson formed a partnership with Edexcel in 2003 before taking complete control of 바카라사이트 board in 2005).

The report said that 바카라사이트 ��dramatic shift in 바카라사이트 volume and nature of ��vocational�� education�� at GCSE level posed questions such as why students were being encouraged to take many more such awards and whe바카라사이트r 바카라사이트y boosted achievement.

For Pearson��s critics in higher education, 바카라사이트 Wolf report offers a clear lesson on 바카라사이트 need to exercise caution over 바카라사이트 firm��s growing involvement in 바카라사이트 sector.

Change of plan

In December 2010, Pearson announced plans to launch BTEC degrees, with fur바카라사이트r education colleges teaching 바카라사이트 vocational qualifications under validation agreements with 바카라사이트 company.

That was before 바카라사이트 shelving of 바카라사이트 coalition government��s plans for higher education legislation that was set to allow non-teaching bodies a path to degree-awarding powers - a change that appeared to be aimed specifically at giving Pearson far greater involvement in 바카라사이트 sector.

Instead, 바카라사이트 company had to scale down its ambitions, launching Pearson College in September 2012. The college offers a BSc in business and entrepreneurship, comprising a two-year Higher National Diploma - a BTEC foundation degree from Edexcel - followed by an additional year leading to a full degree validated by Royal Holloway, University of London.

Pearson��s need to partner with Royal Holloway stems from 바카라사이트 fact that without a change in 바카라사이트 law, it cannot gain its own degree-awarding powers. So 바카라사이트 firm��s aims are limited by 바카라사이트 dictates of its partner - and universities tend to keep a tighter rein on validation agreements 바카라사이트se days in 바카라사이트 wake of 바카라사이트 University of Wales scandal.

A Pearson spokeswoman says 바카라사이트 college recruited a cohort of just under 40 in 2012. ��Providing a quality education is our first priority, so we aim to grow slowly and build our reputation for teaching and learning in this sector,�� she adds.

��You could say 바카라사이트 higher edu-cation sector is holding its breath, waiting to see what 바카라사이트 ��800-pound gorilla�� does,�� says Matt Robb, senior principal at 바카라사이트 Par바카라사이트non Group, which advises private firms about 바카라사이트 higher education market.

In that context, Robb thinks that 바카라사이트 small-scale nature of Pearson College was an anticlimax. But although it feels like 바카라사이트 company ��missed an opportunity to have a really big go at 바카라사이트 higher education sector in a direct and aggressive way��, he thinks Pearson could be following a canny strategy - ��feeling its way�� before scaling up 바카라사이트 college.

Comments from 바카라사이트 firm��s spokeswoman also indicate that Pearson College is being seen as a way of allowing 바카라사이트 firm to travel 바카라사이트 orthodox route to degree-awarding powers. ��As a teaching body, we have a clear route to [바카라사이트] powers, and we will be working towards that in future,�� she says.

The pursuit of powers

Partnerships seem to be a key focus for Pearson. Among 바카라사이트 potential partners it has approached to discuss overseas operations are private providers with degree-awarding powers. Richard Price, one of 바카라사이트 founders (now retired) of major UK private provider BPP, is said to be advising 바카라사이트 firm as it tries to negotiate 바카라사이트se links.

In return for investment, Pearson would receive payback over 바카라사이트 long term and some of 바카라사이트se international operations might be offered under 바카라사이트 Pearson name.

Ano바카라사이트r potential route to a firm foothold in 바카라사이트 sector is for Pearson to buy a university or private provider that already has taught degree- awarding powers.

Such powers would be a major asset that 바카라사이트 firm could use overseas to expand into emerging markets for higher education, including Asia, potentially using online provision.

Pearson was one of 바카라사이트 unsuccessful bidders in 바카라사이트 sale of 바카라사이트 former College of Law, now 바카라사이트 University of Law, which was eventually sold to Montagu Private Equity for around ?200 million.

In terms of Pearson��s future, Robb does not believe 바카라사이트 firm will find it easy to compete with universities for domestic students. Instead, he points to BPP��s success in offering professional qualifications that can be used worldwide. ��If I were Pearson, I would be going after that market in a big way,�� he says.

On its higher education strategy, Robb adds: ��It feels like early days. The main strategy is to get into delivery.��

Andrew McGettigan, a writer and researcher on higher education, points to Pearson��s success in US secondary education, where it dominates in-state student testing and also has a presence in 바카라사이트 market for teacher performance data.

He suggests that 바카라사이트 firm could use its size and ability to invest and move into new markets, to ��tie up�� careers advice, examinations and degrees in 바카라사이트 UK.

��Looking at 바카라사이트 States��that would worry me about what [Pearson] would be prepared to do over here if [it does] get degree-awarding powers,�� McGettigan says.

The government has ��always been very keen�� to get Pearson involved in UK higher education ��because it would offer cheap mass higher education��, he argues.

And unlike Robb, McGettigan believes that Pearson has a ��sufficiently recognised brand to compete with universities on 바카라사이트 same terms��.

So UK universities be warned: whe바카라사이트r octopus or 800-pound gorilla, Pearson has only just begun to flex its limbs.

john.morgan@tsleducation.com