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This article considers strategic planning in UK higher education in the "new university" and colleges sector. The reason for concentrating on these institutions rather than the traditional universities, relates to the Education Reform Act 1988 which brought about a number of radical changes in the structure and funding of what was then the polytechnic and college sector. Such institutions now operate within a much greater competitive context than hitherto. As a result, they need to incorporate a greater market orientation into their strategic planning process to acquire a competitive advantage over their rivals. To which market(s) they should address themselves, however, is a complex issue.
Exploratory research was undertaken to assess the degree to which these higher education institutions are aware of the complexity of the student's role and whether this complexity is considered in the development of an institution's mission statement. In doing this, the authors attempt to assess the degree to which institutions display an awareness of the various types of customer that need to be taken into consideration when formulating their strategic plans.
The Changing Higher Education Environment
From their inception, polytechnics were seen to have a greater vocational role than that of universities and this distinctly vocational emphasis has been pursued by both Labour and Conservative governments over the past two decades. However, the Education Reform Act 1988 more specifically formalized the links between these educational establishments and the business community. This Act brought about a change in the structure and funding of these institutions with organizations becoming corporate bodies acquiring a degree of funding from a new central body--the Polytechnic and College Funding Council (PCFC). They were also encouraged to seek other external sources of funds from both industry and commerce.
Institutions, therefore, had to compete for funds from both public and private sectors and also compete for potential students. In order to survive, competitive strategies had to be formulated which satisfied the needs of potential customers. In other words, this sector of higher education needed to become more market oriented.
The Role of the Mission Statement in the Strategic Planning Process
At the corporate level, organizations need to consider the reasons for their existence and how they intend to achieve their objectives over a specific period of time. At...