Strategic Challenges for Icelandic Universities

Strategic Challenges for Icelandic Universities
in a Global Marketplace

H. Gestsson

University of Akureyri, Iceland

Author:

Helgi Gestsson is the director of the Icelandic Tourism Research Centre and an assistant professor at the faculty of Management and Business Administration at the University of Akureyri, Iceland.

There has been an enormous change in the environment of the Icelandic universities in the past decade. The establishment of new public universities, the authorisation and establishment of private universities, the offers of new tertiary educational opportunities and an almost exponential increase in the number of students has, along with performance agreements between the state and the universities totally changed the stable environment of the Icelandic Academia. The Icelandic universities are now finding themselves competing for students in a market environment similar to the competition between profit-driven businesses. The marketing effort and strategy of the Icelandic universities is now focused on trying to differentiate their programmes from their competitors and to create a positive image in the mind of their previous, current and potential students.

Through a proactive design of courses and programmes the university teacher must envision and build on the needs of the future. For this to happen both research and wisdom have to compliment a performance of teaching.For the Icelandic universities to fulfil their claim of excellence a set of solid measures has to be found that builds on the enablers of quality performance. These measures have to be driven both by operational excellence and quality.

A new way of strategic thought is necessary for the universities in the global marketplace. Through a strategic process that is based on a profit-driven prescriptive strategy, faculties can be seen as strategic business units under the corporate umbrella of the University. The objective in a profit-driven corporation is to increase its long term shareholders profits. For a non profit-driven university the long term view is a unique mix of investment in financial, social, human and cultural capital. Based on this a faculty’s position in a matrix made up of the faculties attractiveness for the university and their competitive strengths related to competing faculties can be used for allocating universityresources.