Read the short case below and answer all the questions below.

Kingswells EduGroup Ltd may not be the biggest private education service provider in Malaysia but it took the lead to become the country's first education company to be listed on the Hong Kong Exchanges and Clearing Ltd (HKEX) last month.

The market potential in the mid-range segment is huge, especially after the government liberalized international schools about a decade ago. About 50 to 60 years ago, only expatriates and those who worked in embassies could send their children there. In 2009, the rules were relaxed, and international schools were allowed to enroll Malaysians. But even then, there was a 40% enrolment cap for local students until the quota was removed in 2012. The timing is just right for Kingswells International School (KIS), which recorded its first student intake in September 2011.

A report by Frost & Sullivan shows that based on average annual tuition fees, international schools in Malaysia can be divided into three segments high-end (RM40,000 and above), mid-range (RM20,000 to RM40,000) and low-end (below RM20,000). The average tuition fee at KIS falls in the mid-range. Today, there are close to 1,000 students in our school, which offers courses ranging from nursery to A-levels, based on the curriculum developed by the University of Cambridge International Examinations and National Curriculum for England. This is the main income stream, KIS main core business.

According to Frost & Sullivan, in 2016, in terms of student enrolment, KIS ranked 29th out of 116 international schools in Malaysia and 13th out of 37 in Selangor. The school recorded a International Marketing MKT60704 Dr. Hong Kay Tze 202003FE 8 steady increase in student enrolment over the past five years, growing at a compound annual growth rate of 19.4%. Kingswells also provides tertiary education programmes through Kingswells tertiary institutions, which comprise Kingswells Skills College, Kingswells Professional Centre and Kingswells College.

Kingswells aims to venture into new markets by setting up schools in other parts of Asia, including China, Hong Kong, India, Vietnam and Cambodia. Ideally, it would be great if we can set up universities in these countries. But first, we need to find local partners. We also must look at individual opportunities as well as the land ownership. As a Hong Kong-listed firm, it is easier for other education groups to consider a collaboration with Kingswells. Potential partners would want to look at our financial capability, the number of students and how trustworthy we are. If you are listed in Hong Kong, all that would have already been vetted by HKEX. The listing also gives Kingswells a firm footing to expand into the China market. China is another huge option for us. But to seek collaboration in China, it will take some time and a little bit of work. Hong Kong is also a possibility. Obviously, the demand for international schools there is very high. That is where we are heading.

For the financial year ended June 30, 2017 (FY2017), Kingswells saw its revenue increase 58.3% year on year to RM29.8 million. Group profit jumped more than threefold to RM11.3 million. KIS contributed close to 90% to Kingswells's total revenue in FY2017 while Kingswells tertiary institutions made up the remaining 10%. Kingswells hopes to maintain its strong growth momentum and to move to the Main Board of HKEX within two years. Kingswells's strategy is to monitor the source countries for foreign students so it can move into those markets. "Currently, Koreans make up the highest number of foreign students. But to set up a school in South Korea is expensive. We need to understand the culture, the situation and the education system of the countries concerned.

Questions:

(a) It is important for companies to study and understand the cultures of the countries in which they will be doing business and they must incorporate this understanding into the marketing planning process. How do the cultures for these countries (i.e. China, Hong Kong, India, Vietnam, Cambodia and South Korea) differ from Malaysian culture? How can Kingswells use these differences to plan their marketing activities globally? Using High and Low Context Cultures and Hofstede's Culture Theory, explain and illustrate your answers with examples. (20 marks)

(b) Kingswells wish to venture into new markets by setting up schools in other parts of Asia, including China, Hong Kong, India, Vietnam and Cambodia. Suggest any TWO (2) strategies Kingswells can use to enter these potential markets. Provide ONE (1) advantage of each selected strategy chosen. Support and justify your answers based on the case by applying concepts or theories learned. (10 marks)