EC to expand US operation
The EC Group is planning to open between five and seven schools in the US within the next two years, with one to be opened in the coming weeks, the latest expansion in a process that started in 2001. This means that the group has grown from teaching...
The EC Group is planning to open between five and seven schools in the US within the next two years, with one to be opened in the coming weeks, the latest expansion in a process that started in 2001.
This means that the group has grown from teaching 1,000 students a year in Malta to over 22,000.
Group chief executive officer Andrew Mangion said that the group, established in 1991, had originally tried to grow through strategic alliances.
"Through a strategic alliance the school benefits from the EC sales and marketing team while EC grows rapidly without capital expenditure. But if you are creating an international brand, then you have to ensure that the core values of the school are the same as those of EC. You have to ensure quality control - which is one reason why franchising is also challenging," he said.
"You have to have a rock solid base with considerable international experience and everything has to be encapsulated in manuals for the franchisee. And then, of course, you have to enforce the standards. There are quite a few EFL franchises but not all of them are successful."
EC tried two strategic alliances - one in Gozo and one in Cambridge - but by the following year, the group already knew that it wanted a better model. The answer was acquisition. It bought a school in Brighton and soon learned that managing change required quite an aggressive push at the outset. EC also underestimated the agents' readiness to extend their support of EC Malta to EC overseas. However, over time the agents were won over and by the second year it was operating profitably. The acquisition of a school in Cambridge in 2004 was smoother.
"We hit the ground running, The transition to the EC brand was much more seamless," Mr Mangion said.
A school in London was added to the portfolio the following year and economies of scale started to kick in, with all the back office and sales staff based in Malta for the whole network.
"Agents were really excited about the whole thing by now and were badgering us to tell them where we were going to open the next school," he recalled.
They probably never imagined that it would be South Africa.
"One of our staff members in Cambridge was South African and he wrote a report on the potential down there. I eventually went there myself and as soon as I landed, I said to myself, 'Definitely!'," he said.
"The opportunities are marvellous. Malta is forecasting around 240,000 student weeks for 2008; Cape Town only handles 60,000. South Africa is where we were 15 years ago in terms of English-language teaching. And the cost of the flight taken over a long study period is not that much more than studying in Europe, especially if you consider non-European students." The latest foray for EC was into the US, with a school in Boston opened last November. Agents responded enthusiastically. Getting visas is gradually getting easier, flight connections are cheaper than ever and the weak dollar makes the tuition and accommodation extremely competitive.
"We are so proud that a Maltese company can create a global brand," Mr Mangion said.
One of EC's core values is cultural diversity, a value that could refer to both the 60 or so countries from where its students come and the 22 nationalities that work for the group.
"The group offers great career paths and wonderful travel opportunities," he said.
For English-language schools, it is important to even out the seasonality inherent in a market dominated by school-age children who come over to study during their summer holidays. This is done by offering courses to adults as well as to people from the Southern Hemisphere, who come to Europe in our winter. EC is managing this quite successfully.
Still, in summer the 250-strong workforce balloons to 750. In Malta, the influx of students has proved to be a bit overwhelming in Paceville and its surroundings and Mr Mangion, who was last week elected as the president of the Federation of English Language Teaching Organisations Malta, will no doubt have this at the top of his agenda.
EC worried about the mix of juniors and nightlife early on and since 2002 has organised all its night activities outside Paceville, at venues where no alcohol is sold.
But Mr Mangion is also concerned by what he described as the "tirade" against EFL students, who generate such important revenue and so many jobs for the island.
"There has been too much said against EFL and some of it was slightly unfair," he said.
His lobbying efforts will not be limited to Malta, however. The expansion into the US means that he will encourage the Maltese authorities to push for the long-awaited double taxation agreement.
"This is already affecting us and will do so increasingly as we open more schools," he said.
This means that the group has grown from teaching 1,000 students a year in Malta to over 22,000.
Group chief executive officer Andrew Mangion said that the group, established in 1991, had originally tried to grow through strategic alliances.
"Through a strategic alliance the school benefits from the EC sales and marketing team while EC grows rapidly without capital expenditure. But if you are creating an international brand, then you have to ensure that the core values of the school are the same as those of EC. You have to ensure quality control - which is one reason why franchising is also challenging," he said.
"You have to have a rock solid base with considerable international experience and everything has to be encapsulated in manuals for the franchisee. And then, of course, you have to enforce the standards. There are quite a few EFL franchises but not all of them are successful."
EC tried two strategic alliances - one in Gozo and one in Cambridge - but by the following year, the group already knew that it wanted a better model. The answer was acquisition. It bought a school in Brighton and soon learned that managing change required quite an aggressive push at the outset. EC also underestimated the agents' readiness to extend their support of EC Malta to EC overseas. However, over time the agents were won over and by the second year it was operating profitably. The acquisition of a school in Cambridge in 2004 was smoother.
"We hit the ground running, The transition to the EC brand was much more seamless," Mr Mangion said.
A school in London was added to the portfolio the following year and economies of scale started to kick in, with all the back office and sales staff based in Malta for the whole network.
"Agents were really excited about the whole thing by now and were badgering us to tell them where we were going to open the next school," he recalled.
They probably never imagined that it would be South Africa.
"One of our staff members in Cambridge was South African and he wrote a report on the potential down there. I eventually went there myself and as soon as I landed, I said to myself, 'Definitely!'," he said.
"The opportunities are marvellous. Malta is forecasting around 240,000 student weeks for 2008; Cape Town only handles 60,000. South Africa is where we were 15 years ago in terms of English-language teaching. And the cost of the flight taken over a long study period is not that much more than studying in Europe, especially if you consider non-European students." The latest foray for EC was into the US, with a school in Boston opened last November. Agents responded enthusiastically. Getting visas is gradually getting easier, flight connections are cheaper than ever and the weak dollar makes the tuition and accommodation extremely competitive.
"We are so proud that a Maltese company can create a global brand," Mr Mangion said.
One of EC's core values is cultural diversity, a value that could refer to both the 60 or so countries from where its students come and the 22 nationalities that work for the group.
"The group offers great career paths and wonderful travel opportunities," he said.
For English-language schools, it is important to even out the seasonality inherent in a market dominated by school-age children who come over to study during their summer holidays. This is done by offering courses to adults as well as to people from the Southern Hemisphere, who come to Europe in our winter. EC is managing this quite successfully.
Still, in summer the 250-strong workforce balloons to 750. In Malta, the influx of students has proved to be a bit overwhelming in Paceville and its surroundings and Mr Mangion, who was last week elected as the president of the Federation of English Language Teaching Organisations Malta, will no doubt have this at the top of his agenda.
EC worried about the mix of juniors and nightlife early on and since 2002 has organised all its night activities outside Paceville, at venues where no alcohol is sold.
But Mr Mangion is also concerned by what he described as the "tirade" against EFL students, who generate such important revenue and so many jobs for the island.
"There has been too much said against EFL and some of it was slightly unfair," he said.
His lobbying efforts will not be limited to Malta, however. The expansion into the US means that he will encourage the Maltese authorities to push for the long-awaited double taxation agreement.
"This is already affecting us and will do so increasingly as we open more schools," he said.