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    International

    Strategy

    Re-inventing HEC-ULg

    BOUCHAT Maxime

    DEOLIVEIRALEITE Rafael

    HAJJAJI Clia

    NDUWAYO Jean-Claude

    RABHIOU AbdelTHERASSE Maxime

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    Table of contents

    Table of contents ...................................................................................................... 2

    1. Strategic Position of HEC-ULg ............................................................................. 3

    External Analysis .............................................................................................................. 3

    PESTEL Analysis ..................................................................................................................... 3

    Internal Analysis .............................................................................................................. 4

    SWOT Analysis ................................................................................................................. 5

    2. Reconsider the Mission / Vision, Goals and Objectives of the School within the

    University of Liege .................................................................................................... 7

    Mission reconsidered ....................................................................................................... 7

    Key factors of change & success ....................................................................................... 8Reconsidered Vision ......................................................................................................... 9

    3. Design and propose a strategic segmentation (the portfolio of Strategic Business

    Units) of HEC-Ulg .................................................................................................... 10

    Strategic Business Units ................................................................................................. 10

    4. The strategy ....................................................................................................... 12

    5. Actions to implement ......................................................................................... 13

    6. Appendix ............................................................................................................ 15

    Appendix 1 : Porters Five Forces .................................................................................... 15Appendix 2: Porters Value Chain ................................................................................... 18

    Appendix 3: Strategic Business Units .............................................................................. 21

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    1. Strategic Position of HEC-ULgExternal Analysis

    We can easily understand the strategic position of HEC-ULg through its external

    environment that is why we first made up the PESTEL analysis. For a better

    understanding it is also advised to consider the Porter's Five Forces Model (appendix 1)

    in order to detect all threats, power and rivalry on the market.

    PESTEL Analysis

    Political:

    Here there is an international influence. The Belgium as other countries hassigned the Bolognas declaration. The Bolognas process has an objective to

    ensure comparability in standards and quality of higher education

    qualifications. This has created the European Higher Education Area and the

    ECBE (European Council for Business Education)

    Harmonization of the education system which have an impact of programdesign, students and teachers mobility and quality assurance throughout EU

    member states and in other European countries

    Other national policies for increasing competition among universities Public policy aspirations to place Belgium as a global centre of innovation in

    knowledge for promoting the economy

    Other common programs: Lifelong learning program, ERASMUS program andEducation and culture

    Economic:

    Financial crisis, slower economic growth and mounting pressure onGovernment budgets are the dangers of the development of the education

    system.

    Social:

    The up to date tendency to prepare the new generation of leaders for anetworked globalised society: value creation and service to society to integrate

    humanism into management education

    The increasing ofunemployment rate discourage the younger to follow highstudies

    Numerous partnerships with worldwide companies and universities andgrowing internationalization of its programs and faculty

    The tendency of young people to not follow universities program

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    Declining in birth rate reflecting the actual national trendsTechnological:

    Development of the new information technologies and communication (digitallifestyle)

    Increasing degree of research and development by introducing some courses asresearch-to-practice seminars

    Environmental:

    Transformation of management education to enable business managers andleaders to make a relevant contribution to resolving the worlds environmental

    challenges (the education of corporate social responsibility, environmental

    sustainability, social entrepreneurship and community involvement)

    Legal:

    The obligation of having European ECTS label for the assessment of studyperformance

    The recognition of levels by adopting a system of easily identifiable andcomparable level

    Immigration legislation that facilitate foreign students to follow studies inBelgium.

    Internal Analysis

    The internal analysis of HEC-ULg Management School affords us also to understand the

    strategic position of the school. Through the Porter's chain value (appendix 2) we can

    see the primary and support activities of HEC-ULg and so have a better understanding

    of the strengths and weaknesses of the school that can be found in the next point with

    the SWOT analysis.

    The SWOT analysis is a good way to represent this external (opportunities and threats)

    and internal (strengths and weaknesses) analysis of the management school.

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    SWOT Analysis

    Strengths Weaknesses

    Education in English since the first year andclasses given in English from the third year.

    Internship in 5th

    year with the opportunity to

    realize a Project-Thesis.

    Good reputation Alumni network high-developed Good international network with Erasmus

    students and partnerships with many

    internationals universities

    Good student folk to attract new students andget some practical experience though many

    students associations and interest groups.

    EPAS accreditation Strong international delegation Soft skills development through portfolios Many partnerships with local and national

    companies

    Many researchers Double degree in law and HEC Internet platform, which allow an easy

    communication with students.

    Good location nearby city center and studenthousing

    Crossroad with Brussels, Paris, Maastricht butalso the Germany.

    HEC Ulg is based in Lige, whichisnt really internationally famous as

    Brussels for instance.

    No master in digital area Very few native speakers among the

    professors

    Too many theoretical courses inbachelor, not enough practical

    Not enough relationships with thealumni network

    Imperfect Erasmus student ranking Not enough study rooms HEC-Ulg is not in the ranking of the

    European business schools whereas

    other Belgian schools are in.

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    Opportunities Threats

    More national and international partnershipswith companies and universities

    Becoming an important business school at thelevel of Europe and be part of his intern

    development

    EPAS accreditation extended to engineeringdegree and doctorate.

    Administration fees very low in Belgium(increase attractiveness)

    Less autonomy (financial and/oroperational) from the ULg

    Less subsidies from the Wallonia Other business schools in Belgium

    and abroad

    Financial crisis: business studies in 3years (for instance Sainte Marie in

    Lige) are more affordable.

    Sart-Tilman campus. Too far fromthe center. Not easy to deal with

    the schedules.

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    2. Reconsider the Mission / Vision, Goals and Objectives of the

    School within the University of Liege

    Mission reconsidered

    According to the fact that the mission statement includes, within the statement, the

    organization reason for existing but also the ways used by the organization that will

    allow it to reach its purposes, we can highlight some key elements that drive the whole

    organizational strategy. After that, we will be able to discuss their relevancy.

    First of all, HEC aims to train creative and responsiblemanagers and emphasizes on

    innovativestudent personal development practices. But, the university also values

    research with socio-economic impact or with a focus on pedagogical innovation.

    According to us, creativity and innovation seem to be essential for any business school.

    A mission has to be brief but the university could point out that there are different

    ways to reach these goals such as being a member of an association, participating to

    portfolio or even in applying for a master in entrepreneurship.

    In addition, speaking about responsibility, the school assumes the importance of

    commitment to society. A good way to engage in life is to develop soft skills and to be

    involved in projects. This appears in the declaration by these words true engagement

    in actions and real involvement and should be definitely kept.

    Then, the statement speaks about the future of businesses and organizations and

    thecross-cultural world. These words underline the importance of the international

    aspect within the strategy of the school and its awareness about the future.

    We think that the school should be a bit more precise about the term future.

    Nowadays, the world is in perpetual change and time is running out. One day, we

    speak about globalization as the best way to increase the well being of the population

    while the other day we will focus on local businesses as a solution to avoid

    environmental damages.

    For us, HEC has to be aware about all of these changes and trends. The future

    managers will have to deal with this complexity. Or, the starting point to deal with

    problems is to be informed about their causes. That is why we believe that our

    executive School has to be, at least, up to date with these trends and define itself has a

    flexible organization.

    We also wonder why the ethic dimension doesnt appear in the statement while

    sustainability has become a common word in our language.

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    The cross-cultural world matches with the following dimension: active proficiency in

    three languages. Today, we cannot imagine a manager that is not able to speak at

    least two languages including English. The School should keep this in the statement

    and, eventually, accentuate the importance of the language knowledge within the

    educational program or more globally in our world.

    The statement also mentions the peaks of excellence. This has to be kept. The school

    could mention that among these peaks of excellence, it exists specific peaks of

    excellence that are only given in HEC. As an example, this is the case with the Social

    Enterprise master.

    Finally, we appreciate the fact that HEC can think international as well as local: active

    in the regional economic development. The stakeholders have to be in the

    statement. But, HEC could show more interest for the need to build a network. Thisnetwork has to be as wide as possible but with close relations between the partners.

    Partners could include alumni; local companies as well as international companies,

    institutions and so on.

    Key factors of change & success

    KFS required: these allowed the company to survive in the industry

    - Courses and training courses programs given in order to educate managers andeconomists.

    KFS sufficient :these allowed the company to enhance the differentiation with the

    rivals

    - Alumni network developed.Accreditations (e.g.: EPAS)

    - Peaks of excellence- Students associations, interests groups- Spirit of the school- Practical training programs

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    Reconsidered Vision

    HEC ULg, as European Management School, wants to become a benchmark actor

    recognized and accredited for the high quality of its initial and continuous training, in

    Belgium and in all the neighboring trans-frontier regions, in Germany, the Netherlands,

    France and the Grand Duchy of Luxemburg.

    Its ambition is that its research teams should enjoy a very good spontaneous

    international reputation in its fields of excellence.

    It wants to reinforce its international and national partnerships in order to consolidate

    its positioning and to attract talent

    HEC-ULg also aims to become a central, reputed actor committed to European

    economic trans-regional development through transversal platforms.

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    3. Design and propose a strategic segmentation (the portfolio of

    Strategic Business Units) of HEC-Ulg

    Strategic Business Units

    A strategic business unit (SBU) is a part of an organization for which there is a distinct

    external market for goods or services that is different from another SBU.

    In the case of HEC-Ulg, we have first to define the demand side which is define as

    follows:

    - Regular students- Brigding Students- Erasmus- External students (out of hours)- PhD

    And the supply side is all the courses of studies provided by HEC-ULg. In the appendix

    3, the graphic shows the courses of studies for regular students, Erasmus, Brigding

    Students.

    Concerning the external students, HEC-ULg offers:

    - An Executive Degree in Financial Risk Management, specializing in Analysis,Control and Audit

    - An Executive Degree in Financial Risk Management, specializing in Finance- An Executive Master in Fiscal Law- A Master in Management Sciences with a specialist option in general

    management

    - Preparatory year for Master in Management Sciences (2 years) and a Master inManagement Sciences (60 credits - 1 year)

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    1. Master in engineering

    2. Master in entrepreneuship

    Protect position

    1. Master in social enterprises

    2. ERASMUS

    3. International students & peers

    Invest to build

    1. Doctoral programs (PhD)

    Build selectively

    Build selectively

    1. Bridging students

    2. Bachelor

    3. Master in management

    sciences

    Selectivity

    Limited expansion or harvest

    Invest/Grow Manage for earnings 1. MBA

    Invest / Grow Operate/DesinvestStatu quo

    High Medium Low

    Market position

    Attractivenessofthemarket

    Hig

    h

    Me

    diu

    m

    Low

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    4. The strategy

    HEC-ULg, as a business school, is evolving in a global world. Clearly, HEC wants to grow and

    to be a benchmark actor in term of high-quality study programs. But the School also wants

    to be recognized abroad for its excellence. The main strategic objectives for HEC are to develop its international side, invest to improve

    the quality of its peaks of excellence programs and enhance its reputation within the country

    as well as abroad. HEC knows that its institution is playing in a global place. Nearly thirtypercent of its graduated is working abroad. As a matter of fact, building an international

    network has been essential. That is why HEC works to build new partnerships in order to

    attract and exchanges students, teachers or talents. The School wants to be a modal in the educational sector. HEC is working to enter into

    different rankings (international or not) by applying to receive some accreditations. TheSchool also innovates and offers up-to-date studying programs. Then, HEC-ULg defends its spirit. HEC wants to build a strong community that strengthen its

    reputation. To sum up, here is the strategy of HEC-ULg:

    HEC-ULg wants to be one of the leaders on the education market. The school can be proud

    of its peaks of excellence and its desire to be more international. To lead in the market, the

    school will continue to maintain its actual network, build new partnerships, promote researchand exchange programs. Note that the School pays a particular attention to its reputation in

    order to attract talents within the organization.

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    5. Actions to implement

    The School is proud of its internationalization aspect but there is a lack of courses given in

    English. We deeply believe that some courses should be given in English in the early stage

    of the formation (1st bachelor). That is already the case in some business schools abroad

    and its a sign of excellence and awareness about the importance of English in trade.

    HEC executive School should also integrate courses related with the peaks of excellence

    within the bachelors programs. Indeed, as an example, some people decide to follow the

    financial analysis and the audit master without even knowing what audit really is.

    The Alumni network in Europe has not the same way to think than the American one.

    Indeed, the business schools in the U.S receive amounts of money from their old students

    (alumni). That is not common in Europe. If the school could change this, the university would

    be less dependent on the State.

    Concerning the master in management in social enterprises, the courses are not given in

    English (only one). Thats a pity. The school should promote this master because it

    accentuates the differentiation with the other business schools. Its also a sign of awareness

    about environmental and social considerations.

    The master in entrepreneurship has a good reputation, even abroad. But, nearly 5 students

    from HEC can access to this master each year. This is not enough. We think thatentrepreneurship is one of the peaks of excellence of the school but this peak is not

    developed enough.

    We also think that it could be great to give the opportunity to the students to have training

    during their bachelor years (in addition to the one they will have to achieve during their

    master years). The practical aspect is important. Normally, the bachelor is based on

    theoretical courses and the master on more practical works. A sign of change appears with

    the portfolios. They are a good idea to develop soft skill but work has still to be done

    because the workload and the attractiveness between them are too different to be really

    efficient.

    The School wants to be aware of its students. But the students would appreciate to have

    tools to express themselves. Indeed, according to the school, the students will be the

    managers of the future. But how can actually these managers propose and defend their

    ideas? Its not always easy to know whom we should contact if we have something

    important to say

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    In this section, we will present more concrete actions to enhance the international aspect.

    First of all, we have thought about a kind of patronage ( parrainage ) for all the erasmus

    and/or international students. The idea is to promote integration of our Erasmus students.

    This will enhance the cultural and language exchanges between the students. The system ofpatronage consists in assistance of an Erasmus or an international student during its trip. For

    example, the tasks could include : giving a lift from the airport to the town, visit of our

    town/school, present the associations and so on.

    The host student can be rewared by credits or by a mention on his diploma. This could be

    integrate in the portfolio program. In the last case, a selection of the candidates could be

    done to ensure that the motivation is encountered.

    But, to pursue this idea, we think that Erasmus students should not be able to pick up

    specific programs for erasmus students. They have to be considered as regular students

    during the whole time they spent in the university.Doing works with erasmus students force us to speak in english. That is something we dont

    usually do if we have the choice even if we consider english or an other language as

    something important.

    Second, the school could launch the possibility for foreign people to register and learn some

    courses online. This system exists in some school and is up-to-date. Once the platform

    developed, the cost by user is very low. This is a good way to extend the network of our

    students abroad without having to invest in facilities. E-learning could interest workers that

    doesnt have enough time to reach the university but that would like to extend theirknowledge at the same time. This could also be a basis to build a network with external

    professors. The idea is to promote exchanges between teachers between the universities.

    Online courses could be a kind of advert of the quality our teachers could provide.

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    6. Appendix

    Appendix 1: Porters Five Forces

    Threat of new entries:

    A new university or school in Belgium may be founded by three main players: the

    government, foundations or private educational groups. Given that the investment to set up

    a university is really huge and the European economy is dealing with a struggled situation

    that, in turn, has strongly impacted the economy of Liege, the risk of new entries in the

    Belgian educational market should not be considerable in the coming years, especially if the

    current situation get worst as the perspectives indicate. In other words, the economic crisis

    will likely avoid growth on the government investment in education and will reduce new

    private investments, given that a private company hardly will be interested in increasing the

    product offer in a low demand market.

    Threat of substitutes:

    Although investments in new universities and schools that apply the traditional ways of

    teaching will not likely be considerable as a threat in the coming years, the application of

    technology to spread out the knowledge in a cheap way has become a reality. Someprestigious universities like Yale, Harvard and MIT have already offered on the Internet some

    of their chairs for free, aiming at the increase of their worldwide reach. So many others

    universities have already changed its business model to provide only online-based courses at

    a less expensive cost and flexible way for the students. This trend may appear as a substitute

    to the traditional way of teaching on which HEC Management School is based so far and will

    make the competition global, given that a student may be able to attend an American MBA

    program, for example, wherever he or she is.

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    Supplier Power:

    The main suppliers of a Management school, like HEC-ULg, are related to its primary

    activities at the Porters value chain. As HECs activities do not require too many specific

    external inputs, there are lots of suppliers that can meet its needs. Therefore, the supplier

    power is considerably low and does not require complex analysis.

    Buyer Power:

    More different programs a Management School offers, larger is the range of buyers and,

    consequently, it is less dependent on them. Hereafter, it is HEC Management Schools

    products and its main customer targets:

    Product Customer profile

    Bachelor Degrees Students from 18 to 24 years oldinterested in entering on job marketMaster Degrees

    Doctoral programs Students interested in research

    development in a specific area

    Executive programs Experienced professionals interested in

    recycling their knowledge and

    strengthening their network and

    management abilities

    At the Bachelor and Master degrees, HECs customer power is not so strong, given thatHECs brand is associated with quality and a good employability that are strong decision

    factors for this public. However, at the Executive programs, the buyer power is significantly

    higher due to several different reasons: Firstly, as these customers have already got a college

    diploma, they are, in general, more demanding than the Bachelor and Master students. The

    contents, for example, should be really focused on real situations applied to their jobs;

    otherwise, they do not feel interested in it. Secondly, as there are lots of strong players on

    this market is great, it increases considerably the competitiveness and thus the buyer power

    in terms of price, quality requirement, and so on. The doctoral students are still a little group

    compared with the others.

    Industry Rivalry:

    The HECs competitors can be divided according to the geographic location: national and

    international competitors. Nationally, HEC competes against Management Schools that are

    settled down in Belgium, not only in francophone zone, but also in the Flemish zone, given

    that most of the universities offer degrees taught only in English, eliminating the language

    barrier. Internationally, regarding the HECs customer targets, the main competitor s are in

    Europe, especially in France, Netherlands and Germany. The first one due to the language

    and in the last two countries, the main competitors are close to Liege. Some of the

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    advantages of the international competitors are: better being in stronger economies than

    the Wallonia one, which can increase student employability and opportunities of

    partnerships with big companies and non-European universities; and being more attractive

    to foreign students. In Netherlands and Germany, the better English level is also an

    advantage for these competitors. On the other hand, HEC offers the opportunity of a bi-lingual life to the foreign students, with lectures in English and the day-by-day in French,

    which is attractive for non-francophone speakers.

    Some examples of competitors are: Solvay Management School, Maastricht University,

    Louvain School of Management.

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    Appendix 2: Porters Value Chain

    Primary activities:

    Inbound logistics: Here, in the case of HEC-ULg, we can consider as inbound logistics all

    things that are upstream of the core activities of the school. Including for example: finding

    good teachers, being and staying state of the art, planning the training programs, being

    located at an appropriate place, Lige, the creative city in the heart of Europe, finding and

    providing adapted equipment (amphitheater, blackboard, overhead projectors, computers,etc.).

    Operations: The operations can be regarded as all the activities of the school such as

    providing quality courses, providing knowledge, skills, reasoning in economic, business,

    management, matching appropriate teachers with courses (theoretical courses, practical

    lessons, portfolios, seminars, exchange programs), using equipment efficiently, educating

    students, using pedagogical innovation, being specific (management, economic, RH,

    marketing, audit,), using efficiently expertise (six peaks of excellence ensure the coherence

    of academic research, teaching, and Socio-Economic expertise).

    Outbound logistics: N/A

    Marketing and sales: In the chain value, marketing and sales are the activities associated

    with getting buyers to purchase the product. Here it includes the communication between

    teachers, students, alumni, graduates, staff and partners, the participation at student fairs

    like SIEP, the website and social networks, the word of mouth, the reputation through well-

    known partnerships and sponsors like ArcelorMittal, Ethias, Deloitte,

    PriceWaterHouseCoopers, through seminars and conferences, by publishing magazines like

    Spirit of Management.

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    Service: the service activities are these that maintain and enhance the product's value. This

    category include: providing sessions of questions/answers, giving additional practical

    exercises to help students to understand the theoretical concepts, the availability of

    teachers when students have questions during the lesson but also outside of class time,

    providing example of questions for exams or previous exams to prepare students to the final

    exam, the e-learning platform lol@ which is very useful for student to find the coursesdescriptions, the contents, the objectives, the syllabus, the comments and announcements

    of teachers, the agenda for all courses in which they are enrolled, the creation of

    ID_CAMPUS which is a platform for collaborative and open innovation, the developed

    alumni network (organization of events, newsletters) and the possibility to integrate the

    students' association, interest groups and junior companies in which students can practice

    what they are learning, can develop soft skills and can be well integrated in the school.

    Secondary activities:

    Procurement: Here are some figures of the core "raw materials" of the school that we can

    more or less consider as the procurement in this value chain.

    - Total number of students: 2,300

    - Percentage of international students (not including Erasmus): 15%

    - 89 professors (core faculty), 96 invited professors (adjunct faculty), 76 teaching & research

    assistants/researchers (scientific staff)

    - 70 students enrolled in the economic and management sciences PhD Program and 130

    researchers under contract in 2009

    - 13,000 HEC-ULg graduates

    - 150 partner universities across 36 countries- Double-degree with Fachhochschule Aachen and negotiations for joint degrees with other

    institutions and creation of joint Masters underway.

    Technology development: HEC-ULg can be proud of their technology developments that

    support its value chain activities. It includes particularly the transversal platforms to

    embrace major societal challenges with ID-Campus (open and interdisciplinary platform) and

    the educational resource platforms with the virtual campus LOL@ which is a complete e-

    learning platform. By crossing competencies transversally inside and outside the boundaries

    of the school and with the educational resources platforms designed to foster pedagogical

    innovation, the management school try to be at the forefront and acquire accreditations.Moreover, the school is well equipped in term of technology, the Wi-Fi is available

    everywhere in classrooms, and there is even a computer room. HEC-ULg acquires also

    professional software like Belfirst.

    Human resource management: While turning resolutely towards Europe and the world,

    HEC-ULg also emphasizes the human dimension of the work environment, the regional focus

    of its missions of service to the community, the managerial relevance of its teaching and its

    applied research projects without forgetting the richness of inter-faculty partnerships. The

    school has today 89 professors (core faculty), 96 invited professors (adjunct faculty) and 76

    teaching & research assistants/researchers (scientific staff).

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    Firm infrastructure:

    General management: the specific governance which ensures its unique anchorage to the

    economic world via an important presence of the enterprise in the school council, in charge

    of strategic decisions, budget and programs and via a governance council, mainly composed

    by enterprises representatives, national and international, in charge of evaluating thestrategic positioning for the school, and find adequate additional financial means.

    Quality management: firmly committed to European values, it enrolled at the outset in the

    Bologna process. It participates in European research and teaching programs. It is engaged in

    quality assessment by the EUA since 1999. It has won several quality labels including ECTS,

    Diploma Supplement and HRS4R labels and it is a EURAXESS center.

    The 6 peaks of excellence are:

    Asset and Risk Management Economic Analysis and Public Governance Human Resources Management and Organizational Change Social Enterprises and the Social Economy Supply Chain Management and Quantitative Methods Tax Institute

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    Appendix 3: Strategic Business Units

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    Business Ingeneering(120 ECTS)

    FinancialIngeenering

    PerformanceManagement

    Systems

    Supply ChainManagement

    Intra-Preneur

    BusinessIngeneering

    Management Sciences (120 ECTS)

    AuditMarket

    ingHR Banking Law Social

    Entrepreneurship

    Management Sciences(60 ECTS)

    ManagementSciences

    Economic Sciences (120 ECTS)

    Economic Analysisand Public

    Governance

    Economics andFinance

    Finalit Didactique

    EconomicSciences (60 ECTS)

    EconomicSciences

    Bridging Students

    Erasmus Students (IN)

    PhD

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    Bibliography

    http://www.enseignement.be/index.php?page=25837&navi=2503

    Fdration Wallonie-Bruxelles, Enseignement et recherch scientifique, Bologne :

    http://www.enseignement.be/index.php?page=26646&navi=3338

    Alumni Matters2012: What Alumni Want, Carringtoncrisp, Executive summary.

    EFMD Danos Speech 2013 Istanbul

    http://lola.hec.ulg.ac.be/claroline/backends/download.php/RUZNRF9EYW5vc19TcGVlY2gyMDEzSXN0YW5i

    dWwucGRm?cidReset=true&cidReq=GEST3029_1

    HEC-ULg, Missions et valeurs: http://www.hec.ulg.ac.be/hec-ulg/missions-et-valeurs

    The Future of Business Education, http://www.ft.com/intl/businesseducation/future-of-business-schools

    Rankings by Financial Times http://rankings.ft.com/businessschoolrankings/rankings

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