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Pearson PLC“Always Learning” Angela Elkordy

Dr. Newell, 614 Growth Strategies

2The Organization

• Established in 1844; S. Pearson & Son (Construction) • Global company

• over 70 countries, 48,000 employees• $6.1 billion in sales (2012), with $

• Pearson PLC (1998) consists of 3 main divisions:• Education• Consumer Publishing• Business Information

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The Organization: Financial Times Group

• Business publications• Financial Times• Economist• FT Press (books, texts, ebooks)

• Business intelligence• Analysis• Video, podcast

• Business community• Blogs, forums

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The Organization: Pearson Education

• Pearson Education• Pearson School (PreK-12)• Higher Education• Assessment and Information• Schools (Connections)• Technology platforms & tools

• International• English language learning

• Professional• Credentialing

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The Organization: Penguin Random House

• World’s largest trade publisher (global)• 10,000 employees, nearly 250 imprints, and a global

reach, (Random House’s strength in Latin America with Penguin’s hold in India and China)

• 15,000 new titles a year, about one-quarter of the world’s English-language books

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The Organization: Pearson Brands

• http://en.wikipedia.org/wiki/Pearson_Education

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The Organization: Pearson Brands

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The Organization: Pearson Brands

• http://en.wikipedia.org/wiki/Pearson_Education

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Internal Analysis: Strengths

• Size (market share)• Strategy of continuous growth through acquisitions • Market penetration (segmentation)• Market expansion – new markets, global opportunities• Vision and capacity to transform the company to a

global, digital enterprise• Diversification• Leadership / agility / ability to pivot based upon

performance• Assets

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Internal Analysis: Weaknesses

• Vulnerable to technology changes in publishing industry• Primarily English language focus• Diversification requires corresponding knowledge base to

manage and grow• Changes in education industry, especially national and

state standards (K12), impacting Professional and Assessment branches (Government/ Regulatory)

• Changes in professional credentialing• Intellectual property concerns in some global markets

(not adequately protected by law)• Fluctuation in foreign currencies and markets

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Internal Analysis: Competencies

• Responsiveness• Market conditions• Customers• Opportunities

• Product alignment (vertical and horizontal)• Example: K-12 curricula, assessment, technology platforms

for product delivery, teacher resources – even schools!

• Diversification to create product families

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External Analysis: Competitive Analysis

• Nearly 50% of U.S. schools use at least one of its student curriculums, instructional management, or financial software packages.

• It’s also the largest provider of educational assessment services and solutions.

• Internationally, it’s ahead of the trend towards independent accreditation via EdExcel, the UK's largest body offering academic and vocational qualifications

• India, it runs Tutorvista, a network of English Language coaching centers for Indian students that also provides remote tutoring to 10,000 students around the world

• FastCompany: Most Innovative Companies of 2012 (http://www.fastcompany.com/3017421/most-innovative-companies-2012/most-innovative-companies-2012-industries-top-10-education)

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External Environment: Competition

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External Environment: Competition

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External Environment: Relationships

• Control over public education• Pearson presence, profits, contracts

• Pineapple Gate:

• “Teachers, parents and education experts all chimed in. Nobody liked the talking pineapple questions. The Daily News, which broke the story, corralled “Jeopardy!” champion Ken Jennings, who concluded that “the plot details are so oddly chosen that the story seems to have been written during a peyote trip.” Gail Collins, “A Very Pricey Pineapple” (New York Times)

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External Environment: Substitute

• Other testing services – which may not be aligned to curriculum

• Competitor products

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External Environment: Ease of Entry

• Very difficult, except in niche markets• Supporting and buying Ed. Tech start ups

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External Environment: Government Regulation

• Professional standards for certification or courses of study

• Educational standards in K12 and professional contexts

• Regulatory environment – Ofqual investigation• Intellectual property

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External Environment: Role of Technology

• Ubiquitous• Transitioning to a digital company (began in 2007)

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External Environment: Social Changes

• Learning -- how we learn in a digital age• Individualized education• Globalization -- • Transition to digital publishing company• Decreased emphasis on textbook products• Accountability – adaptive assessments for example• Changes in the workplace (skills and training)• Efficacy – program to assess Pearson learning

materials

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Growth Strategies: Strategic Mergers

•  Penguin Random House.• May 2013

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Growth Strategies: Savvy Risk Awareness & Analysis

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Growth StrategiesAcquisitions: Technology

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Growth Strategies: Business Incubator /Accelerator

25Growth Strategies

• “Reinventing” themselves by reorganizing• Switching direction to optimize opportunities in

emerging markets and trends• Strategic partnerships (support Inkling with McGraw

Hill)

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Growth Strategies: Effectiveness

• How effective have they been?• Very!