Spain Teaching IT skills

Product• We will set up IT classes available to the people in Spain.

• Target students : age 18 and above, unemployed workers.

• A skills school to improve work chances for the workers in the future.

• First we will teach basic IT skills such as excel spreadsheet. And then move on to more advanced program (students can choose to) -> programming.

• Scholarships and low prices will be given to students. Get fundings by the government or other sponsors to work with.

• When students finish, we work with other companies and assist students to get a job.

Social

Demographic• Population: 47,370,542

• Dependency ratio is 49.5%

• Economically active ratio is 46.2%

• Unemployment rate is over 26.6%

Age between 20 and 30’s unemployment rate is over 56.6%

• Literacy: age 15 and over can read and write

- total population: 97.7%

Consumer attitude and opinion

General home’s consumption and financing rate are on a downturn due to the long-term business depression.

Spain’s domestic consumption decreased frequently to -3.9% in 2013

Consumers believe the economic situation will be better in the future In 2012 the consumer’s consumption mentality rate was 40p, which was very low

however from 2013 it is constantly increasing and now it reaches to 83.7p.Nevertheless still the consumer’s consumption mentality rate is lower than 100p,

which shows they still have the negative opinion on the situation of the marketplace

consumer buying patterns

• Consumer’s mostly buy IT products like smartphones, Tablet PC and products which are related to health during the business depression.

• Within 12 month 60% of consumer bought IT products

Although Spain is in long-term business depression, consumers’ constantly purchase IT products, accessories,

health related service products and some sport’s products.

However, products like furniture are rarely purchased by consumers.

Consumer’s buying access and trends• Consumers’ frequently use internet to order products and

search information about the products

The percentage of consumers

searching about the product’s

information on the internet before purchasing it in

2013 is 90% which has increased 22%p

than in 2010.

• During the economic depression, IT products are the best selling products in Spain. 90% of the Spanish people use the internet to search for their products.

• This shows the potential of our company in Spain because as the time flies by, more and better IT skills will be needed

• Due to the high unemployment rate which is about 26.6%, in the future, our company would have many students learning IT skills.

Economy

General taxation issues

VAT(Value Added Tax)—>(Impuesto sobre el Valor Añadido)

•is a form of consumption tax; a tax only on the value added to a product, material, or service

In Spain, 21% on most goods and services

10% for reduced rate( Health products and equipment, Passenger transport)

4% for super-reduced rate(books,newspapers, magazines, basic foodstuff, human medicine)

As a programming educational institution, we should provide students high quality computers.

• However, 21% of taxation on computer is huge.• We might not be able buy top quality computer at the beginning.• We might have to consider leasing some computers.

• For educational institution, cooperation tax is 30%

• This is relatively low comparing with other MEDC.

• However This still might a problem, 30% of corporate tax at the beginning is quite tough

corporate tax

• In Spain, corporate tax is 25%-30%

Interest rates• The benchmark interest rate in Spain was last recorded at

0.50%. From 1998 until 2013, Spain Interest Rate averaged 2.6% and a record low of 0.5 Percent in May of 2013.

• The benchmark interest rate in Spain is definitely going down. The rental fee for building,

Economic indicator

• Leading indicators(LEI):Leading indicators are indicators that usually change before the economy as a whole changes. They are therefore useful as short-term predictors of the economy.

• Coincident indicators(CEI):Coincident indicators change at approximately the same time as the whole economy, thereby providing information about the current state of the economy.

• The Conference Board LEI for Spain increased for a sixth consecutive month in September 2013, with stock prices making the largest positive contribution. Between March and September, the leading index increased 2.5 percent, slightly above its 2.2 percent increase during the previous six months. In addition, the strengths among the leading indicators have remained more widespread than the weaknesses in recent months.  

• The Conference Board CEI for Spain, a measure of current economic activity, declined again in September. The coincident economic index decreased 1.1 percent in the six-month period ending in September 2013, an improvement from its decline of 2.3 percent in the previous six months. In addition, the strengths among the coincident indicators have become more widespread than the weaknesses in the last six months.

• The LEI for Spain has been trending upward during the past twelve months, and as a result its six-month growth rate has improved. Meanwhile, the CEI for Spain has been on a downward trend for more than two years, but its six-month growth rate has become less negative than earlier this year.

• In conclusion, the recent behavior of both indexes suggests that the current contraction in the economy should continue to ease and modest economic growth is possible going into 2014.

• Both indexes are showing the economic growth. —> More people in Spain are willing to use money —> Therefore we can secure number of the students to our new school

Associated/dependent technology

• In Spain, as of 2010, 62.6% have access to internet so they have access to computers. (Although some may be in cyber cafes). Many consumers will be familiar with the use of internet and computer.

• WE will need to : Buy computers

• Should be newest and updated - be “in” with computers (programming and basic skills)

• Expensive!

Technology

Legislation

• Anti Piracy law recently passed.

• Make sure students and what we do is not breaching privacy.

• Strict on where we get resources (but has more procedures and more expensive)

• Damage reputation and fine money.

Information and communication

• To communicate with customers we will use the internet.

• Put up websites which gives detailed information about our classes

• Online customer service

• But takes more time to set up

Technology development

• Technology advances, teaching programming and basic skills will also need to keep up.

• We will have to update our softwares and as time goes by, update our computers to be more advanced.

Politics

Spain

• Spain is established as Social and democratic state

• Spain has constitutional monarchy

• The president of the Government is elected by the Congress of Deputies

government policies about education

Education Law

School Timing:

•- The school year is divided into three terms with a long summer holiday break of almost three months.

•- Winter term (September to December).

•- Spring term (January to Easter).

•- Summer term (After Easter to late June).

Adult education is addressed to people over 18.

Spain Education System

• Vocational training is designed to train specialized, qualified worker to incorporate into the labor market in the industry or services sector.

• The students need to hold a Certificate which can enroll in Intermediate Vocational Training (FP)

• After the students finished their program, the students will obtained a technician certificate which allows them to enter the labor market.

• According to the education system, our school have to provide the Certificate for the students to ensure their career life.

funding, grants and initiatives

• The funds are mainly provided by the Ministry of Education and by regional education authorities, the local government will also contribute the funds.

• Private financing- from families or private institutions.

• The Spain government decided to cut budget on education. This means our school is less likely to get grant from the government.

• Even though it’s unlikely to get grant from the government but it’s possible to finance fund privately.

regulatory bodies and processes

• The ministry of Education is the body of Central Government Administration in charge of putting forward and implementing the common guidelines for educational policy.

• Regional Government has the Education Department, it responsible for school staff and provide education service.

• Local government has to cooperate with education authorities on development of education authorities.

• Our school have to corporate with these institutions or departments in order to ensure the school is running legally and follow the instructions of the educational policy.

Government term and change

• Organic Law for Improving Education Quality (LOMCE)-the education reform in Spain, the teacher’s salary will be cut. -> we can offer higher salary to attract the high qualified teachers to join our school.

• Set guidance system from education and labor authorities, guiding people on the training and employment pathways. It is issued by the Ministry of Education.

Teacher’s qualification

• Teachers need to have a engineer or technical architect diploma.

• Our school has to employee the teacher according to these qualification. Otherwise our school will be banned by the education authorities since the teachers are unqualified.