A Case Study On Location-selecting Strategies Applied To The Branch School Of Kunming Love+ English Training School

Accompanied with distinctive market characteristics,rapid capital intervention and competitive brand effects,our non-governmental education and training industry meets the needs for current trend.In order to highlight the brand influence and expand their market share,the great majority of non-governmental education institutions successively opened their branch schools.Meanwhile,they also tend to seek the involvement of capital forces such as venture capital.in expectation of achieving scale effect by means of dispersing branches.However,in the process of investors'competing for commercial interests,some disadvantages come to their emergence with excessive growth of investors.For instance,inconsiderate investment in the branch schools,the absence of comprehensive judgments on market capacity,competition status and consumption power in the district,being over-optimistic about the subjective expectations,overestimation on the actual value of the branch school and ignorance of the risk factors existing in the investment process,which may potentially result in the hardly profitability during the project operation duration,even worse,confronting with difficulties in recovering investment costs.It can be seen that the systematic research on the location of branch schools in the early period has a major impact on investment decisions.In 2018,the author,together with several other partners invested in the Love+ English Training School.The school specializes in teaching with small groups of 10 kids aging from 3 to 12 year old.The course focuses on kids9 practicality and interest.At present,the company is running in good conditions and is in consideration of opening a branch with the venture capital institution.In response to this realistic demand,the author conducted an abundant market research and consulted the relevant references.Based on the Monte Carlo simulation and the theory of operations research,a set of stereotypes for researching the location selection of the branch institutions was established,which can be quantitatively evaluate the risk and return of individual option.Ultimately,contribute to selecting the optimal investment portfolio based on the fund status,the school's preference and the strategic needs of the enterprise,and provide final favorability for the project investor's decision-making.Based on the theoretical model of the design,the author selects the real management data and relevant market research data of the main school of Love+English Training School in Kunming,and defines the distribution types and affiliation parameters of each variable.Monte Carlo simulation,in the first place,simulates the future operational data of 11 branch alternatives on the basis of the parameter assumptions,and sorts the simulated multiple sets of data,visually revealing the possible range of Monte Carlo simulation measurable project investment income,and the varied risk probability corresponds to different investment returns.On this basis,the author gives out a solution to work on the most favorable combination among the different branches of the school,taking the balance of risk and return into consideration,involving the theory of operational research in support of the project investment fund status,investor risk preference and whether to consider the regional strategy of a certain company.A overall look on the location decision of Love+English was analyzed in eight cased and a detailed explanation will be given in following pages.