Should the NSU Raise its Tuition Fees?

Introduction 

Organizational leadership and management have a critical role in estimating the level of revenue generated. Good leaders make informed decisions that can boost the total revenue collected from the sale of products or services ( Wieseke et al, 2009). Revenue is the total income generated from the sale of services or goods or any other usage of the capital or assets, linked to the primary operations of the business before the costs or total expenditures if subtracted. Several factors in addition to real leadership and management determine the amount of revenue a company collects within any specified period of time ( Wang, Lee, Fang & Ma, 2017) . These factors include a marketing plan, cost of goods or services, government laws, shopper satisfaction, and worker motivation. Therefore for an institution to generate high income, these factors must be put into consideration, so that right decisions are made, which can help satisfy the quantity of demand and increase the total revenue. According to Amacher et al “The quantity demanded is the amount of a good or service consumers are willing and able to buy at a specific price during a certain time period” (Amacher & Pate, 2013). In Nobody State University, the management has an aim of maximizing its total revenue by increasing its tuition fee. However, by considering other factors, we shall see in the discussion whether an increase in tuition fee can help upsurge income for the University. 

Will A Rise in Tuition Fee result to an Increase in Revenue 

If Nobody State University were to execute an increase in its tuition fees, the same would lower the total revenue. That is because the total number of students enrolled will decline. Therefore, making the institution to experience a reduction in revenue collection due to a drop in the total number of students. That is majorly contributed by the inability of many families to afford the cash so as to enable their children to remain at the University. Also, even if the university admits students from affluent families, it may not experience an increase in the total revenue because the number of those students will be less. Therefore, the total income raised by the University will remain constant given that the enrollment will continue to be low. 

The condition under which revenue will rise, fall or remain constant. 

Demand for goods and services is determined by various aspects like cost and quality. For instance, if the cost is higher as opposed to what consumers can afford, the company is likely to make fewer sales, but if the price is affordable or lower, the consumers can buy more goods and services and therefore promoting an increase in the total revenue generated. Also, quality of the service or products offered by an organization matters a lot. In most cases, consumers go for quality services and goods despite the price associated with these goods or services (Amacher & Pate, 2013). In Nobody State University, an increase in tuition fee can have adverse effects on the total revenue generated. The revenue may rise, fall or remain constant under different circumstances. 

Decisions taken by the management of the University should be targeted at satisfying the consumer needs (students). Scarcity is a major difficulty for many institutions, mainly because no matter what decisions are made not all users will be satisfied ( Wang et al, 2017) . The increase in tuition fee can result in an increase in total revenue, especially if the institution intensifies its marketing. Marketing enables the people to understand the importance of receiving services from one system and not from the other competitors subtracted ( Wieseke et al, 2009). Therefore, if the people across the region are made to understand the benefits of receiving their degrees from the Nobody State University, it can boost an increase in the total revenue as many people would enroll. 

Additionally, testimonies by alumni students of Nobody State University can act as a boost into an increment in the total number of students enrolled. That is important because by sharing the good experience on social media, Television, Radio or Newspapers, it attracts many students into joining the institution. In situations like this when the University name is well sold, people do not worry about the tuition fee but rather aim at receiving a quality education from Nobody State University and be successful as those who have received their degrees from the same university. 

Also, Nobody State University can experience an increase in the total revenue by raising the tuition fee, when the factors are well managed. These factors of production include labor, land, entrepreneurship and capital subtracted ( Amacher et al, 2013) . For instance, the efforts inserted by the University lecturers and other non-teaching staff can greatly determine whether there will be an increase in total revenue or not after an increment of the tuition fee. When workers of Nobody State University remain motived, despite an increase in the tuition fee, they can work extra hard to ensure that the university offers best services so that students can enroll without fear of the high tuition fee. For example, if workers receive better wages and are involved in decision making, they can offer best services, which can help the university increase its total number of students registered. Amacher et al. states that “It is possible to make labor more productive by devoting money and time to improving skills” (Amacher & Pate, 2013). 

A fall in the total revenue due to an increase in tuition can occur if there is poor marketing, customization, less motivation of workers and poor management of the University resources. The law of demand according to Amacher et al. states that “the quantity demanded of services or goods during a specified time is always negatively related to its price.” ( Amacher et al, 2013).Therefore, an increase in the tuition fees in the University can adversely lower the number of newly admitted students because many will be seeking educational services from other universities that offer degree programs at low prices. The situation can worsen if the University does not come up with an efficient marketing plan. An increase in tuition fee needs more marketing so that people can clearly understand the reasons why the university had to increase its tuition fee. If that never happens, people can consider other competing schools, which may not be offering quality education as Nobody State University. Therefore, the University must come up with an efficient marketing plan, so as to reach to as many people as possible, ensuring that they understand the reasons why they must consider enrolling in Nobody State University despite higher tuition fees. Additionally, according to Wang et al. “ Customization can lead to higher costs associated with the complex coordination processes required to define the specific needs of individual customers and make relevant adaptations to existing products” ( Wang et al, 2017). Therefore through customization high costs of services can result to a decline in the total revenue collected. 

Some cases, however, can result to immobility of the revenue. The revenue collected by the university can remain the same under different situations. If for example, the University admits students from wealthy families, the total amount of income can remain constant given that many students from low-income families cannot afford the cash to enroll also in the same school ( Wang et al, 2017) . Also, if tuition fee increases but the quality of education remains poor, the college may fail to admit as many students as possible to help it boost its revenue collection. 

If the price elasticity were to be -1.2, this would mean that the price is too high and has little or no change in the quantity of service supplied. Nobody State University, therefore should consider the people’s income and come up with realistic tuition fees that can help increase the total number of students enrolled. The University should involve parents and other stakeholders in deciding how much tuition fee should be added so that the number of students enrolled remains high. Additionally, the University could intensify its marketing so that many people become aware of its quality educational services it offers. Marketing can be done using social media platforms, which include Facebook, Twitter, WeChat, WhatsApp, LinkedIn, and Instagram. These social media platforms have many users across the world, and therefore, by spreading messages of the high quality of education offered in Nobody State University, many students can join and help the University attain its goal of expanding its revenue. 

If I were the President of the University, I would take necessary measures that can contribute to increasing the total revenue. The actions I would take include; intensifying marketing. I will allocate more funds to the marketing department so that the University’s name is sold to as many people as possible across the world. Also, I will encourage teamwork amongst workers, so that they can work towards improve the quality of services offered by the University. That is because many clients prefer the higher quality of services than quantity and therefore despite an increase in the tuition fee, people can still enroll in the university if they are guaranteed of quality educational services (Amacher & Pate, 2013). Lastly, to expand the school’s revenue, I will include all stakeholders and workers of the University so as to come up with a tuition fee, which will be acceptable to many across the world. That therefore means that good leadership can help transform activities in an organization and help improve the total revenue in an organization. For instance, according to Wieseke et al., leaders typically incarnate the mental reality of the group and epitomise the business to subordinates, additionally signifying that, “…in the working relationship between leaders and followers, leaders represent the personal actualization of the otherwise abstract, impersonal existence of the organization” (Wieseke et al., 2009) 

Conclusion 

As discussed above, different factors affect the demand for goods and services. For an organization to be able to increase its number of clients, it must ensure that prices for acquiring those products or services are affordable to all people. Therefore, an increase of the tuition fee can make many students especially those from poor backgrounds fail to access educational services at Nobody State University. The reduction in the total number of students directly lowers the total revenue collected by the University. Therefore, for the university to be able to expand its revenue, it must set affordable tuition fees, which can allow all students willing to join the University to do so without fear of high tuition fees. 

References 

Amacher, R., & Pate, J. (2013). Microeconomics principles and policies [Electronic version]. Retrieved from https://content.ashford.edu/ 

Wieseke, J., Ahearne, M., Lam, S. K., & Dick, R. v. (2009). The role of leaders in internal marketing. Journal of Marketing, 73 (2), 123–145. 

Wang, Y., Lee, J., Fang, E., & Ma, S. (2017). Project Customization and the Supplier Revenue–Cost Dilemmas: The Critical Roles of Supplier–Customer Coordination. Journal of Marketing , 81 (1), 136-154.