1. Unit Five: Business and Multi-business Strategy
MT460 Management Policy and Strategy
Case 3: The Apollo Group, Inc.
[University of Phoenix]
Learner: Debra Hart
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2. Case Study Agenda Introduction Synopsis/Background Key Issues/SWOT
Define the problem
Alternative Solutions
Selected Solution
Implementation
Recommendation
Conclusion
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3. Introduction
The University of Phoenix is one of the largest colleges of adult higher education learning. It continues to expand its market also the technology of the University of Phoenix brings its students as well as its faculty together, giving them the very best that the school has to offer. The Apollo Group, Inc. Is proudly known as being the largest private university in North America and one of the leading online colleges.
The University of Phoenix was founded and is headquarter in Phoenix, Arizona. By expanding in familiar and unfamiliar areas, the University of Phoenix would begin to dominate the area by higher education adult market.
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4. Synopsis Background
Online origin of Apollo Group, Inc. business continues to flourish and grow
Observed that adult education is growing
The concept of online education is gaining popularity in the US and all over the nation
New markets increased the opportunity for students and the rise in online education is economical
Apollo Group, Inc. provided higher education to working adults
Group operates through subsidiaries: University of Phoenix, Institute for Professional Development, College for Financial Planning, and Western International University
Operates in the US, headquartered in Phoenix, Arizona, and employs 14,590 people
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5. Key Issues
There is little resemblance of concepts to traditional universities
In terms of students recruited
Courses offered
Operational model
Student loan debt
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6. SWOT Diagram (Internal / External Analysis)
Strengths
Instructors are working professionals in their field
Strong operating performance
Broad product portfolio
Accredited degree programs
Current and relevant standardized programs
Weaknesses
The professors are working professionals and not tenured professors
Most of the revenue comes from federal student financial aid and program Title IV
Dependence on University of Phoenix
Declining profitability
Opportunities
The opportunity to amend the instructional model to be more competitive
New academic programs
Grow strategic acquisitions and joint ventures
Threats
Other schools offer online classes and degrees
Intense competition
Government regulation and financial aid policy changing
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7. Define the Problem
University of Phoenix is delivering low quality education
The students are unprepared for gainful employment
Students are unprepared to compete against the graduates from traditional institutions
Students from other universities are better prepared after graduation
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8. Alternative Solutions
Need to determine the average time the faculty devotes to the seminars
Determine the parameters for selecting the faculty
Determine the faculty mixture such as, tenure, and how many are working professionals
Review academic programs and degree requirements
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9. Selected Solution Study the competition’s student demographics
Compare the best practices
Examine the shortfalls of online education platform
Decide if accusations are worth the attention
Update and create more sophisticated technology for the course work
Ensure the online format is up-to-date and current
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10. Implementation
Create differentiation strategy and focus on services at lower costs
Create speed-based competitive advantages
Create rapid response strategies
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11. Recommendation
Examine intrinsic underperformances of and disparagement of online education
Recruit tenured professors to facilitate online courses and add credibility to curriculum
Analyze and compare other universities student demographics and cater to those students
Determine if the allegations have merit
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12. Conclusion
Adult learners do not have time or resources for school attendance
Adult learners are faced with challenges of work and family
Often are passed over for promotion of certain jobs because of lack of education
Adults accept the fact that more education is needed
People are finding that higher education for adults is required for success
University of Phoenix opened doors for higher education
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13. References
Pearce, J. A., & Robinson, R. B. (2013). Strategic management: Planning for domestic & global competition. (13th ed.). New York, NY: McGraw- Hill/Irwin.
Apollo Education Group. (2015). Retrieved April 24, 2015, from
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