Celestial Seasoning

Celestial Seasonings was found by small countryside family aiming to bring natural herb benefits to the customers in 1969. Celestial’s herbal tea was sold through local stores initially. Celestial Seasonings went through major change when it was bought by Kraft Inc in 1984. Kraft brought Celestial products to new markets before selling it back to the Celestial’s old management in 1988. The selling and re-purchase of Celestial benefit the company to get into national market and exposure to wider consumer range.Throughout the decade of 90’s, company extended its product line as per market demands. As result herbal supplements, medicinal teas, herbal supplement capsules and many other products were added to celestial product range. Company had good growth till end of decade until some of its product start showing the declining trend. There are some problems relating to celestial Seasonings progress which include ethical issues, quality concerns and limited target ma rket.Celestial Seasonings makes its entire product range from natural herbs but still company cannot promise to make people healthy. It’s a product not medicine so it cannot claim for treatment of illness and claiming so raises ethical issue. Quality concern is another problem with the celestial Seasonings products. 71% people consider Celestial Seasonings products safe for health while 29% people have some concerns about safety. They think that being natural doesn’t make it safe. Herb source authenticity also raises questions about quality.Celestial Seasonings offer a wide range of product but major target market is baby boomer ladies with 35 to 54 years of age. Its tea products have high price than other tea competitors. This raises the problem of limited target market. As a solution of ethical problem, company must not make unjustified promises. Product statements can show that these can help living healthier life rather than its impression of a curing product. Qual ity can be assured by club marketing programs and virtual tours. Sustainable sourcing assurance can also help improving customers’ confidence.Club marketing programs can be launched and events can be held on farm and production locations to improve customer perception for product quality. Market development is solution to limited target market issue. New target markets can be explored. Company can go global and enter the markets where tea is a part of tradition like England, India, and Pakistan. Celestial Seasonings has kept its promise to bring natural herb benefits to the customers. Company can overcome current problems and increase its profits with market development, club marketing programs and keeping the ethical concerns.

Hallmarks of Scientific Research Essay

Successful managerial decisions are seldom made on hunches or on trail and error method. The sound and effective decisions are always made on the basis of scientific research. Scientific research focuses on solving problems in a step _by _step logical, organized and rigorous manner in each step of research viz., identifying problem, gathering data, analyzing it and in arriving at a valid conclusion. Organizations may not always be involved in the scientific research due to various reasons like – simple problems which can solved with previous experience, time contingency, lack of knowledge, resource constraints etc., However the scientific research performed in a rigorous and systematic way leads to repeatable and comparable research findings. It also enables the researchers to arrive at accurate, dependable and subjective findings. The hallmarks or distinguishing characteristic features of scientific research are as follows: Purposiveness The research is conducted with a purpose. It has a focus. The purpose of the research should be clearly mentioned in an understandable and unambiguous manner. The statement of the decision problem should include its scope, its limitations and the precise meaning of all words and terms significant to the research. Failure to mention the purpose clearly will raise doubts in the minds of stakeholders of the research as to whether the researcher has sufficient understanding of the problem. Rigor Rigor means carefulness, scrupulousness and the degree of exactness in research investigation. In order to make a meaningful and worthwhile contribution to the field of knowledge, research must be carried out rigorously. Conducting a rigorous research requires a good theoretical knowledge and a clearly laid out methodology. This will eliminate the bias; facilitate proper data collection and analysis, which in turn would lead to sound and reliable research findings. Testability Research should be based on testable assumptions/hypotheses developed after a careful study of the problems involved. The scientific research should enable the testing of logically developed hypotheses to see whether or not the data collected support the hypotheses developed. Replicability Research findings would command more faith and credence if the same results are evolved on different set of data. The results of the test hypothesis should be supported again and again when the same type of research is repeated in other similar circumstances. This will ensures the scientific nature of the research conducted and more confidence could be placed in the research findings. It also eliminates the doubt that the hypotheses are supported by chance and ensures that the findings reflect the true state of affairs. Precision and Confidence In management research the findings are seldom definitive due to the fact that the universe of items, events or population are not taken as such but based on sample drawn from universe. There is a probability that the sample may not reflect the universe. Measurement errors and other problems are bound to introduce an element of error in the findings. However the research design should ensure that the findings are as close to the reality as possible so that one can have confidence in the findings. Precision refers to the closeness of the finding to ‘reality’ based on sample. It reflects the degree of accuracy or exactitude of the results on the basis of the sample to what exactly is in the universe. The confidence interval in statistics is referred here as precision. Confidence refers to the probability that the estimation made in the research findings are correct. It is not enough if the results are precise but it is also important to claim that 95% of the time the results would be true and there is only a 5% chance of the results being wrong. This is known as confidence level. If the precision and confidence levels of the research findings are higher then the findings of the research study would be more scientific and useful. Precision and confidence can be attained through appropriate scientific sampling design. Objectivity Research finding should be factual, databased and free from bias. The conclusion drawn should be based on the facts of the findings derived form the actual data and not on the basis of subjective or emotional values. Business organizations will suffer a greater extent of damage if a non-data-based or misleading conclusion drawn from the research is implemented. Scientific approach ensures objectivity of research. Generalizability It refers to the scope of applying the research findings of one organizational setting to other settings of almost similar nature. The research will be more useful if the solutions are applicable to a wider range. The more generlizable the research, the greater will be its usefulness and value. However it is not always possible to generalize the research findings to all other settings, situations or organizations. For achieving genaralizability the sampling design has to be logically developed and data collection method needs to be very sound. This may increase the cost of conducting the research. In most of the cases though the research findings would be based on scientific methods it is applicable only to a particular organization, settings or situations. Parsimony Research needs to be conducted in a parsimonious i.e. simple and economical manner. Simplicity in explaining the problems and generalizing solutions for the problems is preferred to a complex research framework. Economy in research models can be achieved by way of considering less number of variables leading to greater variance rather than considering more number of variables leading to less variance. Clear understanding regarding the problem and the factors influencing the same will lead to parsimony in research activities. The sound understanding can be achieved through structured and unstructured interview with the concerned people and by undertaking a study of related literature in the problem area. The scientific research in management area cannot fulfill all the above-discussed hallmarks to the fullest extent. In management research it is not always possible to conduct investigations that are 100% scientific like in physical science as it is difficult to collect and measure the data regarding the feelings, emotions, attitudes and perception. It is also difficult to obtain representative sample; these aspects restrict the generlizability of the findings. Though it is not possible to meet all the above said characteristics of the scientific research, to the extent possible the research activities should be pursued in the scientific manner. Reason is the tool by which the human mind comes to understand the world. There are two processes by which reason tries to understand events: deductive reasoning, based on generally accepted principles, and inductive reasoning, in which general principles are formed from observed events. The field of economics has deductive and inductive sides, which are complementary to each other. Read more: Induction Vs. Deduction Economics | eHow.com http://www.ehow.com/about_5427109_induction-vs-deduction-economics.html#ixzz2KoG5qmEy Deduction in Economics †¢ Deductive economics starts with a set of axioms about economies and how they work, and relies on these principles to explain individual cases or events. Supply and demand analysis, a staple in any introductory economics course, is an example of deductive reasoning because it involves a set of generally accepted principles about demand and supply. To summarize, deduction in economics starts with a generally accepted principle and proceeds to the specific. Induction in Economics †¢ Inductive reasoning in economics does the reverse of deductive reasoning; namely, it begins with an individual problem or question and proceeds to form a general principle based on the evidence observed in the real world of economic activity. For example, an economist who asks if a government program of public works spending will stimulate a region’s economy will proceed to research the issue, collect and analyze data, and based on conclusions, form a general theory about the economic impact of fiscal policies. Read more: Induction Vs. Deduction Economics | eHow.com http://www.ehow.com/about_5427109_induction-vs-deduction-economics.html#ixzz2KoGFvGGU Induction-Deduction Link †¢ Although deduction and induction represent two differing approaches to understanding economic phenomena, the 19th century American economist Henry George observed that they are related. George noted that induction involves the use of human reason to investigate facts, while deduction is the derivative of the former. Effects †¢ Applying George’s insight on deduction and induction in economics, deduction involves the use of economic principles and theories that have been empirically verified through observation, research, and critical analysis. Generally accepted principles of supply and demand, for example, can inform our understanding of economic transactions only if they are based on empirical evidence, collected and analyzed through the inductive process. Features †¢ Induction in economics requires rigorous use of the methodology of economic research. This includes use of the mathematical modeling and statistical processes used in econometrics, or economic measurement. Findings from inductive reasoning then form economic theories used in deductive analysis. Read more: Induction Vs. Deduction Economics | eHow.com http://www.ehow.com/about_5427109_induction-vs-deduction-economics.html#ixzz2KoGNpTEs Logical arguments are usually classified as either ‘deductive’ or ‘inductive’. Deduction: In the process of deduction, you begin with some statements, called ‘premises’, that are assumed to be true, you then determine what else would have to be true if the premises are true. For example, you can begin by assuming that God exists, and is good, and then determine what would logically follow from such an assumption. You can begin by assuming that if you think, then you must exist, and work from there. In mathematics you can begin with some axioms and then determine what you can prove to be true given those axioms. With deduction you can provide absolute proof of your conclusions, given that your premises are correct. The premises themselves, however, remain unproven and unprovable, they must be accepted on face value, or by faith, or for the purpose of exploration. Induction: In the process of induction, you begin with some data, and then determine what general conclusion(s) can logically be derived from those data. In other words, you determine what theory or theories could explain the data. For example, you note that the probability of becoming schizophrenic is greatly increased if at least one parent is schizophrenic, and from that you conclude that schizophrenia may be inherited. That is certainly a reasonable hypothesis given the data. Note, however, that induction does not prove that the theory is correct. There are often alternative theories that are also supported by the data. For example, the behavior of the schizophrenic parent may cause the child to be schizophrenic, not the genes. What is important in induction is that the theory does indeed offer a logical explanation of the data. To conclude that the parents have no effect on the schizophrenia of the children is not supportable given the data, and would not be a logical conclusion. Deduction and induction by themselves are inadequate for a scientific approach. While deduction gives absolute proof, it never makes contact with the real world, there is no place for observation or experimentation, no way to test the validity of the premises. And, while induction is driven by observation, it never approaches actual proof of a theory. The development of the scientific method involved a gradual synthesis of these two logical approaches.

Depend on you ( follow the instruction) Essay Example | Topics and Well Written Essays - 1000 words

Depend on you ( follow the instruction) - Essay Example The initial impetus that was received from these kings and queens was required for the religious structures to attain strength after which it could fashion itself into a self-sustaining entity. A promotion of these religions also served important functions for these monarchs as it led to unity in realms other than religion in most cases. This effect was partially due to the emergence of alternative centres of power but it was also because of the individual philosophies that were a part of these religions. These philosophies may not have survived in the absence of the state sponsorship that it received but since the monarchs of this age extended their patronage to these religions, there was a certain kind of unity that was forced upon the people as a result of the royal patronage. Buddhism managed to create a certain kind of unity between sections of Hinduism, which was till then the main religion of the Indian subcontinent. The different philosophical views that existed in Hinduism became united owing to the fact that Buddhism was on the ascendant due to the patronage that was extended to it during the reign of Asoka, who reigned over India. Buddhism represented a challenge to traditional ideas of Hinduism which advocated the existence of the caste system and had many rituals that were present for the sake of upholding the structure of caste. With more egalitarian structures, Buddhism held great attractions for the downtrodden of the Hindu society. If not for the patronage extended by Asoka, Buddhism may not have survived the opposition from Hindu power structures. Asoka’s patronage, however, enabled there to be unity in the political realm. People of different religious affiliations came together because of the philosophy of peace that Buddhism preached, which was taken up by Asoka. The spread of the message of peace that Buddhism preached was largely owing to the patronage of Asoka and this fostered a

Business organisation and policy cartels and monopolies Essay

Business organisation and policy cartels and monopolies - Essay Example On the other hand, buying cartels aim at purchasing raw materials for its members while the output determining cartels determine the quantity of output for each member unit as the name suggests (Sangla 2009, p.181). Without government intervention, an isolated monopolistic firm would only exist in an ideal world. This is because most monopolistic firms make a lot of profits thus encouraging the formation of rival firms. In the long run, the new firms break the monopoly. Most governments in the 1920s embraced mergers and trade unions in key economical sectors such as chemical and metal industries (McTavish 2005, p.52). However, most of the business organizations preferred cartels to the other forms of trade convergence. After the World War II, the business field developed thorough monopolies and restrictive practices, which had salient effects on business organizations (McTavish 2005, p.52). Currently, it is only America in the whole world, which has not legalized cartel formation. One of the most popular cartels today is the organization of petroleum-exporting countries (OPEC). OPEC was established mainly to control the amount of oil each member produced. Member units that form cartels always enjoy a wide variety of benefits. Each member usually has a guarantee to earn fixed minimum profit which is not the case with other business institutions. In addition, all marketing and other secondary functions of the individual business organizations such as transportation, advertisement and marketing research are normally carried out by the cartels (Sangla 2009, p.181). In addition, the member firms also enjoy price control. Since, in working as a pool, the individual firms acquire monopolistic characteristics, they are in a position to charge the prices of their products at their own will. Conversely, the cartels and monopolistic

Week 3 540 Essay Example | Topics and Well Written Essays - 750 words

Week 3 540 - Essay Example Enter the Wireless Communication market,† (Simulation). An analysis done on the prospects of these two proposals, reveals that the agenda or proposal to expand the existing Digital Imaging or Dig-Image market share, can be beneficial than the option of entering the Wireless Communication or W-Comm. But, at the same time, this decision to go for Dig-Image has certain internal as well as external risk. So, this paper will analyze the risks of this investment decisions and importantly the mitigation of those risks. Normally, organizations wanting to increase its value, as to invest in projects that provides a positive Net Present Value. The Net Present Value of an investment project is usually determined by the subtraction of the projects total cost from the present value of the projects expected future cash flows. And, if the Net Present Value is higher than the projects cost, then it is expected that the project will increase the firms value According to the outline provided by the Marketing Research Reports, SAI should use the best capital budgeting approach in the form of NPV, as it will identify cash flows rather than profits. Then, it utilizes all the cash flows and in turn discounts the cash flows properly. So, in the case of Dig-Image, the sales of it in new markets depend upon its existing market share from the global perspective, price per product and importantly the size of market. As SAI through its Dig-image proposal tries to expand its market share throughout the world, it should be aware of the risks associated with foreign exchange exposure and the relevant mitigation strategy of hedging. Foreign exposure in the sense, the frequent fluctuations in the exchange rates will negatively affect the operating cash flows and importantly the dollar value of the SAI’s total assets and liabilities. This risk will have both short term as well as long term effect and could dent any new initiatives from SAI. This

Maintaining the Music Business while Introducing iPhone and Apple TV Essay

Maintaining the Music Business while Introducing iPhone and Apple TV - Essay Example Maintaining the Music Business while Introducing iPhone and Apple TV Apple also faces challenge in maintaining its core competencies relationship building, marketing, innovation, and brand management - as it moves on controlling the broader range of products and oversees wider markets. Wider customer base and new rivals brings on much variety of strengths and strategies. The entertainment and technology in itself are constantly updating. It is even uncertain that the Apple could bring on innovative design campaign for its brand reputation or launch new products or give out technological breakthroughs that will attract wider enjoyers. Moreover, the company’s products rather than depending upon the internally developed software and hardware depends on the ability to safe the media contents. Apple’s growth and success balancing stakeholder demands has even been facing problems. At times managing the clashing expectations of suppliers, partners, customers, investors, legal/governmental entities, and others put greater amount of stress on Apple's management team. Moreover the company is dependent upon its vision, Job’s charisma, relationship-building skill and mass communication put the Apple in to at risk in case of improper succession planning and the likewise non-proficiencies. An appropriate set of goals written and strived for would help ensure that Apple Computer remain updated with its current position in the market or otherwise. Apple success strategy also ensures steps are taken for copyrights infringement. http://www.apple.com/legal/trademark/claimsofcopyright.html A healthy way to obtain customer satisfaction and ensure constant growth for the company would be to make use of following dimensions: Dimensions for Success Financial Performance Measures: Cash Ratio - ( Cash Input over Cash Output comparison) Sales Ratio - (sales per 100 customers) N.P Ratio - (Net Profit on sales) Gearing Ratio - (Long Term Debt to Shareholders Equity) Stock Turnover Ratio - (Inventory to Cost of Goods Sold) Creditor turnover - ( Creditors to Cost of Goods Sold) Debtor turnover - (Debtors to Accounts Receivable) P.E Ratio - (Market Price to Earnings Per Share) MPS - (Market Price per Share) Non-Financial Performance Measures/ (strength and weakness analysis through inte rnal factors) Product life Cycle (stages through which a product moves) Labor Turnover (refers to movement of employees in and out) Analysis of stock-outs (out of stock events) Complaints re manuals

History Essay Example | Topics and Well Written Essays - 1500 words - 2

History - Essay Example In this essay I will attempt an outline of five of the earliest religions that are known including those of Ancient Greece and India, the early Islamic religion and the early religious views of Africa. However, to begin I will examine the religious views of the early Chinese civilization. In fact, in the early Chinese civilization there are said to have existed three separate doctrines. These doctrines were Confucianism, Buddhism and Taoism. The religions of Christianity and Islam are said not to have reached this region until the 7th century A.D. The ideas of Taoism are said to have originated in the 6th century B.C and were founded upon the thought of a man named Lao Tzu (although there are many who believe this man is purely a mythical figure). In reality, while Taoism can be viewed in terms of religious practice, it is essentially more of a system of philosophical thought. It is based on a few simple principles which include the belief that there is a kind of universal 'life-forc e' that is inherent in all things. Therefore, respecting and caring for all things is a vital element within this system, and individuals are duly encouraged not to use force but should rather be prepared to compromise and have faith in more natural forces. 2 Around a century later, Confucius (551-479 B.C) reacted somewhat against the teachings of Taoism and set about creating his own system that became known as Confucianism. Again, it can be argued that this system, while it is generally considered as a Religion of China, is in reality more focused on both political and social morality. Nevertheless, Confucianism was to become enormously influential, especially during the Han Dynasty that ruled from 206 B.C. until 220 A.D. In simple terms, this doctrine asserts that people should remain faithful to both their rulers and their Gods and that humbly carrying out their duties is the way to peace and happiness. Let us now move across the map and look at the religious views of Ancient Gr eece. In fact, the original motivation behind the religious views of the Ancient Greeks lay in a reaction against the 'gloomy' religion of Ancient Egypt. In addition, we find there is a fundamental difference between the religion of Greece and many others (including the above Religions of China) and that is the fact that it was not founded by any one figure and had neither sacred scriptures nor system of priestly hierarchies. The religious views of this country were in fact not limited to faith or belief but were rather focused on incorporating a positive practice into the quotidian life of its inhabitants. This is mainly due to the fact that the Greek gods were largely based on the image of man, and were little different with regards to character from man himself. For certain, the gods were seen as both stronger and more intelligent than mere mortals, but neither holy nor omnipotent. Therefore, man was regarded as their spiritual equal. 3 In particular, the people of Ancient Greece are said to have taken great joy in participating in the practice of looking into the future and thereby attempting to predict its outcome. For this reason the so-called 'oracles' were both much revered and respected. Of all the known oracles, the oracle known as Delphi was said to be the most revered of all. Delphi was in fact considered to be something of a 'center' for the earth and thus was consulted often with regards to matters of earthly significance. In fact, the

Feasibility study Essay Example | Topics and Well Written Essays - 750 words

Feasibility study - Essay Example A Feasibility study is an investigation of a proposed solution and the benefits of undertaking such an activity. The main Reasons why an organization conducts a study of such kind is that it helps them consider all the aspects associated with the activity and allows them to see whether they have the time and resources to implement such a system. Although it is done at the beginning of the project it can be detailed analysis (wisegeek) In this report we will analyze the current system that Bundberry uses to control their transport facility availed by the clients and the staff of the organization and then devise a plan to implement a new system that will integrate its entire system into one system using an ERP (Enterprise Resource Planning) system such as SAP in order to improve their booking system. We will also integrate an online booking system that will allow quick and easy way for the clients to use the service. Currently the organization is working on a very basic system that needs to be upgraded in such a way that it allows it to monitor and control their transport facility on a more real time basis so that they can ensure that there are no unnecessary costs incurred by the organization and that the booking system is efficient enough to provide timely service to the customers total satisfaction. An ERP system is a combination of core business practices and functions with the latest technology. (topbit). It integrates the core processes of the organization, enabling it to achieve its objectives using resources effectively and efficiently. These systems previously were only feasible for large organizations and companies to implement, However now with the help of online technologies, ERP can be virtually implemented by any kind and size of organization. It is software architecture at the heart of which lies the information that is the key to an organization’s success. At

Thai Food as a Cultural Product Essay Example for Free

Thai Food as a Cultural Product Essay The use of food as cultural products by tourism industry today affects the culinary heritages in negative senses Do you agree with this statement? Please explain and give example. Cultural products as a part of tourism industry have become an influential strategy in modern international trade. Food is one of the distinctive goods, which have popularly been brought to represent the country and the culture of its residents. However, surprisingly, the use of food as a cultural product by tourism industry today no longer fully displays the intellectual inheritance of the nation; on the contrary, it affects the culinary heritages in negative senses. Having become a cultural product, foreign-cuisine restaurants blossom in every part of the world. For instance, Thai food has become internationally popular because of its sophistication and variety. (Global Investment Center, 2008, p. 245) People can experience Thai cultures without practically going abroad through various choices of Thai food, which are available in their own countries. Nevertheless, often times, the food to which they expose is not a real representative of Thai culinary art since it is reduced in terms of cultural accuracy. There generally are some changes in ingredients due to some difficulties such as rare alien constituents, but, surprisingly, the changes in Thai food are usually not by reason of the lack but intentionally made. Thai cuisines served abroad are frequently modified. This does not occur from a misunderstanding of Thai cultures because several chefs in Thai restaurants overseas are from Thailand. Instead, this happens to be more because of customers; in other words, this is an effect of culture shock. Peter Adler describes culture shock as a five-stage educational and developmental process based on work by Kalvero Oberg and others – which are the honeymoon stage, the disintegrate stage, the reintegrate stage, the autonomy stage, and the interdependence stage respectively. Newly exposed individuals experience the curiosity and excitement of a tourist at first before they feel overwhelmed by the new cultures requirements. After that, they will express outer-directed anger and resentment toward the new culture before they gradually gain a balanced perspective of the two cultures and become fluently comfortable at last. (Pedersen, 1995, p. 3) The first two stages give an explanation to the Thai recipe modification case. Like any other cuisine, one dishful of true Thai food can be exciting and appealing while a repetition of it may not be as superb and may later cause to feel uncomfortable. When it comes to business, a dish per person is not adequate; a restaurant needs a regular customer. As a result, a number of Thai restaurants overseas choose to simplify their own recipes to make their diners feel less awkward with their menus so as to keep their visits. Even though, according to Adler’s theory, the culture-experiences will eventually get along with the real Thai food, the business has a tendency not to take the risk as the stake is too high. The loss of some ingredients due to changes in recipes does not only mean the loss of its taste but also the loss of Thai culinary heritages accumulated since hundreds of years ago, for the ingredients do not only flavor the food but have benefits both in terms of medicine and cookery as well. Even though Thailand was not scientifically advanced back in old times, Thais learned how to utilize herbs as medicament and put them in their food. For example, flowers of a Hummingbird tree in Tamarind paste soup can help balance the body systems, relieve a seasonal fever, and deodorize the soup when adding fish. Tom-Yum is another example. A variety of herbs in the spicy soup, apart from seasoning, can help digestion, prevent bloating, release gas, relieve a fever, and control sexual desire and blood pressure. The removal of some components from Thai food in Thai restaurants overseas without the least concern regarding the culinary heritages is, therefore, the neglect of cultures in a cultural product itself. So far, the existence of Thai food abroad as a cultural product has seemingly been disregarded at the same time as other exotic cuisines on account of several reasons. Diners usually do not truly get the essence of the cuisine or even have a misconception about the culinary art. As long as bean sprouts are still seen in Green curry served in Thai restaurants in the Unites States, using food as a cultural product might not be a good idea. Reference: Longrain: Modern Thai Food. Melbourne: Hardie Grant. Christofi, V. , Thompson, C. L. (2007). You cannot go home again: a phenomenological investigation of returning to the sojourn country after studying abroad. Journal of Counseling and Development, 85(1), 53-64. Global Investment Center. (2008). Thailand Country Study Guide. Washington, DC: International Business. Pedersen, P. (1995). The five stages of culture shock. Westport, CT: Greenwood. Smithies, A. (1952). Modern International Trade Theory and International Policy. In The American Economic Review: Vol. 42, No. 2, Papers and Proceedings of the Sixty-fourth Annual Meeting of the American Economic Association (pp. 168-176). N. P. : American Economic Association. Ward, C. , Bochner, S. , Furnham, A. (2001). The psychology of culture shock. Newyork: Routledge.

Apollo Group Essay Example for Free

Apollo Group Essay The Apollo Group was founded by John Sterling, a professor at San Jose State University, in 1976. They are a for-profit educational provider that specializes in educating working adults. The Apollo Group has many subsidiaries both domestic and abroad. The University of Phoenix- the largest private university in the United States Institute for Professional Development- a consultant service that provides private colleges and universities in the US with adult education program development, administration and management support The College for Financial Planning Institutes- a national leader in providing financial services education the and certification to people and companies in the financial services industry Meritus University- an online university with degree programs in Canada Apollo Global Inc- a partnership with The Carlyle Group that invest in international education services in various countries The University of Phoenix is their main subsidiary and has an enrollment of over 550,000 students. They provide undergraduate, masters and doctorial programs both online and at on-campus locations in 40 states. Since the University of Phoenix is a for-profit educator, they recognize their students as customers and have tailored their business to fit the educational needs of their customers. Their programs are geared toward working adults; they are able to educate their customers at a rapid pace with low overhead. They have simple online platforms that are easy to use and their on-campus locations consist of basic classrooms. Since their primary customers are working adults and commuting students, they do not invest in building dorms, student unions or recreational facilities at these on-campus locations. Current Issues While this business model has been profitable for Apollo Group, there are some concerns that will force them to adjust their plan. Because of the perception that online classes are ineffective, and proprietary colleges and universities are degree factories that are not providing a quality education, prestigious universities are sticking with traditional programs. This perception is shared by potential students and their employers. Apollo needs to improve the reputation of their brand. The federal government has put some regulations in place to ensure that proprietary educators are educating students and not pushing them through their programs and granting degrees to create a revenue stream from federal financial aid and student loans. The Gainful Employment Rule- If programs fail the three test of gainful employment three times in a four year span they will not be eligible to receive federal financial aid dollars. The 90/10 Rule- If the institution get more than 90% of its cash revenue from student loans, the institution cannot participate in student federal loan programs. Student Loan Defaults- The federal government sets a three year default limit on cohorts of students. If the students’ loan default rate of the cohort drops below the limit, the institution cannot participate in student federal loan programs. In addition to the negitive reputation and government regulations, the Apollo Group is facing competition from both traditional and proprietary educators. As the technology increases, more schools are investing in their distance learning programs. Apollo will need to find a way to differentiate themselves from these institutions. Recommendations I think the Apollo Group should leverage the relationships that their other subsidiaries have built with their clients, as well as the ones their professors have with their employers, to get input on redesigning their degree programs. If done properly these programs will set industry standards and change the reputation of the University of Phoenix. These redesigned programs should create more employment opportunities for their graduates and help them pass gainful employment test. Working with major corporations to create these programs and gaining their public endorsement will give them an advantage over their competitors. While their business model does not include the extra amenities of a traditional university, the University of Phoenix needs to invest in career counseling and job placement services to help their students find good jobs, this will increase the likelihood of being in compliance with federal regulations. They should also develop a business case showing how the 90/10 rule will cause them to deny enrollment to low income students and petition elected officials who serve low income areas to modify some of the federal regulations that they are governed by. Wall Street Metrics As of this writing, The Apollo Group, with a ticker symbol of APOL is trading at $20.83 per share. Its 52-week high was $29.47 and its low was $15.98. It has a P.E. ratio of 8.54% compared to 24.38% of the SP 500 and 36.39% for the sector. Its dividend yield is 0 compared to 1.85 of the SP 500 and 2.14 of the sector. It has a Beta measurement of 0.70. Based upon my analysis, I would not currently purchase this stock. Post Script The University of Phoenix recently had some trouble retaining their accreditation. A peer group with The Higher Learning Commission, a member of the North Central Association of Colleges and Schools, recommended that they be put on probation. â€Å"Specifically, the review team concluded that the University of Phoenix has insufficient autonomy relative to its parent corporation and sole shareholder, Apollo Group, Inc., to assure that its board of directors can manage the institution, assure the university’s integrity, exercise the board’s fiduciary responsibilities and make decisions necessary to achieve the institution’s mission and successful operation.† 1 The Apollo Group was able to work with the HLC’s Institutional Actions Council First Committee to retain its regional accreditation, but that the university will be placed on notice for two years. In efforts to retain students by reducing the cost of tuition, the university has created a scholarship reward program that gives eligible undergraduate degree students up to $10,000 in tuition reductions. They also instituted a tuition freeze so students will not have tuition increases as long as they are consistently enrolled in classes.