...Schools for Profit (7) Purpose and/or definition: -There are three types of for-profit schools. One: Educational Management Organizations (EMOs) which are primary and secondary institutions. They work jointly with charter schools or schools districts, using public funding to finance operations. Two: Post-Secondary institutions which operate like strictly as businesses. They acquire funding from enrollment fees (by each student). Three: K-12 schools which also operate as businesses. -According to Kevin Carey (director of the educational policy program), “For-profit schools exist in order to fix educational market failures left by traditional institutions. They profit by serving students that private/public nonprofit institutions too often ignore.” Background Information: -The largest for-profit venture in public schools is the Edison Schools. -In 1990, Benno Schmidt, the presidents of Yale University, was attending a party. There, Schmidt met Chris Whittle. Whittle was an entrepreneur who was involved with various education-related projects. Apparently, they hit it off. Whittle offered Schmidt a reported salary of 1 million dollars a year to leave Yale and assume leadership of the Edison Schools. Whittle planned to create a model school that was based on proven educational programs-which would later be nationally franchised. Characteristics: -Edison Schools lengthen school days by one to two hours and increased the school year from 180 days to 210 days. In total, these...
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...In recent years for profit schools in the United States have faced backlash. Under president Obama’s administration, the department of education heavily discouraged students from attending for profit education. (Coheen 2016) The department of education cited reasons like the significantly high overall debt in for profit school compared to their non profit counterparts. They account for 35% of defaulted debts while only being 27% of all college debts. For profit schools have been accused of targeting low income individuals and veterans. (Anderson& Taggart 2016). These individuals are often misled into thinking that they would have better jobs once they graduate, so they sign hefty loans or squander their GI bill on these schools. Some schools...
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...exciting, yet stressful time of our lives. The biggest problem we face about college is how much will it cost? Everyone wants to attend certain schools, but money always gets in the way. This causes students to reach towards community colleges, trade schools, and online universities. These schools offer the same degrees faster, but at a higher cost. Kevin Carey, director of the Education Policy Program, claims for-profit colleges have too many issues within and need to be reformed for the better. He points out that for-profit schools are not all that bad. These universities offer open doors for students turned down by traditional and private colleges who seek higher education. Christopher Beha complicates Carey’s argument that for-profit schools are a form of “higher education” by using providing evidence of how classes are at these universities when he posed as a student himself. Jane Clark extends Carey’s claim that these colleges are “money-making machines” by supporting a look at how for-profits make their money. Lastly, an article by Melissa Korn from the Wall Street Journal clarifies Carey’s assertion of how for-profit graduates are not getting jobs because employers are turning down their “low-value” degrees. College is a time for many students to gain a higher form of education. Carey argues that classes taken at for-profit colleges offer are equivalent to traditional colleges. Christopher Beha, editor of Harper’s Magazine, gives a different perspective as to how these...
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...For-profit schools have not been faring too well on Wall Street lately. The stock price of Apollo Group, the owner of the University of Phoenix, has dropped by 80 percent from its peak. Career Education Corporation is also down 80 percent; ITT Education, 96 percent; DeVry, 50 percent. Corinthian Colleges, now in bankruptcy, is trading at under a penny a share, less than one percent of its value just over a year ago. The collapse of for-profit stocks may be just the wake-up call that is needed to prompt a restructuring of the industry and of its oversight. But a telling error in Friday’s coverage of the plunge serves as a sobering reminder of just how difficult it can be to keep education entrepreneurs’ eyes on the right prize — quality and...
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...into different markets. Competition to the University Of Phoenix There are four market structures commonly used to group and describe industries. The market structures include pure competition, pure monopoly, monopolistic competition, and oligopoly (McConnell, Brue, & Flynn, 2009). University of Phoenix (UOPX) is a school that offers various degrees in various fields. UOPX is not the only school on the market and eliminates the possibility of UOPX participating in a pure monopoly. An oligopoly market structure does not apply as well because a large number of programs are available from different schools. Pure competition market structure does not apply as well because UOPX has some control over their product price. Monopolistic competition is the most applicable market structure for UOPX. There are many schools that offer the same type of degrees and programs. University of Phoenix is one of the leading schools in its industry and as modern technology continues to change so does the university. One of the biggest barriers facing University of Phoenix and other schools is pricing. Differentiation of Products from Competitors The many schools must differentiate their products from other competitors. The type of product UOPX provides may not fit the monopolistic competition model but consumers are left to determine the value of the...
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...Financial Management Analysis and Trends: For-Profit Schools 06/13/2012 ED 7837 TABLE OF CONTENTS Introduction……………………………………………..………………………………………..……………………………………..3 Abstract………..…………………………………………..…………….………………………………………………………………..3 Where the money comes from: Revenue sources……………………………..….……..……………………………5 Pricing and discounting practices within institutions..…………………………...………………………………….6 Where the money goes: Standard expense categories……………………….….……..…………………………7 What is tuition discounting…………………………………………………………………...………………………………...8 Tuition discounting is attractive to higher education institutions..……………………………….………….9 Negative consequences to tuition discounting………………………………….……………..……………….…..10 For-Profit and Distance Learning Schools.……….……………………………….…………………………………...12 Trends in revenue and funding………………………………………………………….…...……………………….…….11 Gainful employment.……………………………………………………………………………….…………………………….13 Solutions……………….…………………………………………………………………………..……….………………………….14 Conclusion………………………………………………………………………………………….……….…………………………15 References…………………………………………………………………………………………………………………………….16 Introduction The most important investment that someone will make in life is education. It sets the foundation for one’s professional life and career. Education needs to be accessible to everyone who chooses to pursue it. This means that education should be accessible both in a classroom, online, digital, for both non-traditional and traditional students. Having...
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...various marketing methods it used to become one of the premier for-profit educational institutions, and the various obstacles the company has been through to claim the spot that it currently holds, in the business, and education arenas. It should be noted that much of Apollo Group, Inc. [University of Phoenix] success, lies on the fact that they were the first institution that pioneered online education. They have paved the way that other institutions mimic when attempting to venture in this type of setting. As a result they have capitalized on this and have used the lessons learned to leverage their brand into other areas, such as online high school education, and international markets. However, as Apollo Group, Inc. innovates, and their profits grow, the other educational institutions have been cautious about the true value of the quality associated with their degrees; the federal government has been attentive on Apollo Group, Inc.’s practices associated in recruiting students. Due to these complications Apollo Group, Inc. has had to examine its ethics policy, in order to mitigate these threats, and consequently a: Strengths, Weakness, Opportunities, Threats (SWOT) analysis, was conducted. With regards to the SWOT analysis, it is recommended that Apollo Group, Inc. should focus on eliminating its threats first or at the very least mitigate them. Since Apollo Group, Inc. is at the top of the for-profit education market, they are being watched by many institutions for...
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...name based on my current employment with the company). XYZ University is a publicly traded, global, for-profit higher education provider. The size of the company is at 12,000 full-time employees. The type of industry that we service is categorized under Education & Training Services. Our product/services are different level degree programs such as; Associates, Bachelors, and Masters within the U.S. and a few other countries. The company I currently work for is a for-profit school (college), and they are undergoing a major structural change in how we do our business based on Department of Education standards. There are many integral strategic changes taken place at one time with regards to the Department of Education and Title IV HEA funding for all colleges. Some locations have been closed, the morale and culture of XYZ has completely changed. Yet, if we added quality management in conjunction with people management, there must be a way to successfully get the entire organization on the same page. There is a sincere need for a concise quality management aligned with the business strategy, mission, and goals for our entire department. When you work in the Admissions department for a for-profit college, your job is very similar to that of a sales person versus a recruitment expert. You have to do a lot of both, because it is your job to encourage students to attend your school, and then take them through their entire admissions process. The Department of Education is completely okay...
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...Running head: MANAGING ORGANIZATIONS & LEADING PEOPLE Managing Organizations & Leading People Cheu ly wgu Managing Organizations & Leading People A1. Three years have gone by since Kaplan University Online restructured its business model. I was part of the massive laid off that shook the online for-profit schools back in the fall of 2011. Who is Kaplan University Online? Kaplan University Online is a division of the Washington Post (Hechinger, 2013, ∂ 1) an online university of higher learning education offering certificates, associates, bachelors and graduate degrees (Kaplan University, n.d., ∂ 1). Kaplan’s mission and market niche was to enroll adults or working adults who want to complete a college degree but neither has the time to enroll in a traditional campus. That being said, Kaplan was new player in the market competing against other for profit schools such as Devry Institute, ITT, Phoenix University to name a few. In 2007, I was recruited by Kaplan’s HR department to work as an inside sales representative. Myself and 12 other individuals went through a 2-week training class covering Kaplan’s culture, Fafsa (free application for student aid), compliance and boilerplate sales script. The training was intense and strict focusing mostly on the sales script and preaching Kaplan’s ethics, integrity and mission. Like any other jobs I had before this; I took the challenge seriously and was focus on becoming the best at my trade. After my first week on the...
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...A Case Study of the Illegal and Unethical Behavior in Corinthian Colleges, Inc. Benancio Varela benancio.varela@yahoo.com GM 591 Leadership and Organizational Behavior Professor Horst August 10, 2011 Introduction Corinthian Colleges, Inc., (CCi) by way of more than 102,000 students enrolled as of March 31, 2011, is one of the leading post-secondary education companies in North America. Their duty is to change students' lives. They present diploma and degree programs that prepare students intended for careers in demand or for advancement in their chosen fields. The corporation operates 105 schools in 25 states and 17 schools in Canada. CCi has 122 Everest, Heald and WyoTech campuses nationwide. CCi serves the great and growing segment of the population seeking to acquire career-oriented education. They propose programs in areas that include health care, business, criminal justice, transportation technology and maintenance, construction trades and information technology. CCi in addition offers students the chance to take classes online through Everest College in Phoenix and Everest University in Florida. Their business was founded in 1995 and they completed an preliminary public offering in 1999. Historically, CCi has developed through acquisitions as well as through organic growth. Organic growth consists of opening new division campuses, remodeling, escalating or relocating existing campuses and adopting curricula into existing colleges. As of December 31, 2010...
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...graduation rate. From a report in 2011, Strayer University had an average graduation rate of fourteen percent. There are a few factors that cause the graduation rate to be low. Strayer University is in the category of a for-profit institution. For-profit institutions usually do not offer electives to students. "For-profits offer highly structured programs, with no electives. You're on a clear path." (Clark, 2011) For-profit institutions have a higher tuition than other schools. Many of the students borrow in the form of federal loans or receive federal grants to attend these schools, thus created a large amount of debt for students. This does, however, increase the profits of the school. For-profit schools do not make money the way other schools make money off of state grants and scholarships. Some of the students that attend for-profit institutions are not prepared for the type of courses that are offered there. Some of the students are not disciplined enough to sign onto the school’s website for the course material and follow the lesson plan, if the student is enrolled in an online course. There are also students that are attending nontraditional schools because they are the first in their family to attend school. Many of these students tend to drop out of school and default on their loans. The decision makers for the university should began negotiations to manage any conflicts surrounding the success of their students completion of the degree program they enroll in. “Negotiation...
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...There are several important differences between proprietary degree-granting institutions and traditional institutions. The most fundamental difference is related to the for-profit motive of the proprietary institution; for-profits are in business to realize return on investment for stock holders while traditional institutions hold special status as nonprofits and reinvest profits to the institutions (Hawthorne, 1995; Lee & Merisotis, 1990). The for-profit motive, coupled with a lack of governmental oversight, created a crisis in the 1970s within proprietary education as unscrupulous school owners took advantage of increased tax-supported funding for higher education. Problems increased in the 1980s and early 1990s manifested by rising student loan default, low program completion, and dismal job placement rates (Hittman, 1995; Honick, 1995). Moreover, there were accusations of “questionable business practices, aggressive marketing tactics, misleading advertising, and poorly-constructed educational programs” (Schulz, 2000, p. 17). In response to these scandals, state and federal officials enacted quality review systems “to protect consumers from deceptive and unfair practices, [and to] assure quality education through the establishment of minimum standards” (Foster, 2004, p. 2). For-profit schools must now comply with strict licensing and accreditation requirements; institutional performance is measured in terms of student retention, job placement, loan default rates, and federal...
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...Inventory Proposal University of Phoenix is a for-profit university initiated in 1976 by John Sperling (Kinser, 2006). The university originated in the Phoenix metropolitan area and started with only eight students (Kinser, 2006). Sperling wrote about the origin of University of Phoenix and refers to it as “Rebel with a Cause” (Kinser, 2006, para. 2). Sperling experienced much opposition in getting UOPX in operation to help underserved and hard working adults further their education. Thanks to his determination and confrontational side, Sperling is 88 and can see UOPX having a net worth of $9 billion (Kinser, 2006). University of Phoenix is top on the list of for-profit universities. They enroll more than 230,000 students and have 170 throughout the United States (Kinser, 2006). It is apparent to past critics that universities who provide opportunities for working adults are growing at a rapid rate. More students are leaning to online schools and universities to advance with higher degrees. One thing plaguing the United States is the economy. The cost of tuition is steadily increasing, making it more difficult for students to afford education without the help of scholarships, grants, and student loans. It is said that for-profit universities depend heavily on federally funded students to stay afloat financially (Field, 2011). There are reports and suits filed from past instructors who claim that for-profit universities were making them increase students’ grades to...
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...The GI Bill: How the Affects Changed a Nation For over six decades the GI Bill has been a staple for education in the United States for military and the veterans who have defended its citizens and country. So, why was the GI Bill (Servicemen’s Readjustment Act) established? The events in World War II would play an integral role in the outcome and stability of this military educational reform legislation. In 1944, World War II changed the face of the world. Many families were left to “fend” for themselves to prevent their stagnation and fears that their loved may not return home from war. Many that served in the war, as young as ages 17 and 18, were placed into regiments encompassed from Pearl Harbor in Hawaii, spanning all the way across the Pacific Ocean into Japan. As the war drew down and troops began to return to the states, many concerns were raised by the government that individuals looking for work could potentially impact the U.S. economy. Although the reasoning for the GI Bill was in fact an actual ploy to offer a way to infer the immense and already growing number of “veterans” [returning home from] “World War II” (Greenberg 2008). The United States government expressed further “political…fear” of a “sudden” influx of “nearly 16 million veterans” (Greenberg 2008). As the years progressed, through the Vietnam and Korean Wars, it became more evident that the GI Bill would maintain its use to educate and in part influence economic reform. During the...
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...bad credit, and few job perspectives. This can happen to students no matter what school they choose to attend but it happens more often to students who attend for-profit colleges. This is what happened to Jeff Sutherland; a thirty-two-year-old Army veteran with a wife, two small children, and nearly forty-thousand dollars of debt from student loans. Sutherland was discharged from the Army after receiving an injury....
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