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Appolo Group

In: Business and Management

Submitted By chill805
Words 2506
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Abstract This report discusses the details of the evolution of Apollo Group, Inc. [University of Phoenix] and the 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 various reasons. The government is watching them for unethical practices, non-profit higher education institutions are making sure that Apollo Group, Inc., does not undercut the value of their work, and competitors are angling to find an edge whereas to take advantage of. If Apollo Group, Inc. wants to continue to be at the forefront of the non-profit education market they must stay on the federal government’s good side. If they fail to do so, Apollo Group, Inc. can look towards more government scrutiny, and possible devaluation of their degrees, which would negatively impact its consumers/students and consequently their shareholders.

Organization Apollo Group, Inc. [University of Phoenix] was founded in 1976, by John G. Sperling a Cambridge University PhD, “[Sperling’s] goal was nothing less than to turn conventional higher education on its head. (Pearce II, J.A. & Robinson, R.B. 2011) The University of Phoenix, under the helm of Sperling, was founded on the notion of rather than catering to 18- to 22- year-olds (traditional undergraduate students), looking to find themselves, focus instead would be given to the then-neglected market of working adults. Along with this then unconventional student population, the other decision which was made was to hire, working professionals as teachers in lieu of tenured professors. (Pearce II, J.A. & Robinson, R.B. 2011) While the above two practices were unconventional, the most drastic decision by Sperling, was to operate the university as a for-profit institution. This ran counter to nearly all other institutions of higher learning, which were predominately non-profits. (Pearce II, J.A. & Robinson, R.B. 2011) Presently the Apollo Group, Inc., and through its subsidiaries, University of Phoenix, Apollo Global (Western International University), College for Financial Planning, and Institute for Professional Development, has established itself as a leading provider of higher education programs for working adults by focusing on servicing the needs of the working adult. (Apollo Group, Inc. 2011)
• The University of Phoenix [UOP]- the largest private university in the U.S. and source of the majority of the Apollo Group’s revenue. Operates its campuses online, and in person.
• Apollo Global (Western International University)- adapts the Apollo model with younger professionals that seek individualized instruction through campuses in Arizona, and more recently China, India, and the Netherlands.
• The College for Financial Planning- one of the nation’s leading providers of financial services education for individuals and corporations in the financial services industry.
• Institute for Professional Development- provides adult-education program development and management consulting services to 23 regionally accredited private colleges and universities. (Pearce II, J.A. & Robinson, R.B. 2011) As of 2007, the Apollo Group network spanned 101 campuses and 165 learning centers in 39 states and five other countries. Tuition at Apollo averages only $10,000 a year, 55% of what a typical private college charges. (Pearce II, J.A. & Robinson, R.B. 2011)
Brief Company History In the early 1970's, at San Jose State University in San Jose, California, Sperling and several associates conducted field-based research in adult education. The focus of the research was to explore teaching/learning systems for the delivery of educational programs and services to working adult students who wished to complete or further their education in ways that complemented both their experience and current professional responsibilities. At that time colleges and universities were organized primarily around serving the needs of the 18-22 year-old undergraduate student. (Apollo Group, Inc. 2011) Other than holding classes at night (and many universities did not even do this), no efforts were made to accommodate the needs of working adults. No university offices or bookstores were open at night. Students had to leave work during the day to enroll, register for classes, buy books or consult with their instructors and advisors. Classes were held two or three nights per week and parking was at the periphery of a large campus. The consequence, according to Sperling, was that most working adult students were unable to finish a four-year program in less than eight years, or a two-year program in less than four years. (Apollo Group, Inc. 2011) Sperling's research convinced him that there was a growing need for institutions that were sensitive to and designed around the learning characteristics and life situations of the working adult population. He suggested how these institutions would pioneer new approaches to curricular and program design, teaching methods, and student services. These beliefs eventually resulted in the creation of University of Phoenix. (Apollo Group, Inc. 2011) As a result of the creation of the University of Phoenix, adult education was moved from being a non-profit model, to a for-profit venture. This venture has had the result of bringing close scrutiny from other institutions of higher learning, and the U.S. government. One such example of higher learning establishments, and their scrutiny of the University of Phoenix, is in some labeling the University of Phoenix a “diploma mill”. In addition, in 2005, the Apollo Group’s reputation was tarnished in a report by the U.S. Education Department, which depicted the tactics of the University of Phoenix recruitment efforts as being high-pressure that “resembled a telemarketing boiler room more than a university admissions office”, and this allegation violated the federal student loan program. As a result of the report, Apollo Group, Inc. paid the federal government a fine of $9.8 million, without admitting guilt. (Pearce II, J.A. & Robinson, R.B. 2011)

Corporate/Consumer Culture
[Apollo Group, Inc.] Ethical Principles These are the ethical principles that define our ethical culture and that distinguish us globally as the Apollo community.
• We intend to invest in ourselves and Apollo through our individual and collective dedication.
• We conduct ourselves with honesty, integrity and the highest ethical standards.
• We celebrate and reward our successes and encourage and support each other.
• We believe that the way we do our business is as important as the business results we achieve.
• We honor our commitments and promises; we do not promise what we cannot deliver.
• We contribute to the communities in which we work and live by being good global, corporate and individual citizens.
• We abide by and comply with the laws, regulations and rules that govern us wherever we operate in the world.
• We will not sacrifice our values or our goals for the “quick win”; we are focused on building long-term success, stability and excellence.
• We are committed to providing world-class service to our students, customers, partners, shareholders and each other.
• We encourage each other to grow and excel by creating a workplace that is the job of choice.
• We embrace and support our diversity and demonstrate respect for all.
• We take responsibility for our mistakes and learn from then in order to continuously grow and improve. (Apollo Group, Inc. 2011) With regards to the above corporate culture/ethical principles of Apollo Group, Inc., they present the notion that they are first and foremost ethical in their business practices, and as a result this dictates all of their actions/reactions. Our Mission Statement
Apollo Group’s mission is to strengthen and capitalize on our position as a leading provider of high-quality, accessible education for individuals around the world by affording strong returns for all of our key stakeholders: students, faculty, employees, and investors. (Apollo Group, Inc. 2011) As shown in their above mission statement, in being able to create this corporate culture, Apollo Group, Inc. is actively working on maintaining a relationship with its, students, followed by its faculty employees, and finally their investors. What is interesting to note is the order of the above said relationships. Apollo Group, Inc. is putting its students before its shareholders. What is of interest here is that given the Apollo Group, Inc. is a for-profit institution, having the shareholders last runs counter to their goals. Marketing History/Successes By looking at Apollo Group, Inc.’s, corporate/consumer culture it is evident that they present themselves first and foremost as being an ethical organization. While this may be debatable given the payout of their previously mentioned legal trouble, one thing that is certain is that they have exploited the market and positioned themselves at the top of the for-profit education market. (Pearce II, J.A. & Robinson, R.B. 2011) The fact that they have spearheaded various institutions alongside their University of Phoenix line, gives credibility to their business model in that they are returning profits to their shareholders.
Competition/Obstacles
The Apollo Group, Inc. has various issues with competition attempting to mimic and step in on their approach to working adult education. However the Apollo Group, Inc. has been able to maintain their ground in the for-profit education business and one such method is by tapping into high school markets and making themselves accessible to those institutions. In doing so, this is beneficial for the Apollo Group, Inc., and also detrimental. It is beneficial because, it allows students to be familiar with the University of Phoenix and their methods of education, which is largely internet based instruction. The manner in that it is perceived as being detrimental is that students are not afforded as much in interaction with their peers at a young age and this can produce socially inept workers. (Pearce II, J.A. & Robinson, R.B. 2011) Another obstacle that faces the Apollo Group, Inc. is the perception that internet based education is not equivalent or at minimum, not as prestigious as attending a “brick and mortar” institution. Finally, given Apollo Group, Inc. is a publically owned and traded stock they have lengthier, and more involved government oversight. This can range from the Securities and Exchange Commission (SEC), to the U.S. Education Department. While this in itself is not a bad thing, the fact still remains that the Apollo Group, Inc. must remain extra vigilant, so as not to create “issues” for themselves, and these government institutions. Goals Presently the University of Phoenix has the following strategy in place, with the following six elements:
• Establish New University of Phoenix campuses and Learning Centers.
• International Expansion
• Enhance Existing Education Programs
• Expand Educational Programs
• Serve a Broader Student Age Group
• Market Aggressively
(Apollo Group, Inc. 2011) By incorporating these goals, the Apollo Group, Inc. is hoping to continue maintaining the position that it holds.
SWOT Analysis In light of the complexities surrounding the public relations image of Apollo Group, Inc. they have been very resilient. In conducting a SWOT analysis of this organization, several things made themselves evident: Strengths: strong brand image, proven financial performance. Though Apollo Group, Inc. had initial difficulty in marketing its services, they have made a turn around, and have become synonymous with the idea of online university. Weaknesses: Apollo Group, Inc. has had issues in validating the worth of their degrees/programs they offer in comparison to non-profit organizations. Apollo Group, Inc. must find better ways to market themselves as a prestigious university, which competes on the same level as non-profit institutions, but at the same time continue to undercut the costs of traditional college/university education. Opportunities: Apollo Group, Inc. has a strategy in place to strengthen its image with the public. By following through with their six elements strategy, they are able to position themselves better, to overcome the lack of prestige perception that they have. They are actively working to enter more high school markets, effectively creating a new user base that may be adept at using their training methodology and continue doing so. Furthermore, Apollo Group, Inc. continues to expand their online presence to foreign/international markets, and in doing so they are still in the process of maximizing their user base. Threats: While the Apollo group does have competition in the form of other institutions, the largest threat is not the other institutions, but the federal government itself. As previously stated, the Apollo Group, Inc. is being watched closely by various departments of the federal government for improprieties that they may commit, and if they are caught the fines are not just part of the consequences, but the impact on their public image can be negatively affected. Apollo Group, Inc. needs to be very careful as it has already demonstrated that it is willing to make a large payout at the mere allegation of wrongdoing. With regards to the SWOT analysis, it is recommended that the Apollo Group, Inc. focus on eliminating its “Threats” first, or at the very least mitigating them. Since Apollo Group, Inc. is at the top of the for-profit education market, they are being watched by many institutions for various reasons. The government is watching them for unethical practices, non-profit higher education institutions are making sure that Apollo Group, Inc., does not undercut the value of their work, and competitors are angling to find an edge whereas to take advantage of. If Apollo Group, Inc. wants to continue to be at the forefront of the non-profit education market they must stay on the federal government’s good side. If they fail to do so, Apollo Group, Inc. can look towards more government scrutiny, and possible devaluation of their degrees, which would negatively impact its consumers/students and consequently their shareholders.

References
Pearce II, J.A. & Robinson, R.B. (2011). Apollo Group, Inc. [University of Phoenix]
Strategic Management, Formulation, Implementation, and Control 7/1-7/18, New York, NY: McGraw Hill

Apollo Group, Inc. (2011). Apollo Group. History. http://www.apollogrp.edu

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Coca-Cola

...continental divisions. * Eurasia & Africa Group * Europe Group * Latin America Group * North America Group * Pacific Group Each Continental division has vice presidents that control sub-divisions based on regions or countries. This structure is efficient for Coca-Cola since it is a very large company. * How do they operate? Coca-Cola is as an ethnocentric MNC because its domestic operations are very similar to its international operations. Regardless of the country or region, Coca-Cola operates the same way and sells the same brand and type of soft drink. The company has tight control over its operations from head office. * Does the organization have divisional managers? There are divisional managers, head of each regional division. Functional managers are head of human resources, innovation and development, marketing and public affairs. The knowledge gained from doing this will give the organization a better understanding of its bottling partners. * Specialization and Coordination: * Multi visional structure allows divisional managers to handle daily operations while operating managers are free to follow long term planning. * A multidivisional matrix structure may be better suited for the coca-cola company. This would increase coordination between corporate and at all levels to create a solution to a problem. * Organizational Design * Two operating groups: bottling investment and corporate. Divided by different...

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