Apollo Group Essay

The Apollo Group was founded by simply John Sterling, a professor at San Jose Point out University, in 1976.

They may be a for-profit educational service provider that specializes in training working adults. The Apollo Group has many subsidiaries both domestic and abroad. The University of Phoenix- the largest private school in the United States Commence for Professional Development- a consultant service that provides non-public colleges and universities in america with mature education program development, supervision and supervision support The faculty for Monetary Planning Institutes- a nationwide leader in providing financial services education the and recognition to people and companies inside the financial services industry Meritus University- an online school with degree programs in Canada Apollo Global Inc- a partnership together with the Carlyle Group that purchase international education services in a variety of countries The University of Phoenix is definitely their key subsidiary and has an enrollment of above 550, 000 students.

They offer undergraduate, professionals and doctorial programs equally online and for on-campus locations in 45 states. Because the University of Phoenix can be described as for-profit mentor, they identify their college students as buyers and have customized their organization to fit the educational needs with their customers. Their very own programs will be geared toward operating adults; most suitable option educate buyers at a rapid pace with low expense. They have straightforward online platforms that are user friendly and their on-campus locations include basic classes.

Since their particular primary consumers are working adults and commuting students, they just do not invest in building dorms, college student unions or perhaps recreational establishments at these on-campus spots. Current Issues While this kind of business model have been profitable to get Apollo Group, there are some worries that will pressure them to modify their strategy. Because of the understanding that online classes are unproductive, and private colleges and universities are degree production facilities that are not offering a quality education, prestigious colleges are sticking with traditional programs. This understanding is shared by potential students and the employers.

Apollo needs to increase the reputation of their particular brand. The federal government has put some regulations set up to ensure that proprietary educators are educating college students and not forcing them through their courses and approving degrees to create a revenue stream from federal financial aid and student loans. The Gainful Employment Rule- In the event programs are unsuccessful the three evaluation of gainful employment three times in a four year course they will not be eligible to receive federal financial aid us dollars.

The 90/10 Rule- If the institution drive more than 90% of their cash earnings from student education loans, the organization cannot engage in student government loan applications. Student Loan Defaults- The federal government pieces a three season default limit on cohorts of learners. If the students’ loan default rate of the cohort drops below the limit, the organization cannot participate in student national loan courses. In addition to the negitive reputation and government polices, the Apollo Group is usually facing competition from the two traditional and proprietary educators.

As the technology increases, more colleges are investing in their distance education programs. Apollo will need to find a way to differentiate themselves by these corporations. Recommendations I do believe the Apollo Group should leverage the relationships that their additional subsidiaries have got built with their clients, in addition to the ones their very own professors possess with their companies, to get input in redesigning their degree courses. If carried out properly these types of programs will set sector standards and change the trustworthiness of the School of Phoenix, az.

These remodeled programs should certainly create even more employment opportunities for graduates that help them pass gainful employment test. Dealing with major businesses to create these kinds of programs and gaining their public certification will give these people an advantage above their opponents. While their particular business model is not sold with the extra amenities of a traditional university, the University of Phoenix needs to invest in career counseling and job location services to aid their students find good jobs, this will increase the likelihood of being in compliance with federal restrictions.

They should as well develop a business case showing how the 90/10 rule will cause them to deny enrollment to low salary students and petition elected officials whom serve low income areas to modify some of the federal polices that they are ruled by. Stock market Metrics As of this writing, The Apollo Group, with a ticker image of APOL is trading at $20. 83 per share.

The 52-week high was $29. 47 as well as its low was $15. 98. It has a G. E. percentage of 8. 54% when compared to 24. 38% of the S&P and thirty eight. 39% for the sector. Its gross yield is definitely 0 compared to 1 . 85 of the S&P 500 and 2 . 14 from the sector. Excellent Beta way of measuring of 0. 70. Based on my research, I would certainly not currently get these stock. Content Script The University of Phoenix recently had some trouble maintaining their accreditation. A expert group while using Higher Learning Commission, a member in the North Central Association of Colleges and Universities, recommended that they can be put on probation.

Specifically, the review team concluded that the University or college of Phoenix has not enough autonomy relative to its father or mother corporation and sole aktionar, Apollo Group, Inc., to make sure that it is board of directors can manage the institution, make sure the university’s integrity, workout the board’s fiduciary duties and help to make decisions required to achieve the institution’s quest and effective operation. 1 The Apollo Group was able to use the HLC’s Institutional Actions Council First Committee to maintain its regional accreditation, but that the university will be positioned on notice for 2 years.

In efforts to maintain students simply by reducing the expense of tuition, the university has created a scholarship grant reward software that gives suitable undergraduate degree students about $10, 500 in college tuition reductions. In addition they instituted a tuition freeze out so students will not have college tuition increases given that they are consistently enrolled in classes.