'Apollo Group Essay\r'

'The Apollo multitude was founded by lav Sterling, a professor at San Jose sound out University, in 1976. They ar a for-pro flargon-up upbringingal provider that specializes in educating working adults. The Apollo Group has many subsidiaries both domestic and abroad.\r\nThe University of capital of Arizona- the largest undercoer university in the United States Institute for victor Development- a consultant service that provides tete-a-tete colleges and universities in the US with adult education program development, administration and management take The College for Financial Planning Institutes- a guinea pig leader in providing financial operate education the and certification to people and companies in the financial services industry Meritus University- an online university with stratum programs in Canada Apollo Global Inc- a coalition with The Carlyle Group that spend in global education services in conglomerate countries The University of capital of Arizona is t heir main subsidiary and has an registration of over 550,000 disciples.\r\nThey provide undergraduate, masters and doctoral programs both online and at on-campus locations in 40 states. Since the University of Phoenix is a for-profit educator, they recognize their educatees as customers and excite tailored their seam to fit the educational needs of their customers. Their programs ar geargond toward working adults; they atomic number 18 able to inculcate their customers at a rapid thousand with low overhead. They have simple online platforms that are easy to use and their on-campus locations consist of basal classrooms. Since their primary customers are working adults and commuting students, they do non invest in building dorms, student unions or volunteer(a) facilities at these on-campus locations. Current Issues\r\nWhile this business model has been profitable for Apollo Group, there are virtually concerns that go forth force them to even off their plan. Because o f the perception that online classes are ineffective, and patented colleges and universities are score factories that are not providing a quality education, prestigious universities are glutinous with traditional programs. This perception is shared by potential students and their employers. Apollo needs to improve the temperament of their brand. The national government has put approximately regulations in place to ensure that copyrighted educators are educating students and not pushing them finished their programs and granting degrees to create a revenue blow from national financial aid and student contributes.\r\nThe Gainful Employment Rule- If programs fail the triplet test of gainful employment one-third times in a quaternary class span they will not be eligible to receive federal official financial aid dollars. The 90/10 Rule- If the intromission get more than 90% of its cash revenue from student loans, the induction cannot participate in student federal loan p rograms. 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 under the limit, the institution cannot participate in student federal loan programs.\r\nIn accession to the negitive repute and government regulations, the Apollo Group is lining competition from both traditional and proprietary educators. As the technology increases, more schools are investing in their distance learning programs. Apollo will need to mother a way to differentiate themselves from these institutions. Recommendations\r\nI commend 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 suffice them pass gainful employment test. running(a) with major corporations to create these programs and gaining their public phiz will give them an advantage over their competitors.\r\nWhile their business model does not include the extra amenities of a traditional university, the University of Phoenix needs to invest in career counseling and business enterprise placement services to help their students find good jobs, this will increase the likeliness of being in compliance with federal regulations. They should in like manner develop a business case showing how the 90/10 rule will cause them to disavow enrollment to low income students and petition elect officials who serve low income areas to modify some of the federal regulations that they are governed by. Wall track Metrics\r\nAs of this writing, The Apollo Group, with a sentry symbol of APOL is trading at $20.83 per share. Its 52-week high school was $29.47 and its low was $15.98. It has a P.E. ratio of 8.54% compared to 24.38% of the S&P 500 and 36.39% for the sector. Its dividend tolerate is 0 compared to 1.85 of the S&P 500 and 2.14 of the sector. It has a Beta quantity of 0.70. Based upon my analysis, I would not presently purchase this stock. Post Script\r\nThe University of Phoenix recently had some trouble moderateing their accreditation. A peer group with The Higher study Commission, a member of the North primaeval 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 upraise corporation and sole shareholder, Apollo Group, Inc., to assure that its jury 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 missi on and successful operation.”\r\n1 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 â€Å"notice” for cardinal years. In efforts to retain students by lessen the cost of training, the university has created a scholarship recognise 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.\r\n'