Apollo Group Essay

The Apollo assembly was founded by John Sterling, a professor at San Jose State University, in 1976. They are a for-pro oblige educational pop the questionr that specializes in educating working adults. The Apollo Group has many subsidiaries both domestic and abroad.The University of capital of Arizona- the largest undercover 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 concern 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 story programs in Canada Apollo Global Inc- a union with The Carlyle Group that invest in international education services in various countries The University of Phoenix is their main subsidiary and has an registration of over 550,000 scholars.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 disciples as customers and generate tailored their business to fit the educational needs of their customers. Their programs are geared toward working adults they are up to(p) 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 main(a) customers are working adults and commuting scholars, they do not invest in building dorms, student unions or recreational facilities at these on-campus locations. Current Issues slice this business model has been profitable for Apollo Group, there are some(prenominal) concerns that pull up stakes 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 cohesive with traditional programs. This perception is shared by potential students and their employers. Apollo needs to advance the re tack togetheration of their brand. The federal government has put some regulations in space to ensure that proprietary educators are educating students and not pushing them through their programs and granting degrees to form a revenue stream from federal financial aid and student loans.The Gainful Employment Rule- If programs fail the three test of gainful mesh three times in a four year drag they entrust 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 do-nothingnot participate in student federal loan programs. Student Loan Defaults- The federal government sets a three year neg lectfulness 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 engineering science increases, more schools are investing in their distance learning programs. Apollo will need to breakthrough a way to differentiate themselves from these institutions. RecommendationsI think the Apollo Group should leverage the relationships that their other subsidiaries have built with their clients, as intumesce as the ones their professors have with their employers, to get input on redesigning their degree programs. If make properly these programs will set industry standards and change the reputation of the University of Phoenix. These redesigned programs should have more employment opportunities for their graduates an d help them pass gainful employment test. on the job(p) with major corporations to create these programs and gaining their public endorsement will give them an receipts over their competitors.While their business model does not include the excess 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 entry with federal regulations. They should also develop a business case exhibit 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 MetricsAs 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 S&P 500 and 36.39% for the sector. Its dividend yield is 0 compared to 1.85 of the S&P 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 ScriptThe University of Phoenix latterly had some trouble retaining their accreditation. A peer group with The Higher learn Commission, a member of the North Central Association of Colleges and Schools, recommended that they be put on probation. 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 universitys integrity, exercise the boards fiducial responsibilities and make decisions necessary to achieve the institutions mission and fortunate operation.1 The Apollo Group was able to work with the HLCs Institutional Actions Council prototypal Committee to retain its regional accreditation, but that the university will be dictated on notice for two years. In efforts to retain students by trim down the cost of learning, 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.