please write half to 2/3 page executive summary for the paper i attached, please follow the instruction and be concise, the paper is not finished as final draft, but you can abstract the most important findings through the rough draft, and i will update the final draft tomorrow for you to better understand the details.
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Company Analysis Project
Table of Contents
Executive Summary … .
Introduction . …
External Analysis . . .
Strategy Identification ….
Recommendations .. . … ….
Bibliography … …
Executive Summary [0.5 page]
? Briefly state the companies you analyzed, and the industry they compete in (1
? List the most important strategic issues you identified for each company
? State the most critical recommendations you gave for each
? Just the most important findings
Be precise, to-the-point, and provide eye-catching findings from your report.
This summary should talk about the most important take-away of your report. Please
write in full sentences and dont use bullet points. Do not exceed 3/4 page
Introduction [0.5 page]
? Briefly state the industry you will analyze (you can include the SIC code as well)
? Provide general information (briefly) about the nature of this industry (history,
major changes across time, size, and geographic clusters, if any)
There are almost more than 20 million students enrolled in the university system
across the United States. Almost 15 million of those students study at public university
systems while over 5 million students are at private universities (Statista, 2020). The
United States has a unique higher education system where a lot of universities are
private and separate from state governments. Schools like Suffolk University operate on
their own president and board of trustees while schools like Southern New Hampshire
University are overseen by the state government. They both operate in higher education
but differ for numerous reasons. Since the start of the twentieth century the university
system has seen the internet completely change the way the industry operates. The
internet allowed schools, like Southern New Hampshire, to operate in a different way,
opening geographical roadblocks and offering more diversity to the student population.
The industry has also seen many changes in demographics, technological innovation
External Analysis [5 pages]
a) General Assessment of Environment
Todays college students are more diverse than ever. Since the year 2000, young
adult black enrollment grew from 25% to 33% and hispanic enrollment grew from 18%
to 31% of young adults. Women make up the majority of college students making up
56% of enrollment. 62% of students are full-time students while 62% hold some sort of
job and take classes. (Gates, 2019)
Universities are always dealing with changes in sociocultural influences.
Curriculum changes quickly and often. Increasing focus on diversity and inclusion are
forcing teaching methods to involve. Higher-end schools are now offering extension
schools, online teaching programs, or partnerships with international schools.
Universities are also responsible for creating environments productive to students
learning. Creating student groups, open lines of communication from department level
down, and support networks are important for the sustainability of universities.
Communication with students is critical for the development of community. Universities
have to be vigilant on what students want from a University. What students want
nowadays is going to be outdated in ten years. (Altbach, 2020)
Legal / political
The University system is highly dependent on changes in the U.S. government.
The United States Constitution states that education is the responsibility of the states.
Whether you are a public or private university the state regulates the tuition charges,
grant programs, and certain loans. The extent that the state government regulates at a
university changes on a state by state basis. The federal government also plays a role
in the system. They offer special grants, set up programs for students and offer free
tuition for those who serve in the military. The federal government regulates certain
things such as course work, athletic programs such as Title IX, and the Disability Act.
Any University that accepts money from the government is held to regulation and
requirements. (Altbach, 2020)
Universities are always at the forefront of technological advancement, oftentimes,
being the reason new technology is adopted. Many Universities have innovation hubs
set up to help students be on the cutting edge of new technology. Universities with
these innovation hubs are more likely to adopt new student technology. Growing focus
on inclusion has led to online classes becoming more popular. Students gain the ability
to create different combinations of classes that fit better into their busy schedule for a
fraction of the price of a larger university. With the onset of the COVID-19 virus we have
seen the rise of virtual classrooms. 100% of college classes in America are online at the
moment. Universities were forced to adapt to this change quickly.
Most Academic Universities face constant financial challenges. The University
system is crowded and financial competitive advantage is nearly impossible. Money is
raised through numerous ways including tuition, grants, donations, and incomegenerating activities such as sports programs. Throughout the last 20 years there has
been a shift from Universities being a public good to a private good (Altbach, 2020).
This resulted in students paying a higher portion than in the past. This is a major
problem for public universities as they have seen federal money slow and need to make
that money up elsewhere. This leads to relying on higher tuition costs and charitable
Growing globalization and internationalization has created a network between
universities. Partnerships between universities allow students to travel globally to
experience new learning environments. There is a positive correlation between sharing
not only students but academic staff as well.
b) Analyze the industry environment (Porters 5 forces analysis) [3 pages]
? Porters Five Forces
? Identify the strategic groups in the industry
? How attractive is this industry at the current time? (Is it possible for incumbent
organizations to sustain competitive advantage in this industry?)
? Given the observed trends, what is your assessment of industry attractiveness
over the longer term (5 to 10 years from now)?
? Use outside research (articles, reports, news ) and cite them
People from diverse backgrounds are seeking education at a tremendous rate.
This is evident as adults, children, part-timers, commuters, as well as international
students are continually seeking education to further or enhance their career status.
Factors such as new technology, which has made the availability of new information,
demand for a deficiency in a specific skill set, and outsourcing pressure have
contributed to the rising demand (Gilde, 2007). Essentially, even with the rise of more
institutions, the chances of gaining are high, since the sector has been projected to
continue developing due to innovation and technology. It is essential to conduct a
strategic analysis of the industry as a way of understanding the missions, motivations,
aspirations to supplement the existing industrial insights. The most widely used analysis
tool is Porter’s five forces that were developed by Porter in 1976. It incorporates forces
such as bargaining power of buyers, bargaining power of supplier, the threat of rival,
threats of substitute, and threats of new entrants (Porter, 2008).
Bargaining power of buyers
There are more than 17.5 million students that are currently enrolled in higher
education institutions within the country. Notably, there is no specific target group that
dominates the market share owing to technological developments. As such, buyers are
distributed and diffused all over the country.Moreover, they are fragmented, unlike in
locations where only one institution of higher learning is available (King, 2008). This
attribute limits the power effectiveness of any students when they are negotiating for
tuition fees as well as the subsequent admission requirements. New technology had
elevated the level of information available concerning various institutions, unlike before,
where the students had to wait for letters to be delivered (Porter, 2008). For instance,
institutions such as Southern New Hampshire University have embraced the
technology, and their enrollment is open to the public, and only a click away. The growth
rate and strategic value of the buyer minimize the buyer power relative to the existing
Bargaining power of supplier
Supplier significance and concentration are integral in the education sector.
When there are few suppliers, and they provide quality and essential services, the
supplier power is high (King, 2008). However, in the education industry, the bargaining
power of suppliers is low due to the fact that universities create most of their value on
their own. The “supply” of the university is teachers, infrastructure, and networks. These
affect the quality of teaching and students choice. Teachers are an integral part of a
college. The quality of teachers is the guarantee of courses and programs. Hiring good
teachers is an essential part of the supply. Essentially, infrastructure is a critical factor in
institutions of higher learning. For instance, southern New Hampshire University
benefits significantly from its online presence than Suffolk University. According to
statistics, over fifty percent of the students who are carrying out their undergraduate
studies received grants and loans in the 2017 financial year, unlike in Suffolk University,
which boosts only thirty-five percent of students who secured grants or loans. This gives
SNHU a higher bargaining power.
Threat of rival
In the United States, private institutions boost forty-three percent of the market
share, while public universities command forty-two percent. The remaining ratio goes to
for-profit institutions (King, 2008). Both SNHU and Suffolk University experience
elevated levels of rivalry, based on the statistics. This can be attributed to a high fixed
cost ratio, which is notably concentrated, elevating the competitive rivalry. However, the
rivalry assessment can be termed as moderate due to the demand bestowed on the
sector. The non-profit institutions are content as for-profit are up to the demand.
Additionally, the jobs that employ individuals with the basic degrees enhances the level
of rivalry, as fewer students are left to pursue advanced degrees (Gilde, 2007).
Threats of substitute
New technology has introduced numerous products in relation to education. The
substitutes of conventional schools are online education and private school. More and
more online institutions and private schools are trying to use more advantages to attract
the attention of students and parents (King, 2008). Such as some flexible online classes
with lowering prices on their programs, summer courses, which could meet many
students’ needs. As such, SNHU and Suffolk University face a high level of substitutes,
and the threat is not beneficial to the institutions in general, as they have to lower their
program prices to keep up with the emerging substitutes.
Threats of new entrants
The educational system features a large economic scale due to the needs of
extensive administrative operations, facilities, alumni base, and large grounds. These
factors command vast capital and long term assets that guarantee grants and loan
entitlements. This forms the barrier to entry for new entrants allowing the incumbent
organizations to sustain competitive advantage in the industry. However, the online
platform has provided another route into the sector. However, before the platform
progresses, physical structures located at a particular location, as well as the said
attributes, minimizes the effectiveness of such institutions (Porter, 2008).
Additionally, there are barriers based on accreditation as well as research, which
generates surplus capital to the institutions. As such, incumbent institutions such as
SNHU and Suffolk University control various accreditation boards. These attributes
serve to protect the incumbent’s institutions and their existing market shares.
c) Conclusion [0.5 pages]
? Main implications regarding the profitability of the industry
? Major opportunities for this industry? Major threats? Name 2 for each
According to Hoovers (2008), the industry revenue as of 2007 stood at two
hundred billion dollars for-profit sector, commanding a revenue of thirteen billion in the
same year. But statistics point out that the industry is the fastest-growing. However,
current revenue stands at thirteen billion dollars. As the demand for institutions rises,
the profitability is set to increase in the sector (Breneman et al., 2006). Opportunities in
the industry include the increase in the number of students after education services.
Additionally, the new technology provides an opportunity for the institution to
utilize as a way of exploiting their strengths. Threats include regulations and
accreditations that inhibit various institutions from offering specific programs. Also,
changing online behavior may end up affecting the institutions that have not embraced
the new technology (King, 2008). Substitute availability is also a threat to the industry.
Internal Analysis [8 pages]
Short-term solvency, or liquidity ratios
Cash Ratio Cash
Long-term solvency, or Financial leverage ratios
Total Debt Ratio
Asset utilization, or turnover ratios
Total Asset Turnover
a) Value chain analysis and Resource based view (VRIN analysis) Describe main
products / services of these companies [4 pages]
? Suppliers, end users, and if there are any distributors or retailers in between the
companies and the end users
Suffolk University and Southern New Hampshire University provide education as
their main service. They do not have many suppliers since universities in general create
most of their education value on their own. Suffolk has a small subcontract with Into
which is a program that recruits internationally for students who may wish to stay at
Suffolk after a year of language training. Furthermore, both universities have contracts
with Sodexo as a supporting food service on campus. Evidently, the universities main
customers are students, but a small portion of revenue is also generated by the
government and businesses providing research grants. For example, Suffolk has
contracts with the Center for Entrepreneurship, the Institute for Public Service, and the
Sagan Energy Research Laboratory (Suffolk website). In Southern New Hampshire
Universitys case, they obtained a $1 million grant from Google for the purpose of
studying high-need youths soft skills (Southern New Hampshire website).
? Primary value chain activities (Provide separate value chain diagrams only if the
two companies differ in their value chain activities). How are the companies
creating value in each step of their value chain?
Both universities have similar value chain activities and only differ on the
emphasis and quality that each university provides. Their primary activity of creating
education is brought about mostly by operations, marketing and sales, and service.
Inbound logistics does not apply for universities and outbound logistics from a
distribution point of view would boil down to classroom allocation, class scheduling done
by the Registrar, and the decision to go online, recently applied due to the 2020
A lot goes into creating educational value in operations. Teaching would be the
most important factor. Syllabi allow for more organized and planned teaching made by
the professor. The university is the one to decide on the number of weeks per semester,
class size, and teaching load which all contribute to teaching efficiency. As for quality
control, both universities are under NECHE accreditation which happen every 10 years
or so. There are also many other accreditations by school and department. For
instance, Suffolk is accredited by the AACSB for Accounting and Taxation as well as the
American Bar Association and the Foundation for Interior Design Accreditation among
many others. Southern New Hampshire is accredited by the Accreditation Council for
Business Schools and Program in addition to the Council on Education for Public
Health. Finally, other than accreditations to control for teaching quality, there are also
course evaluations done by students that allow for feedback and improvement.
The service activity is quite simple for universities. Customer service, or student
inquiries, can be addressed through the Dean of students, course evaluations or directly
communicating with faculty and staff. Universities warranties, or refund policies, are
very strict whether for Suffolk University or Southern New Hampshire. Students wanting
a full refund must officially withdraw within the first week of classes. After a month, the
student will not get any refund if they choose to withdraw in addition to having a W on
Education benefits from supporting activities which add value, especially from
HRM and administrative activities. Human Resource Management is important for
universities in hiring quality faculty and staff. The HR department handles contracts, but
the hiring itself is mostly done at the department level. There is regular training for the
support staff such as accounting training. There is also occasional training for faculty
such as sensitivity training or recently teaching online training. Additionally, faculty can
learn by going to conferences as well as mentoring for new faculty. Adjuncts have the
opportunity to join a union. Depending on their position, there are other benefits that go
into compensation such as pension contribution and health insurance.
Moreover, universities demand a lot of administrative work. The chain of
command structures, organizes, and overall manages the universities operations.
Administration also develops and cultivates relationships with the universities
stakeholders. For students, there is the Student Government Association which allows
for open communication and student input. Dorms, gyms, theatre, clubs and other
facilities contribute to student life and as a result to improve student relationships.
Relationships with parents can be built through sharing information especially during
open houses. For faculty, other than compensation, they have the opportunity to
participate in shared governance. Many boards and meetings take place on a regular
basis dealing with any university issue. Lastly, there is an alumni association which
deals with keeping contact and benefiting from university resources for postgraduates.
Procurements and technological development are mostly aids to teaching and
administration. Universities purchase many resources such as Blackboard, accounting
software, VMware, Windows, and other general IT packages. Universities also procure
extensive library services including subscriptions, textbooks, and databases for the use
of students and faculty. The IT department keeps up and strategies how to integrate the
latest technologies with the teaching experience.
? Critical resources (tangible, intangible, and organizational capabilities) for both
companies. Are there common resources? unique ones?
Suffolk University and Southern Ne …
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