Apollo Comprehensive Case Analysis
Apollo Group, Inc. provides educational programs tailored to working adults. The company offers innovative and distinctive educational programs and services both online and on-campus at the undergraduate, masters and doctoral levels through its subsidiaries The University of Phoenix, Inc., Institute for Professional Development and College for Financial Planning Institutes Corp. The University of Phoenix offers associates, bachelor's, masters and doctoral degrees in a variety of program areas. It offers its educational programs worldwide through its online education delivery system and at its campus locations and learning centers. The Institute for Professional Development provides program development, administration and management consulting services to private colleges and universities (""IPD Client Institutions"") to establish or expand their programs for working learners. These services typically include degree program design, curriculum development, market research, student admissions services, accounting and administrative services. The College for Financial Planning Institutes provides financial services education programs, including a Master of Science in three majors and certification programs in retirement, asset management and other financial planning areas. The company operates through three business segments: University of Phoenix, Apollo Global and Others. It offers educational programs and services through the following wholly-owned subsidiaries: BPP Holdings Limited (""BPP""), Western International University, Inc. (""Western International University""), Universidad Latino Americana (""ULA"") and Universidad de Artes, Ciencias y Comunicación (""UNIACC""). BPP offers professional training through schools located in the U.K., a European network of BPP offices and the sale of books and other publications globally. The Western International University offers associates, bachelors and master's degrees in a variety of program areas as well as certificate programs. It offers undergraduate program courses at its Arizona campus locations and online at Western International University Interactive Online. ULA offers degree programs at its five campuses throughout Mexico. UNIACC is an arts and communications university which offers bachelor's and master's degree programs at campuses in Chile and online. Apollo Group was founded by John G. Sperling in 1973 and is headquartered in Phoenix, AZ. Case Issues. This case focuses on Apollo Group and its proprietary colleges, namely, The University of Phoenix. It goes in depth about the history of how the University of Phoenix came to be, the debate of proprietary vs. traditional education, the ever-expanding online education market, and the challenges that Apollo Group is facing as it attempts to navigate an ever-changing environment. There are many facets that contribute to the University of Phoenix as it looks ahead and sets goals for the future. The first factor, and perhaps the most challenging for the Apollo Group to face, is the new 90/10 Rule as outlined by the Higher Education Act. This rule states that if for any two consecutive financial years a proprietary school derives more than 90% of its cash basis from Title IV programs; it will become ineligible to participate in Title IV. Also, if an institution derives 90% of its cash basis for one year from Title IV funds it will be put on provisional certification and could face additional sanctions. This legislation was enacted to level the playing field between traditional universities and proprietary colleges. If colleges are going to be run for-profit, it is only fair that their students help share the costs by providing their own income, rather than just relying on federal funding. As a whole, the proprietary college market is dangerously close to the 90/10 mark. In the fiscal year of 2011, University of Phoenix reported that federal grants and loans made up 88 percent of its...
Please join StudyMode to read the full document