Collapse of Abc Learning Centre Austrailia

Topics: Social responsibility, Environment, Education Pages: 11 (3370 words) Published: February 22, 2011
Table of Contents

Table of Contents1
1.0 Introduction2
2.0 The Internal and External Environment2
2.1 The Internal Environment2
2.2 The External Environment3
3.0 Managerial Ethics5
4.0 Corporate Social Responsibility7
5.0 Conclusion10

1.0 Introduction

ABC Learning Centers, an Australian company was then run by CEO Eddy Groves and at one point was the world's largest provider of early childhood education services before the company bizarrely collapsed. The share price had dropped from a massive $8.50 to just $1.15 within a span of a year (Cohen C 2009) The purpose of this report is to identify and critically discuss management issues at ABC Learning Centers (ABCLC) with specific focus on three areas: • The internal and external environment;

• Managerial ethics;
• Corporate social responsibility

2.0 The Internal and External Environment

The internal and external forces in the environment play an important role in determining Eddy Groves’s decision-making.

2.1 The Internal Environment

Every organization has a unique internal environment. According to Robbins et al. (2006, p.95), an organizational internal culture is a system of shared meaning and beliefs held by organizational member that determines, in large degree, how employees act. The following describe ABCLC’s internal environment in detail. [pic]

ABCLC has an innovative and risk taking culture as the management of the company was innovative and risk-taking. This is understood by looking at the expansion rate of ABCLC between the periods of 2006-2007, whereby the company acquired five Group operations. Furthermore, the table below shows the growth in centre numbers of ABCLC, and it is apparent that the expansion is rapid. This shows that ABCLC risk taking culture, whereby the focus is on pressing growth. [pic]

At ABCLC, there is also a strong sense of purpose as they have built their cultures around a meaningful purpose. This is validated by ABCLC’s approach towards learning, as they have developed the holistic learning method for students. The curriculum is divided into three main sections, the learning curriculum, nutrition and physical development, and facilities and environment (Annual Report 2006, p.10), to provide children the exposure and knowledge into all essential aspects of life, and this shows that ABCLC is outcome oriented. ABCLC’s culture also focuses on individual development. Staff training and development is part of the overall holistic learning approach at ABCLC, whereby staff members undertake continuing levels of study to achieve their education developed specifically for the care and education of children less than six years of age. To ensure that teachers are familiar with the curriculum, ABCLC sends them for in-house training and seminars as such (Annual Report 2006, p.31), which also shows that ABCLC is people oriented.

2.2 The External Environment

The term external environment refers to forces and institutions outside the organization that potentially can affect the organization’s performance. The external environment is made up of two components, the specific environment and the general environment (Robbins et al. 2007, p.82). [pic]

Political/Legal Environment
Each child under the care of ABCLC is protected under the Childcare Act, to prevent child negligence and abuse. In America, children’s rights are protected under the In Loco Parentis doctrine, which refers to the legal responsibility of a person or organization to take on some of the functions and responsibilities of a parent (US-Law, 2010). Due to the strict laws, ABCLC is compelled to be watchful and extra-careful of the children under their protection. Economic Environment

The demand for childcare centers is goes hand-in-hand with the economic performance of the country. The requirement of childcare centers would increase as mothers gradually join the workforce. And again, around the time of economic...

References: ABC Learning Centers Ltd. 2007, Annual Report of 2007, viewed on 2nd February 2010,
Cass B
Chirac P & Torreele E. 2006, Global framework on essential health R&D, Lancet, 367, 1560–1561
Cohen C 2009, Starting a Daycare Guide, viewed on 20th February 2010,
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