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Powerpoint Presentation on the University of Phoenix's Apollo Group and the strategic planning implemented by UOP's Founder and Chairman, John Sperling.
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Strategic Plan of the Apollo Group Inc
MBA 580Presented by: Rose SotoInstructor: John Vincent
History of the University of PhoenixJohn Sperling (88 yrs) – FounderChairman of the Apollo Group Inc“Unintentional” entrepreneur now on the
Forbes 400 list of America’s wealthiest peopleCompleted high school Joined the merchant marine Went on to Reed CollegePhD from Cambridge University (Economics
major)
Online Concept Formed Early On1972 Sperling was chosen to run workshops
at San Jose State Brought in teachers who were experts in
their fields, divided the class into small groups, and challenged each group to complete a project
Curriculum he sketched out was slapped down
Stanford University backed his ideaUSF became his first client and became a
success
Strategic ThinkingBecame a for-profit enterprise“The faculty member is an equal in the
classroom. His job isn’t to expound wisdom, it’s to serve a learning group.”
Sperling forbade tenure in his own programsAfter a futile five year battle to win
accreditation, Sperling left California and headed to Phoenix
In 1979, UoP earned its accreditation
UoP – How a university for working adults should look, feel and functionMain campus has no student center, no fine-
arts buildings, no centerSchool offers undergraduate and graduate-
degree programs in business, information technology, accounting, management, marketing
Age of average student – 34 yrs earns between $50,000 and $60,000 a year
1989 Sperling purchased a distance-learning company to create profitable electronic education system
John Sperling was ahead of the game (a strategic thinker)In 2000 the university’s online enrollment
jumped 81%Phoenix online now generates $327 million in
revenueAnalysts at William Blair & Co. call it one of
the best-performing tracking stocks of all time
SWOT ANALYSISStrengths: UoP offers classes both online and
on campusInstructors are working professionals in their
fieldsCredit is given for prior courses and life
credit is also considered when enrolling
SWOT ANALYSIS CONT’DWeaknesses: Many other online schools today
that rival with UoPUoP must invest more money in their
technology in order to stay ahead of the gameFaces controversy over traditional higher
educational schooling
SWOT ANALYSIS CONT’DOpportunities: To continue being a leader in
online educationTo increase the program offerings at the
school in order to keep up with the market To expand on a global level and use the same
business model that has made it successful
SWOT ANALYSIS CONT’DThreats: Ongoing battles to force the
university to continue to meet accreditationMany other online competitors will try to
gain advantage over UoP with newer marketing methods
Concept of attracting only working adults is changing to lure in students who are completing high school as a potential market share
Since going public in 1994, Apollo has racked up an annual growth rate of roughly 25%
In 2002, it had $1 billion in revenue-a 31% increase over 2001.
Its distance-learning division claims nearly 60,000 students and an enrollment that’s increasing at a rate of about 60% a year
Its stock has split twice and nearly tripled in price since its IPO in 2000, making it one of the few Interact companies to have prospered
Financial Key Notes
John Sperling’s lessons on business: Ignore themIgnore your detractors: “If I weren’t immune to
criticism, it would have been impossible to create and protect the University of Phoenix from hostility and legal assaults. But that’s a unique characteristic that was positive for me. If someone in an organization is indifferent to the feelings of others, he won’t function well.”
Take bet-the-farm risks: “I drove my company to near bankruptcy on a couple of occasions, that kind of bet-the-farm risk taking helped build the Apollo Group. But I had nowhere to go but up. I had nothing to lose.”
Challenge authority: “If you challenge authority, but you’re not tough enough or shrewd enough to carry it off, you’ll be ill served by this advice. The same can be said for a number of characteristics that have served me best: opportunism, joy in conflict, a thrill from taking risks. None of them is a safe ride.”
Never set a goal: “An English historian once observed, ‘He goes farthest who knows not whence he goes.’ There’s much truth in this. If you have a goal, you’re constrained by the goal. Organizations must have a coherent philosophy, a clear direction, and the strategies to make the journey successful.”
More advice we should ignore…
ReferencesBreen, Bill. (2003). The hard life and restless
mind of america's education billionaire. Fast Company, (68), 6p. Retrieved May 17, 2009, from Business Source Complete database.
Apollo Group, Inc. (2007). Mergent's Handbook of NASDAQ Stocks (Wiley), (1), p22. Retrieved May 16, 2009, from Business Source Complete database.
Questions?