BSullivan GB580_Unit1Assignment.03.12.12

BSullivanIndividualAssignmntUnit1 1

Individual Assignment

Brett Sullivan

Kaplan University

GB580: Strategic Management

Unit 1

Professor Christine Pence

March 13, 2012


Strategic Management for Brett Sullivan, Inc.

Introduction and Abstract

The purpose of this paper will be to evaluate the current strategic position of Brett

Sullivan, Inc. its corporate mission, its values and how well the two are interrelated. At that

point we will analyze how well positioned Brett Sullivan, Inc. is positioned in the marketplace,

both from an environmental scan of the marketplace and by performing a SWOT analysis of the

situation. For the purposes on Unit 1 of this exercise, this will complete the exercise; however,

in Unit 2 of the exercise, we continue the analysis by working through the formulation of

strategy and objectives, and then finish by developing tactical actions and metrics to advance the

strategy.

Brett Sullivan, Inc. was established in the late 1980s, after Brett Sullivan completed his

Bachelor of Science degree with a double major (Business Administration and Behavioral

Psychology). He proceeded for the first several years to hold a number of sales and customer

service roles, until he eventually landed in the investment industry, where he was a telephone

sales representative for one of the world’s largest mutual fund and discount brokerage

companies. He rose fairly quickly through the ranks at this company, establishing himself after

five years as Vice President of Sales, Service and Operations for another company in the same

field. Call Center (sales and service operations) has since been at the heart of his work, and he

has worked in a few industries besides the investment business; the software industry, the

broader financial services industry (student loans), and most recently, the proprietary education

industry.

Currently, Brett Sullivan, Inc. is employed in the proprietary education industry, heading

up three admissions units for a large online university; an undergraduate admissions telephone


unit, the undergraduate admissions live chat unit, as well as the office of returning students,

which is responsible for re-enrolling students who have dropped out, been dismissed or

graduated.

Mission

The personal mission for Brett Sullivan, Inc. is to continue to grow and advance in his

career. In his current work environment, and given his background and reputation, Brett should

be able to establish himself in an even more senior role, most likely as the head of admissions, or

Vice President at either his current company, which is the preference, or with another reputable

company in the proprietary education industry.

Personal Vision

The personal mission of Brett Sullivan, Inc. is to continue to do well in my career by

leveraging my educational background, my work and industry experience, as well as my

strengths in understanding, communicating with, developing and motivating people (people

skills) to continue to “do well by doing good.” (Thaler, 2012). My skills and ability allow me to

meet my personal income and career advancement objectives by helping employees understand

and develop the skills to perform their jobs well, helping create and deliver world-class

experiences for our customers, while delivering solid financial results for our investors. (Taylor

& Schroeder, 2003).

Environmental Considerations

For the purposes of considering the environment as it pertains to Brett Sullivan, Inc., it is

important to examine the industries in which he has significant experience. The majority of

Brett’s career has been spent in the financial services sector, and it was though when he left that

sector in 2008 to pursue a career in proprietary higher education, that the financial services field


no longer offered the types of opportunities or the security desired, and this appears to still be the

case. (International Labour Organization, 2009). Leveraging his background and experience in

telesales leadership, Brett Sullivan, Inc., was able to establish himself in what was at that time

the rapidly-growing field of Proprietary Higher Education. This sector hit a major rough spot in

2010, with the release of a series of reports from the Government Accounting Office as well as a

senate subcommittee investigating potential deceptive practices in the industry. (U.S.

Government Accountability Office, 2010). The results of these reports and investigations had a

severe negative impact on Kaplan itself and the industry as a whole, however, since then the

company has started to come back significantly. For this reason, and the reason that Brett

Sullivan, Inc. has fairly well established itself in this company, and this industry, the

environmental considerations will focus here.

As already acknowledged, the political climate for the industry has been somewhat

tenuous, although it has toned down significantly over the past 8-10 months. In particular, due to

actions taken by Kaplan University, the rhetoric and perceptions around Kaplan have improved

considerably. (Field, 2012). From an economic perspective, the industry and the company

continue to remain relatively strong. Economically, the industry typically is counter-cyclical

during bad economic times, and initially this was true during the latest downturn, however, the

overall political environment did have a negative impact, as previously mentioned. One factor

that is helping the industry and the company rebound is that certain demographic changes in the

economy have made it imperative for people to get retrained and re-educated, which helps the

market for this industry. (The Economist, 2010).

Social implications are closely tied to the economic implications outlined above; negative

media attention turned public perception against the proprietary education industry for a time,


but now it appears to be on the rebound. Society is re-awakening to the need for different

educational alternatives and sees that proprietary schools can help to fill the current gaps. (NEA

- The National Education Association, 2004).

Technologically, both the industry and the company seem to be positioned well, as long-

standing definitions of education and its deliver are evolving. Kaplan continues to be on the

cutting edge of changes to the industry as they allow students to interact with their educational

environment through computers, tablets, smartphones and even personal music players. This

type of approach continues to give Kaplan a competitive edge. (Kaplan.edu, 2012).

SWOT Analysis

The greatest strengths the Brett Sullivan, Inc. brings to bear are a breadth and depth of

experience running large sales, telephone sales, and specifically admissions operations units. In

both his current role as well as past positions both within and outside of Kaplan, Brett has a

strong track record of success. He also possesses a strong process orientation, which has helped

him build a history of streamlining processes and driving efficiency and effectiveness in different

roles. His job performance when measured against peers in his current role is simply outstanding

and he is viewed as a leader among his peers. Brett’s greatest strength is his people skills; he has

the ability to engage, influence and motivate people from many different backgrounds in a

variety of ways.

As to the weaknesses of Brett Sullivan, Inc., the biggest concern is becoming age. Being

middle-aged at this point, there may be a perception on the part of others that Brett may not be

able to keep up with the pace of work and of change. Impatience can also be a factor of

weakness for Brett; he sometimes loses patience and becomes frustrated when others

demonstrate that they are not as quick as he is. He can use his strong people skills to offset this.


Among opportunities present for Brett Sullivan, Inc., the greatest opportunity in his

current organization is that there is somewhat of a leadership vacuum at his level. Most of the

other people in the Executive Director role seem to be reluctant to take action when needed,

which presents a real opportunity for Brett. This, combined with the need for change in the

organization as well as the company itself, provides a huge opportunity. In addition, due to

Brett’s leadership of the Office of Returning Students, he unique access to senior leaders in the

organization, including the Chief Operating Officer and the President of the Kaplan University

Group.

The biggest threats to Brett Sullivan, Inc. are a result of the regulatory and public

relations turmoil that were introduced to the industry and to Kaplan beginning in 2010. While

the regulatory and media scrutiny has improved significantly since then, the industry remains

somewhat of a “hot topic.” In addition, the weaker performance of Kaplan as a result of this

turmoil could conceivably have made Kaplan a potential target of merger or acquisition in the

future. One other threat-related consideration for Brett Sullivan, Inc. has to do with the overall

economic situation in the US the past few years. As companies have trimmed staff and taken

extreme moves to boost margins, fewer executive-level positions are available, which could

cause challenges for Brett in moving to a different industry or company.

Strategy, Objectives and Tactical Actions and Metrics

In the next unit we will expand upon this analysis by exploring strategy and objectives as

well as tactical actions and metrics for Brett Sullivan, Inc.


References

Field, K. (2012, March 2). 20-Something Visionary Promotes Obama's Higher Eduction Goals.

The Chronicle of Higher Education, pp. A1-A4.

International Labour Organization. (2009, February 24-25). Impact of the Financial Crisis on

Financial Sector Workers. Retrieved March 12, 2012, from International Labour

Organization:

http://www.ilo.org/wcmsp5/groups/public/@dgreports/@dcomm/documents/

meetingdocument/wcms_103263.pdf

Kaplan.edu. (2012). Are Online Programs Right for You? Retrieved March 11, 2012, from

Kaplan: Our Programs: Online Education: http://www.economist.com/node/16643333

NEA - The National Education Association. (2004, September). Proprietary Education: Threat,

or Not! Retrieved March 10, 2012, from NEA Higher Education Research Update:

http://www.nea.org/assets/docs/HE/vol10no4.pdf

Taylor, S., & Schroeder, K. (2003). Inside Intuit: How the Makers of Quicken Beat Microsoft

and Revolutionized an Entire Industry. Boston: Harvard Business Press.

Thaler, R. H. (2012, January 26). Corporate Citizens Can Do Well By Doing Good. Retrieved

March 13, 2012, from Bloomberg News: Business Class:

http://www.bloomberg.com/news/2012-01-26/corporate-citizens-can-do-well-by-doing-

good-richard-h-thaler.html

The Economist. (2010, July 22). For-Profit Colleges: Monsters in the Making? Retrieved March

11, 2012, from The Economist: Business and Finance:


http://www.economist.com/node/16643333

U.S. Government Accountability Office. (2010, February 23). Higher Education: Information on

Incentive Compensation Violations . Retrieved March 12, 2012, from United States

Government Accountability Office: http://www.gao.gov/new.items/d10370r.pdf


Appendix


PEST Analysis Template Situation being analysed: Brett Sullivan, Inc. career potential for the proprietary secondary education industry.PEST analysis (political, economic, social, technological) assesses a market, including competitors, from the standpoint of a particular proposition or a business.

criteria examples

ecological/environmental current legislationfuture legislationinternational legislationregulatory bodies and processesgovernment policiesgovernment term and changetrading policiesfunding, grants and initiativeshome market pressure- groupsinternational pressure- groupswars and conflicts

Political Significant political turmoil that

was initially stirred up relative to the industry in 2010 exists, however toned down significantly, resulting in much slower job growth

Politicians & media have begun to realize country can’t achieve education goals without input from proprietary sector.

Some studies now emerging that many in the private sector actually provide students’ job skills at a lower cost than many not-for-profit providers

Current employer, Kaplan University, has been recognized for Kaplan Commitment, a risk-free approach that removes much financial risk from consumer. This has gone a long way to improve public image of current employer (Field, 2012)/

Economical While economy does appear to

be improving, jobs growth is slow. While this is a negative trend for the economy overall, it can have positive portent for the education industry in all sectors.

This can still have negative impact on people’s ability or willingness to attend school- students may not be willing to incur debt.

Current employer (Kaplan) and several others are making efforts to mitigate negative economic implications through pursuit of Military & International offerings, which dramatically lower the impact of students’ needs to borrow.

In spite of improvement in US economy, demographic changes still make it imperative for people to get retrained & re-educated, which helps the market for the proprietary education industry. (The Economist, 2010)

criteria examples

home economyeconomy trendsoverseas economiesgeneral taxationtaxation specific to product/servicesseasonality issuesmarket/trade cyclesspecific industry factorsmarket routes trendsdistribution trendscustomer/end-user driversinterest/ exchange ratesinternational trade and monetary issues

criteria examples

lifestyle trendsdemographicsconsumer attitudes and opinionsmedia viewslaw changes affecting social factorsbrand, company, technology imageconsumer buying patternsfashion and role modelsmajor events and influencesbuying access and trendsethnic/religious factorsadvertising and publicityethical issues

Social Social implication relative to the

proprietary education industry are somewhat mixed at present. Still is still some negative perception lingering as a result of extreme negative political & media scrutiny beginning in mid- 2010.

Negative perceptions of proprietary education industry have dissipated somewhat as politicians & the media have realized that many anecdotes & position about the industry were exaggerated.

Society in the US continues to recognize the need for education- Kaplan & other proprietary schools go a long way toward filling that need by allowing students to meet their educational goals on their own times and on their own terms. (NEA - The National Education Association, 2004).

Technological Technology continues to reshape

the educational environment, and current employer, Kaplan, is on the cutting edge. This allows Kaplan to provide student-facing and classroom experience via many platforms; computer, tablet, smartphone and even MP3 player.

While other educational providers continue to expand their offerings, Kaplan’s early entry into this market helps it to stay ahead of others. (Kaplan.edu, 2012)

criteria examples

competing technology developmentresearch fundingassociated/dependent technologiesreplacement technology/solutionsmaturity of technologymanufacturing maturity and capacityinformation and communicationsconsumer buying mechanisms/technologytechnology legislationinnovation potentialtechnology access, licensing, patentsintellectual property issuesglobal communications


Note: PEST analysis can be useful before SWOT analysis because PEST helps to identify SWOT factors. PEST and SWOT are two different perspectives but can contain common factors. SWOT stands for strengths, weaknesses, opportunities, threats. & SWOT analysis explanationSWOT Analysis Template Situation being analysed: Brett Sullivan, Inc.’s personal SWOT Analysis _________________________________________________________________This SWOT example is for a new business opportunity. Many criteria can apply to more than one quadrant. Identify criteria appropriate to your own SWOT situation.

criteria examples

Advantages of proposition?Capabilities?Competitive advantages?USP's (unique selling points)?Resources, Assets, People?Experience, knowledge, data?Financial reserves, likely returns?Marketing - reach, distribution, awareness?Innovative aspects?Location and geographical?Price, value, quality?Accreditations, qualifications, certifications?Processes, systems, IT, communications?Cultural, attitudinal, behavioural?Management cover, succession?Philosophy and values?

StrengthsBreadth & depth of experience running large sales, telephone sales and admissions operations units

Track record of success in current role as well as past positions- both internal and external to current company

Strong process orientation- demonstrable history of streamlining processes & driving efficiency in past & current roles

Performance outstanding when compared against current peer group- often perceived & positioned as the leader among my current peers

People skills- experience as well as repeated profiles indicate that a primary component of my success has to do with my ability to engage, influence and motivate people.

WeaknessesAge- as someone who is middle-aged, I may be perceived by others as not being able to keep up with the pace of work and of change

Analytical skills – as one is primarily an intuitive leader & manager, data analysis is not my initial response. I need to continue to develop & leverage expertise in this area.

Impatience- While people skills are a strength for me, I often become frustrated & lose patience when people demonstrate that they aren’t as quick as I am. I need to remember that leaders are often teachers and work to help others understand concept & ideas.

criteria examples

Disadvantages of proposition?Gaps in capabilities?Lack of competitive strength?Reputation, presence and reach?Financials?Own known vulnerabilities?Timescales, deadlines and pressures?Cashflow, start-up cash-drain?Continuity, supply chain robustness?Effects on core activities, distraction?Reliability of data, plan predictability?Morale, commitment, leadership?Accreditations, etc?Processes and systems, etc?Management cover, succession?

criteria examples

Market developments?Competitors' vulnerabilities?Industry or lifestyle trends?Technology development and innovation?Global influences?New markets, vertical, horizontal?Niche target markets?Geographical, export, import?New USP's?Tactics: eg, surprise, major contracts?Business and product development?Information and

Opportunities There is currently something of a

leadership vacuum at my level in the organization. My peers usually seem reluctant to step up – my boss has encouraged me personally to do more to fill this vacuum.

The organization & the industry both have a serious need at this time for someone at my level to develop new ways of driving efficiencies & effectiveness into the business. Since this is an area where I excel I should do more here.

My position with management oversight of the Office of Returning Students gives me unique access to senior leadership of the organization, including the COO and the

ThreatsRegulatory environment still represents some threats. Although controversy relative to the proprietary education sector has dropped significantly, there is still a fair amount of discussion that could result in impact.

Economy- the poor US economic conditions for the past 4-5 years have resulted in limited opportunities for people at my executive level & with my skill set. Companies have reduced staff, reduced margins & driven for greater efficiency, resulting in fewer jobs at senior levels. In addition, many of the jobs that do exist don’t pay what they used to.

Organizational threats- while the business in which I work is getting healthier, there is still potential

criteria examples

Political effects?Legislative effects?Environmental effects?IT developments?Competitor intentions - various?Market demand?New technologies, services, ideas?Vital contracts and partners?Sustaining internal capabilities?Obstacles faced?Insurmountable weaknesses?Loss of key staff?Sustainable financial backing?Economy - home,


research?Partnerships, agencies, distribution?Volumes, production, economies?Seasonal, weather, fashion influences?

President. that, due to many changes to the industry & the company, we could become a target of merger or acquisition.

abroad?Seasonality, weather effects?

BSullivan GB580_Unit1Assignment.03.12.12

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