EXPANSION PLAN OF SCS Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

EXPANSION PLAN OF SCS Case Study Solution

The case illustrates the decision taking scenario for Patricia pais is, the principal of St clement school whether to expand the school.In order to inculcate the modern means and facilities of learning or shall it continue to be small community school. ST.Clément School is a small community school for girls with classes from 1-12 grade. The school has a strong family oriented culture, and is ranked as one of the best schools in town. Since, the reputation of the school has increased and that the school has expanded its co-curricular activities, there is a need to expand the school, which would incur the cost of $1150000. In order to meet the financial demand, the school may increase the number of students, which would again require the school to hire additional teachers and bigger class rooms.To accommodate the students, along with other addition operating cost. The school can take the loan at 6% annually, to fulfill the financial need.However, the option will remain unacceptable for shareholders and board of directors, due to unlimited liability.

In order to counter the issues, the company should adopt the alternative of gathering funds through, fundraising and increased enrollments simultaneously.It will allow the school to accommodate the new admissions in the school, through increased funds via enrollments.While also help the school to expand the building, through funds gathered through Fund raising campaign, hence creating a balance of cash flows.The recommendation is also suitable for trustees and board of directors, as it will not involve any debt, thus securing the school from unlimited liability.

Keywords: Culture, sustainability, Expansion.

Problem Statement

The central problem presented to Patricia, is the financing decision for expanding the school.In ordered to synchronize and integrate its offerings with the current demand in market.Also, to consider the sustainability of culture,throughout the school under bigger span of control.
The expansion of school would incur additional cost, which the school has to offset by multiple option, which comes with certain advantages and disadvantages.While the concern of the shareholders should remain aligned, with the school management.

2- Explanation to the problem

St clement school has to expand the school building. In doing so, it has to acquire the funds through different means, which have a direct impact on the operations and cost structure of the school. In doing so, the school has to consider that,whether each option of alternative offers it a set of solution, on which the school can pursue its operations.

Since, the school is expanding to bring in additional facilities, it will require to transform its existing strategy and management style, to cater and engrave the change.While keeping the value and culture consistent.The criteria that the change in school plan should meet includes

EXPANSION PLAN OF SCS Harvard Case Solution & Analysis

It should sustain and propagate the mission of the school uniformly throughout the school. Since, the mission of the school is to up bring and nurture the women of the world and uplift the morale, leadership skills and confidence.It requires special attention and nurturing to each and every student.Since, the school will expand, the span of control will loosen, making the propagation and implementation of mission complex to lay with enthusiasm throughout the school.
The other criteria is to meet the student teacher ratio, which in current situation is 1:8.If the school expands, it has to hire additional teachers to maintain the ratio.That is important, to maintain the quality of education and brand image of the school.
Since, the school is expanding to inculcate the rising demand of the students and to offer the existing student best facilities, to help them polish the personality and other skills.It is important for the school to meet the demand of the students, through proper allocation of resources to each student.

It is easier to sustain an engrave change in small areas, but doing same for bigger areas or organization becomes a problem. Since, the school is expanding in size, more teachers and student will join the school, which will require the additional efforts and energy of the management, to engrave the value and culture in new-comers.Also, it will be difficult for Patricia to integrate the new consumers, with the culture of the school, due to the bigger span of control. And since, culture is the building block of the school, it has to be sustained, while expanding the school building...................

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