Problem

Our client, a private university, in their search to increase earnings, had increased the number of majors offered from 4 to 10 by creating new faculty departments.   Even though the strategy made the student population grow, the more complex operation also increased the costs.

 

Solution

Baeza & Asociados was hired to help reduce the pressure on cash flow. Our recommendation was to focus on a small segment of degree programs related to art and design, where we knew that the competitors were weak. The decision reduced the student population by 45% and the divestiture of some facultiy departments. With these actions taken, the school had gained an advantage in cost, asset sales, their value proposition and a better atmosphere for students and professors.

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Result

Our client became the first success story in its country of an educational institution focusing on a niche.  The cash flow quickly improved and the university is the current leader in each of the programs they offer.