lecture recording on 15 February 2025 at 11.44.22 AM

Unique Program Attributes

• The program is designed for both domestic and international students, combining rigorous coursework with diverse extracurricular activities that students may not typically experience during the regular school year.

• The emphasis is on maintaining small class sizes, ideally one teacher per ten students, to provide personalized attention and hands-on learning experiences.

Program Administration

• Tom Sealy oversees the program under the leadership of the headmaster, who manages the main school during the academic year.

• Historically, the summer program helped boost enrollment for the main campus. However, with enrollment concerns addressed, the focus is shifting towards making the summer program profitable.

• The summer program operates on the main school's campus, eliminating the need to account for property, rent, or maintenance costs in its budget.

Financial Goals and Challenges

• Sealy is tasked with achieving a profit margin of $50,000; however, enrollment has plummeted since he took over, marking the lowest attendance in the program's history.

• The inclusion of faculty children attending for free further complicates financial management as their tuition and associated costs must be accounted for.

• Detailed accounting records from previous years lack sufficient clarity, posing challenges in understanding past financial performance.

Student Enrollment Overview

• Total student types:

  • Domestic boarding students: 29

  • International boarding students: 31

  • Faculty students (free attendance): 10

  • Day students: 4

• Domestic and international boarding students reside on campus for the entirety of the four-week program, whereas faculty and day students commute daily.

Strategic Questions for Profitability

• Key inquiries include:

  • How can the summer program become profitable?

  • What financial plan could support this goal?

  • How can recruitment and enrollment be improved?

  • What factors influence tuition costs, and how can these costs be organized to ultimately enhance profit margins?

Cost Analysis Goals

• Determine the cost per student in various programs and categorize fixed and variable expenses.

• Explore options to reduce costs by analyzing major expense areas and predicting student enrollments.

• Evaluate the impact of providing free attendance for faculty children on overall program costs and revenues.

Assumptions for Financial Projections

• The program assumes replication of current admission and enrollment numbers for the next year, maintaining a 10:1 student-to-teacher ratio.

• Financial aid for international students is absorbed by the school's budget along with Sealy's and his assistant’s salaries, who coordinate summer program offerings.

Critical Decision Considerations

• Options include:

  • Increasing international students' tuition or maintaining financial aid.

  • Evaluating the continuation of the domestic day program.

  • Deciding whether to charge tuition for faculty students or allow free attendance.

• Each choice is evaluated for its potential impact on profitability and meeting the $50,000 profit target.

Financial Analysis: Income and Expenses

• Operating expenses are categorized into five key activities to understand cost allocation better by student type.

• Boarding services record a total operational cost of $88,000, divided among 60 boarding students at around $1,469 per student, while lunch services for 14 day and faculty students are allocated at $80 per student.

• Revenue totals approximately $355,400, with domestic boarding at $6,400 and reflecting discounts for international boarding students.

• Faculty students represent a loss due to their free attendance, while profits from domestic day students are minimal due to low enrollment.

Recommendations for Profitability

• Proposed actions include:

  • Eliminating the domestic day program, significantly cutting associated service costs.

  • Implementing full tuition charges for international students comparable to domestic rates, thereby increasing revenue without additional costs.

• These changes could yield profits exceeding the $50,000 target within a restructured boarding program.

SWOT Analysis

• Strengths:

  • Offers both academic and recreational enrichment.

  • Fosters a culturally diverse community for immersive experiences.

  • Utilizes experienced faculty from the main school.

• Weaknesses:

  • Limited duration of four weeks compared to other summer programs.

  • Concerns regarding financial impacts on families adjusting to increased tuition fees.

  • Not all parents are comfortable with sending children away for an extended period.

• Opportunities:

  • Enhanced learning and credit-earning opportunities for students already enrolled in the main school.

  • Potential for increased cultural exchange among domestic and international students.