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.
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.
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.
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.
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?
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.
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.
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.
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.
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.
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.