Financial Strategy Summary
The goal of Collabridge is to provide high-end distant learning and communication through the best technology available. Our purpose is to provide learning and communication that allow participants to converge onsite or virtually from anywhere at any time.
Our main goal is to offer the best virtual environment possible based on available technology. We are committed to raising enough funds to maintain our business with seasoned professionals (professors, faculty, staff, and infrastructure) in order to support our initiative.
We believe that SPSU can position itself at the forefront of distant learning technology. And by implementing this strategy, SPSU ...view middle of the document...
4. Local Business Benefits: Local businesses benefit from the virtual communication platform by paying a small fee to use it in the Virtual Center to train staff and hold meetings and conferences.
We will present the Budget and Forecast for the Crawl-Walk-Run phases per department. Financial statements such as Balance Sheet, Income Statement, and Cash Flow will be articulated. Finally financial analysis such as breakeven and return on capital invested (ROIC) will be presented.
Financial Strategic Plan
1. SPSU’s Benefits
a. Infrastructure and Distant Learning Investments
Distant learning has increased at dramatic rates at SPSU. This is an indication that distant learning investments are as important as infrastructure investments. We will compare the cost of new infrastructures needed to sustain enrolment growth against the cost to install virtual technology.
Based on historical data, SPSU’s enrollment has increased over 36 percent in a 5-year period, from 3,807 students in 2005 to 5,183 in 2009.
The average SPSU growth rate for 2005 through 2009 is 6.4 percent. Due to this increase in demand and expected growth through 2020, the university has an expansion plan of $100 million in construction projects. The expansion plan is composed of building the following new facilities:
➢ On-site housing
➢ Parking deck – projected at $18.3 million
➢ Engineering facility – projected at $38 million
The average annual enrollment increase for undergraduate students is 6.5 percent and 4 percent for graduate student. Therefore, we use these percentages to forecast enrollment at SPSU through 2020.
At the projected rate, by 2020 SPSU would enroll 10,031 students, almost double the number enrolled today. This is only 5 percent of the incremental 100,000 students expected to enroll in the Georgia State University system. As previously states, SPSU is planning on investing $100 million in infrastructure to accommodate the increase in demand. We believe that SPSU can position itself at the forefront of distant learning technology. Implementing this strategy will enable SPSU to leverage the state-of-the art interactive classroom to shift traditional class enrollment to distant learning. This initiative will reduce overall infrastructure costs while increasing overall enrollment.
Research had shown that distant leaning has been increasing nationwide at an average rate of 18.8 percent, from 2004 through 2008, and shows no signs of slowing down.
SPSU has experienced an incredibly high growth of 210% from 2006 through 2009. In 2006 registered distant learning credit hours totaled 3,850 which increased to 11,951 by 2009.
SPSU provides a range of distant learning options. Students can enroll in the eCore program, WBIT program, or take online classes while enrolled in the traditional Bachelor’s or Master’s program. In 2009, WBIT and eCore accounted for 20.1% of distant...