Key Influences Impacting Apollo Group, Inc

558 words - 3 pages

Apollo Group, Inc. is the parent company of several for-profit educational institutions, including The University of Phoenix.Economic Influences Although Apollo Group is impacted by the general state of the economy, as measured by the GDP and unemployment rates, the nature of the company's core business dampens the adverse impact of recessionary downturns somewhat as many prospective students consider furthering their education when they are unemployed or under-employed. Interest rates are still a key economic influence on the company, despite the lack of long-term debt on its balance sheet. Many of Apollo Group's students opt to finance their education with student loans, so a rise in interest rates could be a deterrent to enrollment. Currency exchanges rates also influence the company to some extent since it has ...view middle of the document...

Apollo Group must also comply with the education laws of the 40 states where it operates either a ground campus or a learning center. In addition to federal and state regulations, the company must also ensure it is in compliance with standards set by numerous government sanctioned educational accreditation boards. Aside from regulatory concerns, the political climate in Washington influences the company as well, given the reliance of many Apollo Group students on federal student loans. Efforts to rein in government spending by cutting back on such loan programs could adversely affect the company.Legal InfluencesApollo Group has faced legal troubles of late regarding its practice of back-dating stock options as part of executive compensation, which highlights the influence of securities laws on the company. Copyright and patent laws also impact Apollo Group with respect to a number of areas, including the company's proprietary software and web technologies, educational materials and publications, and marketing and branding trademarks. Finally, as an education provider, Apollo Group must abide by strict anti-discrimination laws in the recruitment and enrollment of prospective students.AppendixTable A1Key Economic Influences for Apollo Group, Inc.BusinessTypeInfluenceApollo Group, Inc.CorporationGDP Growth RateInterest RatesUnemployment RateCurrency Exchange RatesTable A2Key Government Influences for Apollo Group, Inc.BusinessTypeInfluenceApollo Group, Inc.CorporationPolitical ClimateRegulationGovernment DebtIncome Tax RatesPayroll TaxesTable A3Key Legal Influences for Apollo Group, Inc.BusinessTypeInfluenceApollo Group, Inc.CorporationDiscrimination LawsCopyright and Patent LawsSecurities LawsReferencesUniversity of Phoenix. (2007). BSA/500 Course Notes. Retrieved March 22, 2007, from University of Phoenix, eResource. BSA/500 - Business Systems I Web site.Apollo Group, Inc. (2005). Annual Report. Retrieved March 30, 2007, from

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