The Pitfalls of For-Profit Education Analytical Essay by Nicky

The Pitfalls of For-Profit Education
An examination of the Apollo Group's University of Phoenix fraud case, with recommendations on how the company can minimize damage.
# 145886 | 1,572 words | 4 sources | APA | 2010 | US
Published on Dec 04, 2010 in Education (Higher) , Business (Management) , Education (Adult Education)

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This paper focuses on the 2008 Apollo Group fraud case, in which a federal jury ordered the Apollo Group to pay $280 million to shareholders, or $5.55 per share, as a result of a finding of fraud in 2004. The paper explains that Apollo, which runs the University of Phoenix, had misled investors by not divulging a report that found that Apollo systematically tried to keep its recruiting practices hidden from the Department. At the time, the paper reveals, the Apollo Group was paying its recruiters solely on commission based on the number of enrollments they secured. Although the judgment was later reversed, the paper goes on to examine the effects of the judgment, noting that the company's stock price is deteriorating at least in part due to the scandal. The paper recommends that Apollo focus on international markets, which are not impacted by the recruitment scandal, will allow Apollo to continue its current high growth rate while simultaneously reducing the cost to attract each new student. The paper concludes that the fraud scandal is more of a speed bump than a major impediment to future success, and management's strategy should be guided by that fact.

The Situations in 2004
The External Environment
Recommendations and Conclusion

From the Paper:

"The economy was on the upswing, which was a positive indicator for the Apollo Group. Demand for western-style education was perceived as increasing around the world (Symonds, 2005). Moreover, with the rapid growth in wealth in developing nations such as Mexico, China and India offered seemingly limitless growth opportunities for the Apollo Group. Operations in those countries would be difficult for the DoE to scrutinize, which indicated that strong expansion without changing the existing business model was a possibility."

Sample of Sources Used:

  • Apollo Group financial data from MSN Moneycentral. Retrieved February 19, 2009 from
  • Kahn, Chris. (2008). Apollo Group Ordered to Pay $280 million in fraud case. Arizona Daily Star. Retrieved February 19, 2009 from
  • Symonds, William C. (2005). Back to Earth for Apollo Group? Business Week. Retrieved February 19, 2009 from
  • Blumenstyk, Goldie. (2008 Judge Overturns $280-Million Verdict Against the Apollo Group. The Chronicle of Higher Education. Retrieved February 19, 2009 from

Cite this Analytical Essay:

APA Format

The Pitfalls of For-Profit Education (2010, December 04) Retrieved May 27, 2023, from

MLA Format

"The Pitfalls of For-Profit Education" 04 December 2010. Web. 27 May. 2023. <>