Harvard Case - Summit Public Schools (A)
"Summit Public Schools (A)" Harvard business case study is written by John Jong-Hyun Kim, Aldo Sesia. It deals with the challenges in the field of Strategy. The case study is 24 page(s) long and it was first published on : Mar 23, 2018
At Fern Fort University, we recommend Summit Public Schools (SPS) adopt a hybrid growth strategy that combines organic expansion through product development and market penetration, with strategic acquisitions of existing charter schools aligned with their mission. This approach aims to leverage their core competencies in personalized learning and technology-driven pedagogy while expanding their reach and impact.
2. Background
Summit Public Schools is a network of public charter schools committed to providing high-quality, personalized education to all students. Founded in 2003, SPS has grown significantly, operating 12 schools in California and Washington. Their innovative model, based on personalized learning, project-based learning, and data-driven instruction, has garnered national recognition. However, SPS faces challenges in scaling their model while maintaining quality and ensuring financial sustainability.
The case study focuses on the leadership team's decision-making process as they consider various growth strategies, including expanding to new geographic locations, diversifying their offerings, and pursuing mergers and acquisitions.
3. Analysis of the Case Study
SWOT Analysis:
Strengths:
- Strong brand reputation: SPS has a strong reputation for its innovative educational model and high student achievement.
- Proven track record: SPS has a proven track record of success in providing high-quality education to diverse student populations.
- Strong leadership team: SPS has a strong leadership team with a clear vision and commitment to their mission.
- Technology-driven pedagogy: SPS leverages technology to personalize learning and provide data-driven instruction.
Weaknesses:
- Limited geographic reach: SPS currently operates in only two states, limiting their potential market.
- Financial constraints: SPS faces financial constraints in scaling its operations and expanding to new markets.
- Competition: SPS faces competition from traditional public schools and other charter schools.
- Dependence on technology: SPS's reliance on technology could be a vulnerability if there are disruptions or changes in technology.
Opportunities:
- Growing demand for personalized learning: There is a growing demand for personalized learning, particularly in urban areas.
- Government support for charter schools: There is increasing government support for charter schools, particularly in states with low-performing public schools.
- Technological advancements: Advances in technology offer opportunities for SPS to further personalize learning and improve its educational model.
- Mergers and acquisitions: SPS could acquire existing charter schools to expand its reach and gain access to new markets.
Threats:
- Economic downturn: An economic downturn could lead to reduced funding for charter schools.
- Political opposition: SPS could face political opposition to its expansion plans.
- Competition from other charter schools: SPS faces competition from other charter schools, particularly in urban areas.
- Changes in technology: Rapid changes in technology could make SPS's current technology infrastructure obsolete.
Porter's Five Forces Analysis:
- Threat of new entrants: Moderate, as charter school approval processes can be challenging, but the demand for alternative education models is growing.
- Bargaining power of buyers (parents): High, as parents have numerous school options and can easily switch schools.
- Bargaining power of suppliers (teachers): Moderate, as SPS relies on qualified teachers, but the market for experienced teachers is competitive.
- Threat of substitute products: High, as traditional public schools and other charter schools offer alternative educational options.
- Rivalry among existing competitors: High, as there is intense competition among charter schools for students, funding, and resources.
Value Chain Analysis:
SPS's value chain is centered around its innovative educational model, which includes:
- Inbound logistics: Sourcing and procuring educational materials, technology, and other resources.
- Operations: Designing and delivering personalized learning programs, managing student data, and providing teacher training.
- Outbound logistics: Disseminating educational materials and providing student support services.
- Marketing and sales: Recruiting students, promoting the SPS model, and building community relationships.
- Service: Providing ongoing student support, monitoring student progress, and collaborating with parents.
Business Model Innovation:
SPS's business model is based on disruptive innovation by offering a personalized, technology-driven educational model that challenges traditional public schools. Their model relies on:
- Value proposition: Providing high-quality, personalized education to all students.
- Customer segment: Students, parents, and communities.
- Channels: Direct outreach, online platforms, and community partnerships.
- Customer relationships: Building strong relationships with students, parents, and communities.
- Revenue streams: Public funding, private donations, and grants.
- Key resources: Teachers, technology, and data.
- Key activities: Designing and delivering personalized learning programs, managing student data, and providing teacher training.
- Key partnerships: Collaborating with technology providers, educational experts, and community organizations.
- Cost structure: Fixed costs for facilities, technology, and staff, and variable costs for educational materials and student support services.
4. Recommendations
Hybrid Growth Strategy:
- Organic Expansion:
- Product Development: Continuously refine and enhance the existing personalized learning model, incorporating emerging technologies like AI and machine learning to further personalize learning experiences.
- Market Penetration: Focus on expanding within existing markets by:
- Market segmentation: Targeting specific student populations with tailored programs and marketing strategies.
- Market development: Building stronger relationships with parents, communities, and local businesses to increase awareness and enrollment.
- Product development: Introducing new programs and services to address specific student needs, such as dual enrollment, career pathways, or specialized programs for gifted students.
- Strategic Acquisitions:
- Target schools: Identify and acquire existing charter schools that align with SPS's mission and educational model, particularly those with strong community ties and a proven track record of success.
- Mergers and acquisitions: Conduct thorough due diligence, including financial analysis, cultural alignment, and operational integration, before pursuing any acquisitions.
- Integration strategy: Develop a clear integration plan to ensure a smooth transition for students, staff, and communities, maintaining the acquired school's identity while incorporating SPS's core values and practices.
5. Basis of Recommendations
This hybrid growth strategy aligns with SPS's core competencies and mission by leveraging their expertise in personalized learning and technology-driven pedagogy while expanding their reach and impact. It considers external customers (students and parents) by addressing their diverse needs and preferences, and internal clients (teachers and staff) by providing them with resources and support to deliver high-quality education.
The strategy also considers competitors by differentiating SPS through its innovative model and strong brand reputation. The attractiveness of the strategy is supported by the growing demand for personalized learning, government support for charter schools, and the potential for cost-effective expansion through acquisitions.
Assumptions:
- Continued government support for charter schools.
- Growing demand for personalized learning.
- Availability of qualified teachers and staff.
- Successful integration of acquired schools.
6. Conclusion
By adopting a hybrid growth strategy that combines organic expansion with strategic acquisitions, Summit Public Schools can leverage its core competencies, expand its reach, and solidify its position as a leading innovator in personalized education. This approach will enable SPS to achieve its mission of providing high-quality education to all students while ensuring financial sustainability and long-term growth.
7. Discussion
Alternatives not selected:
- Aggressive expansion: Rapidly expanding to new geographic locations without proper planning and resources could lead to operational challenges and financial strain.
- Focus on innovation: Prioritizing research and development over expansion could limit SPS's reach and impact.
- Status quo: Maintaining the current size and scope of operations could limit SPS's growth potential and ability to meet the growing demand for personalized learning.
Risks and key assumptions:
- Integration challenges: Integrating acquired schools could be challenging, requiring careful planning and execution.
- Financial constraints: Acquiring schools could require significant financial resources, potentially leading to debt or financial instability.
- Competition: SPS may face increased competition from other charter schools and traditional public schools.
- Government policy changes: Changes in government policy could impact funding for charter schools.
Options Grid:
| Option | Strengths | Weaknesses | Risks | Assumptions |
|---|---|---|---|---|
| Hybrid Growth Strategy | Leverage core competencies, expand reach, ensure financial sustainability | Requires careful planning and execution | Integration challenges, financial constraints | Continued government support, growing demand for personalized learning |
| Aggressive Expansion | Rapid growth potential, increase market share | Operational challenges, financial strain | Overexpansion, loss of quality | Strong financial resources, favorable market conditions |
| Focus on Innovation | Enhance educational model, attract top talent | Limited reach, slower growth | Lack of market penetration, financial instability | Continued funding for research and development |
| Status Quo | Maintain current operations, focus on quality | Limited growth potential, missed opportunities | Stagnation, loss of market share | Stable funding, no significant changes in demand |
8. Next Steps
- Develop a detailed strategic plan: Outline the specific steps for organic expansion and strategic acquisitions, including timelines, budgets, and key performance indicators.
- Conduct due diligence: Thoroughly assess potential acquisition targets, including financial performance, cultural alignment, and operational integration.
- Secure funding: Explore funding options to support expansion plans, including government grants, private donations, and debt financing.
- Build a strong team: Recruit and retain talented staff with the skills and experience needed to support growth.
- Monitor progress and make adjustments: Regularly evaluate the effectiveness of the growth strategy and make necessary adjustments to ensure continued success.
By taking these steps, Summit Public Schools can effectively implement its hybrid growth strategy and achieve its long-term goals of providing high-quality, personalized education to all students.
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Case Description
Summit Public Schools was a very successful charter management organization with schools in California and Washington State. The students came from a variety of socioeconomic backgrounds, many from economically-disadvantaged households. While nearly all of its students were accepted to a four-year college, Summit's leadership discovered that nearly half of graduates had failed at college. This was unacceptable to Summit's leadership and they set out to create a new learning model that would enable its students to not only get into a four-year college but succeed there. The new learning model significantly altered the role of the teacher and brought technology to the forefront of student teaching. This new personalized student self-directed learning model was instituted to build knowledge and skills graduates needed to be successful in college. The case study describes the history of Summit and its evolution to this new learning model.
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