Hurricane Island Case

3490 Words14 Pages
Issues Hurricane Island Outward Bound school has two major issues: growth and financial stability. In order to continue operating, they need to grow their school. Outward Bound is currently losing money due to its size and capacity. The school will not be able to operate successfully in the future without an increase in student enrollment. Hurricane Island is also in need of financial stability. They currently do not have a steady flow of income year around due to their long off season and short summer profits. Their off season courses do not enroll as many students as their summer courses. Without financial stability they are not able to employ instructors year round and have to expend profits on hiring new instructors and training them. Options • Expand “Alumni in Marketing” Network • Build Corporate Professional Development Program (PDP) • Expand Direct Sales Recruitment • Build Telemarketing Capabilities • Increase Prices • Adjust Course Mix Recommendations We believe that building the corporate professional development program (PDP) at Hurricane Island Outward Bound School is the best option. It will increase Outward Bound’s profits in efficiently through increasing their profit with an overhead of 135 dollars per SPD. Chin believes that the school can charge corporate clients more than they charge their public clients. This is 170 dollars more profitable than their public courses. Outward Bound gives scholarships out to the less fortunate public students that are financially unable to afford their adventurous programs. Due to the financial difference with the corporate clientele, they will not need to provide scholarships to the target audience of the PDP classes. Increasing the PDP program will increase the age range of students attending the school and the amount of people attending school. The majority of people that enroll in PDP courses
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