Article: Industry Snapshot- The U.S. higher educational system has long been the envy of the developed world. It plays a critical role in U.S. social and economic life and is a cornerstone of the nation's competitiveness on the world stage. By the twenty-first century, U.S. colleges and universities were increasingly coming to resemble traditional business entities by streamlining operations and aggressively competing for students and finances as a way of maintaining their vitality. Almost 12 million students were enrolled in public colleges and universities during the 2000-01 school year. In addition, nearly four million attended private schools. There were a total of 4,182 postsecondary schools in the United States, of which community, junior, and technical colleges accounted for 1,732. About 1.8 million students were enrolled in graduate programs in 1999, a figure that escalated rapidly in the early and mid-1990s after holding steady around 1.3 million for more than a decade. Students tended to gravitate toward very large or very small schools. State funding and development of colleges and universities heralded the end of the era of the public college and ushered in the industry of colleges and universities in its present form. The Universities of Georgia (1785), North Carolina (1789), and Vermont (1791) were the first state-chartered schools. This trend escalated dramatically around the time of the Civil War, until state colleges and universities became the standard route to higher education across the nation. It was not until late in the nineteenth century, however, that states began to assume financial responsibility on an ongoing basis for colleges and universities. It was also at this time that the municipal college or university came into being. Today, of course, admittance discrimination based on gender, race, or religion is outlawed. Still, there are about 130 single-sex colleges (men-or women-only) in the United States today, and there are more than 100 historically black colleges. Universities, as institutions of higher learning and scholarship, became fully entrenched after the founding of Johns Hopkins in 1876. Truly the renaissance in higher education in America, it was during this period as well that Yale, Columbia, Harvard, and the Universities of Michigan, Wisconsin, Minnesota, and California opened their doors. Endowments and grants from major corporations also established these institutions as the focus of corporate investment. With such fiscal leverage at their disposal, these universities quickly became forces to be reckoned with, both in the academic arena as well as in the overall economy. Financial subsidies from the government increased attendance enormously, and postsecondary institutions realized substantial growth in revenues. The surge in the popularity and fiscal growth of these institutions can be appreciated by comparing enrollment statistics: The enrollment in the fall semester of 1950 for all students in institutions of higher education was 2.6 million; in 1990 that number had increased to 13.8 million. Industry analysts predict this trend will continue. The exponential growth of two-year trade schools, or junior or community colleges, is indicative of the diversity that characterizes higher education in the 20th century. As the twenty-first century approached, colleges and universities emphasized imparting practical skills and knowledge to as wide and diverse a population as possible. The technological and computer revolution supplanted the traditional liberal arts education, stressing the importance of skills and knowledge that make students marketable in a computerized age. Tuition. As a whole, tuition rose twice the rate of inflation in the 1980s and 1990s. In the late 1990s, tuition costs rose about 4 percent annually. This trend held true for all types of postsecondary institutions. For instance, the average annual at a four-year private institution was $13,664 during the 1997-98 academic year, compared to $10,994 in 1993-94 and $8,120 during 1984-85. Likewise, four-year public institutions cost $3,111 in 1997-98, up from $2,543 in 1993-94 and $1,748 in 1984-85. When combined with room and board prices, the total basic expenses at private schools reached $18,745 in 1997-98, compared with $6,788 at public institutions. During the late 1990s, the federal government underwrote about 72 percent of the approximately $60 billion in financial aid benefits offered annually by federal, state, institutional, and private bodies. Lower-income students and families received assistance in paying for higher education through Pell Grants and Hope Scholarship tax credits. For adult students, moreover, the Lifelong Learning tax credit supplemented employment income while they retrained to upgrade their skills. The Student Body. The composition of the student body has changed dramatically. In 1970 women made up 41 percent of the college and university student body. By 1998 this figure had increased to more than 53 percent. Minority enrollment has escalated as well. Moreover, an increasing number of minority high school students were pursuing college degrees by enrolling in college preparatory classes in secondary schools. Although African Americans have come to enjoy nearly proportional enrollment in postsecondary education, the National Association for Equal Opportunity in Higher Education reported that enrollment at historically black colleges and universities (HBCUs) rose 11 percent between 1990 and 1998; notably, however, white enrollment at these institutions increased 16 percent during this period, whereas African American enrollment rose 6 percent. Most of this growth, analysts surmised, was due to the schools' lower average tuition cost ($6,600) when compared to other private schools, as well as the expanding number of degree offerings at HBCUs. With the rising presence of minority students on college campuses has come the demand for more ethnic studies and foreign-language courses, as well as minority instructors. According to the National Center for Education Statistics and the Asian-American Studies Program at Cornell University, in 1996 about 90 of 2,200 four-year colleges in the United States offered majors in African American studies, 20 in Latino studies, 17 in Asian American studies, and 12 in Native American studies. At any rate, students of all races find ethnic studies popular, and often these classes have long waiting lists. Moreover, many businesses emphasize the growing need for greater cultural awareness as the business community grows more international in character. Most institutions of higher learning attempted to tailor their programs according to the needs of students who would be job hunting into the twenty-first century. Land-grant universities in particular were being urged to combine vocational training with general education. Indicative of the situation facing college students who will be seeking employment in an environment where many blue-collar and white-collar skills are becoming obsolete, vocational colleges and two-year trade schools have enjoyed increasing enrollments for a number of years. Since the 1960s and 1970s, these institutions have become a staple in most communities and show every indication of thriving well into the next century. An important and increasingly popular component of the training these schools offer is upgrading and remedial education, which appeals to an American population that is discovering the value of re-education. Government Financial Assistance. Retraining and educational upgrading have become priorities of both federal and local governments in the United States. Both the technical revolution, particularly related to the computer industry, and the obsolescence of many white-collar, middle-and upper-management jobs have engendered a revolution in retraining in America. The public sector has been committing substantial amounts of money to the re-education of Americans who possess minimal training in the skills that are required in today's market. In 1998 federal funds for education and related activities amounted to contributions of more than $60 billion. Education analysts believe government will continue to support such efforts. Current Conditions- By the early 2000s, weak economic conditions had resulted in business closures, massive workforce reductions, and decreasing tax bases throughout the United States. This led to state budget shortfalls, which in turn affected funding for colleges and universities. During the boom years of the late 1990s, state appropriations for higher education averaged 7 to 8 percent. However, according to Educational Marketer , the Center for Higher Education at Illinois State University reported that funding for higher education at the state level increased a mere 1.2 percent in 2002-03, reaching almost $64 billion. Fourteen states cut funding, whereas another eight kept funding at the previous year's level or increased appropriations less than 1 percent. The most significant reductions occurred in Oregon, which implemented cuts of 11 percent, followed by 10 percent cutbacks in Missouri. As government funding decreased, colleges and universities increased tuition. On average, tuition increased 10 percent in 2001-02 at public four-year institutions. At private schools, tuition and fee increases averaged about 6 percent. Tuition increases varied considerably from state to state. For example, Education Daily revealed that Massachusetts ramped up tuition by 24 percent, whereas New York only increased tuition by 2 percent. In all, some 16 states increased tuition more than 10 percent. In addition to paying higher tuition, students also faced financial aid cutbacks, with 17 states spending less on aid in 2002 than they did the previous year. Just as Massachusetts increased tuition by 24 percent, student aid levels also declined by that percentage in 2002. In addition to tuition hikes and less assistance, the stock market took its toll on college savings plans, putting increased strain on families with students near or of college age. According to Money , Morningstar indicated that funds in college savings plans fell 9 percent in 2002. Looking ahead to the 2003-04 school year and beyond, experts were not hopeful for a quick turnaround. In its February 12, 2003, issue, Education Daily provided information from College Affordability in Jeopardy, a study conducted by the National Center for Public Policy and Higher Education (NCPPHE). Calling the state budget situation the "worst fiscal news for public higher education institutions and their students in at least a decade," the NCPPHE commented that widespread economic uncertainty, recessions in nearly every state, and "the need to provide adequate funding for K-12 education and Medicaid before fretting about higher education" were all factors that foretold of more bad news for U.S. colleges and universities. Workforce- Approximately 2.7 million people are employed in U.S. colleges and universities. Faculty members, by far the largest and most visible component of the workforce, assume a number of diverse roles in higher education. Duties typically include teaching, appointment and promotion of colleagues, conferring tenure, curriculum planning, and student admission evaluations. Faculty usually operate within specific academic or administrative departments and are represented in faculties, senates, committees, and, in some cases, bargaining or arbitration units. Gender disparity continues to haunt the coveted tenure position; about 72 percent of male faculty had tenure in the late 1990s, compared with 52 percent of women.The average academic year salary for a full-ranking professor at a public university in 1999-2000 was $76,200. An associate professor earned an average of $55,300; assistant professors brought in $45,600; and instructors earned $34,700. The highest paying fields include medicine, law, and engineering, whereas the lowest salaries are earned by those in the humanities and education. America and the World- Higher education in the United States continues to enjoy a great deal of prestige around the world. In recent years, record numbers of foreign students have enrolled in U.S. colleges and universities. Foreign students continue to value an American business education above all other forms of learning available in this country. Until recently, engineering was the most popular subject among foreigners. This discipline, though, has fallen behind programs such as the master's of business administration. The foreign student population in American universities and colleges is largely composed of students from China, Japan, Korea, and Taiwan.In the late 1990s, approximately 45 percent of graduate students in American colleges and universities were foreign students, whereas foreigners accounted for one-fourth of all doctorates awarded in the United States. Observers feel that this trend will continue and that foreign students will continue to represent a significant percentage of the population of colleges and universities." Classify the education institutions according to the four different roles the might play: leader, challenger, follower, and nicher. How would you characterize the nature of the competition? How would you classify the product of higher education according the product lifecycle's characteristics, objectives, and strategies?