Question: Strutledge is a small private liberal arts school located within 50 miles of a major urban area in the southeast United States. As with most
Strutledge is a small private liberal arts school located within 50 miles of a major urban area in the southeast United States. As with most institutions of higher education, Strutledges costs are rising and its enrollments are decreasing. In an effort to expand its student base, build valuable ties with area businesses, and simply survive, the Board of Regents is considering establishing an MBA program. Currently, no undergraduate degree is given in business, although business courses are taught. The dean of the school visualizes the MBA as an interdisciplinary program emphasizing problem solving, communication, and global awareness. Faculty expertise would be supplemented by instructors from local industry. The use of local faculty would better connect the university with the business community and provide opportunities for employment of the programs graduates. In terms of competition, a major statefunded university that offers an MBA is located in the adjacent urban area. Strutledge hopes that state budget cutbacks and perceptions of overcrowded classrooms and overworked professors at public institutions will open the door for a new entrant into the market. The Board of Regents also feels that the schools small size will allow Strutledge to tailor the MBA program more closely to area business needs. Several members of the Board are concerned about recent reports of the dwindling value of an MBA and are wondering if a better niche could be found with another graduate degree, perhaps a master of science in business analytics or something in the education of healthcare field.
- Identify the strengths and weaknesses of Strutledge, and the opportunities, and threats surrounding it (if any)
- List all the possible actions that Strutledge is currently considering taking.
- Should Strutledge gather more information before it makes a decision on what action to take? If so, what kinds of information would it need?
- What factors should Strutledge consider before making a strategic decision such as this?
- What action would you recommend to the Board of Regents? Why?
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