Industry Analysis of Apollo Group Inc and Career Education Corporation

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Apollo Group Inc. and Career Education Corporation: An Industry Analysis Abstract There a number of major names within the educational industry, but it is the for-profit schools that have seen a number of great changes and divides within their respective sector. The two companies evaluated here are Apollo Group Inc. and Career College Corporation, both of which have faced some serious criticism and scrutiny because of their for-profit business model and practices. Yet, Career Education Corporation has proven to remain a less productive organization, one which has seen losses in both its financial performance and consumer reputation. Environmental Elements Both companies have faced legal scrutiny based on their for-profit business model. In fact, "For-profit colleges' recruitment practices have been scrutinized by Congress and state attorneys," (Wolfson & Rule 2011). Career Education Corporation was barred from further expansion in 2005 by the Department of Education. This ban was primarily because of the questionable accounting practices of two schools in particular under the Career Education Corporation umbrella name: Collins College and Brooks College. The company was eventually allowed to regain acquisitions and other means of expansion in 2007, although its original probation period was set to end in 2006. The organization has consistently been targeted by state and Federal government agencies for "improperly report[ing] job-placement rates," (Wolfson & Rule

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