CareerPrep Services Critique

1
CareerPrep Services Critique

• Sean Huang
• Ashley Wood
• Robert Chen

2
CareerPrep Services Critique

• Business Summary
• Lack of competition
• Ignoring competition from companies that offer
  internships
• Why pay for job training that you can get for
  free (and that is arguably better?)
• University Career Centers
• Ibanking101
• Large potential growth
• What percentage of 15,263,000 wants to go into
  ibanking etc?
• How do you sustain competitive advantage to
  prevent second-mover effect

3
CareerPrep Services Critique

• Product Description
• Pricing structure
• Who is willing to pay 150 for a resume workshop
  that you can get for free from the Career Center?
• Student costs-per-hour
• Job skills and training 600/8 hours 75/hour
• Resume workshop 150/1.5 hours 100/hour
• Interview workshop 225/2.5 hours 90/hour
• Competitors student costs-per-hour
• GMAT 1150/27 hours 42.59/hour
• I-banking101 495/10 hours 49.50/hour

4
CareerPrep Services Critique

• Product Description
• CPS courses are very similar to those offered at
  the University
• Network of contacts
• Catch-22, if used to draw students, doesnt exist
  to begin with. Probably have to wait a couple
  years before using this network
• Resume/CV workshops and Interview Training
• Offered by the Career Center free of charge
• How much better can CPS be over the Career
  Centers services?

5
CareerPrep Services Critique

• Product Description
• Corporate Alliances (p.10)
• How would you establish the alliance? What
  benefit would a company receive for arranging
  tours, talks, etc?
• Hiring Process
• How do you hire high quality instructors paying
  50 an hour if they can receive much more in the
  professional world
• Are there enough qualified people to fill
  instructor demands of the company?
• RTP tends to be science/technology based and not
  financially based, so are there enough financial
  people that can be hired?

6
CareerPrep Services Critique

• Product Description
• Reputation and Credibility?
• Is admission competitive?
• Ibanking101 has an admission process, admits only
  20 of applicants
• Why would an i-bank or financial firm care about
  a person who finished a CPS course?
• How does CPS separate itself from companies such
  as PCDI (Sally Struthers type companies)

7
CareerPrep Services Critique

• Product Description
• Course Materials (p.12)
• Universities might not simply hand over career
  center materials, even for a fee
• Banks, consulting firms, marketing firms, etc
  also might not offer the materials

8
CareerPrep Services Critique

• Financial Assumptions
• Where do figures come from?
• How did you quote university room rentals at 100
  per room per hour?
• How did you conservatively estimate 20 people
  per class in Q3 2004? And 25 in Q4 2004?
• How do you assume 20 client growth?
• 745 unique clients with a total of 1536 clients
• 745 students comprises 23.3 of the junior/senior
  classes
• Financial statement shows 1280 total clients,
  with 621 unique clients
• Each student takes a course and a workshop
• Each student would pay an average of 750825

9
CareerPrep Services Critique

• Financial Assumptions
• Where do you get figures for rent from? 500 a
  month for office rent seems awfully low
• Risks
• How do you slash and raise prices according to
  the economy? Inconsistency might not sit well
  with customers
• Not very many students can afford to pay the fees

10
CareerPrep Services Critique

• Recommendations
• Switch company to non-profit
• Would probably be easier as a non-profit to
  create relations with universities
• Seems hard to make a profit in this type of
  industry
• Company seems overly consumed with making a
  profit