芝加哥學校之多元教育模式 - 政大學術集成

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(1)國立政治大學商學院國際經營管理英語碩士學位學程 International MBA Program College of Commerce National Chengchi University. 碩士論文政治. 大. 立Master’s Thesis. ‧. ‧ 國. 學 sit. y. Nat. 芝加哥學校之多元教育模式 n. al. er. io. A Blended Education Model for Chicago Schools. Ch. engchi. i n U. v. Student: Emily E. Chauncey Advisor: Professor Jack Wu. 中華民國一百○ㄧ年五月 May 2012.

(2) 芝加哥學校之多元教育模式 A Blended Education Model for Chicago Schools. 研究生：陳海倫. Student: Emily E. Chauncey. 指導教授：吳文傑. Advisor: Jack Wu. 學. ‧ 國. 立. 政治大國立政治大學. ‧. 商學院國際經營管理英語碩士學位學程碩士論文. er. io. sit. y. Nat. A Thesis. n. a to International MBA Program Submitted iv l C n U NationalhChengchi University engchi. in partial fulfillment of the Requirements for the degree of Master in Business Administration. 中華民國一百○ㄧ年五月 May 2012.

(3) Dedication 政治. 大. continue to inspire me.. 學. ‧ 國. 立 Bonnie and Donald Chauncey, who To my loving parents, ‧. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v.

(4) TABLE OF CONTENTS. 1.0 Executive Summary ........................................................................................ 1 1.1 Objectives ................................................................................................ 3 1.2 Mission ..................................................................................................... 4 1.3 Success Measures ..................................................................................... 4. 政治大 2.1 Chauncey Organization and Funding ....................................................... 6 立. 2.0 Company Summary ........................................................................................ 5. 3.0 Services ........................................................................................................... 7. ‧ 國. 學. 3.1 Blended Education Solutions................................................................... 8. ‧. 4.0 Market Analysis Summary – CPS Historical Information ........................... 10. sit. y. Nat. 4.1 Market Analysis – City Level ................................................................ 15. io. er. 4.2 Market Segmentation ............................................................................. 16 4.3 Target Market Strategy and Sources of Funding ................................... 19. al. n. v i n C......................................................................... 4.4 Competition - Overview 19 hengchi U 4.5 SWOT Analysis ...................................................................................... 22 5.0 Competitive Findings .................................................................................... 23 5.1 Marketing Plan – Service Options and Pricing ...................................... 25 5.2 Marketing Plan ....................................................................................... 26 6.0 Sales Strategy ................................................................................................ 27 6.1 Sales Projection Charts .......................................................................... 28 6.2 Personnel ................................................................................................ 28 6.3 Personnel and Salary Expense Projections ............................................ 30 7.0 Sales and Growth Projections – Year 1 ......................................................... 31 I.

(5) 7.1 Sales and Growth Projections – Year 2 .................................................. 32 7.2 Sales and Growth Projections – Year 3 .................................................. 33 8.0 Monthly Income Statement – Year 1 ............................................................ 34 8.1 Monthly Income Statement – Year 2...................................................... 35 8.2 Monthly Income Statement – Year 3...................................................... 36 9.0 Monthly Balance Sheet – Year 1 ................................................................... 37 9.1 Monthly Balance Sheet – Year 2 ............................................................ 38 9.2 Monthly Balance Sheet – Year 3 ............................................................ 39. 政治大 10.1 Projected Cash Flow - Year 2 ............................................................... 41 立. 10.0 Projected Cash Flow - Year 1 ...................................................................... 40. 10.2 Projected Cash Flow - Year 3 ............................................................... 42. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. II. i n U. v.

(6) 1.0 Executive Summary Introduction A blended education program combines online and classroom learning in a brick-and-mortar setting in order to improve the quality of instruction and provide more engaging student-to-student and student-to-teacher interactions. tuition costs while boosting student performance levels.. The blended model reduces. This business plan proposes a. blended model for Chicago Public Schools (CPS) using the Khan Academy’s online learning platform, and specifically targeting elementary school students at the 4th grade level and above.. 立. 政治大 The Company. ‧ 國. 學. The Chauncey Organization is a startup company with five employees: one fulltime. ‧. Sales/Consultant, and four part-time IT and support staff. The company will be. sit. y. Nat. incorporated in Illinois, and operate out of a home office in Oak Park, Illinois in order to keep. io. er. fixed costs low. The key advantage of the Chauncey Organization is in the combined knowledge, expertise and well-rounded experience of the team offering strong backgrounds. al. n. v i n C h To read further onUthe Chauncey Organization team, in business, education and technology. engchi please refer to page 5. The Chauncey Organization will seek a partnership agreement with. the Khan Academy, a free online education website and learning platform, for the online component of the blended education model.. For more information on the Khan Academy. refer to page 5.. Services The Chauncey Organization will manage the marketing, sales, program planning and implementations, consulting, IT support and program management including data storage, as well as fundraising and tracking program statistics to gauge student progress post1.

(7) implementation.. The Chauncey Organization has come up with three packaged models. Chicago Public Schools can select from which vary in costs and service levels.. Please refer. to page 25 for pricing details. Chauncey Organization will first launch Khan Academy math videos and problem exercises in Chicago 4th grade elementary classrooms with plans to rollout additional courses and reach other grade levels in later phases.. Market. 政治大 school funding is derived mostly from local property tax revenue (48%), state funding (29%) 立 The Chicago Public School system is currently facing a budget crisis. Illinois public. and federal government funding (22%) [1].. This structure poses two significant problems;. ‧ 國. 學. the cost of education is a significant burden on homeowners and taxpayers, and the quality of. ‧. education resources a child receives in Chicago is dictated by his or her neighborhood’s. sit. y. Nat. population and income levels. School funding reform is a lengthy and politically charged. io. er. process; in the meantime, the Chauncey Organization would like to offer a unique education model to children, teachers and schools to allow for a more productive experience in the. n. al. i classroom while reducing financial C restraints on schools. U n hengchi. v. As of year end 2010, there are 528 elementary public schools in Chicago serving. 236,524 1st – 8th grade students.. The teacher per pupil ratio is 1:31, meaning there are. roughly 7,630 classes. We get a further rough estimate of the number of 4th grade classes by dividing 7,630 by 8, the number of grades. We therefore have around 950 possible 4th grade class targets within our market.. The Chauncey Organization would like to first focus on. average performing classrooms, and once established, grow to lower-performing classes, with the long-term goal of reaching classrooms at all performance levels in later phases throughout the city. We are targeting 7% of the market in our first year of operation with the goal to be 2.

(8) implemented and active in 36 schools by year end.. In our second year, we will target an. additional 17% of the market with the goal to achieve 91 new program implementations, bringing our market capture rate to 24%.. By year-end of our third year, we have the more. aggressive goal to implement 151 new elementary blended math programs, an additional 29% of the market, which would bring our total market capture rate to 52%. We plan to put the most emphasis on implementing our lower-cost, lower-service packaged options as these options are the most scalable.. 政治大 Startup costs are under $25,000 and we anticipate reaching a break-even point during the first 立 Financial Considerations. year of operation. As the Khan. ‧ 國. 學. Academy’s courses and platform. ‧. are free, the majority of. fourth grade classrooms, raising capital and assisting schools with. n. al. er. io. sit. y. Nat. costs are in supplying computers to. Ch. implementations and tracking results.. engchi. iv n Uplanning, training, program. 1.1 Objectives Short-term: 0 – 5 years . To improve the quality of education in Chicago schools -. Accelerate the learning process for students. -. Improve student attendance levels. -. Increase student achievement scores on state and national assessments. -. Achieve incremental improvement in performance by student 3.

(9) . Achieve implementation in over 150 4th grade classrooms within the first 3 years. . Improve teacher, student, parent and school administration satisfaction levels. . Provide greater visibility for parents and teachers into student learning and possible knowledge gaps or issues for proactive intervention. . Reduce annual school enrollment costs per student so that funding can be used toward teacher salaries and the improvement of curriculums. Long-term: 6 – 10 years  . 政治大 Decrease dropout rate/increase high school graduation rate. 立. Expand blended program offering to other grade levels, junior and senior high schools High school dropout. rates in CPS are around 50 percent. ‧ 國. 學. . Increase college enrollment levels. Currently just 29% of Chicago’s population of. er. io. sit. y. Nat. 1.2 Mission. ‧. people under 25 hold 4-year college degrees. To increase hunger for learning, empower students and teachers, and create. al. n. v i n judgment-free learning zones whereC students excel and master h e n g c h i U subjects through engagement and self-paced study.. 1.3 Success Measures 1. Program retention levels 2. Student performance: attendance, achievement test scores, and incremental improvement per student gauged by Khan Academy’s online assessment reports 3. Program launch success measures: Actual implementations versus plans 4. Teacher, student, parent and school administration satisfaction results based on bi-annual feedback gathered through surveys 4.

(10) 5. Lower school enrollment costs per student so that funds can be redistributed to teacher salaries and program enhancements. 2.0 Company Summary The Chauncey Organization: The Chauncey Organization was founded in 2012 and is a startup company consisting of five employees (four part-time and one full-time). The organization’s advantage comes from the diverse and well-rounded management team.. On. the team is a duo of technology experts with 13+ years of experience, best known for their. 政治大 The team also includes an associate professor with over 30 立. design and implementation work for President Obama’s campaign networks during his first run for presidency in 2008.. years of experience teaching various subjects at all academic levels (K – Graduate School), a. ‧ 國. 學. retired Chief Information Officer (CIO) with over 30 years of experience, and an MBA. ‧. graduate with professional and international education experience.. y. Nat. The Khan Academy: The Khan Academy, a non-profit organization, was established in. er. io. sit. 2009 by Salman (Sal) Khan, who refers to himself as the “founder and faculty.” It is an online learning institution with over 3,100 lessons on topics ranging from K-12 math, to. al. n. v i n C hfinance, economics,Uastronomy, and more. subjects in biology, chemistry, history, engchi. Sal holds. three degrees from MIT and has an MBA from Harvard Business School. His mission is to provide "a high quality education to anyone, anywhere.". The Khan Academy slogan is to. “accelerate learning for students of all ages." The online academy was established when Khan posted YouTube videos to aid in tutoring his young cousin and found his tutorials not only helped his cousin, but were receiving a high degree of web traffic and positive testimonials from YouTube users all over the world. In 2009 Sal left his job as a hedge fund analyst to focus on making tutorials on a 5.

(11) full-time basis and establish the Khan Academy.. He went on to develop a sophisticated. learning platform which helps to identify learning gaps and proactively suggests videos and exercises to improve subject mastery. Computerized learning has received a bad reputation; most people tend to view computerized learning as an anti-social, monotonous, impersonal experience that involves unsophisticated graphics, silly cartoons or dull, lengthy problem drilling. Khan has overcome this stigma by creating short 10- minute YouTube lessons in which he manages to create an intimate environment.. Just his voice is heard as he sketches concepts, makes. 政治大 His enthusiasm for teaching and explaining concepts is apparent in his 立. colorful notes using a digital blackboard, and offers engaging examples and commentary on the various topics.. voice and energetic doodling.. The underlying learning platform has a robot feature which. ‧ 國. 學. quizzes students, tracks time spent on videos and problems, offers recognition, points,. ‧. “badges” and motivational feedback when progress is being achieved. The program also. sit. y. Nat. identifies areas where students are struggling so that teachers can proactively intervene. The. io. er. tool gives teachers a level of visibility not available in traditional classrooms, and therefore improves the level of interaction as teachers are able assist and interact with students in areas. al. n. v i n Ch It also reduces the “shame” level students tend U to experience in the classroom engchi. of need.. when grappling with learning and difficult subjects; students can independently pause, rewind, and view video content with parents and teachers, thereby taking a self-paced learning approach. Today the Khan Academy consists of a team of 26 members and is comprised of some of the brightest designers, software engineers, consultants and professionals in Silicon Valley.. The program receives funding from the Bill & Melinda Gates Foundation.. 2.1 Chauncey Organization and Funding The Chauncey Organization is a non-profit 501(c), US tax-exempt organization. It will operate exclusively to improve the quality of education for Chicago Public Schools. The 6.

(12) company will operate as a public charity. The initial startup costs of approximately $25,000 will be an out-of-pocket investment by the company’s five founders. Additional funding will be derived from grants, private and public funding, fund raising activities, and support from the US government and Chicago Public Schools.. All profits from the business and. operations will be donated to Chicago Public Schools for further blended program implementations and enhancements.. 3.0 Services. 政治大 implement, and track the progress of blended education programs into the school’s core 立 The Chauncey Organization will work directly with schools to plan, structure,. curricula. Startup costs include the designing, implementing and launching of programs on. ‧ 國. 學. a customized basis for public schools in the Chicago area. Costs per school will vary. ‧. depending on resources already available and specific service requirements. For example,. sit. y. Nat. many schools in the Chicago area are already equipped with computer labs; this will cut. io. er. startup costs considerably. The Chauncey Organization will provide computers, IT support and hosting services in the event that schools are in need of these products and services.. al. n. v i n We have 3 product and serviceC offerings with varyingUdegrees of involvement in order to hengchi. appeal to the widest number of classrooms: the Fund, Operate & Maintain (FOM) Model, the Operate & Maintain (OM) Model, and the Maintain (M) Model.. Please view the chart on. the following page which details product and service offerings for each of the 3 models.. 7.

(13) FOM Model. OM Model. M Model. • Fund, Operate & Maintain • Chauncey Org will handle grant-writing and all funding • Chauncey Org will provide teacher training and implement the program • The Chauncey Org will maintain the program through: • Providing refresher trainings • IT support & server storage • Tracking results & semi-annual reviews. • Operate & Maintain • The school district will handle all funding and fund-raising activities • Chauncey Org will provide teacher training and implement the program • The Chauncey Org will maintain the program through: • Providing refresher trainings • IT support & server storage • Tracking results & semi-annual reviews. • Maintain • The school district will handle all funding and fund-raising activities • The school district will provide teacher training, implement the program and handle refresher trainings • The Chauncey Org will maintain the program through: • IT support & server storage • Tracking results & semi-annual reviews. The M model is our most scalable package, while the FOM model is more labor intensive, but ensures quality. We therefore will offer and support all 3 models to meet the demands and varying needs of the market.. 學. ‧ 國. 立. 政治大. 3.1 Blended Education Solutions. The definition of blended learning is combining online with in-class education in. ‧. traditional brick-and-mortar school environments. Students are supervised by a professional. y. Nat. io. sit. teacher while being able to control and set the pace for their learning; in other words, the. n. al. er. teacher is not simply streaming online lessons to the class via a laptop and projector. In. i n U. v. order to qualify as a blended learning environment, there must be the following three. Ch. engchi. elements: a brick-and-mortar school, a professional teacher, and forms of tech-rich learning in which each student sets the pace of study. In the chart on the following page, Heather Staker, a Senior Research Fellow at the Innosight Institute, demonstrates the varying degrees of blended learning programs. The gray areas on the matrix represent online learning environments. [2] identified six existing models of blended learning [2]:. 8. Staker further.

(14) 1. Face-to-face: this model is mostly a traditional classroom yet the teacher deploys students periodically to use online learning tools to supplement the face-to-face curricula. 2. Rotation: students rotate on a fixed schedule between face-to-face student-teacher and self-paced online learning modules. The teacher acts as an overseer for online course work. 3. Flex: this curriculum is mostly self-paced and delivered online. The teacher acts as a tutor, and assists students on an as-needed basis.. 政治大. 4. Online Lab: course content is solely delivered online but in a brick-and-mortar computer. 立. lab school setting. 5. Self-Blend:. ‧. ‧ 國. 學. students take online courses to. n. al. er. io. sit. y. Nat. supplement. Ch. n U engchi. iv. in-class learning. The online courses are delivered. remotely without teacher supervision. 6. Online-Driver: the teacher delivers courses online and students attend classes remotely with regular check-ins at a brick-and-mortar school. Other blended models have also manifested, which include: a. The supplemental model (similar to face-to-face): where students use an online tutorial to supplement materials used in class. b. The Flip Model (similar to self-blend): students watch video lectures online at home, and do “homework” assignments and exercises in class. 9.

(15) c. The Variable Model: a more revolutionary model that takes into consideration the fact that all people learn at different paces, therefore the fixed form of education (breaking courses into quarters or semesters, classes and age-groups) is not the best approach to education as oftentimes students are required to move according to schedule before fully mastering topics and concepts. The Variable Model aims to create a self-paced environment, and re-creates the one-classroom school house model where people of different ages share the same classroom. In this model, teachers have the more active role of mentors, their focus is on open-ended and creative projects, and core subjects are. 政治大. mastered independently by students using online resources.. 立. In the US, since the implementation of the No Child Left Behind Act, which requires. ‧ 國. 學. each student to pass standardized achievement tests or the school risks losing government. ‧. funding, teachers have been more focused on test-prep and less focused on acting as mentors. io. er. alleviate the unhealthy focus on core requirements and test prep.. sit. y. Nat. and educating students in a holistic manner. The Variable Blended Model could help to. al. n. v i n C h program follows The model the Chauncey Organization’s is the Rotation model, in engchi U. which the school day consists of a mix of traditional classes with periods of viewing Khan Academy online tutorials.. 4.0 Market Analysis Summary – CPS Historical Information In 1988, William Bennett, former US Secretary of Education, named Chicago public schools the worst in the nation.. Chicago’s first attempt to reverse that label came later on. that year with their decentralization of Chicago Public Schools (CPS) by establishing local councils comprised of parents, teachers, principals and community members. These councils were granted the freedom to make funding and curriculum decisions which had 10.

(16) previously been controlled by CPS’ central office.. While the decentralization made schools. more efficient in decision-making, subsequent reports have indicated that the decentralization caused an unevenness in improvements, particularly between schools in low-income and more affluent neighborhoods. [3] In 1995, the mayor of Chicago was granted authority over CPS. Mayor Richard M. Daley’s administration, under the guidance of Paul Vallas, made budget decisions, negotiated with teacher unions, and handled the overall infrastructure of Chicago schools.. Most. notably, Vallas created tough academic requirement policies in order to improve student. 政治大 minimums were put on probation and intervention was required. 立. achievement test results. In 1996, students who failed to meet or beat the achievement test Under Vallas’. administration, the focus of CPS moved from overall administration decisions to student. ‧ 國. 學. performance on standardized tests.. ‧. The next phase of reform came about after Paul Vallas resigned and Arne Duncan (now. y. Nat. the US Secretary of Education in President Obama’s administration) took over the CPS. er. io. new and better ones.. sit. administration. Duncan’s mission became to close poorly performing schools, and open His plan became known as Renaissance 2010, in which he planned to. al. n. v i n open 100 new schools in 10 years. CBetween 2001 and 2009, h e n g c h i U Duncan exceeded his plan: 155. new schools were opened in Chicago, and 82 under performing schools were closed. [3]. The improvements these 3 phases of reforms in education created over the last 2 decades have been difficult to track and measure on a test performance basis as changes to the underlying standardized tests have made test scores incomparable over time.. While the. general belief is that math and reading scores have significantly improved among elementary and high school students in CPS, a recent report by the University of Chicago found evidence to the contrary. The University of Chicago report showed that while CPS students’ reading and math test scores have shown real number improvements, students are still unprepared for high school and the majority of high school students are incapable of meeting the standards 11.

(17) of the Prairie State Achievement Exam, a statewide achievement test for 11th grade students. [3]. Additionally, the report found that scores improved for white and Asian students, but. only modestly for Latino students, and dropped for African American students, thus indicating widening racial achievement gaps. Chicago schools are not what they were in 1990: graduation rates have significantly increased, overall academic results have edged upward; however, statistics show elementary and high school test scores remain well below the national averages and CPS students are considered less prepared academically for college than their peers in the outlying suburbs of. 政治大 The 2001 enactment of the No Child Left Behind Act put further pressure on CPS to 立. Chicago.. ensure all students perform at grade levels as measured through standardized test results.. ‧ 國. 學. This act created a number of undesirable results, both in CPS classrooms and at the US. ‧. national level. For example, under this act, teachers are under such pressure to ensure their. sit. y. Nat. students perform well on standardized tests that classrooms have become test-prep pressure. io. er. environments rather than active, creative, holistic places for learning and development. There have also been instances where teachers and school administrators have falsified. al. n. v i n Cjobs student records in order to keep their their U schools to remain open. h eandn allow i h gc. Another major issue with the No Child Left Behind Act is the tremendous profits being. made in the private sector as a result of it.. For example, Pearson, a for-profit education. center, is in charge of creating the standardized tests for certain states. A recent news article referred to Pearson as “the world’s largest education business, which has a $32 million five-year contract to produce New York standardized tests.” [4] The article goes on to say Pearson’s contract size with New York is relatively small compared to some of their other contracts, like their five-year standardized test contract with the state of Texas for half a billion dollars. It also indicates Pearson’s involvement in Washington DC, and that a lobbyist employed by Pearson played a critical role in the drafting and passing of the No 12.

(18) Child Left Behind Act in Congress. Beyond standardized tests, Pearson also provides many of the textbooks for US public schools. If students do poorly, and drop out of school, Pearson now, in partnership with ACE, handles GED exams so students can receive a certificate indicating the student has achieved a knowledge-level equivalent to that of a high school graduate. The GED used to be handled by a non-profit agency, but now is to become a profit-making test under the management of Pearson and ACE. This No Child act created such an advantage in the private sector, that it seems the act is no longer addressing the bill’s major intention, which is improved education for children in the US, but encouraging. 政治大. for-profit private corporations to profit at the expense of quality of education in our American schools.. 立. Up until January 2012, Chicago Public Schools offered the shortest school day. ‧ 國. 學. nationwide with classes beginning at 9:00am and dismissing at 2:45pm. A study conducted. ‧. by the Pacific Research Institute found that due to the shorter school day in Chicago, students. sit. y. Nat. graduating from the district received 25% or four years less schooling overall than students in. io. er. other districts [5]. Until this year, it was virtually impossible for Chicago to extend the school day due to the system’s poor funding structure and the teacher union’s unwillingness. al. n. v i n to cooperate as teacher wages have C already been frozen for h e n g c h i Uthe past several years.. In 2010,. to side step the teacher unions, Ron Huberman, former CEO of CPS, created the Additional Learning Opportunities (ALO), a $10 million program supported by the Chicago Public Education Fund, a community foundation. day in 15 Chicago elementary schools.. The pilot introduced a mandatory longer school. To implement the program, CPS partnered with six. local groups including the YMCA who provided facilitators to replace teachers in an after-school program style format. In September of 2010, a pilot program was launched in 15 elementary schools. The program extended the school day in 15 schools by 90 minutes.. 13.

(19) Source: 2011 Additional Learning Opportunities website (www.alocps.org). 政治大 individual laptops and a facilitator 立 moderated the classrooms on a scheduled basis.. The program used the rotational model of blended online learning where each student used. ‧ 國. 學. Results from the program have proved successful according to the Pacific Research Institute whose evaluation of the program reported ALO students made substantial and. ‧. statistically significant gains on test scores in Math and English over their non-ALO peers.. sit. y. Nat. The ALO program still exists, but has not scaled. This may be partly due to the recent. n. al. er. io. changes in Chicago city government with Rahm Emanuel taking over as Mayor of Chicago.. i n U. v. In January 2012, Emanuel was finally able to extend the school day in CPS. Teachers now. Ch. engchi. must teach an additional 40 minutes per day without receiving additional pay.. While 40. minutes may seem insignificant, it adds a substantial amount of time both to class preparation and instruction to CPS teachers’ already overextended workloads. Chauncey Organization feels this 40 minute school day extension offers the perfect opportunity for Chicago schools to implement the blended Khan Academy model. The Chauncey Organization also aims to be a proponent of re-directing the focus of CPS back to holistic, quality education without the inherent pressures of standardized testing. The Chauncey Organization, in partnership with the Khan Academy, would like to put the focus once again on the students and teachers, and bring holistic, real learning back into the. 14.

(20) classroom on a no-profit basis. The re-engineering of the education model the Chauncey Organization is proposing aims to assist the Khan Academy, a free source of education, in overcoming Pearson and other private companies making enormous profits off of education in various US school districts. The Chauncey Organization plans to compete in partnership with the Khan Academy with these private enterprises through cost-leadership as well as differentiation strategies. The Khan Academy has already out-innovated Pearson’s education model and other profit-making models by providing a creative free and open-source platform; the Khan Academy is thereby already posed to be the number one cost. 政治大 Our focus will be on teachers and students, and learning. 立. leader in the market.. As a side benefit, we hope. the program will naturally halt the huge profits of private organizations attempting to make a. ‧ 國. 學. quick profit, which comes at a detriment to the quality of education in the US, as well as the. Nat. y. ‧. tremendous expense these organizations place on US taxpayers.. er. io. sit. 4.1 Market Analysis – City Level. Two needs are apparent in the Chicago public education: funding structure reform and. n. al. Ch. education model reform. Illinois public. engchi. i n U. v. school funding is derived mostly from local property tax revenue (48%), state funding. (29%) and federal government funding (22%) [1].. Because the funding structure is heavily. reliant on local property taxes, schools in affluent neighborhoods or higher per capita areas are better funded than schools in lower-income neighborhoods.. 15.

(21) This disparity creates inequality in the education resources and quality of education provided at schools in richer neighborhoods as compared to those in poorer areas. Chicago public. 政治大. schools have the lowest funding levels per pupil in the state at an average of $8,765 per pupil. 立. “…6,413 students who started elementary school in Evanston in 1994 and. 學. ‧ 國. per year.. graduated from high school in 2007 to the same number of Chicago Public School students, students in Evanston had about $290 million more spent on their education than their CPS. ‧. peers.” [6] Additionally, schools in Chicago, as is the case with many schools in the United. y. Nat. io. sit. States, still use traditional models of receptive education in which one teacher delivers broad. n. al. er. lectures to a classroom of students and uses textbooks for reading and homework assignments.. i n U. v. The traditional education model is less effective on multiple levels (learning speed, quality of. Ch. engchi. student-teacher interaction, student motivation and classroom engagement) and more expensive than newer technology supported blended models. Blended education models also teach students how to be self-motivated and learn independently, a concept critical for later stages in life.. 4.2 Market Segmentation The CPS district is the third largest school district in the US [7] and CPS is the second largest employer in Chicago with almost 40,000 workers [8] . There are 528 Chicago Public Elementary schools according to CPS’ 2011 budget. 16.

(22) . 236,524 elementary students were enrolled in public CPS (1st – 8th grades) in 2011 with increases in enrollment projected for FY 2012 [1]. . According to the income demographics, 87% of CPS students are from low-income families (2010); this measure is based on students from families receiving public aid or residing in foster homes or institutions for neglected or delinquent children [1]..  . 政治大 In upper elementary schools, grades 4-8, the 立. Ninety-one percent of CPS students come from non-white or minority backgrounds. pupils per teacher standard allocation is 31:1 [1]. ‧ 國. 學. . Student attendance rates are 91%. ‧ y. Nat. A high number of families in Chicago live in. er. io. sit. poverty. According to Chicago’s city budget. analysis, poverty rates in Chicago rank highest among most of the nation’s largest. n. al. metropolitan areas.. Ch. engchi. i n U. v. A 2011 study by The Pew Charitable Trusts found that people with just a high school degree or less are 13% more likely to experience downward mobility, which means their incomes will be substantially below the incomes of their parents [9].. 17. In CPS, over the last.

(23) 30 years, just 50 percent of students attending CPS have received a high school diploma. [10] We will focus on 4th grade classrooms during initial rollout, as this age group is in a critical developmental stage where mastering basic math concepts is crucial to succeeding in higher grade levels. We also feel this target group is capable of engaging well in a blended learning setting and tends to be familiar and comfortable with using technology. As stated earlier, as of yearend 2010, there are 528 elementary public schools in Chicago serving 236,524 1st – 8th grade students.. The teacher per pupil ratio is around 1:31, meaning. there are roughly 7,630 classes. We get a further rough estimate of the number of 4th grade. 政治大 grade class targets within our market. The Chauncey Organization would like 立. classes by dividing 7,630 by 8, the number of grades. We therefore arrive at around 950 possible 4. th. to first focus on average performing classrooms, and once established, grow to. ‧ 國. 學. lower-performing classes, with the long-term goal of reaching classrooms at all performance. ‧. levels in later phases throughout the city.. sit. y. Nat. We are targeting 6% of the CPS 4th grade market in our first year of operation with the. io. er. goal to have implemented and active Khan Academy blended learning math programs in 30 schools. In our second year, we will target an additional 17% of the market with the goal to. al. n. v i n C h bringing our total achieve 91 new program implementations, market capture rate to 24%. engchi U By year-end of our third year, we have the more aggressive goal to implement 151 new. elementary blended math programs, an additional 29% of the market, which would bring our total market capture rate to 52% of the 4th grade market.. We plan to put the most emphasis. on implementing our lower-cost, lower-service packaged options as these options are the most scalable. We will focus on targeting school districts, and apply to use Race to The Top (RTT) funds, of which a total of over $42.8 million are available to be allocated to Illinois schools, and around $11 million of which are allocated for special projects to be awarded on a district-by-district basis for districts engaging in Science, Technology, Engineering or Math 18.

(24) (STEM) related programs [11].. 4.3 Target Market Strategy and Sources of Funding Our plan is to target schools by offering grant writing and capital raising services to fund the blended learning program.. In addition to RTT grant funds, we will also seek funding. from both public and private organizations in the Chicago area such as the Chicago Public Education Fund, as well as national funds, such as the The Annenberg Foundation and Bill and Melinda Gates foundation.. Our contracts will be contingent upon receiving the school’s. We feel it’s necessary that the concept and new 政治大 model is supported on every level, from the school administration, to the 4 grade teachers 立 buy-in and total support of the program.. th. and students, in order to ensure a successful launch and program.. We will immediately. ‧ 國. 學. cease working with schools in the early stages of implementation that show a lack of. ‧. enthusiasm or dedication to the program so that we can focus our energy on schools wishing. sit. y. Nat. to embrace the new style of learning and that show a true need for our services. In order to. io. er. qualify a prospect school for the program, our Sales/Consultant will conduct interviews with the Principal, members of the administration team, and a sampling of 4th grade teachers and. al. n. v i n C h are aligned. Once class parents to gauge whether our goals the school is qualified as a good engchi U prospect, the grant writing procedures will begin and the implementation schedule will be. drafted.. 4.4 Competition - Overview The ALO program appears to be the first official blended program in Chicago schools. It provides us with potential competitor information, particularly in regards to the math learning software programs CPS are currently using.. The ALO program, as described on. page 13, still exists in 14 CPS schools, but has not scaled. With Rahm Emanuel taking over as Mayor of Chicago, the Chicago school day has finally extended. Teachers now must 19.

(25) teach an additional 40 minutes per day without additional pay. This adds a substantial amount of teaching and class preparation time to CPS teachers’ already overextended workloads. Each ALO school has the option of selecting from the following math and reading software program options [12]: Math Software Options . Carnegie Learning Math Series (from Carnegie Learning) Grades 6 - 8. . Odyssey Math (from Compass Learning) Grades 1 - 8. . ST Math (from MIND Research Institute) Grades 1 – 5. Reading Curriculum Options. 立. 政治大. KidBiz3000 and TeenBiz3000 (from Achieve3000) Grades 2 – 8. . Odyssey Reading (from Compass Learning) Grades 1 – 8. . Early Reading and Reading Comprehension (from Headsprout) – Grade 1. ‧. ‧ 國. 學. . n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. A review of the math software programs, which we consider to be competitor products to the Khan Academy, provided insight into spending information on these and other related software learning products by CPS. Below is a list of line items found in CPS’ Fiscal Year 2012 budget with payments made to companies providing computers, math software and blended program services: 20.

(26) 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 21. i n U. v.

(27) 4.5 SWOT Analysis Strengths. Weaknesses. . Low cost – Online platform free. . Not always interactive. . Available anywhere; easy access for teachers, students and. . Buffering speeds and system outages. parents. . May be used only for short spans of time to avoid too much. . Large library of lessons, over 3,100 videos spanning almost. time in front of a computer. any subject. . Not a substitute for hands one learning. . Expert, highly educated teacher; ensures quality of education. . New style of learning, may require significant marketing and. . Cuts down on CPS teacher preparation time. . Learning platform: Exercises and assessments, feedback, mind. testing. map. . Start-up capital for implementing in schools heavily reliant on charity support. 政治大 . One primary teacher. progress and problem areas, saves students results. . Students unable to ask questions if they don’t understand. Printable exercises; easy to “flip” classroom by having. . Relatively new, no large set of proven results. students watch videos at home and problem-solve using Khan. . No reading courses. 立. 學. Real-time reports and insight into student assignments,. ‧ 國. . . Academy exercises in class . Ease of learning, self-paced, videos translated into 13. ‧. languages, averts learning gaps. Popular and familiar format; students are likely already using. Nat. y. . io. . er. unique visitors each month). sit. the platform (143,321,940 lesson views with 4.2 million. Speed of learning – concepts delivered in 10 minute videos, in. al. n line with attention span . Eliminates need for expensive textbooks. . Discourages memorizing and formulas. . Multi-sensory,. stimulating,. no-distraction. Ch. engchi. learning:. just. teachers voice and blackboard, no distracting cartoons, talking heads, etc. . Answers to solutions are not every other question in the back of a text book. Student immediately knows whether his/her answer is correct. . Scalable, Cost leader. . Fun learning, painless math. . Minimizes the one-size-fits-all lecture approach. . Brand and Non-profit business model. . Exceptional talent in silicon valley, expert team in Chicago. 22. i n U. v.

(28) SWOT Analysis Continued: Opportunities . Threats . Proven statistics showing successful blended learning. Pearson recently launched a free site for middle school. programs. students (mymathuniverse.com) and using a celebrity to. . Rise in demand for blended learning courses. narrate the videos. Site offers a cool/MTV look and. . Second to market; Wireless Generation opened the market,. “Math doesn’t suck” and Rappin’ Mathematician channels.. Khan can learn from their mistakes. Math problems are in line with Common Core Standards. . Chauncey Organization can learn from ALO Programs. . mistakes . Other online platforms, such as Wireless Generation, have been operating over 10 years. . Large market in Chicago and Illinois. Competitors also offer real-time reporting for teachers which identify problem areas. 政治大 . For profit models have more marketing and sales power, better distribution channels and lobbyists in Washington (Pearson).. Capable of paying for large scale research to. support products and projects . 學. ‧ 國. 立. Competing programs have reading blended modules – one contract/one product offering with multiple solutions. . ‧. (reading and math). Funding sources not definite and reliant on government,. Easy access to content, and easy to replicate business. io. model . n. al. Ch. v. Budget constraints in city schools and limited teacher. i n U. resources. engchi . er. . sit. y. Nat. private and public donors. Theft and safety in CPS. 5.0 Competitive Findings . It’s critical to have a reading and literacy component to our program so that we can offer schools an end-to-end online solution. In the meantime, our model provides an end-to-end solution that is fully aligned with Chicago’s Science, Technology, Engineering and Math (STEM) initiative. To qualify for Chicago Race to the Top funds an organization must have at least two components of STEM – The Chauncey and Khan Academy model meet all four criteria.. 23.

(29) . Competitors are also offering free online learning tools; we plan to promote the “no-distractions” learning aspect to Khan’s videos.. . Our ethics and social responsibility model: Khan Academy has nothing to hide; it’s free, a non-profit with a mission to educate anyone anywhere.. There are no ulterior. motives or interests aside from offering a world-class education platform . Build public awareness to the private-sectors’ monopoly on the US education, for example, hiring lobbyists in Washington DC, creating expensive textbooks and standardized tests that reduce holistic learning in schools as well as use taxpayers’. 政治大 standardized tests that measure student achievement? Is it ethical for a company 立 money.. Is it ethical for a company that creates our schools’ text books to handle the. making profits from taxpayer dollars to have lobbyists in Washington that help pass our. ‧ 國. 學. education laws, laws that contribute to their own interests and profit levels? Khan Academy offers almost every topic, teaches children how to self-study in an. ‧. . y. sit. Our platform is suitable for all ages, not just children. The Khan Academy is a tool. io. er. . Nat. interesting non-immature format, better preparing them for college and post-school life.. for life that children, teachers, parents and even grandparents can enjoy; it offers a way. al. n. v i n Ch for people to interact across generations. Children will also be able to share the Khan engchi U Academy with their children, and children’s children.. . Implementing a timeless program in schools is critical to a stable education model that is sustainable in the long run. Competitor models, particularly Pearson’s free My MATH Universe, are heavily influenced by pop-culture; the videos will likely be outdated in appearance in the near future, therefore perhaps becoming less likeable or a source of laughing stock for future students.. Our online model does not use. celebrities because all of our resources are put into supporting education and ensuring productive learning experiences.. 24.

(30) 5.1 Marketing Plan – Service Options and Pricing As stated previously, we plan to offer the following three different packages to suit the needs of our customers. Our pricing structure is listed by model below:. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. Our standard contract term is for one year. data from the previous year(s).. i n U. v. Rates will be renegotiated based on actual. We anticipate as programs mature and schools obtain. laptops, our accounts will require less training and support.. 25. Customers that have required.

(31) less servicing from IT support, training and overall account management will have the opportunity to switch to the M model pricing structure after one year provided there is no need to purchase additional laptops. The M Model will ensure existing customers continue to receive Chauncey Organization’s services, such as tracking program progress, results, and continuing IT storage of the Khan Academy lesson content, if necessary.. Customers. requiring additional IT support, training, and account consulting services may also be moved to the M model but with an agent assist fee structure and customized pricing plan to cover costs associated with IT and consulting services. A new pricing model agreement will be. 政治大. developed once we have real data on customer costs and usage of Chauncey Organization services.. 立. Our pricing objective is to be the cost leader and keep costs low, both internally within. ‧ 國. 學. the Chauncey Organization, as well as with our customers.. ‧. 5.2 Marketing Plan. y. Nat. io. sit. Due to the changing time schedule in Chicago Public Schools, Chauncey Organization. n. al. er. intends to act quickly and offer the blended learning model as an effective way of utilizing. i n U. v. the extra 40 minutes allocated to teachers as a result of CPS’ extended school day. Our. Ch. engchi. marketing strategy will consist of the following approaches: . Our first step is to setup our website. We plan to run partner marketing campaigns with the Khan Academy and will seek assistance from the Bill & Melinda Gates Foundation, the Khan Academy’s primary funder, in order to gain visibility in the Chicago community.. . Working with the Chicago Teachers Union to bring awareness to the blended learning program, and get buy-in both from the union as well as teachers. . Relationships with elementary schools. Our sales consultant(s) will pay regular visits to Elementary School principals, the budget decision-makers, and share our. 26.

(32) program and low-cost models . Word-of-mouth.. This is a key component of our strategy as we ramp up.. We. will take great care to ensure the first implementations run smoothly so we can use customer testimonials to help draw new prospects and customers. . Government marketing. Rahm Emanuel, the current Mayor of Chicago, has made education his mission.. He is intent on improving the education levels for children. in Chicago so that High School graduation rates can once again edge over 60% (they are currently in the 50 percent range).. We hope to receive backing and. 政治大 education in Chicago; our objectives are well aligned. 立. support from the Mayor as he tries to cut costs while boosting the quality of. ‧ 國. 學. 6.0 Sales Strategy. ‧. Being a fundraising company and service provider, we will first target closing contracts. sit. y. Nat. for our FOM or full service model. In doing so we will gain public recognition and press in. io. models.. er. the Chicago area and can then move forward in closing contracts for our less labor intensive. al. n. v i n C hthe signature of theUprincipal of the school, yet we also To qualify a sale, we will require engchi. want to ensure buy-in from the classroom teachers who will be implementing the program.. Our hired Sales/Consultant will be required to have meetings and document correspondence with teachers who will be implementing the program in their classrooms; this will insure satisfaction and support of our program at all levels within schools.. 27.

(33) 6.1 Sales Projection Charts. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. 6.2 Personnel We are anticipating rapid growth on a small scale as CPS is in need of special programs to facilitate in the extension of the school day. The Khan Academy/Chauncey Organization model fits perfectly into the additional 40 minute time slot. We therefore forecast additional hiring of personnel within the first year of operation and anticipate our small workforce will double in 3 years from a team of 5 to a team of 10 employees. Most of the hiring will be in full-time Sales/Consulting roles to assist with new business and implementations. 28.

(34) 6.3 Personnel and Salary Expense Projections. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 30. i n U. v.

(35) 7.0 Sales and Growth Projections – Year 1 Our sales forecast is to reach 6% of the CPS 4th grade market in our first year of operation with implementations in 30 schools.. We. forecast capturing 17% more of the market in our second year of business with the goal to achieve 91 new school implementations, bringing our total market capture rate to 24%. By year-end of our third year, we would like to scale to 151 classrooms or capture 29% more of the market, which would bring our total market capture rate to 52%.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 31. i n U. v.

(36) 7.1 Sales and Growth Projections – Year 2. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 32. i n U. v.

(37) 7.2 Sales and Growth Projections – Year 3. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 33. i n U. v.

(38) 8.0 Monthly Income Statement – Year 1 The model offers a high amount of income as the Khan Academy learning platform is free and the program is tax exempt. The Chauncey Organization can deliver value through its services, and through the tremendous savings offered over other similar online programs CPS is currently using. The non-profit model of the Chauncey Organization is also a benefit to CPS. On an annual basis, the Chauncey. 政 The治 annual donations will assist CPS with funding for additional blended 大. Organization will pay out all profits in the form of donations to CPS. learning implementations and program enhancements.. 立. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 34. i n U. v.

(39) 8.1 Monthly Income Statement – Year 2. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 35. i n U. v.

(40) 8.2 Monthly Income Statement – Year 3. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 36. i n U. v.

(41) 9.0 Monthly Balance Sheet – Year 1. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 37. i n U. v.



(44) 10.0 Projected Cash Flow - Year 1. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 40. i n U. v.



(47) References [1]. "CHICAGO PUBLIC SCHOOLS Proposed BUDGET 2011-2012," Board of Education, Chicago, 2011.. [2]. H. Staker, "The Rise of K–12 Blended Learning Profiles of emerging models," p. 184, May 2011.. [3]. E. M. A. P. M. M. d. l. T. J. M. Stuart Luppescu, "Trends in Chicago’s Schools across Three Eras of Reform: Summary of Key Findings," THE UNIVERSITY OF CHICAGO URBAN EDUCATION INSTITUTE, Chicago, 2011.. [4]. G. Collins, "A Very Pricey Pineapple," The New York Times, 29 April 2012.. [5]. Pacific Research & Evaluation, "Chicago Public Schools - Additional Learning Opportunities (ALO) Formative and summarative evaluation," Pacific Research & Evaluation, Portland, OR, 2011.. [6]. M. Egan, "MIND THE GAP: REFORMING THE ILLINOIS EDUCATION FUNDING FORMULA," Catalyst Chicago, p. 15, 2008.. [7]. Research Evaluation and Accountability, "Chicago Public Schools - Stats and Facts," January 2012. [Online]. Available: http://www.cps.edu/About_CPS/At-a-glance/Pages/Stats_and_facts.aspx. [Accessed 30 April 2012].. [8]. CRAIN'S Chicago Business, "Crain's," 31 December 2011. [Online]. Available: http://www.chicagobusiness.com/section/lists?djoPage=view_html&djoPid=1643&djo PY=%40pGKJyF3ZKmUM. [Accessed 30 April 2012].. [9]. T. B. EDSALL, "The Reproduction of Privilege," The New York Times, 12 MARCH 2012.. 立. 政治大. ‧. ‧ 國. 學. er. io. sit. y. Nat. al. n. v i n Ch Consortium on Chicago School Research, e n g"University h i U of Chicago," University of c Chicago, 2 February 2005. [Online]. Available:. [10]. http://www-news.uchicago.edu/releases/05/050202.chicagoschools.shtml. [Accessed 11 May 2012]. [11] E. Longanecker, "TechAmerica," TechAmerica, 6 January 2010. [Online]. Available: http://www.techamerica.org/rttstemsummary. [Accessed 9 May 2012]. [12] Additional Learning Opportunities, "Additional Learning Opportunities - ALO Curriculum," Chicago Public Schools, 2011. [Online]. Available: http://www.alocps.org/alo-program/alo-curriculum. [Accessed 8 May 2012].. 43.

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