Hurricane Island Outward Bound School Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Hurricane Island Outward Bound School Case Study Solution

Introduction

Hurricane Outward Bound school is the one of largest outward bound movement in the United States. Since school is aimed at providing training to the peoples who belongs to the different grounds of the culture, background, and ethnic group. However, the school is continually gaining experience in the field of education that has gained expertise in providing wilderness survival training that could help individuals, students, people in business to develop self-confidence, teamwork, and respect for the environment.

The school has different categories programs for the different peoples anddifferent segments of the society as well. However, the school has themission of the providing the safe, challenging, educational experiences in a wilderness setting, that has been carefully structured and that is aimed at the improving the self-esteem, self-reliance, concern for others, and also care for the environment.

Furthermore, the school is divided into two segments one segment that offers the public courses that include avariety of the different programs with awide range of flexible courses. Second Special programs that designed for corporate clients those who have emphasized their employees to improve their skills, and efficiency as well. Furthermore, the school is operating well, but there are some problems that it has been suffering for many years.

Since being a non-profit school in the United States has given numerous challenges for the school. Indeed, its efforts to marketing seem that Outward Bound is changing its nature of being non-profit to the profit company. Furthermore, School the school is also providing ascholarship to the students to build off-season demand. The market is changing rapidly, and peoples are also spreading around.

So, how theschool would bring its marketing strategy in the market so that it does not differentiate the school from being non-profit to the profit school. However, it is also important for the company to choose what courses should it give up to offer in the market since it is suffering from the financial declines since last five years. Indeed, what company should take necessary steps to ensure the breakeven at least in the market?

Background

The first Outward Bound school was established by the Kurt Hahn in 1941 since he was the headmaster of the German boarding school. Later being jailed due to criticismof Hitler. He escaped to the Scotland and started work in the education and soon after he developed a system that how an interrelated system of athletes and educational standards for the teenage boys that they can enhance their skill levels, and improve emotions in a practical way.

Indeed, this system became essential foundation for the Outward Bound course and school that spread rapidly in the market. Similarly, Hurricane was founded in 1964 and named it the Outward Bound Inc., which later changed simple word as National. Furthermore, the school is being organized and managed under the particular policies and procedures defined by the National. Furthermore, the school has created many programs for the different students and had divided the categorically.

Furthermore, the Hurricane has never broken even on the operating basis. Since the cost of programs exceeds the revenues generated by the programs. Similarly, the school has suffered large operating deficits in last five years. On the other hand, the Hurricane was also using the promotion tool like presentations to the educational institutions, companies, and through the alumni of the school as well. Meanwhile, the school trustee marketing committee successfully approved the 10% marketing budget.

Meanwhile, the Hurricane was undertaking many market strategies to boost the sales. However, the increasing sales also were incurring alarge operational deficit. Therefore, it was the biggest problem for the Outward Bound Incorporation that how should it approach the breakeven, since the sales of the Hurricane was also related to the low-cost offering. But, the option to increase the prices of the courses might reduce the sales.

Analysis

The School has been offering various courses under five different programs. However, the school is anon-profit organization that no intention for the profit. But, profit is not necessary for the school. Indeed it should know what is the actual cost of the program to at least cover the cost associated with the course. However, the estimated direct cost of a program at theschool is $45 per SPD[1] and has fixed overhead of $30 in any given particular program.

Similarly, the School’s Average cost per SPD is $75.Furthermore, if we analyze the revenues of the school, then we can determine that average revenue of the school from all program courses is $65. Which means that school is on the deficit of $10 per SPD. However, more specifically, all Maine Sea program is also in deficit with $6.88 per SPD. Furthermore, Summer Land and Winter Land are also in deficit by $ 11.45 and $11.85.

Hurricane Island Outward Bound School Harvard Case Solution & Analysis

On the other hand, the Special programs are at $3.12 deficit per SPD. However, the Florida Sea program is almost on the breakeven. Indeed, the special programs are also generating aloss for the school.Furthermore, the only the program category that is generating net income is the manager’s programs in the school. Similarly, there is aloss of $10 per SPD consequence of rising costs, and decreasing number of enrolments..............

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