1.0 Introduction
Regina Sharky, the owner of Porpoise Swim School, is concerned about her business that it is falling short of its profitability to enhance her business to become more profitable. The purpose of this report is describing the swim school in the suggestion to analyze the effect of the analysis or does the business need further recommendations for improvement. A few analysis is conducted in this report to improve the financial position for her business. The focus is on student enrollment as a prediction of future profitability. In addition, the two new classes will affect the attendance numbers would give an accurate prediction of the same time.
2.0 Analysis Results
The analysis concise three steps taken by Regina include introducing two new classes, introducing additional classes on Saturday mornings, and recruiting a new swim teacher who comes with experience and professional qualities under her belt. It is apparent that Regina took such steps to improve her business to gain more profit. However, how each of the steps affects the business in future determines whether she ought to pursue them or ignoring them altogether. The final goal is to assess how many students enrolled in a particular class as a reasonable illustration of potential revenues.
2.1 Introducing two new classes
Figure 1: Students attendance rates per class
The table above illustrates how each of the classes performs to the other which is a calculation of attendance, for the classes in a term. The two introduced classes were Penguin and Dolphin (red bars). It is supposed that the Dolphin class proves to be a good choice with a high student enrollment rate which is 17.25% if compared with the Penguin class 5.12% as well as the rest of the classes. It could be said that students are more interested in the Dolphin class more than any of the classes offered by Porpoise Swim School. Another possible explanation could be that new timing, the teaching mechanism to the students and acted as an attendance or enrollment motivation. However, Penguin class is performing below expectation. It saw the least enrollment at 5.12% enrollment, and possibly, attendance rate in Porpoise Swim School. It could be that students are not interested in the swimming techniques offered by the class, the timing of the class, or even the method of teaching. The Penguin class recorded even a lower enrollment rate than the Seal class with 6.20% that was already the least attended class in the school before Regina decided to introduce the two new classes. It could be said that the Penguin class is currently a liability rather than a key strength of the business. The class performs about 30% of how the Dolphin class, the latter of which sees high attendance as the Seahorse class that also the student favorite or rather feel convenient to attend.
2.2 Additional classes on Saturday mornings
Figure 2: Time Schedule analysis
The decision to introduce additional classes on Saturday mornings reflects a sound decision basing on the presumption that students will have free days on Saturdays. Furthermore, the timing of the classes, which is a two-hour window between 8:30 am and 9:30 am is probably the most favorite time for a student as shown in the chart above . It is the effect of a morning classes time is a good timing for the students will have woken up and look forward to a brighter day ahead. Hence, Saturday mornings are the highest attended classes of all classes and it is the most profitable for Porpoise Swim School.
Figure 3: Sum of cost per class
The chart above represents the total cost per class on any given day when lessons are conducted in the school. The Saturday classes generate a revenue of $9.730 in a week. It is the third best performing class in terms of total revenue after Monday $1.256,50 and followed by Friday which is $1.193,50 and Tuesday $1.144,50. However, from Figure 2 above, it is apparent that Saturday classes run for two hours, while the rest of the classes run for longer hours, for instance, Monday classes run for five and a half hours. It implies that the Saturday classes are the most profitable class in any given week or term compared to any other days.
2.3 Recruiting a new teacher
Figure 4: Revenue per teacher
The analysis of recruiting new teacher above shows that Regina’s decision to recruit a new teacher who is tied up with experience and high professionalism is an indication of building a highly productive team that will build up the revenue from the business. However, the data show otherwise. The data analysis of teachers' productivity data is calculated by summing all income generated by each of the teachers in the team. Obviously, Tom is the most productive and the most profit-generating teacher in the team. On the other side, Rachael who is the new addition to the team performs only slightly better than Regina, who could be said to be teaching more or less out of fun rather than solid dedication. However, since Regina is the owner of the business her income is less of concern. With this in mind, Rachael has done it her lowest performance because she is the newest teacher and has the least amount of students.
3.0 Other Factors Affecting Profitability
It contrasts the dominant factor that affecting the profitability of the school is the rate of student enrollment. As a result, the more the number of students that enroll for a particular class, it will bring more profit to the business. However, other factors affecting profitability are the total of teacher pay rates. The higher the pay rate, the number of the teacher or the total number of classes per year, then the more likely the business would experience low profitability. For example, there are two of Tadpole classes in the Saturday morning at the same time, that guided by a different teacher which is Rachael and Maryanne. In order to gain more profitability, it is better than the Tadpole classes are combined into one class only to reduce the cost of the teacher. Nevertheless, the higher number of classes would hire more teacher and therefore it will cost more money that currently maintained by the management.
4.0 Conclusion
Porpoise Swim School, which is managed by Regina Sharky is facing an uncertain business future An analysis of the changes from the provided data describing the school shows that only a portion of her decisions was beneficial to the business and certainly not all. The new Saturday morning classes and the introduction of the Dolphin swimming class were made to change the business for a better future project to gain more profitability. However, adding a new class (Penguin) did not really bring the expected. A further analysis of the data through the use of pivot tables recommends that Regina eliminates the Penguin class and pay more attention to the peak times of student attendance.
5.0 Recommendations
The first recommendation for the Porpoise swimming school would be eliminating the Penguin class. The Penguin class proves to be the least profitable of all classes. It is a new class that has been added to the swimming program yet its presence does not maintain its cost. Therefore, the best decision would be doing away with the classes and concentrating on the others that give more profitable. Secondly, it would be paying more attention to the scheduling of the classes with more emphasis on peak hours except for Saturday mornings in order is to enroll more students into classes running in the peak hours and avail more teachers to such hours as well as during Saturday mornings. Thirdly, it is avoiding an extra of a teacher, since the new teacher gives a less profitable if compared with Tom. Each teacher amounts to a cost to business and therefore either maintaining the current number of teacher for increasing profits.