Cradle Top Learning School Case Study Analysis

INTRODUCTION Formal education in the Philippines follows the educational ladder of 6+4+4 structure, (i.e., six years of elementary education, four years of secondary education, and four years of higher education for a degree program). However, the current curriculum has been enhanced for K to 12 and now gives more focus to allow mastery of learning. Structure of Formal Education 1

Preschool education is optional for children 3 to 4 years old; some private organizations and some public schools offer nursery, kindergarten and preparatory classes. This is not prerequisite for entrance to grade one for the elementary level but most of the private schools require preschool of kindergarten education before admission. On the other hand, elementary education is required for children six to eleven years old and some private exclusive schools offer seven years of elementary el ementary education.2

1

http://www.deped.gov.ph/k-to-12/curriculum-guides

2

http://en.wikipilipinas.org/index.php/Formal_education_in_the_Philippines#Preschool_education

I. PROFILE OF THE ENTERPRISE

Cradle Top Learning School  was a corporation established in the Republic of the

Philippines and registered under the Securities and Exchange Commission (SEC). HISTORY AND COMPANY BACKGROUND

Cradle Top Learning School was founded in September 22, 2011. 3 The school is the result of the dream of Yolanda to guide and provide quality education of the young minds. Having no capital, only her burning desire has been the key to start the school doing mostly all the job by herself. Her husband and son were also onboard during the initial stages of the establishment of the school. Yolanda has used many marketing schemes to promote the school and to be known in Rizal. She has conducted a house to house campaign to be certain that all of the residential houses within their neighbourhood will be informed of the existence of School. She also offered a free summer tutorial sessions to enhance the interest of the parents. Overtime, Cradle Top Learning School began to expand and has granted a permit to offer Kindergarten I and II and Grade 1 and 2. Eventually the school grew and is now offering Nursery, Kindergarten, Preparatory, and Grade 1 to 7, as seen in below recent tarpaulin of the school:

3

https://www.facebook.com/pg/The-Cradle-Top-Learning-School-389397254411742/about/?ref=page_internal

VISION

To provide young students with a comprehensive college-preparatory education. 

Comment: Statement is vague. Our group believe that the school should be specific and clear on what they want to become. Hence, we suggest that the Vision could be “To be the best school that provides high quality teaching in  preparing students for higher education.” 

MISSION

To provide young students with a comprehensive college-preparatory education. Mission as per Facebook Page:

Let them shine! Let them excel! Let them be on top! So let the CRADLE TOP Brings out their best!

OBJECTIVES 

To cultivate to the children the academic achievement, spiritual development, social maturity, and physical skills necessary to glorify God.

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To provide a safe and caring learning environment where students are challenged to reach their maximum potential.

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To commit to a Christian philosophy, accelerated curriculum, inter-active educational tools, and professionally qualified teachers.

EDUCATIONAL PHILOSOPHY

The school management, staff, and parents of Cradle Top believe that: 

Each student is unique, valuable, and created in God’s image.

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Education should be God-inspired and student-centered and is a partnership among students, teachers, parents, and the broader community.

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By providing a broad-based curriculum which emphasizes strong academics and creative expression, students will become critical and analytical thinkers.

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A well-rounded education (field trip, computer, physical fitness, entrepreneurial) will provided meaningful opportunities for students to become active and positive members of the community.

MARKETING MIX VARIABLES (7 P’s) Marketing Mix

Description

Cradle Top Learning School

Product

The Product should fit the task consumers want it for, it should work and it should be what the consumers are expecting to get.

Place

The product should be available from where your target consumer finds it easiest to shop. This may be High Street, Mail Order or the more current option via e-commerce or an online shop. The Product should always be seen as representing good value for money. This does not necessarily mean it should be the cheapest available; one of the main tenets of the marketing concept is that customers are usually happy to pay a little more for something that works really well for them.

The product in educational sector is the education itself/learning of the student. The facilities such as surroundings, libraries and the educational materials can be considered as product. It is located at Sub Urban San Jose Rodriguez, Rizal. It was strategically located at the end unit of a socialized housing unit cluster beside the pastoral house of Iglesia ni Cristo chapel in F. Manalo area of the socalled Erap City. The corresponding price in the educational sector is the amount of money (tuition fee) that parents/guardians of their child/children pay to the school.

Price

Promotion

People

Processes

Physical Evidence

Advertising, PR, Sales Promotion, Personal Selling and, in more recent times, Social Media are all key communication tools for an organisation. These tools should be used to put across the organisation’s message to the correct audiences in the manner they would most like to hear, whether it be informative or appealing to their emotions. All companies are reliant on the people who run them from front line Sales staff to the Managing Director. Having the right people is essential because they are as much a part of your business offering as the products/services you are offering. The delivery of your service is usually done with the customer present so how the service is delivered is once again part of what the consumer is paying for.

Promotion may be key element in the school marketing mix. Yolanda is currently using the facebook page as a medium for advertisement. They also used tarpaulin that can be seen in area that is visible to people.

Almost all services include some physical elements even if the bulk of what the consumer is paying for is intangible. For example a hair salon would provide their client with a completed hairdo and an insurance company would give their customers some form of printed material. Even if the material is not physically printed (in the case of PDF’s) they are still receiving a “physical product” by this definition.

Intensity of intangibility the educational services will be reduced by physical evidence. School facilities can be considered physical evidence

All the staff and teachers are the people that provide service to the student.

The school’s employees were filling double roles at the same time. The three teachers, in addition to their classroom duties, were also expected to perform the roles of school registrar, treasurer, and liaison officer. The school secretary also acted as a teacher aide for most of the day.

GENERAL ENVIRONMENT There are many strategic analysis tools that a firm can use, but some are more common. The most used detailed analysis of the environment is the PESTLE analysis. It consists of various factors that affect the business environment. POLITICAL 

Rizal Provincial Government (RPG) focused its allocations to improve the capacity of all primary/elementary students of Rizal.

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Scarcity of classroom and teachers in public schools.



Generation Z was acknowledge by the government and they even set it as one of the considerations setting standards for basic education.

ECONOMIC  Public school teachers have much greater salary than The Cradle Top Learning School can offer.  Expansion of operation (increase in grade level) 

Increase of minimum salary wage in the province of Rizal



Rodriguez, Rizal is considered as one of the first class municipalities with an income of P55 million and above

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Deflation. One might think that a general decrease in prices is a good thing because it gives consumers greater purchasing power. To some degree, moderate drops in certain products, such as food or energy, do have some positive effect on consumer spending. A general, persistent fall in prices, however, can have severe negative effects on growth and economic stability.4

SOCIAL 

Yolanda Puno is a well known member of Iglesia ni Cristo

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Cradle Top Learning School faced 16 competitor schools in Barangay San Jose

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Some parents have the tendency to withdraw their children’s enrolment in the middle

of the school year. (rapid demographic changes) 

Cradle Top Learning School Is considered as “Sectarian School” affiliated with the Iglesia

ni Cristo, parents with different religion may not enroll their children to Cradle Top. 

Aside from formal preschool and basic education, self learning programs such as Kumon and Math Plus Academy   are already available which are very flexible in terms of schedules.



4

Most parents with child on pre-school and basic education level are millennials.

http://www.investopedia.com/articles/personal-finance/030915/why-deflation-bad-economy.asp

TECHNOLOGICAL 

With the new curriculum of the Department of education for basic education, basic computer learning is already integrated.



Demand of schools for advanced technological teaching.

LEGAL 

Republic Act 10157, or "The Kindergarten Education Law" made Kindergarten the compulsory and mandatory entry stage to basic education.

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The Department of Education was mandated by law to implement the K to 12 curriculum which set a brand new standard in basic education

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DEPED Accreditation

ENVIRONMENTAL 

The school was strategically situated in a municipality that was densely populated, and where a good percentage of residents were of school age.

COMPETITIVE ENVIRONMENT The five forces model of analysis was developed by Michael Porter to analyze the competitive environment in which a product or company works.

PORTER’S FIVE FORCES 1. Threat to New Entrants Medium Barrier of Entry  DEPED accreditation Parents usually do the diligent task of scouting for a school for their children. It is important for most parents to check and find out if the school has a permit issued by DepEd.  Technological advancements Rapid growth in technology has become evident. The best way for a new entrant to be successful would be if they have an advantage when it comes to technology.  High capitalization is required Capital is a vital part of any new business venture. If a school is financially stable it can easily enter the market.

2. Bargaining Power of Buyers High Bargaining Power  Price Sensitivity Cost is a major factor in parent’s decision. 

 Availability of substitutes In relation to first bullet, if the tuition fee is high or other factors are not met, parents would opt to choose other school.

3. Bargaining Power of Suppliers High bargaining power  Limited suppliers of books accredited by DepEd Educational publishing industry in the Philippines is being monopolized by the members of the Philippine Educational Publishers’ Association (PEPA). Although educational reading materials are not limited to the produce of the members of PEPA, its members are the only accredited publishers of the official textbooks. 

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Teachers competencies The teachers’ competencies consist of knowledge, skills and attitude. Mos t parents want their children to get good grades, and acquire knowledge and skills necessary for the child’s future endeavour. This would be possible if in the beginning of the school year of a child, a skilful and competent teacher will guide a student.

4. Threats of Substitutes Low Differentiation between competitors  Technology Advancement With the standard curriculum every school to offer and the trend of technology, technological advancement is a very big factor of differentiation but it also incur cost to the school. 

Substitutes performance The performance of substitute is also a big factor. Parents often choose schools with higher performance. Enrolment-Graduate ratio for example.

5. Industry Rivalry The Industry of Education is a big market since education is considered to be a basic necessity. There are many schools in Rodriguez Rizal that offers K-12 curriculum.

Technology plays a high role in the competition because even for primary education computer literacy is important.

INDUSTRY’S DOMINANT FEATURES Market Size and Growth Rate The industry has a very big potential for a large market since education is a basic necessity to all. Since Cradle Top is located strategically in a good location where socialized housing is close, this can be a good and substantial market for a small scal e school that only caters up to grade 4 students.

Number of Rivals Cradle Top Learning School faced 16 competitor schools in Barangay San Jose, specifically:  Biblical Education Life and Leadership School 

Cinco's Learning Center

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College of Arts and Sciences of Asia

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Pacific Rodriguez Rizal, Inc.

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EBBC Christian Academy, Inc.

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EUL-Shalom Learning Center Inc.

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Faith Christian Academy of Rodriguez Rizal, Inc.

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Holy Family Montessori School of Rodriguez, Inc.

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Jesus Christ Saves Global Outreach Christian Academy

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Kasiglahan Faith Christian Learning Center, Inc.

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Lord Most High Christian School, Inc.

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Melvinshire Learning Center

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Mizrachs Learning School of Rodriguez Rizal, Inc.

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Pamahay Learning Center

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St. Therese Learning School of Rodriguez, Inc.

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Three Kings Academy of Rodriguez, Inc.

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Thrones Rainbow Angel Workshop, Inc.

Of all these school only the Melvinshire Learning Center and MizrachsLearning School of Rodriguez Rizal, Inc. are the primary competitor of Cradle Top Learning School since these two school are within the vicinity of Cradle Top Learning School which is a strategically location. Although Melvinshire Leaning Center is located at a not so good surroundings.

Capital requirements The capital requirement for establishing a school is generally high because capital allocations should focus on the need for high-quality school places and the condition of facilities, with key government priorities also featuring in expenditure decisions. Since Cradle Top Learning School started with no capitalization, Yolanda then used their personal monetary allowance.

Barriers to Entry DepEd Accreditation  – Department of Education issued and revised DO 32, s. 2006 - Revised

Policies on Voluntary Accreditation for Elementary and Secondary Private Schools in Aid of Quality and Excellence for Basic Education. Based on this DO, It is the declared policy of the State to encourage and assist, through the Department of Education (DepED), private elementary and secondary schools which desire to attain standards of quality over and above the minimum required by the State. The schools should satisfy the following criteria/guidelines: 

A reasonably high standard of instruction.

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Well-developed mechanism for improving and upgrading its own curriculum.

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Creditable performance of its teachers that promote effectiveness of teaching and learning. High level of achievement and performance of students in both academic and cocurricular activities. A highly visible community, extension program describing the nature and extent of student and teacher involvement and the impact of such program to the community. A strong faculty development tradition evidenced by an appropriate budget allocation and/or systematic plan for staff development programs. The schools should submit documentary evidence to support their claims.

Technological Advantage  –  Nowadays, technology in the classroom is becoming more and

more predominant. Technologies such as mobile, tablet, laptop and computer are replacing our textbooks, and we can research just about anything that we want to on our smartphones. Social media has become commonplace, and the way we use technology has completely transformed the way we live or lives. It will also minimize the time and efforts of teachers to make lesson plans and lectures. The impact that technology has had on today’s schools has been quite significant. This widespread adoption of technology has completely changed how teachers teach and students learn. Teachers are learning how to teach with emerging technologies (tablets, iPads, Smart Boards, digital cameras, computers), while students are using advanced technology to shape how they learn. By embracing and integrating technology in the classroom, we are setting our students up for a successful life outside of school.

Tool: External Factor Evaluation Matrix (EFE)

Key External Factors (Opprotunities) Political: Scarcity of classroom and teachers in public schools.

Weight

Rating

Weighted Score

0.05

1

0.05

0.04

1

0.04

Expansion of operation (increase in grade level)

0.05

3

0.15

Rodriguez, Rizal is considered as one of the first class municipalities with an income of P55 million and above

0.03

1

0.03

0.05

3

0.15

Republic Act 10157, or "The Kindergarten Education Law" made Kindergarten the compulsory and mandatory entry stage to basic education.

0.07

2

0.14

DepEd Accreditation

0.03

3

0.09

0.05

3

0.15

Rizal Provincial Government (RPG) focused its allocations to improve the capacity of all primary/elementary students of Rizal. Economic:

Social:

Yolanda Puno is a well known member of Iglesia ni Cristo Legal:

Environmental:

The school was strategically situated in a municipality that was densely populated, and where a good percentage of residents were of school age.

Key External Factors (Threats) Political: Generation Z was acknowledge by the government and they even set it as one of the considerations setting standards for basic education. Economic:

Weight

Rating

Weighted Score

0.05

1

0.05

Public school teachers have much greater salary than The Cradle Top Learning School can offer.

0.05

1

0.05

Increase of minimum salary wage in the province of Rizal

0.07

1

0.07

Deflation

0.04

1

0.04

0.07

1

0.07

Social:

Cradle Top Learning School faced 16 competitor schools in Barangay San Jose

Some parents have the tendency to withdraw their children’s enrolment in the middle of the school year. (rapid demographic changes)

0.05

1

0.05

Cradle Top Learning School Is considered as “Sectarian School” affiliated with the Iglesia ni Cristo, parents with different religion may not enroll their children to Cradle Top.

0.06

1

0.06

Aside from formal preschool and basic education, self learning programs such as kumon and mathplusacademy are already available which are very flexible in terms of sc hedules.

0.07

1

0.07

With the new curriculum of the Department of education for basic education, basic computer learning is already integrated.

0.05

1

0.05

Demand of schools for advanced technological teaching

0.07

1

0.07

0.05

3

0.15

Technological:

Legal:

The Department of Education was mandated by law to implement the K to 12 curriculum which set a brand new standard in basic education

TOTAL

1

2.28

Tool: Competitive Profile Matrix (CPM) Cradle Top Learning school CRITICAL SUCCESS FACTORS

Melvinshire Learning Center

Mizrach Learning School of Rodriguez, Rizal weighted rating score

weight

rating

weighted score

rating

weighted score

Advertisement

0.10

3

0.30

2

0.20

2

0.20

Strategic location

0.20

4

0.80

3

0.60

3

0.60

DepEd Accreditation

0.10

3

0.30

3

0.30

3

0.30

Facilities

0.20

4

0.80

3

0.60

3

0.60

Technological learning advantage

0.25

1

0.25

4

1.00

1

0.25

Grade level offered

0.15

3

0.45

1

0.15

4

0.60

1.00

2.90

2.85

2.55