Collapse of Abc Learning Centre Austrailia

3354 words 14 pages
Table of Contents

Table of Contents 1
1.0 Introduction 2
2.0 The Internal and External Environment 2 2.1 The Internal Environment 2 2.2 The External Environment 3
3.0 Managerial Ethics 5
4.0 Corporate Social Responsibility 7
5.0 Conclusion 10
References 11

1.0 Introduction

ABC Learning Centers, an Australian company was then run by CEO Eddy Groves and at one point was the world's largest provider of early childhood education services before the company bizarrely collapsed. The share price had dropped from a massive $8.50 to just $1.15 within a span of a year (Cohen C 2009)
The purpose of this report is to identify and critically discuss management issues at ABC Learning Centers (ABCLC) with specific focus on three areas: • The
…show more content…

This view is suggested after ABCLC slashed 1000 part-time workers to save $26 million in an attempt to curb any losses threatening the company’s stability (Smartcompany, 2007). And according to a study, there also was little concern at ABCLC on the quality and quantity of food that was served to children due to the tight food budgets. And furthermore, staff members complained that ABCLC reduced costs on sanitary maintenance of their centers. The argument above provides evidence that CEO Eddy Groves has forgone and sacrificed the overall quality of teaching for profit maximization and rapid expansion. It can also be said that Eddy Groves has high ego strength, as he pushes forward with conviction on his beliefs.
According to Blake D (1991), “the commitment of teachers and managers in higher education will be encouraged by responsive and democratic forms of quality assurance which emphasize improvement in the quality of student learning, course development and growth in tutors’ professional expertise”. In the case of ABCLC, the management’s emphasis was on rapid expansion of the company. Parents paid a hefty amount of $56 - $62 per day to have their child be sent to ABCLC (Faroque F 2005); and for the immense charges, their child deserves the finest of learning environments. Quality education in schools and colleges will lead to qualified human resources moving to higher education and in their producing highly qualified manpower for demanding