Case study of Capella Education Company

Casestudy of Capella Education Company

CapellaEducation Company is one among leading companies in Minneapolis. Itis famous for its best services as well as its ability to producemany skilled graduates across Minneapolis. Capella is an educationalcompany. This is a company that works as a profit-education. Itsheadquarter is situated in Minneapolis, MN. This company owns auniversity also called Capella University. It operates through onlineand offers all courses under all levels, such as Doctoral, Master’s,and Post-baccalaureate certificates. Capella enrolls a large numberof students every year. The performance of the company is shown bythrough the measurement of students’ withdrawal and their defaulton loan rates. The high rate of enrollment is overwhelming. The rateat which the undergraduate students default from loan payment ishigh. A 2006 research showed that the Capella Company makesaccounting errors during its calculations of student eligibility. Onits failure to account for students, eligibility makes it fail toreturn the funds disbursed at the place of the students who droppedout during their first year. Capella Company often spends anunusually large proportion of revenue on marketing and a relativelysmall or less amount on the online program instructions.

Challengesfaced by the company and their remedies

CapellaCompany should address the issue of aggressive enrollment that iscommon within the institution. The company must ensure that it takesin a manageable number of students. A small or manageable number ofstudents will solve the problem of the online students who complainsabout the institution ignoring them. They will get the requiredattention. The company must ensure that there is no accounting errorcase on the students ‘eligibility case on the drop out beforecompleting the course. The company should ensure that the facultyserving in some positions that are under part-time mode to be changedto a full-time mode to avoid the academic dependence. It shouldensure that it maintains its better control on recruiting practices.The other way forward is to invest more in services of students.

Conclusively,the company faces some challenges just as the other companies. Theencouraging factor is that it works out its challenge and solves themto provide the best services to its employees, as well as thestudents in the university. The company has proven to be the bestdespite its many challenges of the accounting error and increasinglynumber of enrollment among other issues.


Cashman,K., &amp Forem, J. (2003).&nbspAwakeningthe leader within: A story of transformation.

Hoboken,N.J: J. Wiley.