Industry Analysis
Industry Overview
Davenport University is part of the College, Universities, and Professional Schools industry (NAICS code #611310). The industry includes private and public college and universities that offer bachelor’s or graduate degrees, but does not include community colleges or not-for-profits. Industry products include Undergraduate degrees, Master’s degrees, and Doctorate degrees.
In order to attend and be admitted to an industry college or university, individuals will need a high school diploma or the equivalent. Students taking part in this industry can participate and obtain their degree online or on campus, and obtaining educational credits for students with life experience is becoming more and more common, especially for older adult nontraditional students. Using their previous workplace or military knowledge, students are able to acquire academic benefits using Credit for Prior Learning (CPL). The following industry analysis will be focusing on Universities and Credit for Prior Learning data.
The annual industry revenues were $501 billion (IBIS World, 2015) and the industry is expected to grow steadily with industry revenues looking to increase as well. This growth is most likely due to high unemployment rates and people looking to improve their resume by acquiring a degree in a competitive job market. High school retention rates are also on the rise, which could be leading to the higher education demands as well.
As of right now, the college and university sector is considered stable (Moody, 2015) and as the economy continues to recover, government funding for higher education is expected to increase. Although modest growth is expected, colleges who are receiving the majority of their revenues from student tuition charges will continue to be affected by the location and demographics of the community they serve.
It is predicted that the industry will see growth of 3% or more in their aggregate operating revenues for the next 12-18 months with the largest contribution being student charges at both public and private institutions. Revenue streams for private and public institutions consist of patient care, student charges, state funding, endowment income, research, and philanthropy or gifts. All are forecasted to increase in the next 12-18 months (Moody, 2015).
Credit for prior learning is credit toward degrees offered at colleges and universities in the industry for previous experience, but has been challenging for industry schools to successfully launch and maintain. There are many different reasons for this, for example, the name for CPL can change from school to school. Some universities call it experiential learning, alternative credit, or prior learning assessment (PLA).
Credit for prior learning can also be handled by different departments at each school for example, some students would consult their transfer department, others go to their PLA program department, or veteran program. CPL can also take on different meanings at different schools in terms of how it is offered. Some universities grant credit using exams, others examine workplace training, and some use portfolios to assess a student’s knowledge.
Industry Outlook
The industry outlook can be affected by many different things such as revenue and growth or any changes in the economy and community the school serves. It is projected that the industry itself has the potential to see a positive outlook if revenue and growth increase 5% or more, but anything less than that would suggest a negative outlook.
Credit for prior learning is trending in the industry and according to Rene Cintron, an assistant dean of business technology at Delgado Community College, when people acquire job skills then change careers, those skills can be assessed and transformed into college credits using different formats. She anticipates more changes in policies in order to accept these types of nontraditional credits and even offer a grade based on their outcomes (ACE, 2015).
Davenport’s Credit for Prior Learning (CPL) is a program which can grant students college credits for experiences that they have had outside of the classroom. Primarily, the recipients of credits through CPL are non-traditional adult students and military students.
There are several ways in which a student can earn credits through the CPL program:
1. Tests: Students can take a CLEP, DSST or Davenport Challenge test in order to be awarded credits. These tests are standardized tests that are created to test comprehension of particular courses - students are required to study independently or use past experiences to pass these tests. Results are given immediately and students will receive credit on the spot.
2. Transfer credits – CPL is also responsible for evaluating transfer transcripts and awarding credit as they see fit.
3. Portfolio – Students have the option to write a portfolio which demonstrates their knowledge and experiences. The portfolios are then reviewed and students can receive credits based off of their experiences.
The purpose of CPL is for college students to be granted credits for prior learning. This is a beneficial program for students because it can help save money by receiving credits rather than having to pay for a full class. Another benefit of CPL is that it is a way to finish your degree at a faster speed than if you were to just take all in-seat classes. The program is primarily funded by grants, but also a portion of money comes directly from the school. Students currently hear about the program through word of mouth by their advisors and professors.
Conclusion
Davenport University is a beneficial industry, which gives credits to students. The credit is awarded to students with life experiences such as older, adult, and the non-traditional students. The use of credit for prior learning has been beneficial as it helps students to save money. This happens as students receiving credits do not pay for a full class. The industry is very important, despite difficulties in its launching and maintenance CPL is handled in different ways, departments and meaning given at different schools, students have been able to finish their degrees faster, thus saving time.
Recommendations
The program is primarily funded by grants and a portion of money comes directly from the school. To improve the program, the government and non-governmental organizations should also take part in funding it. In addition, CPL charges should not be affected by the location and the demographics of the community the students serve. This can improve performance and output in improving the economy levels. The program should be announced through media, social sites, and churches. The advertisement could increase the number of students enrolling to educational institutions. Currently, prospective beneficiaries hear about the program through word of mouth by their advisors and professors.
Davenport University program can be the best program if the program can be launched and maintained in a similar manner in all the schools. It should be handled by the same department in all schools and should deploy the same meaning on how it is offered in all the schools. This can be simply achieved by the industry giving out clear and succinct guidelines, rules, and conditions on how CPL is handled in all educational institutions.
References
Best Practices: Credit for Prior Learning. (2015). Retrieved March 27, 2016, from
http://www.acenet.edu/news-room/Pages/Best-Practices-Credit-for-Prior-Learning.aspx
Farish, D. (2015). Higher Ed thought leaders forecast 2015 trends. Retrieved March 27, 2016,
Industry Reports. (2015). Retrieved March 27, 2016, from http://www.ibisworld.com/
Lakin, M. B., Seymour, D., Nellum, C. J., & Crandall, J. R. (2015). Credit for Prior Learning: Charting Institutional Practice for Sustainability. Retrieved March 27, 2016, from https://www.acenet.edu/news-room/Pages/Credit-for-Prior-Learning-Charting-Institutional-Practice-for-Sustainability.aspx
NAICS Search Results. (2015). Retrieved March 27, 2016, from
http://www.naics.com/naics-search-results/
Sharma, P., & Bogaty, E. (2015, December 02). 2016 Outlook - Moderate Revenue. Moodys
Investor Service. http://www.cic.edu/News-and-Publications/Multimedia-Library/CICConferencePresentations/2016%20Presidents%20Institute/20160105-The%20Financial%20and%20Strategic%20Outlook%20for%20Private%20Colleges%201.pdf
