1. Indentify and justify the current business level strategy a. accurately identify Hālau Online's current business-level strategy, justifying by considering the basis and breadth of the way in which it competes. b. an excellent answer integrates Hālau Online's core competencies into a discussion of it business-level strategy. committed to the industry with similar sizes vie for market share. These companies spend relativelylittle to serve additional customers and offer content that can be quickly obsolete.In-person or traditional classroom-based education is a robust alternative to the services offeredby the online education industry. Also, students, the primary buyers of online education services,can choose among different providers. However, they cannot negotiate prices and terms becausethey do not purchase in bulk and can neither easily make their content nor give up on thedifferentiated content offered by the online education industry. Content creators and educatorsprovide the most necessary materials and expertise to the customers of the online educationindustry. Although there has been a growing number of content creators and educators, theirofferings have become more similar.Many environmental factors influence the online education industry. The trend for lifelonglearning has been on the rise recently as people seek to constantly improve their skills andknowledge to stay competitive in the job market. This trend has been driven partly by frequent anddisruptive technological changes, which compelled people to continuously adapt and learn newskills to stay relevant and employable. The development of new leaming platforms and theincreasing availability of online course materials have been other factors in the growth of the onlineeducation industry.However, the recent implementation of stricter accreditation and online privacy laws may haveunforeseen implications for online education providers' viability. Also, the government considerseducation a merit good and has been planning comprehensive legal reforms to reflectthis perspective. Finally, the decrease in disposable income and the record-high interest rateshave significantly decreased customer spending and made customers more inclined to considerprice when making purchases.Although Halau Online is one of the leading firms in the industry regarding market share, it hasbeen facing increasing pressure from investors to increase its profitability. Specifically, the growthrate of its profitability has been lower than investors' expectations. If Halau Online does notimprove its profitability, investors will likely prioritize other companies in the industry that candemonstrate strong financial performance and a clear path to profitability.The two managers, Atalanta and Naya, met in the conference room to discuss the company'sproblem, a sense of urgency hanging heavy in the air. As they sat across from each other at thetable, they could feel the weight of the situation pressing down on them, a daunting challenge theyknew they had to face together.They began to speak, and each took tums to present their thoughts and suggestions.Atalanta: "We cannot ignore the reality of the market. We have investors and need to find a wayto stay profitable to respect our fiduciary responsibility."Naya: "I know. However, we cannot let our mission slip away in the pursuit of profits. We are.known for providing affordable, high-quality online education to all students, but now we arepressured to be another company chasing profits. We should prioritize and address the needs ofdisadvantaged students.2Atalanta: "I understand that, but there has to be a way to balance profitability with our mission."Naya: "We should organize a company-wide meeting to discuss and develop a comprehensive listof possible courses of action. It will not be easy, but it is worth it."Atalanta and Naya left the meeting feeling hopeful and energized. Halau OnlineHalau Online is an online education company. It was founded to reduce the educational equity gapin the U.S. by providing affordable, high-quality online education to students from allbackgrounds. It offers various online courses and programs in different fields, including business,technology, and science. Its courses are designed to be flexible and convenient, allowing studentsto learn at their own pace and on their schedule. In addition to traditional coursework, Halau Onlineoffers various interactive learning experiences, such as live webinars, virtual group discussions,and one-on-one tutoring sessions.Hälau Online recognized the importance of offering high-quality educational content that wasrelevant, engaging, and tailored to the needs of each of its students. To achieve this, it investedheavily in research and development and hired a team of experienced and expert instructors intheir respective fields to create and review its course material. Although the mission of HalauOnline helped the company's recruitment efforts, it also offered competitive compensation andbenefits packages to hire and retain top talent. Such practices, coupled with investments in researchand development, significantly increased the company's capital expenditure and costs.Halau Online also used advanced analytics and student feedback to continuously improve andupdate its content. Furthermore, Hälau Online consistently gathered data on the evolving abilitiesand skills that employers required and quickly developed and offered courses to train in thoseareas, outpacing all competitors. In reality, at least 20% of the courses offered by Halau Online atany given time were new and unique offerings that were explicitly designed to meet the evolvingneeds of employers. To do so, Hälau Online incentivized internal competition rather thancooperation among employees and various project teams. However, one of the unintendedconsequences of such a competitive culture was increased stress, burnout, and turnover, which canundermine the long-term ability of Hälau Online to innovate and be successful.In addition to focusing on the quality of its content, the company invested in improving the userexperience on its platform. For example, it implemented patented state-of-the-art technologiesregarding learning management systems, online platforms, and video conferencing tools tofacilitate interactive and collaborative learning. These technologies also provided intuitive, user-friendly, and personalized support, interface, and content to its students helping Hälau Online toincrease the number of its subscribers significantly. Besides, the company offered flexible andaffordable payment options for its subscription business model to make its products and servicesmore accessible. Furthermore, the company sought partnerships and alliances with leadingeducational institutions and industry experts, enhancing its offerings' credibility, legitimacy, andvalue and allowing it to tap into new resources and expertise.The industry in which Hälau Online competes is peculiar. Online education does not requiresignificant upfront costs or specialized physical assets. However, companies may face regulatoryhurdles, such as accreditation requirements, that can make it more challenging to enter the market.Additionally, established companies have an advantage in brand recognition and customer loyalty,making it more difficult for new entrants to gain a foothold in the market. Many companies

Introduction: Halau Online is an online education company that offers affordable, high-quality…

Answered: 1. Indentify and justify the current…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

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1. Indentify and justify the current business level strategy

a. accurately identify Hālau Online's current business-level strategy, justifying by considering the basis and breadth of the way in which it competes.

b. an excellent answer integrates Hālau Online's core competencies into a discussion of it business-level strategy.

committed to the industry with similar sizes vie for market share. These companies spend relatively
little to serve additional customers and offer content that can be quickly obsolete.
In-person or traditional classroom-based education is a robust alternative to the services offered
by the online education industry. Also, students, the primary buyers of online education services,
can choose among different providers. However, they cannot negotiate prices and terms because
they do not purchase in bulk and can neither easily make their content nor give up on the
differentiated content offered by the online education industry. Content creators and educators
provide the most necessary materials and expertise to the customers of the online education
industry. Although there has been a growing number of content creators and educators, their
offerings have become more similar.
Many environmental factors influence the online education industry. The trend for lifelong
learning has been on the rise recently as people seek to constantly improve their skills and
knowledge to stay competitive in the job market. This trend has been driven partly by frequent and
disruptive technological changes, which compelled people to continuously adapt and learn new
skills to stay relevant and employable. The development of new leaming platforms and the
increasing availability of online course materials have been other factors in the growth of the online
education industry.
However, the recent implementation of stricter accreditation and online privacy laws may have
unforeseen implications for online education providers' viability. Also, the government considers
education a merit good and has been planning comprehensive legal reforms to reflect
this perspective. Finally, the decrease in disposable income and the record-high interest rates
have significantly decreased customer spending and made customers more inclined to consider
price when making purchases.
Although Halau Online is one of the leading firms in the industry regarding market share, it has
been facing increasing pressure from investors to increase its profitability. Specifically, the growth
rate of its profitability has been lower than investors' expectations. If Halau Online does not
improve its profitability, investors will likely prioritize other companies in the industry that can
demonstrate strong financial performance and a clear path to profitability.
The two managers, Atalanta and Naya, met in the conference room to discuss the company's
problem, a sense of urgency hanging heavy in the air. As they sat across from each other at the
table, they could feel the weight of the situation pressing down on them, a daunting challenge they
knew they had to face together.
They began to speak, and each took tums to present their thoughts and suggestions.
Atalanta: "We cannot ignore the reality of the market. We have investors and need to find a way
to stay profitable to respect our fiduciary responsibility."
Naya: "I know. However, we cannot let our mission slip away in the pursuit of profits. We are.
known for providing affordable, high-quality online education to all students, but now we are
pressured to be another company chasing profits. We should prioritize and address the needs of
disadvantaged students.
2
Atalanta: "I understand that, but there has to be a way to balance profitability with our mission."
Naya: "We should organize a company-wide meeting to discuss and develop a comprehensive list
of possible courses of action. It will not be easy, but it is worth it."
Atalanta and Naya left the meeting feeling hopeful and energized.

Transcribed Image Text:Halau Online Halau Online is an online education company. It was founded to reduce the educational equity gap in the U.S. by providing affordable, high-quality online education to students from all backgrounds. It offers various online courses and programs in different fields, including business, technology, and science. Its courses are designed to be flexible and convenient, allowing students to learn at their own pace and on their schedule. In addition to traditional coursework, Halau Online offers various interactive learning experiences, such as live webinars, virtual group discussions, and one-on-one tutoring sessions. Hälau Online recognized the importance of offering high-quality educational content that was relevant, engaging, and tailored to the needs of each of its students. To achieve this, it invested heavily in research and development and hired a team of experienced and expert instructors in their respective fields to create and review its course material. Although the mission of Halau Online helped the company's recruitment efforts, it also offered competitive compensation and benefits packages to hire and retain top talent. Such practices, coupled with investments in research and development, significantly increased the company's capital expenditure and costs. Halau Online also used advanced analytics and student feedback to continuously improve and update its content. Furthermore, Hälau Online consistently gathered data on the evolving abilities and skills that employers required and quickly developed and offered courses to train in those areas, outpacing all competitors. In reality, at least 20% of the courses offered by Halau Online at any given time were new and unique offerings that were explicitly designed to meet the evolving needs of employers. To do so, Hälau Online incentivized internal competition rather than cooperation among employees and various project teams. However, one of the unintended consequences of such a competitive culture was increased stress, burnout, and turnover, which can undermine the long-term ability of Hälau Online to innovate and be successful. In addition to focusing on the quality of its content, the company invested in improving the user experience on its platform. For example, it implemented patented state-of-the-art technologies regarding learning management systems, online platforms, and video conferencing tools to facilitate interactive and collaborative learning. These technologies also provided intuitive, user- friendly, and personalized support, interface, and content to its students helping Hälau Online to increase the number of its subscribers significantly. Besides, the company offered flexible and affordable payment options for its subscription business model to make its products and services more accessible. Furthermore, the company sought partnerships and alliances with leading educational institutions and industry experts, enhancing its offerings' credibility, legitimacy, and value and allowing it to tap into new resources and expertise. The industry in which Hälau Online competes is peculiar. Online education does not require significant upfront costs or specialized physical assets. However, companies may face regulatory hurdles, such as accreditation requirements, that can make it more challenging to enter the market. Additionally, established companies have an advantage in brand recognition and customer loyalty, making it more difficult for new entrants to gain a foothold in the market. Many companies

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