Running head: MLS COMPREHENSIVE TEST

MLS Comprehensive Test: Analysis of Two Investment Scenarios for Kochville State
University
Rubn E. De Pea
Fort Hays State University

MLS COMPREHENSIVE TEST

Introduction
According to the instructions, this paper will consist in the analysis of two potential
investment scenarios for fictitious Kochville State University (KSU). Then, I should address three
open-ended questions related to the matter by providing evidence-based conclusions based upon
strengths and/or limitations of the two scenarios.
Scenario A is for KSU to invest a $500,000 grant in an e-learning business aimed at
developing useful applications and software to enhance the academic experience of students.
Greg Jackson, who oversees KSUs Center for Learning and Teaching, is behind this idea. He
alleges that in addition to immediate profits, the business may scale up to such levels that big
players in the software industry such as Google or Microsoft may be interested in buying it from
KSU at a hefty amount. If that were to happened, the huge profits generated by that potential sale
that could greatly benefit the university future expansion plans
(https://blackboard.fhsu.edu/bbcswebdav/pid-2060927-dt-content-rid16353464_1/courses/MLS000_3/MLS%20Core%20Exam%20S16%20.pdf).
Conversely, Scenario B calls for KSU to utilize the aforementioned funds to open up a
green energy business. Pat Maki, who is KSUs Dean of Science and Technology, is promoting
this idea. Her rationale is that the investment will have a more impactful effect in the community,
as more people seem to be more interested in alternative, clean energy that will ultimately help
them become independent from the conventional grid. KSUs president, Drake Uber, seems to
lean toward the green business idea because of potential savings in electricity cost for KSU, by
installing two windmills in the campus. Moreover, he will use the savings for scholarships,
reduce the cost of textbooks, and even provide three year of employment for ten students

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(https://blackboard.fhsu.edu/bbcswebdav/pid-2060927-dt-content-rid16353464_1/courses/MLS000_3/MLS%20Core%20Exam%20S16%20.pdf).
Question #1
Greg Jackson claims that creating an e-Learning business will be the best investment for
Kochville State University. What are the strengths and/or limitations of Greg Jacksons
position on this matter? Based on the evidence, what conclusion should be drawn about
Jacksons claim? Why? What specific information in the documents led you to this
conclusion? Be sure to cite the information in the documents as well as any other factors
you considered that led you to this conclusion
(https://blackboard.fhsu.edu/bbcswebdav/pid-2060927-dt-content-rid16353464_1/courses/MLS000_3/MLS%20Core%20Exam%20S16%20.pdf).

Strengths
There seems to be a growing number of both anecdotal and empirical evidence that
support Greg Jacksons position that investing in development of new technology for educational
purposes could be a great idea. From an anecdotal perspective, I have a good friend whom I will
called Dan, to protect his identity, who several years ago left a great position as a software
developer for an educational software-development company in Tennessee to accept another in
Oregon that offered more money and benefits. After five years in Portland, he and his wife
discussed about the possibly of returning to TN, but Dan was uncertain about how the IT job
market was in r the how the job market was in recent years, particularly in Nashville, where they
were aiming to reside. After some research and job applications, Dan was completely surprised
that in less than three weeks after applying for dozens of positions that he found, he was given
five job offers, contingent upon checking of referrals. He ultimately chose to work for
HealthStream, a company that, among other things, specializes in developing educational
programs for physicians (http://www.healthstream.com/).

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Moreover, it is axiomatic the knowledge revolution that has occurred in recent years,
particularly with the availability of affordable and efficient smartphones, tablets and other
mobile devices across the globe. We cannot deny we have transformed into a society of
voracious app consumers, whether educational or others, particularly for younger generations.
Consequently, there seems to be a huge need for innovators in the vast field of knowledge.
In this regard, the great management guru Peter Drucker (1994) argued, many years ago,
that The basic economic source the means of production, to use the economists term is
no longer capital, nor natural resources (the economists land), nor labor. It is and will be
knowledge [] Value is now created by productivity and innovation (p.8).
This rapid adoption of productive and innovation seems to have been particularly
prevalent in colleges and universities in recent years, thanks to e-learning. A very revealing
2012 article in The Pew Research Center presented a comprehensive view about the future of
higher education in light of the increased appeal to e-learning. Among other things, the article
stated that
For a millennium, universities have been considered the main societal hub for
knowledge and learning []. Today, though, [] [t]he transmission of
knowledge need no longer be tethered to a college campus. The technical
affordances of cloud-based computing, digital textbooks, mobile connectivity,
high-quality streaming video, and just in time information gathering have
pushed vast amounts of knowledge to the placeless Web. [] An anonymous
survey respondent noted, The age of brick-and-mortar dinosaur schools is about
to burstanother bubble ready to pop. The price is too high; its grossly inflated
and the return on investment isnt there. Online learning will be in the ascendant.

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There will be more international interactions (Anderson, Boyles, & Rainie, 2012,
n.p.).
Now, what type of applications will be crucial toward effective e-learning programs?
According to Pappas (2013), there are a number of specific trends in the global e-learning
market, including open online courses and micro learning modules. He also contended about the
paradigm shift in higher education circles as many colleges and universities across the globe
continue to expand the offerings of entire undergrad and graduate programs. In fact, he infers
that universities will have the majority of their student off-campus. This has had and will
continue to have profound implications in recent years, particularly from a research perspective.
Pappas could not have presented it more clearly when he stated that
Tedious publications, worn lectures, and absence of updated material will soon
come to their very end, if they have not come to an end! Students participation in
knowledge building is the new comparative advantage for those who want to
stand out in the education field. Knowledge is easily accessible and we need to let
our students/learners create knowledge autonomously (2013, n.p.).
As we can see, Pappas seems to have corroborated with Drucker about ongoing,
innovative information as a key commodity in a post-capitalist, global economy. He also
concluded that the future of e-learning is promissory, provided we continue developing new
electronic learning technologies while making sure that older technologies in the field become
adaptive to the new paradigms.
Authors such as Rosen (2014) have also predicted a bright future for e-learning
applications. Among other things, the author has stated that applications such as MOOCs

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(massive open online courses), mLearning (Mobile Learning), Virtual Technologies, and
Gamification, will continue to play a significant role for decades to come. Teachers and
professors will play more a role of a facilitator, motivator and confidante rather than a
knowledge conveyor or disciplinarian. As a result, the learning experience will be richer for
students due also to the fact they will no longer be confined to a traditional class, with a
predetermined number of students; rather, they will be able to have at their disposal a broader
learning experience with students from all over the world. As an off-campus student, I can give
testimony of how enriching and affordable my learning experience has been at FHSU,
particularly by interacting with students from all over the country and even a few from overseas.
Another advantage of these technologies is that more and more young people, a
whopping 93% of them, are online, and 75% own cell phones, according to a 2011 report.
(DeAngellis, 2011).
So far, it looks like research supports the notion that e-learning opportunities will
continue to grow for decades to come. However, does it make economic sense, as Greg Jackson
sustains, to justify the $500,000 investing for an e-learning business at KSU? It looks like, at
least from an inferential standpoint, Jackson might be right, according to research. In this regard,
Templeman (2014) argued that it has been customary in recent years that big corporations such
as Google are in the constant pursuit acquiring smaller companies that have been innovative
enough to develop products that have succeeded to scale in the industry. Most specifically,
Templeman contended that Startups and small businesses are the heart that beats the lifeblood
of innovation through the business world []. And no matter why you innovate, you can rest
assure the business world will take notice (2014, n.p.).

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Moreover, evidence suggests that educational-specific startups within a university setting

may have the potential of scaling to unimaginable monetary value in just a few years. That is the
case of ANGEL Learning, an e-learning application that faculty members at Indiana University
had created barely ten years before Blackboard Inc., acquired it for $100 million, yielding $23
million in profits. In fact, IU president said it was their most successful university startup
company (Indiana University, IU News Room, 2009).
Limitations
While the winds seems to blow in favor of Greg Jacksons e-learning business idea, I
found sufficient evidence that educational software companies are not exempt from hurdles,
particularly technological and social, just to name a few:
Technological limitations
Technologically speaking, no matter how brilliant and scalable the project is, empirical
evidence suggests it is a very risky business due to its ongoing, transformative innovation to keep
up with an increased demand for better, faster, and cheaper (and even free) applications in a the
current hyper-competitive global economy. In this respect, Cochran (2014) contended that
At a company such as Facebook, innovations occur on a daily basis. But, with the
scale of their user base comes a significant increase in risk. Rolling out the wrong
innovation to users can have a seriously negative impact on their business (e.g.,
Facebook Beacon) []. Change creates instability, and when you unleash this on
the technology that you depend on, you better be sure the end state is worth the
cost of the transformation (n.p.).
Another example of potential innovation-related technological nightmares, is the case of
Blackboard, Inc., which I mentioned earlier as success story of acquisition of Angel Learning for

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$100 million in 2009. Blackboards CEO Jay Bhatt is trying hard to turnout years of hateful
complaints by both students and faculty members alike due to the companys reliance of an
outdated technology that has relied on a clunky, slow interface that made basic tasks like class
discussion and uploading assignments difficult. Getting anywhere within the system, users
complained, took dozens of clicks, and the system was aesthetically stuck in the early 2000s
(Hensley-Clancy, 2014). Due to those complaints, and the resulting loss of market share to other
emergent, more nimble educational applications, Blackboard was forced to innovate and has
improved its interface and will continue to do so, and also change the companys image among
educators (2014).
Potential backlash due parental and educators concerns
Renowned author Rifkin (2000) argued that both educators and parents feel that the more
students receive their learning experience from virtual worlds, the fewer social skills they
develop in order to succeed in real world. Rifkin could not be more emphatic on this when he
contended that Civil educators argue that access to the knowledge available in cyberspace and
virtual worlds, while essential and necessary, must be accompanied by access to the collective
knowledge and wisdom embedded in geographic-based communities (2000, p. 254).
Conclusion to scenario #1
Based on the evidence presented, one can conclude that while evidence demonstrates that
Greg Jacksons e-learning business idea may be able to scale and perhaps one of the software
players might even be interested in eventually buying it for a substantial amount, it is uncertain
how prepared Jackson is to develop an innovative e-learning business that could keep put with
rapid, innovative technological demands and at the same time be capable to addressing parental
and educators concerns of potential students limitation of social skills by current e-learning

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models. Jackson might well have identified a team of brilliant KSU students willing to go for the
long haul in creating innovating technologies that can withstand the test of time in the superfast,
changing world of innovative technological knowledge ahead.

Question #2
Pat Maki claims that a green energy building makes good economic sense, asserting that
it will benefit the local community, as well. What are the strengths and/or limitations of
Pat Makis position on this matter? Based on the evidence, what conclusion should be
drawn about Makis claim? Why? Is there a better solution, and if so, what are its
strengths and/or limitations? Be sure to cite the information in the documents as well as
any other factors you considered that led you to this conclusion
(https://blackboard.fhsu.edu/bbcswebdav/pid-2060927-dt-content-rid16353464_1/courses/MLS000_3/MLS%20Core%20Exam%20S16%20.pdf).

Strengths
Pat Maki seems to have a good business idea for KSU as green energy solutions seem to
be in the mind on many people as a way to counteract the effects of human activity on the
environment. Her project not only would support KSUs president in providing clean energy, but
would have the utilitarian effect of assisting Kansans interested in green energy solutions.
Another positive aspect of Makis project is that renewable energy solutions seem to be
more appealing in recent years. Arguably, Al Gore probably brought global awareness to
unprecedented relevance through An Inconvenience Truth, his award-winning documentary.
Among other things, Gore sustained that while there was still disagreement among the scientific
community, in almost 1,000 recent peer-reviewed journal articles on the topic, 100% had agreed

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that the earth is becoming warmer than ever. He argued that unusual atmospheric events such as
a hurricane in South America and the devastating strength of hurricane Katrina are definitely
related to increase global warming (Guggenheim, director, 2006). There is no question that Al Gore
continues to have influence across the nation. Several governors have pledged reducing their
states contribution to greenhouse effects, including New York governor, Mario Cuomo, last
year (Fink, 2015).
Another point that favors Makis project, is that green energy initiatives have huge
support from the federal government, so far. This support is mainly in the form of tax rebates,
even 30% if one installs a solar array (S, n.d.). Moreover, the Obama administration has recently
issued an executive order to commit the federal government to boost its consumption of
renewable energy to 20% y 2020 (Montgomery, 2013).
In addition, Maki can make the case that, inferentially speaking, her project makes
financial sense to benefit KSU. For example, several years ago Fort Hays State University
invested $9 million to install two wind turbines that will supply approximately 97 percent of the
energy that the university consumes. This project will save the university $600,000 the first year
and almost a million dollars in succeeding years (Clause, 2013).

Limitations
High cost-low output considerations
Pat Maki may encounter a series of hurdles ahead. To begin with, for some people
these small changes [related to green energy] may not be yielding the desired long-term cost
savings. Others are just not satisfied by the reduction in their carbon footprint that results from
small lifestyle changes (S, n.d.). For example, even with federal government hefty tax breaks, a

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solar-panel project can take 6-10 years on average to recoup the initial investment (S, n.d.). Most
specifically, S. (n.d.) sustained that although many of these projects can save you a bundle over
time, many of them are expensive and require years before they justify the initial expense (n.p.).
Another issue is finding the right location particularly for wind and solar energy and power
supply unreliability (Bell, 2013, n.p.). However, in a more recent article in New Republic,
Rebecca Leber stated that the solar industry has grown dramatically, employs more people than
the coal industry, and recently has solar become cost-competitive with coal and natural gas
(Leber, 2015).

Sustainability issues in the long run

There are experts in the green energy sector who argue that the management of
fluctuating outputs of non-conventional sources of energy, such as electricity produced by wind
and solar arrays, is extremely challenging to manage. In fact, according to Bell (2013), Trieu
Mai, a senior analyst at the National Renewable Energy Laboratory laments, The grid was not
built for renewables [and] Halper notes, Planners are struggling to plot where and when to
deploy solar panels, wind turbines and hydrogen fuel cells without knowing whether regulators
will approve the transmission lines to support them (n.p.).

Opposition by interest groups

Makis project may encounter a series of hurdles by interest groups. Anecdotally
speaking, many people who are off the grid sell the extra energy they produce to local electric
companies, and then buy it back in the evening when they need it the most, particularly if the

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energy source is a solar panel array. One threat for that is if the local electric companies are
unable to expand their distribution line due to primarily lack of necessary funding.
In the specific case of Kansas, where Maki wants to start up and grow her business, there
is growing concern that conservative group American for Prosperity has been lobbying for a
while to slow down or even stop altogether wind-energy expansion. For example, just a few
months ago, they successfully lobbied to introduce bill SB318 to cut funding for the Kansas
Electric Transmission Authority (KETA). Senator Robert Orson, who chairs the Utilities
Committee for the Senate justified the bill due to the states current financial crisis. However,
others, including the Sierra Club, argue that this is another effort by American for Prosperity to
curb wind-power development. If Makis potential customers realize of hurdles ahead, they may
not be as enthusiastic for investing in wind or any other off-the grid initiatives (Uhlenhuth,
2016).

Uncertain political outcomes in an election year

Seventy eight percent of Americans believe that global warming is a serious threat and
even a higher number (80%) believe the government should be companies tax incentives to
produce electricity from renewable sources, according to a recent poll by the New York Times,
Stanford University, and Resources for the Future (The New York Times, 2015). Nonetheless, it
is uncertain that current incentive policies to develop clean energy will be in place if there is a
change of party in the 2016 presidential elections.
It is a known fact that, typically, Republican politicians are skeptic of environmental
claims and staunch opponents of incentives to the industry. For example, in 2014, the

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Republican-controlled senate blocked an $85 billion tax cut bill because it did not contain
specific language to deny tax credit benefits for wind-power production (Atkin, 2014).
Most recently, Republican presidential candidates Donald Trump and Ted Cruz, have
made declarations to the press questioning climate change. Trump called it a hoax and Cruz has
vowed to eliminate all subsidies for green energy production if he is elected president (Stephens,
2016). Nonetheless, if either Hillary Clinton or Bernie Sanders win the presidency, subsidies to
renewables are likely to continue (Stephens, 2016). Still, the uncertainty of the matter seems to
threaten any investment in green-energy for the moment.

Increased banning by local governments

Besides being unreliable due to high costs and low output considerations, and
unsustainable in the long run, Maki project may be in jeopardy from a legal standpoint. This
seems to be the most damaging threat of Makis project. Existing off the grid projects may run
the risk of facing a lawsuit by local municipal authorities if such authorities determine that
residents are in violation of the International Property Maintenance Code, as happened to Robin
Speronis, an off the grid Florida resident, not too long ago (Ali, 2015). Moreover, future green
energy startups may face opposition as well. In fact, according to Jennings (2016), Off-grid
living is slowly and methodically being regulated out of existence by many local governments
throughout the United States and Canada []. [Z]oning regulations, building codes and other
local ordinances are driving those who wish to live off the grid out of many communities (n.p.).
Before Maki decides to make the investment, she seriously needs to consider that strict
regulations exist throughout Kansas as well, which might jeopardize the scalability of her
project. In fact, not too long ago, Doug Myers, a Hutchinson, KS, resident who owns a wind

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turbine business was ordered to remove the wind turbine he installed in front of his house due to
code violations. Among other things, a city representative argued that the reason for the order
was that one of Myerss neighbors had complained about the turbines noise or the shadow
flickers that the turbines spinning blades produced. Moreover, the city claimed that Myers did
not submit the corresponding permit for project evaluation and approval. Myers, had a different
opinion, however. He argued that his wind turbine was not even operational and that the citys
was actually unfairly restricting the location of wind turbines to lots at least half an acre in size,
which he said eliminated 80 percent of the potential market for the turbines he sells through
MidTech Energy Solutions (Stephens, 2014).
As one can see above, it does not matter the true nature of the dispute between city
officials and Mr. Myers. The truth the matter is that at least wind power generation startups
seems to be a very risky endeavor at least in Hutchinson, which inferentially one can conclude
this could be the case of other locations in Kansas, including Kochville.

Conclusion to scenario #2
Undoubtedly, the evidence presented backs Makis project as an opportunity to protect
the environment by facilitating a source of clean, renewable energy to Kansans who want to be
off the grid. However, due to potential backlash of her project in the early stages, Maki needs to
be aware of regulations and she needs to make sure to have the proverbial ducks in a row ready
before moving forward with the investment. Here are a few recommendations by experts in the
field:
Regarding zoning issues, [] talking with local authorities [is of utmost
importance] as regulations are different in different counties, towns, and even

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neighborhoods. Mueller [] also advises getting to know your neighbors. In

many places with restrictions, those rules will only apply if the neighbors choose
to report you or are somehow offended by your situation, she explains. So
getting to know your neighbors early on, explaining to them your motivations for
choosing this lifestyle, and how all of your utilities work, can help to avoid that
from happening. She adds, It's good to develop allies early on.
Generally, the closer you are to a city the more rules there are to follow. Because
of this, off-the-gridders often choose to live in rural areas in counties that want to
increase their tax base and may be more open to alternative structures. Alexander
lists Colorado, Oklahoma, Alaska, Wyoming, Arkansas, and Missouri as some of
the states that promote off-the-grid living (Johnson, 2014).
Question #3
What is your solution to this issue? Why? What specific information in the documents led
you to this conclusion? Be sure to cite information in the documents as well any other
factors you considered that led you to this conclusion. For your response to this question,
you can use additional information from other sources and/or from your own knowledge
of this topic. (https://blackboard.fhsu.edu/bbcswebdav/pid-2060927-dt-content-rid16353464_1/courses/MLS000_3/MLS%20Core%20Exam%20S16%20.pdf).

Based on all the evidence provided, I would recommend KSUs President to adopt Greg
Jacksons e-learning business idea. I drew to this conclusion based on risk factors involving the
alternative option, particularly the hurdles Pat Maki might encounter in regard to local
government regulations for her potential customers (Stephens 2014).
Moreover, my recommendation was based on inferential information for a quasicost/benefit comparative analysis of the two different investment options. The first information
came from Blackboards acquisition of ANGEL Learning from Indiana University (IU).

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According to the News Release, the company grew to almost 200 programmers, analysts and
employees working in sales and marketing in just nine years. The sale generated IU a $23
million profit (University, IU News Room, 2009). Again, inferentially speaking, Jacksons
project has the potential of scaling to such levels that a big software mogul could buy it for a
hefty amount. With the proceeds, KSUs president, Mr. Uber, would be able to eventually
acquire his two windmills and provide scholarships, and student employment and text cost
reduction programs.
In addition, I utilized inferential information from FHSUs acquisition of two wind
turbines to power 97% of its campus. Something worth noticing is that it took FHSU more than
six years in planning and an investment of $9 million before the two turbines were installed.
Based on FHSUs projection in energy savings of $600 thousand the 1st year and between $700
and $900 thousand the following years (Clause 2013), it could take roughly a decade before the
university recover its investment.
The following chart summarizes my decision in selecting Jacksons business, and not
Makis:

JACKSONS E-LEARNING BUSINESS IDEA

MAKIS GREEN ENERYGY BUSINESS IDEA

Reasons for

Reasons against

Reasons for

Reasons against

1. Online college
education continues
to grow as an
efficient, affordable
option, Arguably, the
model could be
viable in supplying
the ever-growing
need for innovative elearning technologies

1. Applications could
become obsolete
soon. Keeping up
with rapid
technological
changes could be
challenging like the
case of Blackboard
(Hensley-Clancy,

1. Clean, renewable
energy which is also
good for the
environment
(Johnson, 2014); (S,
n.d.)

1. High cost and low

output (Bell, 2013.)

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(Anderson, Boyles, & 2014), (Cochran,

Rainie, 2012)
2014)

2. The business
model has a viable
opportunity to
develop innovative elearning applications
(Templeman, 2014)

2. Potential backlash
from traditional and
parents (Rifkin,
2000)

2. Tax breaks for

clean energy
(Montgomery, 2013)

2. Investment takes
too long to recover
(Clause 2013)

3. Innovative, elearning applications

have a bright future
(Pappas, 2013);
(Rosen, 2014).

3. Potentially
disruptive to
neighbors (Stephens,
2014)

4. Potential sale to
software mogul if
business scales
(Indiana University,
IU News Room,
2009)

4. Legal
challenges/Local
government
regulations (Ali,
2015); (Stephens,
2014); (Jennings,
2016).

5. This project can

capitalize in
information as a key
commodity in the
global, postcapitalism
environment
(Drucker, 1994)

5. Political risks/ End

of tax-breaks (Atkin,
2014); (Stephens,
2016); (Leber, 2015)

6. Online applications
are safer than ever for
young people
(DeAngellis, 2011)

6. Off the grid folks

may encounter
roadblocks selling
surplus energy to the
grid in certain areas
as The grid was not
built for renewables
(Bell, 2013)

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7. More and more

young people own
mobile devices
(DeAngellis, 2011).
Jacksons project can
tap into the market by
developing
innovative e-learning
applications for the
mobile market.

7. KSU president
may have unrealistic
expectations for
energy independence
through two
windmills counting
on Makis green
energy investment
(Clause 2013)

8. Lobbying of
special interest
groups to block windpower expansion
(Uhlenhuth, 2016)

Conclusion
Based on the evidence presented, Jacksons e-learning business idea seems to be more
likely to succeed than Makis green energy proposal. Moreover, as the chart above indicates, the
e-learning business has seven supporting arguments vs. two against it. In contrast, the green
energy business plan has only two supporting arguments vs. eight against.

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References
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Retrieved from http://countercurrentnews.com/2015/06/court-rules-living-off-the-grid-isillegal/
Anderson, J., Boyles, J. L., & Rainie, L. (2012, July 26). The future of higher education.
Retrieved from http://www.pewinternet.org/2012/07/27/the-future-of-higher-education/
Atkin, E. (2014, May 16). Senate blocks $85 billion tax cut bill because it would have helped
wind energy [Web log post]. Retrieved from
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Bell, L. (2013, December 10). Green power gridlock: Why renewable energy is no alternative.
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Clause, K., & Associated Press. (2013, June 11). Fort Hays State installs wind turbines to
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million [Press release]. Retrieved from
http://newsinfo.iu.edu/news/page/normal/10800.html
Jennings, D. (2016, April 01). 3 shocking ways off-grid living is slowly being banned In
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