Hello, The following methodology is to be used to solve the cases. 1. Title of the case 2.

Situation Analysis (3-4 paragraphs) 3. Identification of problem/s (The problems can be differentiated into Primary and secondary problems) 4. SWOT Analysis - Tabular Form - S and W are internal to the organisation, O and T are external - If SWOT cannot be carried out for the case, it has to be clearly mentioned. 5. Character analysis, if required - Highlight the Strengths and Weakness of each character 6. Generation of alternatives (options/solution) - As per the problems identified. 7. Suggestions from the options generated - Both Short term and Long term solutions are to be given. Merits and Demerits of each solution. 8. Selection of the best solution 9. Learning from the case Do revert for any clarification

Title: Study of possible reasons of for low market share of Turner Test Prep CO. and providing alternative solution to increasing market share Situation analysis: Jessica Turner after completing her masters in accounting, was not able to get a job with top accounting firms. Jessica Turner worked for several years with a small test prep company in San Francisco. Jessica Turner job was to manage the companys business affairs. Later she also began teaching math to students. Jessica received training from company in teaching basic testing skills. With her experience as a teacher she began studying for CPA exam and was able to clear it in first attempt. She realized that her experience and organized way of preparation for CPA exam would help others too. Therefore with the help of a local venture capital firm she started with a small company called Turner test prep co. near San Francisco bay area. CPA is one of the most complicated exams in the US which require time, effort and organize way of preparation. Pass percentage is around 25% and provide business opportunity for various training institute. Training institute can charge upto $ 1000 per student. National Testing Centre (NTC) is the primary player and competitor of Turner test prep co. NTC has a long experience in the business. NTC offers test preparation solution for various levels and also for various exams. NTC is able to provide full service solution to its student. Their main clients are the repeaters and the ones who opted for other courses. NTC offered free repeat courses for those who were not able to clear the exam. NTCs had a pass percent of 75 for CPA exams. Jessica Turner, CEO and founder of Turner test prep co. realized that the company is not able to increase its market share. Turner test prep co. provides one of the comprehensive solutions for the CPA exam. There pass percentage is also in line with the NTC. The company is able to increase the number of clients from the year it started operating but the market share is still low when compare to its primary competitor NTC. Though the prices of Turner are in line with NTC, market share is low at around 10 percent.

Problem: Jessica Turner, CEO and founder of Turner test prep co. realized that the company is not able to increase its market share. Turner test prep co. provides one of the comprehensive solutions for the CPA exam. There pass percentage is also in line with the NTC. The company is able to increase the number of clients from the year it started operating but the market share is still low when compare to its primary competitor NTC. Though the prices of Turner are in line with NTC, market share is low at around 10 percent. Jessica Turner is still not clear whether the pass percentage is due to quality of her companys program or students are bound to pass at some time. Turner markets her company by placing ads at various Bschools. Such efforts were not effective. She is in search of new ways of marketing her company in order to improve its market share. Turner Co. has a structured way of training with six weeks of lecture for six hours per day from qualified faculties and also provides various tapes and CDs for learning at home. Most of the students opted for tapes and CDs for learning instead of attending lecture. Therefore she wanted to restructure her training methods for those who opted to study from home. Jessica Turner forgot to calculate the breakeven point when the company started. Therefore she is not able to realize how many students are required to make profits.

Swot of Turner test prep co.: Strength: Comprehensive solution developed over a period of time and tested Increasing client base Pass percentage is comparatively higher than its competitors Individual attention is given to its client Guarantee program to repeat the course if student did not pass

Weakness: New to the market Overhead cost is too high New management and CEO without much experience Many of the clients are repeater and are somehow going to pass due to time bound Marketing strategy is not efficient or strategy is not yet matured

Opportunity Increase its presence in other markets across US Provide solutions for other exams Tie-ups with universities to increase its customer base Pass percentage is only 25 providing huge opportunity for business

Threat Competitor market share is too high Breakeven analysis is not been done and therefore there is no surety at what point profits will be generated Still dependent on external financing as a mean of running business

Jessica Turners strength and weakness Strength Qualified professional, Certified CPA, masters in accounting and has an undergraduate degree in business Management of companys business affairs and teaching and training skills is optimal to run business Positive feedback from her students mentioning her as a conscientious and innovative teacher Well organized in learning as well as teaching and dedicated to her work and to others Experience in running business related to training and teaching Good at finance and accounting skills

Weakness Though she had an experience, it was from a smaller firm with local reach Marketing skills are still not matured Scope of running business was limited to local and around San Francisco Lack of confidence related to her strategy and decision making Self-oriented and most of the decision was biased without consulting others

Alternative Solutions: Increase its presence in other markets across US. Currently they are located in San Francisco bay. There are at least 49 more states in US where they can increase their presence and also increasing their presence in global market Similar to its competitor NTC, Turner can provide training solutions for other exams like SAT, Toffel Tie-ups with universities to increase its customer base and provide mass discount Reduce its prices by controlling the overhead cost so that it can increase its customer base Develop new marketing strategy accordingly , break even analysis has to be done to understand when it start making profits and can repay the loans and restructuring its training program to attract new clients and providing better services to existing client Merger with other players in the market and increasing its market share

Suggestions: In the short run company should take additional loan and increase in presence in the other regions in US. Though it increases company dependency on external finance it will help company to increase its market share through new market. Once it is able to repay and can self-sustain through the profit generated it can go global and become overall market leader as a long term strategy. Similar to above solution taking additional loans and doing research on various training solution company can provide. On the basis of research result company can increase its training solutions on a long run Tie-ups with universities will provide additional customer base and reduce the overhead cost related to travelling and marketing but adds to cost through mass discount Reducing cost by reducing the travel, insurance, marketing and professor salary cost by way of negotiation and reducing prices to attract more clients. Demerit of such is the quality of the solution provided may get effected Marketing strategy was immature and requires new marketing initiative to be taken up which is a cost but can increase customer base. Company has to increase its awareness and should take up mass marketing. Company has to do breakeven analysis to understand the breakeven point and planned accordingly. Company has to restructure its training program based on market research. Above strategy increases cost but will help increasing customer base Merger can help in market share but most of the mergers are failure according to research

Best solutions: Short term:

Market research should be done in the beginning Break even analysis has to be done Additional loans should be taken Increase in marketing activity to increase customer awareness about the company New training program for other certification course should be introduce and restructuring the present one should be done Development of existing market, tie-ups with universities

Long term: Increase its presence in other states and across globe Reducing cost by way of economy of scale by going global Generate enough profit to repay the loans and achieve self-sustain state If above strategy does not work merge with other company

Learning: Importance of cross functional knowledge when it comes to start an enterprise. In the case Jessica Turner had the finance and accounting skills. But she was also required to do marketing, strategy formulation and running day to day operations related to business It is importance to have work experience and complete knowledge related to particular business before venturing into such business