Upton College is a small liberal arts college located in upstate New York that has run into finan¬ cial difficulties in recent years. The decline in the number of students since the passing of the baby boomers, the trend toward business education, and the revival of interest in science and engineering have left enrollments dwindling. Upton has lost many of its tenured faculty mem¬ bers because it refused to grant salary increases over the past few years in the face of this finan¬ cial uncertainty. Consequently, many of the courses are covered by temporary and part-time instructors whose own education is lacking.

The president ol Upton College, Imelda Greer, has hired you to investigate the options and recommend a competitive strategy that they would follow. Your investigations lead to the following information: Upton still has several very good liberal arts professors who could form the base for a revival of the college as a specialist in liberal arts education. The departure of some other tenured faculty members is actually a blessing in disguise, since it opens up tenure “slots” and gives the college more flexibility in hiring new professors. There is a local demand for business education, since the nearest business school is 60 miles away. And since Upton has dormitories on campus, the reach of a business school could extend well beyond the local area. Science and engineering are another option that could save Upton, but the cost of supplying this kind of education is much higher than for liberal arts and business degrees. The administration at Upton is top-heavy and ultraconservative, with the exception of Ms. Greer, who says she would willingly fire them all and start afresh in order to save the college. Finally, the town in which Upton is located, and the surrounding countryside, are pleasant almost to the point of being idyllic.

(a) Consider the alternative strategies that Upton might follow, listing the pros and cons of each one.

(b) Advise Ms. Greer which strategy you believe Upton should follow, and what product, price, and promotion decisions should be implemented in order to ensure survival and achieve competitive advantage.