Argue why you agree with it or not based on decisions made

trayer university and Capella University completed an equal merged in 2018. As part of the merge agreement each university is operating actively but under the the name Strategic Education (SEI). before the merger both universities had a drop in admissions (Fain, 2017). This merger of two reputable institutions is a creative way to join forces in order to become a stronger solvent organization. American Higher education is expensive compare to other developed countries. Therefore, some universities/colleges give scholarships in order to maintain high or steady enrollment. Competition among these institutions is intense. In this economy, is hard to keep cost low and continued to provided quality education. Many institutions are merging in order to keep operation going.

Strayer and Capella are not the exception. Both institutions are reputable and brought to the table their strengths Strayer have 125 years of legacy and Capella counts with several online Masters and Doctoral programs for working adults (Strategic Education, 2019). Before Capella and Strayer merged in 2018 Capella acquired several other institutions. This allow Capella growth; increasing the programs offer in the Bachelor, Masters and Doctoral level (Capella, 2019).

There is much controversy regarding merging. In this case, the merger is an equal merger, both institutions are solvent considering our current economy and the competitive market for higher education. Both institutions gain a great deal and still are able to operate as separate businesses keeping their identity but under a "new mission and vision" (SEI, 2019). According to the new website SEI, enrollment has increase significantly. This merger has place SEI in to a competitive advantage by having a 100% online higher education at affordable rate and a 125yr legacy University which provides a hybrid degrees (Forbes, 2017)

In conclusion, the merge between Strayer University and Capella was a smart moved. Combining two rivals it reduces the threat of new competitors and substitutes. These two institutions expanded their markets by having capitalizing from each other strength. Capella offers several 100% online degrees, while Strayers provides hybrid courses. It gives a buyer (students) more choices of degrees, convenience of either taking online classes or a more traditional approach. SEI has more power over their suppliers because it is a much bigger institution which means a larger order of supplies. For a supplier loosing the contract with SEI means loosing a lot of money.

2.After reviewing the assigned assessment of Strategic Education, Inc. (SEI), I agree with its conclusion that SEI is a stronger corporation now than it was before the merger. The merger with Capella Education Company has created a financially sound and competitive company, with an increase in its market capitalization, stock price, enrollment and net profits.

Background

In October 2017, Strayer Education and Capella Education company announced an all-stock merger, worth $1.9 billion dollars. In the agreement, Strayer, which before the merger had a market value of $1.02 billion, would own about 52% of the combined company while Capella, previously worth $764 Million, would own about 48%, with the two companies combining corporate functions but remaining separate universities. In August 2018, Strayer and Capella finally merged, after receiving approval from its accreditor, forming an organization that collectively serves over 80,000 students.

A year after the merger, SEI reported earnings that proved its decision to merge was the right one. With total revenue at $241.7 million and adjusted earnings of $1.28 per share, SEI topped analysts' expectation and grew from the previous year.

Segments

SEI operates in three segments: Strayer, Capella and Non-Degree Programs

Strayer Segment: The Strayer segment, which consists of Strayer University accounted for 52.9% of revenue. Revenue in this segment grew 11.7% YoY to $127 million. Total enrollment also grew 11%, with the total number of students enrolled at 50,582.

Capella Segment: The Capella segment solely holds the Capella University. This segment reported revenue of $110.5 million, a whooping 152.4% YoY growth on the back of higher enrollment and increasing revenue per enrollment. Total enrollment in this segment grew at 2% resulting in38,451 students enrolled.

Non-Degree Programs Segment: The Non-Degree Programs segment is made up of other SEI organizations like Hackbright Academy, DevMountain, the New York Code + Design Academy and Sophia. This segment experienced an increase in revenue at $3.4 million, resulting in fewer losses that the previous year.

Strategic Analysis

Based on my comprehension and analysis of available data, the PESTEL framework seems best suited to identify the key macro environment level forces that might affect an organization.

1. Political: Under the current administration, SEI is benefiting from favorable regulatory policies. After revoking several Obama-era policies affecting for-profit universities, organizations like SEI are poised to receive over $11 million in financial aid, potentially increasing enrollment numbers in the short term. With an election coming up in a couple of months, these benefits might be short lived as democrats are most likely to pass regulations unfavorable to SEI's bottom-line.
2. Economic: Although the economy is currently booming and unemployment rates are significantly low, wages are at the lowest point in American history. This phenomena is resulting in workers seeking to improve and increase their skills in order to earn more money. The American economy has also experienced significant losses in manufacturing jobs, leaving millions unemployed with the wrong skills for the current job market.SEI will likely benefit from this as workers enroll in online schools to obtain graduate degrees and professional certificates to increase their chances of finding a job and making more money.
3. Social: According to NYU research paper titled "The Market Value of Online Degrees as a Credible Credential", hiring practices are less biased against graduates of online universities now than ever before making online degrees socially acceptable. This is likely to increase in the future, resulting in potential increases in enrollment numbers for SEI.
4. Technological: Due to advancements in technology and internet connection, it has never been easier to obtain a distance-learning degree. Organizations like SEI will surely take advantage of new innovations to effectively reach potential students and increase enrollment at its various schools.
5. Enviromental: With increase focus on climate change and an emphasis on clean energy, organizations like SEI can take advantage of the current climate and offer affordable degrees in fields like marine science, environmental science and oceanography which could attract students with interests in these fields.
6. Legal: There have been no recent legal implications affecting SEI. However, as enrollment continues to increase, SEI must ensure that it complying with all legal rules and regulations to prevent any negative impacts from lawsuits.

Conclusion

Based on my analysis, the merger between Strayer and Capella created a financially sound company which finds itself in a favorable environment. Being a major player in the education services industry, Strayer is well equipped to take advantage ofthe favorable regulations and economic environment to increase enrollments and company profits. With little to no obstacle, Strayer University is likely to continue growing.