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(11-11-2015, 08:49 PM)d.o.g. Wrote:(11-11-2015, 07:41 PM)CCUV Wrote: No 40c no look,I don't buy the notion ang mo are willing to pay for anything that come with a high price,more and more ang mo are not on expat pay,I also think the company make a mistake
.they should have kept the Patterson campus and buy a smaller site at pasir ris,by doing these students will have choice with two location which wouldn't lead to a big drop in student numbers,bad business planning, couple with rising costs,it is a recipe for destruction in earning
The company did not have the choice to keep the Paterson campus. The lease was expiring and the government decided they "needed" to have a condo there. As for the Pasir Ris site, it was "take it or leave it". When the government offers sites for schools it does not change the size of the sites according to the schools' desires. The sites are pre-designated, if you think you will have fewer students you bid lower. You don't have an option to shrink the site, you can only build a smaller school on the same plot of land, or you can bid on a smaller site in a different location.
Enrollment has dropped because a lot of expatriates have been sent home or simply laid off. That is not something the school can control. What they can control is the quality of the education they provide i.e. "value for money". Gross disparities aside, school fees do not inform parents' choice of school. "Daddy lost his job" is an acceptable reason to change schools. "Daddy needs the money to buy more toys" is not.
The school has an official capacity of 4,800. It currently enrolls considerably less than that, so obviously the fixed costs (wages, utilities, interest) hurt. The flip side is that when enrollment improves (which is something the government also wants very much) profits will improve disproportionately.
What you say is true,they have no choice and they also not the top choice among expat I guess,they might also overestimate the stickiness of their brand,if the above case happened to ACS will it be the same situation? I hope people are not emotional, I don't think there is a quick turn around, more competition,recessionary type economy and increasing overhead with a 150m bond outstanding,doesn't look good huh?