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Business Problem

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Essay title: Business Problem

A technical college consisting of 5 campuses and approximately 2500 students resides in a geographical area that is currently experiencing aggravated economic challenges. The state, who is a major contributor of funds received by the college, has announced a minimum of a 6% reduction in budgeted funds for the next year. The impact to the college could be so profound that in order to compensate for the reduction, they may need to completely change their business strategy. This change may include imposing a hiring freeze, suspending all new purchases of supplies and equipment, and implementing a reduction in staff levels.

Importance of the Problem Facing the OrganizationWith a diminished contribution of funds, the college cannot operate in the same manner as before. An already tight budget has no room for an even lesser income. Students will suffer when materials are not available and teachers may look for better employment elsewhere. Additionally, the area surrounding the college is experiencing closures of major businesses and a rise in employee layoffs. Consequently, there is no reason to believe that things will improve anytime soon. This means, the college is now facing a crisis. Therefore, the college will need to either reduce its current expenditures or look for new resources that can compensate for the reduction of state funds.

Evidence of the Significance of the ProblemThe evidence is that the state has already mandated the reduction of funds. The level of reduction is yet to be determined but could potentially be greater than the 6% that was already announced.

Primary and Secondary Data SourcesPrimary data sources include: 1) college reports of enrollment, 2) populations of students in each program, 3) current budget, 4) future budget with projected reductions, and 5) an analysis of the population which intend to enroll.

Secondary data sources include: 1) the state unemployment rate, 2) the state budget, and 3) the number of new jobs created in the area.

Populations of InterestPopulations of interest include: 1) high school seniors, 2) middle class workers just out of high school, 3) current students at the college, and 4) the current staff at the college.

Dependent VariablesThe dependent variables for the technical college are the students, faculty, equipment, and materials. These dependent variables are influenced by explanatory variables and therefore they can be predicted. "Dependent Variable: In statistics, the variable which is thought might be influenced by certain other explanatory variables. The purpose is normally to enable the value of the dependent variable to be predicted from given values of the explanatory variable" (Clapham & Nicholson, 2005).

The number of students enrolled could be in direct correlation with the amount of money received by the college for funding operations. Student enrollment could decline if funds are decreased resulting in a diminished quality of overall operations.

The college's faculty could be affected by a decrease in funding. Faculty members may choose to leave and seek out more lucrative colleges. Others may loose their motivation to apply their teachings at the highest level.

The equipment required to maintain and sustain the campus facilities could suffer due to the lack of supporting funds. Repairs could be delayed and the purchasing of new equipment to replace outdated equipment could be postponed indefinitely.

The reduction of materials such as books, paper, writing instruments, and other necessary items that support the students and faculty could be detrimental. The lack of money could restrict the resupply of these items and result in a shortage.

Independent VariablesThe independent variables affecting the dependent variables are the uncertain funding offered to the college by the state, the number of employed families in the area that have college eligible children, and the number of potential students that are employed. All of these independent variables are explanatory and will influence the dependent variables. "Independent Variable: One of the variables that is thought might influence the value of the dependent variable in a statistical model" (Clapham & Nicholson, 2005).

The state has announced that they intend to reduce college funding by 6%. A decisive budget has not yet been released therefore the percentage of reduction could vary. This independent variable will have direct influence on the dependent variables and the amount of impact is still to be determined.

Additionally, the independent variables of the number of those who are eligible for enrollment, whether they are children living at home or they are in the work force, will significantly impact the schools budget and dependent variables. In correlation with the state's budget, the economy has been suffering. Businesses

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