Philadelphia After School Program Business Plan: Industry Analysis

This business plan project presents an industry analysis for an after-school program, focusing on the Philadelphia market. It includes an industry review highlighting the growing demand for after-school programs and the importance of STEM education. The analysis covers regulatory and legal concerns for establishing such a business, including licensing and tax obligations. A competitive analysis assesses existing after-school programs, identifying strengths, weaknesses, and competitive advantages like specialized STEM programs and online tutoring. A SWOT analysis outlines the program's strengths, weaknesses, opportunities, and threats, with strategies for maximizing strengths and mitigating weaknesses. The plan emphasizes the potential of virtual tutorials and webinars and the importance of effective marketing and employee recruitment to achieve success in a competitive market. References include books, journals, and online resources that support the analysis.

BUSINESS PLAN –
INDUSTRY ANALYSIS

TABLE OF CONTENTS
Industry Review...............................................................................................................................1
Regulation Review and Legal Concerns..........................................................................................1
Competitive Analysis.......................................................................................................................2
SWOT Analysis...............................................................................................................................3
REFERENCES................................................................................................................................4

Industry Review
The market of Philadelphia comprises of variety of after school programs which have
been encouraging social, academic as well as recreational activities among the young children.
With the assistance of these programs the children have been made available with varied
opportunities for development of their skills and knowledge in respect to different subjects. It has
been widely accepted by the people of Philadelphia that enhancement of these activities is a
necessity and plays an instrumental role in determining the ultimate success of a child. The
quality of services being provided by these after school services is considered as highly
satisfactory which can also be supported by the fact that about 93% parents of the region have
shown their satisfaction for these programmes (Statistics for Public Policy, 2016). In result of the
increasing demand of these programmes, an entire industry has been developed which functions
to take care of children and enhance their potential in the best manner possible. If specifically the
section of STEM is focused upon, it has been observed that various entities have indulged in
provision of these services. A high quality services are expected to provided at these centre
particularly because their focus is only on K-12 children. This requires them to provide services
which are high in quality and is capable enough to ensure enhancement in performance of
students.
In the past 5 years it has been observed that the industry has been struggling to effectively
deal with an increasing unemployment rate, which has reduced the overall capacity of people to
spend. However, it has been noticed that despite harsh conditions and the aggregate number of
students joining these programmes has increased with a significant number. Moreover, the
funding conditions were also not favourable in the past some time which has led many entities to
minimize their activities or even shut down. But what has remained constant is the increasing
demand which is becoming strong day after day. It is estimated that in the coming 5 years the
funding sources shall be developed and the employment rate shall also show some positive
trends, which shall provide extreme support for development of the entire industry.
Regulation Review and Legal Concerns
For setting up a business to provide after school programme, the concerned entity is
required to register its business and acquire Commercial Activity License. It is important to note
that this license can be acquired after ascertainment of business type and attainment of a tax
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account number. Since the business is being operated in the nature of partnership, it is important
that all the provisions of Law of Contract as well as Partnership are adhered by all the people
involved in the business. The primary rationale for selection of a partnership is that it makes
every involved person equally liable for operating the entire organization and be answerable for
activities of the entity. In addition, every partner shall be under an obligation to comply by the
code of conduct which is also legally enforceable in nature, as it has been entered into by them in
the form of a legal agreement.
Apart from these regulatory laws, the entity is also required to stay compliant with all the
provisions of taxation laws. Some of the specific taxes which are applicable on this business are
Business Income and Receipts Tax (BIRT), which becomes due on every April 15 in respect to
the activities undertaken by the entity in the prior year. Moreover, in pursuance to this law an
estimate in respect to the receipts of the following year shall be paid in full. Further, the City
Wage Tax is levied at the rate of 3.9004% (residents only) on the amounts withheld. The Net
profit Tax is another requirement which is levied on the amount of net profit made in the current
year and is paid in two instalments (Durlak, Weissberg and Pachan, 2010). The first payment is
due on April 15 and the second on June 15 of each year. Finally, the business use and Occupancy
tax is levied on all the businessses which are operating in the jurisdiction. Tax is levied at the
rate of 1.21% on the assessed value of the entire property. This assessment shall be obtained
from the office of Property Assessment and is required to be paid on a monthly basis by 25th of
every month.
Competitive Analysis
As mentioned earlier the industry is comprised from a variety of schools or institutes
which are providing their services in the field of tutoring or after school programmes. Apart from
many entities which are operating in the city, the specific organization which is closely existing
in the street is one of the potential competitor. One of the greatest strengths which the said entity
is enjoying is that it has gained high credibility in the market as it exists for a very long time.
However, it also faces one weakness that the services being provided are diversified in nature
and thus, the management is not able to concentrate on the expertise of any of the areas. In
addition, it is still operating on the traditional manner of teaching. In order to attain a competitive
advantage the business focuses only on K-12 students in the area of STEM. This shall enable us
to provide services which are specialized in nature (After School in Pennsylvania, 2017). It is
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believed that STEM program shall act as one of the factors for attaining competitive advantage
in the market. Moreover, the online tutoring programme is another measure for attaining
competitive advantage as it specifically caters to the need of convenience of the concerned
students. Lastly, the programme shall be offered with different packages of services which are
highly competitive in nature. Lastly, the business plan is also inclusive of creating a webinar
which shall enable the management to receive live feeds in respect to the capabilities of
respective students who are accessing tutorials in real time (Mekinda and Hirsch, 2013). Here,
company is required to carry out effective competitive analysis and thus identify the main
strengths and weaknesses of company so that competitive edge could be attained. Further, it is
crucial for carrying out online tutoring programme it helps in carrying out competitive analysis
so that improvement in the performance of firm can be attained. Thus, carrying out online
tutoring programme helps in identifying the competition and thus undertake effective strategies
so that strategies could be raised in regard to overcome competition and attain desired results.
SWOT Analysis
After understanding the position of industry it can inferred that the company is enjoying
the following strengths or weakness: Strength: The diversified and technologically advanced services which it purports to
offer. This shall enable the company to attain a competitive advantage in the market. Weakness: Company lacks experience in the field of imparting knowledge at such a large
level involving students in large number. Opportunity: The area of virtual tutorials and webinar have not been explored to its full
potential.
 Threats: Fierce competition in the market, which also involves entities with high
credibility and experience.
The business plan shall undertake each and every effort to maximize the strength by
launching programmes which shall tap this unexplored area. Every effort shall be made by the
management to provide services which are innovative in nature and supported by right personnel.
Hence, the recruitment of employees shall be undertaken very carefully, considering the special
requirements of the specific services. Also, effective promotional and marketing strategies shall
be developed and applied to promote the strengths to the potential market in the most effective
manner (Cross and et. al., 2010). Further, in order to manage the weakness, the management
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shall recruit employees and tutors who are highly experienced and an effective R&D department
shall be installed to appraise the management with all the relevant information in respect to the
ongoing trends and demands of the customers. Thus, every effort shall be made to cater to the
specific needs of the potential customers. This shall in turn enable the company to mitigate the
threat of fierce competition and gain popularity in the market.
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REFERENCES
Books and Journals
Centers for Disease Control, 2013. Make a difference at your school.
Cross, A. B. and et. al., 2010. Implementation quality and positive experiences in after-school
programs. American Journal of Community Psychology. 45 (3-4). pp. 370-380.
Durlak, J. A., Weissberg, R. P. and Pachan, M., 2010. A meta‐analysis of after‐school programs
that seek to promote personal and social skills in children and adolescents. American
journal of community psychology. 45 (3-4). pp. 294-309.
Mekinda, M. A. and Hirsch, B. J., 2013. After-school programs. Handbook of youth mentoring,
pp. 221-232.
Online
After School in Pennsylvania, 2017. [Online]. Available through:
<http://www.afterschoolalliance.org/policyStateFacts.cfm?state_abbr=PA>. [Accessed on
15th march 2017].
Statistics for Public Policy, 2016. [Online]. Available through:
<http://www.fels.upenn.edu/academics/courses/statistics-public-policy>. [Accessed on 15th
march 2017].
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