Company Profiles - CEC - Leaders in Education

Career Education Corporation (CEC) was founded instructure to current revenue levels.
1994 and according to their own statement, hasThe year 2007 is seen as a year of transition, of
become one of the world's leading providers ofRecognize, Redefine and Reach: "We were compelled
quality post-secondary educational services. Gary E.to the realities of the company's business situation,
McCullough is currently the President and Chiefto how we will conduct business, and to set and
Executive Officer of CEC.begin to goals that will return CEC to its history of
Colleges, schools and universities form a "CEC family"delivering strong business results and solid shareholder
and offer high quality education to approximatelyreturns." (1)
90,000 students across the world in a variety ofThe annual report gives some insight in the business
career-oriented disciplines and label by differentarchitecture of the company "building its reputation
brands.and external relationships by":
The mission statement: CEC is a global educationalEmployees, through increasing awareness, skills and
company committed to quality outcomes and careeraccountability
opportunities for a diverse student population.Schools: telling their stories
The value statement is represented by a circle withAlumni: connections and network
students and employees in the middle and formed by:Employers: meeting their needs and sharing successes
Integrity - Respect - Excellence - Social responsibility -Community: building partnerships and increasing
Diversity. Diversity is also what makes their missioninvolvement
statement unique. Diversity may mean a lot ofLegislators: educating and listening
different things. For example offering opportunitiesAccreditors and regulators: enhancing relationships
for those who do not follow the normal career path.To achieve this, leadership is needed. According to
The educational program shows a strong practicalCEC this resides in: vision, transparency and
orientation.accessibility.
The educational programs are career-orientedThe company is listen on NASDAQ (Ticker CECO).
providing knowledge and skills to competeThe last earnings data show a (negative) growth of
successfully in today's job market. There are five18% over the last 5 years from 2004 (1.71 / 2.12 /
business areas:0.97 / 1.01 / 0.77) to 2007 (2).
- CULINARY ARTS (12 percent of CEC students)To get an idea from its competitors, the following
- HEALTH EDUCATION (16%. Programs range fromare mentioned on (page 1 of 4):
those with basic clinical skills to skill-specific programs- Tyco International, Ltd.
(like cardiovascular technology and radiology)- H&R Block, Inc.
- INFORMATION TECHNOLOGY (7%. Information- ITT Educational Services, Inc.
Technology programs are offered at all degree levels- DeVry Inc.
in both the University and Art and Design SBUs.- Washington Post Company (The)
Programs include computer programming, information- Strayer Education, Inc.
technology, networking, telecommunications and Web- Corinthian Colleges, Inc.
design.)- Weight Watchers International Inc
- BUSINESS (44%. Ranging from Business- New Oriental Education & Technology Group,
Administration and Marketing to Criminal Justice,Inc.
among others)- ManTech International Corporation
- ART AND DESIGN (21%. Enroll in Art and Design- Inergy, L.P.
studies, focusing on programs in the graphic, fashion,- Brink's Home Security Holdings, Inc
game and interior design fields).- Gartner, Inc.
The Industry shows a strong growth: The- Service Corporation International
post-secondary education (PSE) is a $315.5 billion- Grand Canyon Education, Inc.
industry market in North America (U.S. Departement- Coinstar, Inc.
of Education, 2001-2002)- American Public Education, Inc.
Enrollment in PSE programs is projected to grow- Inergy Holdings, L.P.
from 15.6 in 2002 to 18.2 million students by 2012.- Regis Corporation
Due to baby boom generation and increasing- K12 Inc
numbers of adults seeking higher education.This list shows that not all the mentioned competitors
Federal funding available to support PSE wasare really rivals but cataloged as such (Gartner, Regis,
estimated to exceed $105 billion (2002-2003)WPC, etc)
Organizing wise CEC is focused on: Leveraging size(1) - - annual report 2007
and scale, Increasing centralized activity, Sharing(2) - nasdaq.
resources among campuses and Aligning cost