At first I thought relating the impact of investor relations (IR) to my current work environment would be difficult; conversely, after a little more contemplation the realization that it was very pertinent occurred. I am presently not working in a business environment, per say. I am attending IUP as fulltime graduate student with an assistantship and work study position that are state and federally funded. Investment has affected school budgets, since there has been a lack of return on funds previously endowed. I personally have watched my 401K take a nose dive, but it was a company contribution plan; so, I was not terribly upset by the loss. There is a renewed sense of fear in investments for many individuals since the ‘recession’.
Additionally, since I am obtaining my K-12 BCIT PA teaching certification, my possible future retirement plan is being changed as you read. See the following site for some background information: http://www.pittsburghlive.com/x/pittsburghtrib/s_623405.html
There are several issues surrounding teacher retirement funding and many teachers that leave positions are not being replaced. Both of these issues will definitely affect my future. These sites also contain relevant information:
http://www.psea.org/general.aspx?id=2626
http://www.caldercenter.org/PDF/1001071_Teacher_Pensions.pdf
There are funding issues for both the University of Pittsburgh and IUP due to the recession and lack of investment revenue. Part of the reason I am at IUP is that companies are not providing workforce development due to budget cuts, which was a good portion of my previous teaching. The recession seems to have sent more people back to post secondary school. Corporations are not the only ones competing for investment dollars. Post secondary education is a business that focuses on enrollment numbers and utilizes advertising to increase those numbers. Many of the same strategies used for corporate investment are used to increase enrollment, such as a clear vision and mission, which have been revised in the past few years by many institutions.
http://www.iup.edu/upper.aspx?id=2065
http://www.ir.pitt.edu/factbook/fbweb05/general/MISSION.PDF
There have been logo, motto and mission statement changes made so post secondary schools can appeal to the current market. Board meetings are held to ensure expectations are appropriate for future expansion plans and monetary funding. Volatility is reduced by trying to predict and appeal to constituencies, such as: investors, alumni, parents and students. Like a business many constituencies must be placated and investors can be grouped to address their particular concerns. Student retention rates are a major center of attention due to continued enrollment dollars. Since there are numerous investors in post secondary education, it requires the use of diverse communication channels due to age, socioeconomic status and local demographics just to name a few.
Furthermore, proactive planning is necessary to quell the negative publicity that can occur. For example Penn State was negatively impacted for several alcohol related incidents and racial issues in the not so distant past. Virginia Tech. is a true crisis example. It is important for post secondary institutions to have more than just a reaction to adverse media attention to ensure future investment and enrollment. Rating agencies are important intermediary constituencies for post secondary institutions, which can be beneficial or not depending on an achieved ranking. Several ranking listings are available and a few are provided here:
http://www.usatoday.com/news/education/best-value-colleges.htm
http://www.usnews.com/sections/rankings
http://www.4icu.org/topNorth-America/
Globalization has helped to expand the market for post secondary revenue adding an international constituency base; however, there was a global recession. IR is a primary center of attention for post secondary institutions that may spread to secondary schools due to budget restraints and the existence of cyber schools and technology centers – personal choice. Competition for investment funds in the form of students, parents and investors is becoming increasingly more important at the secondary level. An example of positive image advertising for cyber schools in Pennsylvania follows. Please view the advertisement before the video.
Advertisement: http://www.pacyber.org/newsroom/article_results.aspx?ArtID=148
http://www.youtube.com/watch?v=RKQJ8oZpykY&feature=player_embedded#!
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