Reference no: EM131243148

Rancho Solano (RSPS), with its new international focus and class ratios of 7:1 continues to be a highly ranked private school in the state of Arizona and was ranked as the third best private school in the state of Arizona with its overall student population of over 1,000 (azcentral.com). However, the July 8, 2014, recommendation by Adam McLaren, the analyst at Moody Analytics, states "Meritas' rating or outlook could improve if it can organically grow its revenue/earnings through price increases and enrollment growth, and increase size and improve diversification such that debt to EBITDA approaches 5.0 times (including Moody's standard adjustments) and EBITDA less capex coverage of interest expense is sustained above 1.5 times." (https://www.moodys.com/research/Moodys-rates-Meritas-2nd-lien-term-loan-Caa2-affirms-B3--PR_302960). Time will tell if the international focus was the right strategic direction for RSPS as well as what lies ahead for the K-12 private school education industry in the state of Arizona.

The board of directors at RSPS has hired you as part of a consulting team to review the situation and present your findings and recommendations. Complete this assignment from the perspective of the hired consultants. Respond to the following questions:

1. With the two campuses now closed, you have been asked to suggest three plans: one long-term, one mid-term, and one short-term goal for the future direction of RSPS. Justify your decision for these goals. Prepare this assignment according to the APA guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.

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