Pearson Focus Online Teaching Courses
Pearson, one of the largest education companies, which provides a wide range of education services to institutions, governments, organizations and direct individual learners have sought to restore confidence among education businesses after news has come out on the profitability issues.
This issue has risen when online teaching courses are gradually slowing down in other areas of its education businesses.
After eight years, an investor relations day has been called out and conducted by the chief executive, John Fallon to restore confidence among the investors including BlackRock, Schroders, Threadneedle, among others.
It is worthy to take note of that in 2015, Pearson decided to focus more on its educational aspect that it even sold the Financial Times and its stake in the Economist Group.
Pearson now moves its focus from simply tangible textbooks into online learning materials and services.
Reportedly, a decline in revenues was seen on January to March of this year. More than a tenth of Pearson’s workforce was also seen to have around 4,000 redundancies—an issue that is looked into for possible overhauls.
Hence, the meeting was called such that the company may show to its investors its efforts for transparency and openness not only to the good opportunities in the sector of higher education that await the groups, but also to the challenges that they have to prepare for when they may be at risk of.
Fallon reiterated that because Pearson is becoming a highly complex organization, it has also been moving since its day of establishment.
Online School Statistics
A quick look at the statistics show that in the United States alone, 15 percent of the 19 million students who are enrolled in higher education are exclusively learning online—in comparison to the costs that come along the traditional, face-to-face, campus-based learning; and that these are expected to even grow higher in the years to come.
Therefore, one of the potential areas Pearson may be open for growth is its actual development of courses and other programs related to education that may overall lead to degree courses.
But, this is only made possible through linkages and partnerships done and are to be established among universities, colleges and institutions.
Thus, Pearson plans to add even more to its now growing 40 universities, majority of which are based in the United States.
Because Pearson also develops educational materials that are founded on research, Fallon states that in the meeting conducted, the investors were promised to receive a breakdown of Pearson’s new plans on developing online course materials through the software named courseware.
This is also in relation to the notion that traditional prints of workbooks are also facing decline in terms of profitability.
On the other hand, an analyst from Citi, one of Pearson’s partners, named Thomas Singlehurst, said he welcomed Pearson’s goal on transparency and openness but this does not remove the idea that Pearson still faces digital disruption and must continuously work all its efforts to avoid further issues of profitability in the aspect of education.