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Jessica Turner is the founder and CEO of Turner Test Prep Company which preparing people for the CPA exam. She graduated from management school and she is professionalized on accounting. After few job rejections, she opened her own test preparation school. The most important problem in her business is that she cannot increase her market share from 10 percent. To understand the problem better, we need to go into the details of the competitors of the company. NTC is the most important competitor of Turner Test Prep Company. NTC opened in 1962 and it is a full-service program which offers a variety of options for a lot of different exams like CPA for students. The most crucial weakness of NTC is that they did not offer live classroom sessions. They have a lot students and their pass rate is 75 percent. They have some advantages of course. They are because of the company is older than Turner Test Prep Company, they have more students, they have larger market share and they have much experience. But Turner Test Prep Company has Jessica Turner. It is so that she put herself as an asset and she gives live lessons with her professors and she gives one-on-one attention to all the students.
In short-run it can be very effective to attract to students who want to pass the exam but in the long-run Jessica needs to find another solution to make the market share larger. And also, she did not calculate break-even point carefully. If she calculates the break-even point, she can see that how many students she needs to reach that point and also can see at what point she could begin have profits. Furthermore, with this break-even analysis she can see where she is now and can see that if the current target student is enough for her to reach the break-even point or should she have to attract new people.
The company spends much more than it earns. Because of the professors she works with, expenses are much more than NTC. She needs to decide it is covered the expenses.
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