Business Plan_Minkyung_Lowe

AMERICAN
COLLEGE
ADMISSIONS
CONSULTANTS
THE BUSINESS PLAN
AUTHORS: K. G. and Minkyung Lowe

1
TABLE OF CONTENTS
The Business Plan
Executive Summary........................................................................................................................ 2
The Company.................................................................................................................................. 3
The Concept.................................................................................................................................... 3
Core Businesses .............................................................................................................................. 4
Asian Students in American Schools.............................................................................................. 6
Value Proposition............................................................................................................................ 6
The Opportunity & Market: South Korea....................................................................................... 7
The Competitive Landscape: South Korea ..................................................................................... 7
The Competitive Advantage: South Korea..................................................................................... 7
The Opportunity & Market: China ................................................................................................. 8
The Competitive Landscape: China................................................................................................ 8
The Competitive Advantage: China................................................................................................ 8
Primary Risks.................................................................................................................................. 9
Secondary Risks............................................................................................................................ 10
The Operating Strategy................................................................................................................. 11
The Management Team ................................................................................................................ 12
the Growth Strategy...................................................................................................................... 13
The Financial Strategy and Projections ........................................................................................ 14
Exit Strategy.................................................................................................................................. 15
Appendices
Appendix 1: The Admissions Consulting Industry....................................................................... 16
Appendix 2: The International Education Environment............................................................... 17
Appendix 3: Comprehensive Market Analysis of South Korea.................................................... 19
Appendix 4: Comprehensive Market Analysis of China.............................................................. 27
Appendix 5: Incorporation Location Analysis.............................................................................. 36
Appendix 6: Explanation of Market Potential Calculations ......................................................... 38
Exhibits
Exhibit 1: Basic Five Hour Seminar Agenda................................................................................ 42
Exhibit 2: Consulting Services Package Options & Rates............................................................ 42
Exhibit 3: Top 20 Countries of Origin for Foreign Students in U.S. Higher Education .............. 43
Exhibit 4: Years 1 & 2 Launch and Operations Timeline ............................................................ 44
Exhibit 5: Five-Year Growth Strategy.......................................................................................... 45
Exhibit 6: Demographic and Economic Data ............................................................................... 46
Exhibit 7: Target High Schools in Seoul and Pusan..................................................................... 47
Exhibit 8: The Competitive Landscape in China.......................................................................... 48
Exhibit 9: Five-Year Consolidated Profit & Loss Statement and Corresponding Assumptions.. 49

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EXECUTIVE SUMMARY
American College Admissions Consultants (ACAC) is an admissions consulting business
catering to foreign students (and expatriates) aspiring to attend college or graduate school in the
United States. We will launch this service initially in Asia, given the obsession countries in this
region have for an American education.
The business model will center on two core operations: 1) Annual seminars in foreign cities,
where distinguished deans and directors from America's most elite schools will speak to a full
range of admissions topics; and 2) One-on-one application consulting services provided by
rigorously-vetted, highly-trained consultants delivering our proprietary curricula to guide
students through the American application, interview and visa processes.
We will launch operations in South Korea in Year 1 and China in Year 2, and will require $1.8
million in seed capital to cover start-up costs, generate a profit by the end of Year 2, and position
the company for expansion. By the end of Year 5 of operations, we will be in nine countries and
17 cities, at which we will carefully analyze possible exit strategies. We will look for the most
profitable merger with or acquisition by a large for-profit educational services company.
Keys to success include:
• Effectively leveraging, marketing and advertising our distinct competitive advantage and value
to clients in gaining exposure to deans and directors from America’s top schools;
• Successfully reaching our target segments and gaining critical mass to support our services;
• Developing high-quality curricula and comprehensive services that result in high admission
acceptance rates for clients and create for us a positive and trusted track-record;
• Hiring talented consultants and training them to deliver consistently our premier services and
achieve high admission rates with clients;
• Successfully implementing the infrastructure required to operate a multi-national company.
The Executive and Founding Team includes Marc Wais, Tom Ellett and Keith Light. Marc Wais,
the Vice President of Student Affairs at NYU, will function as the CEO and will oversee
strategic business development. Marc has a doctorate in Administration, Planning, and Social
Policy from Harvard and an MBA from the University of Miami. Tom Ellett currently serves as
the Associate Vice President of Student Affairs at NYU, is a certified life coach and holds a PhD
in Education from Fordham University. He will develop the curricula used to build the seminar
content and comprehensive consulting services, as well as spearhead consultant training. Keith
Light holds a B.A. from Stanford and an Ed.D. from Harvard. He is presently the Associate
Director of Admissions at Brown University, with past high level admissions experience at
Harvard, Stanford and Princeton. Leveraging his connections at top American schools, Keith will
help wrangle deans and directors to speak at our seminars, as well as help develop our
admissions consulting services.
Together, Marc, Tom and Keith have substantial experience in admissions in higher education,
an understanding of student life in American schools, life coaching and consulting experience, as
well as entrepreneurial experience. Each is well connected within academia and brings a deep
understanding of the current forces affecting the international education environment, and thus
the particular challenges foreign students face when applying to and attending American schools.

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THE COMPANY
ACAC will incorporate in Hong Kong as a for-profit Limited Liability Corporation operating in
the educational services sector. We conducted a thorough analysis of incorporation options in
China, Hong Kong, Korea and the U.S. Given the low corporate tax rate of 17.5 percent, low
incorporation costs, and the overall ease of incorporating and conducting business, it is most
economically prudent and generally sensible to incorporate in Hong Kong. (Please see Appendix
5 for information explaining this analysis and decision, as well as incorporation costs in Hong
Kong and costs to obtain permits to operate business in South Korea and China.)
The Company will be based in New York City, with wholly owned subsidiaries in each city of
operation. Our most immediate short-term goal is to have operations in South Korea up and
running by spring 2009. We will concurrently begin groundwork to launch services in China by
spring 2010. Through Year 5, we aim to launch in 3 to 5 additional cities each year. Within our
five-year growth strategy, we will operate in 17 cities throughout East Asia, India and Latin
America.
THE CONCEPT
For American students, getting into college has become a cut-throat game, causing thousands of
applicants each year, often prompted by their parents, to turn to expensive admissions
consultants in an effort to position themselves best for acceptance. Paying for outside admissions
guidance is now a near ubiquitous American tactic that parents often regard as a small price to
pay for a lifetime of open doors for their children.1
We will take this service to students in Asia hoping to attend college or graduate programs in
America. In our comprehensive research, it is unquestionably evident that significant numbers of
Asian students and their parents wholeheartedly believe that gaining a degree from American
schools is the single best gateway to success and prosperity. In a culture heavily influenced by
brands, top American schools carry a particularly strong appeal to Asian students.
Our initial push will occur in South Korea, where this obsession with elite branding has a
profound impact on students’ educational choices. We will next target China, where newly-
created wealth is, for the first time, allowing the dream of attending college in the U.S. to
become a possibility for budding middle and upper class families. Aware of cultural differences,
we will build proprietary curricula and counseling processes strategically catered to different
cultures and will market our services and their value accordingly. We will also address the
unique set of needs that exist when applying to schools in a different country, such as marketing
oneself in a way that is understood and valued by American schools, understanding the cultural
implications of the American admissions process, and preparing for visa application interviews.
1
Rolph, Amy. “More Students Turn to Consultants for Help Applying to College.” SeattlePI.com. 22 Nov 2007
Seattle PI. http://seattlepi.nwsource.com/local/340781_consultants23.html.

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CORE BUSINESSES
We will operate two primary services, and thus have two primary revenue streams: 1) Seminars
and 2) One-on-one consulting services.
Seminars
In each city, we will offer three 5-hour seminars for 3 different customer markets. Presenters will
be deans and directors from schools such as Stanford, Harvard, Princeton, NYU and Brown, and
will share insider information about the admissions process and provide insight about life and
culture as a student in an American school. Please note: Seminars will typically occur during
July. Therefore, when school grades are mentioned with respect to the seminars, we are referring
to the grade that students will be enrolling in during the ensuing fall, not the grade they just
completed.
Seminar 1: For 8th
and 9th
graders. In addition to offering introductory college admissions
information, presenters will also suggest strategies for how students can use their high school
years to position themselves best for eventual admission to American schools. Attendees will
also learn about summer immersion programs and boarding school opportunities in the U.S., as
well as helpful guidance through the respective application processes.
Seminar 2: For 11th
and 12th
graders. This seminar will focus on delivering insider tips and
knowledge from esteemed experts from top American schools. Presenters will also delve into the
nuts and bolts of the admissions process for a foreign applicant, from financial aid to visas, and
will speak to student life in American schools.
Seminar 3: For graduate school applicants. Presenters will address the specific considerations
when selecting schools and applying for graduate programs. Attendees will also gain admissions
tips, learn about scholarships and financial aid options, and gain insight into life as a graduate
student in an American school.
Students will pay an admission fee for each seminar they attend. In South Korea, the fee for one
seminar is $599 USD, and in China the fee is $399 USD. This fee enables students to bring one
family member at no additional cost. If students would like to bring more family members, they
can pay a prorated rate for each additional person ($150 USD in South Korea and $100 USD in
China). (Please See Exhibit 1 for Basic Five Hour Seminar Agenda.)
Seminars will also provide an important opportunity to promote our consulting services. Tom
Ellett, who is developing our proprietary and to-be copyright-protected curricula, will attend
seminars and speak to the unique theory and approach behind our consulting services.
Admissions Consulting Services
Culturally, Asians in general prefer to meet a person face-to-face before conducting business
with him or her to gauge his or her honor and establish a certain level of trust. Optimal
consulting services must be delivered, at least initially, via in-person interactions to respect
cultural customs. Doing so will require hiring a point person in each city in which we operate.
With their assistance, we will hire local consultants who have attended colleges and universities

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in the U.S. Specifically, we will aim to hire bilingual expats and nationals who have attended
top-tier American schools with high brand recognition. A mix of expats and nationals is crucial:
While our American roots provide a key competitive advantage, to respect Asian cultural mores,
we must appear relatable, and thus must have a local staff of natives to avoid being perceived as
too foreign or separate from their culture.
We aim to position ourselves as a top-quality service, administered by highly-vetted and
rigorously-trained employees and consultants. To maintain a certain professionalism and
prestige, we will have to rent an office space in each city we operate, where consultants and
students can initially meet to discuss the process, settle terms, and establish trust. From there, a
large portion of services can be conducted electronically and by phone.
We will offer the following comprehensive consulting services:
• School Selection Services: As part of our school selection services, we will divide schools
between Top-Tier and Best-Fit schools. Together, the consultant and client will ascertain the
student’s qualifications and devise a list of potential schools accordingly. Many of our
customer segments will gain value by learning about different types of schools (e.g. liberal arts
schools), and the qualitative considerations when selecting a school that will optimize a
student’s academic and social success.
• Application Consulting: Our consultants will help edit resumes and essays, will strategically
guide students through the letter of recommendation process, and will provide an overall
strategy for each student to market him or herself best and create a well-rounded application.
• Financial Aid and Scholarship Assistance: We will help guide students through best financing
options, and assist them with scholarship applications when needed.
• Visa Facilitation: The American student visa is widely misperceived as prohibitively
challenging to obtain, deterring many from applying to American schools. We aim to debunk
this misperception and will guide students through the visa application process, from
facilitating paperwork to coaching students for the visa interview.
• Interview Coaching: For students applying to schools requiring interviews, we will provide
students with tips and an interview strategy, and conduct mock interviews to prepare and boost
confidence.
• Post-Admission Services: In an effort to mitigate the frequent issues of culture shock, our
consultants will provide students with: Information about life as a student in America;
information about American academic systems, standards and the process of selecting a major;
and a list of resources and a survival guide to ease acclimation and transition.
• Robust Bilingual Website: Our website will be available in both English and the native
language of each city in which we operate. The site will be rich with information, will be e-
commerce enabled to process seminar reservations, and clients will be able to sign up for our
free monthly newsletter.
Students will select from three consulting services package options based on the number of
schools to which students intend to apply and the services desired, and then pay the flat package
rate. (Please see Exhibit 2 for Consulting Services Package Options and Rates. Please see
Appendix 1 for an overview of the admissions consulting industry.)

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ASIAN STUDENTS IN AMERICAN SCHOOLS
Asia, which sends more students to study in the United States than any other region of the world,
is of particular interest to the international education scene. After careful market, financial and
economic analyses of the foreign countries that are the greatest supporters of American
education, the most significant and timely opportunity for our services exists in South Korea and
China.
China and South Korea rank second and third respectively in the number of students sent to
study in America. In the 2006/07 school year, 67,723 students from China were enrolled in
American undergraduate and graduate schools, and 62,392 from South Korea studied in the
United States. India ranks first, with 83,833 students attending American schools in the 2006/07
school year.2
(Please see Appendix 2 for a current overview of foreign students in American
schools. Please see Exhibit 3 for Top 20 Countries of Origin for Foreign Students Enrolled in
U.S. Institutions of Higher Education.)
We endeavor to capitalize on the unique market forces that currently exist in South Korea and
China and are causing these regions to be particularly ripe for our services. While India poses
promise as a growth region, the market lacks the forces and factors that create the unique
opportunity with the sense of strike-while-the-iron-is-hot urgency that presently exists in South
Korea and China.
VALUE PROPOSITION
For Korean students with a passionate desire to attend a top American school and the parents
who fund and drive their children’s academic dreams, and for Chinese students who dream of
attending school in the U.S. and currently have limited access to school resources, parents, or
peers who can help them navigate an entirely foreign application process, we will provide access
to highly-vetted professionals rigorously trained to deliver a curriculum developed by deans and
directors from America’s top schools. Using insider knowledge, our team will develop with our
students a strategy to improve their overall appeal as a candidate, from suggesting ways to make
best use of their high school years, to editing their essays, to visa facilitation services, and
generally creating a well-rounded application. Our competitively priced and accessible services
are guaranteed to equip students with a full set of tools to increase their admissions standing and
prepare admits for life at an American school.
2
Chin, Hey-Kyung Koh, ed. Open Doors 2007: Report on International Educational Exchange. New York: Institute
on International Education, 2008.

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THE OPPORTUNITY & MARKET: SOUTH KOREA
In Year 1, we will do two seminar rotations in Seoul, one in Pusan, and launch consulting
services in both cities. Seoul, with a population of 17.5 million, has the highest concentration of
high schools in South Korea emphasizing international education. Pusan is South Korea’s second
largest city, with a population of 4.2 million.
The crux of our opportunity in South Korea exists in a culture fixated on educational
achievement, particularly that which is gained at the most prestigious American schools.
“Preparing to get to the best American universities has become something of a national obsession
in Korea,” said Alexander Vershbow, the former American ambassador to South Korea.3
The
primary driver behind South Korea’s economy is human capital, and remaining competitive and
attractive within the workforce is key to individual achievement. Recognizing that a degree from
an elite school will best position their children for life-long prosperity, parents urge children
from a very early age to prepare for college admission. To do so, many parents will stop at
nothing and pay anything to provide opportunities for their children to gain a competitive edge.
THE COMPETITIVE LANDSCAPE: SOUTH KOREA
Admissions consultant companies, or “crammers”, are quite common in Korea. As is corruption
within them. Under Korean law, there is a ceiling that such companies are legally allowed to
charge. However, illegal (and thus often unlisted and surreptitious) crammers are rampant and
game the system to exploit parents’ fanatical desire to get their kids into elite American schools
and consequent willingness-to-pay astronomical, illegal fees. Some are known to charge upwards
of W100 million ($70,000 USD) for the full admissions consulting package.4
One agency is said
to charge more than W10 million ($7,000 USD) per week for an SAT math prep course, and this
course is said to remain fully booked despite its steep cost.5
These companies are typically
founded by Koreans who did not themselves attend American schools.
Many Korean graduate applicants attended college in Korea and lack knowledge about the
American application process, and since they are not currently students, they also lack access to
helpful admissions counselors. While there is a crop of businesses offering graduate admissions
consulting services, the market appears to be underserved, and many applicants commonly form
ad hoc communities with other applicants to trade information. We did not learn of one business
that was founded by Americans who can provide insider insight to largely clueless applicants.
THE COMPETITIVE ADVANTAGE: SOUTH KOREA
Given the competitive landscape and the value sought by our customer segments (as explained in
Appendix 3), our competitive advantage in South Korea is four-fold: 1) Our expert team linked
to prestigious American schools; 2) Our affordable non-discriminating seminars; 3) The
affordability of our consulting services; and 3) Our accessibility.
3
Dillon, Sam. “Elite Korean Schools, Forging Ivy League Skills.” The New York Times. 27 Apr 2008.
4
“W100 Million to Get Into a High School Abroad?” The Chosun Ilbo. 20 Aug 2007.
5
“Boom Time for Illegal Crammers as Koreans Come Home.” The Chosun Ilbo. 28 May 2007.

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Please see Appendix 3 for full market analysis in South Korea, including market size, market
segments, value proposition analysis, corresponding segment value propositions, further analysis
of the competitive environment and competitive advantage, and the marketing strategy.
THE OPPORTUNITY & MARKET: CHINA
In Year 1, we will begin establishing necessary relationships to develop our business in China.
Research indicates that success in China is highly contingent upon cultivating the right
relationships, a delicate process we understand to take several months. Laying the foundation for
launch in China will happen concurrently with South Korea launch initiatives. In the first half of
Year 2, we will launch in China and be fully operational in Beijing and Shanghai by spring 2010.
The majority of applicants to American schools come from China’s urban hubs that are more
globally-minded and aware of the value of an American education. We will launch in Beijing
and Shanghai, which both present an optimal confluence of circumstances ensuring we will
connect with our target market: 1) Education is highly emphasized in both cities; 2) Citizens in
both cities are gaining rapidly in private wealth, signaling a growing market for us; and 3) High
schools are not prepared to assist students through the American college admissions process.
In the wake of a rapidly and vigorously growing economy, millions of Chinese are experiencing
unprecedented gains in personal wealth. Furthermore, the entire country seems gripped by a
feverish desire for constant improvement and acceleration – on a national level and on an
individual level. Education in America – long since considered one of the best and surest ways
for personal betterment – is now becoming a real, viable option for hundreds of millions of
Chinese citizens for whom attending school in the U.S. is no longer fiscally prohibitive.
THE COMPETITIVE LANDSCAPE: CHINA
As more families have the fiscal means to consider American college for their children,
admissions consulting firms have begun to crop up to meet demand. Four companies currently
hold most of the market, and the rest of the competitive landscape consists of a collection of
mom and pop businesses. These companies are almost always founded and staffed by people
who never attended school in the U.S. It is common practice for consulting companies in China
to require students who win scholarship money to remit a certain percentage of their winnings to
the company.
THE COMPETITIVE ADVANTAGE: CHINA
Given the competitive landscape and the value sought by our customer segments (as explained in
Appendix 4), our competitive advantage in China is three-fold: 1) Our expert team and American
roots; 2) Our affordable non-discriminating seminars; 3) Our fair scholarship pricing policy.
In our many conversations with Chinese nationals, people overwhelmingly agree that what is
missing in the American admissions consulting market within China is a company founded by
Americans who can bring experiential and insider awareness to students. And each person we
spoke with felt that being able to market our services as created by distinguished deans and
directors from prestigious American schools would provide a distinct and compelling
competitive advantage. Thus, a crucial element of our competitive advantage exists in our team.
This is a feature of our business that local competitors would struggle to replicate.

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Please see Appendix 4 for full market analysis in China, including market size, market segments,
value proposition analysis, corresponding segment value propositions, further analysis of the
competitive environment and competitive advantage, and the marketing strategy.
PRIMARY RISKS
Global Economic Crisis
Recent global economic uncertainty is a concern for any current start-up venture. South Korea
has been one of the countries particularly hard-hit in the present global economic meltdown.
Many Koreans fear a repeat of the devastating 1998 Korean financial crisis. But, many
economists speculate that since the global credit crunch has begun to soften slightly, South
Korea will be able to escape a repeat of the dire financial situation they endured a decade ago.6
In October 2008, the Korean government released a study stating that despite the financial crisis,
nearly half of all Korean parents still want their children to gain an education abroad, as a foreign
degree is often preferred over a local one.7
That said, panic alone might cause some South
Koreans to curb spending until the market rebounds. During the 1998 financial crisis, Korean
enrollment in American schools dipped for the first time since 1984.8
Should this crisis persist,
some Koreans may alter plans and not apply to American schools.
China’s economy has recently taken a toll, with many companies going out of business, spurring
sweeping lay offs. But enrollment of Chinese students in American schools jumped from six
percent in the 2006/07 school year to 20 percent in the 2007/08 school year, signaling that the
rapidly growing desire to attend school in the U.S. remains fierce.9
The emerging middle class of
approximately 300 million families who want an American education for their children might
remain largely undeterred by economic uncertainty.
In October 2008, Citibank shut down its student loan program for international students in an
effort to eliminate non-critical business functions. While this might further limit access to
financial assistance for foreign students, it is not expected to deter a high percentage of
international students from enrolling in American schools, as more than 80 percent of foreign
college students were entirely self-funded in the 2006/07 school year.10
Furthermore, education
is typically a planned expense generally less sensitive to economic turbulence. The desire to
attend an American school should prove resilient within our South Korean and Chinese market
segments despite economic uncertainty. But as a hedge against possible diminished business
6
Fackler, Martin. “Financial Crisis Spreads to Emerging Nations.” The New York Times. 24 Oct 2008.
7
“Half of Korean Parents Want to Send Children Abroad Despite Financial Woes: Survey.” Asia Pulse Data
Source, via Comtex. 18 Oct 2008.
http://www.zibb.com/article/4191020/Half+of+Korean+parents+want+to+send+children+abroad+despite+financial
+woes+survey.
8
Chin, Hey-Kyung Koh, ed. Open Doors 2007: Report on International Educational Exchange. New York: Institute
on International Education, 2008.
9
“Flush with Money, Eager Chinese Students Flock to U.S.” Cnn.com. 17 Nov 2008.
http://www.cnn.com/2008/US/11/17/chinese.students.ap/index.html
10
Chin, Hey-Kyung Koh, ed. Open Doors 2007: Report on International Educational Exchange. New York:
Institute on International Education, 2008.

10
resulting from the global economic crisis, we have been extremely conservative in the
assumptions used in our financial modeling. We are generally assuming only a one percent
market penetration rate in each of our core businesses and cities; yet even at this conservative
rate, we turn a profit by Year 2.
Global Competition for Foreign Students is Heating Up
Schools in several countries are beginning to vie more fiercely for foreign students, posing an
interesting challenge for us: The very countries that we are targeting, which have historically
been some of the biggest exporters of students, are themselves trying to recruit foreign students
and encourage national citizens to remain home for college and graduate school. The Chinese
government is striving to be recognized as a destination for world-class education, but
understands this cannot be possible without high foreign student enrollment. Accordingly, the
government has implemented an aggressive campaign to recruit international students. South
Korea has launched an initiative to double the number of foreign students enrolled in its
universities to correct a lopsided enrollment issue for Korea, which exports 30 percent of its own
students to foreign schools each year.11
However, the number of students in general seeking foreign study is increasing.12
And the U.S.
overwhelmingly remains the leading destination for international education despite that its
overall global proportional share of foreign students has dropped slightly. Importantly, the U.S.
has the largest education infrastructure and still has tremendous capacity to enroll more foreign
students than any other country. Furthermore, Chinese schools remain widely regarded as
mediocre, continuing to drive many of the brightest students to American schools.13
SECONDARY RISKS
Students in Our Market Segments May Lack Interest in Schools Outside the Top 20
We will benefit from successfully marketing our best-fit college selection services; doing so will
allow us to cast a wider net when appealing to and attracting customers and will help boost our
admissions success statistics by sending more applicants to less competitive schools. Given the
passion for prestigious top 20 schools, it is possible that our best-fit schools may be less popular
with our market segments, particularly in Korea. That said, newly released data from the 2007/08
school year shows that foreign students, particularly Chinese students, are applying to more and
a broader range of American schools, signaling that an increasing number of foreign students are
seeking an American education in general, not just an Ivy League education.14
Potential Competitive Response from American Companies
Kaplan currently operates one location in both Seoul and Hong Kong. While Kaplan does offer
limited application assistance at American outlets, Kaplan only administers test prep services in
these foreign cities. Princeton Review, which does not offer admissions consulting services in
11
McNeil, D. “S. Korea Plans to Double Intake of Foreign Students Within 2 Years.” Chronicle of Higher
Education. 7 Aug 2008.
12
13
Hvistendahl, Mara. “China Moves Up to Fifth as Importer of Students.” The Chronicle of Higher Education. 17
Sep 2008.
14
“Flush with Money, Eager Chinese Students Flock to U.S.” Cnn.com. 17 Nov 2008.

11
any country, does have test prep locations in China (Beijing, Shanghai, Dalian, Xi’an), Hong
Kong and Seoul. There is one Princeton Review outpost in each city.
Given the low barriers to entry in the admissions consulting industry (as discussed in Appendix
1), it is prudent to acknowledge a possible competitive response from Kaplan or Princeton
Review. However, admissions consulting is not a core competence of either company. While
theoretically they could develop a curriculum and begin offering admissions consulting services
in any of our foreign cities of operation, it is unlikely they will be able to achieve the mix of
elements that create our competitive advantage. Our team also lends to our brand a prestigious
component that is highly attractive and important to our market segments, and that the Kaplan
and Princeton Review brands lack.
Corruption in China
In our research, anecdotal evidence from several Chinese natives has made it unequivocally clear
that we will face certain corruption while conducting business in China. It is a business system
that runs primarily on reciprocal relationships and gaining access to the necessary people to be
able to move forward. Secondary research even suggested we could expect retaliation tricks from
existing competitors. It is for this reason that despite significant and promising opportunity in
China, we feel it is worth taking more time establishing a network and forging the right
connections prior to launch.
THE OPERATING STRATEGY
General Organizational Structure
In Year 1, the Company will be managed by an Executive Team based in New York City.
Crucial key hires will be a point person in each city of operation who will carry out
implementation and logistical tasks. (Please see “The Management Team” for full key hire list.
Please see Exhibit 4 for Years 1 & 2 Launch and Operations Timeline and Exhibit 5 for Five-
Year Growth Strategy.)
Seminars
Seminars will typically occur in May, June or July of each year, with the intention of addressing
students as they gear up to begin the admissions process. In each city, we will conduct three 5-
hour seminars, each day addressing a different customer segment.
Seminars will be strategically planned by the Executive Team in New York City.
Implementation and logistical tasks will be conducted in conjunction with our on-staff point
people in each city of operation. Seminar talent will consist of deans and directors from elite
American schools and members of our Executive Team.
Seminar logistical costs will include: Location rental, translators, A/V equipment, catering, and
marketing materials. Seminar talent costs will include: Airfare (typically business class), hotel,
transportation expenses, a per diem, and seminar speaking fee.

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Admissions Consulting Services
In each operating city, we will rent an office space, to be used by our full-time local point person
and local consultants. To reduce necessary office space and costs, initial office space will be
used primarily for our consultants to take first-time meetings with interested clients. From there,
the majority of the consulting services will be conducted electronically and via phone.
Consultants can expect to devote from 30 to 46 hours per client depending on the package
selected. Minding deadlines and given that the majority of services will be done remotely,
consultants and students will be able to decide together when they would like to work and set
mini-deadlines. Office space will be available seven days a week during peak months (August –
January); aware that students will be in school during most of the weekday, offices will remain
operational after school hours as needed.
Ideally, consultants will be a mix of bilingual expats and nationals, and it would be optimal for
consultants to have attended an American institution of higher learning. This is crucial to
maintaining our competitive advantage. Consultants will operate on full-time equivalent and be
paid an hourly rate of $250, with 55 percent, or $138, allocated to the consultant, and the
remaining 45 percent, or $112, given to the company.
THE MANAGEMENT TEAM
Marc Wais: Founder and CEO
Marc Wais, the current Vice President of Student Affairs at NYU, holds an Ed.D. from Harvard,
an MBA from the University of Miami, and has twenty-five years of professional experience in
higher education. Prior to his post at NYU, he served as Dean of Students at Stanford. He has
held advisory board positions on several start-ups, and sat on the corporate advisory board for
Advanced Mobile Solutions based in California. Marc will function as the Founder and CEO and
will oversee all core business functions.
Tom Ellett
Tom Ellett, currently the Associate Vice President of Student Affairs at NYU, has over twenty
years of professional leadership experience in higher education. He holds a PhD in Education
from Fordham University and is a certified life coach. He has founded and launched his own
successful consulting company. Tom will develop the curriculum used to build seminar content
and used to create premier and comprehensive admissions consulting services. He will also
spearhead training of our consultants.
Keith Light
Keith Light holds a B.A. from Stanford and an Ed.D. from Harvard. He is currently the
Associate Director of Admissions at Brown University and has twenty-five years of executive
experience working in admissions departments at Harvard, Stanford and Princeton. Leveraging
his vast network, Keith will recruit deans and directors to serve as presenters at our seminars. He
will also assist in developing the process and content for our admission consulting services.

13
Key Hires
Key Year 1 hires include:
• VP of Business Development & Operations: Manage/oversee strategic management, marketing
implementation, infrastructure, web/technology, programs and services, and human resources;
• CFO: Manage/oversee financial strategy and operations;
• Local Operations Managers: Point people in each city to manage local operations logistics,
implementation plan and marketing strategy;
• Legal Counsel (Wilson Sonsini Goodrich & Rosati has been retained);
• Accountant (on retainer or part-time);
• Website & Tech Manager (on retainer or part-time);
• Advisory Board, to be comprised of approximately eight American and foreign leaders holding
varying high-ranking positions within academia or domestic and foreign business; Board
members will be paid $2,000 per year.
Please see Exhibit 4 for Years 1 & 2 Launch and Operations Timeline, which includes a rough
hiring schedule.
THE GROWTH STRATEGY
Within our five-year growth strategy, we intend to launch in three to five cities and/or countries
each year, with the exception of Year 1. Growth cities were chosen based on those countries
sending the largest numbers of students to the U.S. for college and graduate school and where
cultural and language differences with the U.S. create the necessary circumstances to determine
that applicants stand to benefit from our services.
Within Year 1, it is our intention to conduct all three seminars in South Korea in July 2009, with
two rotations in Seoul and one in Pusan. Prior to July, we will begin the launch implementation
process in South Korea. Meanwhile, we will begin establishing requisite relationships in Beijing
and Shanghai to lay the foundation to launch our services in these two cities by spring 2010.
In Year 2 of operations, we will expand our services to Beijing and Shanghai. We will also
launch in Hong Kong. In addition to connecting with customers in Hong Kong, it will serve as a
pan-Asian hub to attract students from surrounding countries that individually lack the numbers
of study abroad students to justify operations within them. These include, but are not limited to:
Vietnam, Cambodia, Thailand, Malaysia, Indonesia, The Philippines, and Taiwan.
In Year 3, we will expand our Chinese operations to Shenzhen and Guangzhou, both Chinese
cities that send large numbers of students to the U.S. for school and have the necessary global
openness and mindset. We will also launch in India, beginning with Delhi and Mumbai.
In Year 4, we will expand our reach in India to Bangalore and Hyderabad. We will also launch in
Latin America, specifically Mexico City, Mexico and Sao Paulo, Brazil.

14
In Year 5, we will launch in Singapore, which will function as a second pan-Asian hub, and
expand our reach in Latin America to include Bogotá, Colombia, Buenos Aires, Argentina and
Santiago, Chile.
Please see Exhibit 4 for Years 1 & 2 Launch and Operations Timeline, Exhibit 5 for Five-Year
Growth Strategy, Exhibit 3 for Top 20 Countries of Origin for Foreign Students Enrolled in U.S.
Institutions of Higher Education, and Exhibit 6 for populations of each growth city.
Potential Future Services Expansion and Additional Revenue Streams
• Launch in-house test prep services. Or if not viable, partner with Princeton Review or Kaplan
to establish a referral service for a referral fee for each client who enrolls in a test prep course
per our reference.
• Travel and lodging facilitation services for students commuting from surrounding areas for
seminars, particularly when we launch in pan-Asian hubs Hong Kong and Singapore.
• Launch summer program placement and admissions assistance programs for high school
students seeking a summer immersion experience at an American school to improve their
English, build their resumes and gain a competitive edge for eventual college admissions.
• Launch admissions consulting services for students seeking admission into American boarding
high schools (particularly relevant in Korea and increasingly in China).
• Expand college consulting services to include life and career coaching.
• Website advertising, if appropriate.
THE FINANCIAL STRATEGY AND PROJECTIONS
Based on the five-year growth strategy, a Pro Forma Profit and Loss Statement was generated to
understand the revenue start-up and operational costs of the business. From Year 1 onwards, the
business incurs a net profit. Given the high caliber service nature of the business, the most
significant costs are tied to hiring and retaining top talent (human capital). As elucidated above, a
key component of our competitive advantage is tied to our ability to attract top billing talent, and
the cost of hiring seminar presenters, consultants, and executive staff will continue to remain
significant. As distant seconds, venue and office rental costs play a notable role in the
operational cost of the business. The business breaks even from a net profit perspective in Year
1. At a minimum, start-up expenses are $1.8 million for Year 1.
Growth projections for the seminar and consulting business are based on historical average
growth rates of student populations and pricing increases reflect regional rates of inflation. By
maintaining this conservative outlook, we have refrained from expressing ACAC’s value
proposition in the projected growth rates and for that reason, we believe that there is additional
revenue opportunity in Years 2 onward. Additionally, we have not attempted to reflect
economies of scale and all costs are inflation-adjusted from year-to-year, where appropriate.
The gross profit margin in Year 1 is 60.0 percent. For context, New Oriental maintains a gross
margin in excess of 60 percent. Our margins will continue to remain lower than companies like
New Oriental because of our focus on hiring and paying for top talent, in addition to the higher
overhead expenses involved in running a multi-national company. Pricing for the consulting
service packages and series are competitive but may prove to be malleable. Also, as we continue
to aggressively expand the business beyond Year 3, the cities to which we are expanding are in
countries where the economies are less robust than in Korea, Singapore, or Hong Kong. As such,

15
the margin continues to compress as the revenue contribution by the lower priced consulting
packages and seminar fees increases as a proportion of total revenue. Additionally, the cost of
expansion offsets revenues, further contributing to the margin compression. Pricing and
expansion strategies may need to be revisited to maintain a healthy gross margin.
Please see Exhibit 9 for the Five-Year Consolidated Profit and Loss Statement and
corresponding assumptions.
EXIT STRATEGY
In Year 5, we will begin thoroughly and closely researching the most profitable exit strategy. We
intend to sell to or merge with a large educational services company seeking growth through
acquisitions, mutually beneficial synergies, or geographic expansion. We will appeal to both
Asian and American companies. As of now, possible companies include:
• New Oriental Education Group: Based in Beijing and operational throughout China, New
Oriental is a massive corporation operating in several different education businesses, but
primarily in test prep. It is an NYSE-listed company with a $2.6 billion market capitalization.15
The company seeks aggressive expansion and is known to be fiercely competitive and
currently lacks a significant or substantial admissions consulting unit.
• Educomp Solutions, Ltd.: Founded in 1994, Educomp is an India-based and globally
diversified education solutions provider and the largest education company in India, with an
approximately $1.7 billion market capitalization. Educomp group serves over 17,000 schools
and 8 million students and educators globally. On its website, part of Educomp’s mission
involves “expanding our reach across geographies by acquiring companies and joint
partnerships. We are acquiring the best global talent to be a part of our endeavor.”16
Thus far,
Educomp has bought companies based out of Singapore, Canada and India, and has invested in
several more international companies.
• Kaplan, Inc.: New York City-based Kaplan is a subsidiary of Washington Post, Co. Kaplan
operates in twenty-three countries; however, the breadth of services Kaplan offers
internationally is limited compared to the range of services Kaplan offers in the U.S. Kaplan
also operates the Singapore-based Asia Management Pacific Institute (AMPI), which offers
undergraduate, graduate and postgraduate education – including MBA and doctoral degrees –
through affiliations with institutions in Australia, the U.K. and the U.S. AMPI also has a
campus in Hong Kong. In 2007 alone, Kaplan’s revenue was over $2 billion.17
15
Zoninsein, Manuela. “China’s SAT.” Slate. 4 Jun 2008. Slate.com.
16
Educomp.com “Our Mission” page: http://educomp.com/ourMission.aspx.
17
The Washington Post Company 2007 Annual Shareholder Report. http://library.corporate-
ir.net/library/62/624/62487/items/285032/WPO2007AR.pdf

16
APPENDIX 1: THE ADMISSIONS CONSULTING INDUSTRY
The admissions consulting industry is highly seasonal, with the schedule pivoting around
November and January application deadlines. Consulting services will gear up in August and be
completed by January. However, our seminars will help offset this seasonality, as seminars will
occur in July, and May and June as we expand. Additionally, our post-admissions services will
further offset seasonality, as they cannot be administered until after students learn their
admission status, typically in March or April. Post-admissions services will be conducted from
March to June. Because of our seminars, we will remain fully operational in January, February
and March, as these months will be devoted to seminar planning.
The industry has low barriers to entry. In some cases, not even an office space is required, as
some companies administer consulting services entirely online and by phone. However, we aim
to position our services as highly professionally and elite, and we will therefore rent office space
in each city of operation. Furthermore, we are taking personnel measures to make our business
less imitable. Our experienced and qualified team – from the executive team, to the curriculum
developers, to the seminar presenters – will be comprised deans and directors from some of
America’s top and most prestigious schools. Our proprietary consulting methodology is being
built by a certified life coach who works in higher education and has a keen understanding of the
necessary components of an ideal application. We believe that these elements of our business
create key points of differentiation that will be difficult for our foreign-based competitors to
replicate.

17
APPENDIX 2: THE INTERNATIONAL EDUCATION ENVIRONMENT
American institutions of higher education have long been held in the highest global regard and
have been host to more international students than colleges and universities in any other country.
After September 11, 2001, foreign student enrollment in American schools saw, for the first time
in decades, a precipitous decline, largely due to consequent, but mostly temporary, challenges of
obtaining a visa. During this time, as education increasingly became a global business, dips in
foreign student enrollment caused concern for American schools anxious to gain or maintain a
stronger presence on the international scale and boost their bottom line from the full tuition paid
by foreign students.
However, in the 2006/07 academic year, enrollment officially rebounded to pre-September 11
levels.18
According to the 2007 Open Doors report issued by the Institute of International
Education, “The U.S. continues to host more international students than any other country, and
its large and diverse higher education infrastructure provides ample capacity to substantially
expand international enrollments in response to continued growth in demand.”19
While other
countries, particularly England and Australia, also take large numbers of international students,
these countries lack the capacity to grow foreign student enrollment, giving American schools a
sustainable edge in the competitive quest to win foreign students. And, American institutions of
higher education have cultivated brand equity that is unsurpassed by the elite institutions of other
nations. While schools in the U.S. are facing increased competition from schools abroad, elite
American universities still maintain stronger brand perception and will continue to
disproportionately attract highly qualified foreign students for the foreseeable future. In fact, the
British publication Times Higher Education recently released the 2007 top 100 world university
rankings. Thirty-seven of the top 100 global institutions of higher learning are U.S. schools,
followed by the U.K., with a distant 19 schools making the list.20
Rebounded enrollment can in part be explained by increasingly aggressive recruitment efforts by
universities and the American government’s efforts to improve the visa application process.21
However, it can also be attributed to the fact that education is ever more a global game, which is
significantly fueling the desire to participate for both foreign students and American schools. As
international economies become more interconnected, the competition for students is becoming
more heated. Countries seek to matriculate its citizens through top schools, and schools seek to
produce top talent, and both parties want to claim partial responsibility for future leaders. “The
reasons are obvious,” according to an article from The Chronicle of Higher Education. “Foreign
18
19
20
“QS World University Rankings – Top 100 Universities.” Times Higher Education. Sourced from QS
Quacquarelli Systems, 2007.
21
McCormack, Eugene. “Number of Foreign Students Bounces Back to Near-Record High.” The Chronicle of
Higher Education. 16 Nov 2007.

18
students provide some of the strongest talent universities can find…and the money they spend on
tuition and living expenses helps an institution’s bottom line. In the United States alone, they
contribute more than $14 billion [annually] to the economy.”22
And countries, particularly with
developing economies, recognize the value gained from educating citizens at highly-acclaimed
and internationally renowned institutions in their efforts to bolster their global reputation. “The
flow of students, researchers, and money now takes place on a global scale,” according to an
article from The Chronicle of Higher Education,23
which “reflects the mounting importance
assigned by both higher-education and business leaders to preparing graduates to work in an
increasingly global marketplace.”24
22
McCormack, Eugene. “Worldwide Competition for International Students Heats Up.” The Chronicle of Higher
Education. 16 Nov 2007.
23
Labi, Aisha. “Obsession With Rankings Goes Global.” The Chronicle of Higher Education. 13 Oct 2008.
24
Fischer, Karen. “Cornell Gets $50-Million Gift for International Research and Recruitment.” The Chronicle of
Higher Education. 13 Oct 2008.

19
APPENDIX 3: COMPREHENSIVE MARKET ANALYSIS OF SOUTH KOREA
SOUTH KOREA: MARKET AND ECONOMIC OVERVIEW
South Korea: An Education-Obsessed Culture
In Korea, competition to gain admission to the best Korean universities is fierce and students
begin from an early age to prepare for the standardized comprehensive examination, a
nationwide test to qualify for higher education. Preparation for this exam is notoriously intense.
The pressure to do well is pervasive, and parents who have the means will enroll their children in
hagwons, from elementary school onwards, with the goal of attaining a competitive edge.
Hagwons are privately-run, for-profit after-school programs for students whose parents are able
to afford the tuition. Hagwon aptly translates into “long days”, extending a typical school day to
12 to 14 hours. The pressure to do well stems not only from a desire for individual achievement
but also as a way to fulfill duties of the deeply-entrenched tradition of filial piety. Doing well
academically translates into a way to upgrade the student and his or her family’s socioeconomic
status, uphold family honor, and is consequently a strong motivator for students and their
families to excel. To an extent, the end goal of attending an elite college is not only linked to a
belief in resulting lifetime success, but also in deep-seated cultural and familial duties. Arguably,
then, South Koreans’ interest in American education is conditioned, resilient and growing.
Korean families are known to make substantial financial sacrifices to secure the academic
successes of their children. On average, parents will spend more than $800 per child per month
for various hagwon fees. Given that the average monthly household income is $3,300, the
average family would be spending roughly 24 percent of monthly income on hagwon fees
alone.25
Of total annual expenditures per capita, South Koreans spent on average 11.7 percent of
their income on education in 2005.26
The South Korean Economy and the Role of Human Capital
Despite the sacrifice mentality, there is considerable personal wealth in South Korea, particularly
in urban hubs. Since the 1960s, South Korea has achieved an incredible record of economic
growth and integration into the high-tech world economy. Just forty years ago, South Korea’s
GDP per capita was on par with levels in the poorer countries of Africa and Asia; today, with a
population of 48.4 million people, its GDP per capita is comparable to that of Greece and
Spain.27
Per capita GNP, only $100 in 1963, is now nearly $20,000. Moderate inflation, low
unemployment, and an export surplus in 2007 characterize this solid economy, but inflation and
unemployment are increasing in the face of rising oil prices.28
Korea is now the 13th-largest
economy in the world29
and Seoul is the fourth most populous city in the world.30
25
Personal research, data generated at Euromonitor.com by Euromonitor International. Retrieved 9 Oct 2008.
26
“Korea Average Salaries and Expenditures.” World Salaries. Retrieved 30 Oct 2008.
http://www.worldsalaries.org/korea.shtml
27
The U.S. Government. Central Intelligence Agency. The 2008 World Factbook. Washington DC: The CIA, 2008.
28
29
The U.S. Department of State, Bureau of East Asian and Pacific Affairs. “Background Notes: Korea.” Retrieved
Sep 2008. http://www.state.gov/www/background_notes/southkorea_0006_bgn.html

20
With few natural resources at its disposal, the largest driver of Korea's economic achievement is
its highly educated human capital. The driving force behind the astounding growth of Korea’s
economy is, in fact, education. And as the economy continues to grow, the cycle of prosperity
has brought forth an increase in discretionary income and desired education levels. In 2002, total
consumer expenditure on education in South Korea was $15.9 billion. Just five years later, it has
nearly doubled, reaching $30.9 billion in 2007.31
(Please see Exhibit 6 for Demographic and
Economic Data.)
A degree from a prestigious American university holds a particular importance in the human-
capital centered Korean economy. It is widely believed that an undergraduate or graduate degree
from an elite American school will make students far more desirable and competitive in the
Korean workforce and pave the way for a life of prosperity and success. And because English is
perceived as the language of global business, a fluent command of English, made evident by an
American degree, is thought to increase the odds of accelerated career advancement. It is for this
reason that it is a cultural norm to invest heavily in a child’s educational future from an
incredibly young age. This involves, but is not limited to, paying for expensive private foreign
language schools, after school programs to further learning, and a series of test prep courses.
Among parents and children alike, there is a stop-at-nothing attitude to achieve the very specific
end goal of winning admittance into elite universities.
Korean Students in American Colleges
Of the 62,392 South Korean students who attended U.S. schools in 2006/07, 45.2 percent, or
28,201, were undergraduate students. Korean college students in American schools typically
come from foreign language schools. However, our interviews with American college
admissions staff reveal that sources of Korean applicants are expanding to include schools that in
the past have traditionally not fed into American schools, signaling growing demand in South
Korea for an American college education.
Feeder High Schools
In a recent study of top feeder schools into American colleges, only two non-U.S. preparatory
schools made the list, both of which are Korean: Minjok Leadership Academy and Daewon
Foreign Language High School.32
Both schools, located within the greater Seoul area, have
impressive track records: Of the 77 Minjok graduates who applied to American universities for
the 2008/09 academic year, 25 were accepted into Ivy League schools, 19 were accepted to UC
Berkeley and 10 were admitted to New York University. The remaining students will attend
Stanford and other top American schools.33
Daewon admits its students to top American schools
with commensurate success, largely due to an effort beginning in 2000 to focus on foreign
universities. The push has paid off: Daewon has since sent 263 graduates to top 50 U.S.
universities, with 36 from the 2007/08 school year alone attending Ivy League schools.34
30
“The Largest Cities in the World by Land Area, Population and Density.” Citymayors.com. 6 Jan 2007. City
Mayors Statistics. http://www.citymayors.com/statistics/largest-cities-population-125.html
31
32
Kushner, Adam B. and B.J. Lee. “Keeping Up With Korea.” Newsweek. 9 Aug 2008.
http://www.newsweek.com/id/151701
33
34

21
The success of these preparatory schools is the culmination of several factors. Firstly, the schools
selectively admit top-scoring middle school students who are highly motivated. Secondly, the
students who aspire to an American University are taught in English-language classes, often
instructed by highly paid American teachers. Thirdly, emphasis is placed on composition and
other skills that are crucial to success on the SAT and the college admissions essays. Advanced
Placement courses and opportunities for research projects are also made available. Fourthly, the
already-entrenched culture of unceasing study prompts students (and parents) to stay the course
and remain laser-focused on the end-goal of attending the college of their dreams, at whatever
cost. And finally, the parents of these students have the economic means to support their children
in their endeavors – many are wealthy doctors, lawyers, or university professors who can afford
the $5,000 or $15,000 annual fee to send their children to Daewon or Minjok, respectively.35
Non-Feeder High Schools
In an effort to stay competitive and to meet the desires of Korean students and the Korean
workforce, more schools are focusing on preparing students for admission to American schools.
A small collection of foreign-language schools, like Minjok and Daewon, have historically had
phenomenal success sending students to the U.S. for college. Many other private or special
purpose schools are beginning to adopt their approach and incorporate international programs
into their curricula to improve their standing with American colleges.36
Initial efforts seem to be making an impact. From Daewon’s 2008 graduating class, not one
student was accepted to Harvard. Since the 1990s, South Korea has steadily increased the
number of students attending Harvard each year, making South Koreans the third largest group
of foreign students at Harvard during the 2007/08 school year.37
Within this context, the fact that
Daewon sent no students to Harvard for the 2008/09 school year is worth noting. Additionally,
this past year, 131 Daewon students applied to American universities, a sharp increase from 78
in 2007, but the number accepted to Ivy League schools fell to 27, down from 36 in 2007.38
While only speculative, some Korean high school administrators feel that other schools newly-
devoted to foreign-language study and foreign universities are beginning to give the traditional
feeder schools a run for their money. In recent years, the number of Korean high schools in the
greater Seoul area that have incorporated international programs aimed at helping students gain
admission to American schools has swelled to fifteen.39
Consequently, about 15 percent more
students studied under an international program during the 2007/08 school year than in the
previous year.40
As this percentage grows, so does competition amongst more high schools to
place their students in elite universities. A teacher from a foreign language high school in
Gyeonggi Province said, "The leading special-purpose high schools, such as the Minjok
Leadership Academy and Daewon Foreign Language High School, will now have much less of
an advantage [despite that] they started international programs ahead of the others.41
35
36
37
“South Koreans Ranked 3rd
Largest Foreign Group at Harvard.” The Chosun Ilbo. 31 Dec 2007.
http://english.chosun.com/w21data/html/news/200712/200712310009.html
38
“Fewer Korean Students Make It to Ivy League Schools.” The Chosun Ilbo. 3 Apr 2008.
39
40
41

22
Korean Students in American Graduate Schools
Of the 62,392 South Korean students who attended American schools in 2006/07, 38.4 percent,
or 23,959, were graduate students. For many Koreans, the prospect of attending an American
graduate school is often more realistic than the prospect of attending and American
undergraduate program. Because financial aid is rarely offered by American schools to foreign
students, college in the U.S. is simply not a fiscal possibility for many. Yet, the dream of an
American education remains, as it is widely understood that a degree from a prestigious school
will enable greater clout in the Korean work force. And a graduate degree from an American
school is sometimes far more plausible because foreign graduate students are eligible for
scholarships. So many will attend college in Korea, work for a few years to save money, then
apply to American graduate programs once they are capable of self-funding, or hope to win
sufficient scholarship money.
Since many of these students did not go through the American college application process, the
graduate application process remains murky. Furthermore, graduate school applicants are
typically not current students, and thus do not have access to school guidance counselors. For
this reason, Koreans considering applying to American graduate programs will often form online
or offline communities to function as an ad hoc resource for corralling and sharing information.
Often, people within these groups will recruit friends or contacts that have attended an American
graduate program to shed light on the process in an informal way. Given the dearth of resources
for graduate school applicants, some consultant firms have begun to crop up that typically
specialize in one kind of graduate study.
SOUTH KOREA: VALUE PROPOSITION ANALYSIS
As stated, in the 2006/07 school year, American schools hosted 83,833 students from India,
67,723 from China, and 62,392 from South Korea.42
Both China and India have populations
nearly twenty times larger than that of South Korea. The fact that South Korea, with a
comparatively small population, had roughly 5,000 fewer students enrolled in the U.S. than
China, and roughly 20,000 fewer than India is remarkable and speaks volumes about South
Korea’s love of American education. The desire to attend an American institution of higher
learning is not new to South Koreans. But it is the strength of their desire, their obsession with
the brand power of American schools, and the newly heated competition that is gripping Korean
high schools that create an opportunity for us, and value in our services for them.
While demand for an American education grows within Korea, spots for these students at
specific American schools do not. In other words, American schools must mind quotas for
international groups and typically cannot increase group acceptance rates to meet demand. As
more Korean students vie for, say, fifty spots at Harvard, proportionally, fewer Koreans will gain
acceptance to Harvard. Our college selection services will be of particular value to certain
segments of students, as we will aim to educate them about the plethora of prestigious options
amongst top liberal arts schools and encourage them to evaluate more qualitative considerations
that will introduce to them best fit schools.
42

23
Interestingly, Korean students tend to drop out of their Ivy League college programs more than
any other student group. Forty-four percent of Korean students in top American schools drop out
each year, compared to 34 percent of American students, 25 percent of Chinese students, and 21
percent of Indian students.43
The author of the study that compiled these numbers theorizes that
the high drop out rate of Korean students is attributable to cultural differences. The author found
that the average Korean student spends 75 percent of his time studying, and only 25 percent on
extracurricular activities.44
The average American student tends to divide his time equally
between academic and extracurricular pursuits.45
Korean students are under tremendous parental
pressure for academic success, causing them to miss important social and extracurricular
activities that facilitate acclimation to American culture. Consequently, many Korean students
face a higher burn-out rate and feel dissociated from classmates and peers, causing attrition.
Our post-admissions services will thus be of particular value to Korean students and will be
designed to mitigate culture shock and prepare them for an academic experience vastly different
from all prior experience. Crucial to successful communication of these points will be conveying
the lasting value of social interaction to create a network that will enhance a student’s long-term
success and enable future opportunities. As much as the focus remains on gaining admission, the
value of a brand-name education cannot be realized fully without follow through: Students must
complete their studies and graduate with a degree to capitalize on the opportunities that an elite
American education is perceived to present.
SOUTH KOREA: MARKET SEGMENTS AND CORRESPONDING VALUE
PROPOSITIONS
Because of the nature of the Korean high school system, it is necessary to divide high school
customer segments by consulting services and seminars, and then school type. Students in
different types of schools with different circumstances will gain different value from our
services, and will thus require accordingly devised marketing tactics. The market potential for
the entire high school segment for consulting services is 9,777 students. (Please see Appendix 6
for an explanation about how this number was derived.)
High School Segment 1: Consulting Services for Students in Feeder Schools
Minjok Leadership Academy and Daewon Foreign Language High School are the most
prominent feeder schools in the greater Seoul area. Goyang Foreign Language School and
Hanyoung Foreign Language School are also important feeder schools. Curriculum at these
schools is almost entirely designed to prepare students for the American admissions process, and
staffs are highly trained to this end. Students have access to admissions assistance in the form of
school college guidance counselors that clearly have a high success rate and a keen
understanding of American applications. Even still, when students are vigorously competing
with each other for a small number of highly-coveted Ivy League spots, many of these students
feel they have to use outside admissions consultants to gain an edge.
43
Park, Si-soo. “44% of Korean Ivy League Students Quit Course Halfway.” The Korea Times. 3 Oct 2008.
44
45

24
Customers in this segment are already accustomed to considering and paying for outside
admissions consulting. Our value proposition to them is in offering legal and far more affordable
services delivered by people with insider knowledge and direct experience with Ivy League and
top American schools.
High School Segment 2: Consulting Services for Students in Non-Feeder Schools
Since international programs are largely new in non-feeder schools, these students will arguably
stand to benefit more from outside admissions consultants, as their access to admissions
guidance within their schools may be limited or underdeveloped at this time. Additionally, as
interest in international college education continues to grow within these schools, more students
will become aware of the value of using outside admissions consultants. But, in some cases,
crammers will first interview a candidate before offering them admission into their programs. By
doing this, they can attempt to work only with the brightest students to improve the crammer’s
admissions success rate.46
Students from lesser known high schools, then, might even be denied
entrance into certain crammers, creating additional opportunity for us. Furthermore, since many
of these crammers are illegal, they remain unlisted and can often be discovered only by word-of-
mouth, which can be contained within certain school or parent communities.47
Students at lesser
known schools may never even discover certain crammers.
Our value proposition to these students is, in addition to excellent, affordable guidance and a
curriculum developed by American school insiders, availability. Through strategic and careful
marketing efforts, we will make ourselves highly visible and accessible to these students.
Additionally, with these students, we will likely make more frequent use of our best-fit college
selection services, and introduce to them a host of highly-regarded schools outside of the Ivies.
Many students in this segment are open to a wider range of American schools and stand to gain
from learning about the different types of American colleges and their legitimate merits and
strengths.
(Please see Exhibit 7 for Target Feeder and Non-Feeder High Schools in Seoul and Pusan.)
High School Segment 3: Seminars for High School Students
Our market potential for high school seminars targeting 11th
and 12th
graders is 20,156.48
With
our seminars, we are able to cast a wider market net, as we are appealing to students merely
interested in learning more about attending college in the U.S., not just those students who attend
feeder schools where interest in American schools is already strong. In addition to creating an
opportunity for feeder and non-feeder school students to learn more about American schools and
interact directly with representatives from top schools, we aim to bring information to students
who might otherwise lack access to it.
46
“W100 Million to Get Into a High School Abroad?” The Chosun Ilbo. 20 Aug 2007.
47
“Boom Time for Illegal Crammers as Koreans Come Home.” The Chosun Ilbo. 28 May 2007.
48
See Appendix 6 for an explanation of how this market potential was derived.

25
Graduate School Segment: Consulting Services and Seminars
Our market potential in Korea for graduate applicants possibly attending our seminars and using
our consulting services is 6,837.49
Currently, many South Koreans considering American
graduate study have to seek information on their own to gain an understanding about the
admissions process. We will bring valuable insight and information to them by our staff versed
in a host of graduate programs. Of particular value to this segment will be our nuanced
understanding of the different strengths and weaknesses at various grad schools and how they
pertain to finding a school that best fits the needs and goals of an applicant. Additionally, we will
offer scholarship application services, recognizing that many applicants rely fully on scholarship
winnings to fund their education.
Middle School Segment: Seminars
In South Korea, middle school includes 7th
through 9th
grades. We will primarily target 8th
and
9th
grade students for our seminars. For this segment, we estimate our market potential to be
roughly 24,120 students.50
For our middle school seminars, we intend to appeal to a wide
segment of students attending an array of school types with just an interest in learning more
about attending college in the U.S. Middle school students who attend our seminars will benefit
from our strategic advice about how they can optimize their high school years ultimately to
become a more attractive candidate to American colleges.
Secondary Market Segment: Parents of Our College Applicant Segments
Parents play a vital role in the decision-making process for our middle and high school customer
segments. Per Korean culture, parents are deeply involved in their children’s educational
trajectory and begin planning for their child’s ultimate success at a very early age. Parents also
fund their children’s education, from tuition to ancillary services, such as test prep and
admissions consultants, and thus are the ultimate decision makers behind our services targeting
middle and high school students. The admissions consultancy market in South Korea is largely
dominated by a host of businesses that charge illegal fees for their services. Yet, these companies
justify their astronomical prices by claiming to be the best in the league. For these parents, we
will offer an affordable alternative, without sacrificing the quality of the services for their
children. We will also be far more accessible than current competitors that must go to great
lengths to conceal their true business operations to avoid seizure from authorities. Affordability
and accessibility will prove particularly valuable to parents of students at public schools or lesser
known feeder-schools, where overall wealth and access to resources is somewhat lower than at
feeder schools. Additionally, one parent is welcome to attend our seminars at no extra cost. The
middle school seminars will also prove a valuable opportunity to promote our consulting services
to an audience that will eventually transition into our high school segment.
49
50

26
SOUTH KOREA: COMPETITIVE ANALYSIS AND ADVANTAGE
Considering the brand power of elite American schools, perhaps our most significant competitive
advantage is in our affiliation with top American institutions. This is a feature of our business
that would be very difficult for local competitors to attempt to replicate, as it is highly contingent
on preexisting relationships. Given the clandestine nature of this industry dominated by illegal
crammers, it was not possible to create a list of businesses and individual competitor profiles at
this point. But in our research, we did not learn of one crammer founded by Americans with elite
American school experience or ties. Additionally, no local competitors, particularly with our
connections, appear to be hosting seminars aimed to bring information to a wide market
capturing students who might otherwise not have access to it. Our seminar attendees and
consulting clients will gain access to our proprietary curriculum and guidance services developed
by people who have worked at top American schools.
Furthermore, we intend to conduct our business in a prudent manner and will not charge illegal
fees. We also will market our school selection services to appeal to students from schools that do
not typically feed into American schools, without damaging the perceived caliber of our elite,
top-quality services. It is our intention to be inclusive without diluting our brand power and
perception as a company with a high success rate of winning admission to prestigious American
schools.
SOUTH KOREA: THE MARKETING STRATEGY
The goal in South Korea is to position our services as elite, top quality, highly professional,
legal, affordable, and accessible. It will be crucial to underscore our affiliations with prestigious
American schools. Our school selection services, specifically those targeting best fit schools,
must be marketed carefully so as not to undermine the prestigious component of our brand.
Unlike circumstances in China (discussed in Appendix 4), it is unlikely that we will be able to
market our services through high schools, as many Korean schools feel protective over their
admissions guidance programs.
Recognizing that South Korean culture is highly steeped in nuanced tradition, we will retain the
services of a local marketing representative or firm for approximately four months to develop
and implement our initial marketing campaign. From there, we intend to transition marketing
maintenance to our full-time local point people. Marketing outreach will include:
• A bilingual, information-rich website;
• Advertisements in local and widely-circulated newspapers, like national papers Chosun Ilbo,
Hankook Ilbo, Joongang Ilbo, Donga Ilbo, Kookmin Ilbo, and Kookje Shinmun in Pusan;
• Advertisements in school newspapers;
• Facebook, and other social networking sites, outreach and the creation of online social network
communities for our incredibly tech-savvy youth segments;
• Outreach to parent communities;
• Outreach to expat communities to capture any market potential among expats with children;
• General media outreach and public relations campaign to generate free press.

27
APPENDIX 4: COMPREHENSIVE MARKET ANALYSIS OF CHINA
CHINA: MARKET AND ECONOMIC OVERVIEW
College in China: An Issue of Supply
For decades, China’s higher education system has experienced significant and problematic
supply and demand issues: There literally are not enough spots at China’s universities to meet
demand. With only about one thousand regular colleges in China (as compared to 4,000 in the
U.S.), approximately one out of every 13 high school graduates is accepted to attend a domestic
college, leaving hundreds of thousands without the option each year.51
For decades, the lack of
space to accommodate its own students has been a significant driver motivating Chinese students
to attend school abroad. In fact, recognizing their dilemma, for the last two decades, the Chinese
government has instituted programs and policies that encourage students to travel abroad to
study.52
There have been recent signs of a slight shift in this perspective, stemming from the
Chinese government’s awareness that a strong internal education system enables greater
competitiveness in the global market. Thus, recent measures have been taken to increase capacity
in its colleges. But, this is an undertaking that will take years, if not decades, to complete.
The Appeal of American Schools
A fundamental difference between how students in China and America arrive at a field of study
during college creates a scenario that often makes American schools more appealing. As a
precursor to applying to a Chinese college, students must sit for the gaokao, or the National
College Entrance Exam, which is offered only once a year. It can best be compared to the SAT;
however, a student’s gaokao score not only determines to which schools that student is qualified
to apply, if any, but also his or her field of study once in college.53
Students have little choice in
selecting a major at a Chinese university, making the completely choice driven major selection
system at American colleges very attractive. Furthermore, in June 2008, 10 million high school
students sat for the gaokao, and they were competing for only 5.7 million university spots.
Students with poor scores must wait a full year to re-take this crucial and highly competitive test
and hopefully qualify to apply to college.54
It is a system created more to manage the university
shortage issue than to provide opportunity for advancement for Chinese students.
However, perhaps a more significant impetus driving the desire for American education is the
belief that the U.S. is home to the highest concentration of elite schools and premier education.
The caliber of Chinese universities is still widely perceived to be lacking (not one Chinese
school made it on the Times Higher Education list of Top 100 global university rankings), and
efforts to improve the perception of the national education system are in nascent, not-yet
impactful stages.55
While the high opinion of American schools is not new, China’s developing
economy is allowing the dream of attending college in U.S. to become a reality for far greater
51
Weicheng, Zou. “Bridging Cultural Differences in College Selection and Application.” Journal of College
Admission. Summer 2003. http://findarticles.com/p/articles/mi_qa3955/is_/ai_n9244758
52
Admission. Summer 2003.
53
Zoninsein, Manuela. “China’s SAT.” Slate 4 Jun 2008 Slate.com. http://www.slate.com/id/2192732/
54
Zoninsein, Manuela. “China’s SAT.” Slate 4 Jun 2008 Slate.com.
55
Hvistendahl, Mara. “China Moves Up to Fifth as Importer of Students.” The Chronicle of Higher Education. 17
Sep 2008.

28
numbers of people. A rapidly budding middle class and an increasingly wealthy population are
enabling more and more self-supporting Chinese students to consider an American education.56
Particularly notable is that since foreign graduate students can apply for scholarships at
American schools (whereas financial aid for foreign college students is effectively nonexistent),
Chinese students have historically attended college in China (which is nearly free due to
government subsidy) and aimed to win scholarship money and attend graduate school in the U.S.
Under this strategy, financially-strapped students can still gain a highly coveted degree from an
American school. However, as wealth grows in China, students are considering college in
America in unprecedented droves, creating new opportunity on which we will capitalize. Interest
in American college can be in part measured by the numbers of Chinese students taking the SAT,
which has increased in recent years. In 2003, New Oriental, China’s leading test prep company,
launched SAT prep courses in Shanghai, and only 50 students enrolled. In 2005, New Oriental
expanded SAT prep courses to Beijing, and gained 1,500 SAT prep students within a year.57
In the 2006/07 school year, of the 67,723 Chinese students studying in American schools, only
14.7 percent (or 9,955 students) were college students; 70.8 percent (or 47,948 students) were
enrolled in graduate programs – a percentage breakdown vastly different from that of South
Korea.58
It is expected that, thanks to newly-amassed private wealth, the overall number of
Chinese students going to American schools will grow, and the percentage breakdown between
students in college and graduate school will shift to reflect more college-bound Chinese students.
China: A Booming Global Economic Power
China currently has 1.33 billion residents. Its economy has changed dramatically in recent
decades, causing China to become one of the world’s most powerful economies. China’s GDP
has grown tenfold since 1978, reaching $3.25 trillion in 2007. Measured by purchasing power,
China was the second largest global economy in 2007, second to the U.S, and annual inflows of
foreign investment rose to $75 billion.59
As of 2004, the wealthiest 10 percent of the Chinese
population accounted for 34 percent of national consumption. As a benchmark, the wealthiest 10
percent of the American population accounted for 30 percent of national consumption in 2007.60
As China’s economy has boomed, so has average wealth, which is directly correlated with
greater consumer and government investment in education. In 1999, education expenditures
represented 1.9 percent of China’s GDP. In 2006, the Chinese government announced that by
2011, education expenditure would increase to 4 percent of GDP, and progress has thus far been
made.61
In 2002, total consumer expenditure on education was $41.3 billion. By 2007, it had
nearly doubled to $74.7 billion.62
(Please see Exhibit 6 for Demographic and Economic Data.)
56
57
People’s Daily Online “U.S. College Tests Attract China’s Talented High School Graduates.” 19 Aug 2006.
58
59
60
61
“China to Raise Education Expenditures to 4% of GDP.” China Education and Research Network,
http://www.edu.cn/english_1369/ 10 Mar. 2006.
62

29
CHINA: VALUE PROPOSITION ANALYSIS
Chinese students who dream of attending school in the U.S. currently have limited access to
school resources, parents, or peers who can help them navigate an entirely foreign – in nation
and concept – admissions process. To that end, we offer a set of tools to simplify dramatically,
understand thoroughly, and complete successfully the American application, and to best position
applicants to win admission to schools of their choosing and gain a lifetime gateway to success.
At our seminars, our clients will connect with distinguished deans and directors from top
American schools, and through our consulting services, students will gain access to our
proprietary curriculum that will enable them to produce a well-rounded application to best appeal
to American admissions staff.
In 2003, The Journal of College Admission conducted a study to understand the fundamental
cultural and academic differences between Chinese and American admissions processes, and
thus the particular challenges and hurdles for Chinese students attempting to comprehend
American admissions. In China, the college admissions process is almost wholly quantitative –
students are selected based almost solely on test scores. The qualitative aspects of the American
application are not only entirely foreign, but also even a challenge for students to grasp.
Per the study’s findings:
The Chinese students had considerable difficulty making sense of these many new
concepts [that exist in the American admissions process]. For example, students
showed a strong suspicion about writing essays at home and turning them in with
the application packet. Their first response was, "How will those college people
know who wrote them?" They insisted, even in the class discussion, test scores
were more important than essays. Some students even tried to get others to write
for them so they could spend more time preparing for the TOEFL and the SAT.63
Additionally, Chinese students are unaccustomed to the qualitative factors Americans include
into their school selection analysis:
Due to different historical and cultural backgrounds, China and the United States
are very different in their approaches to college admission. Not many Chinese
students, nor their families, have any idea of how to select a suitable college to
meet their needs. They rely on their own cultural knowledge when selecting a
college in the United States. Not surprisingly, many students suffer unnecessary
losses of time, money and other resources before realizing their original choice
was not appropriate.64
Students participating in the study were presented with a list of ten factors typically considered
by American students when selecting a college. The factors were developed by studying college
brochures and websites. The Chinese students where then asked to remark on how they felt these
63
64

30
factors fit into the decision-making process. Factors included things like the different types of
colleges, faculty-student relationships, student life, entertainment and extracurricular activities,
etc. Across the board, Chinese students struggled to conceptualize how these qualitative factors
applied to the college selection process.65
The ramifications of these many disparities pose issues for both Chinese applicants and the
American admissions staff that review their applications. The drop out rate of Chinese students
at top American schools is 25 percent.66
Chinese students struggle to build an application that
will be understood and well received by American admissions staff and to choose a college that
will best optimize their likelihood of remaining enrolled through graduation and their comfort at
the school. And admissions staff risk admitting students who might be a better fit at another
school, and thus might eventually drop out. Both the students and the schools will benefit from
admissions counseling that endeavors to explain to students the more holistic approach to
American admissions and to place students at a school that meets their needs.
CHINA: MARKET SEGMENTS AND CORRESPONDING VALUE PROPOSITIONS
Unlike South Korea, China does not have a few top high schools that feed large numbers of
students into American schools. The vast and highly fragmented school system consists mostly
of public schools, schools affiliated with neighboring universities and a crop of newly-opened
private schools. Applicants to American schools tend to come from any and all schools and from
all over the country.
The vast majority of applicants do, however, come from urban areas. Beijing and Shanghai are
ideal launch cities. In our interviews with people from China, many compared Beijing to Boston
because of Beijing’s high concentration of schools; education simply has a strong and influential
presence in Beijing’s culture. Shanghai is often compared to New York City and is perceived
more as the financial capital of China. While Beijing has more schools in general, Shanghai is
known to invest heavily in technology and methodological approaches to education to improve
continually their perception as a destination for premier education within China.67
Both cities’
cultural values lend themselves to creating ambitious, globally-minded students who desire a
leading education, believing it will enable for them an entirely more successful future.
High School Segment: Consulting Services and Seminars
The college guidance counselor is virtually nonexistent in schools in China. With a domestic
college application process that is effectively just test scores and personal information, students
do not need assistance with their applications. This means that generally speaking, Chinese
students applying to American schools have no resources or access to assistance from within
their schools. Furthermore, since the ability to attend college in the U.S. is somewhat new, at
least on a wide scale, students typically cannot turn to parents or relatives for guidance. In most
cases, these parents do not even speak English. Students must look outside for help, it is often
their only option.
65
66
67
“International Schools: Shanghai.” Newsweek Showcase, via Newsweek. Retrieved 27 Oct 2008.
http://www.newsweekshowcase.com/international-schools-shanghai/#shanghai-international-schools

31
Our market potential for the 11th
and 12th
grade seminars is 8,623, and our market potential for
high school consulting services is 4,142.68
To connect with students with a high likelihood of
interest in pursuing an American education, we will begin in Beijing by targeting students at high
schools that are known to matriculate the brightest students, specifically Beijing #4, Beijing #2
and Beijing #8, and the high schools affiliated with Beijing’s top two universities, Peking
University and Tsinghua University. In Shanghai, we will begin by targeting the top international
high schools, including Shanghai American School, Shanghai Community International Schools,
Shanghai Rego International School, The British International School, and the high schools
affiliated with the Shanghai’s top three universities, Fudan University, Nanjing University, and
Shanghai Jiao Tong University.
Graduate School Segment: Consulting Services and Seminars
Our market potential for our graduate level seminars and graduate consulting service is 16,562.69
Unlike the scarcity of familial or community guidance that Chinese college applicants face,
graduate applicants can turn to peers who can offer experiential assistance and advice. Typically,
graduate applicants are not approaching the admissions process as blindly as college applicants.
Our primary value to graduate applicants will be the opportunity to interact directly with staff
from elite American schools at our seminars, essay editing services, interview coaching (as the
interview is more prevalent at the graduate level), and visa facilitation services.
Scholarships are of prime importance to Chinese graduate school applicants. Chinese consulting
companies that work with graduate applicants set their pricing structure such that students who
win scholarship money must give a certain percentage (typically 10 to 15 percent) of that money
to the consulting firm. It is incredibly important for these customers to win as much scholarship
money as possible; in some cases, whether or not a student can attend graduate school in
America depends entirely on winning scholarship money. We will edit and refine our clients’
scholarship application essays to improve their standing. But it is our belief that it is a
candidate’s strong background and ideal mix of qualifications that make him or her a contender
for scholarships. Thus, we believe he or she should retain all scholarship winnings. We will
market our scholarship services accordingly and simply charge a flat fee for scholarship services
(which will be embedded in a consulting services premium package option). We believe this will
give us an additional and significant competitive advantage over most consulting services, as we
are offering to this segment a value that others simply do not.
Middle School Segment: Seminars
Our market potential for the middle school seminar segment is 10,928, including 8th
and 9th
graders.70
For these seminars, we anticipate that we can attract a larger market as we are simply
appealing to students with an interest in learning more about American schools. Many Chinese
schools of all levels are beginning to add English language courses to their standard curriculum.
Previously, English courses in most Chinese schools were largely unheard of, and students
wanting to learn English would have to enroll in outside courses. Obviously, students must first
be proficient in English before they can consider attending American schools. Now that English
is becoming more accessible and free to greater numbers of students, more students can consider
68
69
70

32
the possibility of attending school in the U.S. We will advertise our services primarily at middle
schools teaching English courses and that feed into our target high schools (listed in “High
School Segment: Consulting Services and Seminars”). For these students, our value will be in
providing insight into ways to optimize their high school years to become a more attractive
candidate to American colleges, insight that remains largely unavailable to them from within
their schools. Additionally, one parent is welcome to attend our seminars for no extra cost. The
seminars will also prove a valuable opportunity to promote our consulting services to an
audience that will eventually transition into our high school segment.
Secondary Market Segment: Chinese High Schools and Administrators
Currently, there are no Chinese high schools that send a significant number of students to
American colleges with any regularity. Yet, given the esteem of an American education, it is
understood that high schools stand to gain from increasing their student admission rate to
American colleges. Chinese schools lack the concept of the college guidance counselor, and
students applying to American schools fend for themselves as they navigate an unfamiliar
application. In this scenario, both the student and the school lose the opportunity to mutually
gain from students winning admission to American schools.
Research indicates that Chinese business is conducted largely by creating mutually beneficial
relationships and leveraging favors for advancement. We have learned that provided we can
connect with the appropriate people within individual schools, schools would be open to
collaborating with us in some capacity, and both our company and schools stand to gain from the
symbiotic nature of the relationship. Culturally, teachers have significant influence over students
and parents, and collaboration with them would enable for us an opportunity to promote our
services to these influential people. And schools stand to improve their reputations if more of
their students are accepted to American schools.
CHINA: COMPREHENSIVE COMPETITIVE ANALYSIS
New Oriental Education Group
New Oriental is the most significant competitor due to its size, reputation and sheer force. It can
best be compared to a Kaplan or Princeton Review, as New Oriental’s core competence is in test
preparation. In 1993, New Oriental was founded by a Peking University graduate; the company
is now an NYSE-listed company with a $2.6 billion market capitalization.71
In 2007, Time
magazine named it one of China’s fastest growing and hottest companies. “New
Oriental…continues to dominate the test-preparation market in education-obsessed China, with
75% of the mainland market share in TOEFL testing and 90% in the U.S. graduate-admission
GRE and GMAT tests.”72
The company also operates foreign language schools and two full-time
grade schools. In total, New Oriental enrolls approximately one million students a year in its
myriad schools and courses.73
71
Zoninsein, Manuela. “China’s SAT.” Slate. 4 Jun 2008. Slate.com.
72
Ramzy, Austin. “New Oriental Education & Technology Group” Time. 30 Aug 2007.
http://www.time.com/time/specials/2007/article/0,28804,1657601_1657599_1657596,00.html
73
Ramzy, Austin. “New Oriental Education & Technology Group” Time. 30 Aug 2007.

33
Currently, New Oriental is primarily an indirect competitor. Yet, it recently began offering
consulting services for American college and graduate school applicants. While test prep remains
its core competence and its application consulting services remain relatively lesser known, New
Oriental does have a distinct advantage marketing their admissions services, in that they gain
access to hundreds of thousands of high school students (and potential applicants to American
colleges) nationwide through their test prep courses and can market services directly.
Interestingly, according to one New Oriental employee who spoke off record, New Oriental
considers its American college admissions services lacking compared to its American graduate
admissions services, causing New Oriental to rely more heavily on its graduate services to
generate revenue.74
New Oriental uses an interesting pricing scheme: Each school ranked 120 or better on US News
& World Report’s annual rankings is assigned a dollar amount ranging from $4,300 USD to
$8,600 USD. Clients will pay the corresponding rate attached to the highest ranked school to
which they gain admission for their entire package of consulting services. Additionally, New
Oriental requires that 15 percent of clients’ scholarship earnings must be paid back to the
company. While some of New Oriental’s consultants attended American schools, the majority
are locals who did not.75
Chivast Education International
Headquartered in Beijing, Chivast (pronounced Jia Hua Shi Da in Chinese) is the most widely-
known international study consulting company in China. It is also one of the oldest. In fact,
many smaller admissions consulting companies base their pricing models on Chivast’s model,
which is $5,100 USD for a service package if the student gains admission to at least one top 50
American school. If a student does not gain admission to at least one top 50 school, the fee for
the same package of services is reduced to $4,000 USD. Additionally, they require remittance of
10 percent of scholarship winnings. On average, one Chivast consultant will work with 50
students applying to American schools per year. Only some of Chivast’s consultants attended
American schools.76
Taisha
Tai Sha means “too stupid” in English, and Taisha’s snarky name gives this company a
somewhat youthful appeal that seems to resonate with enough young students. In keeping with
its youthful brand, perhaps the most unique component of Taisha’s business is a separate
auxiliary website that is a free forum available to students looking for information and guidance
when applying to American schools. It functions like a blog and chat room, where students are
invited to glean information from posts by Taisha staff, exchange tips, and read discussion
boards. Taisha uses this site, which is relatively widely known amongst Chinese students, as a
marketing tool to attract customers to its admissions consulting services.
74
Information obtained by our hired research assistant from Beijing, who interviewed his friend who works at New
Oriental.
75
All numbers and information obtained by our hired research assistant from Beijing.
76

34
Taisha operates in Beijing, Shanghai and Guangzhou. If a student uses Taisha’s services to apply
to school for the next and most immediate school year, Taisha charges $7,200 USD for a full
package of services. If a student wants to apply to enter school one year out, Taisha charges
$6,100 for the same package. Taisha does not price according to the rank of the schools to which
clients are admitted. They also require remittance of 10 percent of scholarship money won.
Currently, no Americans work at Taisha, however some consultants attended school in the U.S.77
Beijing Wiseway Consulting Company
For years, Wiseway was known only for its consulting services for students applying to schools
in the United Kingdom. However, as interest in American schools continued to grow and outpace
interest in U.K. schools, Wiseway expanded its services to include American schools. Wiseway
has a small satellite office in San Francisco whose purpose is to connect in some capacity with
American schools (however, research revealed this might be more symbolic than functional).
Wiseway charges $5,000 for top 50 schools, $4,000 for schools ranked 51 – 100, and $3,200 for
schools ranked lower than 100. Students pay the fee that corresponds with the top rated school to
which they gain admission. Additionally, students are obligated to pay 15 percent of scholarship
winnings.78
Additional Notes
It is worth noting a few additional points about each of these four companies:
• None of these companies charges hourly rates for any services. All package rates are the same
for both undergraduate and graduate consulting services.
• Excluded in the package rates offered by each company are any service fees, like application
fees, any material shipping costs, visa application fees, etc. Applicants are personally
responsible for paying such fees.
• Each of these companies is open to working with students remotely, specifically students living
outside of the cities in which they operate. However, each company encourages students to
come to the nearest location for, at least, an initial meeting.
The Rest of the Competitive Market
Taurus Education, a newly-launched admissions consulting firm headquartered in Shanghai, is
worth noting. The company was founded by a mix of young Americans and Chinese, all of
whom attended prestigious American undergraduate or graduate schools. Their diverse team
provides for the company first-hand awareness of the unique challenges Chinese students face in
American schools, along with an intimate, culturally-nuanced understanding of the American
application and academic life. Taurus positions itself as a comprehensive curriculum whose aim
is just as much to help students gain admission to American schools as it is to prepare them for
life in school. Taurus works only with top American schools, and students interested in their
services must first apply and gain admission into Taurus. While Taurus has no staff members
that have ever held high-ranking positions at American schools, they do hold info sessions in
Chinese cities in collaboration with top American schools, with the intention of facilitating
networking opportunities for students with admissions officers and current Chinese students
from these schools. According to their website, they are in the midst of planning a program to
77
78

35
help high school students gain access to summer programs at U.S. schools, and a program to
organize campus visits.
The remainder of admissions consulting services companies is largely comprised of very small-
scale operations, typically founded by locals, most of whom never attended American schools.
These companies tend to offer package rates and require partial scholarship remittance.
CHINA: THE COMPETITIVE ADVANTAGE
No other Chinese competitors appear to be hosting seminars aimed to disseminate information to
a wide market capturing students who might otherwise lack access to it. Our seminar attendees
and consulting clients will be exposed to our proprietary curriculum and guidance services not
available through their schools. Should any students under our care win scholarship money, we
will not require them to remit any percentage of their winnings to the company, but instead allow
them to retain their entire winnings themselves. We will emphasize this comparatively generous
scholarship policy in our marketing efforts, confident that it will provide an attention-grabbing
competitive advantage. (Please see Exhibit 8A for Competitive Landscape in China –
Comparison of Services, and Exhibit 8B for Competitive Landscape in China – Price
Comparisons.)
CHINA: THE MARKETING STRATEGY
Our goal in China is to position ourselves as an American company, staffed by highly-connected
experts who deliver services built on insider knowledge. The current high school education
environment in China is unique in that high schools do not have admissions guidance counselors,
and schools typically can offer students no assistance when applying to schools in the U.S.
Therefore we stand to benefit by marketing through high school administrators and teachers to
promote a service that can ultimately improve a school’s success rate of sending students to
American colleges, and thus its reputation. To achieve buy-in from schools, in our marketing
efforts to them, we will emphasize the mutually beneficial elements of collaboration.
Recognizing the cultural and language disparities that exist between China and the U.S., we will
retain the services of a local marketing representative or firm for approximately four months to
develop and implement our initial marketing campaign. From there, we intend to transition
marketing maintenance to our full-time local point people. Marketing outreach will include:
• A bilingual and information-rich website;
• Outreach to high schools to establish mutually beneficial relationships;
• Advertisements in local and widely-circulated newspapers, like Beijing Evening (Bei Jing Wan
Bao), Beijing Times (Jing Hua Shi Bao), and Beijing Youth Daily (Bei Jing Qing Nian Bao) in
Beijing, and ShengJiang Service Guide, Morning News, Xin Min Evening News, Weekly TV
and Broadcasting Paper in Shanghai;
• Advertisements in school newspapers;
• Facebook, and other social networking sites, outreach and the creation of online social network
communities for our incredibly tech-savvy youth segments;
• Outreach to parent communities;
• Outreach to expat communities to capture any market potential among expats with children;
• General media outreach and public relations campaign to generate free press.

36
APPENDIX 5: INCORPORATION LOCATION ANALYSIS
Incorporating in Hong Kong
The World Bank recently released a report detailing the results of an analysis that compared the
overall ease of doing business and starting a business in 181 countries. Hong Kong ranked fourth
in overall ease of doing business, and 15th
in ease of starting a business.79
In 2007, The Heritage
Foundation, a Washington DC-based think tank, named Hong Kong the freest economy in the
world for the 13th consecutive year, awarding to Hong Kong the best scores in trade, monetary
policy, foreign investment, banking and finance, property rights and regulation.80
According to
the 2007 Hong Kong Country Commerce Report, advantages of doing business in Hong Kong
include geographical location and easy access to surrounding Asian regions, communications
network, infrastructure, free-port status, and the lowest corporate tax rate in Asia, which is 17.5
percent. Incorporation fees range from $20 USD to $130 USD and can be processed in weeks.
Incorporating in the United States
According to the World Bank survey, the U.S. ranked third in overall ease of doing business
within the country, and sixth in overall ease of starting a business in the U.S.81
Incorporating in
the U.S. is incredibly easy and low cost. However, at 35 percent, the U.S. has the highest global
corporate tax rate.
Should we incorporate in the U.S., we would incorporate in Delaware; as an LLC that would
conduct no business operations in Delaware, we would be exempt from incurring an additional
state income tax. Additional incentives to incorporate in Delaware include access to Delaware’s
corporate legal system, known to be the friendliest to businesses in the U.S, and the low $89 fee
to incorporate, which can be processed in days.82
It is worth noting that regardless of where we incorporate, any of our American employees –
whether living in the U.S. or abroad – will still have to pay personal income tax in the U.S.
Incorporating in China or South Korea
In January 2008, China repealed all tax incentives for foreign companies to incorporate in China;
now any company incorporating in China – foreign or Chinese – is subject to the same 25
percent corporate tax rate.83
Furthermore, it is clear that when we conduct business in China, we
can expect to contend with widespread corruption, excessive red tape and a legal system that
lacks transparency. By not incorporating in China, we will eliminate, to some degree, the
bureaucracy and corruption we will face in our operations there.
South Korea lacks any compelling incentives for small business incorporation.
79
“Top 10 Ease of Doing Business Rankings: 2008.” World Bank, via Euromonitorinternational.com. 30 Oct 2008.
80
“Hong Kong Country Commerce Report.” New York: The Economist Intelligence Agency. Oct 2007.
81
“Top 10 Ease of Doing Business Rankings: 2008.” World Bank, via Euromonitorinternational.com. 30 Oct 2008.
82
Delaware Intercorp, Oct 2008. http://www.delawareintercorp.com/t-WhyIncorporateinDelaware.aspx
83
“China Country Commerce Report.” New York: The Economist Intelligence Agency. Mar 2008.

37
Fees to Obtain Operational Permits in South Korea and China
In both South Korea and China, we will operate as branch offices. Fees to obtain permits to
establish a branch office and conduct business in South Korea are roughly $50 USD and
paperwork can be processed in a week. It will cost approximately $800 to $1,000 USD to
establish a branch office in China, and will likely take a month to process paperwork.

38
APPENDIX 6: EXPLANATION OF MARKET POTENTIAL CALCULATIONS
Please Note: Our analysis and calculations are largely based on 2006/07 school year data and
statistics. We used numbers from the 2006/07 school year to calculate our market potential for
different customer segments in South Korea and China. On November 18, 2008, some updated
numbers were released for the 2007/08 school year. However, the data is incomplete at this time
and some numbers needed to calculate market segments based on the 2007/08 school year
remain unreleased. It is for this reason that we have not adjusted our numbers to represent the
2007/08 school year. However, it would have little to no effect on the validity of our idea, as the
growth rate and forecasts we estimated for ensuing school years proved accurate, and all general
trends in the 2007/08 school year were positive and foreign student enrollment in the U.S.
continues to grow despite uncertain economic times.84
To ascertain market potential for our different market segments in different countries, we used
data from the 2007 Open Doors report to back into our estimates.
We will use South Korea as an example to explain our process. The following bullet-pointed data
is from the 2007 Open Doors report:
• Country Background: South Korea, 2007
In academic year 2006/07, there were 62,392 students from the South Korea studying in the
United States (up 6% from the previous year).
• Academic Level. The majority of the Korean students study at the undergraduate level. In
2006/07, their breakdown was as follows:
45.2% undergraduate
38.4% graduate students
7.2% other
9.2% OPT (Optional Practical Training)
• Historical trends. Total Korean enrollment in the U.S from school years 2000/01 – 2006/07.
Year # of Students from
Korea
% of Total Foreign
Students in US
2006/07 62,392 10.7%
2005/06 59,022 10.5%
2004/05 53,358 9.4%
2003/04 52,484 9.2%
2002/03 51,519 8.8%
2001/02 49,046 8.4%
2000/01 45,685 8.3%
84
McMurtrie, Beth. “Foreign Students Pour Back into the U.S.” The Chronicle of Higher Education. 17 Nov 2008.

39
Using these numbers, it is possible to calculate an average year-over-year growth rate to gauge
an approximate annual growth rate in the number of students enrolling in American schools.
Using the number of students from years 2000 through 2007, an average annual growth rate of
6.17% was calculated for US-bound Korean students.
Additionally, by using the total enrollment number and the percentage breakdown, the total
number of students by academic year can be calculated. For example, during the 2006/07
academic year, there were 62,392 Korean students studying in the U.S. Using the breakdown, the
number of students studying at each post-secondary academic level is provided below:
These numbers are next used to break down the numbers further to the number of students
enrolled in each academic year. For example, the 28,201 Korean undergraduate students can be
further broken down into the four academic college years: Freshman, Sophomore, Junior and
Senior. Simply dividing 28,201 by 4 is insufficient, however, because it fails to take into the
account the annual growth rate, i.e. there should be 6.17% more Juniors than Seniors, 6.17%
Sophomores than Juniors, and 6.17% more Freshmen than Sophomores. In other words, we are
estimating the further enrollment breakdown of the 28,201 college students into the 4 college
school years, while accounting for the average annual increase in the numbers of Korean
students enrolling in American colleges each new school year.
Arithmetically:
Seniors = 28,201
[1+(1.0617)+(1.0617)^2+(1+0.617)^3]
= 6,431
Juniors = # Seniors x (1.0617)
= 6,431 x 1.0617
= 6,827
Sophomores = # Juniors x (1.0617)
= 6,827 x 1.0617
= 7,248
Freshman = # Sophomores x (1.0617)
= 7,248 x 1.0617
= 7,695
28,201 = 6,431 + 6,827 + 7,248 + 7,695

40
At this point, we must acknowledge that while we are using the most current Open Doors data
available, it is now two school years behind. We must account for this time difference to gauge
current market potential. So, given that there were 7,695 Korean freshman enrolled in American
colleges in the 2006/07 school year, we can then calculate that from the 2006/07 high school
year, (7,695 x 1.0617), or 8,170, high school seniors in Korea likely enrolled as freshman in the
U.S. for the 2007/08 school year. We must do this calculation one more time. Given that there
were 8,170 Korean students enrolled as college freshman in the 2007/08 school year, we can
calculate that there are currently (8,170 x 1.0617), or 8,674, Korean students enrolled as
freshman in U.S. colleges for the 2008/09 school year.
Now that we are up to date, we can use this number to forecast how many current Korean high
school seniors will enroll as freshman in the U.S. for the 2009/10 school year. We assume that
(8,674 x 1.0617), or 9,209, Korean students will start college in the U.S. in the 2009/10 school
year.
Now we are ready to forecast our demand of Korean high school seniors who will be gearing up
to apply to enter college for the 2010/11 school year as we are launching our services in spring
2009. We can assume that (9,209 x 1.0617), or 9,777 Korean high school seniors will likely
enroll as freshman in U.S. colleges for the 2010/11 school year. Thus, 9,777 represents our high
school senior and consulting services market potential for spring 2009 in South Korea.
By the same token, during the 2009/10 school year, there will be10,380 high school juniors in
South Korea that will likely enroll in American colleges in two years. Therefore, our market
potential for the first seminar in spring 2009 for 11th
and 12th
graders is 9,777 + 10,380, which
equals 20,157.
Using this train of logic, we were able to calculate our varying market potentials for our different
customer segments and different services for each country in which we intend to operate.
Please note that China’s first year of operations is in fact the company’s Year 2 of operations.
So, to ascertain our initial market potentials in China, we had to multiply by the growth rate one
more time than we had to for South Korea’s first year of operations. China’s average annual
growth rate is 8.21%.
Please also note that for graduate students, we assumed that on average students are enrolled in
five-year graduate programs.
Please see the following page for two charts related to these calculations.

41
Continued from previous section: The following chart shows calculated foreign enrollment in the
U.S. for the 2006/07 school year and the corresponding derived market potential by
grade/application group for launch years in South Korea (2009/10) and China (2010/11).
This chart shows market potential for our two different services broken down by segment group
for South Korea and China in their respective launch years.

42
EXHIBIT 1: Basic Five Hour Seminar Agenda
EXHIBIT 2: Consulting Services Package Options & Rates

43
EXHIBIT 3: Top 20 Countries of Origin for Foreign Students Enrolled in U.S. Institutions
of Higher Education
Source: Open Doors Report on International Educational Exchange, 2007

44
EXHIBIT 4: Years 1 & 2 Launch and Operations Timeline

45
EXHIBIT 4: Years 1 & 2 Launch and Operations Timeline, Cont.
EXHIBIT 5: Five-Year Growth Strategy

46
EXHIBIT 6: Demographic and Economic Data
Sources: Euromonitor International: http://www.euromonitor.com/gmid/
WorldAtlas.com via Times World Atlases: http://www.worldatlas.com/
Bureau of Economic Analysis: http://www.bea.gov/index.htm

47
EXHIBIT 7: Target High Schools in Seoul and Pusan

48
EXHIBIT 8A: The Competitive Landscape in China – Comparison of Services
EXHIBIT 8B: The Competitive Landscape in China – Price Comparisons

49
EXHIBIT 9: Five-Year Consolidated Profit & Loss Statement

51
General Assumptions
Please Note: HK = Hong Kong
Spore = Singapore
L.A. = Latin America

52
Seminar Series Assumptions: Market Size & Penetration

53
Seminar Assumptions, Cont.: Fees to Attend Seminars (including annual inflation) and
Annual Seminar Revenues

54
Seminar Assumptions, Cont.: Seminar Operational Costs

55
Consulting Service Assumptions, Korea and China

56
Consulting Service Assumptions, Korea and China continued:

57
Consulting Service Assumptions, Hong Kong, Singapore, India and Latin America

58
Consulting Service Assumptions, Hong Kong, Singapore, India and Latin America, Cont.

Business Plan_Minkyung_Lowe

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