S w 907B12 ST. CLEMENT'S SCHOOL Jeana Poon, Kelly McKenna, and Nooreen Bhanji wrote this case under the supervision of Professor Mary Heisz solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail [email protected] Copyright © 2007, Ivey Management Services Version: (A) 2007-10-30 INTRODUCTION Patricia Parisi twirled her pink pen between her fingers as she peered out of her office window onto St. Clement’s Avenue. As principal of St. Clement’s School (SCS) for the last nine years, Parisi had numerous daily responsibilities and decisions to make regarding the governance of the staff, programs, facilities and the 12 grades of students currently attending the all-girls private school. It was November 2, 2004, and today her most pressing business was the recommendation to the SCS board of governors concerning whether to expand the school’s facility and operations. SCS had recently purchased the last house on the south block of St. Clement’s Avenue and had successfully attained the property rezoning required to build the proposed expansion of the school building. Parisi had a lot to think about as she considered the possible transition to a larger facility for the school. What would be the best way to fund an expansion? Would she be able to operate a bigger school within the approved budget without increasing the school’s enrollment? Most importantly, would SCS be able to maintain its distinctive culture with a larger operation? PRIVATE SCHOOL EDUCATION IN ONTARIO1 Private schooling was a centuries-old form of education in Canada, with some private education institutions as old as the country itself. Ontario offered both single-sex and co-educational private schools with programs for elementary- and secondary-level students. There were also private “combined schools,” offering both elementary and secondary education in single-sex or co-educational environments. The total number of private schools in Ontario alone jumped to 828 in 2003, up from 551 a decade prior. Schools ranged in size from as few as 24 students up to 1,500 students. Academically defined schools had an average of 130 to 500 students, while religiously defined schools averaged 150 to 300 in attendance. .

1. S w
907B12
ST. CLEMENT'S SCHOOL
Jeana Poon, Kelly McKenna, and Nooreen Bhanji wrote this
case under the supervision of Professor Mary Heisz solely to
provide
material for class discussion. The authors do not intend to
illustrate either effective or ineffective handling of a managerial
situation.
The authors may have disguised certain names and other
identifying information to protect confidentiality.
Ivey Management Services prohibits any form of reproduction,
storage or transmittal without its written permission.
Reproduction of
this material is not covered under authorization by any
reproduction rights organization. To order copies or request
permission to
reproduce materials, contact Ivey Publishing, Ivey Management
Services, c/o Richard Ivey School of Business, The University
of
Western Ontario, London, Ontario, Canada, N6A 3K7; phone
(519) 661-3208; fax (519) 661-3882; e-mail [email protected]
Copyright © 2007, Ivey Management Services Version: (A)

2. 2007-10-30
INTRODUCTION
Patricia Parisi twirled her pink pen between her fingers as she
peered out of her office window onto St.
Clement’s Avenue. As principal of St. Clement’s School (SCS)
for the last nine years, Parisi had numerous
daily responsibilities and decisions to make regarding the
governance of the staff, programs, facilities and
the 12 grades of students currently attending the all-girls
private school. It was November 2, 2004, and
today her most pressing business was the recommendation to the
SCS board of governors concerning
whether to expand the school’s facility and operations. SCS had
recently purchased the last house on the
south block of St. Clement’s Avenue and had successfully
attained the property rezoning required to build
the proposed expansion of the school building. Parisi had a lot
to think about as she considered the possible
transition to a larger facility for the school. What would be the
best way to fund an expansion? Would she
be able to operate a bigger school within the approved budget
without increasing the school’s enrollment?
Most importantly, would SCS be able to maintain its distinctive
culture with a larger operation?
PRIVATE SCHOOL EDUCATION IN ONTARIO1
Private schooling was a centuries-old form of education in
Canada, with some private education
institutions as old as the country itself. Ontario offered both
single-sex and co-educational private schools

3. with programs for elementary- and secondary-level students.
There were also private “combined schools,”
offering both elementary and secondary education in single-sex
or co-educational environments. The total
number of private schools in Ontario alone jumped to 828 in
2003, up from 551 a decade prior. Schools
ranged in size from as few as 24 students up to 1,500 students.
Academically defined schools had an
average of 130 to 500 students, while religiously defined
schools averaged 150 to 300 in attendance.
1 All statistics in this section are taken from Derek J. Allison et
al., Ontario Private Schools: Who Chooses Them and Why?
The Fraser Institute, Vancouver, May 2007. Available at
http://www.fraserinstitute.ca/shared/readmore.asp?sNav=pb&id
=911, accessed May 20, 2007.
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ANDERSON in 2019.
Page 2 9B07B012
Whether a school was academically defined or a religiously
defined, “the provision of superior education”
was the universal mission of every Ontario private institution.
Both parents and students were receptive to
this credo, as private school attendance increased to make up
5.3 per cent of the Ontario student population

4. in 2003, up from less than two per cent in 1960. The rising
popularity of private school education,
competitiveness between institutions and other expenses often
led to annual increases in tuition at a private
school such as SCS. Exhibit 1 provides details of SCS’s annual
tuition.
A survey by the Fraser Institute cited the dedication of teachers,
an emphasis on academic quality and
safety as the three primary reasons parents and students
migrated to a private school environment.2 Another
significant benefit was the smaller class size, which offered
individualized attention and a “nurturing,
supportive” environment. However, parents had to weigh these
expected benefits against the annual
financial costs of private school enrollment and activities.
HISTORY OF SCS
Founded in 1901, by Canon Thomas Wesley Powell, SCS began
providing education to 15 boys and girls
in the parish hall of St. Clement’s Church. Enrollment in the
school increased over the years and soon
outgrew the parish hall, at which time classes were relocated to
a nearby farmhouse at 21 St. Clement’s
Avenue. In 1932, SCS furthered transitioned into an all-girls
educational institution. During the 1970s, a
difficult decision faced SCS. The school could move to a
suburban location and expand its facilities, or
remain a small, urban school whose campus was its community.
The latter option was overwhelmingly
supported by the SCS community, and a new building was
erected in 1970 in the same location — the first
of what would become a series of building expansions and
improvements over the next quarter century. An

5. aerial view of the school can be seen in Exhibit 2.
The mission of St. Clement’s School remained essentially
unchanged since the school’s inception: to
develop women of character by encouraging academic
excellence, self-confidence, leadership and
independent thinking in an enriching, supportive environment.
Exhibit 3 lists SCS’s objectives.
Parisi reported to SCS’s board of governors, which was
composed of alumnae, parents of current students,
parents of former students and other members of the SCS
community. Although Parisi was responsible for
the day-to-day running of the school, the board was responsible
for strategic planning and providing
direction and support for Parisi. As well, the board was
responsible for the hiring and evaluation of the
principal of the school.
THE SCS OFFERING
An Enriched Academic Experience
SCS was recognized for its rigorous academics and consistently
ranked in the top of school academic
ratings. SCS offered a variety of academically enriched
opportunities for students at all grade levels. In
addition, top-of-the-line teaching tools, including science
equipment, sports equipment and computers,
added to the learning environment.
The recently introduced Advanced Placement (AP) Program had
become a source of SCS pride. AP
courses, the equivalent of first-year university courses, offered
enrichment, flexibility, challenge, university

6. 2 Ibid.
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ANDERSON in 2019.
Page 3 9B07B012
preparation and international recognition. SCS had one of the
most extensive AP programs in Ontario and
the largest AP program of any girls’ school in Canada.
Extracurricular Opportunities
Despite its small size, SCS was able to offer a range of
extracurricular opportunities. In a tradition initiated
at the school’s inception, upon entrance to the school, all
students were randomly divided into one of four
“houses”: Stuart, Tudor, Windsor, or York. Students
accumulated house points for participation in
academic and extracurricular activities. At the end of the year,
the house with the most points won the
House Cup.
The arts program at SCS included plays performed by students
as an annual competition between the
houses, as well as an annual co-production with Crescent School
(Crescent), a neighboring all-boys private
school. Due to the auditorium’s limited capacity, the scale of

7. the productions that SCS could host was
limited, and therefore the practices and final performance of the
co-productions usually took place at
Crescent.
The diverse music program included choirs, a concert band, a
jazz ensemble and chamber strings. These
music groups competed in many music festivals, including the
Kiwanis Music Festival. Scheduling
conflicts often arose because the auditorium was the only room
where these groups could rehearse. As a
result, groups were often forced to hold practices in the
cramped backstage area for lack of a better space.
SCS offered a number of competitive sports teams that
competed with other schools in the Canadian
Independent Schools Association. To make up for the lack of
sports facilities on site, SCS teams often
practiced at the nearby Eglinton and Sherwood parks, as well as
at the St. Clement’s Church tennis courts.
Because there was only one gym on the campus, practices were
infrequent and often scheduled at
inconvenient times for coaches and players alike. As well, when
SCS hosted a game, the carpeted gym was
the subject of much jest and frustration from competing schools,
much to the embarrassment of both the
staff and students.
SCS was also a member of some internationally recognized
organizations. It was the first North American
all-girls school to be accepted as a member of the Round
Square, a worldwide association of schools that
share a commitment, beyond academic excellence, to personal
development and responsibility through
service, challenge, adventure and international understanding.
Round Square included more than 40

8. schools from six continents and provided a number of
opportunities for SCS’s students, including
international exchanges, service projects in developing
countries and global conferences. SCS also
participated in The Duke of Edinburgh’s Award program. This
globally recognized program provided
students around the world with the opportunity to earn gold,
silver and bronze awards through community
service, physical fitness, development of specific skills and
outdoor expeditions. SCS destinations for the
program included cycling in Southern Ontario, Holland and
Sicily; dog sledding in Northern Ontario;
canoeing in Algonquin Park; and, hiking the Bruce Trail.
Family Atmosphere
A tremendous sense of spirit infused SCS, thanks in part to the
school’s small size of approximately 440
students enrolled in grades 1 through 12. As well, the SCS
house system promoted school spirit, good
sportsmanship and active participation in school activities
throughout the year. Opportunities for
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ANDERSON in 2019.
Page 4 9B07B012
interactions between the grades were plentiful, including

9. reading buddies and the Big Sister/Little Sister
program. As well, SCS used a prefect system, assigning select
students from grades 11 and 12 to be
mentors for students in a class between grades 1 and 10. Student
clubs and student council also permitted
interactions between students in the different grades. In her
graduating year, each student took special
responsibility for a particular area of school life.
The family atmosphere often became a little too close for
comfort, however, as a result of the school’s
small facilities and its narrow hallways. The SCS board of
governors estimated the average square footage
per student ratio at Ontario private schools to be 160 square feet
per student; SCS only offered half that
amount of space at 80 square feet per student. Small lockers
also played a role in the crowding as
backpacks and personal articles were often strewn around the
hallways, much to the dismay of the Student
Life Coordinator.
The Alumnae Network
The Alumnae Association provided a link between the students
of today and the students of yesterday. The
association kept records of alumnae’s whereabouts and
activities and helped them to keep in touch with
each other. Not surprisingly, the Alumnae Association made up
a large percentage of annual fundraising.
Neighboring Communities
Relationships with the surrounding neighborhood were also
valued. Neighbors were sent monthly

10. newsletters along with the rest of the SCS community and the
St. Clement’s Church facilities were used by
the school regularly for services and ceremonies.
OTHER MOTIVATIONS FOR CHANGE
Competition
Toronto private schools with a similar offering to SCS included
Havergal College, Bishop Strachan School
and Branksome Hall. (Exhibit 4 provides a comparison of
Toronto’s four all-girl private schools.) These
private, all-girls schools were equally equipped with superior
elementary and secondary programs, low
student-to-teacher ratios, athletic teams, a house system,
leadership opportunities for students and a
positive reputation in the academic community. However, each
of these competitor schools had enrollment
that ranged from 800 to almost 1,000 students, almost twice the
size of the SCS population. Another stark
difference between these schools and SCS was their widespread
physical facilities. All three schools sat on
up to 13 acres of land with extensive boarding, schooling and
athletic facilities. Although SCS did not see
the need to board students, Parisi was concerned that many girls
and their parents may have chosen another
school over SCS due SCS’s cramped school building and lack of
such physical amenities as a performance
theater and an up-to-date athletic center.
Student Input
In November 2003, SCS students were consulted through
brainstorming sessions and group voting

11. assemblies to provide ideas for the use of space in an expanded
school. Answers ranged from larger
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classrooms to additional art facilities, but wider hallways came
in overwhelmingly as the number-one
choice. Exhibit 5 provides a list of the student’s top 10 choices
for a bigger school.
THE PROPOSED EXPANSION
Currently, the school’s building area spanned just over 40,000
square feet and included a carpeted gym, a
library, an auditorium and a lunchroom. In addition to the
comparative lack of physical facilities, a limited
amount of road space was available for parents to pick up and
drop off their children. Because SCS did not
have its own parking lot or a dedicated pick-up and drop-off
area, cars would frequently be parked or
stopped on the narrow St. Clement’s Avenue, causing traffic
congestion for parents and other drivers.
In anticipation of the current space shortage, SCS purchased
one of the neighboring houses, located on the
south side of St. Clement’s Avenue, west of the school building,

12. in 1969 for $80,000. Since that date, SCS
purchased every house on the south block as it came up for sale.
On November 13, 2003, SCS purchased
the last of the neighboring houses for $825,000. The school
property was surrounded by residential
housing, a parking lot, Orange Hall (a small building owned by
a religious organization) and a Puma retail
outlet. Parisi knew that any expansion would have to consider
any concerns of these neighbors.
The proposed expansion would add approximately 44,000
square feet (4,100 square meters) to the building
area and would cost $11,500,000, including $10,000,000 for
construction and $1,500,000 for other costs
such as rezoning, design, architecture, permits. Now that the
last residential house on the south block to the
west of the building had been purchased, the SCS campus could
be effectively doubled. With increased
space, facilities would be either added or updated in order to
provide students with a greater variety of
educational programs, up-to-date technology and an overall
better learning environment. Additional
investments, such as new gym equipment, musical instruments
and computers, would cost approximately
$100,000. The expanded building would require twice the
current amount of annual maintenance costs of
$100,000 and would be depreciated using the straight-line
method over 35 years. Exhibit 6 provides a full
list of the new facilities available with the expansion.
OTHER CONSIDERATIONS
The decision to expand the facilities at SCS brought with it a
number of factors affecting current and future
operations.

13. Funding
The Bigger Blazer Campaign was instituted in January 2004, led
by volunteer faculty, parents and affiliates
of the school who spearheaded the fundraising efforts for the
potential project. The goal of the campaign
was to ensure that any expansion did not disrupt the school’s
tightly knit atmosphere and its image as a
competitively priced private school. Parisi estimated that over
the upcoming two-year period, the campaign
might be capable of fundraising between $5 million and $9
million through donations from staff, alumnae,
board members, parents and friends of SCS. Parisi felt that a
campaign of such a large magnitude would
require up to $200,000 for marketing and approximately
$25,000 of her own time. However, she wondered
what the most effective use of these funds would be and
whether any other fundraising avenues should be
considered.
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ANDERSON in 2019.
Page 6 9B07B012
Parisi was also considering securing a loan to cover financial
shortages and felt that a borrowing rate of six

14. per cent would be likely. She wondered what the impact of
significant borrowing would be as she knew the
board would not be pleased with a heavy burden for future
generations to bear.
Student Numbers and Tuition
If neither the Bigger Blazer Campaign nor borrowing yielded
sufficient funds, other options would have to
be considered. Parisi knew that an increase in either student
enrollment or tuition fees would help to cover
the cost of the expansion; however, she would have to receive
approval from the board for either of these
actions. She estimated that a gradual increase of even 100
students over two years would be an effective
means to fund the expansion. Parisi knew that increasing the
number of students did not come without a
cost and that she would have to increase her various items in
inventory by about $10,000. As well, she
estimated that the cost of various academic and other supplies
was $2,000 per student per year.
Although Parisi acknowledged that enrolling a break-even
number of additional students to pay for
expansions had been a successful undertaking for other schools,
she and the faculty were strongly opposed
to either an increase in enrollment or tuition.
Teachers
If the student population were to increase in order to cover
expansion costs, it would be imperative to
maintain the same student-to-teacher ratio in order to remain
competitive; therefore, hiring additional staff

15. to join the SCS faculty team would be required. The average
salary in 2004 for an Ontario teacher with six
years of education was approximately $42,200 plus benefits of
17 per cent.3 Salaries and other costs were
likely to increase in the next few years at the rate of three per
cent per year and would likely be offset by a
similar increase in tuition levels. Parisi knew that any hiring
decision would have to take into account the
importance of upholding the school’s strong teaching reputation
and the time required to interview and
integrate a new instructor.
CONCLUSION
With the increasing popularity of private education and the
ongoing competition with other all-girls
schools, Parisi knew that she had to reach a decision quickly on
whether to support the expansion and how
best to fund it. She knew that SCS was known for its superior
offering of education and extra-curricular
activities and she did not want its current “lacking” facilities to
overshadow the true SCS experience. As
well, many of the neighboring all-girls private schools had
recently made expansions to their facilities or
were in the process of planning for changes. Parisi was unsure
what the tax implications of the project
would be, if any, given that SCS was a non-profit organization.
Most importantly, she wondered how the
students, faculty, parents, alumnae and the community would
react to her decision. Parisi picked up her
pink pen and began to consider the options before her.
3 “Average Teacher Salaries by Province,” Education Canada

16. Network. Available at http://resource.educationcanada.com/
salaries.html, accessed July 3, 2007.
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ANDERSON in 2019.
Page 7 9B07B012
Exhibit 1
ST. CLEMENT’S SCHOOL ANNUAL TUITION PER
STUDENT
Year Tuition
2004 $16,475
2003 $15,750
2002 $14,000
2001 $12,000
2000 $11,850
1999 $11,000
Exhibit 2
AERIAL MAP OF ST. CLEMENT’S SCHOOL

17. St. Clement’s School
Neighbouring Houses
Puma Store
St. Cle
ment’s
Avenu
e
Y
onge
S
treet
School Playground
Public Parking Lot
St. Clement’s School
Neighbouring Houses
Puma Store
St. Cle
ment’s
Avenu
e
Y
onge

18. S
treet
School Playground
Public Parking Lot
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Page 8 9B07B012
Exhibit 3
LIST OF ST. CLEMENT’S SCHOOL OBJECTIVES
St. Clement’s School is committed to meeting the following key
objectives for its students:
• To attract talented and motivated girls from all backgrounds;
• To offer a rich and demanding curriculum;
• To promote character, mutual understanding, respect, and a
commitment to others.
In support of these ongoing objectives, St. Clement’s School
recognizes that it must:
• Appoint and support a superior staff;

19. • Provide exemplary board and administrative leadership;
• Foster open communication and relations with its parent
community;
• Stimulate and build strong alumnae programs;
• Cultivate excellent relations with the community-at-large.
Exhibit 4
2004 TORONTO ALL-GIRL PRIVATE SCHOOL STATISTICS
St. Clement’s
School
Havergal
College
Bishop
Strachan School
Branksome
Hall
Enrollment 440 918 875 885
Grade Levels 1 to 12 K to 12 K to 12 K to 12
Average Class Size 16 18 19 20
Boarding No Yes Yes Yes
Tuition (Day
Students)
$16,475 $16,516 $17,942 $18,915
Student-Teacher
Ratio

20. 8:1 9:1 10:1 15:1
Acceptance Rate 54% 53% 50% n/a
Note: Data for tuition is based on 2007 figures and adjusted to
2004, based on an average annual growth of 8.7%.
Sources: http://en.wikipedia.org/wiki/Havergal_College,
http://en.wikipedia.org/wiki/Bishop_Strachan_School,
http://en.wikipedia.org/wiki/Branksome_Hall, all accessed at
July 5, 2007. http://www.petersons.com/pschools/code/inst
VC.asp?inunid=1994&sponsor=1,
http://www.petersons.com/pschools/code/instVC.asp?inunid=10
24&sponsor=1,
http://www.petersons.com/pschools/code/instVC.asp?inunid=31
0&sponsor=1, all accessed at July 15, 2007.
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Page 9 9B07B012
Exhibit 5
STUDENTS’ 10 TOP CHOICES FOR A BIGGER SCHOOL

21. #1 Wider halls
#2 More and bigger lockers
#3 More storage space
#4 Proper dedicated classrooms for all academic subjects
#5 Dedicated spaces for all of the arts
#6 A bigger lunchroom
#7 A bigger library
#8 A performance space/lecture hall
#9 A second gym/fitness area
#10 More meeting/lounging/quiet spaces for students
Exhibit 6
PROPOSED NEW FACILITIES
• Second gymnasium with seating and change rooms
• Multi-purpose space for lectures, drama, music and dance
performances, public speaking and
debating
• Visual arts space

22. • Library and resource center
• Dance and fitness facilities with sprung floor
• Drama studio
• Sound-proof music room
• Additional classrooms
• Science labs
• Media lab
• Design and technology lab
• Expanded lunchroom
• New barrier-free main entrance with adjoining reception and
general office
• Staff work rooms
• Second elevator
• Expanded school store
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ANDERSON in 2019.
Final Term Exam ANLY 506 Late Summer - 2 hours 50 pts
Last Name _____________ First Name_____________
Course (circle) 51 / 52
Instructions: Please Read!
· Phones are not allowed during the exam
· Materials: You can use any course material in digital or
printed form (lectures, books). All code must be executed in R.
You are NOT allowed to browse kaggle, medium blogs...
· Code: All answers that require code will be marked with

23. *CODE*. Note - they will not be graded if code is not provided.
· Graphs: All answers that require a graph will be marked with
*GRAPH*. For submission: use 1) knitted Markdown or 2)
Word Document with all graphs inserted, please clearly identify
a question number for each graph.
· Code: All code should be written in one file (R script or
Rmarkdown), make sure each code has a clear identification for
which question it was used (e.g. #question 1)
· Submission: 1) R code (R script or Rmarkdown), 2) Knitted
HTML or PDF or a Word Document with inserted figures, 3)
exam with clearly written answers [if I cannot read, I cannot
grade]
#### Question 1
Name three differences between Hierarchical and Partitional (K-
Means) Clusters:
1.
2.
3.
#### Question 2 *CODE*
b <- c(3,17,10,5)
a <- c(5, 14, 7, 8)
Find Euclidean and Manhattan Distance between two vectors
Euclidean:
Manhattan:
#### Question 3 *CODE* and *GRAPH*

24. Download dataset late_summer.csv
Perform Elbow method and identify the optimal number of
clusters. Describe how you decided what is the optimal number
Answer:
#### Question 4 *CODE* and *GRAPH*
Use the same data set from the question 3 late_summer.csv
Run cluster analysis with the optimal number of clusters you
have established in the question 3. Create a graph.
#### Question 5 *CODE* and *GRAPH*
Use iris dataset. Perform agglomerative clustering agnes using
euclidean distance and complete linkage method. Plot
Dendrogram and report the agglomerative coefficients
Answer: Agglomerative Coefficient =
#### Question 6
Complete the correct statements about clusters:
1. Intra-cluster distance must be
________________________________
2. Inter-cluster distance must be
________________________________
#### Question 7
Which clustering method computes the dissimilarity based the
largest distance between two clusters?
Answer:

25. #### Question 8 *CODE*
Use iris data. Run K-Means with 3 clusters. Provide the size of
each of the three clusters. Note: scale data
Answer:
#### Question 9 *CODE*
Use iris data. Calculate eigen values and vectors.
Select the largest eigenvalue.
Answer:
#### Question 10 *CODE* and *GRAPH*
Create a biplot of the iris pca results.
In which component Sepal.Length is negative?
Answer: