PHASE 4: INDIVIDUAL PROJECT KENNETH C HOLMES MGMT600-1502A-01 PROFESSOR HENRIETTA OKORO MAY 4, 2015 PENETRATION IN THE SCHOOL LUNCH MARKET CORRELATIONS Introduction: I have been charged with proving and disproving assumptions based on correlations made based on the article “Closing the digital divide: Internet Subsidies in Public Schools”, after a brainstorming session at WidgeCorp where the discussion involved penetrating the school lunch market, school lunch subsidies, Internet subsidies, and internet target marketing. I must also determine the strengths of the correlations of the assumptions, and why. This document discloses my findings. Brainstorming: Brainstorming is a highly effective technique used to share ideas (both outlandish and bizarre), techniques, and experiences about a topic, in a supportive environment. The sharing of thoughts and ideas creates: unique and innovative ideas, is the building block for new ideas based on existing ideas, encourages the sharing of opinions and feedback, and determines solutions about a topic based on those ideas. Analysis, discussion, or criticisms are allowed when the brainstorming session is over and the evaluation process begins. The process creates opportunities for collaboration, supports team work, helps develop strong team building skills, enables participants to add value to the team and the organization, and promotes the success and growth of the group and the organization. The result, it helps build better business relationships and customer service. It can be performed individually or as a group (N.A., 4 Reasons Brainstorming in Business is Important, 2011). Article summary: The article states that prior to the establishment of the E-Rate program, schools could only count on the budget they had for computers to implement computer usage in their school. This meant that wealthier schools had the advantage of higher budgets to purchase and implement computers and internet for use in the classroom, while poorer schools had minimal implementation of computers and internet for use in the classroom. The institution of the E-rate program changed that. The E-rate program funds can be spent on all commercially available telecommunications services, Internet services, and internal communications, but not for purchasing computers for the schools. The funding is based on the number of students in each school that qualified for the national school lunch program. With these parameters, poorer schools were able to acquire the equipment and services necessary to catch up to the wealthier schools, and in the process close the divide between poorer and wealthier schools (Goolsbee, 2003). The Healthier Lunch Program: The Healthier Lunch Program introduced in 2004 is an initiative to encourage K-12 students to develop healthier eating habits by consuming: dairy, whole grains, fruits, and vegetable. It is based on the assumption that when young people participate in growing, sharing fresh and healthy meals, and learn about eating healthy in the classroom, they will likely develop lifelong healthy eating habits and values for a healthier life. The initiative not only encourages a healthy diet, it also encourages proper exercise and healthier, lifelong habits (N.A., About the School Lunch Inititative, 2013). School lunch marketing ideas for WidgeCorp: After doing some brainstorming of my own, I came up with a few ideas. WidgeCorp could use their healthy snacks and cold beverages to satisfy the Healthier Lunch Program, and then they could use Internet advertising to create positive publicity for WidgeCorp satisfying the Initiative. In addition, WidgeCorp could promote their healthy snacks and cold beverages for consumption at all school functions including: teacher meeting, school board meeting, student/parent and teacher gatherings, and dances, in the process providing healthy snacks and non-alcoholic beverages, and creating positive publicity for WidgeCorp. WidgeCorp could use specific products from their snack food and cold beverage line to address specific school markets. Starting with their international and ethnic line of products, WidgeCorp could address poorer schools with predominantly Black and Hispanic students. For wealthier school districts, WidgeCorp could apply their traditional and Asian flavor snacks to address the predominantly White and Asian students. I would suggest WidgeCorp apply for both the Healthier Lunch Program, and the National School Lunch Program to obtain the funding for the products. This process would provide positive publicity for WidgeCorp, and could potentially create new clients. Correlation of variables: The relationship between two variables tells us the correlation of the variables, but does not indicate cause and effect, that one causes the other, and you cannot make assumptions. To determine the real correlation relationship we need to determine cause and effect, and this is commonly attributed to a third variable that influences the other two variables including: the resources available, advertising, the nation’s economy, family economic status, etc. There are two types of relationships: correlation relationships and casual relationships. A correlation relationship just tells us that two variables perform in sync with each other. For example: WidgeCorp adding snack products with ethnic ingredients and flavors does not guarantee sales of the ethnic snacks, because it does not determine whether one causes the other; WidgeCorp adding a line of cold beverages does not guarantee the sales of the their cold beverages, because it does not determine whether one causes the other. While the casual relationship has no correlation, meaning there is no connection between the two variables. For example: the sales of WidgeCorp’s cold beverage products and the sales of DVD players, there is no correlation. It is essential to understand the relationship between variables to come to the right conclusions (Trochim, 2006). Correlations come in three forms, positive, negative (inverse), and minimal correlations. The positive correlation states that an increase in one variable causes an increase in the other variable, and this can be a positive linear relationship where both variable increases are proportional. For example: the introduction of WidgeCorp’s cold beverage line, and a national advertising campaign of the cold beverage line. The negative or inverse correlation states an increase in one variable causes a decrease in the other variable, and this can be a negative linear relationship where both variable changes are proportional. For example: sales of the cold beverage line, and an increase in price of the product. Lastly, no relationship (minimal or neutral), states there is no correlation between variables, that one variable does not affect the other. For example: WidgeCorps snack food line, and the sales of popcorn at movie theaters (Kalla, 2011). Correlation ranges: Correlations are expressed in terms of range: -1, 0, and +1, which are called the correlation coefficient. An -1 coefficient is called a perfect negative, meaning an increase in one variable always predicts a decrease in the other, and values between -1 and zero indicate a lesser degree of negative correlation. A +1 coefficient is called a perfect positive, meaning an increase or decrease in one variable always predicts the same directional change for the second variable, and values between 0 and +1 indicate a lesser degree of correlation. A minimal (zero) coefficient is called a perfect zero, meaning one variable has no effect on the other variable, and the variables have no fluctuation toward positive of negative (Rouse, 2013). Correlation of variables chart: Based on sample data file (N.A., Sample Data File, 2004). CHART 1 E-RATE AND SCHOOL LUNCH PROGRAM VARIABLE CORRELATIONS Variable A Variable B The E-Rate Program School budgets alone Correlation Schools connected to the internet Increasing schools investment in internet technology Computers and internet connections in Teachers use of computers in the the classroom classroom Positive Positive The E-Rate program and classroom internet connections Internet subsidies Internet subsides Impact on student achievement based on Stanford Achievement test scores The impact on the richest school districts The impact on the poorest school districts Minimal Internet subsides Federal and state education-related programs The impact on rural schools The number of students whose family income falls below the poverty level Minimal Positive Minimal Positive Positive Variable assumptions: The following is my list of assumptions based on variables from Chart 1, starting from the top: Variable A: The E-Rate Program. Variable B: Schools connected to the Internet. The assumption: The E-Rate Program has a direct impact on the number of schools connected to the internet. Variable A: The school budgets alone. Variable B: Increasing schools investment in Internet technology. The assumption: Schools budgets alone have a direct impact on increasing schools investment in Internet technology. Variable A: Computers and Internet connections in the classroom. Variable B: Teachers use of computers in the classroom. The assumption: Computers and Internet connections in the classroom have a direct impact on teacher’s use of computers in the classroom. Variable A: The E-Rate Program and classroom Internet connections. Variable B: Impact on student achievement based on Stanford Achievement test scores. The assumption: The E-Rate Program and classroom Internet connections have a direct impact on student achievement based on Stanford Achievement test scores. Variable A: Internet subsidies. Variable B: The impact on the richest school districts. The assumption: Internet subsidies have a direct impact on the richest school districts. Variable A: Internet subsidies. Variable B: The impact on the poorest school districts. The assumption: Internet subsidies have a direct impact on the poorest school districts. Variable A: Internet subsidies. Variable B: The impact on rural schools. The assumption: Internet subsides have a direct impact on rural schools. Variable A: Federal and State education-related programs. Variable B: The number of students whose family income falls below the poverty level. The assumption: Federal and State education-related programs have a direct impact on the number of students whose family income falls below the poverty level. Correlation results: I will start from the top with assumptions based on variable data from Chart 1. The ERate Program has a direct impact on the number of Schools connected to the internet has a positive (0.66) correlation, because prior to the E-Rate Program only 55 percent of California’s schools had at least one classroom with internet access, but since 1998 the poorest schools have more computers with internet access than the wealthier schools, and a 66 percent increase in computer and internet connections. School budgets alone have a direct impact on increasing schools investment in internet technology has a positive (0.34) correlation, because with only the school budget to work with, only 55 percent of schools had a least one classroom with internet access, and the E-Rate Program created an increase of 66 percent, which would have left a gap of 34 percent. Computers and internet connections in the classroom have a direct impact on teachers use of computers in the classroom has a minimal (zero) correlation, because only onethird of teachers were comfortable or prepared to use computers and the internet in the classroom, while two-thirds of teachers did not apply the technology in the classroom, meaning the technology was not applied enough to obtain accurate results regarding its success in the classroom. The E-Rate Program along with classroom internet connections have a direct impact on student achievement based on Stanford Achievement test scores has a minimal (zero) correlation, because only one-third of teachers were prepared or comfortable using computers and the internet, which indicates computers and the internet were not used sufficiently in the classroom to show any real results, and the Stanford Achievement test scores proved there were no measureable effect on the test scores (Goolsbee, 2003). Internet subsidies have a direct impact on the richest school districts with a predominantly White and Asian student population has a positive (0.15) correlation, because they only had a 10 to 20 percent increase in computer and internet access, while the largest percentage of subsides went to poorer schools with more than 50 percent of the students eligible for federal student lunch program. Internet subsidies have a direct impact on the poorest schools districts with a predominantly Black and Hispanic student population has a positive (0.85) correlation, because 80 to 90 percent of subsidies went to poorer schools with more than 50 percent of the students eligible for the federal student lunch program. Internet subsidies have a direct impact on rural schools has a minimal (zero) correlation, because rural schools have a dramatically lower percentage of responses to the internet subsidy than urban schools, and there are no results from this sector to base any findings. Federal and State education-related programs have a direct impact on the number of students whose family incomes fall below the poverty level has a positive (0.9) correlation because those programs are specifically designed to help those families, and are not geared toward higher income families, but not all necessarily apply (Goolsbee, 2003). Conclusion: My finding indicate that prior to the E-rate Program, school budgets alone had the largest impact on wealthier schools with predominantly White and Asian students, and the smallest impact on poorer schools with predominantly Black and Hispanic students. This put wealthier school districts in a much better position to implement computer technology than poorer schools. Since the introduction of the E-Rate Program the number of internet connected classrooms has more than doubled, with its largest impact on poorer schools. Unfortunately rural communities have a much lower response to internet subsidies, so the impact is not felt there, and cannot be tested until they increase their use of computers and internet. It was expected that computer with internet implementation would increase the Stanford Achievement Test scores, but this proved false, possibly because only one-third of teachers were comfortable with and prepared to implement computers and the internet into the classroom. The true results cannot be accurately tested until computers and internet are part of the daily classroom curriculum. Federal and State education related programs have a huge impact on students whose families income falls below the poverty level, because those programs are designed to benefit those families, and they are designed to provide those families the boost they need to compete in the modern, competitive world. In conclusion, school budgets alone only benefit more affluent schools districts. Poorer school districts need the E-Rate subsidy to provide them the technologies necessary to compete with wealthier school districts, and acquire the technologies and skills necessary to compete in the marketplace after graduation. The biggest issue I see now is the percentage of computer and internet use in the classroom; it is essential for teachers to be comfortable with and prepared to implement these technologies in the classroom. Regarding the Stanford Achievement Test, computer and internet education may not have an effect on the test score, but it will have a large impact on a student’s ability to learn the necessary skills to compete and survive in the real world. REFERENCES Goolsbee, A. D. (2003). Closing the digital divide: Internet subsidies in public schools, Capital Ideas. Retrieved from University of Chicago Booth School of Business Website: www.chicagobooth.edu/capideas/summer03/digitaldivide.html Kalla, S. (2011, July 26). Relationship Between Variables. Retrieved from https://explorable.com/relationship-between-variables N.A. (2004). Sample Data File. Retrieved from www.ctuonline.edu/phase 4 individual project assignment details/sample data N.A. (2011, March 3). 4 Reasons Brainstorming in Business is Important. Retrieved from www.trainingtampa.com/2011/03/03/4-reasons-brainstorming-in... N.A. (2013). About the School Lunch Inititative. Retrieved from The School Lunch Inititative: www.schoollunchinitiative.org Rouse, M. (2013, February). Negative Correlation: Definition. Retrieved from www.whatis.techtarget.com/definition/negative-correlation Trochim, W. M. (2006, October 20). Types of Relationships. Retrieved from www.socialresearchmethods.net/kb/relation.php