Shulin Chen, Mitch Yerk
Professor Liz Holtzinger-Jennings
ENGL 015A
A Successful Enterprise: Penn State
Sally, a freshman at Penn State University, starts her day off when she hears the Penn State Clock Tower
chime 8 times. She climbs out of her comfy bed as she slips on her Penn State T-Shirt, sweatpants, and
her Penn State hoodie. After going through her daily regimen to get ready, she makes her way to the
HUB to get her favorite pick-me-up treat: a pumpkin spice latte from Starbucks. On her way to class, she
also stops by the Student Bookstore to pick up some more supplies that she’ll need for her art class later
in the day. From Sally’s perspective, Penn State seems like a thoughtful university that encompasses all
her needs. Penn State is a successful enterprise because it has the ability to target its consumer’s wants
and needs to the point where students keep coming back for more.
Becoming first year students of Penn State means that we also have become consumers of Penn
State. This is realized quickly after accepting our offer to attend Penn State since we have to submit a
deposit to reserve a spot in the university. Then before we even start our classes, an in state student
must pay roughly $16,572 a semester (Snider “Students Pay The Most”). This cycle of paying before
classes start and continues until we have graduated with a degree. Penn State is known to be the top
ten most expensive public state schools in the United States. In Sally’s case, she actually thinks she’s
getting a steal for paying $16,572 a semester compared to her friend Donald, who’s paying $29,522,
since he’s from Maryland.
After a recent trend in Pennsylvania’s budget cuts towards public schools, Penn State officials cited a
lack of state money even as the university must modernize its campuses to offer the top-flight education
students demand. To pay for new technology, buildings, and faculty, Penn State faces cost increases that
exceed inflation. On average, Penn State’s tuition has grown by about 8 percent a year while the
Consumer Price Index (CPI) has gone up only 3 percent a year. The combined effect of a decrease in
state funds and the increase in demand for expensive ventures forced Penn State to gradually evolve
into a University that is focused on capitalizing on revenue, thus becoming a very successful enterprise.
And of course, with every consumer enterprise, there must be consumers. In this case, It’s Sally and her
peers.
Thanks to our need for food and drinks, Penn State capitalizes. Penn State has 5 dining halls of which
there are several little shops next to each dining hall and at the HUB. There is literally a place to eat for
everyone. Even Sally, who is an extremely picky eater, can find something to enjoy among such a vast
array of choices that covers foods like sushi, hoagies, pizza, and burritos. Penn State has come to make
all of these choices available because, like a successful business, they want to cater to all their
consumers wants and needs. To pay for all of these great meals, a students can either use cash or their
campus meal plans. The campus meal plan gives the user 65% off on all of the University owned
restaurants; the catch is that there is an initial cost of $1,315 plus different plans which offer different
amount of usable money, which is extra (Meal Plans). Thus, Penn state strives off the initial amount of
money, which has been calculated to completely cover the amount of money the university loses when
the student uses the 65% discount at a restaurant. Since most students overestimate the amount of
money they needed on their meal plan, the university receives the excess funds that the student does
not use by the end of the school year for improvements in the dining commons via research and
development.
Most Penn State students likely have at least one item of clothing emblazoned with a Penn State
logo. From shirts to shorts, hats to sweatshirts and more, you can wear everything and anything Penn
State related. Being students at Penn State, we are proud to wear Penn State apparel. The university
knows this and thus does not simply hand out PSU affiliated gear for free. They know that there is a
strong demand for the apparel and thus they choose a price for each object at which they can maximize
their profit. So when Sally goes to the Student Bookstore to purchase a Penn State sweatshirt worth $10
for $45, she does so for the brand of Penn State and not for the quality of the material. Penn State has
one of the most well-known public school trademarks within the United States. In order to protect its
brand, Penn State has many licensing requirements to prevent third party organizations from
penetrating their consumer base with similar products. The ultimate goal of Penn State’s tight control is
to closely maintain their stream of revenue.
The overlying concept of Penn State’s success in consumerism is the university’s ability to make its
consumers truly happy. Sally will most likely believe that her time at Penn State is an unforgettable
experience and probably the best years of her life. Penn State students, like Sally, are consumers when
they pay tuition and attend the college, but when they graduate, they become a part of the alumni
network, which is vital for the university to survive. The consumers were so content with the products
and services that they received that they decide to give donations averaging an annual $130 million
within the commonwealth. If Penn State weren’t so impactful on its former students, they would be
lacking a major source of revenue that they receive today.
In a mere four years, it is time for graduation. Sally has already bought her official cap and gown from
the Penn State bookstore. Her parents have been up for the entire weekend celebrating with Sally by
eating at the Penn State Inn and taking graduation pictures in front of the Nittany Lion. Throughout her
four years she has been continuing to pay Penn State thanks to the university’s ability to target what
Sally needs. Over her college career, she has spent over $100,000 for nothing more tangible than a slip
of paper that is called a diploma. Sally is by no means a shopaholic. Unfortunately for her, an outsider
looking in on her purchasing habits would probably suggest that she attend a support group. Sally had
unknowingly fallen into Penn State’s palms, purchasing items and services for what she believed was
vital to her short-term and long-term success. Because of this, Penn State capitalizes and proves to be a
successful enterprise.
Citations:
1. Chute, Eleanor. "Pitt, Penn State Remain Highest in Tuition Nationally for Public Universities."
Pittsburgh Post-Gazette. N.p., 1 July 2014. Web. 05 Nov. 2014.
2. "Meal Plans." Meal Plans. N.p., n.d. Web. 27 Oct. 2014.
3. Murphy, Jan. "Penn State Ranks High in Expense." PennLive.com. N.p., 1 Mar. 2009. Web. 05
Nov. 2014.
4. Snider, Susannah. US News. U.S.News & World Report, 28 Oct. 2014. Web. 05 Nov. 2014.