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Abc Learning Case Study: Child Care In Australia

494 Words2 Pages

ABC Learning was founded in 1988, the company had a slow but steady start, by 1997 it was running 18 childcare centres across the country but in relatively short time everything changed, one significant development was that the Federal Government intervened in the system of child care centres which allowed families to apply for subsidized child care, the government was paying to the ABC LEARNING indirectly through its customers. (CPAaustralia).
The child care company had a market share value of (25%) of wholly childcare services provided across the Australia, and it was at one time categorized as the Australia's largest provider of childcare services with more than (1,200) childcare centres across the country and New Zealand, also (1,000) childcare centres in the United States, and approximately 1,600 employees. ABC LEARNING CENTRE LTDA had developed from one centre in the year 1998 to a main corporation with a market capitalisation value of ($3.4 billion). (Orla McCoy 2011). …show more content…

By 2005 the company had an aggressive international expansion running child care centres in United States and Great Britain.
The provider centre was seems with a strong financial situation and in a dominant position in the domestic market, but after a significant development despite with its early success in less than two years later the value of its shares were worth around (54 cents).
By 2008, the magnitude of the problematic became clear. Bank Receivers determined that up to approximately 400 (then revised to 262) of ABC's childcare centres were unprofitable, lending the company in the hands of administrators. (Orla McCoy

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