Let $n,s \geq 1$ be integers and $\mathbb{K}$ a field.
We assume there exist $\Phi : \mathcal{M}_n(\mathbb{K}) \rightarrow \mathcal{M}_s(\mathbb{K})$ an unital algebra homomorphism ($\Phi(I_n)=I_s$). See here for the definition.
We must show that necessarily $n | s$ and there exists $P \in \textrm{GL}_s(\mathbb{K})$ such that for all $A \in \mathcal{M}_n(\mathbb{K})$ :
$$ P \cdot \Phi(A) \cdot P^{-1} = \begin{pmatrix} A & & (0)\\ & \ddots &\\ (0) & & A \\ \end{pmatrix} $$
I have tried, but I cannot find a way to exploit $\Phi$ to show this. I am looking for a solution of this that uses only "basic" theorems of linear algebra (Bachelor's level). Any help is welcome.
An approach with more basic tools only. Towards the end it is a bit sketchy. It is kind of a notational nightmare! I hope I managed to communicate the key ideas though. The desired matrix $P$ will be built in several stages.
Let $E_{ij}\in M_n(\Bbb{K})$ be the matrix with entry $1$ at position $(i,j)$ and zeros elsewhere. Let $F_{ij}=\Phi(E_{ij})\in M_s(\Bbb{K})$.
Then we need to take control of the images $F_{ij}=\Phi(E_{ij}), i\neq j$. For $i=1,2,\ldots,n$, let's denote by $V_i$ the subspace of $\Bbb{K}^s$ spanned by the standard basis vectors $e_t$ with $t\equiv i\pmod n$, $t=1,2,\ldots,s$. With the steps above in place we know that $F_{ii}$ is the identity transformation on the subspace $V_i$ but vanishes elsewhere.