Aetna Inc Managing Inherent Enterprise Risks Through Stakeholder Management A Case Study Solution and Analysis
Introduction
Aetna Inc Managing Inherent Enterprise Risks Through Stakeholder Management A Case Study Help is the largest publishing business with a greatest market share in the China's book retail market. CMP has actually become a specialized info company and a large thorough Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Crucial Problems
Although, Aetna Inc Managing Inherent Enterprise Risks Through Stakeholder Management A Case Study Analysis has invested its 60 years journey smoothly, being a successful publishing home, however, the changing macro market patterns and forces bring specific obstacles to the publishing industry in general and CMP in specific. These elements include;
• Entrance of the new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The improvement of the macro markets have raised a number of concerns to the management at CPM that what could be the future of CMP in this situation? Do the long important experience, technical resources and the abilities of the business could be used to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Aetna Inc Managing Inherent Enterprise Risks Through Stakeholder Management A Case Study Help has specific strengths that can be used to minimize the threats, get rid of the weakness and get the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Aetna Inc Managing Inherent Enterprise Risks Through Stakeholder Management A Case Study Analysis in the publishing market i.e. 60 years permits the company to offer high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its danger and provide high worth to its customers.
• Strong financial position enables the company to consider numerous advancement opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weaknesses which could increase constraints for the business in implementing its development program. The weaknesses of Aetna Inc Managing Inherent Enterprise Risks Through Stakeholder Management A Case Study Help are offered as follows;
• Despite of being a science and innovation publishing firm, the business still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain growth plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is declining because 2008, affecting Aetna Inc Managing Inherent Enterprise Risks Through Stakeholder Management A Case Study Solution as well, but the development might be revived by availing specific opportunities provided in the market. The market opportunities for CMP consist of;
• The company might also present Digital Publishing by utilizing its long term technical experience and a strong consumer recognition in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by utilizing its vast financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing industry has presented certain risks to Aetna Inc Managing Inherent Enterprise Risks Through Stakeholder Management A Case Study Solution consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might lead to declining market share of Aetna Inc Managing Inherent Enterprise Risks Through Stakeholder Management A Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can gain a strong customer base by using certain methods like aggressive promotion, quality items, and so on
• Entrance of new publishing firms in the market in addition to existence of high competition increases the risk of losing the client base.
Financial Analysis.
Due to absence of information, the monetary ratios of CMP might not be determined. It might be analyzed from the Appendix III that the yearly overall revenues of Aetna Inc Managing Inherent Enterprise Risks Through Stakeholder Management A Case Study Solution throughout the period 2000-2012 are growing at a high development rate, revealing that the annual demand of the items of CMP is growing and the business is rather efficient in bring in a large number of clients at a potential rate.
Together with it, the second chart which shows the annual growth in the Aetna Inc Managing Inherent Enterprise Risks Through Stakeholder Management A Case Study Analysis overall properties, shows that the company is quite effective in including value to its possessions through its earnings. The development in properties shows that the total value of the firm is also increasing with increasing the overall profits. (Unidentified, 2013).
Another monetary analysis of the company utilizing the provided information could be the analysis concerning the distribution of total revenues of the company. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other business sections with a possible development to attain its future development objective.
PESTEL Analysis
PESTEL analysis might be conducted to discover the numerous external forces impacting the performance of the business and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable influence on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and assisted by the Promotion Department of the Communist Party of China. For that reason, it might be stated that the general political forces impacting Aetna Inc Managing Inherent Enterprise Risks Through Stakeholder Management A Case Study Analysis service are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Economical.
Economic forces impacting the publishing sector in basic and the CMP in specific includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP growth of the nation. All these forces integrate effect the demand for the publishing market.
Social and Demographical.
Social and demographical forces include the population development, the consumer's preferences towards reading useful materials etc. China has the highest population in the world with a high population growth, revealing the increasing variety of consumers of the Aetna Inc Managing Inherent Enterprise Risks Through Stakeholder Management A Case Study Help. The customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological improvement in the reading techniques and so on. Improvement of science and innovation along with the rise of digital publishing might reduce the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Aetna Inc Managing Inherent Enterprise Risks Through Stakeholder Management A Case Study Help consists of the issues of environmental neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink used while publishing must not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Design).
Porter's 5 Forces Model could be utilized to examine the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Risks of brand-new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in brand-new entrants to the publishing industry. However, the presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the marketplace.
Threat of Alternative.
Threat of Alternative is high for the Chinese Publishing Market. The replacement items for the published documents is the documents provided in the virtual libraries on certain websites. The changing customer preferences towards digital knowing increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The presence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, brand-new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Aetna Inc Managing Inherent Enterprise Risks Through Stakeholder Management A Case Study Help include the suppliers of the paper for releasing documents. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the total bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of a great deal of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Aetna Inc Managing Inherent Enterprise Risks Through Stakeholder Management A Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise founded in the same duration as CMP and CIP. It ranks 6th in the state-owned publishers in terms of company scale. It is also among the popular players in the publishing industry with a yearly overall earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in growth.
• Risk of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present utilizing present capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose need of its items in the market.
Suggestions
With the deep analysis of the external and internal environment of the company together with the industry analysis and the rival analysis, Alternative 2 is advised to CMP to achieve its future advancement. As the choices are moving towards digital publishing and the company require an instant solution to avoid the decreasing industry growth. For that reason, introduction of digital publishing could show to be an instant service with low amount of danger for the company. Nevertheless, the business might also consider the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its product portfolio, the business ought to first gathers the data connected to the consumer need, the possible markets, the government guidelines and the information related to the competitors provided in the market. After that, the business must decide one potential segment for its preliminary offering. It must collect research study that how it could distinguish its digital publishing from the existing competitors' products. After all the actions above the business ought to choose the initial offering. The company should go for the other markets if the initial offering proves a success. In this way the company would have the ability to implement its digital publishing program.
Conclusion
The growth of the publishing market is declining given that 2008, revealing a hazard to the company's long term presence, but the circumstance can be controlled by considering an advancement plan in the future. The business could think about introducing digital publishingin its existing market to implement its advancement program at immediate basis and to prevent the danger of failure for entryway in the new markets.
