Baker Hughes Foreign Corrupt Practices Act Case Study Solution and Analysis
Introduction
Baker Hughes Foreign Corrupt Practices Act Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized information supplier and a large thorough Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Issues
CMP has spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring specific obstacles to the publishing market in basic and Baker Hughes Foreign Corrupt Practices Act Case Study Solution in specific. These aspects include;
• Entrance of the new publishing firms in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement of science and innovation.
The transformation of the macro markets have raised several questions to the management at CPM that what could be the future of CMP in this circumstance? Do the long valuable experience, technical resources and the abilities of the business could be utilized to strive for the future development unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Baker Hughes Foreign Corrupt Practices Act Case Study Analysis has particular strengths that can be made use of to lower the hazards, conquer the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Baker Hughes Foreign Corrupt Practices Act Case Study Solution in the publishing industry i.e. 60 years enables the company to supply high quality products at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and supply high value to its clients.
• Strong financial position allows the company to consider several advancement opportunities with no fear of raising fund externally.
Weaknesses
Along with the strengths, the company has specific weaknesses which might increase restraints for the business in executing its development program. The weak points of Baker Hughes Foreign Corrupt Practices Act Case Study Help are given as follows;
• Despite of being a science and innovation publishing firm, the business still has standard ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It needs to propose particular growth plans to prevent its reliance over the Chinese markets to accomplish long term development.
Opportunities
The development of the publishing industry is decreasing considering that 2008, affecting Baker Hughes Foreign Corrupt Practices Act Case Study Analysis as well, however the growth might be revived by availing particular chances provided in the market. The market opportunities for CMP include;
• The company might likewise present Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about an advancement program through the expansion towards foreign markets in order to decrease its reliance over Chinese markets by using its vast financial resources.
Dangers
The altering macro trends in the market and increasing competitors in the publishing market has postured certain threats to Baker Hughes Foreign Corrupt Practices Act Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in declining market share of Baker Hughes Foreign Corrupt Practices Act Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of a great deal of competitors in the publishing industry increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing certain methods like aggressive promo, quality products, etc.
• Entryway of new publishing companies in the market together with existence of high competitors increases the danger of losing the client base.
Monetary Analysis.
The company has a quite competitive financial performance. Due to lack of data, the financial ratios of CMP might not be determined. The overall financial efficiency of the company might be evaluated by using the graphs provided in the case Appendices. It might be evaluated from the Appendix III that the annual total revenues of CMP during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of Baker Hughes Foreign Corrupt Practices Act Case Study Analysis is growing and the company is quite efficient in bring in a large number of consumers at a prospective price.
Together with it, the second graph which reveals the annual development in the Baker Hughes Foreign Corrupt Practices Act Case Study Analysis overall properties, reveals that the business is quite effective in adding worth to its properties through its earnings. The development in possessions reveals that the total worth of the firm is likewise increasing with increasing the total revenues. (Unidentified, 2013).
Another monetary analysis of the business using the offered data could be the analysis relating to the circulation of overall incomes of the business. Major part of the earnings of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business might move towards other business sectors with a prospective growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to learn the different external forces impacting the performance of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant effect on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. It could be said that the general political forces affecting CMP service are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Baker Hughes Foreign Corrupt Practices Act Case Study Analysis in specific includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP growth of the country. All these forces combine impact the demand for the publishing market. Together with it, the financial policies associated with the import of books impact the general company at CPM. Nevertheless, China's economic conditions are rather favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces consist of the population development, the consumer's choices towards checking out informative materials and so on. China has the highest population in the world with a high population development, revealing the increasing variety of consumers of the Baker Hughes Foreign Corrupt Practices Act Case Study Help. The consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP should concentrate on digital publishing to satisfy the changing consumer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading techniques etc. Enhancement of science and technology along with the rise of digital publishing might minimize the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Baker Hughes Foreign Corrupt Practices Act Case Study Help consists of the concerns of ecological communities over the use 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 ought to not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved first by the Federal government to be gone into in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to analyze the appearance of the publishing market China. A quick analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in new entrants to the publishing market. The presence of intense competition and the requirement of huge capital tends to demotivate new entrants to go into in the market.
Risk of Replacement.
Hazard of Replacement is high for the Chinese Publishing Industry. The replacement items for the published documents is the files presented in the digital libraries on specific sites. The changing customer choices towards digital knowing increase the threat of alternative for the market.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Industry like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Along with it, brand-new entrants are likewise entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Baker Hughes Foreign Corrupt Practices Act Case Study Analysis include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the existence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive prices.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of large number of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Baker Hughes Foreign Corrupt Practices Act Case Study Solution include;.
• Chemical Industry 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 might wean the market share of CMP quickly in the current market scenario.
Posts and telecommunication Press (PTP).
It was also founded in the very same duration as Baker Hughes Foreign Corrupt Practices Act Case Study Solution and CIP. It is likewise one of the popular players in the publishing market with a yearly overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service segments to the brand-new one can lead the business to lose need of its items in the market.
Suggestions
As the preferences are moving towards digital publishing and the company require an instant service to prevent the decreasing industry growth. The company could likewise consider the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business needs to initially gathers the data related to the customer need, the possible markets, the federal government guidelines and the information connected to the rivals provided in the market. After that, the business needs to choose one potential sector for its preliminary offering. It ought to gather research that how it might separate its digital publishing from the existing competitors' products. After all the steps above the business ought to go for the preliminary offering. The business needs to go for the other markets if the preliminary offering shows a success. In this method the business would have the ability to execute its digital publishing program.
Conclusion
The development of the publishing market is declining because 2008, showing a threat to the company's long term existence, however the situation can be managed by thinking about an advancement strategy in the future. The company might consider introducing digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entrance in the brand-new markets.
