Ceo Decision Making At Prairie Health Services Case Study Solution and Analysis
Introduction
Ceo Decision Making At Prairie Health Services Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP has become a specialized info company and a large extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Crucial Concerns
Although, Ceo Decision Making At Prairie Health Services Case Study Help has spent its 60 years journey smoothly, being a successful publishing house, however, the changing macro market trends and forces bring certain difficulties to the publishing industry in basic and CMP in particular. These elements consist of;
• Entryway of the brand-new publishing companies in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and technology.
The improvement of the macro markets have raised numerous 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 company 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
Ceo Decision Making At Prairie Health Services Case Study Help has certain strengths that can be made use of to lower the risks, get rid of the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Ceo Decision Making At Prairie Health Services Case Study Solution in the publishing industry i.e. 60 years allows the business to provide high quality items at a lower expense using its previous experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and offer high value to its clients.
• Strong financial position permits the company to consider a number of development opportunities without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has particular weak points which might increase restraints for the company in executing its development program. The weaknesses of Ceo Decision Making At Prairie Health Services Case Study Solution are offered as follows;
• Despite of being a science and technology publishing firm, the company still has standard methods ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It ought to propose certain growth plans to prevent its dependence over the Chinese markets to achieve long term development.
Opportunities
The growth of the publishing market is decreasing considering that 2008, affecting Ceo Decision Making At Prairie Health Services Case Study Help as well, but the development might be revived by availing particular chances provided in the market. The market chances for CMP include;
• The business could also present Digital Publishing by using its long term technical experience and a strong consumer recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its vast financial resources.
Dangers
The changing macro patterns in the market and increasing competitors in the publishing market has actually presented certain hazards to Ceo Decision Making At Prairie Health Services Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could result in decreasing market share of Ceo Decision Making At Prairie Health Services Case Study Analysis due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing industry increase the threat for CMP to lose its competitive position in the market, as rivals can get a strong customer base by using certain techniques like aggressive promotion, quality products, and so on
• Entryway of new publishing firms in the market in addition to existence of high competition increases the risk of losing the client base.
Monetary Analysis.
Due to absence of data, the financial ratios of CMP might not be determined. It could be analyzed from the Appendix III that the annual overall profits of Ceo Decision Making At Prairie Health Services Case Study Help during the duration 2000-2012 are growing at a high development rate, showing that the annual demand of the items of CMP is growing and the business is rather effective in bring in a large number of customers at a possible rate.
Together with it, the second chart which shows the annual growth in the Ceo Decision Making At Prairie Health Services Case Study Help overall possessions, shows that the company is quite effective in adding value to its possessions through its earnings. The development in possessions shows that the total value of the firm is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company using the offered data might be the analysis regarding the distribution of overall revenues of the business. Huge 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 organisation sectors with a prospective growth to accomplish its future development objective.
PESTEL Analysis
PESTEL analysis could be carried out to find out the numerous external forces affecting the efficiency of the business and the current patterns in the external environment of the company. A short PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable effect on the mindset of the people about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and guided by the Promotion Department of the Communist Party of China. Therefore, it might be said that the total political forces impacting Ceo Decision Making At Prairie Health Services Case Study Analysis company are high. The federal government policies concerning the publishing sector are also increasing with the passage of time.
Affordable.
Economic forces impacting the publishing sector in basic and the Ceo Decision Making At Prairie Health Services Case Study Help in particular includesthe costs of paper, the earnings level of customers, the inflation rate, and the total GDP development of the nation. All these forces integrate effect the demand for the publishing market. In addition to it, the economic policies related to the import of books affect the overall organisation at CPM. China's economic conditions are rather favorable for CMP with high GDP development and customer income level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards checking out helpful products etc. China has the highest population on the planet with a high population growth, showing the increasing variety of consumers of the Ceo Decision Making At Prairie Health Services Case Study Analysis. However, the customer choices are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing consumer preferences.
Technological.
Technological forces impacting the CMP include the technological improvement in the reading methods and so on. Improvement of science and innovation together with the rise of digital publishing might reduce the need for the CMP products, if specific actions would not be taken soon.
Environmental.
Environmental forces affecting Ceo Decision Making At Prairie Health Services Case Study Help consists of the issues of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is needed to be disposable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal policies concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 requires the publishers to be approved first by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Market Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Model could be used to analyze the beauty of the publishing industry China. A brief analysis of the Porter's 5 Forces is offered as follows;.
Hazard of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective growth in the industry tends to bring in brand-new entrants to the publishing market. However, the existence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Alternative.
Danger of Substitution is high for the Chinese Publishing Market. The substitute products for the published files is the files presented in the digital libraries on specific sites. The changing customer preferences towards digital knowing increase the threat of substitution for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The presence of a great deal of customers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. Together with it, new entrants are likewise participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Ceo Decision Making At Prairie Health Services Case Study Help consist of the suppliers of the paper for releasing files. As CMP is the biggest publisher in the Chinese Publishing Market, therefore the overall bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the purchasers needs high quality files at competitive rates.
Competitors Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of competitors. The company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Ceo Decision Making At Prairie Health Services 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 current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was likewise established in the exact same period as CMP and CIP. It ranks 6th in the state-owned publishers in regards to company scale. It is likewise one of the popular gamers in the publishing market with an annual overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Minimizing reliance over the Chinese markets.
• Increasing number of Clients
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Use of possible resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present utilizing present abilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio offers high worth to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the new one can lead the business to lose demand of its products in the market.
Suggestions
As the choices are moving towards digital publishing and the business require an immediate solution to avoid the decreasing industry growth. The company might also think about the growth program after the success of its digital publishing program.
Execution
In order to introduce digital publishing in its item portfolio, the company should initially gathers the data related to the customer need, the possible markets, the government guidelines and the data related to the competitors presented in the market. If the preliminary offering proves a success, the business should go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is decreasing considering that 2008, showing a danger to the company's long term presence, but the circumstance can be controlled by thinking about an advancement strategy in the future. The business might think about introducing digital publishingin its existing market to implement its advancement program at instant basis and to avoid the risk of failure for entryway in the new markets.
