Ceo Decision Making At Prairie Health Services Case Study Solution and Analysis
Intro
Ceo Decision Making At Prairie Health Services Case Study Analysis is the largest publishing company with a highest market share in the China's book retail market. CMP offers a variety of services including; collecting info, processing information and communication services. Significant organisation segments of the business include; books, periodicals, consultancy and distribution. The business has a large item portfolio and its significant items include books, regulars, online media, exhibitions, research study reports and so on. Ceo Decision Making At Prairie Health Services Case Study Help has actually ended up being a specialized details service provider and a large extensive Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Crucial Problems
Although, Ceo Decision Making At Prairie Health Services Case Study Help has actually spent its 60 years journey efficiently, being a successful publishing home, however, the altering macro market trends and forces bring particular difficulties to the publishing market in basic and CMP in specific. These aspects include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the company could be utilized to pursue the future advancement 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 Solution has certain strengths that can be utilized to decrease the hazards, overcome the weak point and obtain the chances. Strengths of CMP are offered 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 enables the business to provide high quality items at a lower expense utilizing its prior experiences.
• The technical resources and abilities generated by its effective journey provide a competitive benefit to CMP.
• Huge item portfolioof CMP helps it to diversify its risk and offer high worth to its consumers.
• Strong monetary position permits the business to think about several development opportunities without any worry of raising fund externally.
Weak points
In addition to the strengths, the business has certain weaknesses which could increase constraints for the company in implementing its development program. The weaknesses of Ceo Decision Making At Prairie Health Services Case Study Analysis are given as follows;
• Despite of being a science and innovation publishing firm, the business still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its development. It should propose certain growth strategies to prevent its dependence over the Chinese markets to attain long term development.
Opportunities
Although, the development of the publishing industry is decreasing since 2008, affecting Ceo Decision Making At Prairie Health Services Case Study Analysis too, however the growth might be revived by availing particular chances provided in the market. The market opportunities for CMP consist of;
• The business might also introduce Digital Publishing by utilizing its long term technical experience and a strong consumer acknowledgment in the market.
• CMP could think about an advancement program through the expansion towards foreign markets in order to lower its reliance over Chinese markets by using its large financial resources.
Dangers
The changing macro trends in the market and increasing competition in the publishing market has postured particular hazards to Ceo Decision Making At Prairie Health Services Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries might cause decreasing market share of Ceo Decision Making At Prairie Health Services Case Study Analysis due to the consumer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing particular techniques like aggressive promo, quality items, etc.
• Entryway of new publishing firms in the industry along with presence of high competitors increases the hazard of losing the consumer base.
Financial Analysis.
The company has a quite competitive financial performance. Due to lack of data, the financial ratios of CMP could not be calculated. The general monetary performance of the company could be analyzed by using the charts provided in the case Appendices. It might be analyzed from the Appendix III that the annual overall revenues of CMP throughout the period 2000-2012 are growing at a high growth rate, revealing that the annual need of the items of Ceo Decision Making At Prairie Health Services Case Study Solution is growing and the company is rather efficient in attracting a a great deal of consumers at a potential rate.
In addition to it, the 2nd chart which shows the annual growth in the Ceo Decision Making At Prairie Health Services Case Study Help overall assets, shows that the business is rather effective in adding value to its assets through its revenues. The growth in assets shows that the total value of the company is likewise increasing with increasing the overall earnings. (Unknown, 2013).
Another monetary analysis of the company using the provided information could be the analysis regarding the distribution of overall profits of the company. Huge part of the earnings of CMP originates from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business could move towards other company sections with a possible development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis could be conducted to discover the various external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A quick PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial effect on the state of mind of the people about the communist ideology of the government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Party of China. It might be said that the general political forces impacting CMP organisation are high. The government policies regarding 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 Analysis in specific includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP growth of the nation. All these forces integrate effect the demand for the publishing market. In addition to it, the financial policies related to the import of books affect the general service at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP development and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's preferences towards checking out useful materials and so on. China has the greatest population worldwide with a high population development, showing the increasing number of consumers of the Ceo Decision Making At Prairie Health Services Case Study Help. The customer preferences are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP must focus on digital publishing to satisfy the changing customer preferences.
Technological.
Technological forces affecting the CMP include the technological advancement in the reading methods and so on. Improvement of science and technology in addition to the increase of digital publishing might lower the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces impacting Ceo Decision Making At Prairie Health Services Case Study Help consists of the concerns of ecological neighborhoods over the usage of paper in publishing books. The paper used in the books while publishing is required to be disposable and the ink used while publishing needs to not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Ordinance 1997 requires the publishers to be authorized initially by the Government to be entered in the publishing market.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Model could be used to evaluate the appearance of the publishing industry China. A short analysis of the Porter's 5 Forces is provided as follows;.
Threat of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the industry tends to attract new entrants to the publishing market. The existence of intense competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Replacement.
Threat of Alternative is high for the Chinese Publishing Industry. The replacement items for the released documents is the documents provided in the digital libraries on certain websites. The changing customer choices towards digital learning increase the danger of replacement for the market.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Industry like CIP, PTP etc. tends to produce high competitive competition for CMP. In addition to it, brand-new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Ceo Decision Making At Prairie Health Services Case Study Solution include the suppliers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the general bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Bargaining power of purchaser in the publishing market is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers requires high quality documents at competitive rates.
Rivals Analysis.
CMP runs in an extremely competitive market with the existence of large number of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant competitors of Ceo Decision Making At Prairie Health Services Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis among the close competitors of CMP. Founded in the very same duration, CIP publishes similar kind of books. For a large period, CIP held the largest market share, and still ranks third and 2nd in various market segments, with a major concentrate on instructional publications. CIP serves 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 marketplace share of Ceo Decision Making At Prairie Health Services Case Study Help easily in the existing market situation.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the same duration as CMP and CIP. It ranks sixth in the state-owned publishers in terms of business scale. It is also one of the popular gamers in the publishing industry with an annual overall revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Lowering dependence 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 expansion.
• Danger of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to present using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service segments to the new one can lead the business to lose demand of its products in the market.
Suggestions
With the deep analysis of the external and internal environment of the company in addition to the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to achieve its future advancement. As the choices are shifting towards digital publishing and the company need an instant service to avoid the decreasing market development. Therefore, introduction of digital publishing could prove to be an instant solution with low amount of threat for the company. The business could 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 collects the data associated with the consumer demand, the possible markets, the government policies and the data related to the rivals presented in the market. After that, the business must choose one possible segment for its preliminary offering. It should gather research that how it might differentiate its digital publishing from the existing competitors' products. The actions above the company need to go for the preliminary offering. The company ought to go for the other markets if the initial offering shows a success. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing industry is declining because 2008, showing a danger to the company's long term existence, but the scenario can be managed by considering an advancement strategy in the future. The business might consider presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the threat of failure for entryway in the new markets.
