Dysfunctional Executive Behavior What Can Organizations Do Case Study Solution and Analysis
Intro
Dysfunctional Executive Behavior What Can Organizations Do Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP supplies a number of services including; gathering information, processing information and interaction services. Major organisation sectors of the company consist of; books, periodicals, consultancy and distribution. The business has a vast item portfolio and its significant items consist of books, regulars, online media, exhibitions, research study reports and so on. Dysfunctional Executive Behavior What Can Organizations Do Case Study Help has ended up being a specialized details provider and a big extensive Science and Innovation publishing business through the combination of print media, audio-visual media and the network media.
Important Concerns
Although, Dysfunctional Executive Behavior What Can Organizations Do Case Study Help has actually spent its 60 years journey smoothly, being an effective publishing house, however, the altering macro market patterns and forces bring certain obstacles to the publishing market in general and CMP in specific. These elements include;
• Entryway of the new publishing companies in the market.
• Declining growth of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Improvement of science and innovation.
The improvement of the macro markets have raised numerous 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 company could be used to strive for the future advancement unceasingly? How could the business sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Dysfunctional Executive Behavior What Can Organizations Do Case Study Solution has specific strengths that can be utilized to decrease the risks, get rid of the weak point and get the opportunities. Strengths of CMP are provided as follows;
• The long term experience of Dysfunctional Executive Behavior What Can Organizations Do Case Study Help in the publishing industry i.e. 60 years permits the business to offer high quality products at a lower cost using its previous experiences.
• The technical resources and abilities created by its successful journey provide a competitive benefit to CMP.
• Large item portfolioof CMP helps it to diversify its danger and provide high worth to its clients.
• Strong monetary position enables the company to think about several development opportunities without any worry of raising fund externally.
Weaknesses
Together with the strengths, the company has certain weak points which could increase restrictions for the company in executing its advancement program. The weak points of Dysfunctional Executive Behavior What Can Organizations Do Case Study Analysis are provided as follows;
• Despite of being a science and technology publishing company, the company still has conventional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular expansion strategies to prevent its dependence over the Chinese markets to achieve long term growth.
Opportunities
The growth of the publishing industry is decreasing given that 2008, impacting Dysfunctional Executive Behavior What Can Organizations Do Case Study Solution as well, however the development might be restored by availing certain chances provided in the market. The market chances for CMP include;
• The business might likewise introduce Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could think about a development program through the expansion towards foreign markets in order to reduce its dependence over Chinese markets by using its huge financial resources.
Threats
The altering macro trends in the market and increasing competition in the publishing market has presented specific risks to Dysfunctional Executive Behavior What Can Organizations Do Case Study Help consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could cause decreasing market share of Dysfunctional Executive Behavior What Can Organizations Do Case Study Solution due to the consumer shift towards digital libraries.
• The presence of a great deal of rivals in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by using certain techniques like aggressive promotion, quality products, etc.
• Entryway of new publishing firms in the market in addition to presence of high competitors increases the threat of losing the client base.
Monetary Analysis.
The business has a quite competitive financial performance. Due to absence of information, the financial ratios of CMP could not be calculated. The general financial performance of the company might be analyzed by utilizing the charts given in the case Appendices. It might be evaluated from the Appendix III that the yearly overall revenues of CMP throughout the period 2000-2012 are growing at a high development rate, showing that the yearly need of the items of Dysfunctional Executive Behavior What Can Organizations Do Case Study Solution is growing and the business is rather efficient in bring in a large number of consumers at a possible rate.
In addition to it, the 2nd graph which shows the yearly development in the Dysfunctional Executive Behavior What Can Organizations Do Case Study Analysis total possessions, shows that the business is rather efficient in including worth to its properties through its revenues. The development in properties shows that the total worth of the firm is likewise increasing with increasing the overall incomes. (Unidentified, 2013).
Another monetary analysis of the company using the given data might be the analysis relating to the distribution of total earnings of the business. Major part of the incomes of CMP comes from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sections with a prospective development to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces affecting the performance of the company and the current patterns in the external environment of the business. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial influence on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Party of China. It could be stated that the overall political forces impacting CMP company are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Economical.
Financial forces affecting the publishing sector in general and the Dysfunctional Executive Behavior What Can Organizations Do Case Study Analysis in particular includesthe costs of paper, the income level of customers, the inflation rate, and the overall GDP development of the country. All these forces integrate impact the demand for the publishing market. Along with it, the financial policies related to the import of books affect the overall organisation at CPM. However, China's economic conditions are rather beneficial for CMP with high GDP growth and customer earnings level.
Social and Demographical.
The consumer choices are shifting towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to focus on digital publishing to fulfill the changing customer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading techniques etc. Improvement of science and innovation in addition to the increase of digital publishing could lower the need for the CMP items, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Dysfunctional Executive Behavior What Can Organizations Do Case Study Solution includes the issues of ecological communities over the use of paper in publishing books. The paper utilized in the books while publishing is required to be disposable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market. The ordinance prohibits direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Design).
Porter's 5 Forces Design could be utilized to examine the appearance of the publishing industry China. A brief analysis of the Porter's Five Forces is provided as follows;.
Risk of New Entrants.
Hazards of brand-new entrants in the Chinese Publishing Industry is moderate. The potential growth in the market tends to bring in new entrants to the publishing industry. The existence of extreme competitors and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement products for the published files is the files presented in the digital libraries on specific sites. The changing customer preferences towards digital learning increase the danger of substitution for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive competition for CMP. Along with it, brand-new entrants are likewise entering into the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Dysfunctional Executive Behavior What Can Organizations Do Case Study Solution consist of the suppliers of the paper for publishing documents. 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 purchaser 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 needs high quality documents at competitive prices.
Rivals Analysis.
CMP runs in an extremely competitive industry with the existence of large number of rivals. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Significant rivals of Dysfunctional Executive Behavior What Can Organizations Do Case Study Solution include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a hazard 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 easily in the present market scenario.
Posts and telecommunication Press (PTP).
It was also established in the very same duration as Dysfunctional Executive Behavior What Can Organizations Do Case Study Analysis and CIP. It is also one of the prominent gamers in the publishing industry with a yearly total revenues of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Consumers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Usage of possible resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to introduce utilizing existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
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 company to lose need of its products in the market.
Recommendations
With the deep analysis of the internal and external environment of the company along with the industry analysis and the competitor analysis, Alternative 2 is suggested to CMP to accomplish its future development. As the choices are shifting towards digital publishing and the business require an instant option to prevent the decreasing market development. Introduction of digital publishing could prove to be an instant service with low amount of risk for the company. The company might also consider the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the company should initially gathers the information related to the customer need, the potential markets, the federal government policies and the data related to the competitors provided in the market. If the preliminary offering proves a success, the company must go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining given that 2008, showing a risk to the business's long term existence, but the circumstance can be managed by thinking about a development strategy in the future. The business could consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the danger of failure for entryway in the brand-new markets.
