Edward Wood Steel Stockholders A Cash Flow Exercise 2 Case Study Solution and Analysis
Intro
Edward Wood Steel Stockholders A Cash Flow Exercise 2 Case Study Analysis is the biggest publishing business with a greatest market share in the China's book retail market. CMP offers a number of services including; collecting info, processing details and communication services. Significant business sections of the company consist of; books, periodicals, consultancy and distribution. The business has a vast product portfolio and its significant products include books, periodicals, online media, exhibits, research reports etc. Edward Wood Steel Stockholders A Cash Flow Exercise 2 Case Study Solution has ended up being a specialized info company and a big detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Issues
Although, Edward Wood Steel Stockholders A Cash Flow Exercise 2 Case Study Analysis has actually spent its 60 years journey smoothly, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring certain difficulties to the publishing market in basic and CMP in specific. These factors consist of;
• Entryway of the new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Enhancement of science and innovation.
The transformation of the macro markets have raised a number of 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 capabilities of the company could be used to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Edward Wood Steel Stockholders A Cash Flow Exercise 2 Case Study Analysis has specific strengths that can be used to reduce the hazards, conquer the weakness and obtain the chances. Strengths of CMP are offered as follows;
• The long term experience of Edward Wood Steel Stockholders A Cash Flow Exercise 2 Case Study Solution in the publishing industry i.e. 60 years allows the company to provide high quality products at a lower cost utilizing its prior experiences.
• The technical resources and capabilities generated by its effective journey supply a competitive benefit to CMP.
• Huge product portfolioof CMP assists it to diversify its danger and provide high value to its clients.
• Strong financial position allows the business to think about several advancement opportunities without any worry of raising fund externally.
Weaknesses
Along with the strengths, the business has certain weaknesses which could increase restraints for the business in executing its development program. The weaknesses of Edward Wood Steel Stockholders A Cash Flow Exercise 2 Case Study Solution are given as follows;
• Despite of being a science and technology publishing firm, the business still has standard 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 avoid its reliance over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing industry is declining because 2008, impacting Edward Wood Steel Stockholders A Cash Flow Exercise 2 Case Study Analysis as well, however the development could be restored by availing specific opportunities presented in the market. The marketplace opportunities for CMP consist of;
• The company might also present Digital Publishing by using its long term technical experience and a strong client acknowledgment in the market.
• CMP could consider an advancement program through the expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its vast financial resources.
Hazards
The changing macro trends in the market and increasing competition in the publishing market has actually positioned particular dangers to Edward Wood Steel Stockholders A Cash Flow Exercise 2 Case Study Solution consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries could result in decreasing market share of Edward Wood Steel Stockholders A Cash Flow Exercise 2 Case Study Help due to the customer shift towards virtual libraries.
• The presence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong consumer base by utilizing particular methods like aggressive promotion, quality items, etc.
• Entrance of new publishing companies in the market together with presence of high competition increases the hazard of losing the customer base.
Financial Analysis.
Due to absence of data, the monetary ratios of CMP could not be determined. It might be analyzed from the Appendix III that the annual total earnings of Edward Wood Steel Stockholders A Cash Flow Exercise 2 Case Study Analysis 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 quite effective in bring in a big number of consumers at a possible rate.
In addition to it, the second graph which reveals the yearly growth in the Edward Wood Steel Stockholders A Cash Flow Exercise 2 Case Study Analysis overall possessions, reveals that the business is rather effective in including worth to its properties through its earnings. The growth in assets reveals that the total value of the company is also increasing with increasing the overall profits. (Unknown, 2013).
Another monetary analysis of the company using the offered information could be the analysis concerning the circulation of overall profits of the business. Major part of the profits of CMP originates from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation segments with a prospective development to achieve its future advancement objective.
PESTEL Analysis
PESTEL analysis could be performed to find out the various external forces impacting the performance of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the company is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a substantial impact on the mindset of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and guided by the Promotion Department of the Communist Party of China. Therefore, it might be said that the overall political forces affecting Edward Wood Steel Stockholders A Cash Flow Exercise 2 Case Study Help organisation are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Economic forces impacting the publishing sector in general and the Edward Wood Steel Stockholders A Cash Flow Exercise 2 Case Study Solution in specific includesthe rates of paper, the income level of customers, the inflation rate, and the total GDP growth of the country. All these forces integrate effect the need for the publishing market. Along with it, the financial policies connected to the import of books affect the total organisation at CPM. Nevertheless, China's economic conditions are quite favorable for CMP with high GDP development and customer earnings level.
Social and Demographical.
Social and demographical forces include the population development, the customer's choices towards reading informative products etc. China has the greatest population worldwide with a high population development, revealing the increasing variety of consumers of the Edward Wood Steel Stockholders A Cash Flow Exercise 2 Case Study Help. The consumer choices are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP must concentrate on digital publishing to fulfill the altering customer preferences.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading methods and so on. Improvement of science and technology together with the increase of digital publishing could minimize the demand for the CMP products, if specific actions would not be taken quickly.
Environmental.
Ecological forces affecting Edward Wood Steel Stockholders A Cash Flow Exercise 2 Case Study Analysis includes the issues of environmental communities over the use of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink utilized while publishing should 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.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design might be utilized to examine the attractiveness of the publishing market China. A quick analysis of the Porter's 5 Forces is offered as follows;.
Risk of New Entrants.
Hazards of new entrants in the Chinese Publishing Industry is moderate. The prospective development in the market tends to bring in brand-new entrants to the publishing market. However, the existence of intense competitors and the requirement of big capital tends to demotivate new entrants to go into in the market.
Risk of Substitution.
Risk of Replacement is high for the Chinese Publishing Industry. The substitute products for the released documents is the documents presented in the digital libraries on certain sites. The changing customer choices towards digital knowing increase the hazard of alternative for the market.
Competitive Rivalry.
Competitive competition 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 rivalry for CMP. Along with it, new entrants are likewise entering into the market increasing the competitors for CMP.
Bargaining Power of Supplier.
The major suppliers of the Edward Wood Steel Stockholders A Cash Flow Exercise 2 Case Study Analysis include the suppliers of the paper for releasing 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 Buyer.
Bargaining power of buyer in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the purchasers needs high quality files at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive industry with the existence of a great deal of competitors. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Major rivals of Edward Wood Steel Stockholders A Cash Flow Exercise 2 Case Study Help consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the same period, CIP releases comparable type of books. For a large period, CIP held the biggest market share, and still ranks 2nd and 3rd in numerous market sections, with a significant focus on academic publications. CIP functions as a hazard for CMP as it could wean its market share due to its long term competitive background. CIP is focused on digital publishing and might wean the market share of Edward Wood Steel Stockholders A Cash Flow Exercise 2 Case Study Solution easily in the current market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the very same duration as Edward Wood Steel Stockholders A Cash Flow Exercise 2 Case Study Solution and CIP. It is also one of the prominent gamers in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Decreasing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Preventing the impact of market saturation in the Chinese publishing market.
Cons
• Usage of prospective resources in expansion.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining customer base.
• Approaching brand-new markets.
• Easy to introduce using existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased product portfolio provides high worth to consumers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sections to the brand-new one can lead the company to lose need of its products in the market.
Recommendations
As the preferences are moving towards digital publishing and the business require an immediate option to prevent the decreasing market growth. 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 item portfolio, the business ought to initially collects the information related to the customer need, the potential markets, the federal government guidelines and the data related to the rivals provided in the market. If the initial 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 risk to the company's long term existence, but the scenario can be controlled by considering a development strategy in the future. The business could consider introducing digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entryway in the new markets.
