Enterprise Risk Management At Hydro One B How Risky Are Smart Meters Case Study Solution and Analysis
Enterprise Risk Management At Hydro One B How Risky Are Smart Meters Case Study Analysis is the biggest publishing business with a highest market share in the China's book retail market. CMP has actually ended up being a specialized details provider and a big detailed Science and Technology publishing company through the integration of print media, audio-visual media and the network media.
Although, Enterprise Risk Management At Hydro One B How Risky Are Smart Meters Case Study Solution has invested its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring particular obstacles to the publishing industry in basic and CMP in specific. These aspects consist of;
• Entrance of the brand-new publishing companies in the market.
• Declining development of the publishing market.
• Market saturation.
• Intro of digital publishing methods
• Enhancement 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 situation? Do the long valuable experience, technical resources and the capabilities of the business could be made use of to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Enterprise Risk Management At Hydro One B How Risky Are Smart Meters Case Study Solution has particular strengths that can be used to reduce the risks, get rid of the weakness and get the chances. Strengths of CMP are given as follows;
• The long term experience of Enterprise Risk Management At Hydro One B How Risky Are Smart Meters Case Study Analysis in the publishing industry i.e. 60 years enables the business to provide high quality items at a lower cost using its previous experiences.
• The technical resources and abilities produced by its effective journey offer a competitive advantage to CMP.
• Large product portfolioof CMP assists it to diversify its danger and supply high value to its customers.
• Strong monetary position permits the company to consider several advancement opportunities with no worry of raising fund externally.
Along with the strengths, the business has certain weak points which could increase constraints for the business in implementing its advancement program. The weak points of Enterprise Risk Management At Hydro One B How Risky Are Smart Meters Case Study Help are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has standard ways ofpublishing which are not compatible with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose particular expansion strategies to avoid its dependence over the Chinese markets to achieve long term growth.
Although, the development of the publishing industry is decreasing given that 2008, affecting Enterprise Risk Management At Hydro One B How Risky Are Smart Meters Case Study Help as well, however the development could be revived by availing specific chances presented in the market. The market opportunities for CMP consist of;
• The company might likewise 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 growth towards foreign markets in order to reduce its reliance over Chinese markets by using its vast financial resources.
The altering macro trends in the market and increasing competition in the publishing industry has positioned specific risks to Enterprise Risk Management At Hydro One B How Risky Are Smart Meters Case Study Analysis including;( Gurel, 2017).
• Intro of digital publishing i.e. virtual libraries could lead to declining market share of Enterprise Risk Management At Hydro One B How Risky Are Smart Meters Case Study Help due to the customer shift towards digital libraries.
• The existence of a great deal of competitors in the publishing market increase the danger for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by using particular strategies like aggressive promo, quality products, and so on
• Entryway of brand-new publishing firms in the industry together with existence of high competitors increases the hazard of losing the customer base.
The company has a quite competitive financial efficiency. Due to lack of data, the financial ratios of CMP could not be computed. However, the overall financial efficiency of the business could be evaluated by utilizing the charts given up the case Appendices. It might be examined from the Appendix III that the annual total revenues of CMP throughout the duration 2000-2012 are growing at a high growth rate, showing that the annual demand of the products of Enterprise Risk Management At Hydro One B How Risky Are Smart Meters Case Study Help is growing and the business is quite effective in bring in a large number of consumers at a prospective cost.
In addition to it, the second graph which reveals the yearly development in the Enterprise Risk Management At Hydro One B How Risky Are Smart Meters Case Study Help total possessions, reveals that the company is rather effective in adding value to its possessions through its incomes. The development in properties shows that the total value of the firm is likewise increasing with increasing the overall revenues. (Unknown, 2013).
Another financial analysis of the company using the given data could be the analysis regarding the circulation of overall earnings of the company. Major part of the revenues of CMP comes from the sales of its published books i.e. 64% as displayed in the Case Appendix V. The business could move towards other organisation sectors with a possible growth to achieve its future advancement goal.
PESTEL analysis might be carried out to learn the numerous external forces affecting the performance of the company and the recent trends in the external environment of the company. A quick PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
As the publishing sector could have a substantial impact on the frame of mind of individuals about the communist ideology of the federal government, therefore, the publishing sector is extremely supervised and guided by the Promotion Department of the Communist Celebration of China. Therefore, it could be said that the total political forces impacting Enterprise Risk Management At Hydro One B How Risky Are Smart Meters Case Study Analysis service are high. The government policies regarding the publishing sector are also increasing with the passage of time.
Financial forces impacting the publishing sector in basic and the CMP in particular includesthe prices of paper, the earnings level of consumers, the inflation rate, and the general GDP growth of the country. All these forces integrate impact the need for the publishing market.
Social and Demographical.
The consumer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP should focus on digital publishing to satisfy the changing customer preferences.
Technological forces impacting the CMP include the technological development in the reading strategies and so on. Improvement of science and technology together with the increase of digital publishing could decrease the demand for the CMP items, if certain actions would not be taken quickly.
Ecological forces affecting Enterprise Risk Management At Hydro One B How Risky Are Smart Meters Case Study Analysis includes the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be harmful for the environment.
Legal policies for the publishing sector at whole are high. The legal guidelines concerning the publishing sector is controlled by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be approved initially by the Federal government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and people in the publishing sector.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to examine the beauty of the publishing industry China. A quick analysis of the Porter's Five Forces is provided as follows;.
Hazard of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential development in the market tends to bring in brand-new entrants to the publishing industry. The presence of extreme competition and the requirement of big capital tends to demotivate brand-new entrants to go into in the market.
Danger of Replacement.
Hazard of Substitution is high for the Chinese Publishing Industry. The replacement products for the published files is the documents provided in the virtual libraries on specific websites. The changing customer preferences towards digital learning increase the threat of replacement for the market.
Competitive competition in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also entering into the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major providers of the Enterprise Risk Management At Hydro One B How Risky Are Smart Meters Case Study Help include the providers of the paper for releasing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the total bargaining power of provider for CMP is low.
Bargaining Power of Purchaser.
Negotiating 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 costs.
CMP runs in an extremely competitive market with the existence of a great deal of competitors. However, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Significant competitors of Enterprise Risk Management At Hydro One B How Risky Are Smart Meters Case Study Help consist of;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a risk 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 present market situation.
Posts and telecommunication Press (PTP).
It was likewise founded in the same period as Enterprise Risk Management At Hydro One B How Risky Are Smart Meters Case Study Solution and CIP. It is also one of the prominent players in the publishing market with an annual total revenues of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Decreasing reliance over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the impact of market saturation in the Chinese publishing industry.
• Use of prospective resources in growth.
• Threat of failure in brand-new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing abilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased item portfolio offers high value to customers.
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core business sections to the brand-new one can lead the company to lose demand of its items in the market.
With the deep analysis of the internal and external environment of the company together with the market analysis and the competitor analysis, Alternative 2 is recommended to CMP to achieve its future development. As the preferences are shifting towards digital publishing and the company need an instant service to prevent the declining industry development. Therefore, introduction of digital publishing might prove to be an immediate solution with low quantity of risk for the company. Nevertheless, the business might also consider the expansion program after the success of its digital publishing program.
In order to present digital publishing in its item portfolio, the company needs to initially collects the information related to the consumer need, the potential markets, the federal government regulations and the information related to the competitors provided in the market. If the initial offering proves a success, the company must go for the other markets. In this method the business would be able to execute its digital publishing program.
Although, the development of the publishing industry is decreasing given that 2008, revealing a hazard to the business's long term existence, however the scenario can be controlled by thinking about a development plan in the future. The business could think about introducing digital publishingin its existing market to execute its development program at immediate basis and to avoid the threat of failure for entrance in the brand-new markets.