Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Solution and Analysis
Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Help is the largest publishing company with a greatest market share in the China's book retail market. CMP offers a number of services consisting of; collecting info, processing information and interaction services. Significant service segments of the business consist of; books, periodicals, consultancy and circulation. The company has a large item portfolio and its significant products include books, regulars, online media, exhibits, research reports and so on. Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Analysis has actually ended up being a specialized info supplier and a big detailed Science and Innovation publishing business through the integration of print media, audio-visual media and the network media.
Although, Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Solution has invested its 60 years journey efficiently, being an effective publishing house, however, the changing macro market patterns and forces bring particular obstacles to the publishing market in general and CMP in specific. These aspects include;
• Entrance of the new publishing companies in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Intro of digital publishing strategies
• Enhancement of science and technology.
The transformation of the macro markets have raised several 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 business could be utilized to pursue the future development unceasingly? How could the business sustain its long term competitive position in future?
Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Help has certain strengths that can be made use of to reduce the hazards, get rid of the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Analysis in the publishing industry i.e. 60 years permits the company to provide high quality items at a lower expense utilizing its previous experiences.
• The technical resources and capabilities created by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and provide high value to its customers.
• Strong monetary position enables the business to consider a number of advancement chances without any fear of raising fund externally.
Along with the strengths, the business has specific weaknesses which could increase restraints for the business in executing its development program. The weaknesses of Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Analysis are given as follows;
• Despite of being a science and technology publishing firm, the company still has traditional ways ofpublishing which are not compatible with the growing technological shift.
• CMP extremely relies over the Chinese markets for its growth. It needs to propose certain expansion plans to prevent its reliance over the Chinese markets to attain long term growth.
Although, the growth of the publishing market is declining given that 2008, affecting Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Help also, however the growth could be revived by availing particular opportunities provided in the market. The market opportunities for CMP include;
• The company could also present Digital Publishing by using its long term technical experience and a strong customer acknowledgment in the market.
• CMP could consider a development program through the growth towards foreign markets in order to reduce its reliance over Chinese markets by using its large financial resources.
The changing macro trends in the market and increasing competitors in the publishing industry has actually presented specific hazards to Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries could lead to decreasing market share of Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Help due to the customer shift towards digital 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 get a strong customer base by utilizing specific techniques like aggressive promotion, quality items, and so on
• Entryway of brand-new publishing firms in the market together with existence of high competitors increases the risk of losing the customer base.
The company has a quite competitive monetary performance. Due to absence of information, the financial ratios of CMP might not be calculated. However, the overall monetary efficiency of the company might be examined by utilizing the graphs given in the case Appendices. It could be analyzed from the Appendix III that the annual total revenues of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Solution is growing and the business is rather effective in attracting a a great deal of clients at a potential price.
Along with it, the second chart which reveals the yearly development in the Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Solution overall properties, reveals that the company is rather effective in adding worth to its assets through its incomes. The development in assets shows that the total value of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another monetary analysis of the business using the provided data might be the analysis concerning the distribution of total incomes of the business. Major part of the profits of CMP originates from the sales of its released books i.e. 64% as displayed in the Case Appendix V. The company might move towards other organisation sections with a prospective growth to attain its future development goal.
PESTEL analysis could be conducted to learn the numerous external forces affecting the efficiency of the company and the current trends in the external environment of the business. A brief PESTEL analysis of the business is offered as follows; (Alanzi, 2018).
As the publishing sector could have a considerable influence on the state of mind of individuals 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 stated that the overall political forces impacting CMP business are high. The government policies regarding the publishing sector are likewise increasing with the passage of time.
Economic forces impacting the publishing sector in basic and the Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Solution in particular includesthe costs of paper, the income level of customers, the inflation rate, and the general GDP growth of the nation. All these forces combine impact the need for the publishing market. Together with it, the financial policies connected to the import of books impact the overall organisation at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population growth, the consumer's preferences towards reading useful products and so on. China has the greatest population in the world with a high population development, showing the increasing variety of consumers of the Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Analysis. The customer choices are moving towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to concentrate on digital publishing to meet the altering customer preferences.
Technological forces affecting the CMP consist of the technological advancement in the reading methods etc. Enhancement of science and technology in addition to the rise of digital publishing might minimize the need for the CMP items, if specific actions would not be taken quickly.
Ecological forces impacting Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Analysis consists of the issues of environmental communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be disposable and the ink utilized while publishing needs to not be damaging for the environment.
Legal policies for the publishing sector at whole are high. The legal regulations regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Regulation 1997 needs the publishers to be authorized initially by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model might be used to analyze the beauty of the publishing market China. A short analysis of the Porter's Five Forces is offered as follows;.
Threat of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Industry is moderate. The possible growth in the market tends to attract new entrants to the publishing market. However, the existence of extreme competition and the requirement of substantial capital tends to demotivate new entrants to go into in the marketplace.
Hazard of Substitution.
Danger of Replacement is high for the Chinese Publishing Industry. The substitute items for the released documents is the documents provided in the digital libraries on certain websites. The changing consumer choices towards digital learning increase the hazard of substitution for the market.
Competitive competition in the publishing market is high. The presence of large number of consumers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, brand-new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Provider.
The major suppliers of the Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Analysis consist of the providers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing industry is high. Due to the existence of a a great deal of publishers in the Chinese market and the marketplace saturation, the buyers needs high quality documents at competitive prices.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. Nevertheless, the company has a competitive position in the market with the greatest market share in the Chinese publishing market. Major rivals of Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Help 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 could wean the market share of CMP easily in the existing market circumstance.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also founded in the very same duration as CMP and CIP. It ranks 6th in the state-owned publishers in regards to organisation scale. It is likewise one of the popular players in the publishing industry with a yearly total incomes of RMB 550 million in 2010.
Alternative-1: Expand towards New Markets
• Minimizing dependence over the Chinese markets.
• Increasing number of Consumers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
• Usage of possible resources in expansion.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to consumers.
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company segments to the new one can lead the business to lose demand of its products in the market.
As the choices are shifting towards digital publishing and the business require an immediate option to avoid the decreasing market growth. The company could likewise consider the growth program after the success of its digital publishing program.
In order to introduce digital publishing in its product portfolio, the business must initially gathers the information connected to the customer need, the possible markets, the federal government guidelines and the information associated with the competitors provided in the market. After that, the business should choose one prospective section for its initial offering. It must collect research that how it could distinguish its digital publishing from the existing rivals' items. After all the actions above the company must opt for the initial offering. The company must go for the other markets if the preliminary offering proves a success. In this way the company would have the ability to implement its digital publishing program.
The development of the publishing industry is decreasing because 2008, showing a hazard to the company's long term existence, however the circumstance can be controlled by thinking about a development strategy in the future. The company could think about presenting digital publishingin its existing market to execute its development program at immediate basis and to prevent the danger of failure for entrance in the new markets.