Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Solution and Analysis
Intro
Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Solution is the largest publishing company with a greatest market share in the China's book retail market. CMP has ended up being a specialized info supplier and a large comprehensive Science and Innovation publishing company through the integration of print media, audio-visual media and the network media.
Vital Problems
CMP has actually spent its 60 years journey efficiently, being an effective publishing house, however, the changing macro market trends and forces bring certain challenges to the publishing industry in basic and Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Solution in particular. These aspects include;
• Entryway of the new publishing firms in the market.
• 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 numerous questions 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 capabilities of the business could be made use of to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Solution has particular strengths that can be used to minimize the risks, overcome the weak point 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 Solution in the publishing market i.e. 60 years permits the business to provide high quality products at a lower expense utilizing its prior experiences.
• The technical resources and abilities produced by its effective journey supply a competitive advantage to CMP.
• Huge product portfolioof CMP assists it to diversify its risk and provide high value to its clients.
• Strong monetary position allows the company to consider several advancement opportunities with no worry of raising fund externally.
Weaknesses
In addition to the strengths, the company has certain weaknesses which could increase restrictions for the company in implementing its advancement program. The weak points of Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Solution are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional methods 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 accomplish long term development.
Opportunities
Although, the growth of the publishing industry is declining considering that 2008, impacting Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Analysis too, however the growth could be restored by availing specific chances presented in the market. The market opportunities for CMP consist of;
• The business 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 expansion towards foreign markets in order to decrease its dependence over Chinese markets by utilizing its huge funds.
Risks
The changing macro trends in the market and increasing competition in the publishing industry has actually presented certain hazards to Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Analysis consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries might lead to decreasing market share of Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Help due to the consumer shift towards digital libraries.
• The existence of large number of competitors in the publishing industry increase the threat 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 market together with presence of high competition increases the hazard of losing the consumer base.
Monetary Analysis.
Due to lack of information, the financial ratios of CMP could not be computed. It might be examined from the Appendix III that the annual total earnings of Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Solution during the duration 2000-2012 are growing at a high development rate, revealing that the annual demand of the products of CMP is growing and the business is rather efficient in attracting a big number of consumers at a potential rate.
In addition to it, the second chart which reveals the yearly growth in the Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Analysis overall possessions, shows that the business is rather effective in adding worth to its possessions through its earnings. The growth in properties shows that the total value of the firm is also increasing with increasing the total revenues. (Unknown, 2013).
Another financial analysis of the business using the given data might be the analysis concerning the circulation of total earnings of the company. Huge part of the profits of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The company could move towards other organisation sectors with a possible growth to achieve its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to find out the different external forces affecting the efficiency of the company and the recent trends in the external environment of the business. A short PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a considerable 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 assisted by the Promotion Department of the Communist Celebration of China. Therefore, it might be stated that the total political forces impacting Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Help company are high. The federal government policies concerning the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces affecting the publishing sector in basic and the Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Analysis in particular includesthe rates of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine impact the demand for the publishing market. Along with it, the financial policies connected to the import of books impact the total organisation at CPM. China's economic conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces include the population growth, the customer's choices towards checking out informative materials and so on. China has the highest population in the world with a high population growth, revealing the increasing variety of consumers of the Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Help. However, the consumer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must concentrate on digital publishing to meet the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological improvement in the reading methods and so on. Improvement of science and innovation in addition to the rise of digital publishing might minimize the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces impacting Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Solution includes the issues of environmental neighborhoods over the usage of paper in publishing books. The paper utilized 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.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 requires the publishers to be approved first by the Government to be entered in the publishing market.
Market Analysis (Porter's Five Forces Design).
Porter's Five Forces Design could be utilized to examine the appearance of the publishing market China. A quick analysis of the Porter's Five Forces is offered as follows;.
Risk of New Entrants.
Threats of brand-new entrants in the Chinese Publishing Market is moderate. The prospective development in the market tends to bring in new entrants to the publishing industry. Nevertheless, the existence of intense competitors and the requirement of huge capital tends to demotivate new entrants to go into in the marketplace.
Danger of Replacement.
Hazard of Replacement is high for the Chinese Publishing Market. The replacement items for the published files is the files provided in the virtual libraries on particular websites. The altering customer choices towards digital learning increase the threat of replacement for the industry.
Competitive Rivalry.
Competitive competition in the publishing industry is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. Along with it, new entrants are likewise participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Solution include the suppliers of the paper for publishing documents. As CMP is the largest publisher in the Chinese Publishing Market, therefore the overall bargaining power of supplier for CMP is low.
Bargaining Power of Buyer.
Negotiating power of buyer in the publishing industry is high. Due to the presence of a a great deal of publishers in the Chinese market and the market saturation, the buyers needs high quality documents at competitive rates.
Rivals Analysis.
CMP operates in an extremely competitive industry with the presence of a great deal of rivals. Nevertheless, the business has a competitive position in the market with the highest market share in the Chinese publishing market. Significant 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 Market Press (CIP).
CIPis one of the close rivals of CMP. Founded in the exact same period, CIP publishes similar kind of books. For a big time period, CIP held the largest market share, and still ranks third and second in various market sections, with a major focus on educational publications. CIP acts 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 Financial System Security Harshad Mehta And The Billion Dollar Scam Case Study Solution easily in the current market circumstance.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also established in the exact same period as CMP and CIP. It ranks sixth in the state-owned publishers in terms of service scale. It is likewise among the popular players in the publishing market with a yearly overall profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Consumers
• Growth chances.
• Avoiding the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in growth.
• Danger of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining customer base.
• Approaching new markets.
• Easy to introduce utilizing existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high worth to clients.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core organisation sectors to the brand-new one can lead the company to lose demand of its items in the market.
Recommendations
As the choices are moving towards digital publishing and the business need an immediate solution to avoid the declining market development. The company might likewise think about the expansion program after the success of its digital publishing program.
Implementation
In order to introduce digital publishing in its item portfolio, the business should first collects the information related to the consumer need, the potential markets, the government guidelines and the information related to the competitors presented in the market. If the initial offering proves a success, the business should go for the other markets. In this method the business would be able to execute its digital publishing program.
Conclusion
Although, the growth of the publishing market is declining given that 2008, revealing a threat to the company's long term presence, however the scenario can be managed by considering a development plan in the future. The company might think about presenting digital publishingin its existing market to implement its advancement program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
