Global Managers Perceptions Of Cultural Competence Case Study Solution and Analysis
Introduction
Global Managers Perceptions Of Cultural Competence Case Study Analysis is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized information supplier and a large detailed Science and Technology publishing company through the combination of print media, audio-visual media and the network media.
Important Problems
Although, Global Managers Perceptions Of Cultural Competence Case Study Analysis has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring certain obstacles to the publishing market in general and CMP in particular. These aspects consist of;
• Entrance of the new publishing companies in the market.
• Decreasing growth of the publishing market.
• Market saturation.
• Introduction of digital publishing methods
• Improvement of science and technology.
The improvement of the macro markets have raised several concerns to the management at CPM that what could be the future of CMP in this circumstance? Do the long important experience, technical resources and the capabilities of the company could be made use of 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
Global Managers Perceptions Of Cultural Competence Case Study Help has particular strengths that can be made use of to decrease the risks, overcome the weakness and avail the chances. Strengths of CMP are provided as follows;
• The long term experience of Global Managers Perceptions Of Cultural Competence Case Study Solution in the publishing industry i.e. 60 years enables the company to offer high quality items at a lower expense using its prior experiences.
• The technical resources and capabilities produced by its successful journey offer a competitive benefit to CMP.
• Large item portfolioof CMP assists it to diversify its threat and supply high worth to its consumers.
• Strong financial position enables the business to think about a number of development opportunities with no worry of raising fund externally.
Weak points
In addition to the strengths, the business has specific weak points which might increase constraints for the company in executing its advancement program. The weaknesses of Global Managers Perceptions Of Cultural Competence Case Study Analysis are offered as follows;
• Despite of being a science and innovation publishing firm, the company still has traditional methods ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose certain expansion strategies to avoid its dependence over the Chinese markets to achieve long term development.
Opportunities
The development of the publishing industry is declining since 2008, impacting Global Managers Perceptions Of Cultural Competence Case Study Help as well, however the development might be revived by availing particular opportunities provided 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 client acknowledgment in the market.
• CMP could think about a development program through the growth towards foreign markets in order to lower its reliance over Chinese markets by using its vast funds.
Hazards
The altering macro trends in the market and increasing competition in the publishing industry has actually presented certain hazards to Global Managers Perceptions Of Cultural Competence Case Study Help consisting of;( Gurel, 2017).
• Intro of digital publishing i.e. digital libraries could result in declining market share of Global Managers Perceptions Of Cultural Competence Case Study Analysis due to the consumer shift towards virtual libraries.
• The presence of large number of rivals in the publishing market increase the hazard for CMP to lose its competitive position in the market, as rivals can get a strong customer base by utilizing specific techniques like aggressive promotion, quality items, etc.
• Entryway of new publishing companies in the market together with existence of high competition increases the hazard of losing the client base.
Financial Analysis.
The company has a quite competitive monetary performance. Due to lack of information, the monetary ratios of CMP might not be determined. The total monetary efficiency of the company might be examined by utilizing the graphs given in the case Appendices. It might be examined from the Appendix III that the annual overall incomes of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the items of Global Managers Perceptions Of Cultural Competence Case Study Analysis is growing and the business is quite effective in attracting a a great deal of customers at a potential price.
Together with it, the second chart which reveals the annual growth in the Global Managers Perceptions Of Cultural Competence Case Study Analysis total properties, shows that the company is quite effective in adding value to its possessions through its profits. The growth in possessions shows that the total worth of the company is also increasing with increasing the overall revenues. (Unknown, 2013).
Another monetary analysis of the company utilizing the given information could 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 published books i.e. 64% as shown in the Case Appendix V. The company could move towards other business sections with a potential growth to accomplish its future advancement goal.
PESTEL Analysis
PESTEL analysis might be performed to discover the different external forces impacting the efficiency of the company and the recent trends in the external environment of the business. A brief PESTEL analysis of the business is given as follows; (Alanzi, 2018).
Political.
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 could be said that the general political forces affecting 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 basic and the Global Managers Perceptions Of Cultural Competence Case Study Solution in specific includesthe prices of paper, the income level of consumers, the inflation rate, and the general GDP development of the nation. All these forces combine effect the demand for the publishing market. Along with it, the financial policies connected to the import of books affect the overall organisation at CPM. However, China's economic conditions are quite beneficial for CMP with high GDP growth and consumer income level.
Social and Demographical.
Social and demographical forces include the population development, the consumer's choices towards checking out informative products and so on. China has the greatest population in the world with a high population growth, revealing the increasing variety of consumers of the Global Managers Perceptions Of Cultural Competence Case Study Help. The consumer preferences are moving towards digital publishing rather than the standard was of publishing. In this regard, CMP needs to concentrate on digital publishing to satisfy the altering consumer preferences.
Technological.
Technological forces impacting the CMP consist of the technological advancement in the reading strategies etc. Improvement of science and technology along with the increase of digital publishing could decrease the need for the CMP products, if certain actions would not be taken soon.
Environmental.
Environmental forces affecting Global Managers Perceptions Of Cultural Competence Case Study Help consists of the issues of ecological neighborhoods 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 used while publishing needs to not be harmful for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. Publishing Regulation 1997 needs the publishers to be approved initially by the Government to be gone into in the publishing market.
Market Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Model could be used to analyze the beauty of the publishing market China. A brief analysis of the Porter's 5 Forces is given as follows;.
Threat of New Entrants.
Hazards of new entrants in the Chinese Publishing Market is moderate. The possible development in the market tends to attract new entrants to the publishing industry. Nevertheless, the presence of extreme competitors and the requirement of big capital tends to demotivate new entrants to go into in the marketplace.
Threat of Replacement.
Risk of Alternative is high for the Chinese Publishing Industry. The substitute products for the published files is the files presented in the virtual libraries on certain sites. The changing consumer choices towards digital learning increase the risk of substitution for the market.
Competitive Competition.
Competitive competition in the publishing market is high. The existence of a great deal of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. Together with it, new entrants are also entering into the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Global Managers Perceptions Of Cultural Competence Case Study Analysis consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser 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 requires high quality files at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive industry with the presence of a great deal of rivals. The business has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Global Managers Perceptions Of Cultural Competence Case Study Solution consist of;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a threat 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 CMP quickly in the existing market situation.
Posts and telecommunication Press (PTP).
It was likewise established in the very same period as Global Managers Perceptions Of Cultural Competence Case Study Solution and CIP. It is also one of the popular players in the publishing market with a yearly total incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing number of Customers
• Development opportunities.
• Preventing the effect of market saturation in the Chinese publishing industry.
Cons
• Use of prospective resources in expansion.
• Risk 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 risk of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to clients.
Cons
• Competition in the market by CIP, who has prior focus on the digital publishing.
• Shift of focus from the core service sections to the new one can lead the business to lose demand of its items in the market.
Recommendations
As the preferences are moving towards digital publishing and the company require an immediate service to prevent the declining industry growth. The business might also consider the expansion program after the success of its digital publishing program.
Application
In order to present digital publishing in its item portfolio, the company ought to first gathers the data related to the customer demand, the possible markets, the government guidelines and the information related to the competitors presented in the market. If the initial offering shows a success, the company must go for the other markets. In this way the business would be able to execute its digital publishing program.
Conclusion
Although, the development of the publishing market is decreasing considering that 2008, revealing a threat to the company's long term presence, however the situation can be managed by thinking about a development plan in the future. The business might consider presenting digital publishingin its existing market to implement its development program at immediate basis and to avoid the risk of failure for entrance in the brand-new markets.
