Hedge Fund Due Diligence At Leman Alternative Asset Management Company 2 Case Study Solution and Analysis
Intro
Hedge Fund Due Diligence At Leman Alternative Asset Management Company 2 Case Study Help is the biggest publishing company with a greatest market share in the China's book retail market. CMP has actually become a specialized details provider and a big detailed Science and Technology publishing business through the combination of print media, audio-visual media and the network media.
Critical Issues
CMP has actually spent its 60 years journey smoothly, being a successful publishing home, however, the altering macro market trends and forces bring specific challenges to the publishing industry in general and Hedge Fund Due Diligence At Leman Alternative Asset Management Company 2 Case Study Analysis in specific. These factors include;
• Entrance of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The improvement of the macro markets have raised numerous concerns 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 abilities of the business could be used to strive for the future development unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Hedge Fund Due Diligence At Leman Alternative Asset Management Company 2 Case Study Analysis has particular strengths that can be utilized to lower the hazards, conquer the weakness and avail the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Hedge Fund Due Diligence At Leman Alternative Asset Management Company 2 Case Study Help in the publishing industry i.e. 60 years allows the company to supply high quality products at a lower expense utilizing its prior experiences.
• The technical resources and capabilities generated by its successful journey provide a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its threat and offer high worth to its clients.
• Strong monetary position enables the company to consider several development opportunities without any fear of raising fund externally.
Weak points
In addition to the strengths, the company has certain weaknesses which could increase constraints for the business in executing its development program. The weak points of Hedge Fund Due Diligence At Leman Alternative Asset Management Company 2 Case Study Solution are provided as follows;
• Despite of being a science and innovation publishing firm, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its development. It should propose specific expansion strategies to avoid its reliance over the Chinese markets to accomplish long term growth.
Opportunities
The development of the publishing market is declining since 2008, affecting Hedge Fund Due Diligence At Leman Alternative Asset Management Company 2 Case Study Analysis as well, however the growth might be revived by availing specific chances presented in the market. The marketplace chances for CMP consist of;
• The business could likewise present Digital Publishing by utilizing its long term technical experience and a strong client recognition in the market.
• CMP could think about a development program through the growth towards foreign markets in order to lower its dependence over Chinese markets by using its vast funds.
Threats
The altering macro patterns in the market and increasing competitors in the publishing industry has presented particular dangers to Hedge Fund Due Diligence At Leman Alternative Asset Management Company 2 Case Study Help including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause declining market share of Hedge Fund Due Diligence At Leman Alternative Asset Management Company 2 Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of competitors in the publishing industry increase the hazard for CMP to lose its competitive position in the market, as rivals can acquire a strong customer base by utilizing certain techniques like aggressive promo, quality items, and so on
• Entryway of new publishing firms in the industry in addition to presence of high competitors increases the danger of losing the consumer base.
Monetary Analysis.
The company has a quite competitive financial efficiency. Due to lack of information, the monetary ratios of CMP could not be calculated. The overall monetary performance of the business could be evaluated by using the graphs provided in the case Appendices. It might be analyzed from the Appendix III that the annual total earnings of CMP during the duration 2000-2012 are growing at a high development rate, revealing that the annual need of the products of Hedge Fund Due Diligence At Leman Alternative Asset Management Company 2 Case Study Analysis is growing and the company is quite efficient in bring in a a great deal of customers at a potential price.
Together with it, the second graph which reveals the annual growth in the Hedge Fund Due Diligence At Leman Alternative Asset Management Company 2 Case Study Help total possessions, reveals that the company is quite efficient in including value to its assets through its incomes. The development in possessions reveals that the total worth of the company is likewise increasing with increasing the total earnings. (Unknown, 2013).
Another financial analysis of the company using the offered data might be the analysis regarding the distribution of total revenues of the business. 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 business might move towards other service segments with a prospective development to achieve its future development objective.
PESTEL Analysis
PESTEL analysis might be carried out to learn the different external forces affecting the performance of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the company is offered as follows; (Alanzi, 2018).
Political.
As the publishing sector might have a substantial effect on the mindset of individuals about the communist ideology of the federal government, for that reason, the publishing sector is extremely monitored and directed by the Promotion Department of the Communist Celebration of China. Therefore, it might be said that the general political forces affecting Hedge Fund Due Diligence At Leman Alternative Asset Management Company 2 Case Study Solution service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Affordable.
Financial forces impacting the publishing sector in basic and the Hedge Fund Due Diligence At Leman Alternative Asset Management Company 2 Case Study Help in particular includesthe costs of paper, the earnings level of consumers, the inflation rate, and the total GDP development of the nation. All these forces combine effect the need for the publishing market. Together with it, the economic policies connected to the import of books affect the general company at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and consumer income level.
Social and Demographical.
The customer choices are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP must focus on digital publishing to fulfill the altering consumer choices.
Technological.
Technological forces affecting the CMP consist of the technological advancement in the reading techniques etc. Enhancement of science and innovation along with the increase of digital publishing could decrease the need for the CMP products, if particular actions would not be taken soon.
Environmental.
Environmental forces impacting Hedge Fund Due Diligence At Leman Alternative Asset Management Company 2 Case Study Solution includes 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 non reusable and the ink utilized while publishing must not be damaging for the environment.
Legal.
Legal policies for the publishing sector at whole are high. Publishing Ordinance 1997 needs the publishers to be authorized initially by the Government to be gone into in the publishing market.
Industry Analysis (Porter's 5 Forces Model).
Porter's 5 Forces Design could be used to evaluate the beauty of the publishing industry China. A short analysis of the Porter's Five Forces is given as follows;.
Hazard of New Entrants.
Hazards 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. The existence of intense competition and the requirement of substantial capital tends to demotivate new entrants to enter in the market.
Risk of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement products for the published documents is the files presented in the virtual libraries on specific websites. The changing customer choices towards digital knowing increase the risk of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive rivalry for CMP. In addition to it, new entrants are also participating in the market increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Hedge Fund Due Diligence At Leman Alternative Asset Management Company 2 Case Study Solution consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, for that reason the total bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of buyer in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive costs.
Rivals Analysis.
CMP runs in a highly competitive industry with the existence of large number of competitors. Nevertheless, the business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Hedge Fund Due Diligence At Leman Alternative Asset Management Company 2 Case Study Help include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Industry Press (CIP).
CIP acts as a danger for CMP as it could 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 quickly in the present market scenario.
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 6th in the state-owned publishers in regards to company scale. It is likewise among the prominent players in the publishing market with an annual total profits of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Reducing dependence over the Chinese markets.
• Increasing variety of Clients
• Development chances.
• Preventing the impact of market saturation in the Chinese publishing industry.
Cons
• Usage of potential resources in expansion.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Introduce Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to present using existing capabilities.
• Low threat of Failure.
• Low requirement for funds.
• Increased item portfolio supplies high value to customers.
Cons
• Competitors in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the company to lose need of its items in the market.
Suggestions
As the choices are shifting towards digital publishing and the company require an instant service to avoid the declining industry growth. The business could likewise think about the expansion program after the success of its digital publishing program.
Application
In order to introduce digital publishing in its product portfolio, the business must first collects the information related to the customer need, the potential markets, the government guidelines and the data connected to the rivals provided in the market. After that, the company must decide one potential segment for its preliminary offering. It ought to collect research study that how it could differentiate its digital publishing from the existing competitors' items. The actions above the business must go for the initial offering. If the preliminary offering shows a success, the business should go for the other markets. In this way the business would be able to implement its digital publishing program.
Conclusion
Although, the development of the publishing industry is decreasing given that 2008, showing a threat to the company's long term existence, however the situation can be managed by considering an advancement plan in the future. The company could consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the threat of failure for entryway in the brand-new markets.
